PROVIDENCE – House Speaker K. Joseph Shekarchi on Thursday expressed concerns over the state's future finances during the Greater Providence Chamber of Commerce's annual Legislative Luncheon at the R.I. Convention Center now that the $1.1 billion in federal rescue funds has been spent or earmarked.
Shekarchi, while admitting belt-tightening is at hand, said he could not commit to raising taxes until the next revenue projections are received in May.
"I'll do my best [to keep taxes level], but I cannot make that commitment," he said.
Shekarchi said the House has already received a total of $1 billion in requests from agencies and departments outside of the proposed fiscal 2025 budget, such as free public school lunches and the "baby bond" initiative supported by General Treasurer James Diossa.
"All very good in terms of noble causes," Shekarchi said, "but with no revenue to support those asks.”
Like all businesses and citizens, he continued, "We have to live ... within our own budget, and that includes the state. We have to realize we don't have that [federal] money and try and keep an open mind. There is very little wiggle room in the budget."
Previous "strategic" tax cuts were enacted last year, Shekarchi said, including the $50,000 exemption to the tangible property tax levied on business equipment and assets that went into effect Jan. 1.
This year, Gov. Daniel J. McKee's
budget summary states that if the fiscal outlook improves during the revenue estimating conference in May, the administration will explore “potential” sales tax relief.
Senate Majority Leader Ryan Pearson, D-Cumberland, said that when finalizing the state budget, it will be important for legislative leaders to "pick our spots."
"It will be much more vanilla," he said of the budget. "This is going to be a time to prioritize."
House Majority Leader Chris Blazejewski, D-Providence, said "it's very hard to predict the future" and acknowledged "we have structural deficits coming back."
Meanwhile, the state is still facing enormous challenges with fiscal implications, from education to housing to infrastructure.
Senate Minority Leader Jessica de la Cruz, R-Burrillville, is against any tax increases.
"Everything costs more," she said. "It's already difficult to put gas in your car and food on the table."
De la Cruz said she supports increasing school choice through an expansion on charter schools, sharing an anecdote of a local business owner who told her a recent job applicant from Providence was unable to read and fill out the application without assistance.
House Minority Leader Michael W. Chippendale, R-Coventry, worried that the simmering health care challenges from rising costs of insurance to staffing shortages will get worse as the state's population ages.
"I worry about a collapse of the health care system," he said.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
