Rhode Island state budget (2012-2013)

Note: This article was last updated in 2013. Click here for more recent information on state budgets and finances.

Gov. Lincoln Chafee signed the $8.1 billion fiscal year 2013 state budget into law on June 15, 2012. The budget as enacted can be accessed here (dead link).

Due to improved revenue projections, the final budget included fewer tax increases than the governor had initially proposed. The budget did increase taxes on cigarettes and expanded the state's seven percent sales tax to new items, including clothing over $250, pet grooming services and taxi and limousine rides. Rhode Island faced a budget deficit in fiscal year 2013 of $120 million.

The fiscal year 2013 budget increased spending by $400 million from the $7.7 billion fiscal year 2011 budget.

Legislative proposed budget

The Senate passed the $8.1 billion budget on June 11, 2012. Amendments rejected by the Senate included a proposal requiring state lawmakers to pay a 25 percent co-share for their health insurance and taking money from the General Assembly's controversial legislative grants program.

The House approved its version of the budget on June 8, 2012. The Senate approved the budget with a vote of 30-7 on June 11, 2012, and sent it to Gov. Chafee. Highlights of the budget included:

• Increasing the cigarette tax;
• Adding tolls to the Sakonnet River bridge;
• Applying the state's seven percent sales tax to pet grooming services, taxi and limousine rides, charter buses and footwear and clothing that costs more than $250.

The tax extension was expected to generate $10.4 million in revenue.

On May 31, 2012, the House Finance Committee approved a proposed $8.1 billion state budget. Highlights of the legislative budget included:

• Tens of millions of new school aid dollars to the cities and towns;
• Increasing the taxes on cigarettes by four cents to $3.50;
• Applying the state's seven percent sales tax, for the first time, on clothing and footwear costing more than $250, car washes, pet grooming, and taxi and limousine services.

Governor's proposed budget

Gov. Lincoln Chafee proposed a $7.9 billion state budget as part of the State of the State address he delivered on January 31, 2012. In his budget, the governor eliminated the exemption on taxes on clothing and footwear items. Other taxes he planned to raise included:

• Upping the cigarette excise tax by four cents to $3.50 per pack;
• Meal and beverage taxes would be increased from one percent to three percent, generating a projected $39.5 million, to be devoted to the school funding formula;
• Expanding the lodging tax base, to include rentals of vacation homes and rooms in bed and breakfasts which have fewer than three bedrooms to rent;
• Eliminating Election Day as a state employee holiday;
• Ending dental services provided to adult Medicaid recipients.