Rhode Island
Killed during budget talks, Citizens Bank bill brought back to life • Rhode Island Current
House Speaker K. Joseph Shekarchi assured reporters Friday night that a proposed tax law rewrite requested by Citizens Bank was not dead, despite its glaring absence in the revised fiscal 2025 budget.
Less than 72 hours later, the Warwick Democrat produced the proof: revised legislation authorizing the shift in state bank income tax calculations, with hearings before both chambers’ finance committees Tuesday.
What changed?
“It wasn’t ready,” Shekarchi said, speaking to reporters at the State House Monday afternoon. “Taxation was opposing it. The administration was opposing it. I certainly wasn’t going to put it in the budget for debate. Now, those two House priorities have been met.”
He added, “I wanted to make sure the taxpayer was protected.”
McKee pushes state tax rewrite to keep Citizens Bank rooted in Rhode Island. But will it fly?
The updated companion bills, sponsored by Rep. Joe Solomon, a Warwick Democrat, and Sen. Lou DiPalma, a Middletown Democrat, come after months of behind-the-scenes negotiations between state officials and bank executives dating back before Christmas, Shekarchi said.
The tax change, in essence, offers banks the option to calculate their taxable income based only on in-state sales, replacing the longtime “three-factor” calculation encompassing in-state sales, property and payroll. While not explicitly written for Citizens, the financial services giant has the most to gain from the proposal; unlike other banks in Rhode Island, Citizens makes most of its money from services outside state borders, yet its physical presence and payroll are weighted toward the Ocean State.
Other states, including neighboring Massachusetts, have already moved to a similar tax calculation method, a trend referenced by Mike Knipper, executive vice president and head of property and procurement for Citizens Financial Group Inc., in an April letter to state lawmakers.
Knipper in his letter warned that without a similar tax update in Rhode Island, the company “would strongly consider expanding its corporate footprint and employee base outside of Rhode Island because of differing tax treatment among the states.”
On May 10, Gov. Dan McKee proposed a budget amendment offering up the requested rewrite of the bank income tax calculation, with an estimated $15.6 million in state tax revenue loss for a full fiscal year.
However, McKee’s proposal did not make the cut when lawmakers unveiled their revised fiscal 2025 spending plan on May 31, with Shekarchi citing lack of detail and time to vet the proposal before finalizing the state budget.
Yet Shekarchi also said he would not be responsible for losing one of the state’s top employers, which boasts a 4,200 in-state payroll and a $285 million Johnston headquarters.
Negotiations ramped up in earnest over the last week and half, with Shekarchi texting key players in the tax proposal from the rostrum of the budget debate Friday night. A weekend of closed-door meetings and phone calls later, the deal emerged.
Key to Shekarchi’s change-of-heart was the OK from the Rhode Island Division of Taxation, which had initially expressed concerns with the legislation when first introduced by Solomon in March. Tax officials gave the green light to the revised proposal Sunday, Shekarchi said.
The updated legislation clarifies the way taxes are calculated to avoid double-taxation — one of Citizens’ concerns — and refines the information the state tax division must collect and review, with a report to lawmakers detailing the impact of the tax change due no later than March 2027.
“Citizens is encouraged by recent progress and greatly appreciates the leadership of Governor McKee, Speaker Shekarchi, Senate President Ruggerio and all others involved,” Keith Kelly, president of Citizens Bank Rhode Island, said in a statement. “We look forward to continuing to work closely with the state towards an outcome that is a win for both the business community and Rhode Island.”
Citizens declined to offer further comment Monday.
‘Vigorous and robust debate’
The tax calculation change is still expected to reduce state tax revenue by $7.5 million in tax year 2025, with a forecasted $15 million revenue loss in fiscal 2026. While the policy is not accounted for in the state’s fiscal 2025 budget, there won’t be any cuts or structural imbalances, Shekarchi said.
Instead, the state will take $6.5 million from the $55 million set aside for a supplemental rainy day fund in fiscal 2024, with another $1 million siphoned from the state surplus, to make up for the expected revenue shortfall in fiscal 2025.
“It was a judgment call,” Shekarchi said when explaining his decision to not include the policy change in the fiscal 2025 budget. “I didn’t want this one unsettled article to be the focus of the budget.”
He insisted multiple times, however, that the proposal will have plenty of time for a thorough vetting by lawmakers; the House Committee on Finance hearing Tuesday marks the third time a version of the tax change has been considered, with prior hearings held on Solomon’s bill and the governor’s budget amendment.
“There will be a vigorous and robust debate,” Shekarchi said.
There’s still no guarantee that the hours of closed-door negotiations prevent Citizens from uprooting anyway, Shekarchi acknowledged.
However, he added, “I think Citizens would be hard-pressed to move. They wanted this very badly.”
As for concerns raised by some lawmakers that changing state tax law to benefit one business will set a precedent for other corporations, Shekarchi dismissed the logic.
“In my mind, there’s no precedent,” he said. “Just because you do it for one, doesn’t mean you do it for another.”
McKee and Senate President Dominick Ruggerio also expressed support for the tax deal in statements on Monday, stressing the importance of parity between Rhode Island and Massachusetts, which is scheduled to move to the single-factor tax calculation starting Jan. 1.
Laurie White, president of the Greater Providence Chamber of Commerce, also welcomed the revival of the tax change, having issued an email warning last week when it appeared the policy would not make it into the fiscal 2025 budget.
“Happy to see that all sides are working towards finding a solution,” White said in a text message Monday. “I applaud the progress being made by Gov. Dan McKee, Speaker Shekarchi, President Ruggerio and Citizens.”
If signed into law, the tax change would take effect Jan. 1.
The House Committee on Finance will take up the revised tax change at 3:30 p.m. Tuesday at the State House. The Senate Committee on Finance will follow suit with a hearing on companion legislation Tuesday night.
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Rhode Island
More complaints against former RI private school coach accused of exploiting underage girl – The Boston Globe
The girl told the state police and Barrington police that Cassidy, who’d been her coach, became fixated on her since the summer of 2025 and won her trust. She told police that Cassidy had given her lingerie and alcohol and requested explicit photos of her under the guise of training her for a “secret section of the FBI” to help children who are sex trafficked.
The small private Christian school fired Cassidy after his arrest on June 1. State police said they expected to bring more charges and asked for other witnesses to come forward.
Since then, Barrington Police Chief Michael E. Correia said, four more students from Barrington Christian Academy and a young woman who encountered Cassidy at the Pawtucket YMCA have made complaints.
“All of their stories are clearly inappropriate behavior from a teacher-coach,” Correia said on Wednesday. “However, we don’t believe [the allegations] at this time amounts to a criminal offense.”
Correia declined to describe the specific accusations. The new reports have been referred to the State Police Internet Crimes Against Children Task Force, which is leading the investigation. State Police Major Kenneth Moriarty did not respond to questions on Wednesday.
A 19-year-old woman who attended Barrington Christian Academy in the 2020-2021 school year was the first to come forward. She spoke to Barrington police on June 3, shortly after the state police announced Cassidy’s arrest, and described “inappropriate behavior,” Correia said.
Then, a 12-year-old girl and 15-year-old girl, both of whom are student-athletes at the school, spoke with Barrington police on June 8. A mother brought her 12-year-old daughter, who is also a student, to speak with police on June 9.
A 23-year-old woman contacted the Barrington police on June 17 about Cassidy. She said she encountered him at the Pawtucket YMCA when she was about 14 years old, and she also complained about “inappropriate behavior,” Correia said.
Kate Messier, the vice president of development at the Pawtucket YMCA, confirmed on Wednesday that Cassidy was employed there until 2018. She did not comment on his role at the YMCA or answer questions about whether the organization had received any complaints about Cassidy at the time.
“Child protection is foundational to how the YMCA of Pawtucket operates, and we maintain extensive safeguards that are reviewed and reinforced on an ongoing basis,” Messier said in the statement. “Those safeguards include thorough staff screening and background checks, mandatory child abuse prevention training, program environments structured to maintain supervision and eliminate unsupervised one-on-one situations, and clear procedures for reporting any concern.”
The 14-year-old girl whose allegations led the state police to arrest Cassidy said that she learned that he had allowed juveniles from unstable homes live in his house in Pawtucket while he was working at the YMCA, according to court documents. The girl also told investigators that Cassidy had housed foreign exchange students associated with Barrington Christian Academy.
Correia said that the private school has been “very cooperative” with the Barrington police. The head of school, Michael Skazinski, did not respond to questions from the Globe on Wednesday.
Cassidy’s lawyer, Melissa Larsen, declined comment on Wednesday.
The state police have searched Cassidy’s home in Pawtucket, his pickup truck, and his office at the school, and have seized numerous electronic devices, including iPads, tablets, and thumb drives, according to court records. The affidavits accompanying the search warrants detailed the allegations that the 14-year-old girl made against Cassidy.
He had been coaching her in different sports at the school, and their families became close. She told the state police that she grew to trust Cassidy and would spend time with him and his family at their home. Then, she said, he began telling her stories about how he was special — and so was she.
She said Cassidy told her he was working for a “secret section of the FBI.” She said he claimed that he had “special DNA,” so the FBI and state troopers had him assist in raids to save children from being sex trafficked. She said that Cassidy told her that there were “off-worlders” or aliens that posed as humans on earth, and some of those children being sex trafficked were actually aliens.
She said that Cassidy assigned various “challenges” or “missions” to make her comfortable in uncomfortable situations, according to the affidavits.
“She was also advised to learn to get comfortable with wearing less clothing and ultimately nudity because it would be required later on for ‘missions,’” the affidavits said. “Cassidy claimed that aliens did not believe in the ‘construct of clothes.’”
She said Cassidy emailed her from his personal Gmail account, calling himself “Casper,” the affidavits said. She said he also claimed that two other girls were using his email to talk to her about the “special” training, and she was told to email with a person named “Kevin” on another email address who would talk to her about her feelings, the affidavits said.
She said she was instructed to take explicit photographs of herself and send them to his private email. She came to realize that all of the personas were actually Cassidy.
On May 28, the girl received an email from Cassidy’s personal Gmail account offering her three “flirt options,” all of which involved her taking off her clothes in front of him. She believed she needed to follow through; she told police that Cassidy said “bad things” could happen to her if she failed.
That night, her parents discovered what was going on, and they contacted the Barrington police, who called in the state police.
The State Police are continuing to investigate and ask anyone with information about Cassidy or potential victims to contact the task force at 401-921-1170, or the Barrington Police Department at 401-437-3935.
Amanda Milkovits can be reached at amanda.milkovits@globe.com. Follow her @AmandaMilkovits.
Rhode Island
‘Condom Hut’ Movie Adds Another Big Name
Another famous face is joining the cast of “Rubber Hut” filming throughout Rhode Island.
As we previously reported, Grace Van Patten is starring in the feature film debut for director Hannah Gray Organschi about the infamous “condom hut” business from the early 90s.
The short-lived Fotomat kiosk turned drive-thru condom store garnered local notoriety as well as national attention in 1992 and is now the subject of a movie with several A-list stars attached.
READ MORE: Michael Imperioli, Emmy Rossum Join RI ‘Condom Hut’ Film
Scenes were filmed for several days at a custom-made “condom hut” on West Shore Road in Warwick. On Thursday, June 11, Beach Avenue was closed down to shoot a parade scene. Now, film crews have moved to Meshanticut Valley Parkway in Cranston for scenes along a residential street.
Who Was Behind the Original Condom Hut?
The home is believed to represent the residence of Emanuella DelVecchio, the former flight attendant who had the brilliant idea to open a condom kiosk in response to the AIDS epidemic.
Instead of support, however, DelVecchio received the condemnation of the Roman Catholic Diocese of Providence and was plagued with vandalism before shuttering her business within a year.
READ MORE: New Bedford’s Gone But Not Forgotten Closed-Down Bars
Who Has Joined the ‘Condom Hut’ Movie Cast So Far
Photos of parade scenes for the film show Michael Imperioli portraying a priest in the movie and now Deadline has reported that stage actor, Will Harrison, is attached to the project as DelVecchio’s husband. Other actors’ specific roles remain unknown.
Filming is expected to continue in Rhode Island until the end of June with a theatrical release likely in 2027.
See the Stars Who Own Homes in Rhode Island
There are plenty of celebrities who once called Rhode Island home, but how many still do? Here’s the list of stars who own homes across the Ocean State.
Gallery Credit: Nancy Hall
20 Stars Who Hail From Rhode Island
Rhode Island may be the smallest state in the nation, but it has been home to many celebrities. Though some have moved here, filmed here or attended school here, only a handful were actually born here. These are those celebrities.
Gallery Credit: Nancy Hall
All The Famous Faces That Have Been to Taylor Swift’s Rhode Island Home
Here are all the celebrities we know have made an appearance at Holiday House over the years.
Gallery Credit: Nancy Hall
Rhode Island
Two Rhode Island residents charged in $6.5 billion healthcare fraud crackdown
Two Rhode Island residents were charged after the Justice Department announced a $6.5 billion healthcare fraud crackdown.
The department said 455 defendants were charged, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes.
Mareli Arias Batista, 57, of Providence, was charged with false representation of a social security number, aggravated identity theft, wire fraud, false statement in application for a passport, use of a false passport and bank fraud in connection with a scheme to obtain benefits using the identity of another person.
Officials said Batista fraudulently obtained approximately $28,236.42 in Rhode Island Medicaid benefits.
Balni Pimental Lara, 59, of Providence, was also charged with false representation of a social security number, aggravated identity theft, wire fraud, and health care fraud, in connection with a scheme to obtain benefits using the identity of another person.
According to officials, Lara fraudulently obtained approximately $24,018.86 in Rhode Island Medicaid benefits.
Bhamin Chhatrapati, 40, of Stoughton, Mass., was charged with conspiracy to commit health care fraud in connection with over $5.1 million fraudulently billed to Medicare, of which over $2.6 million was paid.
Approximately 1,079 medical providers were suspended and billing privileges were revoked for 1,403 providers.
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