PROVIDENCE – Rhode Island posted a deficit of $110.7 million in fiscal 2017, according to the annual audit of the state’s fiscal position conducted by Auditor General Dennis E. Hoyle released Tuesday.
Total revenue for the state from taxes, federal grants and other revenue in the fiscal year ended June 30, 2017, amounted to $6.7 billion, a 1.6 percent year-over-year increase. On the other hand, total expenditures and transfers out by the state came to $6.8 billion, an increase of 3.4 percent. The resulting shortfall took $110.7 million out of the General Fund to cover the shortfall, leaving the fund at $390 million by the end of the fiscal year, although $52.5 million of that amount already has been appropriated for support of the fiscal 2018 budget, along with $9.2 million set aside for future use.
The report noted that the Budget Reserve and Cash Stabilization, or “Rainy Day” fund, was in compliance with the applicable state laws and had a balance of $192.6 million at the end of the fiscal year. The R.I. Capital Plan for future capital expenditures stood at $151.9 million. Other government funds with significant balances included: Debt Service, $101.9 million; Temporary Disability Insurance, $156.2 million; Historic Tax Credit Redemption, $47.8 million; Transportation Infrastructure, $364 million; and Transportation Maintenance, $63.3 million.
The audit said that Rhode Island’s revenue sources were primarily taxes, which accounted for 44 percent of all revenue, and federal grants, which accounted for 41 percent of revenue for the fiscal year. Year-over-year changes on the revenue side included:
- Taxes (personal income, sales and use, general business, and other) – $2.9 billion, +0.8 percent
- Licenses, fines, sales and services – $348.9 million, -1.9 percent
- Transfer from Lottery – $362.7 million, -1.9 percent
- Federal grants – $2.7 billion, +4.4 percent
The major components of the 3.4 percent increase in expenditures were:
- General government – $553.5 million, -4.1 percent
- Human services – $3.8 billion, +3.7 percent
- Education – $1.5 billion, +4 percent
- Public safety – $534.5 million, +6 percent
- Natural resources – $77.6 million, -0.9 percent
- Debt service (principal and interest) – $164.4 million, +22.3 percent
Other details form the audit:
- The state’s long-term liabilities outstanding totaled $6.5 billion, an increase from $6 billion at the end of fiscal 2016
- The state contributed $296 million to the defined-benefit pension plans of state employees, which stood at varying degrees of funding – 51.9 percent for state employees, 54.1 percent for teachers, 92.6 percent for state police, 90.2 percent for one plan for judges, 2.5 percent for another plan for judges
Chris Bergenheim is the PBN web editor.
