Governor McKee releases budget for FY2023

PROVIDENCE, R.I. (WLNE)- Governor Dan McKee has released his budget proposal for the fiscal year of 2023.

The first priority, allocating the spending of almost one billion dollars from the American Rescue Plan funds, which must be spent over the next four years before December 31, 2026.

The Governor plans to spend those funds in the following sectors:

• Housing: $250,000,000
• Economic and Workforce Development: $211,825,000
• Aid to Small Business and Impacted Industry: $180,535,000
• Public Health: $152,292,751
• Climate: $132,000,000
• Children, Families, and Education: $118,575,000
• Behavioral Health: $42,392,390
• Public Infrastructure and Technology: $26,475,000
• Administrative Costs: $16,965,916

Total: $1,131,061,057

The funds for housing will cover mortgage assistance, workforce housing incentives, $90 million to build 1,500 affordable housing units, and with 26 million dollars for homelessness assistance.

The $152 million for Public Health will be used to continue to combat the pandemic, with $50 million for immediate use for health care providers.

As a part of the $211 million in Economic and Workforce Development, $22.5 million will focus on higher education, $40 million investing in Real Jobs RI, $30 million towards biosciences, and $70 million towards a blue economy.

The aid to Small Business and Impacted Industry will allocate $45 million in assistance grants to small businesses, $20 million for loans and access to capital, $28.5 million for impacted industries such as tourism and hospitality, and $10 million for minority-owned businesses.

The investment into Climate will provide $95 million for investing in port development to position RI for offshore wind development, and $37 million to support households and organizations to transition to electric heat.

$118.6 million for Children, Families, and Education will cover wage incentives for child care providers with $42 million, pediatric relief programs with $15 million, early intervention programs with $11 million. There will also be $15 million for municipal learning centers, and $10 million for nonprofit support.

The budget will provide $42.4 million towards Behavioral Health, with $28.1 million to support the infrastructure of certified community behavioral health clinics, $6 million to establish a psychiatric residential treatment facility to prevent out-of-state placements for girls and young women, and $4.2 million to create a Mental Health Court pilot.

$26.5 million will be allocated for Public Infrastructure and Technology; $5 million to establish a Pawtucket Bus Hub Passenger Facility, $5 million to support municipal commercial districts, and $5.8 million to invest in key state IT improvements including a new permitting system for DEM.

$46.7 million for the Municipal Matching Grant Program which matches funds to cities and towns to renovate or build a community wellness center.

$35 million to Rhode Island College Student Services Center where students can complete essential tasks

$25 million for Last-Mile Broadband Grants providing state matching funds for broadband infrastructure projects to municipalities, public housing authorities, business cooperatives, and local internet service providers for last-mile projects.

Governor McKee also shared the FY2022 Projected Surplus of $618.4 million, which will be invested in the following ways:

• $210 million towards the Rhode Island Capital Projects Fund to be coupled with existing funds
  • $108.2 million for a new Zambarano medical hospital, including 100-bed medical facility
    • $14.3 million in mechanical upgrades to Zambarano Campus
    • $3.2 million to develop the Beazley Building’s ventilator unit
  • $120.8 for utility and infrastructure improvements at the Pastore Campus
    • $19.7 million in exisiting debt proceeds to address safety issues at the Regan Building on the Pastore Campus
  • $13.1 million for state-run group home improvements
• $50 million towards Information Technology Investment Fund to replace DLT’s mainframe and provide an electronic medical records system for Eleanor Slater Hospital
• $100 million in State match for federal transportation projects for two years, unlocking $400 million in federal funding
• $21.9 million in State match for federal clean and drinking water programs for two years
• $62 million to pay off the 1991/1992 pension deferral obligations

$350 million dollars will be used for ballot initiatives, designated towards the following projects:

• $250 million dollars for K-12 School Construction
  • $200 million-Direct Funding for School Construction Projects
  • $50 million-School Building Authority Capital Fund
• $62 million for Higher Educations
  • $50 million- URI Narragansett Bay Campus Improvements
  • $12 million- CCRI Academic Enhancements
• $38 million for a Green Economy
  • $16 million- Municipal Resiliency Matching Grants
  • $5 million- Small Business Green Energy Loan Program
  • $4 million- Brownfields Remediation and development
  • $3 million- Narragansett Bay and Watershed Restoration
  • $3 million- Forest Conservation
  • $3 million- State Open Space Land Acquisition Program
  • $2 million- Local Open Space Land Acquisition Program
  • $2 million- Local Recreation Grant Program

To see Governor McKee’s Budget submission, visit The Office of Management and Budget’s website here

The next steps are for the budget to find it’s way to the legislators, who would typically approve the budget by June. Rhode Island does not allow the Governor to veto budget plans, but requires that the Governor submit a balanced budget plan, and legislators are required to pass said balanced budget plan.