McKee’s Budget - No Tax or Fee Increases, $167M for Slater Hospital Over 7 Years
Thursday, January 20, 2022
Rhode Island Governor Dan McKee has released his proposed budget for the 2022-2023 fiscal year — a total of $12.8 billion in spending.
The budget is bolstered for the second year with massive federal pandemic dollars — creating a never-before-seen influx of discretionary funds.
There are hundreds of millions going to the cities and towns. American Rescue Plan Act (ARPA) spending by the state totals $1.1 billion and the state has an estimated $600 million surplus.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn addition, there are other pots of federal monies that still have not been fully spent.
Included in the budget is $167.8 million in spending on the Eleanor Slater Hospital over the next seven years.
The state projects a current year (FY 2022) surplus of $618.4 million, and McKee recommends transferring $210 million to the Rhode Island Capital Plan Fund to support improvements to Eleanor Slater and other state facilities.
The funding would provide for a new medical facility, upgrades to existing buildings and the development of a long-awaited electronic medical records system.
“Eleanor Slater Hospital takes care of some of our state’s most vulnerable residents,” said McKee. “It’s long past time to make meaningful investments that will provide higher quality care for the patients, better conditions for the staff, and tackle decades of deferred maintenance. I look forward to working with the General Assembly to get this done.”
Slater Plan Draws Support From One GOP Leader
Senate Minority Whip Jessica de la Cruz (R-Dist. 23, Burrillville, Glocester, North Smithfield) said she supports the McKee plan for Slater.
“Our first—and most important—responsibility is to help people who cannot help themselves,” de la Cruz said. “It is such a relief that [Zambarano] patients and their families will finally get the desperately-needed repairs to this beloved facility. Under this proposal, more than $108 million will be allocated to build a new facility on the Burrillville campus by 2028 and millions more for necessary updates.”
“This is a huge win for the patients, their families, and the State of Rhode Island,” she said. “This isn’t just a band-aid fix—the improvements we will be making will benefit generations of Rhode Islanders to come. This is a great start in strengthening our infrastructure to support our most vulnerable people.”
“The significance of these investments cannot be overstated,” said Richard Charest, Director of the Department of Behavioral Healthcare, Developmental Disabilities and Hospitals and CEO of Eleanor Slater Hospital. “These projects will better position the hospital to carry out its mission to care for Rhode Islanders who require our services for long-term medical and psychiatric conditions, and they will help our staff as they perform this work. We are grateful for the Governor’s support.”
The largest single investment – $108.2 million – will fund a new medical facility on the Zambarano Campus, with more than 100 beds tailored to meet the needs of the patients already served at the facility, as well as for services with limited availability in the state and for specialized populations. The new structure will succeed the Beazley Building as the medical facility on the Zambarano Campus in Burrillville, providing a "modern and cost-efficient facility at which the hospital will care for patients with long-term medical needs," says McKee.
The budget also invests $14.3 million at the Burrillville campus for repairs and upgrades to buildings, equipment, and utilities. This multi-year project, according to McKee, will "ensure the reliability of infrastructure on the campus, including the water distribution, wastewater treatment, and sewer systems." A further $3.2 million funds the installation of a ventilator unit at the Beazley Building to better treat patients with specialized needs.
At Eleanor Slater’s Cranston campus, the Governor’s budget recommends $19.7 million from existing debt proceeds for life and safety improvements at the Regan building.
Critics Want Budget to Include Funding to Address Hunger
Dr. Amy Nunn -- health advocate says more needs to be done to addressed food insecurity. PHOTO: File
Dr. Amy Nunn, Executive Director of the Rhode Island Public Health Institute -- on behalf of the Nourish Rhode Island coalition comprised of 40 plus community groups -- decried the lack of funding.
Nunn said in a statement, “At a time when one in four Rhode Island families with children are going hungry, we are disappointed that Governor McKee’s budget proposal does not include measures to specifically address the state’s hunger crisis.
"We recommended an allocation of federal funding, secured through the American Rescue Plan Act and earmarked to respond to immediate needs, to pilot a statewide Retail SNAP Incentive Program, which would provide SNAP beneficiaries across the state with a 50% discount on fresh fruits and vegetables," she added. "This is a ready-to-implement plan that would require no tax increases and make an immediate impact in Rhode Island. It would help tens of thousands of families in need put healthy food on their tables, and support the local economy by boosting sales at local grocery markets.
"Addressing the hunger crisis in Rhode Island cannot wait. This is a problem that has been exacerbated by the COVID-19 pandemic, and it’s one that is disproportionately impacting communities of color, the elderly and children across the state," she added.
Cities and Towns: Marijuana Legalization Also Needs to Be Addressed
In McKee's budget, he includes the legalization of marijuana in Rhode Island -- which drew the concern of the Rhode Island League of Cities and Towns.
In his budget, McKee recommends creating a "strictly regulated legal market for adult-use cannabis in the state.'
This proposal would create a weight-based excise tax on marijuana cultivation, an additional retail excise tax of 10 percent, and also apply sales tax to cannabis transactions. The proposal allocates 25 percent of these revenues (along with licensing fee revenue) to the regulatory, public health, and public safety costs associated with adult-use cannabis. An additional 15 percent of these revenues are allocated to cities and towns. This revenue proposal mirrors the Governor’s prior recommended budget.
Adult-use cannabis sales are expected to start in April 2023, according to the McKee administration, who states "even the limited sales revenue in FY 2023, the share of revenue devoted to state expenditures is temporarily increased to 89 percent in FY 2023. This is expected to yield $8.0 million in restricted receipt revenue in FY 2023, much of it to support regulatory oversight at the Department of Business Regulation, Department of Health, and Division of Taxation."
"This revenue also supports various public health and safety needs, including a $1.1 million investment dedicated to equity zones, $0.5 million in funding for local police, and $0.3 million to help the state oversee prevention and treatment programs. Beyond the portion dedicated to state expenditures, the proposal will result in $1.2 million in general revenue in FY 2023. General revenues increase to $16.9 million with a full year of sales in FY 2024," the budget proposal continues.
“The League of Cities and Towns appreciates the Governor’s commitment to municipalities and the work we are doing locally, particularly as we continue to address new challenges presented by the COVID-19 pandemic," said North Providence Mayor and League President Charles Lombardi on Thursday.
"While cities and towns have seen an influx of federal aid to support our economic recovery from COVID-19, we are glad to see stable levels of local and education aid in this budget. This will ensure that cities and towns can maintain core municipal operations while investing one-time Federal funds in necessary capital improvements," said Lombardi. "We look forward to reviewing the modifications, which will smooth fluctuations in enrollment as a result of the pandemic."
"As we look to strengthen our state and local economy, we support reforms to the tangible property tax, which burdens small businesses. The Governor also recognized the need for communities to define their own revenue streams," he added. "While we recognize the revenue potential of marijuana, there are many considerations for municipalities, including local approvals and public safety that will need to be discussed further. As legalization of marijuana will have long-term impacts on cities and towns, the League will continue to advocate that local communities have control no matter what decisions are reached regarding implementation."
Lombardi also spoke to McKee's housing proposal.
"The Governor’s housing proposal is a positive first step to tackling the existing crisis. Increasing the housing stock, with investments in infrastructure to support this new development, will open new opportunities for Rhode Island families," said Lombardi.
COVID Business Relief and More
McKee's budget proposal includes $180 million for aid to small businesses and pandemic-hit industries, including $45 million for grants to small businesses and $47 million for the Rhode Island Convention Center.
Also contained in the budget proposal is $152 million for ongoing spending related to the COVID-19 pandemic for testing and vaccinations and $50 million to health care facilities.
The budget proposal includes $118 million for children, families and early education, which includes $15 million for eleven proposed Municipal Learning Centers.
Read the full budget proposal overview here.
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