Gov. McKee signs FY 25 budget

State lawmakers join Rhode Island Gov. Dan McKee for the ceremonial signing of the state budget for the fiscal year that begins July 1 at the State House on Monday, June 17, 2024. (Office of the Governor)

The second-highest state spending plan on record is now law after Gov. Dan McKee lent his John Hancock to the fiscal 2025 budget at a ceremony at the State House Monday.

The ceremonial signing, complete with a cake for McKee’s 73rd birthday on Sunday, marks the final stop for the $13.96 billion spending plan that starts July 1.

The approved budget falls just shy of the $14 billion high-water mark that characterized fiscal 2024, but is $271 million more than what McKee proposed in January. The Rhode Island House and Senate previously backed the budget in separate, sweeping votes of 69-5 and 31-4 , respectively.

Flanked by top lawmakers in the Rhode Island General Assembly, McKee echoed praise of other lawmakers who have touted the budget’s investments in key areas like education, health care and housing while sparing taxpayers from any broad-based increases.

“We came together as a team and delivered a budget that continues to put Rhode Island on a path to improve educational outcomes, raise incomes for all Rhode Islanders, and build a healthier state,” McKee said in a statement. “I am proud to sign a budget that makes smart investments in Rhode Island’s future and I thank the Speaker and Senate President for their collaboration.”

Among its provisions are sweeping changes to the much-maligned education funding formula that determines state aid for K-12 schools, adding in money for multilingual learners along with extra funds to offset a decrease in federal aid. The budget also includes the full $160 million in state and federal funds to increase reimbursement rates for certain Medicaid providers, as recommended by the Office of the Health Insurance Commissioner in a single year, rather than the three-year phase-in McKee had planned. A historic $120 million housing bond, including dedicated funding for homeownership and housing production is one of four borrowing proposals that will be decided by voters on the ballot in November. The other three would allow for state-issued debt on $160 million worth of programs at the University of Rhode Island and Rhode Island College, $53 million in assorted green economy investments and $10 million for the arts community.

The budget also revives annual, cost-of-living increases for the 19,000 retired state workers and teachers who stopped working before the 2011 pension reforms took effect, along with other updates to state pension policy that benefit a wider swath of retired and active state workers and teachers, costing the state an expected $27.5 million this year.

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