WPRO
The House Finance Committee voted unanimously to approve an $8.67 billion Fiscal Year 2016 budget late Tuesday night which includes the I-195 redevelopment fund, school construction spending, and the newly approved pension settlement.
The budget was revised upward from Governor Gina Raimondo’s original proposal, bringing the total up to $8,665,300,000. As previously reported, the new funds were made possible by a growth in General Revenues, totaling $61.3 million. However, federal revenues dropped $56.9 million; bringing the total revenue increase to $37.7 million.
“This is a pro-economy, pro-business budget,which will serve as a catalyst for existing businesses and help attratc new businesses to the state of Rhode Island,” said House Speaker Nicholas Mattiello.
The budget includes $20 million in school construction spending, with an additional $1.4 million for all-day kindergarten expansion for seven communities. $5 million has been restored to school transportation which the Governor originally cut; the cuts focused on busing assistance to private and parochial schools.
Critics of the infamous “Taylor Swift tax” and tractor trailer tolls can rest easy for now, as the former is dropped from the budget and the latter is placed on hold; although a special session may be called for on the tolling proposal. And as expected, the PawSox stadium proposal is also absent.
The budget also eliminates the sales tax on manufacturers; a move Raimondo proposed phasing out over five years.
Rhode Island’s eight tourism bureaus will be taking a hit, as the State Government cuts funding to better focus on marketing the state as a whole.
Additional cuts to state personnel will bring costs down from $22 million to $5 million.
As it stands, the only new taxes are an additional $0.25 to the cigarette tax.
The budget will go before the entire General Assembly for a marathon voting session Tuesday, next week.
