Rhode Island Senate Bill S2862

Rhode Island 2022 Regular Session

• Introduced: 4/5/22
• Refer: 4/5/22
• Report Pass: 4/13/22
• Engrossed: 4/26/22
• Refer: 4/27/22

Caption

State Funds

Impact

The implications of this bill on state laws are significant as it modifies how state authorities handle revenues collected through restricted accounts. By explicitly outlining which accounts are exempt from cost recoveries, the bill aims to protect funding sources that are vital for essential services, such as healthcare and veterans' assistance. Moreover, it sets a clear framework for the treatment of organizational contributions and federal aid, impacting the funding dynamics of state-administered programs and services across various departments.

Summary

Bill S2862 addresses amendments to the state laws regarding public finance, specifically targeting the management of state funds and indirect cost recoveries from restricted receipt accounts. The legislation stipulates that a standard indirect cost recovery rate of ten percent should be applied to all restricted receipt accounts, which includes various funds sourced from contributions or grants. However, it also delineates exceptions to this recovery rate for certain accounts, notably those associated with nonprofit charitable organizations and federal funds, ensuring that funds directly benefiting specific programs are safeguarded from these indirect charges.

Contention

Discussions surrounding S2862 reveal points of contention particularly regarding the extent of indirect cost recoveries. Advocates argue that exempting certain accounts from these recoveries promotes better funding retention for programs aimed at vulnerable demographics, including healthcare and veteran services. Conversely, critics may express concerns regarding the potential imbalance created by preferential treatment of certain accounts, suggesting that it could limit the overall revenue available for state budget allocations. The tension between maintaining necessary funding for key programs versus the need for a more uniform approach to state finances presents a critical area for legislative debate.