By Sam Wroblewski 630wpro.com
Rhode Islanders said ‘yes’ to four bond referenda questions on Tuesday, potentially saddling the state with over $400 million in debt by 2019.
The four questions included $125 million to construct a new college of engineering for the University of Rhode Island, $35 million to fund artistic, cultural, and historic centers, another $35 million to enhance and construct a mass transit hub in downtown Providence, and lastly $53 million in bonds for environmental purposes and Roger Williams Park Zoo.
The combined $248 million with interest could range from $390 to $428 million depending on the state’s fiscal outlook, according to a report by the Rhode Island Public Expenditure Council.
The report states that all four bond questions would cost the city $19,065,051 per year; a hefty sum for a state whose expenditures are projected to outgrow its revenues.
Additionally, the report makes note that RI’s revenue could dip now that neighboring Massachusetts has approved casino projects in two cities. This, in addition to Newport rejecting a bid to allow table game at the faltering Newport Grand, could effectively reduce gambling revenue and make the burden of repaying the bond debt that much greater.
Rhode Islander’s must now hope for a good return on their new investments or risk putting extra strain on the state’s credit card.
