Shekarchi Says a Citizens Deal “Is Still Possible” This Session After Bank’s Threat

Shekarchi Says a Citizens Deal “Is Still Possible” This Session After Bank’s Threat

Citizens Bank has upped the language and de facto issued a threat against the Rhode Island General Assembly.

This weekend, Citizens issued a statement that some interpreted as a threat. The statement came after House leadership did not include a provision in the budget that would have cut the bank's operating cost in Rhode Island. 

“We are disappointed that Budget Amendment 19 was not included in the State Budget. This decision will make it difficult for the state to compete on a level playing field with Massachusetts and other states and is not in the best interest of Rhode Islanders.  We urge the Rhode Island General Assembly to address the issue before the end of the session.  We are committed to working diligently to achieve a positive outcome,” said Rory Sheehan, Head of Enterprise Communications for Citizens.

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Sheehan refused to answer additional questions. 

In an interview on Sunday night, Speaker of the House Joe Shekarchi told GoLocal, “It is possible [for a late deal], but I want to work by consensus.”

He added there is little time in this session. The legislature is looking to adjourn on Friday, June 14.

This was a change from Shekarchi’s statement on Friday when he said the budget article would not be included and that he would work in the fall to address Citizens’ concerns.

Shekarchi announced on Friday that the budget will not include a late-session proposal to alter the state’s financial institutions tax nor funding to purchase a facility owned by Citizens Bank in East Providence.

He said he is interested in discussing the financial institution's tax and other measures that keep Rhode Island competitive with neighboring states. But there is a financial hit.

The House Finance Committee staff estimates that Rhode Island will lose $7.7 million for FY 2025, and the annualized loss for FY 2026 will be $15.6 million.

“I don’t want to be the Speaker who loses Citizens Bank. I will roll up my sleeves and get to work with them over the summer so we can pre-file legislation that can be vetted early in the year, but right now, we don’t have enough information to know whether this plan is the right move for our state,” Shekarchi had said. 

 

Shekarchi Brought in Late

Shekarchi voiced some frustration that the McKee Administration did not bring the House of Representatives into the discussion about Citizens demands.

“I was not brought into this discussion until mid-May,” said Shekarchi.