NEW: RI’s Budget Deficit Climbs Toward $900 Million

NEW: RI’s Budget Deficit Climbs Toward $900 Million

The Rhode Island House Finance Committee received more sobering news from House Fiscal Advisor Sharon Reynolds Ferland, who told the committee on Wednesday afternoon that the budget gap in fiscal years 2020 and 2021 has climbed significantly over the past couple of weeks and is now an $866 million shortfall.

"Now, it is closer to $900 million," said Reynolds Ferland, after reports last week following the May revenue estimating conference the number was around $800 million. 

And, nearly every week there is more bad news.

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The CARES Act federal secured by Congress in April cannot be used to fill the budget hole.

Raimondo Budget Proposal in Focus

Rhode Island Governor Gina Raimondo’s proposed cut of $58.5 million to Rhode Island’s hospitals is still in the budget and if lawmakers restore those funds, then the budget gap will far exceed $900 million.

The present fiscal year faces a $248.7 million shortfall with less than 45 days in the fiscal year. And, fiscal year 2021 is projected to see a $617.7 million deficit.

As a percentage of the budget, this represents a record budget shortfall in modern history.

Ferland Reynolds told the Finance Committee without federal funding that can be used for budget shortfalls, the implications are potentially devastating. She also identified $51.5 million in new budget issues.

The Raimondo administration has refused to implement spending cuts such as furloughs for state workers or layoffs.

This story was first published 5/20/20 6:40 PM