PROVIDENCE – Rhode Island’s elected leaders were projecting a budget gap of more than $800 million in May due to the economic shock of the coronavirus pandemic, and that figure has now shrunken down to a $114 million deficit, according to a report released Monday night.
The updated deficit was estimated in a financial report for the first quarter of the 2021 fiscal year released by Jonathan Womer, the director of the R.I. Office of Management & Budget.
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Prior to the election, the state budget, which is typically passed before the fiscal year begins in July, was delayed during the peak of the state’s shutdown due to the uncertainty of the impact that the coronavirus would have on the economy.
Since election day, longtime R.I. House Speaker Nicolas A. Mattiello has conceded to his Republican challenger in his reelection bid, and House Democrats overwhelmingly backed Majority Leader Joe Shekarchi, of Warwick, to take over as speaker just a day later.
Mattiello’s former No. 2 told PBN earlier this month that his first goal as speaker would be to work on balancing the long-anticipated budget.
Spokesman Larry Berman said the new House leaders are in the process of meeting with Gov. Gina M. Raimondo and state Senate leaders about finalizing the budget.
“It is looking more like it may be under consideration in December, not November,” said Berman.
In the first few months of the pandemic, Raimondo said she was hoping that “Congress would do the right thing” and pass additional relief for states. However, a second stimulus was never passed, as Rhode Island chips away at its $1.25 billion in CARES Act funds with a deadline of Dec. 30.
Other than the one-time payment, Rhode Island is expecting to receive about $212.1 million in reimbursement from the Federal Emergency Management Agency for expenses eligible under the Stafford Disaster Relief and Emergency Assistance Act, and an additional $195.2 million in various smaller federal grants delivered through the CARES Act and other sources. That brings total federal revenue dedicated to pandemic relief to almost $1.66 billion, according to the report.
Monday’s report also outlined that the estimate of post-Dec. 30 pandemic response costs remains subject to change because of Rhode Island’s intense second wave of coronavirus cases. Testing, contact tracing, case investigations, alternative field hospitals, supplies, a vaccine campaign, pandemic-related inspections on businesses and gatherings and critical cleaning will all likely continue past the end-of-the-year deadline.
“The possibility remains open that the federal government will enact additional relief or flexibility,” read the report.
As previously reported, some state officials are hoping the Dec. 30 deadline is extended for at least another 30 days.
OMB projects that continuing the public health measures that Rhode Island has carried out throughout the pandemic so far would require an additional $171.3 million in general revenue in the second half of the current fiscal year if both the Stafford Act and coronavirus relief funds expire on Dec. 30.
Alexa Gagosz is a PBN staff writer. Contact her at Gagosz@PBN.com. You may also follow her on Twitter at @AlexaGagosz.
