PROVIDENCE – Gov. Gina M. Raimondo has asked the General Assembly to consider a revised package of capital improvements that takes into account what is expected to be the lingering financial impact of the COVID-19 pandemic on state revenue.
Starting in fiscal 2021, the combined effect would be to defer or eliminate millions of dollars in planned improvements to state buildings and properties over several years.
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The House Finance Committee is expected to discuss the package, called the Rhode Island Capital Plan Fund and Capital Amendments to fiscal 2021 appropriations, in a web meeting on Thursday.
The amended plan assumes a “worst-case revenue forecast scenario,” according to an attached overview from Thomas A. Mullaney, the state budget officer, and will require repayment of $120 million to the plan in fiscal 2022, due to a “continuing lag in revenues” expected through fiscal 2021.
The plan also assumes another $90.7 million is transferred from the state’s rainy-day fund.
According to the memo, the plan proposes to spend funds only on those projects that satisfy an economic-development need, are required for health and safety or federal compliance, or that are already under contract, and legally obligated to continue, by June 30.
The amended plan also assumes the state moves ahead in restructuring the Eleanor Slater Hospital campus, converting the Zambarano campus in Burrillville to include a nursing home and closing the Adolph Meyer and Regan Hospital buildings in Cranston.
Among the dozens of other proposed changes: $12 million will be saved because the Zambarano hospital is no longer proposed for a renovation; funds for the Interstate 195 park improvements will be added to a general obligation bond, and renovations to the Cranston Street Armory will be reduced from $250,000 to $37,395 to complete contracted services, with the remainder deferred to 2022.
The House Finance Committee is expected to start reviewing the changes, to be included as a budget amendment, in a meeting at 4 p.m. Thursday. It will be livestreamed on Capitol TV.
Mary MacDonald is a staff writer for the PBN. Contact her at MacDonald@PBN.com.
