Rhode Island Faces Budget Approval Amid Uncertain Economic Climate
Budget Balances But Leaves Uncertain Future for State
As the Rhode Island General Assembly draws near to its end, the anticipated approval of a $14.3 billion budget by the House Finance Committee this week signals both continuity and uncertainty. In many respects, this budget could be seen as a step back to the pre-COVID era, but it also acts as a temporary fix, plagued by potential obstacles such as GOP budget priorities in Washington threatening the entire plan. Lawmakers may have to reconvene for an unusual session in the fall, particularly as the state transitions from pandemic-related surpluses to looming annual deficits—it’s more crisis management than anything else, really. While the budget aims to balance out a deficit with various tweaks, including modest tax increases, it notably avoids sweeping tax hikes altogether. House Speaker Joe Shekarchi has pushed for significant investments in healthcare, advancing funds for primary care, hospitals, and nursing homes—yet transit support for RIPTA fails to fully meet its $33 million deficit. Dubbed the ‘Taylor Swift tax’—a reference by former journalist Scott MacKay—an effort to direct more funding into housing could create some buzz. The budget is set for heated discussions on the House floor next Tuesday.
