Budget surpluses and Rescue Plan funds present rare opportunity for long-term investment
Issued By The Economic Progress Institute:
The Economic Progress Institute today released an analysis of Rhode Island Governor Dan Mckee’s proposed FY2024 budget and revised FY2023 budget. The budget analysis summarizes policy proposals and spending recommendations of particular relevance to low-income and modest-income Rhode Islanders. Governor McKee released his proposed $13.75 billion budget for FY2024 (July 1, 2023 through June 30, 2024) on January 19, as well as his revised budget for FY2023, which ends on June 30, 2023.
“The state budget is ultimately a reflection of our values as Rhode Islanders,” said Weayonnoh Nelson-Davies, Executive Director of The Economic Progress Institute. “With the once in a generation budget surplus and rescue plan funds, we have the opportunity to make transformational investments in children, housing, and the people of Rhode Island. As budget negotiations continue throughout the spring, our elected leaders must be thoughtful in how we use this opportunity for Rhode Island.”
The proposed budget is a comprehensive revenue and spending plan for the State of Rhode Island. Revenue sources include General Revenues, Federal Funds, Other Funds (revenue similar to the lottery), and Restricted Receipts (targeted revenue for projects like transportation). The proposed FY2024 and revised FY2023 budgets include spending allocations of nearly the entire $1.13 billion American Rescue Plan Act (ARPA) State Fiscal Recovery Funds (SFRF) allocated to Rhode Island.
“The State should be using budget surpluses to invest in Rhode Island programs critical for economic security and prosperity,” said Alan Krinsky, Research and Fiscal Policy Director for The Economic Progress Institute. “If we engage in tax relief, it should be carefully targeted to those who need it most and not to those who are already very well off.”
The EPI summary highlights FY2024 budget proposals that are important to the fiscal health of the state and Rhode Island residents. Highlights in the analysis include Basic Needs, Housing, Child Care, Education (Pre-K through higher education), Workforce Development, Health Care, and Economic Development.
The EPI summary analyzes the proposed revenue and taxation plans which include the creation of an additional state rainy day fund, a sales tax reduction, temporary suspensions of winter-time utility taxes and a planned increase to the motor fuel tax, and reductions to the corporate minimum tax.
The Economic Progress Institute is a non-partisan research and policy organization that works to ensure the economic security of low- and modest-income Rhode Islanders.
Governors-Proposed-Budget-Summary-Economic Progress Institute FY2024
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