PROVIDENCE – The R.I. House approved a $12.75 billion budget Wednesday afternoon, one that distributes federal pandemic aid and general fund revenues among existing state programs and services.
Designed as a bridge to the new year, it will cover the remaining six months in fiscal 2021, as well as the previous six months. It covers the federal distribution of $1.25 billion received by the state as pandemic relief aid.
Meeting for the first time as a body since July, the House voted 59-6 on the spending plan after deliberations that spanned about 2.5 hours.
Shortly before the final vote, outgoing House Speaker Nicholas A. Mattiello, D-Cranston, addressed the representatives, thanking them for their service. He did not lead the deliberations, and instead was seated among other representatives, who met for the vote in the Veterans Memorial Auditorium. The session was led by Deputy House Speaker Charlene Lima, D-Cranston.
“These are difficult times,” Mattiello said. “More difficult than I’ve seen in the 14 years I’ve been in the General Assembly. I think this budget is a very good balance in very difficult times. This is a great effort.”
The budget, as recommended by the House Finance Committee Dec. 9, includes $120 million in substitutions for general fund expenditures using federal aid. It does not include new programs, but continues funds for established services and programs, with some deviations from the proposal introduced by Gov. Gina M. Raimondo in January 2020.
It does not include tax or fee increases, according to House leaders. Using $7.2 million, it continues the Rhode Island Promise free tuition program for another class of students, those graduating this spring. It restores funds to cities and towns who had seen cuts under the Raimondo administration this year.
The car tax will continue to be reduced, under the schedule approved by the General Assembly several years ago.
With the House approval, it now moves on to the R.I. Senate, where it is expected to be taken up first by the Senate Finance Committee at 3 p.m. Thursday. The body will meet virtually, given an impending snowstorm. If it authorizes the budget, the full Senate will take up the plan on Friday.
Before the House vote, Rep. Marvin Abney, D-Newport, the House Finance chairman, said he understood that this budget includes one-time revenue from the federal government that came to Rhode Island as a result of the pandemic, and which the House fiscal advisers and leadership said could be used, in part, to substitute for expenses typically funded by the state.
“We are going to have plenty of challenges to confront in next year’s budget,” he said, “so I am thankful we were able to put together a document this year that continues to serve the people of Rhode Island without raising taxes or cutting crucial services to our residents.”
House Republicans tried several times, unsuccessfully, to amend the spending plan to incorporate new ideas. Their amendments were not approved.
One amendment would have diverted federal funds for small business from the oversight of the Raimondo administration to a small-business advocacy council, which representatives said would provide relief more directly and efficiently. The council is not a department of the state, as opponents pointed out.
Rep. David Place, R-Burrillville, said the substitution was necessary. “For nine months, we sat on our hands and we did nothing for small business,” he said.
The House also approved a list of seven questions proposing $400 million in bonds, which will be put before voters in a special election in March. The questions include $107 million for higher education spending, $15 million for water improvement and $6 million for a dredging of the Providence River.
The bond questions will be put before voters on March 2.
The budget also provides a six-month extension on incentive programs administered through the R.I. Commerce Corp., which were expected to expire or “sunset” at the end of the year. The various R.I. Commerce economic-development initiatives will receive a total of $165.2 million in the budget, including $22.5 million in general fund support for Rebuild Rhode Island tax credits, which have helped developers build new structures and renovate historical buildings.
The Wavemaker Fellowship, designed to keep talented young graduates in the state, will receive $1.2 million more in funds.
Mary MacDonald is a staff writer for the PBN. Contact her at MacDonald@PBN.com.
