State advises departments, cities to prepare for reduced funding

The state's fiscal 2018 budget has been approved./ PBN FILE PHOTO/STEPHANIE ALVAREZ EWENS
The state's fiscal 2018 budget has been approved./ PBN FILE PHOTO/STEPHANIE ALVAREZ EWENS

PROVIDENCE – State budget officials have advised department and agency leaders that the failure of the General Assembly to approve a fiscal 2018 budget will result immediately in reduced funding to many programs.

Cities and towns and school systems will be notified that state aid payments – including Payment in Lieu of Taxes and education funding through the state formula – will be based on last fiscal year’s budget.

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It was not immediately clear how many communities or school districts, or state programs, will receive smaller amounts as a result.

Last week, the Rhode Island House approved a $9.2 billion budget for the fiscal year that began July 1. But the Senate later approved an amended version, one that modified the proposed “car tax” reduction program. The two chambers have not reached a reconciliation on the budget, which is at an impasse. The leaders, Senate President Dominick Ruggerio, D-North Providence, and House Speaker Nicholas A. Mattiello, D-Cranston, have said they have no plans to meet.

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In addition, although a hiring freeze is not in place, the state also will be scrutinizing any requests for new personnel, according to the memo, send Friday to CFOs and director and agency heads by Jonathan Womer, director of the Office of Management and Budget and Thomas A. Mullaney, the state budget officer.

“Budget analysts will be seeking a higher level of justification on all personnel requests and other non-mandatory requests to spend funds,” Womer and Mullaney wrote.

In addition to the impasse on the fiscal 2018 budget, the General Assembly hasn’t approved the supplemental funding budget for fiscal 2017, which was to have added $2.8 million to the enacted budget. And the pending 2018 budget included new revenue enhancements that will be delayed as well, which may impact the spending in the year ahead as well, according to the memo.

“The administration recognizes this could be a difficult process if the FY 2018 budget is not enacted before the end of this month, and we ask for your patience as we navigate potential challenges,” Womer and Mullaney wrote.

Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com. Follow on Twitter @MaryF_MacDonald.

 

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