Proposed Budget Highlights
The governor’s budget prioritizes the state’s “Affordability for All” agenda, invests in infrastructure projects, aims to protect vulnerable populations who rely on safety net programs, and increases funding for education and other key areas. The budget also proposes to ask voters to approve a constitutional amendment to grant the governor line-item veto power to control spending. Highlights of the budget include:
Affordability for All
- Eliminate the state tax on social security benefits, phasing it out over the next three years.
- Create a new state refundable child tax credit, replacing the existing dependent deduction.
- Reduce energy costs by reforming the portion of energy bills controlled by state programs and taxes.
- Repeal 2-cent motor fuel tax hike enacted last year.
- Backfill recently expired, enhanced Affordable Care Act subsidies.
- Authorize the Office of the Health Insurance Commissioner to set annual cost-growth targets that are enforceable and require more drug price transparency.
General Obligation Ballot Initiatives for Infrastructure
- Propose placing six general obligation bond questions totaling $600 million on the November ballot, including to support: higher education facilities; affordable housing construction; economic development capital projects; energy efficiency infrastructure and other green economy projects; career and technical education programs and improvements; and construction of a State History Center and matching grants for municipalities and nonprofits to preserve public historic sites.
Protecting Residents from Safety Net Cuts
- Invest in information technology and staff administering Medicaid and SNAP in response to provisions in the One Big Beautiful Bill Act (OBBBA).
- Provide additional funds to hospitals to help offset losses due to uncompensated care.
- Increase rates for social and human services providers.
- Add funding for the Rhode Island Community Food Bank.
- Provide a state grant to Planned Parenthood of Southern New England to preserve reproductive health care access.
- Begin to fully reopen a neighborhood within the Rhode Island Veterans Home.
- Leverage federal funds in the Rural Health Transformation Program.
Supporting K-12 and Higher Education
- Increase per-pupil spending for K-12 and increase the student success factor to provide additional support for educating children in poverty.
- Increase funds for high-cost special education students.
- Provide grants as part of the Learn365RI program to support partnerships focused on efforts to promote learning year-round.
- Transition the Rhode Island Hope Scholarship from a pilot program to a permanent one.
- Increase unrestricted operating support for public higher education institutions.
Revenue Initiatives
- Decouple from OBBBA research and development tax provision.
- Create a fourth tax tier for highest-income earners (over $1 million annual income).
- Launch a tax amnesty program to encourage delinquent taxpayers to pay outstanding state taxes.