Budget Approved, Minimum Wage Raised: This Week at the State House

Sunday, June 28, 2015

 

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The state budget was approved, minimum wage for tipped workers was raised and much more. Here is what happened this week at the State House.

General Assembly approves 2016 state budget

The General Assembly approved and sent to the governor an $8.7 billion state budget bill that eliminates state income tax on Social Security benefits for many Rhode Islanders, does away with taxes on utilities for businesses, includes economic and jobs development initiatives and provides funding for school construction and greater tax relief for lower-income families. The plan includes no broad-based tax increases, fully funds the education aid formula and includes Gov. Gina Raimondo’s structural changes to Medicaid, although with a smaller impact on hospitals and nursing homes. It does not include a recently proposed plan to toll large trucks to pay for highway and bridge repairs.

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Click here to see news release.

Legislators raise minimum wage for tipped workers

The Assembly passed legislation sponsored by Sen. Gayle L. Goldin (D-Dist. 3, Providence) and Rep. Aaron Regunberg (D-Dist. 4, Providence) to increase the minimum wage for tipped workers in Rhode Island by $1 over the next two years. Under the bill, which will now be forwarded to the governor, the minimum hourly base rate for tipped workers would rise from $2.89 to $3.39 on Jan. 1, 2016, and to $3.89 on Jan. 1, 2017.

Click here to see news release.

Assembly approves Community-Police Relationship Act

The Assembly approved legislation sponsored by Rep. Joseph S. Almeida (D-Dist. 12, Providence) and Sen. Harold M. Metts (D-Dist. 6, Providence) aimed at improving relations between the community and police. The Comprehensive Community–Police Relationship Act of 2015 will require all police departments to continue to collect data on race at traffic stops and to compile annual reports indicating what action has been taken to address any racial disparities in traffic stops and searches documented in previous reports. The legislation also prohibits “consent searches” of juveniles without reasonable suspicion or probable cause of criminal activity. The bills will now be sent to the governor.

Click here to see news release.
 
Bill banning pregnancy discrimination passes General Assembly

The Rhode Island General Assembly has passed legislation that makes it illegal for employers to discriminate based on pregnancy, childbirth or a related medical condition. The measure now moves to the governor’s office. The Senate bill, introduced by Sen. Hanna M. Gallo (D-Dist. 27, Cranston, West Warwick) and the House version sponsored by Rep. Shelby Maldonado (D-Dist. 56, Central Falls) amends an existing state law that prohibits employers from discriminating against job applicants.

Click here to see news release.
 
General Assembly passes legislation phasing out cesspools

Legislation that would provide for the eventual removal of all cesspools in the state has passed the General Assembly and now moves to the governor’s office. The Senate bill, introduced by Sen. V. Susan Sosnowski (D-Dist. 37, South Kingstown, New Shoreham) and the House version introduced by Rep. Teresa Tanzi (D-Dist. 34, South Kingstown, Narragansett) amend the Rhode Island Cesspool Act of 2007, including replacing individual sewage disposal systems with onsite wastewater treatment systems and would require cesspool removal or replacement upon the transfer of the property where the cesspool is located under certain circumstances.

Click here to see news release.

Bill giving housing priority to homeless veterans passes both houses

The General Assembly has passed legislation that would give homeless veterans an edge when seeking public housing assistance. The Senate bill, which was introduced by Sen. Juan M. Pichardo (D-Dist. 2, Providence), along with the House version, sponsored by Rep. Jan P. Malik (D-Dist. 67, Warren, Barrington), give veterans preference for housing rental subsidy and housing retention assistance by amending the Rhode Island Housing Resource Act.

Click here to see news release.
 
Senate, House pass bills adding PTSD to conditions treatable with marijuana

The Senate voted to approve legislation introduced by Sen. Stephen R. Archambault (D-Dist. 22, Smithfield, North Providence, Johnston) that would add post traumatic stress disorder to the list of conditions that may be treated with medical marijuana.  The House passed similar legislation that was introduced by Rep. Scott A. Slater (D-Dist. 10, Providence).

Click here to see news release.

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Sen. Leonidas P. Raptakis

Sen. Raptakis, Rep. Serpa murder/parole bill passes legislature

The Rhode Island General Assembly passed legislation that requires individuals convicted of murder to serve at least 50 percent of their prison sentences behind bars before being eligible for parole.  The legislation was sponsored by Sen. Leonidas P. Raptakis (D-Dist. 33, Coventry, East Greenwich, West Greenwich) and Rep. Patricia A. Serpa (D-Dist 27, West Warwick, Coventry, Warwick).

Click here to see news release.

Legislation naming state insect heads to governor’s desk

Legislation designating the endangered American burying beetle Rhode Island’s official state insect — a bill initiated by third graders at St. Michael’s Country Day School in Newport — passed the General Assembly and is now headed to the governor. Rep. Lauren Carson (D-Dist. 75, Newport) and Sen. V. Susan Sosnowski (D-Dist. 37, South Kingstown, New Shoreham) introduced the legislation at the request of the students who discovered earlier this year that Rhode Island is one of only four states without a state insect. The beetle was once found in many eastern states but now exists only on Block Island and in five states west of the Mississippi River.

Click here to see news release.
 
Ruggerio, DeSimone, Providence will work to develop I-195 accord

Senate Majority Leader Dominick J. Ruggerio (D-Dist. 4, North Providence, Providence), House Majority Leader John J. DeSimone (D-Dist. 5, Providence) and the City of Providence announced that they will work together to develop a tax stabilization agreement, or TSA, for companies that locate in the I-195 Redevelopment District.

Click here to see news release.

 

Related Slideshow: FY 2016 House Budget Winners and Losers

The 2016 Fiscal Year House Budget has some significant winners and losers. The budget passed on Tuesday night by the House Finance Committee now goes to the full House.

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Winner

All Day Kindergarten

The new law of the land will make all-day kindergarten the standard for both wealthy communities and economically under-performing.

This was a campaign promise of Governor Gina Raimondo and has long been advocated by education reform advocates.

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Loser

Superman Building and Job Creation in Providence

The effort to rehab the vacant Superman building and lure Citizens Bank to relocate's post-IPO corporate HQ to the City of Providence's Financial District took a big hit with the House Budget capping the real estate tax credit at $15 million per project.

Will this spark Citizens to move to Boston or Hartford?

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Loser

Regional Tourism Councils

The budget strips the regional tourism councils of their state funding and consolidates the dollars at the state level with the Commerce Corp. For Discover Newport and Providence-Warwick Convention and Visitor's Bureau will take massive budget cuts (as will the smaller regional groups).

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Winner

HealthSource

Rhode Island's Obamacare state health exchange looked dead back in January. Speaker Mattiello hinted that he wanted to disband the new structure, but like Houdini the health insurance program received funding from a new employer tax and state funding.

HealthSource lives.

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Winner

Small Businesses

The House budget reduces the corporate minimum tax from $500 to $450, making Rhode Island "now between Massachusetts and Connecticut," said Mattiello.  

The Finance Committee also sped up the Raimondo’s proposal to phase out the sales tax that all nonmanufacturing businesses pay on their electric, natural gas and heating fuel bills. The original proposal would have phased out the tax over a five-year period, but the committee chose to eliminate the tax all in one year. The cost to the state will be $20 million in FY 2016 instead of $4.9 million as originally proposed.

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Winner

Working Families

The Earned Income Tax Credit was increased to 12% from 10.5% of the federal poverty level.  . 

The issues was a major focal point of the Economic Progress Institute.

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Winner

195 Commission

Governor's Raimondo got her wish for  $25 million to develop 195 land in Providence as it was fully funded. This is a win for the new Governor and her newly appointed members of the Commission.

This funding will allow the Commission the flexibility to support proposed projects and potential tenants.

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Loser

Smokers

The budget raises the per pack tax by $0.25. The tax is now $3.75 per pack and it is anticipated to generate $7.1 million in new revenue.

Rhode Island's tax will be the second highest in the United States - behind only New York.

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Loser

Budget Process

Despite promises by Governor Raimondo and Speaker Mattiello, the budget process is as cloaked and chaotic as ever.

Documents not printed.

Lack of commitment to timelines.

Little opportunity for review and discuss.

The salvation was the budget bill has the full support of both Democrats and Republicans on the House Finance Committee.

 
 

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