This past Thursday, I attended a portion of an Anti-Hate Summit convened by a coalition of Rhode Island community and civil rights organizations. I drew inspiration from the keynote address of Eric Ward, who urged us to aim higher than mutual tolerance for what he called “mature democracy.” His vision went beyond the basic definition of democracy as government by popular vote to a more inclusive notion of a truly democratic society, continuing a project first begun by Alexis de Tocqueville almost 200 years ago, and which our country has, in our better moments, endeavored to advance and extend ever since. In this week’s letter, I will discuss some initial thoughts about the State budget approved by the House Finance Committee.
A. The Budget Process
As noted in my May 10 letter, the General Assembly begins its review of the Governor’s budget in the House Finance Committee, which approved an amended budget late Friday night. After one week (or possibly longer), the full House of Representatives will review the House Finance Committee (HFC) budget, possibly amending it. The Senate will review the House budget, also with the opportunity to amend. The final legislative budget then goes to the Governor, either to (1) sign, (2) veto or (3) allow it to take effect without his signature. Traditionally, the full House of Representatives makes modest amendments to the Finance Committee budget, and the Senate rarely amends what it receives from the House of Representatives.
B. The House Finance Committee (HFC) Budget
The HFC Budget, which you can view on my Budget Documents Page, is a complex document. The Senate Fiscal Staff will help us to study and understand it over the next two weeks, when it comes before the Senate Finance Committee and then the full Senate. From my initial review, I see three ways in which I believe the HFC Budget improves upon the Governor’s budget.
1. RIDOT and RIPTA Funding
As noted in my May 10 letter, the Governor’s budget included a $.02 reduction in the motor fuel tax to promote “affordability,” which in fact would save the average Rhode Island motorist less than $1 per month. The HFC Budget retains the current motor fuel tax level, bringing in an additional $8.6 million for the Rhode Island Department of Transportation (RIDOT) budget. The HFC then directs $5 million from another permanent RIDOT revenue source called the “highway maintenance account” to RIPTA, enabling RIPTA to restore some of the routes it had to cut to close last year’s budget deficit. This approach represents an improvement over previous years, as it provides RIPTA with a new reliable and sustainable revenue source going forward, rather than having to rely on one-time appropriations each year from different sources.
2. RIDOT Performance Audit
As noted in my letters of December 14, January 11 and March 8, the Oversight Committee review of the Washington Bridge closure raised serious concerns about the efficiency of RIDOT’s operations. The “Road Woes” Report from WPRI-TV 12 raised the profile of these concerns further, noting RIDOT’s poor performance compared to other states. The HFC Budget includes the Rhode Island Department of Transportation Efficiency and Performance Audit Act, which calls for the commission of an audit of RIDOT’s road maintenance program, whose deficiencies contributed to the deterioration of the Washington Bridge.
3. The Act on Climate
As noted in my February 1 letter, the Governor’s budget proposed reducing utility bills by postponing the State’s adoption of 100% renewable energy (known as the “renewable energy standard” or “RES”) from 2033 to 2050. As that letter notes, the RES represents the central pillar of the emissions reduction mandates of the Act on Climate, and the Governor’s budget would severely compromise the chances of the Act’s successful implementation. The HFC Budget provides some rate relief by incorporating access to other zero emission energy sources (such as hydropower and nuclear), but restoring the 2033 requirement of 100% zero emissions energy, thereby preserving the Act on Climate’s basic emissions reduction framework.