News Summary
The Rhode Island House Finance Committee has approved a $13.947 billion budget for fiscal year 2025, which focuses on education, infrastructure, and housing. Key allocations include $83.6 million for bridge reconstruction, significant increases in education funding, and a historic $120 million for affordable housing. Notably, Governor McKee’s funding proposal for Citizens Bank was excluded from the budget. The final budget review will take place on June 7, aiming to address critical needs while navigating financial constraints.
Providence — The Rhode Island House Finance Committee has voted 13-1 in favor of a $13.947 billion budget for the fiscal year 2025, marking a significant investment in education, infrastructure, and housing within the state. The only dissenting vote in the committee came from Republican George Nardone of Coventry.
The budget allocation emphasizes the vital needs of education and infrastructure, providing $83.6 million for Rhode Island’s portion of federal funds needed for the reconstruction of the westbound Washington Bridge, which has been closed. Despite ongoing federal investigations involving the state’s Department of Transportation, its director, Peter Alviti, is set to retain his position.
Governor Dan McKee’s proposed deal with Citizens Bank was notably excluded from the budget. However, House Speaker Joe Shekarchi has expressed interest in finding ways to maintain the bank’s competitiveness within Rhode Island’s economy.
Additionally, the budget will not fund a new state archives and museum, as there is no defined site or partnership established. In contrast, education funding has received a substantial boost, with a $70.9 million increase in state aid earmarked for schools, exceeding the initial request by Governor McKee by $33.8 million.
Details of Education Funding
The budget includes provisions for additional funding directed at multi-language learners and the Learn365RI initiative, which aims to enhance reading and math outcomes across students. Moreover, it fully funds an $813,000 proposal designed to provide free breakfast and lunch to approximately 6,500 students who are currently receiving reduced-price meals.
Support for higher education is also a focus, with a $1 million increase in operating support for the Community College of Rhode Island (CCRI) and a $2 million allocation for the University of Rhode Island (URI). Additionally, the budget seeks to continue the Rhode Island Promise and Hope scholarship programs, which offer two years of free tuition to eligible students.
Investment in Housing and Health Care
Affordable housing has been prioritized in the 2025 budget. A historic $120 million is allocated for the creation of affordable housing, which includes $90 million specifically for housing initiatives, $10 million for acquisition and revitalization, and added funding aimed at homeownership programs and related housing infrastructure.
In terms of health care, the budget allocates over $160 million to ensure full funding for Medicaid rate increases. Additionally, a proposal to redirect $10 million from unspent federal COVID funding to nursing homes is included, alongside a 20% increase in cash benefits for recipients of the state’s cash assistance program, Rhode Island Works.
Child Care and Infrastructure Support
The 2025 budget also aims to enhance child care support, prolonging the pilot program for child care providers for another year. Furthermore, funding has been earmarked to assist businesses affected by the Washington Bridge closure, reflecting a clear intention to bolster local economies.
Construction and repair needs are addressed through an added $5 million in a grant program intended for municipal projects related to roads, sidewalks, and bridges. The budget also ensures continued funding for the Rhode Island Public Transit Authority to maintain services despite the cessation of federal pandemic aid.
Conclusion and Next Steps
Speaker Shekarchi noted that the budget has been structured to prioritize education across all levels, specifically targeting support for children impacted by the pandemic. The finalized budget bill, designated as 2023-H 5200A, is set for review by the full House of Representatives on June 7, marking a crucial step in the state’s financial planning for the upcoming fiscal year. This budget reflects an intent to balance essential services in education, housing, and health care while navigating the financial realities faced by Rhode Island.
Deeper Dive: News & Info About This Topic
- Rhode Island Current: McKee’s Proposed FY 2026 Budget
- Brown Daily Herald: Proposed $14.2 Billion State Budget
- WPRI: Smiley’s $624 Million Budget Proposal
- Google Search: Rhode Island budget 2025
- Turn to 10: Providence Residents Face Tax Hike
- Encyclopedia Britannica: Rhode Island
