January 19, 2025 District Letter

I hope you find a meaningful way to celebrate Dr. Martin Luther King, Jr. Day. I recommend the performance at Mixed Magic Theatre of King’s Letter from Birmingham Jail, as well as the Ministers Alliance Scholarship Breakfast, both of which I look forward to attending this year, weather permitting. In this week’s letter I will discuss the Governor’s budget (and its $32.5 million deficit) proposed for the Rhode Island Public Transit Authority (RIPTA).

A.   The RIPTA Budget

1.     Driving Off A Fiscal Cliff

It is not an exaggeration to say that the Governor’s proposed budget will drive RIPTA off a fiscal cliff.  As I noted in my letters from January 21 and May 5 last year, the Governor’s RIPTA budget last year contained a major funding gap, which was filled with a combination of expiring direct federal funds (highlighted in green) and the State’s one time use of American Rescue Plan Act funds (highlighted in yellow), as shown on this chart:
(You can click here to view all of the supporting documents for the Governor’s budget.}

2.     The Motor Fuel Tax

a.     Historical Values

It is clear (at least to me) that the State must provide RIPTA with a reliable funding stream going forward. I will advocate in the coming session for greater access to motor fuel tax revenues. As noted in the chart, RIPTA currently receives roughly $40 million in annual gasoline tax revenues, based on an allocation in State Law of 9.75 cents per gallon, or roughly $4.3 million for each penny per gallon of tax. RIPTA’s 9.75 cent share has remained constant as the overall tax increased from 32.5 cents/gallon to its current level of 38 cents (including a one cent environmental fee).

b.     Maintaining RIPTA’s Historical Share Of Revenues

If RIPTA had maintained its previous 30% share of the total, it would now receive an additional $7 million annually. The Governor’s budget includes a penny per gallon inflation adjustment which would provide another $1.3 million to RIPTA. As a further matter, the current inflation adjustment is inadequate, as it occurs every two years, but only adjusts for one year of inflation as demonstrated in my December 15, 2024 letter. Adding an additional penny per gallon next year would provide RIPTA with $1.3 million more.

c.      The Electric Vehicle Charge 

The Governor’s budget proposes an annual fee for electric and plug-in hybrid vehicles to recover the motor fuel tax lost by their use. If the General Assembly approves the Governor’s proposal, then RIPTA should receive 30% of that revenue stream as well, which (according to the Governor’s projections) would generate for RIPTA funding escalating from $500,000 next year to $4.4 million in fiscal year 2030.

While these revenue streams are not sufficient to close the entire RIPTA budget gap, they represent a good starting point.

B.    Reminder 

As noted in last week’s letter, the Providence Public Schools are at a crossroads concerning their future direction. A Senate Study Commission prepared a report last year with a plan for reform and improvement. I (with other Commission members) will be presenting our findings and recommendations at a meeting sponsored by City Council members Helen Anthony and Sue Anderbois. We also would like to hear your feedback. The meeting will take place at Hope High School on Wednesday, January 29 at 6:00 p.m.