Home Economy RIPEC: State may need to reprioritize spending

RIPEC: State may need to reprioritize spending

By

Christopher Allen

-

10/20/2025

IN ITS ANALYSIS of expenditures in fiscal 2023, the Rhode Island Public Expenditure Council said state spending on administrative costs was the highest in the nation per capita.

PROVIDENCE – When it comes to where government resources are directed, Rhode Island has some bad habits, according to a report released Monday by the Rhode Island Public Expenditure Council According to “How Rhode Island Compares: State and Local Taxing and Spending,” Rhode Island spends more on general government administration – including expenditures on legislative

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PROVIDENCE – When it comes to where government resources are directed, Rhode Island has some bad habits, according to a report released Monday by the Rhode Island Public Expenditure Council According to “How Rhode Island Compares: State and Local Taxing and Spending,” Rhode Island spends more on general government administration – including expenditures on legislative and government agencies – than any other state both on a per capita and personal income basis. Overall spending on government administration was $1,059 per person in 2023, ranking the state 5th per capita and 4th for personal income. In terms of total expenditures, Rhode Island spends $14,375 per person, placing it 17th in both per capita and personal income rankings. And heavy investments in public safety makes it a “national outlier,” with expenditures of $1,276 per person, 1.4 times greater than the New England average, according to RIPEC. Spending on police and fire services placed Rhode Island 5th and 3rd per capita, respectively, while spending on corrections jumped about 10 places from 2018 to 14th, rising 35.4% on a per capita basis over five years, despite the state having one of the lowest incarceration rates in the country. And yet, the state is in the bottom 10 in categories such as higher education, 44th, and parks and recreation, 49th. “Targeted government investment can help spur economic development” said Michael DiBiase, CEO and president of RIPEC. “But questions remain about the efficiency of spending at this level and what residents are receiving in return.” On the revenue side, state and local taxes combined amounted to $6,879 per person, placing Rhode Island 20th per capita and 18th by income, down from 13th and 12th in 2018. As the state faces lagging revenue growth and continues to rank among the higher-spending and higher-taxed states in the nation, "policymakers will need to focus their energy on controlling spending and promoting competitiveness and economic opportunity in the Ocean State,” said DiBiase. “Understanding where we overtax and overspend relative to other states is an important starting point in that effort.” “Policymakers should be asking why we are markedly outspending not only the nation but also other New England states in areas like public safety and government administration,” he added. An August report from RIPEC gave similar warnings that the Rhode Island state government is spending at a level that is "not sustainable." In that analysis, state spending had grown by 10.9% over the last two fiscal years, while state revenue grew by 6.4% during that time. Christopher Allen is a staff writer for PBN and can be reached at Allen@PBN.com