McKee signs record $14B state budget for FY 2024

GOV. MCKEE ON FRIDAY signed the fiscal 2024 budget during a midday ceremony. /PBN SCREENSHOT

PROVIDENCE – Flanked by state officials and a birthday cake gifted by House Speaker K. Joseph Shekarchi, Gov. Daniel J. McKee on Friday signed a $14 billion state budget for the 2024 fiscal year that begins July 1. 

During a signing ceremony held on the south steps of the Statehouse, McKee said he wants to keep the state’s “momentum” going. 

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“I’m very pleased where we ended up,” he said, noting investments in education, local infrastructure and housing.

During an hours-long Thursday floor session that wrapped up General Assembly business until it reconvenes in January, the Senate in the early morning hours approved the budget 32-4

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The budget cost is a record for the state, in part due to the millions in unspent federal relief dollars that legislators sought to dedicate to one-time expenditures for housing production, education and supplemental payments to state reserves. 

The final budget is 43.7% higher than McKee’s $13.7 billion spending plan from fiscal year 2019, according to the R.I. Public Expenditure Council. 

Senate Majority Leader Ryan Pearson on Friday said the budget “addresses many critical needs” and “ensures a long-term financial footing,” highlighting the tangible tax exemption that is projected to bring the liability to zero for 75% of the state’s small businesses. 

“This is going to enable our business to continue to grow,” he said. 

Most of the 14-bill housing package introduced by House Speaker K. Joseph Shekarchi gained approval, including tax credits for developers who include low-income units, reforms meant to streamline local permitting, relaxed rules on commercial to residential conversions.

A bill that would have promoted accessory units at single-family homes did not receive a vote. 

After the Senate budget approval, both chambers passed a slew of late-night legislation that closed out the session. While there was no action on bills related to gun control, the Law Enforcement Officers’ Bill of Right, the “bottle bill” pushed by environmental advocates or payday lending reform, though several high-profile bills sneaked through in the final hours.  

Among those now awaiting McKee’s signature: 

  • An expansion of gambling to so-called “iGaming” operations to be administered by Bally’s Corp. And IGT, adding real-time streaming of live casino dealers in table games like blackjack and poker. 
  • Legislation allowing recreational cannabis businesses to advertise in state until final rules are adopted by the newly appointed Cannabis Control Commission. 
  • A bill banning Styrofoam take-out containers at restaurants.
  • Creation of a lead pipe replacement program and a mandate that all affected service lines be replaced within 10 years.
  • Making June 19, or “Juneteenth,” a state holiday beginning in 2024.
  • Bill allowing cities and towns to tax property owned by nonprofit institutions that is “leased or occupied by for-profit persons and entities.” 
  • Ban on rental application fees. 
  • Republican-sponsored campaign finance legislation doubling both the yearly individual donation cap from $1,000 to $2,000, and the amount of anonymous donations from $100 to $200. 
  • A bill prohibiting employers from requiring non-disclosure agreements for employees. 
  • Extends the sunset from July 2024 to July 2027 of the state’s musical and theater production tax credit and expands the program to national tours that launch in Rhode Island. The existing tax credit applies only to productions that either follow or are a precursor to Broadway productions. 
  • Making wage theft committed “knowingly and willingly” of more than $1,500 a felony, punishable by fines and incarceration. And wage theft more than $10,000 punishable by up to 10 years in prison. The bill also increases penalties for construction industry employers who knowingly misclassify workers as independent contractors.  

Shekarchi on Friday said housing remains his “top priority” for the next legislative session. 

Christopher Allen is a PBN staff writer. You may contact him at Allen@pbn.com.

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