Gov. Raimondo announces proposed budget

On Thursday Gov. Raimondo released her budget for the 2021 fiscal year and the $10 billion spending plan shows how the aspirational proposals heard during the state of the state earlier in the week would be paid for.

We also found out how the administration plans on closing the nearly $200 million deficit.

“Focuses on protecting our economic progress and strengthening the programs we know are working for Rhode Islanders,” said Department of Administration Director Brett Smiley

Gov. Raimondo plans on closing the budget by changing expenditures in areas such as debt service, general government, health and human services, and public safety.

There will also be new revenue streams in tobacco and alcohol tax changes, sales tax modification, less money going into the rainy day fund, and an increase on the state hotel tax.

The biggest proposal worth $21.8 million is to make marijuana legal by March 2021.

The governor is also looking to expand Real Jobs RI by throwing $14 million into the program and by increasing minimum wage from $10.50 an hour to $11.50 an hour.

“3.5 percent unemployment rate which is a thirty-year low,” said Director of the Office of Management and Budget Johnathan Womer. ” In addition, income is up 4.6 percent. That’s a greater increase than Connecticut, Massachusetts, and the United States as a whole.”

Several bonds are also on the table for higher education, housing and infrastructure, and for state parks and beaches.

The governor also wants to expand housing in the state by adding a tier tax on the real estate conveyance tax which currently sits at 0.46 percent.

“What we’re proposing is a 4.6 percent increase for the value of a home over $500,000,” Womer said.

Education will also be seeing a boost as there will be an increase in funding for RIDE.

Raimondo also wants to make the RI Promise program permanent, as it was set to expire this year.

“High School juniors right now don’t know if they’re going to see this going forward and we think its right now that critical time to make sure that sunset is removed,” Womer said.

The budget deficit would be closed with the help of legalizing recreational marijuana sales in Rhode Island.

It accounts for $21.8 million in the deficit, despite House Speaker Mattiello and Senate President Ruggerio voicing their opposition to such a change.

But Raimondo is touting that the program would be the strongest in the country, and the state is already dealing with effects from marijuana as it is legal in Massachusetts.

She wants lawmakers to take a fresh look at the proposal.

“This year’s proposal is an innovative approach that will allow the state to more revenue… devote more of it to public safety and public health… and reduce opportunities for corruption,” Smiley said.

Speaker Mattiello released a statement calling the proposal concerning and was disappointed with other aspects of the proposed budget.

“Yet again, the Governor has presented us a budget lacking many details. I am very concerned about her proposal to generate revenue from the sale of recreational marijuana when she was advised this would not be an acceptable policy to the General Assembly,” Mattiello said. “Over $20 million has been estimated, which is risky and short-sighted at best.”

Raimondo would also like to increase funding to DCYF adding more positions that will help children be placed in homes more suitable to their needs.