PROVIDENCE – Higher income and sales tax revenue combined with federal emergency management reimbursements boosted the state’s fiscal 2021 surplus to $332 million as of June 30, according to a preliminary report published Sept. 1 from State Controller Dorothy Pascale.
The surplus exceeds what the R.I. General Assembly previously estimated by about $51 million, and is more than twice the balance for the fiscal 2020 year, the report stated.
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Higher-than-expected revenue from state personal income taxes and sales and use taxes accounted for a combined $124.6 million in excess money for fiscal year 2021. The state coffers also benefited from a $105.4 million reimbursement from the Federal Emergency Management Agency based on expenses from the prior fiscal year.
However, a majority of the surplus, $281.4 million, has already been spoken for under the fiscal 2022 budget adopted by the Legislature and signed by the governor. The preliminary surplus may also change based on Medicaid billing and whether certain costs from the current fiscal year can be reimbursed by FEMA, the report stated. How much either the reimbursements or Medicaid billing could affect the surplus is “not estimable at this time,” Pascale wrote.
The preliminary report does not include any of the $1.1 billion in federal stimulus funds the state received under the American Rescue Plan Act.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
