PROVIDENCE – Gov. Daniel J. McKee on Friday signed the state’s $15.2 billion fiscal year 2027 budget that begins July 1.
Joined by General Assembly leaders at the nonprofit Children’s Friend headquarters, McKee said the budget is continuing “investments that support good-paying jobs and economic growth.”
"My commitment has been to keep people working in good paying jobs," he said.
The plan included the creation of an inspector general’s office, proposed by House Speaker Christopher Blazejewski, D-Providence, that will be tasked curbing tax-dollar waste. It does not include oversight of the General Assembly and the court system
In a statement Blazejewski said the office was "critical to ensuring that the state is spending each and every dollar as efficiently and effectively as possible."
“Every administration, regardless of party, benefits from independent oversight," he said. "That is exactly what Rhode Island needs right now.”
A roughly $900 million increase from the previous year and $344 million more than McKee’s proposed $14.86 billion plan, the revised budget plan includes the full $116 million Medicaid reimbursement rate increase for home and behavioral health providers and adds $26 million in state funds to hospitals.
McKee had sought what has been referred to as a ‘millionaires tax’ of 8.99% on income over $1 million, projecting $67.1 million in additional revenue in fiscal 2027 and $135.5 million in fiscal 2028.
The General Assembly, which officially wrapped up the legislative session shortly after midnight Thursday, opted for a three-year phase in of the tax, beginning with 6.99% in the first year, 7.99% in year two before moving to 8.99% in year three, netting around $22 million in the fiscal 2027 budget and $136 million annually after the phase in.
Senate President Valarie J. Lawson said the tax-and-spending plan "represents what we believe is our strong commitment for working people in Rhode Island."
Republican Party of Rhode Island chairman Allyn E. Meyers issued a statement criticizing McKee for signing the record-high budget, calling it a missed opportunity for meaningful tax relief and fiscal restraint in a time of face skyrocketing housing and utility costs.
“Simply spending more, even with surplus revenue, does not solve the fundamental problem,” he said. “Government is growing faster than our economy and faster than taxpayers can sustain.”
“Governor McKee had a clear choice: stand with taxpayers or grow government,” Meyers added. “He chose the latter.”
The budget retained a $600 million infrastructure bond package, a $120 million housing bond issue and a $50 million cultural economy bond for grants to cultural institutions and a state archives and history building, all to be placed on the statewide ballot in November.
- Added over $24 million above McKee’s proposal to fully fund direct state education aid to K-12 schools
- A ballot question for $275 million in borrowing, including $165 million for a new Integrated Health Building at URI; $50 million for renovations to the Adams Library at Rhode Island College; and $60 million for the Workforce Innovation Center at the Community College of Rhode Island’s Warwick campus
- Extension of the Hope Scholarship for an additional three years
- Adding a new refundable child tax credit of $330 per child
- Total green bond ballot question of $55 million
- $22 million to expand access to health insurance through Health Source RI
- $1.6 million for the Newport Hospital Birthing Center
- $5 million for startup costs for the proposed new medical school at the University of Rhode Island
(UPDATE: Adds comment from chairman of Rhode Island Republican party in 10th, 11th and 12th paragraphs.)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
