Surprise Last Minute Changes in RI House Budget for FY17
GoLocalProv News Team and Kate Nagle
Surprise Last Minute Changes in RI House Budget for FY17
One of the biggest surprises was the re-insertion of a bond question for $20 million for ProvPort this November -- for unspecified land acquisition.
SLIDES: Budget Winners and Losers for RI Fiscal Year 2017 BELOW
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAfter a number of amendments were introduced -- and the controversial Article 18 pertaining to alternative energy was removed -- the House approved the tax-and-spend bill for FY17 by a vote of 59-13, shortly before midnight.
House Finance Chair Marvin Abney introduced a budget amendment that included a number of significant changes to the House Finance committee version, which was approved by the full House on Wednesday.
"This amendment addresses key changes from what passed committee to address key concerns," said Abney. The amendment included:
* $500,000 for empowerment schools
* $300,000 for the Office of the Health Insurance Commissioner
* $893,000 for four new probation officers and their training for justice reinvestment initiative
* $200,000 for Institute for the Study and Practice of Non-Violence
* Adds $18,000 for Newport Historical Society consistent with current law
* $300,000 removed for John Hope Settlement House
* Recommends $1,200,000 for "population savings in corrections"
* Restores $150,000 for university and college research collaboratives
Speaker of the House Nicholas Mattiello's spokesman Larry Berman said that while there were no changes to the charter school funding proposal as put forth by the finance committee last week, that the amount was still higher than was introduced by Governor Gina Raimondo.
"We did add $1 million in funding from the Governor's budget," said Berman, who noted that certain provisions from Article 18 -- not a controversial wind farm deal that came under scrutiny -- would be introduced as stand-alone legislation on Thursday.
Amendments Turned Away
"Look, there is a long list of worthy organizations -- you're doing exactly what I'd be doing, advocating for organizations that are important," said Abney to Representative Joe Almeida, when he inquired about funding for non-profits that had gotten community service grants in the past, but were cut when the program was dismantled this year.
Almeida asked about the funding restored to the Institute of Non-Violence -- as well as the funding for another nonprofit, Crossroads.
"Is there any money taken from Crossroads? There should be," said Almeida.
One amendment that came closest to approval was one put forth by Representative John Lombardi, to address the fare hikes put in place for RIPTA.
"The Governor said she'd find the funding, but she never did," said Lombardi, whose amendment would restore funding from the Assembly's legislative grant fund.
The amendment was defeated 27-41. That was the closest vote on any of the amendments.
“I’m very proud of this budget. There are no new taxes or fees for the general public. In fact, we’ve eliminated those that were proposed, reduced fees and provided tax relief for seniors, low-income earners and small businesses while maintaining our commitments to economic development and education. It’s a pro-business, pro-jobs, pro-economy and pro-citizens budget, one that is the result of many, many hours of listening, thoughtful negotiating and consideration. I believe the citizens of our state will be happy with this budget,” said Mattiello following passage.
Read the Full House Budget Overview HERE
FY17 House Budget -- Winners and Losers
Winner
National Grid
When controversial Article 18 got pulled from the budget on Tuesday, critics had lauded the removal of the provision, which appeared to benefit a single wind farm - and the substantial political donor who owned it. But the real winner here is National Grid, the company owned by the British Energy Conglomerate, who would have had to force electric rate payers to pay millions more to connect renewable energy projects to the power grid and pay a greater share.
The battle is not over, however; Speaker Mattiello said that after having received feedback on Article18 and that he "reached the conclusion there are pieces of the article that do not need to be in the budget." Given the level of scrutiny is it highly unlikely the measure will see light of day as a stand-alone measure before the session adjourns, but it can't be ruled out.
Loser
Statewide Tourism Campaign
There was no last minute relief for the Commerce Corp. The often controversial agency is taking a cut.
Following the ill-fated rollout of the statewide tourism campaign this year, House Finance opted to give money back to the regional tourism bureaus that had been slated to go to the centralized effort.
Mattiello said that the House finance budget is taking $1 to $2 million from the $5 million for next year from the statewide tourism office and giving it back to the regional tourism bureaus. “We had a snafu in the effort. We’ll rely on the locals for the year, and then it will transfer back to state initiative,” said Mattiello.
Winner
Medical Marijuana Growers, Patients
One of the biggest battles of the 2016 General Assembly session started when Governor Raimondo proposed a tagging fee on medical marijuana plants -- to major pushback.
The tax as proposed in the Governor's 2017 budget would have imposed a $150 per plant charge on patients lawfully growing marijuana for medical purposes, and a $350 per plant charge for caregivers, for a projected total of $8.5 million in new revenue.
House finance scaled back the fee-per-plant to $25, to cover the costs of regulating the marketplace.
“Advocacy works. We listened to folks, no one really liked the proposal we received,” said Mattiello. “[As far as] the need of regulations, we’re probably on the low end of that. But we didn’t want to enhance revenues on prescription medications.”
Winner
ProvPort
A surprise amendment that resussciated a dead proposal.
A late session effort by the City of Providence to get a $20 million bond question on the ballot for ProvPort in November initiatially hadfallen flat as a line item in the budget.
Legislation introduced by Senate Majority Leader Dominick Ruggerio in late May and now a budget article add-on for a bond referendum of $20,000,000 to fund the acquisition, expansion and infrastructure improvement of up to approximately 25 acres of land and facilities located between Allens Avenue in Providence and the Providence River by ProvPort, Inc.
While it appears to be a House Finance budget “loser” the battle is not over yet for the year, as Mattiello said there is still ongoing discussions.
Winner
Business Owners
Mattiello touted in his “pro-business, pro-economy” budget lowering the minimum corporate tax from $450 to $400. This comes a year after the General Assembly lowered it from $500 to $450 last year, taking away at that time the dubious distinction for Rhode Island being the state with the highest corporate minimum tax.
“There are no new taxes or fees,” said Mattiello of the House Finance FY17 budget (apart from the $25 medical marijuana tax).
Loser
School Infrastructure
Raimondo had called for a $40 million school construction and renovation bond to be put on the November ballot, but Mattiello said during a media briefing that the state should wait for the completion of a study expected to show what exactly the construction needs are for the state’s schools.
Mattiello said that there is still funding in the budget for school construction needs, as Raimondo had also proposed an $80 million appropriation for construction and renovation, including of $9.1 million for the school building authority -- but the dedicated bond question that would have increased resources by 50% -- was off the table in the House Finance budget.
Winner
Smokers and Mini-Marts
After years of steady increases in the state’s cigarette tax, smokers got a reprieve in House Budget when the committee rejected Raimondo’s proposal to raise the cigarette tax twenty-five cents from $3.75 to $4 a pack.
Make no mistake about it, this is just as much about the convenience stores not wanting the additional tax on their golden goose - and New England Convenience Store Association lobbyist Brian Goldman just got vetted by Senate Judiciary for his nomination from Raimondo to replace Associate Judge Frank Cenerini, who retired in October 2014.
Loser
Raimondo’s Minimum Wage Hike
Governor Raimondo once again pushed for an increase in the state’s minimum wage, and it appears she will be once again denied by the legislature.
Speaker Mattiello said that Raimondo’s effort to boost the minimum wage from $9.60 to $10.10 an hour would be a no-go. So while it falls in the loss category for those who were pushing for it, it could have been labeled as a win for business owners who have said they couldn’t incur such a mandatory increase.
Winner
Retirees (Pensioners)
“We are giving pension relief to everyone who receives some type of pension income, whether it’s public employees, private, or veterans,” said Mattiello.
Mattiello noted that the tax deduction “will be income tested, [and] you have to be Social Security age to qualify.” The tax exemption is slated to apply to the first $15,000 in retirement income, for those qualifying individuals with incomes of $80,000 or less, and couples up to $100,000.
Loser
Solar and Wind
While the removal of Article 18 was championed as a win against crony capitalism, there was more at stake than just one developer with strong political ties. While the article appeared as of Tuesday looked to be gone from the budget, that did not mean the legislative proposal could not stand alone. EcoRI was quick to point out however all that the article did for provide for a number alternative energy incentives including:
Article 18...would allow loans for projects using net metering and virtual net metering, as well as those priced through the Renewable Energy Growth Program.
Article 18 also includes a five-year extension of the state Renewable Energy Fund, which provides grants for small- and medium-sized solar projects. The funds are collected through a monthly surcharge on electric bills and the pool of funds, currently about $6 million, is distributed to solar developers and installers through the Rhode Island Commerce Corporation.
Article 18 also exempts residential and commercial manufacturers from paying local property taxes. It also establishes a statewide property tax rate for commercial renewable-energy systems. The new tax rate will be determined by the Office of Energy Resources.
Winner
Beach Visitors
Beachgoers get a win.
Everyone who loves the beach gets a win with the the House budget. Speaker Mattiello touting that “beach fees are reduced to the 2011 level” for the coming year.
A season pass for residents would be slashed from $60 to $30, non-residents from $120 to $60, and Rhode Island senior citizens from $30 to $15. Plus, one-time entrance fees would be lowered for residents from $10 to $6 (and senior citizens, down to $3).
