Budget Battle Begins: Raimondo's $10.2B FY21 Proposal Met With Opposition by GA Leaders
GoLocalProv News Team and Kate Nagle
Budget Battle Begins: Raimondo's $10.2B FY21 Proposal Met With Opposition by GA Leaders
In her budget blueprint, Raimondo requested making the taxpayer-funded, "free" college tuition RI Promise program permanent, legalizing marijuana in a "state-controlled" program, expanding RIte Share, and creating a dedicated funding stream for affordable housing for the first time in the state.
And reaction from General Assembly leadership was swift -- and direct, especially as it pertained to Raimondo banking on $21 million in revenue from legalized marijuana.
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SLIDES: Ten Things to Know About Raimondo's Budget BELOW
"Yet again, the Governor has presented us a budget lacking many details. I am very concerned about her proposal to generate revenue from the sale of recreational marijuana when she was advised this would not be an acceptable policy to the General Assembly. Over $20 million has been estimated, which is risky and short-sighted at best," said House Speaker Nick Mattiello.
“Additionally, I am very concerned with the number of pervasive debt proposals that require a full vetting by the House Finance Committee. We are disappointed at many of her suggestions, including the raising of taxes and fees, which had been previously rejected by the General Assembly," he added.
“It’s no secret that I’m interested in maintaining the current law regarding the car tax phase-out. This is the second year in a row that the Governor has tried to tinker with the car tax. We must keep our promise we made to our constituents and taxpayers. Lastly, other local aid reductions are very troubling and will have grave consequences for some of our cities and towns.”
Senate President Weighs In -- And Opposes Marijuana
“At first glance, there are many areas of the budget that we can work together on to improve our state. The budget proposal invests in many Senate priorities, including education, housing, health care, and the minimum wage," said Senate President Dominick Ruggerio.
"I am disappointed that revenue from the proposed legalization of recreational marijuana was included in the budget proposal. Seeing as the marijuana proposal is unlikely to pass, we effectively have a proposed budget that is out of balance to the tune of $21.8 million," he added. "The Senate Finance Committee will be reviewing the details of all aspects of the budget in the coming months.”
Raimondo's FY21 Budget Proposal - January 2020
New Marijuana Proposal - DOA?
Raimondo is proposing in her Fiscal Year 2021 budget that there be “state control, adult-use” marijuana.
Essentially, it would be a program run by the State of Rhode Island in a manner analogous to the way New Hampshire runs its liquor stores, except “the State would contract with a third-party operator to run the day-to-day operations of the stores,” according to the Raimondo administration.
Raimondo in her budget proposal is banking on $21.8 million in revenue in the first year, in net state revenue. One of the caveats? Adult-use marijuana home growing would be prohibited.
One minor problem — it’s an election year, and Senate President Dominick Ruggerio on Thursday indicated it was “unlikely” to pass the Senate this year, creating a $21 million hole in Raimondo’s proposal from the get-go.
PHOTO: Katheirne Hitt/Flickr Commons
Proposed Bonds for 2020
Raimondo is asking Rhode Islanders (and first, the General Assembly) to approve $268.5 million in ballot initiatives in 2020.
A higher ed bond totaling $117.3 million would earmark $53.7 million for a new fine arts center at URI, Rhode Island College Science and Technology Renovation ($38 million), academic and student support services at CCRI ($12 million) and a Center for Ocean Innovation ($10 million).
A housing and infrastructure bond totaling $87.5 million would put $25 million towards affordable housing, $15 million to early learning facilities, $20 million towers the Quonset Pier, $21.5 million to industrial site development, and $6 million to arts and historic infrastructure.
Finally, a “Beach, Clean Water, and Green Bond” totaling $64 million would put $35 million towards state beaches and parks, $4 million to location recreation grants, $3 million to natural and working lands, $15 million to “clean and drinking water,” and $7 million to “municipal resiliency.”
More Education Funding Providence?
In a short word, no.
“There’s no specific additional funding for the Providence schools takeover,” said Department of Administration Director Brett Smiley on Thursday.
“There is additional funding for RIDE. These are additional personnel, 9 FTEs, as part of the Commissioner's effort to transform RIDE [from an organization] primarily focused on compliance. to one that can support all the districts and help them deliver better outcomes and instructions.
Smiley said he could not way whether any of the 9 FTEs would be assigned specifically to Providence.
“I don’t know if any will be assigned [to Providence],” he said. “[But I do know their focus is on curriculum support and transformational support.”
DCYF
Raimondo is proposing adding 21 FTE positions as part of her FY21 budget proposal for DCYF — this includes 10 socio-caseworkers, 4 child protective investigators, and 4 legal staff “to improve child advocacy and casework partnership,” according to the administration.
In total, the project spend recommended for the agency is $186.6 million — up from $185.7 million in the FY20 revised budget, and $180.7 million in FY 19 actual spend.
Including in Raimondo’s proposal is a $28 million investment to replace DCYF’s 20-year-old client service data system, which she notes the founding source as coming from federal funds and COPS.
Also included in the proposal — implementing contract reform for private agency foster care to standardize family rates on “Level of Need,” rather than by agency.
Sports Betting
Conspicuously left out of the Raimondo Administration budget briefing overview? Sports betting projections.
As GoLocal reported this last summer, in “RI Sports Betting Numbers Are in for Year One — They Are Abysmal:”
If you are looking for a sure bet then wager against the state of Rhode Island to be able to estimate revenue for sports betting.
The program rammed through by Governor Gina Raimondo’s administration that promised to deliver $23.5 million to the state coffers was a bust in its first year. In November, the state had even downgraded its expected take, saying that it would realize $11 million.
Total revenue in the fiscal year 2019 was just $6,867,769 or 29 percent of what was promised.
This year, when asked in Q&A following the budget presentation, officials offered “$9 million” for projections for FY21.
Climate Initiative Gas Tax
As expected, NOT in the budget is any revenue from Raimondo’s support for the Transportation Climate Initiative — the controversial multi-state approach to address global warming — by likely adding a surcharge at the gas pump.
Opposition has already been mobilized in Rhode Island to the potential impact, with the Rhode Island Center for Freedom and Prosperity stating the following
The prices for gasoline could soon rise dramatically for your family if the Raimondo administration undercuts the authority of the General Assembly, and moves forward with its plan to sign-on to a new stealth carbon-tax scheme – the TCI Tax… a move that would necessarily increase costs on families and business at the pump, and that also could lead to Constitutional legal challenges.
This tax – a green-new-deal type government mandate – is also a regressive fuel tax that will disproportionately harm low-income families, who will struggle much more than the wealthy to pay the higher gasoline prices.
On Thursday, acting Director of Administration Brett Smiley confirmed that at this time no-TCI related revenue was budgeted by Rhode Island —but could not make any assurance moving forward.
“You’re correct that it’s not in the budget,” said Smiley. “I know the goals of the program are to…reduce carbon emissions. I’m not prepared to answer other questions on TCI at this time.
Promise Scholarship
Raimondo in her FY21 budget proposal wants to make the taxpayer-funded, “free” college tuition RI Promise program permanent
“[This budget] makes the RI Promise program permanent, solidifying an affordable, accessible path to success for RI high school students well into the future,” said the Raimondo administration.
“[This budget] eliminates the sunset on Promise Program,” said Smiley. “This year’s high school seniors are the last class that have guaranteed 2 years at CCRI — current juniors will be left behind. This is a proven program that’s working.
Raimondo, who had previously tried to expand the RI Promise program — unsuccessfully — to RIC, could be facing similar hurdles in FY21 — especially if pegging $21 million on legalized marijuana comes up already declared opposition in the Rhode Island Senate.
Dr. Pedro
Not in Raimondo’s FY21 budget? Funding for controversial chiropractor Victor Pedro.
Last year, Speaker of the House Nick Mattiello submitted an amendment to remove the funding for the embattled $1 million subsidy to Pedro in the House budget.
Pedro over the years has been a political donor — donating just $6,100 over the past decade-plus to a range of politicians. Prior to last year, Pedro‘s Cortical Integrative Therapy previously received approximately $2 million in state funding.
Researchers from across Rhode Island questioned the science behind Pedro’s work and his qualifications.
"Cortical Integrative Therapy is an innovative treatment for brain-based disorders. It more accurately pinpoints and identifies the injured or under-performing areas of the brain. Non-invasive audio, visual, visual-motor, and proprioceptive activities are then used to repair brain pathways for more effective and longer-lasting outcomes," Pedro writes about his process.
The funding came to light in an article in the UpriseRI, a progressive news website, after the House Finance Committee approved the proposed 2020 fiscal year state budget.
Housing
“Expanding housing opportunities is a priority of the FY21 budget,” said the Raimondo administration on Thursday.
This year — after previously scooping funding from RI Housing — Raimondo is proposing a permanent funding stream to expand housing production, by adding a tier to the real estate conveyance tax.
As proposed, for properties selling above $500,000 — which Commerce Secretary Stefan Pryor said is “11%” of real estate in Rhode Island — the current tax conveyance tax rate of .46% will be doubled to .92%.
PHOTO: Providence Preservation Society/Warren Jagger
Car Tax
The Governor in her proposal said she remains committed to the elimination of the car tax — over time.
In her proposal, she wants to extend the phase-out schedule by 5 years. “Every taxpayer in every community will see car tax relief in each year of the phase-out,” she said.
Cities and towns in Raimondo’s budget would see “relief” from the state by the elimination to the tune of $10.4 million in FY21.
The delay is sure to be opposed by Mattiello.
PHOTO: David Brown/Flickr Commons
