Rhode Island House Finance Committee Approves $13.9B Budget for FY 2025
The Rhode Island House Finance Committee has given its approval to a $13.947 billion state budget for fiscal year 2025. The budget reflects an increase in education and children’s program funding, higher Medicaid reimbursement rates, and includes a record $120 million affordable housing bond.
On the education front, the budget provides a $70.9 million increase in state aid to help schools still recovering from pandemic impacts. It also allocates additional support for multi-language learners, after-school programs, and efforts to boost reading and math achievement scores. For higher education, it funds new capital projects at URI and RIC while continuing the Rhode Island Promise and Hope scholarship programs for free community college tuition. The budget fully funds a plan to raise Medicaid reimbursement rates for providers by over $160 million. It also adds $30.6 million to increase rates for providers contracted by the Department of Children, Youth and Families.
A highlight is the $120 million affordable housing bond proposed for the November ballot – the largest such bond in state history. The funds would support affordable housing creation, revitalization, homeownership programs and more. Other investments include $83.6 million for the Washington Bridge reconstruction project, $5 million in municipal grants for road and bridge work, and $15 million to cover RIPTA’s budget gap. The budget provides a 20% raise in cash benefits for recipients of the RI Works program and raises income limits for child care assistance.
On the revenue side, it increases the pension income tax exemption and restores full cost-of-living adjustments for certain retirees. It also adds $13 million for open space/farmland preservation efforts and a new $10 million bond for arts infrastructure projects.
The $13.947 billion budget now heads to the full House floor for consideration on June 7th. Legislative leaders touted the budget as prioritizing education, affordable housing, and supporting families while maintaining fiscal responsibility. Check out the details HERE.
