Rhode Island
The state will ultimately pay $132m to build a soccer stadium in Pawtucket. How did it get so expensive?
USMNT opens 2026 World Cup at SoFi Stadium
FIFA announced the schedule for the 2026 World Cup. The U.S. Men’s National Team will open at SoFi Stadium, while MetLife Stadium will host the World Cup final.
Fox – LA
The Tidewater Landing stadium in Pawtucket is on track to open early next year and, when it does, the 10,500-seat building is expected to be the most expensive minor league soccer stadium in the country.
That’s not a shock given the rising cost of construction, but even the state economic development officials who signed off on the project didn’t know just how steep the price of publicly financing the stadium would climb.
To channel $27 million to stadium developer Fortuitous Partners, Pawtucket earlier this month sold a $54.3 million tax-free bond. Under the terms of the bond, the state is projected to pay $132 million in total debt service over the next 30 years.
Those borrowing costs – which Bloomberg’s municipal bond reporter compared to the price of government debt in Pakistan – have triggered sticker shock in some quarters.
“My concern is how this got to be so expensive and such an enormous waste of taxpayer money,” said Michael McNally, a former member of the state Commerce Corporation Board who voted against the project in 2022.
But Rhode Island Commerce Secretary Liz Tanner, who has overseen the deal for the state for the last two years, on Monday defended the deal over the long term.
“Stadiums are expensive. We know that they’re expensive, and these dollars that we’re putting into it are going to have a nice infrastructure project for us when we’re done,” Tanner told The Journal Monday. “We know we’re going to have a stadium when we’re finished with a soccer team, and that’s good for Rhode Island.”
How did we get here? Shrinking project but expanding cost
The Tidewater Landing stadium plan first launched in December 2019, with the city still stinging from the loss of the Pawtucket Red Sox baseball team.
Initially the stadium was supposed to anchor a $400-million development spanning the Seekonk River and Interstate 95, containing hundreds of apartments plus shops, offices, a hotel and an event center.
The state first approved a $50-million public subsidy package for the development in February 2021 after the segment north of I-95 had been eliminated, slimming the project down to 25 acres.
But before work could begin, inflation spiked and the Federal Reserve hiked interest rates, sending the cost to complete the project soaring. The stadium is now expected to cost $137 million.
In the summer of 2022, Fortuitous shrank the project again, this time asking for the same public investment, but it would go to the stadium alone. On July 25, 2022, Gov. Dan McKee broke a tie on the Commerce Corporation Board to give almost all of the subsidy package to the stadium.
Public funds going to Fortuitous, once they finish the stadium, are made up of:
- $27 million from the bond
- $10 million in Pawtucket’s federal pandemic aid
- $10 million from state tax credits. (The state is issuing $14 million in Rebuild RI tax credits to net $10 million.)
But the cost of the borrowing keeps going up. When the deal was approved, the state planned to provide Fortuitous $27 million for the stadium from a $37-million bond. By October, with higher interest rates prompting investors to demand ever higher yield, the principal on the bond grew to $54 million, including reserves and administrative costs.
The deal allows the state to make interest-only payments on the bonds for the first 10 years. There’s a $5-million reserve in place to make payments in any year the General Assembly were to decide not to appropriate the required funding. And there is an $11-million “capitalized interest fund” that will fund payments in the early years.
Of the $54-million principal borrowed, $6 million is set aside to pay middlemen, lawyers and other administrative expenses, according to a breakdown from Commerce RI.
Why didn’t the state just pay less two years ago?
Why didn’t the state just appropriate $27 million for the stadium two years ago and save the tens of millions required by this exotic financing?
“When this project started a couple of years ago, this was the deal that was made, as far as how it was going to unfold, and all of those conversations were based on far lower interest rates,” Tanner said. “The $27 million, if it had been done upfront, would have to had been General Assembly approved.”
More: Soccer stadium bond adviser cited ‘concerns’ about project before quitting. What we know.
Since authorizing this type of state financing for a proposed new PawSox ballpark, legislative leaders have been cool to the idea of a direct investment into the soccer stadium.
Why not change the deal as economic conditions changed over the years?
“So we had committed to a deal at that point and we were in a contractual relationship to commit to following through with what we had done,” Tanner said. “And if you had changed the course of the transaction, there would’ve been a level of uncertainty without knowing whether the legislature was going to pass those dollars or not. So we continued on the path that we had set up originally.”
Although the Pawtucket Redevelopment Agency issued the stadium bonds, they are to be repaid with state tax revenue generated in Pawtucket, supplemented if need be by appropriations from the Assembly.
Because of the money set aside, state lawmakers won’t have to appropriate any money for the stadium until 2027.
Tanner said if interest rates rise again, the 8.24% rate the state is paying will end up looking like a bargain. If they fall, it is likely the state will be able refinancing after 10 years at a lower rate.
Is this 38 Studios all over again?
The complicated financing structure of the stadium bonds recall the $75-million 38 Studios deal.
Unlike the 38 Studios bonds, which were supposed to “pay for themselves” through revenue from the company that ended up folding, the stadium bonds are intended to be repaid by state tax dollars.
The risk to the state lies in what would happen if Rhode Island FC, the team slated to play in the stadium, folds, something not uncommon in professional soccer.
As it awaits the construction of the soccer stadium, Pawtucket is planning to tear down McCoy Stadium, which assumed negative value once the PawSox left.
More: Pawtucket soccer stadium’s financing is complete. Here’s what’s behind the $137M project
“[Rhode Island FC] did commit to a 30-year relationship with us,” Tanner said. “If they don’t, there’s liquidated damages that they would have to pay.”
Asked what those damages would be worth if the team goes bankrupt, Tanner said the state would get the stadium as an asset.
What would the empty stadium be worth?
“Again, we’re doing speculation on so many ifs,” she said.
To encourage Fortuitous to finish the residential and commercial development that initially attracted the state to the project, Commerce RI is providing the developer $1.5 million to start working on that next phase.
There is still no timeline on when any plans for stadium-adjacent development will be drawn up or cost estimates formulated.
Tanner said, if anything, she is “far more optimistic” about the residential/commercial development happening “because they have their investors all gathered to work on the stadium project and so we know there’s more people who have already committed the stadium that could be potentially partnering with them.”
Rhode Island
Rhode Island high school yearbook printed with the word ‘school’ misspelled on its cover: ‘Shocking to see’
It failed spelling.
A Rhode Island high school mistakenly misspelled the word “school” on its yearbook cover.
Over 100 copies of Johnston Senior High School’s 2026 yearbook are missing the letter “c” in the word “school” written on its spine.
Students, faculty and parents at what was dubbed “Johnston Senior High Shool” in the keepsake graduation book are shaking their heads at the cringeworthy mistake.
“It was really a shocking thing to see, a whole high school misspelling the word ‘school,’” Johnston senior Neari Vazquez told NBC 10. “It’s kind of a bad look.”
Johnston Senior High School Superintendent Scott Sutherland told 12 News that he wrote a letter to the school’s families to apologize for the error, made by the yearbook printing company Treering.
In the note, he explained that Johnston’s yearbook club looked over a digital proof of the book prior to publication, but it did not show the spine.
However, Treering, which is based in Silicon Valley, released a statement disputing his claims.
“The school reviewed and approved both before the book went to print,” the spokesperson wrote.
“The yearbook was printed exactly as the school’s editorial team approved it.”
The school’s yearbook club first noticed the glaring error when the boxes of books arrived at the school.
“One little thing, it’s like everything is perfect but this one thing is messed up,” yearbook club member Nate Dellamorte told NBC 10.
“When I talked to the advisor, he was already actively trying to fix it and a lot of the members said they’re gonna help him.”
Sutherland is outraged over the embarrassing oversight, and has already consulted with lawyers for advice on the matter.
“We are extremely disappointed that this error made it through the company’s quality control and production process,” he continued in his letter.
“We are currently working directly with the yearbook company and other local vendors to ensure the issue is corrected before any yearbooks are distributed to students.”
Others think the yearbooks shouldn’t be reprinted — and the school should just chalk it up to a funny mistake.
“I mean it does happen, and I’m sure it would be too costly to reprint everything,” parent Melanie DaSilva told NBC 10.
“So it might just be one for the books and probably get a laugh.”
Rhode Island
R.I. House Finance budget phases in millionaires tax over three years – The Boston Globe
In January, Governor Daniel J. McKee touched off a debate about a millionaires tax by proposing a state budget that would impose a 8.99 percent tax rate on personal income of more than $1 million — a 3 percentage point increase over the current top bracket that would have generated $67 million in fiscal year 2027.
The House Finance budget would phase in that millionaires tax by raising that top rate by 1 percentage point per year over three years — 6.99 percent for tax year 2027, 7.99 percent in 2028, and 8.99 percent for 2029. The move would generate an estimated $22 million in 2027, $68 million in 2028, $115 million in 2029, and $142 million in 2030.
Blazejewski said phasing in the millionaires tax will help Rhode Island deal with federal funding cuts as they take effect in the years ahead. Advocates see that tax as a crucial source of funding for essential programs amid federal cuts, he noted, while opponents predict it will hurt small businesses and drive away rich residents.
“We thought this strikes the right balance here for our state, given the situation we’re in with the federal government,” Blazejewski said. “We think this is a prudent way of increasing revenue over time, and then phasing it in, so it has less shock, it has more time to be absorbed, and then also comes online exactly when we need it.”
Rhode Island is pursuing a millionaires tax three years after Massachusetts imposed a 4 percent millionaires tax on top of its 5 percent income tax, raising billions in revenue. On May 25, the Globe reported that the Massachusetts surtax on that state’s highest earners has already generated more than $3.1 billion in revenue this fiscal year, with two months remaining — surpassing the $2.4 billion projected.
Inspector general
The House Finance budget includes $1.3 million to fund an independent inspector general’s office staffed with 12 full-time employees who will investigate waste, fraud, and abuse in state government.
Blazejewski called for creating an inspector general’s office soon after becoming House speaker on May 7. The move by the state’s most progressive House speaker came as a surprise to some because Republicans have long made the inspector general’s office a top legislative priority.
But Blazejewski noted he introduced inspector general legislation in 2015. On Friday, he said the federal government is cutting funding at the same time the state has seen “high-profile state failures” such as the closure of the Washington Bridge westbound and the botched rollout of a $99 million state payroll system.
McKee and Republican lieutenant governor candidate John J. Loughlin II questioned why Blazejewski wants the inspector general to oversee the executive branch — but not the Legislature.
On Friday, Blazejewski noted that voters approved a separation of powers amendment to the state Constitution in 2004 to ensure the three branches of government are separate and distinct, and that the inspector general’s office would be an administrative agency of the executive branch.
“If you allow the executive office to run roughshod over the Legislature, the judiciary, you no longer have three branches of government,” Blazejewski said. “It’s not original to Rhode Island. It’s a fundamental principle of government.“
RIDOT audit
The budget includes an audit of maintenance work by the state Department of Transportation. “We just have had too many high-profile failures, and we need to conduct an audit as to the maintenance program,” Blazejewski said.
The budget also removes the Department of Transportation director as chairman of the Rhode Island Public Transit Authority. Former DOT director Peter Alviti Jr. began serving as chairman of the bus agency’s board in 2023. But Blazejewski said, “We just think it’s a conflict of interest.” The DOT director can continue to serve on the board, but not as chairman, he said.
No line-item veto
The House Finance budget rejects McKee’s call for placing a constitutional amendment on the November ballot asking voters to give the governor line-item veto power, which would allow him to strike specific items from the budget without having to approve or veto the entire bill.
Last year, McKee refused to sign the state budget approved by the General Assembly because it raised taxes and fees, but he did not veto the bill. And McKee noted that 43 other states have some form of line-item veto authority.
But Blazejewski said, “That line item veto is about changing the power structure between the governor and the General Assembly,” and the current process works with the governor proposing a budget and legislators passing a budget. Other states have had “issues” with the line item veto, he said, noting Wisconsin’s governor used that power to delete words, numbers, and punctuation from a bill to change its meaning.
Budget exceeds $15 billion
The budget totals a record $15.2 billion for the fiscal year that starts July 1, marking an increase over the $14.859 billion proposed by McKee.
In August, the business-backed Rhode Island Public Expenditure Council warned that the state’s rate of spending was not sustainable. And in the Republican response to McKee’s State of the State, House Minority Leader Michael W. Chippendale said the state budget has grown by 200 percent since 2000, when it was about $4.5 billion.
URI medical school funding
The House Finance budget includes $5 million as an initial investment in creating a medical school at the University of Rhode Island.
The Senate had included that proposal in a 17-bill package aimed at strengthening the state’s strained health care system. Blazejewski said the medical school will help alleviate the state’s severe shortage of primary care doctors in the future.
Tax on Social Security
The House Finance budget includes the first year of McKee’s proposal to eliminate state personal income taxes on Social Security benefits over three years.
Under current law, taxpayers who have reached full Social Security retirement age (67 or older) and have incomes of less than $107,000 for single filers, or $133,750 for joint filers, are exempt from state income tax on Social Security income. The House agreed to eliminate the current minimum age threshold.
Child tax credit
The House Finance budget does not adopt McKee’s proposal to replace an existing tax deduction for dependents with a new child tax credit that would refund families $325 on their taxes per child, per year.
But it does build on the existing tax deduction structure and adds a $330 child tax credit to help lower income families. Blazejewski said the new system “costs a little bit more but gives even more of a benefit to families in Rhode Island.”
Bond questions
The budget includes a record $600 million in bond questions on the November ballot, but it modifies some of the proposals in McKee’s budget.
- Blazejewski said McKee’s budget “underfunded” an integrated health building at URI. So the budget provides $275 million (rather than $215 million) for the state’s three colleges, including $165 million (rather than $105 million) for the URI building, $50 million to renovate Rhode Island College’s Adams Library; and $60 million for a workforce innovation center at the Community College of Rhode Island.
- $120 million for housing, including $25 million for producing housing units for homeownership.
- $100 million (rather than $115 million) for economic development, including $55 million (rather than $70 million) for site development at the Quonset Business Park and I-195 District.
- $50 million for the “cultural economy,” including $45 million for a State History Center that would display the state’s founding documents.
- $55 million for “green economy bonds.” Blazejewski said, “Our caucus spoke over and over about making the green bond greener, and we’ve done just that.“
- The House budget eliminated the $50 million McKee proposed for Career and Technical Education. Blazejewski said testimony indicated the proposal was underfunded even at $50 million, “so we’re going to go back to the drawing board.”
Energy proposals
The House Finance budget adopts some, but not all, of McKee’s proposals for lowering energy bills.
House Majority Whip Katherine S. Kazarian, an East Providence Democrat, said the budget expands the renewable energy standard to including hydro and nuclear energy, which will result in savings.
But she said the budget would reject McKee’s plan to push back the 2033 deadline to reach 100 percent renewable energy sources for state electricity until 2050. “We’re going to continue to keep that 2033 deadline, which is really important to our caucus and, frankly, to the renewable energy investments that have come to the state,” she said.
Central Falls schools
The budget returns the Central Falls school district to local control after 35 years of state control. Blazejewski said this was a priority of Central Falls Mayor Maria Rivera.
Domestic violence calendar
The House budget includes $600,000 to hire three full-time employees and create a domestic violence calendar in state Superior Court to address a backlog of 1,200 felony domestic violence cases.
The House Finance Committee voted 11 to 2 to send the budget to the House floor for a vote next Friday, June 5.
Edward Fitzpatrick can be reached at edward.fitzpatrick@globe.com. Follow him @FitzProv.
Rhode Island
Health professionals warn Rhode Islanders to watch out for Lone star ticks
PROVIDENCE, R.I. (WJAR) — Health professionals are warning Rhode Islanders to look out for a fast-moving threat in the brush this summer: the Lone star tick.
NBC 10’s Martha Konstandinidis went out to see the increase in ticks firsthand and has some simple steps to protect your family.
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