Rhode Island 2023 Regular Session

Rhode Island House Bill H6222 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6222
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7	7	LC002615
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES -- STATE AID
16	16	Introduced By: Representatives Cortvriend, and McGaw
17	17	Date Introduced: March 29, 2023
18	18	Referred To: House Finance
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. The general assembly makes the following findings of fact: 1
23	23	(1) Cities and town across Rhode Island have been struggling with the recent inflationary 2
24	24	environment; 3
25	25	(2) In 2009, the general assembly discontinued revenue sharing due to the economic 4
26	26	collapse; 5
27	27	(3) The removal of general revenue sharing forced the cities and towns to increase property 6
28	28	taxes to make up for this loss in revenue; 7
29	29	(4) The State of Rhode has seen a very strong rebound from the economic crisis brought 8
30	30	on by the COVID pandemic; 9
31	31	(5) During the past two (2) fiscal years, the State of Rhode Island has benefitted from the 10
32	32	economic rebound with $417 and $878 million surpluses, respectively, and an anticipated $600 11
33	33	million surplus for FY 2023; 12
34	34	(6) Reinstating general revenue sharing for all thirty-nine (39) cities and towns will help 13
35	35	reduce the impact of inflation on the citizens of Rhode Island; and 14
36	36	(7) Restoring thirty-nine million dollars ($39,000,000) of general revenue sharing to cities 15
37	37	and towns based on the 2020 census would result in the following allocation and distribution: 16
38	38	City 2020 Census Total Payment 17
39	39	Barrington 17153 $ 600,355 18
40	40	Bristol 22493 $ 787,255 19
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42	42
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44	44	Burrillville 16158 $ 565,530 1
45	45	Central Falls 22583 $ 790,405 2
46	46	Charlestown 7997 $ 279,895 3
47	47	Coventry 35688 $ 1,249,080 4
48	48	Cranston 82934 $ 2,902,690 5
49	49	Cumberland 36405 $ 1,274,175 6
50	50	East Greenwich 14312 $ 500,920 7
51	51	East Providence 47139 $ 1,649,865 8
52	52	Exeter 6460 $ 226,100 9
53	53	Foster 4469 $ 156,415 10
54	54	Glocester 9974 $ 349,090 11
55	55	Hopkinton 8398 $ 293,930 12
56	56	Jamestown 5559 $ 194,565 13
57	57	Johnston 29568 $ 1,034,880 14
58	58	Lincoln 22529 $ 788,515 15
59	59	Little Compton 3616 $ 126,560 16
60	60	Middletown 17075 $ 597,625 17
61	61	Narragansett 14532 $ 508,620 18
62	62	New Shoreham 1410 $ 49,350 19
63	63	Newport 25163 $ 880,705 20
64	64	North Kingstown 27732 $ 970,620 21
65	65	North Providence 34114 $ 1,193,990 22
66	66	North Smithfield 12588 $ 440,580 23
67	67	Pawtucket 75604 $ 2,646,140 24
68	68	Portsmouth 17871 $ 625,485 25
69	69	Providence 190934 $ 6,682,690 26
70	70	Richmond 8020 $ 280,700 27
71	71	Scituate 10384 $ 363,440 28
72	72	Smithfield 22118 $ 774,130 29
73	73	South Kingstown 31931 $ 1,117,585 30
74	74	Tiverton 16359 $ 572,565 31
75	75	Warren 11147 $ 390,145 32
76	76	Warwick 82823 $ 2,898,805 33
77	77	West Greenwich 6528 $ 228,480 34
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81	81	West Warwick 31012 $ 1,085,420 1
82	82	Westerly 23359 $ 817,565 2
83	83	Woonsocket 43240 $ 1,513,400 3
84	84	1097379 $ 38,408,265 4
85	85	SECTION 2. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is 5
86	86	hereby amended to read as follows: 6
87	87	45-13-1. Apportionment of annual appropriation for state aid. 7
88	88	(a) As used in this chapter, the following words and terms have the following meanings: 8
89	89	(1) “Income” means the most recent estimate of per-capita income for a city, town or 9
90	90	county as reported by the United States Department of Commerce, Bureau of the Census. 10
91	91	(2) “Population” means the most recent estimates of population for each city and town as 11
92	92	reported by the United States Department of Commerce, Bureau of the Census. 12
93	93	(3) “Reference year” means the second fiscal year preceding the beginning of the fiscal 13
94	94	year in which the distribution of state aid to cities and towns is made provided however that the 14
95	95	reference year for distributions made in fiscal year 2007-2008 shall be the third fiscal year 15
96	96	preceding the beginning of the fiscal year 2007-2008 and provided further that the reference year 16
97	97	for distributions made in fiscal year 2008-2009 shall be the fourth fiscal year preceding the 17
98	98	beginning of the fiscal year 2008-2009. 18
99	99	(4) “Tax effort” means the total taxes imposed by a city or town for public purposes or the 19
100	100	totals of those taxes for the cities or towns within a county (except employee and employer 20
101	101	assessments and contributions to finance retirement and social insurance systems and other special 21
102	102	assessments for capital outlay) determined by the United States Secretary of Commerce for general 22
103	103	statistical purposes and adjusted to exclude amounts properly allocated to education expenses. 23
104	104	(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, 24
105	105	let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x 25
106	106	income). 26
107	107	The amount to be allocated to the counties shall be apportioned in the ratio of the value of 27
108	108	R for each county divided by the sum of the values of R for all five (5) counties. 28
109	109	The amount to be allocated for all cities and for all towns within a county shall be the 29
110	110	allocation for that county apportioned proportionally to the total tax effort of the towns and cities 30
111	111	in that county. 31
112	112	The amount to be allocated to any city or town is the amount allocated to all cities or all 32
113	113	towns within the county apportioned in the ratio of the value of R for that city (or town) divided by 33
114	114	the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city 34
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118	118	or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city 1
119	119	or town’s population multiplied by the average per capita statewide amount of the annual 2
120	120	appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the 3
121	121	remainder of the cities and towns in the respective county in accordance with the provisions of this 4
122	122	section. 5
123	123	For fiscal year 2004, notwithstanding the provisions of subsection (a), aid calculations shall 6
124	124	be based on a blended rate of ninety percent (90%) of the data from the 1990 census and ten percent 7
125	125	(10%) of the data from the 2000 census. In each of the succeeding nine (9) fiscal years, the 8
126	126	calculations shall be based on a blended rate that increases the percentage of data utilized from the 9
127	127	2000 census by ten percent (10%) from the previous year and decreases the percentage of the data 10
128	128	utilized from the 1990 census by ten percent (10%) from the previous year. 11
129	129	(c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be 12
130	130	specified in the annual appropriation act of the state and shall be equal to the following: 13
131	131	(1) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid 14
132	132	shall be based upon one percent (1%) of total state tax revenues in the reference year. 15
133	133	(2) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon 16
134	134	one and three-tenths percent (1.3%) of total state tax revenues in the reference year. 17
135	135	(3) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon 18
136	136	one and seven-tenths percent (1.7%) of total state tax revenues in the reference year. 19
137	137	(4) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon 20
138	138	two percent (2.0%) of total state tax revenues in the reference year. 21
139	139	(5) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon 22
140	140	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 23
141	141	(6) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon 24
142	142	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 25
143	143	(7) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon 26
144	144	two and seven-tenths percent (2.7%) of total state tax revenues in the reference year. 27
145	145	(8) For the fiscal year ending June 30, 2005, the total amount of aid shall be fifty-two 28
146	146	million four hundred thirty-eight thousand five hundred thirty-two dollars ($52,438,532). 29
147	147	(9) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon 30
148	148	three percent (3%) of total state tax revenues in the reference year. 31
149	149	(10) For the fiscal year ending June 30, 2007 the total amount of aid shall be sixty-four 32
150	150	million six hundred ninety-nine thousand three dollars ($64,699,003). 33
151	151	(11) For the fiscal year ending June 30, 2008, the total amount of aid shall be sixty-four 34
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155	155	million six hundred ninety-nine thousand three dollars ($64,699,003). 1
156	156	(12) [Deleted by P.L. 2009, ch. 68, art. 6, section 3.] 2
157	157	(13) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 3
158	158	(14) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 4
159	159	(d) For the fiscal year ending June 30, 2008 the apportionments of state aid as derived 5
160	160	through the calculations as required by subsections (a) through (c) of this section shall be adjusted 6
161	161	downward statewide by ten million dollars ($10,000,000). 7
162	162	(e) For the fiscal year ending June 30, 2009, the total amount of aid shall be twenty-five 8
163	163	million dollars ($25,000,000) with such distribution allocated proportionately on the same basis as 9
164	164	the original enactment of general revenue sharing of FY 2009. 10
165	165	(f) For the fiscal year ending June 30, 2009 and thereafter, funding shall be determined by 11
166	166	appropriation. 12
167	167	(g) For the fiscal year ending June 30, 2024, the total amount of aid shall be thirty-nine 13
168	168	million dollars ($39,000,000) to be allocated and distributed based on population as determined by 14
169	169	the 2020 census. 15
170	170	(h) For the fiscal year ending June 30, 2025 and thereafter, aid shall be increased by the 16
171	171	total percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U). 17
172	172	SECTION 3. This act shall take effect upon passage. 18
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179	179	EXPLANATION
180	180	BY THE LEGISLATIVE COUNCIL
181	181	OF
182	182	A N A C T
183	183	RELATING TO TOWNS AN D CITIES -- STATE AID
184	184	***
185	185	This act would provide state aid to municipalities in the amount of thirty-nine million 1
186	186	dollars ($39,000,000) based on population and increased annually by the increase in the consumer 2
187	187	price index (CPI). 3
188	188	This act would take effect upon passage. 4
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190	190	LC002615
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