Massachusetts, New Hampshire and Texas are holding elections next week. Find out what's on your ballot in our latest report.

Rhode Island state budget and finances

From Ballotpedia
(Redirected from Rhode Island state budget)
Jump to: navigation, search

Rhode Island budget and finances
Policypedia Budget Policy-logo-no background.png
General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Gina Raimondo
Financial figures
Total spending (state and federal funds):
$7.8 billion (estimated for 2014)
Per capita spending:
$7,394.05 (estimated for 2014)
Total state tax collections:
$2.9 billion (2013)
Per capita tax collections:
$2,791.50 (2013)
State debt:
$18.9 billion (as of 2014)
Per capita state debt:
$17,960 (as of 2014)
State budgets and finances
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Horizontal-Policypedia logo-color.png
Total state expendituresState debtTax policy in Rhode Island
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.

Between fiscal years 2013 and 2014, total government spending in Rhode Island increased by approximately $100 million, from $7.7 billion in fiscal year 2013 to an estimated $7.8 billion in 2014. This represents a 1.2 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Rhode Island a AA credit rating.[1][2][3]

Federal aid accounted for approximately 34 percent of Rhode Island's general revenues in 2012.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Rhode Island in fiscal year 2014, total estimated government spending equaled $7.8 billion.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Rhode Island $5,259 $2,543 $7,802 1,055,173 $7,394.05
Connecticut $20,938 $5,501 $26,439 3,596,677 $7,350.95
Massachusetts $41,752 $15,135 $56,887 6,745,408 $8,433.44
New Hampshire $3,375 $1,703 $5,078 1,326,813 $3,827.22
Vermont $3,382 $1,771 $5,153 626,562 $8,224.25
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013.
Source: National Association of State Budget Officers

State spending in Rhode Island can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.[3]

In Rhode Island in fiscal year 2013, higher education accounted for 13 percent of total expenditures, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Rhode Island 14.9% 13% 1.4% 24.8% 2.6% 6.3% 37%
Connecticut 14.1% 10.6% 1.4% 21.8% 2.3% 9.7% 40.2%
Massachusetts 11.2% 10.1% 2.7% 18.7% 2.3% 6.6% 48.5%
New Hampshire 23.4% 2.2% 1.7% 25.6% 2% 10% 35%
Vermont 32% 1.8% 2.3% 28.3% 2.9% 10.9% 21.7%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the Rhode Island state budget spent on higher education increased from 3.3 percent to 13 percent.[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percents)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 14.9% 13% 1.4% 24.8% 2.6% 6.3% 37%
2012 14.2% 13.2% 1.4% 25.0% 2.4% 6.5% 37.4%
2011 14.4% 12.4% 1.4% 25.9% 2.3% 4.9% 38.7%
2010 14.1% 11.8% 1.5% 25.0% 2.2% 5.3% 40.1%
2009 14.9% 3.3% 1.8% 25.8% 2.5% 6.3% 45.3%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "population" and "per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "population" and "per capita revenue" have not been abbreviated).[9]

In Rhode Island in 2013, total state tax collections equaled $2.9 billion. Per capita tax collections totaled $2,792.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Rhode Island $2,331 $1,516,423 $138,518 $1,088,992 $144,310 $49,859 $2,940,433 1,053,354 $2,791.50
Connecticut N/A $6,746,968 $453,112 $7,811,949 $572,628 $551,859 $16,136,516 3,599,341 $4,483.19
Massachusetts $4,795 $7,455,326 $945,922 $12,876,192 $1,888,449 $730,363 $23,901,047 6,708,874 $3,562.60
New Hampshire $400,369 $945,290 $272,852 $99,027 $553,197 $99,368 $2,370,103 1,322,616 $1,791.98
Vermont $971,718 $983,226 $106,509 $663,027 $105,635 $48,815 $2,878,930 626,855 $4,592.66
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Rhode Island tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Rhode Island, sales taxes and gross receipts accounted for 51.6 percent of total state tax collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Rhode Island 0.08% 51.57% 4.71% 37.04% 4.91% 1.70%
Connecticut N/A 41.81% 2.81% 48.41% 3.55% 3.42%
Massachusetts 0.02% 31.19% 3.96% 53.87% 7.90% 3.06%
New Hampshire 16.89% 39.88% 11.51% 4.18% 23.34% 4.19%
Vermont 33.75% 34.15% 3.70% 23.03% 3.67% 1.70%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Rhode Island budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: H 7133

Governor Lincoln Chafee announced his fiscal year 2015 budget proposal on January 15, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $8.5 billion.[10]

On June 19, 2014, Chafee signed into law the fiscal year 2015 budget. The enacted budget totaled $8.7 billion.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Rhode Island had a state debt of approximately $18.9 billion. Its state debt per capita was $17,960. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Rhode Island $18,863,153,000 $17,960 16
Connecticut $112,372,072,000 $31,298 3
Massachusetts $129,550,263,000 $19,493 12
New Hampshire $18,425,567,000 $13,951 27
Vermont $7,866,666,000 $12,566 36
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Rhode Island public pensions and Rhode Island public employee salaries

A 2012 report from the Pew Center on the States noted that Rhode Island's pension system was funded at 49 percent at the close of fiscal year 2010, well below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

The funding ratio for the state's pension system increased from 59.65 percent in fiscal year 2007 to 61.16 percent in fiscal year 2012, an increase of 1.51 percentage points, or 2.5 percent. Likewise, unfunded liabilities decreased from nearly $5 billion in fiscal year 2007 to approximately $4.8 billion in fiscal year 2012.[13][14][15][16]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[17][18]

The table below lists the Standard and Poor's credit ratings for Rhode Island and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[19]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Rhode Island AA AA AA AA AA AA AA AA AA AA AA-
Connecticut AA AA AA AA AA AA AA AA AA AA AA
Massachusetts AA+ AA+ AA+ AA AA AA AA AA AA AA AA-
New Hampshire AA AA AA AA AA AA AA AA AA AA AA
Vermont AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[20]

The table below notes what share of Rhode Island’s general revenues came from the federal government in 2012. That year, Rhode Island received approximately $2.3 billion in federal aid, 33.8 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[20]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Rhode Island $2,310,656 33.76% 23
Connecticut $5,781,844 23.59% 47
Massachusetts $12,920,153 28.80% 36
New Hampshire $1,693,289 29.02% 34
Vermont $1,904,382 34.79% 18
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Rhode Island received $1.03 billion in federal stimulus funding between February 2009 and June 2013.[21]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[22][23]

  1. Budget instruction guidelines are sent to state agencies in July of the year preceding the start of the new fiscal year.
  2. Agencies submit their budget requests to the governor in September and October.
  3. Agency hearings are held in November and December. Public hearings are held in March and April.
  4. The governor submits his or her proposed budget to the state legislature in January.
  5. The legislature typically adopts a budget in June. The fiscal year begins July 1.

In Rhode Island, the governor has no veto authority over the budget.[23]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to pass a balanced budget.[23]

Agencies, offices and committees

The following standing committees in the Rhode Island State Legislature deal with budget and finance matters:

  1. Finance Committee, Rhode Island House of Representatives
  2. Finance Committee, Rhode Island State Senate

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[24] According to the report, Rhode Island received a grade of D+ and a numerical score of 62, indicating that Rhode Island was "lagging" in terms of transparency regarding state spending.[24]

Contact information

Rhode Island Department of Administration - Budget Office
One Capitol Hill, 4th Floor
Providence, Rhode Island 02908
Telephone: 401-222-6300

Budget and finance ballot measures

See also: State and local government budgets, spending and finance on the ballot and List of Rhode Island ballot measures

Ballotpedia has tracked 1 ballot measures relating to state and local budget and financial matters in Rhode Island.

  1. Rhode Island Question 3, Budget Reserve Account Act (2006)

Recent news

This section displays the most recent stories in a Google news search for the term "Rhode + Island + budget"

All stories may not be relevant to this page due to the nature of the search engine.

Rhode Island state budget news feed

  • Loading...

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: Rhode Island," June 18, 2012
  13. Employees' Retirement System of Rhode island, "Actuarial Valuation - June 30, 2012," accessed November 19, 2013
  14. Municipal Employees' Retirement System, "Actuarial Valuation - June 30, 2012," accessed November 19, 2013
  15. State Police Retirement Benefits Trust, "Actuarial Valuation - June 30, 2012," accessed November 19, 2013
  16. Judicial Retirement Benefits Trust, "Actuarial Valuation - June 30, 2012," accessed November 19, 2013
  17. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  18. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  19. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  20. 20.0 20.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  21. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  22. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  23. 23.0 23.1 23.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  24. 24.0 24.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014