RI State Budget: Winners, Losers and Some Surprises
GoLocalProv News Team and Kate Nagle
RI State Budget: Winners, Losers and Some Surprises
And while the budget proposal was not voted out of House finance by midnight -- which would have been the deadline to have it to a full vote by next Thursday -- the Speaker along with House Minority Leader Patricia Morgan agreed to adhere to the intended time frame.
One of the big surprises was cuts to RI Commerce Corporation.
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Members of the press were briefed well past 10 p.m. on Thursday on an overview of the budget, before the finance committee rushed consider it immediately following.
"Everything in the budget was a negotiation. We have limited resources. I'm very pleased -- I should say proud -- of the budget," said Mattiello, just before 11 on Thursday. "It's balanced, it restores resources for economic development tools for essential community needs, it restores funds for bus passes for elderly and disabled, restores funding to nursing homes and hospitals, adds additional employees for DMV - there's a lot you can be proud of."
The House Finance Committee was tasked in part in addressing the nearly $140 million budget shortfall the state found itself facing, after the May revenue estimating conference.
"It's always better, easier, when there's more revenue," said Mattiello. "I'm proud of the budget we produced in light of the conditions we have to work in -- it's put together very creatively."
Change to Free College Tuition Proposal
The pilot "free college" program will only be implemented for Community College of Rhode Island and still includes many of the issues the drew fire, while addressing some of the more contentious issues.
Car Tax
The House Finance budget includes $26 million for the first year of the phase out of the car tax.
"It's 150,000 cars off the rolls," said Mattiello. "It's a regressive tax."
Time Frame
Mattiello spoke to the late hour on Thursday, when the press briefing adjourned just past 11, originally giving the Finance committee less than an hour to deliberate and vote on the measure, before both party's leaders agreed to lift the rule.
"They know the budget better than I do, they understand the budget, they work with it every day," said Mattiello of the compacted time frame."They're uniquely able to vote on it."
FY18 House Finance Budget
WINNER
CCRI
The state's community college is poised to be the sole beneficiary of the Governor's Promise scholarship program.
It would make Rhode Island the fourth state to have tuition-free community college, allowing every resident the opportunity to earn an associate's degree tuition free. There is no means testing for the program and few standards.
The cost would be roughly $3 million in the FY18 (for the first cohort of students) and then $6 million the following year there are two classes.
LOSER
State Government
As part of negotiations -- and the fiscal realities facing Rhode Island with a nearly $140 million shortfally, the Speaker announced Thursday that $25 million will be cut in general spending.
"It's something we discussed with the Governor and she thinks she can make [it] work," said Matteillo.
Also on the chopping block -- funding for the legislative office to the tune of $2 million.
WINNER
Elderly and Disabled Bus Riders
After levying fares on some of the most needy RIPTA bus riders (the elderly and disabled) for the first time this past year, which resulted in strong public outcry, the House Finance budget contains just over $3 million -- for each of the next two years -- to refund the program this coming year.
WATCH: Opponents of RIPTA Fare Hikes to Rally at RI State House Wednesday Afternoon
Mattiello noted that after the two years is up, it is up to the Governor to find the funding.
TIE
Governor Raimondo
On Thursday, Raimondo learned she is poised to get a piece (jCCRI) of her free college tuition proposal, which had been a major focal point of her budget proposal - and political strategy.
On the flip side, she is tasked with finding $25 million in government spending to cut, in order to balance the budget.
Unlike the May estimating conference, where Rhode Island revenues were found to be off nearly $100 million plus, the Governor can't say she didn't see this coming.
LOSER
Medical Marijuana Expansion
In June, Raimondo called for an increase in medical marijuana dispensaries and an increase in licensing fees to generate $1.5 million in revenue for the state.
She called for "no less than six licensed compassion centers."
On Thursday, Mattiello said it was not in the budget, due the proposal's late timing.
WINNER
Davies High School
The House finance budget contains additional help for manufacturing, including $3.6 million to upgrade facilities at Davies Career and Tech.
LOSER
Commerce Corporation
While Mattiello made scant mention of cuts in the briefing Thursday - save for the $25 million out of government spending -- the question was raised as to where the rest of the $140 million shortfall will come from.
"Millions in cuts came from the Commerce Corp budget. The budget kept the Rebuild RI funding, but money for several other Commerce programs were reduced," said Larry Berman, spokesman for Mattiello.
TIE
Mininum Wage Hike
Workers will be happy, employers might not.
The FY18 budget proposal calls for a $.50 minimum wage increase as of January 1, 2018, and then an additional $.40 the following year.
Business owners have continuously fought against such hikes.
