What’s In the Governor’s Budget?
Article 2 – Relating to State Funds
• Under current law, municipal road and bridge projects must be on a priority list to obtain funding under the Municipal and Bridge Revolving Fund. Article 2 proposes to expand the eligibility to projects not on the priority list if the funding sought is to match federal, state, local or other funding. The Article also removes the requirement to obtain voter approval to authorize related debt if the purpose is to meet the match requirement.
• Increases the cost recovery charge applied to restricted receipt accounts from 10% to 15%. State agencies that run programs funded by a restricted receipt account are (unless specifically exempted) permitted to keep 10% of the monies collected to use for administrative purposes. This article allows additional funds to be taken from the restricted receipt accounts for administration. In FY2006, the rate was increased from 7% to 10%. The budget anticipates retaining $6.8 million under this proposal.
• Proposes to keep in the General Fund, $43.3 million that is scheduled to be transferred to the Employees’ Retirement System. This is a one-year only occurrence.
• Creates a restricted receipt account for the Rhode Island State Psychiatric Hospital to receive and spend Medicare Part D pharmacy reimbursements. The Governor believes this will save $144,000 in billing costs.
Article 3 – Government Reform and Reorganization
• Several changes were made to the Cannabis Control Commission in the regulatory arena based on legislation passed in 2022. To review the changes read sections 1 and 4 of Article 3 https://webserver.rilegislature.gov/BillText25/HouseText25/Article-003.pdf
• Eliminates municipal authority to issue licenses for karate and jiu-jitsu instruction
• Expands the authority of the Office of Internal Audit by adding Integrity reviews as well. The office would be responsible for evaluating efficiencies of operations in state agencies, preventing and detecting fraud, waste, abuse, or mismanagement of funds. The Office would have subpoena powers under certain circumstances. The Governor’s budget includes $1.1 million from this program and calls for six new full-time positions to get the work done. It anticipates savings of $6.9 million in the Executive Office of Health and Human Services’ budget related to fraud, waste, and abuse in the Medicaid program.
• Eliminates the paint recycling program starting August 1, 2025. Any funds remaining in the program would go to RI Resource Recovery for an education program.
• Changes the procurement fee structure. Under current law, a fee of 1% is assessed on master price agreements from vendors. Article 3 proposes to assess a .33% fee on all state contracts effective January 1, 2026; and deposit monies collected into a restricted receipt account to support the Division of Purchases.
• Establishes benchmarking and performance standards for state owned facilities in the area of energy and emissions. An annual report of energy usage is required for buildings at least 25,000 square feet starting March 31, 2026. If a building fails to meet established criteria, a corrective action plan must be developed. The Governor recommends using $100,000 from a restricted receipt account for this purpose and calls for one full time employee position to accomplish the task.
• The House Fiscal report on the budget discusses the Governor’s proposal for an “Integrated Data System.” “These sections establish the Rhode Island Integrated Data System “DATA RI” as the state’s central repository of inter-agency, longitudinal, linked, and individual data. The stated goal is to connect data across sectors and to support research aligned with state priorities, inform policymaking and program evaluation, and improve the well-being of all Rhode Islanders. It creates a single board to oversee the Rhode Island Longitudinal Data System, the state education and workforce longitudinal data system, and the Ecosystem, the state’s health and human services integrated data system. The board would be co-chaired by the Commissioner of Postsecondary Education and the Secretary of Health and Human Services. The Governor recommends $0.3 million from restricted receipts and 2.0 new positions in the Office of Postsecondary Commissioner. He also adds 2.0 positions for the Department of Administration’s Division of Enterprise Technology and Services and 2.0 for the Executive Office of Health and Human Services.”
Article 4 – Debt Management Act
• Increases the authorization for revenue bonds for two projects at the University of Rhode Island. The Memorial Union project increases from $57.6 million to $118 million. The Combined Health and Counseling Center increases from $29 million to $33.6 million. The increases are expected to be supported by student fees and retail lease payments.
Article 6 – Economic Development
• Eliminates the requirement to obtain a special local license to open a retail establishment on a holiday (except for Thanksgiving and Christmas).
• Allows customers of health clubs and dating services to cancel services or subscriptions using electronic mail.
• Extends many economic development programs for one year: Rebuild Tax Credit, Tax Increment Financing, Tax Stabilization Incentive, First Wave Closing Fund, I-195 Redevelopment Fund, Wavemaker, Main Street Streetscape, Innovation Initiative, and the Qualified Jobs Tax Credit
• Eliminates the sunset provision for the Small Business Assistance Program thus making it permanent.
The following new bills have been filed:
House Bill No. 5109 Kennedy, Solomon, Edwards, Kazarian, Diaz, AN ACT RELATING TO THE UNIFORM COMMERCIAL CODE -- TRANSITIONAL PROVISIONS FOR UNIFORM COMMERCIAL CODE AMENDMENTS (2022) (Implements technical corrections to the transition rules for transactions governed by 2024 Public Laws Chapters 65 and 66 regarding security interests in emerging technologies.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5109.pdf
House Bill No. 5132 J. Lombardi, Hull, Ajello, Potter, Stewart, Voas, Felix, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- WORKPLACE PSYCHOLOGICAL SAFETY ACT (Prohibits psychological abuse in the workplace by employers or co-workers, ensuring a safe environment for employees, provides protection, civil remedies, and penalties for employers based on revenue.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5132.pdf
House Bill No. 5136 (by request) Casimiro, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES (Gradually increases the minimum wage for employees receiving gratuities between January 1, 2026 through January 1, 2031 to the minimum wage established in § 28-12-3 exclusive of gratuities.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5136.pdf
House Bill No. 5179 Finkelman, AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- JUDGMENTS, ORDERS, AND DECREES (Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5179.pdf
House Bill No. 5187 Corvese, J. Brien, Noret, Azzinaro, DeSimone, Potter, Bennett, Hull, Read, O'Brien, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- LABOR RELATIONS ACT (Expands the definition of "employee". Also modifies how the state's labor relations board operates and aids in enforcement of the board's orders.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H5187.pdf
Senate Bill No. 14 Tikoian, Felag, Ciccone, Burke, Britto, McKenney, LaMountain, Gallo, Murray, Sosnowski, AN ACT RELATING TO HEALTH AND SAFETY -- VEHICLE BARRIERS -- THE CHARLOTTE A. VACCA ACT (Requires commercial property owners to install vehicle barriers at their retail establishment locations when new construction are being done and permits insurers to consider the installation to provide a discount on the owner's insurance policy.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0014.pdf
Senate Bill No. 17 Ujifusa, Ruggerio, Lawson, Tikoian, AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES (Provide that advertising goods that don't include a price referencing all mandatory fees and charges shall be a deceptive trade practice.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0017.pdf
Senate Bill No. 37 Gu, DiMario, Murray, Mack, Kallman, Bissaillon, DiPalma, AN ACT RELATING TO TAXATION -- REAL ESTATE CONVEYANCE TAX (Allows a municipality to set its own conveyance tax rate for residential properties sold in excess of $900,000.00 at $10 per $500. Provides collected taxes to be in a restricted account and distributed within 2 years for affordable housing.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0037.pdf
Senate Bill No. 50 Lauria, Lawson, Pearson, Valverde, DiMario, Kallman, Murray, Felag, Urso, Ujifusa, AN ACT RELATING TO HEALTH AND SAFETY - CATASTROPHIC ILLNESS IN CHILDREN RELIEF FUND (Establishes Children's Catastrophic Illness in Children Relief Fund to provide finance assistance to families for medical expenses not covered by state or federal programs or insurance contract.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0050.pdf
Senate Bill No. 69 Kallman, Ciccone, Thompson, Patalano, Murray, Britto, Lauria, Tikoian, Lawson, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Provides employees with civil administrative remedies against contractors, subcontractors involved in the contract with joint/severable liability imposed on contractors or subcontractors. Effective 9/1/2025.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0069.pdf
Senate Bill No. 70 Acosta, Ciccone, Quezada, Kallman, Vargas, Pearson, Thompson, Mack , AN ACT RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES (Requires employer to furnish items and conditions of employment and a pay stub explaining how wages were calculated/reasons for deductions/allows the employee to file a court action against employer for violation.)
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0070.pdf
