PROVIDENCE – The Senate on Tuesday approved a $15.2 billion state budget plan for fiscal year 2027 by a 32-6 vote, including a phased-in wealth tax and funding for an inspector general’s office.
The tax-and-spending package was approved by the Senate Finance Committee on June 8.
Senate Finance Committee Chairman Louis P. DiPalma, D-Middletown, said the budget “addresses significant challenges facing the state and its people while also offering the immediate support and services that Rhode Islanders need during these fiscally uncertain times.”
A roughly $900 million increase from the previous year and $344 million more than Gov. Daniel J. 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 opted for a three-year phase in of the tax, beginning with 6.99% in the next fiscal 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.
“This budget reflects our strong commitment to bettering the lives of Rhode Islanders, “ said Senate President Valarie J. Lawson
The assembly also 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.
The inspector general’s office, proposed by House Speaker Christopher Blazejewski, D-Providence, will be tasked curbing tax-dollar waste. It does not include oversight of the General Assembly and the court system.
It remains unclear if or when Gov. Daniel J. McKee planned to sign the budget into law. Last year, he opted not to sign nor veto the $14.3 billion plan, citing hikes to taxes and fees.
“At this moment in time there wasn’t a need to raise taxes on anyone,” he said at the time. “This is a budget I’m not going to sign. This is a bad budget.”
Other items included in the budget:
- 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
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
what a bunch of fiscally irresponsible [people].. They have run this state into the ground. Not a single one of them that voted for that budget has any respect for the middle class or a dollar!!!
FIRE THEM ALL!!!