Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0863

Introduced
3/30/23  

Caption

State Funds

Impact

If passed, this bill would enact significant changes in public finance related to state funds, particularly in how certain state revenue is distributed to municipalities. The state will remit 25% of the income taxes collected from new employees in specified institutions to Providence. This allocation intends to alleviate potential funding burdens on the city due to rising operational demands associated with growth in healthcare and educational employment. By formalizing this financial structure, the legislation seeks to ensure that local governance can maintain public services amidst changing local economic conditions.

Summary

Bill S0863 proposes a modification to the state funds allocation by enabling the city of Providence to receive a portion of state income taxes generated from new employees in not-for-profit healthcare institutions and private educational organizations. The bill emphasizes support for the growth of these sectors by providing financial assistance that aims to ease the fiscal impact on the city as it accommodates increasing employment in these critical areas. The specified percentage of state income taxes allocated to Providence is intended to promote public welfare and community development through health and education sectors.

Contention

Opponents of this bill may express concerns regarding the reliability of income tax revenue from the specified sectors, as these can fluctuate based on economic conditions and employment rates. Additionally, debates may arise around prioritizing funding to Providence over other municipalities, which could lead to disparities in revenue allocation across the state. Supporters argue that strengthening the financial foundation for education and healthcare is paramount, while critics could highlight that reliance on volatile sources could threaten budget stability in the long term.

Companion Bills

No companion bills found.

Previously Filed As

RI H6004

State Funds

RI S2747

Allocates, to the cities and towns of the state, a portion of state income taxes for new employees of not-for-profit healthcare institutions and private educational institutions.

RI H7403

Allocates, to the cities and towns of the state, a portion of state income taxes for new employees of not-for-profit healthcare institutions and private educational institutions.

RI H6222

State Aid

RI SB229

School funding; creating the Redbud School funding Act; marijuana retail sales; funding for redbud school grants; funding; charter schools; State Aid. Emergency.

RI S2025

Appropriates $56,635,803,000 in State funds and $27,501,993,844 in federal funds for the State budget for fiscal year 2025.

RI S2026

Appropriates $58,782,119,000 in State funds and $31,007,261,743 in federal funds for the State budget for fiscal year 2026.

RI A5800

Appropriates $58,782,119,000 in State funds and $31,007,261,743 in federal funds for the State budget for fiscal year 2026.

RI A4700

Appropriates $56,635,803,000 in State funds and $27,501,993,844 in federal funds for the State budget for fiscal year 2025.

RI HB2

Relative to state fees, funds, revenues, and expenditures.

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