Senate Passes & Raimondo Signs $9.2 Billion Budget Bill
GoLocalProv News Team
Senate Passes & Raimondo Signs $9.2 Billion Budget Bill
The budget passed by a 30-5 vote, with all five Republicans voting no.
The passing of the budget comes after a nearly month long battle between Speaker of the House Nicholas Mattiello and Senate President Dominick Ruggerio.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“We have come to an agreement that allows us to move forward with the business of the state, allowing the excise tax phase out while still providing protections that will monitor its economic feasibility for the state. While the excise tax has been the focus for several weeks, it’s important to remember that it’s just one part of the budget that does much more. In a difficult year where we faced lower-than-anticipated revenues, I’m pleased that we were able to maintain the progress we’ve made at reducing taxes while restoring no-fare bus passes for low-income elderly and disabled Rhode Islanders, and increasing funds to hospitals and nursing homes,” said Senate Finance Committee Chairman William J. Conley Jr.
Governor Gina M. Raimondo signed the FY 2018 budget into law this evening, immediately following its passage by the Rhode Island State Senate.
"This is a Jobs Budget, with a lot in it to help Rhode Islanders," Raimondo said. "It makes Rhode Island the first state on the East Coast to make community college tuition-free for every high school graduate. It continues our record investments in classrooms across the state, increases the minimum wage and gives homecare and direct care workers a raise. And, it gives every Rhode Islander car tax relief. I will continue to do everything in my power to protect our progress, create more jobs, and give more Rhode Islanders the training and education they need to get the good jobs we're creating."
The Bill
The excise tax relief plan included in the budget eliminates the car tax by reducing the taxable portion of a car’s retail value from 100 percent to 95 percent and increasing the minimum exemption from $500 to $1,000, and capping the rate at $60 in 2018.
It also stops taxing cars that are 15 years or older effective immediately. It continues reducing the taxable value and maximum rates and raising the minimum exemptions through 2023, with the tax completely eliminated in 2024.
The budget fully reimburses cities and towns for the lost revenue, a cost of $26 million in 2018.
The bill includes proposed raises for state-subsidized home health care workers and those who serve the developmentally disabled.
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.
