House Fiscal Advisory Staff 2008-H 7390 Substitute A

House Fiscal Advisory Staff

2008-H 7390 Substitute A

As Recommended by the House Finance Committee

Submitted to the 2008 House of Representatives

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House Committee on Finance

Hon. Steven M. Costantino Chairman

Hon. Kenneth Carter Vice Chairman

Chair, Subcommittee on Public Safety

Hon. William San Bento, Jr. Secretary

Hon. Robert B. Jacquard Chair, Subcommittee on

Education

Hon. Peter L. Lewiss Chair, Subcommittee on

General Government

Hon. Eileen S. Naughton Chair, Subcommittee on Environment/Health and

Advocates

Hon. John Patrick Shanley Chair, Subcommittee on

Transportation

Hon. Thomas C. Slater Chair, Subcommittee on

Human Services

Hon. Joseph S. Almeida

Hon. Raymond C. Church

Hon. Elizabeth M. Dennigan

Hon. J. Russell Jackson

Hon. Victor Moffitt

Hon. Carol A. Mumford

Hon. Henry C. Rose

Hon. John A. Savage



Table of Contents

Introduction............................................................................................................1 Section I. Overview ............................................................................................3 Section II. Adjustments to Governor’s FY 2009 Budget FY 2009 Expenditure Changes Table .....................................................................7 Changes to Governor’s FY 2009 Budget ............................................................... 13 Section III. Special Reports State Aid to Cities and Towns............................................................................ 35 Education Aid............................................................................................... 45 Section IV. FY 2008 Changes to 2008-H 7204 Substitute A FY 2008 Changes to H 7204 Table...................................................................... 55 Changes to 2008-H 7204 Substitute A .................................................................. 57 Section V. Summary Tables Expenditures by All Funds................................................................................ 66 Expenditures from General Revenue .................................................................... 68 Expenditures from Federal Grants....................................................................... 70 Expenditures from Restricted Receipts.................................................................. 72 Expenditures from Other Funds.......................................................................... 74 Full-Time Equivalent Positions........................................................................... 76 Section VI. Articles Explanations ........................................................................... 79



Introduction



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Introduction This document provides information concerning the FY 2009 budget contained in 2008-H 7390, Substitute A as passed out of House Finance Committee on June 11. The sections that follow contain descriptions of the Committee’s recommended changes to the Governor and current law. Section I, beginning on page 3, is a short summary of the budget. Section II, beginning on page 7, presents the changes to the Governor’s recommendations for FY 2009 introduced and referred to House Finance on February 5. It is followed by explanations of the items in the table. The explanations are numbered to correspond to the item numbers shown in the table. Section III, beginning on page 35, contains State Aid to Cities and Towns and Education Aid. Both of these reports contain comparison tables to FY 2007, as well as descriptions of the major aid components. Section IV, beginning on page 55, contains the changes to the revised FY 2008 Budget as enacted in 2008-H 7204, Substitute A as Amended, on May 1. Section V, beginning on page 65, contains summary tables of general revenues by source, expenditures by agency by fund source, and full-time equivalent positions. The expenditure and full-time equivalent positions tables show values for the FY 2008 enacted budget, the final FY 2008 budget as reported by the House Finance Committee, the Governor’s FY 2009 recommendations and the House Finance Committee’s recommendations for FY 2009. Section VI, beginning on page 79, contains brief descriptions of the articles contained in 2008-H 7390, Substitute A. The names and telephone numbers of the House Fiscal Staff are listed below by their assignments. Please feel free to allow staff to assist you with any questions you may have concerning the budget. General Government Agencies Analyst and Phone Number

Department of Administration................................................Chantale Sarrasin (2485) Department of Business Regulation .................................................. Liza Pinto (2059) Department of Labor and Training ................................................... Liza Pinto (2059) Department of Revenue........................................................Chantale Sarrasin (2485) Legislature Sharon Reynolds Ferland (1163) Office of the Lieutenant Governor................................................... Jodi Aubin (1304) Office of the Secretary of State............................................ James A. Pontarelli (1162) Office of the General Treasurer .................................... Sharon Reynolds Ferland (1163) Rhode Island Board of Elections .......................................... James A. Pontarelli (1162) Rhode Island Ethics Commission ............................................Chantale Sarrasin (2485) Office of the Governor................................................................. Jodi Aubin (1304) Public Utilities Commission .......................................................... Jodi Aubin (1304) Rhode Island Commission on Women .............................................. Jodi Aubin (1304) Economic Development Corporation........................................Chantale Sarrasin (2485)



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Human Services Agencies

Office of Health and Human Services.........................................Linda M. Haley (1164) Department of Children, Youth and Families .......................... James A. Pontarelli (1162) Department of Elderly Affairs and Advocacy .......................... James A. Pontarelli (1162) Department of Health ............................................................Linda M. Haley (1164) Department of Human Services ....................................... Edward J. Cooney, Jr. (1303) Department of Mental Health, Retardation and Hospitals ...............Linda M. Haley (1164) Office of the Child Advocate ......................................................... Jodi Aubin (1304) Office of the Mental Health Advocate .............................................. Jodi Aubin (1304)

Education Agencies

Department of Elementary and Secondary Education............................. Liza Pinto (2059) Board of Governors for Higher Education .......................................... Liza Pinto (2059) Rhode Island Council on the Arts ................................................... Jodi Aubin (1304) Rhode Island Atomic Energy Commission ......................................... Liza Pinto (2059) Rhode Island Higher Education Assistance Authority ........................... Liza Pinto (2059) Historical Preservation and Heritage Commission ............................... Jodi Aubin (1304) Rhode Island Public Telecommunications Authority............................. Jodi Aubin (1304)

Public Safety Agencies

Office of the Attorney General ...............................................Chantale Sarrasin (2485) Department of Corrections .......................................... Sharon Reynolds Ferland (1163) Judicial Department ......................................................... James A. Pontarelli (1162) Military Staff Liza Pinto (2059) Department of Public Safety ........................................... Edward J. Cooney, Jr. (1303) Fire Safety Code Board of Appeal and Review .................... Edward J. Cooney, Jr. (1303) Office of the Public Defender ..................................................Linda M. Haley (1164)

Natural Resources Agencies

Department of Environmental Management .............................John-Paul Verducci (2014) Coastal Resources Management Council .................................John-Paul Verducci (2014) State Water Resources Board ...............................................John-Paul Verducci (2014) Clean Water Finance Agency...............................................John-Paul Verducci (2014) Narragansett Bay Commission .............................................John-Paul Verducci (2014) Rhode Island Resource Recovery Corporation ..........................John-Paul Verducci (2014)

Transportation Agencies

Department of Transportation ..............................................John-Paul Verducci (2014) Rhode Island Public Transit Authority....................................John-Paul Verducci (2014) Rhode Island Airport Corporation .........................................John-Paul Verducci (2014)



Section I Overview



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Summary

FY 2008 FY 2008 FY 2009 FY 2009Enacted Final Recommended Enacted

Expenditures by Function*General Government 1,458.9$ 1,491.6$ 1,373.0$ 1,399.0$ Human Services 2,714.4 2,692.9 2,613.3 2,606.5 Education 1,909.1 1,926.6 1,985.3 1,987.4 Public Safety 428.5 433.9 451.3 433.5 Natural Resources 92.3 94.7 95.2 95.7 Transportation 374.1 342.7 370.8 370.0

Total 6,977.4$ 6,982.4$ 6,888.8$ 6,892.2$

Expenditures by Category*Salaries and Benefits 1,485.2$ 1,423.9$ 1,348.0$ 1,351.5$ Contracted Services 189.1 206.2 201.0 199.9

Subtotal 1,674.3$ 1,630.2$ 1,549.1$ 1,551.4$ Other State Operations 567.8 559.4 614.3 616.4 Aid to Local Units of Government 1,274.0 1,271.1 1,297.5 1,298.0 Assistance, Grants, and Benefits 2,853.4 2,960.0 2,831.5 2,818.4 Capital 261.5 195.8 230.2 242.7 Capital Debt Service 194.0 199.1 226.6 228.2 Operating Transfers 152.5 166.8 139.7 136.9

Total 6,977.4$ 6,982.4$ 6,888.8$ 6,892.2$

Sources of Funds*General Revenue 3,403.6$ 3,367.8$ 3,272.7$ 3,273.2$ Federal Aid 2,010.6 2,032.8 1,989.7 1,987.6 Restricted Receipts 162.6 156.2 158.2 152.5 Other 1,400.5 1,425.6 1,468.1 1,478.9

Total 6,977.4$ 6,982.4$ 6,888.8$ 6,892.2$

FTE Authorization 15,987.3 15,688.7 14,796.6 14,713.6 FTE Average

*Data in millions

Summary The Governor’s budget recommendations for FY 2009 are contained in 2008-H 7390, introduced on February 5, 2008. His revised budget for FY 2008 is contained in 2008-H 7204 Substitute A, as amended, signed into law on May 1. The Governor recommended a total FY 2009 budget of $6,888.8 million, which is less than both the enacted and revised FY 2008 budgets. Total recommended expenditures are $88.6 million less than the FY 2008 budget enacted by the 2007 Assembly, or 1.3 percent.



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The Governor’s recommended budget includes $3,272.7 million of expenditures funded from general revenues, $130.9 million, or 3.8 percent less than the enacted general revenue funded budget.

FY 2009 General Revenue

Federal Restricted Other All Funds

FY 2008 Enacted 3,403.6$ 2,010.6$ 162.6$ 1,400.5$ 6,977.4$ Governor 3,272.7 1,989.7 158.2 1,468.1 6,888.8 Change to Enacted (130.9)$ (21.0)$ (4.4)$ 67.6$ (88.6)$ Percent Change -3.8% -1.0% -2.7% 4.8% -1.3%House Finance Committee 3,273.2$ 1,987.6$ 152.5$ 1,478.9$ 6,892.2$ Change to Enacted (130.4) (23.1) (10.1) 78.4 (85.2) Percent Change -3.8% -1.1% -6.2% 5.6% -1.2%Change to Governor 0.5$ (2.1)$ (5.7)$ 10.7$ 3.4$

The House Finance Committee recommends total expenditures of $6.892 billion. This is $3.4 million more than the Governor recommended. It is $85.2 million less than the FY 2008 budget enacted by the 2007 Assembly, or 1.2 percent. It contains $3.273 billion from general revenues, which is $0.5 million more than the Governor recommended. General revenue expenditures recommended by the Committee are $130.4 million, or 3.8 percent less than general revenues appropriated for FY 2008 by the 2007 Assembly.

General Revenues Surplus and Out-year Projections The table below shows the general revenue balances as recommended by the House Finance Committee. The Committee recommends an FY 2009 surplus of $0.2 million, and has an operating deficit of $3.1 million. The latter is revenues minus the transfer to the Budget Reserve Fund minus expenditures. It represents the gap between useable revenues and expenditures. The budget reserve and cash stabilization account, the “rainy day fund” would have an FY 2009 balance of $113.8 million.

As Reported FY 2007 FY 2008 FY 2009Opening SurplusFree Surplus 38,331,149 - 3,273,399 Reappropriated Surplus 17,381,365 3,640,364 - Subtotal 55,712,514 3,640,364 3,273,399 Revenues 3,231,076,945 3,436,095,000 3,343,741,345 Cash Stabilization Fund (65,388,158) (68,721,900) (73,634,324) Total Available Resources 3,221,401,301 3,371,013,464 3,273,380,420

Expenditures 3,217,760,937 3,367,740,065 3,273,225,011 Total Surplus 3,640,364 3,273,399 155,409 Reappropriations (3,640,364) - - Free Surplus - 3,273,399 155,409Operating Surplus/(Deficit) (52,072,150) (366,965) (3,117,990)

Out Years. The FY 2009 budget resolves a significant gap between available revenues and current services expenditures of over $425 million. It also resolves, but does not eliminate, forecast outyear deficits. These are estimated at $96.8 million in FY 2010 and $118.3 million in FY 2011, growing to $218.6 million in FY 2013. The estimates are shown in the table on the next page.



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Useable revenues are revenues minus the transfers to the Budget Stabilization and Cash Reserve Account, or “rainy day fund” to be used in case of emergency, and then only by legislative action. Two percent of the opening surplus plus all revenues must be deposited in the account in FY 2008, increasing by 0.2 percent per year until reaching 3.0 percent in FY 2013. Any amounts used must be replaced in the following year. The account is limited; once the limit is reached, the excess revenues are transferred to the Rhode Island Capital Plan account, where they may be used to fund capital projects. Maximum amounts in the budget reserve are also defined by statute and increase to a maximum of 5.0 percent in 0.4 percent increments to FY 2013. Amounts above the maximum amount transfer to the Rhode Island Capital Plan Funds for use for capital projects. The estimates are based on the economic forecasts revised at the May Revenue Estimating Conference, expenditures forecast in the Governor’s Budget and expenditure changes estimated using the growth factors presented in the Governor’s Budget for the out years. The economic forecasts adopted in May are less optimistic than those adopted in November.

FY 2010 FY 2011 FY 2012 FY 2013Revenues 3,432.5$ 3,516.7$ 3,584.6$ 3,681.8$ Cash Stabilization Fund (82.4) (91.4) (100.4) (110.5) Useable Revenues 3,350.1$ 3,425.2$ 3,484.3$ 3,571.3$ Expenditures 3,446.8 3,543.5 3,667.0 3,789.9 Total Surplus (96.8)$ (118.3)$ (182.7)$ (218.6)$

Revenue Growth 2.7% 2.5% 1.9% 2.7%Useable Revenue Growth 2.4% 2.2% 1.7% 2.5%Expenditure Growth 0.0% 2.8% 3.5% 3.4%

2.9% 3.5% 5.2% 6.1%Surplus Percent of Useable Revenues



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Section II Adjustments to Governor’s

FY 2009 Budget



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FY 2009 Changes to Governor Gen. Rev. Federal Restricted Other Total

Revenue Changes1 Foreign Tax Credit 3,635,000 3,635,000 2 Innovative Technology Tax Credit 1,000,000 1,000,000 3 May Revenue Estimating Conference (20,543,887) (20,543,887) 4 Health Insurer Tax 5,600,000 5,600,000 5 Affordable Energy Credits 4,200,000 4,200,000 6 Nursing Home Provider Tax (2,893,000) (2,893,000) 7 Attorney General Traffic Control Grant 36,503 36,503 8 Driving Violations $10 Increase 1,385,000 1,385,000 9 Driving with Handhelds (350,000) (350,000) 10 Good Driver Fees to $35 (835,000) (835,000) 11 Newborn Screening Indirect Recovery 200,000 200,000 12 Olmstead Grant 20,000 20,000 13 State Police Class Fees 210,000 210,000 14 Resource Recovery 3,500,000 3,500,000 15 RIHEBC 1,100,000 1,100,000

Total (3,735,384) (3,735,384)

Expenditures Changes Administration

16 Capital - Affordable Housing 2,500,000 2,500,000 17 Capital - DOIT Operations Center 8,975,000 8,975,000 18 Capital - Environmental Compliance (300,000) (300,000) 19 Capital - Fueling Tanks Replacement 550,000 550,000 20 Capital - Ladd Center Water System (450,000) (450,000) 21 Capital - McCoy Stadium Repairs 432,500 432,500 22 Capital - Old State House 500,000 500,000 23 Capital - Pastore Center Power Plant (1,600,000) (1,600,000) 24 Capital - Pastore Center Bldg. Demolition (125,000) (125,000) 25 Capital - Pastore Center Fire Code (400,000) (400,000) 26 Capital - Pastore Center Utilities (550,000) (550,000) 27 Capital - Registry 5,500,000 5,500,000 28 Capital - Virks Bldg. Renovations 265,000 265,000 29 Capital - Washington County Govt. Ctr. 160,000 160,000 30 Consultants - Hewittt Associates (87,000) (87,000) 31 Consultants - Outside Legal Services (160,000) (160,000) 32 Contingency Fund (1,000,000) (1,000,000) 33 Debt Service - Forand and Virks (658,075) (658,075) 34 Debt Service - School for the Deaf (2,614,979) (2,614,979) 35 Debt Service - TANS 4,875,000 4,875,000 36 EDC (935,000) (935,000) 37 Energy Office Restricted Receipts (12,530,360) (12,530,360) 38 Fire Safety Code Board 306,552 306,552 39 General Revenue Sharing to FY 2008 96,011 96,011 40 Legal Staff - DOT and DLT (283,713) (283,713) 41 Sheriffs and Marshals to DOA 15,488,294 15,488,294 42 Worksite Wellness from Health 275,000 275,000



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Business Regulation43 Office of Health Commissioner FTE (85,000) (85,000)

Labor and Training44 Central Management 4,126 4,126 45 Income Support 74,393 10,330 64,018 148,741 46 Injured Workers Services 38,633 38,633 47 Job Development Fund 5,770,586 5,770,586 48 Police and Fire Benefits 213,100 213,100 49 Workforce Development 125,166 13,470 21,715 160,351

Department of Revenue50 Pawtucket Registry Wiring (95,000) (95,000) 51 Single License Plate 239,000 239,000 52 West Warwick Registry 331,884 331,884

Lieutenant Governor53 Operating Adjustments 16,498 16,498

Secretary of State54 Elections Expenses 180,000 180,000 55 Municipal Elections 50,000 50,000 56 Personnel and Operating 274,000 274,000 57 RI Government Owners' Manual 25,000 25,000

General Treasurer58 Retirement System Overtime 45,000 45,000 59 Unclaimed Property Claims 196,215 196,215 60 Unclaimed Property Transfer (200,000) (200,000)

Governor's Office61 Contingency Fund 500,000 500,000

Office of Health and Human Services62 OHHS Centralization Reversal (531,669) (298,552) (126,875) (957,096)

Children, Youth and Families63 Financial and Legal Services (73,000) (73,000) 64 OHHS Centralization Reversal 202,498 206,590 409,088 65 Olmstead Grant 20,000 20,000

Elderly Affairs and Advocacy66 Comm. on Deaf and Hard of Hearing (368,807) (368,807) 67 Comm. on Disabilities (413,651) (189,769) (8,565) (300,000) (911,985) 68 Community Elder Information Specialists 65,000 65,000 69 May Revenue Gas Tax Adj. (55,000) (55,000)



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Health70 Community Health Centers Caseload 1,200,000 1,200,000 71 Health Information System 400,000 400,000 72 OHHS Centralization Reversal 198,766 91,962 126,875 417,603 73 RI Airport Corporation Health Study - - 100,000 100,000 74 Worksite Wellness to Administration (275,000) (275,000)

Human Services75 Caseload Estimating Conference (11,883,066) 6,381,004 (1,343,131) (6,845,193) 76 Child Care Provider Rates 1,100,000 1,100,000 77 Community Hospital Uncompensated Care 9,600,000 9,600,000 78 Crossroads Women's Shelter 360,000 360,000 79 Head Start 1,000,000 1,000,000 80 Hospital DRG Reimbursement System (4,000,000) (4,400,000) (8,400,000)

Mental Health, Retardation and Hospitals81 Capital - Community Facilities Fire Code (500,000) (500,000) 82 Capital - Mental Health Residences (700,000) (700,000) 83 Capital - MR Comm. Facilities Repair (500,000) (500,000) 84 Capital - Pastore Medical Center Rehab (250,000) (250,000) 85 Capital - Slater Hospital Consolidation (770,000) (770,000) 86 Capital - Slater HVAC & Elevators (550,000) (550,000) 87 CMAP to Actual Levels (400,000) (400,000) 88 Dental Services Expansion Services (404,130) (447,925) (852,055) 89 Developmental Disabilities Client Revenue 2,200,000 2,200,000 90 Dev. Disabilities Food Stamp Initiative (160,000) (240,000) (400,000) 91 Eleanor Slater Hospital Medical Supplies (270,887) (270,887) 92 Eleanor Slater Motor Vehicle Repairs (129,991) (129,991) 93 Hospital Expenses Fund Shift 2,198,225 (2,198,225) - 94 Integrated Mental Health Grants (760,044) (760,044) 95 New Lifespan Contract Services (300,000) (330,000) (630,000) 96 OHHS Centralization Reversal 130,403 130,403 97 Special Medical Clinics at Eleanor Slater (500,000) (554,185) (1,054,185) 98 TASC 520,000 520,000

Deaf and Hard of Hearing99 Maintain Separate Agency Status 368,807 368,807

Governor's Commission on Disabilities100 Maintain Separate Agency Status 413,651 189,769 8,565 300,000 911,985

Elementary and Secondary101 Capital - MET School East Bay 1,100,000 1,100,000 102 Central Falls (1,313,862) (1,313,862) 103 Hasbro Children's Hospital 100,000 100,000 104 Met School - Shepards (736,943) (736,943) 105 Professional Development (100,000) (100,000)



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106 School Breakfast 300,000 300,000 107 School Construction Program Staff 351,207 (351,207) - 108 Teacher Retirement Prior Years 2,213,778 2,213,778 109 Urban Education Task Force (60,000) (60,000)

Higher Education110 Capital - CCRI Fire Code and HVAC 1,575,000 1,575,000 111 Capital - CCRI Knight Campus Nursing 60,000 60,000 112 Capital - RIC Third Entrance 600,000 600,000 113 Capital - URI Superfund Site Remediation 629,000 629,000 114 NGA Gates Foundation Grant 400,000 400,000

Higher Education Assistance Authority115 Grants (2,590,858) (2,590,858)

Corrections116 Capital - Bernadette Guay Bldg 700,000 700,000 117 Capital - New Women's Facility Study (100,000) (100,000) 118 Capital - Women's Unit Plumbing 681,000 681,000 119 Capital - Women's Unit Roof and General 600,000 600,000 120 Electronic Medical Records 450,000 450,000 121 Parole Board Victim Services 10,000 10,000 122 Radio Communications Equipment 62,000 62,000

Judicial123 Personnel and Operating 2,377,074 2,377,074

Military Staff124 Metro Med. Response Funds to FY 2008 (50,051) (50,051) 125 Terrorism Prevention Funds to FY 2008 (1,000,000) (1,000,000)

Public Safety126 Capital - Communications Towers (4,600,000) (4,600,000) 127 Capital - Parking Areas 175,000 175,000 128 Capital - State Police Headquarters (2,000,000) (2,000,000) 129 Sheriffs and Marshals to DOA (15,488,294) (15,488,294) 130 State Police Class June 21, 2009 360,351 360,351 131 E-911 Pictometry Project 400,000 400,000

Fire Safety Code 132 Incorporate into DOA (306,552) (306,552)

Environmental Management133 Capital - Galilee Piers (250,000) (250,000) 135 Maintain CRMC as Separate Agency (1,177,703) (1,410,316) (250,000) (1,655,509) (4,493,528) 136 Maintain Water Resources Board (1,378,002) - - (100,000) (1,478,002)



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Coastal Resources Management Council137 Invasive Aquatic Species Mgmt. 43,134 43,134 138 Maintain Separate Agency Status 1,877,703 1,410,316 250,000 1,655,509 5,193,528

Water Resources Board139 Maintain Separate Agency Status 1,378,002 - - 100,000 1,478,002

Transportation140 Capital - Cherry Hill/Lincoln Facility (125,000) (125,000) 141 Capital - Maint. Facility Fire Alarms (150,000) (150,000) 142 Capital - RIPTA Land & Bldgs 1,947,290 1,947,290 143 Capital - RIPTA Paratransit Vehicles (190,400) (190,400) 144 Capital - Salt Storage Facilities (700,000) (700,000) 145 Maintenance - Lower Gas Tax (1,141,250) (1,141,250) 146 May Revenue Gas Tax Adj. - RIPTA (398,750) (398,750)

Total 514,578 (2,124,689) (5,746,338) 10,730,123 3,373,674



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FY 2009 Changes to Governor

Revenue Changes 1. Foreign Tax Credit. The House Finance Committee recommends removing the foreign tax credit as a credit against Rhode Island income tax and assumes $3.6 million in revenue. 2. Innovative Technology Tax Credit. The Assembly enacted legislation contained in P.L. 2006 Chapter 568 authorizing the Economic Development Corporation to issue up to $2.0 million of Innovative Tax Credits with up to $2.0 during any two-year period. The purpose of the credit is to attract and retain serial entrepreneurs and to catalyze economic growth in high-wage, high-growth industries. The House Finance Committee recommends reducing the authorization that the Rhode Island Economic Development Corporation can issue from $2.0 million to $1.0 million for the Innovative Technology Credits and captures the $1.0 million in revenue. 3. May Revenue Estimating Conference. The May Revenue Estimating Conference increased the November Conference estimates for FY 2008 and FY 2009 $76.4 million and $21.9 million, respectively. The Governor had included a number of revenue adjustments to the November Conference in his revised FY 2008 budget and FY 2009 recommended Budget. Those that did not require legislation or were included in 2008-H 7204 Substitute A were included by the estimators. When they are taken into account, revenues are $0.6 million less than the FY 2008 revenues included in 2008-H 7204 Substitute A and $20.5 million less than in FY 2009. 4. Health Insurer Tax. The House Finance Committee recommends adding nonprofit dental service corporations to the definition of insurers that are subject to the gross premiums tax. The House Finance Committee also recommends increasing the gross premiums tax from 1.1 percent to 1.4 percent and assumes $5.6 million in additional revenue. 5. Affordable Energy Credits. The House Finance Committee recommends repealing the legislation passed by the 2006 Assembly enacting the Comprehensive Energy Conservation, Efficiency and Affordability Act, which created an Affordable Energy Fund to be used to provide energy and weatherization assistance and education to low income and very low-income households. This is estimated to reduce the tax credit loss by $4.2 million in FY 2009, $8.6 million for FY 2010, $13.1 million for FY 2011, $17.8 million for FY 2012 and $18.5 million for FY 2013. The 2007 Assembly had delayed the full-phase up to begin in tax year 2009 and phase up by one fourth per year. 6. Nursing Home Provider Tax. The House Finance Committee recommends $2.9 million less from revenues from the nursing home provider tax. The Governor’s recommended budget assumes expenditure savings of $52.6 million for nursing facilities but does not reduces the provider tax. The House Finance Committee adjusts the revenues accordingly. 7. Attorney General Traffic Control Grant. The Governor’s budget includes $73,965 in expenditures to support a traffic safety prosecutor and training and travel expenses. The Budget Office indicates that half of the funding for this position will be from a non-profit organization and deposited as general revenues. The FY 2009 recommended budget does not include these revenues, however. The House Finance Committee recognizes $36,503 in revenues. 8. Driving Violations $10 Increase. The House Finance Committee recommends additional revenues of $1.4 million by increasing all driving violations by $10.00. The Rhode Island Traffic Tribunal estimates additional revenues of $1,091,264 from the $10.00 increase including $487,763 for



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speeding violations, and $603,630 for non-speeding violations. It is estimated that the Municipal Courts would collect total additional revenues of $296,433 from the $10.00 increase including $131,730 from speeding violations and $164,703 from non-speeding violations. 9. Driving with Handhelds. The Governor’s FY 2009 recommended budget assumed $350,000 of new revenues from his proposed establishment of a $50 fine for use of a hand held mobile telephones to talk or text while operating a motor vehicle. The House Finance Committee does not include this proposed legislation in the FY 2009 budget. 10. Good Driver Fees to $35. The House Finance Committee does not concur with the Governor’s proposal to increase fees for traffic violations dismissed based on the operator’s good driving record from the current $25 to an amount equal to the fine that would have been collected absent the dismissal. The House Finance Committee recommends increasing the fee for good driver dismissals to a flat rate of $35, which would generate $265,000 in revenues for FY 2009. The Governor’s proposal would have generated additional revenues of $1.1 million in FY 2009 based on an average increase for each dismissal of $40 over the current $25 fee. The House Finance Committee’s proposal would generate $265,000, or $835,000 less than included in the Governor’s budget. 11. Newborn Screening Indirect Recovery. The House Finance Committee adds $0.2 million in revenues by applying the ten percent indirect cost charge to Department of Health’s new newborn screening restricted receipt. The Committee recommends passage of Article 28 to establish a new restricted receipt account for the existing newborn hearing and screening program, as recommended by the Governor. His proposal, however, exempted the account from the overhead charge. 12. Olmstead Grant. The House Finance Committee recommends additional revenues of $20,000 to reflect receipt of an Olmstead Grant subsequent to the Governor’s budget submission for both FY 2008 and FY 2009. The funds will be deposited as general revenues, and a general revenue expenditure account will be created to allow grant awards to eligible youth. The three-year award is received through a private foundation and is awarded for youth with either physical or mental disabilities to ensure that these youth have the opportunity to live more independently, engage in employment, and live with or at minimum, closer to their families. 13. State Police Class Fees. The House Finance Committee recommends $210,000 from revenue fees associated with operating a state police recruit training class in FY 2009 and adjusts the revenues accordingly. The Governor’s original recommended budget did not include a State Police recruit training class. 14. Resource Recovery. Between 2000 and 2006 the Rhode Island Resource Recovery Corporation purchased 171.99 acres of land to be used primarily for the development of the Southern Industrial Park. In FY 2009, the Corporation plans to sell 20.58 acres of this land for a total of $4.6 million. The House Finance Committee includes $3.5 million of additional transfers to state general revenues for FY 2009 for a total transfer of $7.5 million. 15. RIHEBC. The House Finance Committee recommends that the Rhode Island Health and Educational Building Corporation transfer $1.1 million to the state for FY 2009. A portion of this reflects the $754,000 that the Corporation has pledged to pay the salary and benefit costs for the 3.0 positions that oversee the school construction program in the Department of Elementary and Secondary Education’s budget and for 4.0 contract positions in the Department of Health. The Corporation has indicated that this is a three-year commitment to fund these positions. The Corporation also has



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additional revenues available from which it makes approximately $350,000 in discretionary grants annually.

Expenditure Changes

Administration 16. Capital - Affordable Housing. The enacted budget includes $7.5 million from Rhode Island Capital Plan funds for the Neighborhood Opportunities program, which provides grants or low interest loans for the rehabilitation of dilapidated housing units or new construction as well as operating subsidies to reduce rents. The Governor’s revised budget removes this funding. It appears that there are new contractual obligations totaling $5.0 million for seven projects that would have been paid with the approved funds, of which approximately half are for capital funding and half are for operating subsidies. Subsequently, the Rhode Island Housing Resources Commission proposed changes in its regulations that would allow a portion of this to be paid for from the Affordable Housing Bonds approved by the voters in the November 2006. The House Finance Committee recommends a total of $5.0 million from Rhode Island Capital Plan funds, including $2.5 million each for FY 2008 and FY 2009 to fund the balance of these capital commitments. 17. Capital - DOIT Operations Center. The approved capital plan includes $9.0 million in FY 2008 from Rhode Island Capital Plan funds to acquire a new state of the art facility to house the state’s computer center. The Governor recommends that the funds provided for acquisition of a new state Data Center be used to convert the Training School’s administrative building at Pastore Center for that purpose when it is vacated by Department of Children, Youth and Families’ staff. The House Finance Committee shifts the total project cost to FY 2009 to reflect project delay. 18. Capital - Environmental Compliance. The House Finance Committee recommends a total project cost of $1.6 million to reflect historical spending patterns. The average actual expenditure for the last three fiscal years is $235,020. The plan includes $125,000 for FY 2008, $250,000 for FY 2009 with amounts increasing in $25,000 increments annually. The Governor’s budget consolidates the Environmental Compliance project with the Environment Mandates project and includes $3.5 million through FY 2013 to assist state agencies in maintaining compliance with all state and federal environmental rules and regulations. 19. Capital - Fueling Tanks Replacement. The Capital Budget includes $1.2 million from Rhode Island Capital Plan funds, of which $0.6 million each will be used in FY 2008 and FY 2009 to replace failing tanks at five of the 18 state-owned and operated fueling stations for state vehicles. The House Finance Committee recommends shifting $550,000 from FY 2008 to FY 2009 based on a project delay. 20. Capital - Ladd Center Water System. The Capital Budget includes $550,000 from Rhode Island Capital Plan funds for repairs to the water system at the Ladd Center. This includes $50,000 in FY 2008 for a study to determine whether there are more feasible options, such as replacing the water system with wells. The project has not started, and the House Finance Committee shifts the funding to reflect a one year delay. 21. Capital - McCoy Stadium Repairs. The enacted budget includes $1.9 million over five years for repairs at McCoy Stadium. The Governor does not recommend funding this project beyond FY 2008 and eliminates the remainder of asset protection funding from FY 2009 through FY 2012. The



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Committee does not concur and provides funding consistent with the approved plan, including $432,500 for FY 2009, $152,511 for FY 2010 and $372,500 for both FY 2011 and FY 2012. 22. Capital - Old State House. The Capital Budget includes $1.0 million, including $0.5 million each in FY 2008 and FY 2009 from Rhode Island Capital Plan funds for various renovations at the Old State House. The House Finance Committee shifts FY 2008 funding to FY 2009 based on projected expenditures. 23. Capital - Pastore Center Power Plant. The House Finance Committee recommends $1.6 million less Rhode Island Capital Plan funds for FY 2009 based on anticipated expenditures. Total funding is consistent with the Department’s request and the approved plan when combined with funds from Certificates of Participation. The approved plan included a total of $4.1 million from Rhode Island Capital Plan funds to continue work on the Central Power Plant in the Pastore Center to bring one of the boilers to a high state of reliability. The Governor had included $1.5 million more than requested, which reflected $0.9 million less from Rhode Island Capital Plan funds and use of $2.6 million from previously approved Certificates of Participation. 24. Capital - Pastore Center Bldg. Demolition. The Capital Plan includes a total project cost of $1.6 million from Rhode Island Capital Plan funds to demolish buildings A and D in the Pastore Center. This includes $250,000 for FY 2009, $800,000 for FY 2010 and $550,000 for FY 2011. The House Finance Committee recommends a different spread of funding over the three years based on the availability of Rhode Island Capital Plan funds. It would still begin in FY 2009, but with $125,000 instead of $250,000. 25. Capital - Pastore Center Fire Code. The Governor’s Capital Budget includes $3.7 million from Rhode Island Capital Plan funds to be used through FY 2011 to install and upgrade existing fire alarm and sprinkler systems on the Pastore Center and the Zambarano Campus of Eleanor Slater Hospital. The House Finance Committee provides $1.4 million less than recommended based on revised project costs. This includes reductions of $0.4 million in FY 2009 and $0.5 million each in FY 2010 and FY 2011. 26. Capital - Pastore Center Utilities. The Governor’s Capital Budget includes $9.8 million in total expenditures to be used through FY 2013 for utilities upgrade in the Pastore Center. The Department indicates that $0.2 million of the budgeted $0.5 million will be used in FY 2008. The House Finance Committee recommends total project cost; however, reduces FY 2008 funding to reflect anticipated expenditures. The recommendation includes a shift of $1.0 million from FY 2009 and FY 2010 to FY 2011 and FY 2012 based on historical spending patterns. Capital – Registry. The Governor’s Capital Budget includes a total project cost of $17.9 million to renovate the Forand Building to be the new home of the Registry of Motor Vehicles. This includes $0.4 million from Rhode Island Capital Plan funds in FY 2008 for architectural and engineering studies and $17.5 million from Certificates of Participation. The House Finance Committee recommends using Rhode Island Capital Plan funds in lieu of debt issuance. This is estimated to save $0.5 million from debt service in FY 2009 and $1.4 million per year thereafter for 19 years. 27. Capital - Virks Bldg. Renovations. The Governor recommends debt issuance of $6.4 million to renovate the Virks Building in the Pastore Center to be used as office space by human services agencies. The House Finance Committee recommends $6.4 million from Rhode Island Capital Plan funds in lieu of debt issuance and reduces budgeted debt service accordingly. This saves $0.2 million in debt service in FY 2009 and $0.7 million per year thereafter for 19 years.



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28. Capital - Washington County Govt. Ctr. The Capital Budget includes $160,000 from Rhode Island Capital Plan funds to repave the parking lot, elevator repairs, and fire code compliance work at the Washington County Government Center in FY 2010. The House Finance Committee advances these expenditures to FY 2009 to reflect the Department’s capital budget request. 29. Consultants - Hewitt Associates. The House Finance Committee does not concur with the Governor’s recommendation to provide $87,000 above the enacted level of $100,000 from general revenues for contractual services with Hewitt Associates to help with a Request for Proposal on short-term life insurance disabilities and other work on an as needed basis. 30. Consultants - Outside Legal Services. The FY 2008 enacted budget includes $100,000 from general revenues for outside legal services relating to labor relations. The Governor’s FY 2009 budget provides another $160,000 for these services. The House Finance Committee does not concur with the increase and recommends the enacted amount of $100,000. 31. Contingency Fund. The 2007 Assembly transferred the contingency account from the Department of Administration to the Office of the Governor and provided $100,000 in funding. The Governor retains the FY 2008 appropriation fund in his Office in FY 2008 and includes a supplemental appropriation in the Department of Administration. For FY 2009, the Governor eliminates the contingency account in his Office and recommends $1.0 million in the Department of Administration. The House Finance Committee does not concur with the appropriation in the Department of Administration. The Committee recommends an appropriation of $500,000 in the Office of the Governor. 32. Debt Service - Forand and Virks. The Governor recommends that the state borrow $24.0 million through appropriations backed Certificates of Participation to renovate the Forand building to be the new home of the Registry of Motor Vehicles and to renovate the Virks building to be used as office space by human services agencies. The estimated annual debt service is $2.1 million for 20 years. The House Finance Committee recommends using $23.0 million of Rhode Island Capital Plan funds for the renovations and reduces budgeted debt service accordingly. 33. Debt Service - School for the Deaf. The 2006 Assembly authorized $31.3 million from Certificates of Participation to construct a new 91,400 square foot School for the Deaf on state owned land in Lincoln. The FY 2009 Capital Improvement Plan programs the expenditures at $4.0 million for FY 2008, $17.2 million for FY 2009 and $10.0 million for FY 2010. The House Finance Committee includes a revised debt authorization to reflect a site change and a debt service reserve fund and provides $1.3 million of pay-go funding for the first year’s construction cost. This is estimated to save $2.6 million of debt service costs in FY 2009. 34. Debt Service – TANS. The House Finance Committee recommends an additional $4.9 million for costs associated with short-term borrowing in anticipation of tax revenues, also called tax anticipation notes. The borrowing will be increased from budgeted estimates to cover the cost of initial payments from the Historic Preservation Tax Credit Fund and will be repaid upon issuance of those bonds. The interest rate on those new bonds is significantly higher than the interest on the tax anticipation notes. 35. EDC. The House Finance Committee recommends general revenue expenditures of $5.3 million for the Economic Development Corporation. This reflects a reduction of 15.0 percent for a general revenue savings of $935,000. The Governor’s FY 2009 recommended budget included $6.2 million.



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Funding is passed through the Department of Administration’s budget and is used for the Corporation’s general operating budget. 36. Energy Office Restricted Receipts. The budget adopted by the 2008 Assembly did not include the Governor’s proposal to create five restricted receipt accounts to support the Office of Energy. The House Finance Committee includes the legislation in the FY 2009 budget and reduces budgeted restricted receipt expenditures from $15.1 million to $2.5 million to allow the receipts to accrue. 37. Fire Safety Code Board. The House Finance Committee recommends transferring the Fire Safety Code Board of Appeal and Review to the Department of Administration and provides $0.3 million for staffing and operating expenses consistent with the Governor’s recommended budget. The 2007 Assembly had included the Board for merger into a new Department of Public Safety; however the Governor proposed leaving it a stand alone agency noting that it was not related to emergency response and law enforcement and was better aligned to the functions of the Building Code Commission within the Department of Administration. 38. General Revenue Sharing to FY 2008. The House Finance Committee recommends an additional $96,011 to freeze each community’s aid from the General Revenue Sharing Program at the FY 2008 revised level of $55.1 million. Distributions to communities for FY 2009 do not reflect updated data, as was proposed in the Governor’s budget. 39. Legal Staff - DOT and DLT. The Governor’s budget includes $0.1 million from general revenues to fund a legal position previously transferred to the Department of Administration from the Department of Labor and Training, which noted that its federal resources are not available since this individual is not doing work pertaining to the Department. The Governor’s budget also includes $0.3 million to fund 3.0 legal positions from the Department of Transportation. These positions were previously paid on an 80.0 percent gasoline tax and 20.0 percent federal funds basis; however, current workloads did not secure the budgeted federal share and the Governor provided general revenues. The House Finance Committee does not concur with shift the to general revenues and does concur with the transfer of positions. 40. Sheriffs and Marshals to DOA. The Governor’s budget includes the transfer of the Sheriffs Division to the Department of Public Safety. The House Finance Committee recommends retaining the Division within the Department of Administration and provides $15.5 million from general revenues and staffing of 177.0 positions, consistent with the Governor’s recommended budget. 41. Worksite Wellness from Health. The House Finance Committee recommends shifting $275,000 from general revenues for the worksite wellness program from the Department of Health to the Department of Administration, based on a Governor’s budget amendment. The worksite wellness program was created to improve wellness programs for state employees and their families. The Department of Health contracted with the University of Rhode Island to operate the program.

Business Regulation 42. Office of Health Commissioner FTE. The House Finance Committee recommends eliminating 1.0 full-time equivalent position and $85,000 in the Office of the Health Insurance Commissioner’s budget. This Office was created by the 2004 Assembly, which provided 3.0 full-time equivalent positions to support the work of the Office. The Health Insurance Commissioner is appointed by the Governor and is responsible for guarding the solvency of health insurers and protecting the interest of



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consumers. The Department indicates that there are currently 5.0 positions supporting the work of the Office.

Labor and Training 43. Central Management. The House Finance Committee recommends adding $4,126 from available restricted receipts for Central Management operating expenses based on a Governor’s budget amendment. 44. Income Support. The House Finance Committee recommends adding $148,741 to Income Support operating expenses based on a Governor’s budget amendment. 45. Injured Workers Services. The House Finance Committee recommends adding $38,633 from available restricted receipts to Injured Workers Services operating expenses based on a Governor’s budget amendment. The Injured Workers Services program, $11.6 million from all funds, monitors procedures and payments made by insurance carriers to employees unable to work because of injuries sustained on the job. 46. Job Development Fund. The Governor’s budget includes $3.0 million from restricted receipts to support initiatives through the Human Resource Investment Council. A subsequent amendment indicated that the budget is inadvertently understated by $5.8 million, and the House Finance Committee recommends restoring the omitted funding. 47. Police and Fire Benefits. As part of his revised budget the Governor proposed freezing eligibility for police and firefighter’s benefits including annuities and educational awards to those claims in effect prior to April 1, 2008. The Governor’s FY 2009 budget assumed savings from the passage of this legislation; however, the Assembly did not enact this legislation. The House Finance Committee recommends adding $0.2 million for FY 2009 for police and fire benefits. 48. Workforce Development. The House Finance Committee recommends adding $160,351 from available restricted receipts for Workforce Development operating expenses based on a Governor’s budget amendment. The Workforce Development Services program, $26.3 million from all funds, offers support to workers in the form of direct job search assistance and labor market information.

Department of Revenue 49. Pawtucket Registry Wiring. The Department requested expenditures of $230,000 from general revenues including $135,000 for FY 2008 and $95,000 for FY 2009 for electrical wiring in the Apex Building in Pawtucket. The Governor did not recommend funding for the revised budget based on the assumption that the Division of Motor Vehicles would be relocated to the Pastore Center. However, the budget inadvertently included funding for the electrical wiring in error. The House Finance Committee excludes the funding to correct the error. 50. Single License Plate. Current law requires that each registered vehicle display a license plate on the front and the back of the vehicle. The Governor proposes legislation with his revised budget to allow the issuance of a single plate to be displayed on the back of the vehicle and includes a general revenue savings of $239,000 from production costs in his revised budget. The House Finance Committee does not concur and provides the enacted amount of $540,000 for production costs.



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51. West Warwick Registry. The House Finance Committee does not concur with the Governor’s recommendation to close the Division of Motor Vehicles’ West Warwick branch at this time and restores $331,884 from general revenues for 4.0 positions and rental expense.

Lieutenant Governor 52. Operating Adjustments. The House Finance Committee recommends adding $16,498 from general revenues to the Governor’s FY 2009 recommended budget for the Lieutenant Governor to fund a projected shortfall in personnel expenditures.

Secretary of State 53. Elections Expenses. The House Finance Committee recommends adding $180,000 from general revenues for election expenses in FY 2009, including $120,000 for outside legal services necessary for challenges that occur during statewide general elections and $60,000 for printing based on historical spending data from prior presidential elections. The Governor‘s recommendation reduced requested elections expenses. 54. Municipal Elections. The House Finance Committee recommends $50,000 to restore printing costs of ballots for all local special elections, and referenda questions being printed on colored paper. The Governor had proposed legislation to require municipalities to reimburse the Office of Secretary of State for printing ballots for special elections to save $10,000. He also proposed eliminating use of colored paper for referenda questions to save $40,000. 55. Personnel and Operating. The House Finance Committee recommends $274,000 from general revenues to restore funding for personnel and operating expenses reduced in the Governor’s budget. This includes $219,000 for salaries and benefits and $55,000 for operations of the State Archives program to cover an anticipated loss of revenues collected as restricted receipts from the Historical Records Trust fund. 56. RI Government Owners' Manual. The House Finance Committee recommends $25,000 to restore printing costs required for dissemination of the Government Owner’s Manual. The Governor had proposed legislation to eliminate the printing of the manual that is produced every two years and require its dissemination through the Secretary of State’s website.

General Treasurer 57. Retirement System Overtime. The House Finance Committee recommends authorizing $45,000 of additional overtime expenditures for the retirement system to handle the expected surge in employee retirements during FY 2009. 58. Unclaimed Property Claims. The House Finance Committee recommends adding $0.2 million for unclaimed property claims for FY 2009 to reflect the estimate adopted by the May 2008 Revenue Estimating Conference. Claims are shown as expenditures in the Office of the General Treasurer’s operating budget. 59. Unclaimed Property Transfer. The House Finance Committee recommends lowering the unclaimed property transfer for FY 2009 by $0.2 million to reflect the estimate adopted by the May 2008 Revenue Estimating Conference. Transfers of unclaimed property to the state are shown as expenditures in the Office of the General Treasurer’s operating budget.



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Governor's Office 60. Contingency Fund. The Governor’s FY 2009 budget includes $1.0 million for the contingency fund in the Department of Administration’s budget, reversing the decision of the 2007 Assembly which transferred the fund from the Department of Administration’s budget to the Governor’s Office budget. The House Finance Committee does not concur and recommends an appropriation of $500,000 in the Office of the Governor.

Office of Health and Human Services 61. OHHS Centralization Reversal. The House Finance Committee concurs with the Governor’s budget amendment to shift ten of the 96 positions he recommended be part of the centralization of legal and fiscal services throughout the five health and human services agencies into the Office of Health and Human Services back to the individual agencies and reduce funding by $957,096 from all funds, $531,669 from general revenues. The positions include five to the Department of Children, Youth and Families, four to the Department of Health and one to the Department of Mental Health, Retardation and Hospitals. This action is consistent with a subsequent Governor’s budget amendment.

Children, Youth and Families 62. Financial and Legal Services. The Governor recommended $5.1 million from general revenues for contracted services for the Department of Children, Youth, and Families for FY 2009, including $130,000 for legal services and $600,000 for financial consultants. The House Finance Committee recommends a ten percent reduction to these legal and financial services for a total savings of $73,000 from general revenues. 63. OHHS Centralization Reversal. The House Finance Committee shifts $409,088 from all funds, $202,498 from general revenues and $206,590 from federal funds, and 5.0 full-time equivalent positions from the Office of Health and Human Services back to the Department of Children, Youth and Families. The Governor’s FY 2009 budget included a centralization of fiscal, and business positions within the Office of Health and Human Services, that the Governor proposed to reverse by an amendment to the budget. 64. Olmstead Grant. The House Finance Committee recommends $20,000 to reflect general revenue expenditures through receipt of an Olmstead Grant, which was deposited to general revenues. The award is received through a private foundation and is to be used for youth with either physical or mental disabilities to ensure that these youth have the opportunity to live more independently, engage in employment, and live with or at a minimum, closer to their families.

Elderly Affairs and Advocacy 65. Comm. on Deaf and Hard of Hearing. The House Finance Committee does not concur with the Governor’s recommendation in Article 43 to consolidate the duties and functions of the Commission on the Deaf and Hard of Hearing into a new Department of Elderly Affairs and Advocacy. The Committee shifts the $368,807 and 3.0 positions back to the Commission on the Deaf and Hard of Hearing as a stand-alone agency. 66. Comm. on Disabilities. The House Finance Committee does not concur with the Governor’s recommendation as part of Article 43 to consolidate the duties and functions of the Governor’s Commission on Disabilities into to the new Department of Elderly Affairs and Advocacy. The



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Committee shifts the $911,985 from all sources including $413,651 from general revenues and 4.6 positions back to the Governor’s Commission on Disabilities as a stand-alone agency. 67. Community Elder Information Specialists. The House Finance Committee recommends adding $65,000 to continue funding of the Community Elder Information Specialists program at the FY 2008 revised level of $177,405. The Governor proposed eliminating the program in FY 2009, however he erroneously reduced program expenditures by only $187,595, leaving $112,405 in the budget. 68. May Revenue Gas Tax Adj. The House Finance Committee includes $55,000 less expenditures from gas tax funds for the paratransit program based on the reduction in the gas tax estimate adopted by the May Revenue Estimating Conference. The Department receives a dedicated 1-cent per gallon of the Rhode Island gas tax to support transportation services for the elderly. The conference reduced the yield from $4,685,000 to $4,630,000 for each penny.

Health 69. Community Health Centers Caseload. The House Finance Committee adds $1.2 million from general revenues to support additional medical services that will likely be provided at the state’s 12 community health centers from a potential increase in patients seeking medical care resulting from the elimination of state funded RIte Care benefits for children who are not eligible for Medicaid. 70. Health Information System. The House Finance Committee adds $0.4 million to support a statewide health information system. Funding is awarded to the Department of Health from the Rhode Island Health and Educational Building Corporation however the funds were not included in the Governor’s recommended budget. This action corrects that oversight. The funding will support four contracted positions: a technical manager, program assistant, program development specialist and provider and department liaison. There is also an offsetting revenue adjustment. 71. OHHS Centralization Reversal. The House Finance Committee recommends shifting 10 of the 96 positions that were part of the centralization of legal and fiscal services throughout the five health and human services agencies into the Office of Health and Human Services back to the individual agencies. This includes four to the Department of Health and increases funding by $417,603 from all funds, $198,766 from general revenues. This action is consistent with a subsequent Governor’s budget amendment. 72. RI Airport Corporation Health Study. The House Finance Committee includes $100,000 from funds provided by the Rhode Island Airport Corporation for a health study, consistent with state statute, developed in consultation with the Department of Environmental Management, and the air quality monitoring public advisory committee. The study is to determine if, and to what extent, air pollution generated by airport activities affects the health of area residents based, to the extent feasible, on established health benchmarks. This is consistent with a Governor’s budget amendment. 73. Worksite Wellness to Administration. The House Finance Committee recommends shifting $275,000 from general revenues for the worksite wellness program from the Department of Health to the Department of Administration, based on a Governor’s budget amendment. The worksite wellness program was created to improve wellness programs for state employees and their families; the Department contracted with the University of Rhode Island to operate the program.



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Human Services 74. Caseload Estimating Conference. The House Finance Committee recommends a $6.8 million reduction of which $11.9 million is from general revenues to adjust the Governor’s budget recommendation for the May Caseload Conference estimates for cash assistance caseloads and medical assistance expenditures for FY 2009. This is $9.4 million less from general revenues for medical assistance and $2.5 million less for cash assistance. The caseload estimators meet twice per year to estimate cash and medical assistance expenditures to provide a more stable and accurate method of financial planning and budgeting per Rhode Island General Law 35-17-1. 75. Child Care Provider Rates. The House Finance Committee recommends $1.1 million from general revenues to provide a rate increase to the 1,137 child care providers in the state. The Governor included Article 28 in 2008-H 7390 to eliminate the biennial rate adjustment for the child care providers. Child care providers last received a rate adjustment January 1, 2004 based upon the 2002 market rate survey. The new rate will be half of the change that would be required for an adjustment to the 2004 survey rates. 76. Community Hospital Uncompensated Care. The House Finance Committee recommends adding $9.6 million from general revenues to the Department of Human Services to make additional payments to community hospitals for their uncompensated care cases. Under current law the community hospitals uncompensated payment for FY 2009 is $99.5 million from all funds and $47.2 from general revenues. No addition medical funds are allowed to match the $49.6 million due to federal caps. 77. Crossroads Women's Shelter. The House Finance Committee recommends providing $360,000 to the Crossroad’s Women’s Shelter in Providence. The Crossroads Women’s Shelter provides homeless women with the opportunity to find employment and housing opportunities. This would continue the women’s unit opened in January 2008, which was funded by the Legislature. 78. Head Start. The House Finance Committee does not concur with the Governor’s recommendation to eliminate 400 children from the state funded Head Start program and provides $1.0 million to continue to provide Head Start services to 142 children based on federal rates. This is in addition to the $16.7 million of federal funding provided to approximately 2,370 children, at a cost of $7,054 per year per child. 79. Hospital DRG Reimbursement System. The House Finance Committee does not concur with the Governor’s proposal to not utilize diagnostic related group payments to hospitals based on diagnoses, procedures, and patient age. Instead it would stay with the current hospital reimbursement system in which the state reimburses individual in-state hospitals based on a portion of the allowable costs for inpatient and out-patient services. This reduces proposed expenditures by $8.4 million including $4.0 million from general revenues.

Mental Health, Retardation and Hospitals 80. Capital - Community Facilities Fire Code. The FY 2008 approved capital plan includes $7.0 million from Rhode Island Capital Plan funds to install new and upgrade existing fire alarm and sprinkler systems throughout the community developmental disability facilities. As part of 2008-H 7204 Substitute A, $0.2 million from this project was shifted to the Eastman House project, and the House Finance Committee recommends further reducing funding for FY 2008 by $0.8 million based on updated spending information. The Committee provides $4.9 million, $3.8 million for the five



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year capital plan and includes $0.8 million annually for FY 2009 through FY 2013. The Department spent $0.4 million for FY 2008, $0.8 million less than the approved capital plan. 81. Capital - Mental Health Residences. The Governor’s recommended five year capital plan includes a total of $5.5 million from Rhode Island Capital Plan funds to provide housing to behavioral health clients through the thresholds program in cooperation with the Rhode Island Housing Mortgage and Financing Corporation. The Department did not expend the $0.4 million appropriated for the project for FY 2008. The House Finance Committee recommends reducing funding accordingly for FY 2008 and provides $3.0 million for the five year capital plan, $2.5 million less than the Governor’s recommendation which appears to be consistent with current spending. 82. Capital - MR Comm. Facilities Repair. The Governor’s recommended five year capital plan includes a total of $10.0 million for asset protection projects at the state’s 270 group homes for the developmentally disabled. The Department spent $1.3 million for FY 2008, $0.8 million less than the approved plan. The House Finance Committee recommends reducing funding for FY 2008 accordingly and provides $8.0 million for the five year capital plan, $2.0 million less than the Governor’s recommendation. This includes $1.5 million for FY 2009, $1.6 million for FY 2010 and FY 2011 and $1.7 million for FY 2012 and FY 2013 and appears to be consistent with current spending for asset protection. 83. Capital - Pastore Medical Center Rehab. The Governor’s recommended five-year capital plan includes a total of $8.0 million from Rhode Island Capital Plan funds for ongoing maintenance of 11 buildings at the Pastore Center. The Department did not spend any funding appropriated for maintenance projects in FY 2008, and the House Finance Committee recommends shifting unspent FY 2008 funding and reducing FY 2009 funding by $250,000. 84. Capital - Slater Hospital Consolidation. The Governor’s recommended five year capital plan includes a total of $8.2 million from Rhode Island Capital Plan funds to consolidate Eleanor Slater Hospital operations from five buildings into three. This includes $3.7 million for FY 2008 and $4.5 million for FY 2009. The consolidation plan has changed and the Department has not spent any funding appropriated for the project in FY 2008 since the new plan has not yet been approved. The House Finance Committee recommends shifting funding by one year and includes $3.7 million for FY 2009 and $4.5 million for FY 2010. 85. Capital - Slater HVAC & Elevators. The Governor’s recommended five year capital plan includes a total of $4.0 million from Rhode Island Capital Plan funds for a new HVAC and elevator project at Eleanor Slater Hospital including $0.6 million for FY 2009, $2.0 million for FY 2010 and $1.5 million for FY 2011. The House Finance Committee concurs with the recommended funding however shifts funding out one year for an anticipated delay in project start up and includes $5,000 for FY 2009, $550,000 for FY 2010, $2.0 million for FY 2011 and $1.5 million for FY 2012. 86. CMAP to Actual Levels. The House Finance Committee recommends savings of $400,000 from general revenues for community medical assistance drug expenses based on prior years spending. This is consistent with the FY 2008 revised budget which was also reduced based on year to date projections. 87. Dental Services Expansion Services. The House Finance Committee does not concur with the Governor’s recommendation to expand dental services at Eleanor Slater Hospital and reduces funding by $0.8 million from all funds, $0.4 million from general revenues.



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88. Developmental Disabilities Client Revenue. The House Finance Committee shifts $2.2 million from revenue received by clients in the state-run developmental disabilities program to a new restricted receipt account. The clients currently receive a monthly supplemental security income check that supports their living expenses, such as food and utilities. The payments are currently deposited in a separate account in the Office of the General Treasurer and do not appear as an expenditure in the Department’s budget. This action is consistent with the Governor’s budget amendment and coincides with the food stamp initiative proposal also included as an amendment 89. Dev. Disabilities Food Stamp Initiative. The House Finance Committee recommends savings of $400,000, including $160,000 from general revenues and allows expanding access to the food stamp program for residents in the state-run group home system for the developmentally disabled. This is consistent with a Governor’s budget amendment and coincides with Section 1 of Article 28 which shifts the monthly supplemental security income payments received by the residents to a restricted receipt account. The monthly payment supports the resident’s room and board costs, including utilities and food. The state will assess a monthly rental fee to the clients, increasing monthly expenses and allowing them access to additional food stamps. 90. Eleanor Slater Hospital Medical Supplies. The House Finance Committee does not concur with the recommendation to increase spending for medical supplies at Eleanor Slater Hospital and reduces funding by $0.3 million from general revenues. 91. Eleanor Slater Motor Vehicle Repairs. The House Finance Committee does not concur with the Governor’s recommendation to provide additional expenses for maintenance repairs including motor vehicles and reducing funding by $129,991 from general revenues. 92. Hospital Expenses Fund Shift. The House Finance Committee adds $2.2 million from general revenues with an offsetting reduction to federal funds to adjust centralized power plant expenses at the Department of Administration, which were incorrectly budgeted at the Department of Mental Health, Retardation and Hospitals. 93. Integrated Mental Health Grants. The House Finance Committee reduces funding by $0.8 million from general revenues to adjust the Governor’s budget which includes additional funding for integrated mental health grants that are not allocated for any purpose or awarded to any provider. It appears that this is a balance retained in his budget after the Governor recommended his proposed savings. 94. New Lifespan Contract Services. The House Finance Committee does not recommend the proposed new contract with Lifespan to provide psychiatric services at Eleanor Slater hospital and reduces funding by $0.6 million, $0.3 million from general revenues. 95. OHHS Centralization Reversal. The House Finance Committee recommends shifting 10 of the 96 positions that were part of the centralization of legal and fiscal services throughout the five health and human services agencies into the Office of Health and Human Services back to the individual agencies. This includes one to the Department of Mental Health, Retardation and Hospitals and increases funding by $130,403 from general revenues. This action is consistent with the Governor’s budget amendment. 96. Special Medical Clinics at Eleanor Slater Hospital. The House Finance Committee does not recommend the proposal to expand the special medical clinics available to the developmentally disabled



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population residing in the group homes to include other Department clients and reduces expenses by $1.1 million, $0.5 million from general revenues. 97. TASC. The House Finance Committee does not recommend the elimination of the Treatment Alternatives to Street Crime (TASC) program at the Department of Mental Health, Retardation and Hospitals and restores $520,000 from general revenues and six positions for the activity that provides services to people who have been convicted of a second drunk driving offense.

Deaf and Hard of Hearing 98. Maintain Separate Agency Status. The House Finance Committee does not concur with the Governor’s recommendation in Article 43 to consolidate the duties and functions of the Commission on the Deaf and Hard of Hearing into a new Department of Elderly Affairs and Advocacy. The Committee shifts the $368,807 and 3.0 positions back to the Commission on the Deaf and Hard of Hearing as a stand-alone agency.

Governor's Commission on Disabilities 99. Maintain Separate Agency Status. The House Finance Committee does not concur with the Governor’s recommendation as part of Article 43 to consolidate the duties and functions of the Governor’s Commission on Disabilities into to the new Department of Elderly Affairs and Advocacy. The Committee shifts the $911,985 from all sources including $413,651 from general revenues and 4.6 positions back to the Governor’s Commission on Disabilities as a stand-alone agency.

Elementary and Secondary 100. Capital - MET School East Bay. The House Finance Committee recommends providing $1,100,000 from Rhode Island Capital Plan funds for FY 2009 for the East Bay campus of the Met School, $5.0 million from Rhode Island Capital Plan funds for FY 2010 and $4.0 million for FY 2011. The school opened in August 2006 with 30 students. The school will add 30 students each year until full capacity of 120 students is reached in FY 2010. 101. Central Falls. The Governor’s budget includes a $3.8 million or 3.0 percent increase in support for the Central Falls School District for FY 2009. The district was placed under complete control of the Department of Elementary and Secondary Education in FY 1993, and the state is responsible for 100 percent of the education cost for the district. The House Finance Committee recommends providing the FY 2008 enacted level of $43.8 million consistent with all other districts and reduces the Governor’s budget by $1.3 million. 102. Hasbro Children's Hospital. The House Finance Committee recommends restoring the $100,000 from general revenues provided annually to support educational personnel, supplies and materials for the students in Hasbro Children’s Hospital. The Governor’s FY 2008 revised budget includes legislation to eliminate these funds and his FY 2009 budget recognizes savings of $100,000. The House Finance Committee does not concur with the legislation and restores the funding. 103. Met School – Shepards. The House Finance Committee recommends general revenue savings of $0.7 million from the closure of the Met School’s Shepard location. The Shepard building’s primary use is as the Providence Campus of the University of Rhode Island. It also houses the Department of Elementary and Secondary Education. The Shepard location was originally intended to be temporary quarters until permanent locations for the Met School were built. The School has



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decided to close the Shepard location and consolidate those students into the other five Providence campuses. 104. Professional Development. The House Finance Committee recommends reducing the appropriation made to support teacher professional development in all districts through a number of Department programs by $0.1 million. This funding is used to support the Physics First program, a technology fellow, and mathematics and science activities. FY 2009 funding would be $0.5 million. 105. School Breakfast. The House Finance Committee recommends restoring $300,000 from general revenues for the school breakfast program to provide administrative cost reimbursement to districts. The Governor eliminates the $600,000 included in the enacted budget, which would cause costs to shift to the districts. Food is paid from federal sources. 106. School Construction Program Staff. The Governor’s FY 2009 recommended budget includes a $0.4 million grant from the Rhode Island Health and Educational Building Corporation to pay the salary and benefit costs for the 3.0 positions that oversee the school construction program in the Department of Elementary and Secondary Education’s budget. The Budget Office indicates that this is a three-year commitment to fund these positions. The House Finance Committee concurs and provides the $351,207 from general revenues and the same amount in offsetting revenue. 107. Teacher Retirement Prior Years. The House Finance Committee recommends adding $2.2 million for teacher retirement costs for payments due to the system for FY 2003 through FY 2007 that were mistakenly never billed to the state by the System. 108. Urban Education Task Force. The House Finance Committee does not concur with the Governor’s proposed new initiative to add $60,000 from general revenues for an urban education task force. The Governor recently established an urban education task force charged with improving student performance in Rhode Island’s urban core school districts. It is chaired by the Executive Director of the Annenberg Institute for School Reform at Brown University and will make recommendations by January 2009. The task force is supported by a number of federal and local grants and the Governor recommended $60,000 from general revenues to support the task force for FY 2009. The House Finance Committee does not concur with this recommendation.

Higher Education 109. Capital - CCRI Fire Code and HVAC. The approved capital plan includes $1.7 million in each FY 2008 and FY 2009 to install a new HVAC system and state-of-the-art sprinkler system for approximately 500,000 square feet of space at the Knight and Flanagan Campuses. Based on project delays, the House Finance Committee recommends shifting $1.6 million from FY 2008 to FY 2009. This would provide $0.1 million for FY 2008 and $3.3 million for FY 2009. 110. Capital - CCRI Knight Campus Nursing. Based on delays in beginning the project, the House Finance Committee recommends shifting FY 2008 funding for the feasibility study for a new facility at the Knight Campus to support the nursing program to FY 2009. This would provide $125,000 for FY 2009. The 2006 Assembly appropriated $125,000 from Rhode Island Capital Plan funds to conduct a feasibility study for a new facility at the Knight Campus to support the nursing program. 111. Capital - RIC Third Entrance. The House Finance Committee recommends providing $600,000 from Rhode Island Capital Plan funds for FY 2009 so that Rhode Island College can purchase six parcels of land bordering the campus from the Rhode Island College Foundation.



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Between 2000 and 2004, the Foundation purchased these parcels of land as they became available. The College would like to obtain this land to eventually construct a third entrance into the College from Fruit Hill Avenue. This is a separate project in the capital plan. The land is presently valued at $702,000. 112. Capital - URI Superfund Site Remediation. The approved capital plan includes $954,000 from Rhode Island Capital Plan funds for FY 2008 for expenses associated with the next phase of remediation of the Environmental Protection Agency designated Superfund site at the West Kingston Municipal Landfill and University of Rhode Island disposal area. The University has worked out a schedule with the Environmental Protection Agency and the United States Justice Department. Based on this schedule, the House Finance Committee recommends shifting $0.6 million from FY 2008 to FY 2009. 113. NGA Gates Foundation Grant. The House Finance Committee recommends $0.4 million from a Gates Foundation grant distributed by the National Governor’s Association. This money is used to support the work of the Governor’s PK-16 Council. Because this funding was received late in the year, it will be used to pay FY 2008 commitments.

Higher Education Assistance Authority 114. Grants. The House Finance Committee recommends providing $11.0 million for need based scholarships and grants distributed by the Higher Education Assistance Authority for FY 2009. This is $2.6 million less from general revenues than recommended by the Governor. Funding would include $6.5 million from general revenues and $4.5 million from tuition savings funds. These funds come from maintenance fees paid by out of state participants of the Tuition Savings Program that the Authority administers through Alliance Capital.

Corrections 115. Capital - Bernadette Guay Bldg. The Governor’s capital budget includes $981,644 in FY 2008 and $230,000 in FY 2009 from Rhode Island Capital Plan funds to complete roof, plumbing and HVAC repairs at the Bernadette facility of the Department of Corrections. The Department has not secured approval to begin the bid process for much of the remainder of the work, which would now not be possible to begin until FY 2009. The House Finance Committee recommends shifting the $700,000 of uncommitted funding to FY 2009. 116. Capital - New Women's Facility Study. The Governor recommends $100,000 from Rhode Island Capital Plan funds for FY 2009 for preliminary feasibility and design studies for a new women’s correctional facility. His five-year plan assumes issuance of $38.6 million of new debt in FY 2010 with expenditures of $15.0 million each in FY 2010 and FY 2011 with the remaining $8.6 million in FY 2013. The House Finance Committee does not concur with the use of Rhode Island Capital Plan funds for feasibility studies, which are more appropriately funded from operating budget resources. 117. Capital - Women's Unit Plumbing. The Governor’s capital budget includes $856,000 in FY 2008 from Rhode Island Capital Plan funds to complete the plumbing repairs and bathroom renovations at women’s facilities of the Department of Corrections. The Department will spend about $175,000 in FY 2008 on design work and replacement heaters, but not secured approval to begin the bid process for the rest of the work, which would now not be possible to begin until FY 2009. The House Finance Committee recommends shifting the $681,000 of uncommitted funding to FY 2009.



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118. Capital - Womens Unit Roof and General. The Governor’s capital budget includes $1.0 million in FY 2008 from Rhode Island Capital Plan funds to complete the renovations roof, masonry and general renovations project at women’s facilities of the Department of Corrections. The Department has not secured approval to begin the bid process for the roof work, which would now not be possible to begin until FY 2009 and could extend to FY 2010. The House Finance Committee recommends spreading the FY 2008 funding over two years, with $0.6 million for FY 2009 and $0.4 million for FY 2010. 119. Electronic Medical Records. The FY 2008 revised budget includes the $450,000 originally reappropriated by the Governor for the purchase of an electronic medical records system replacing the current paper file system. The House Finance Committee concurs with the Governor’s subsequent amendment to shift this expense to FY 2009. 120. Parole Board Victim Services. The House Finance Committee recommends adding $10,000 from federal funds for the Parole Board for increased funding for victim services from a grant it received from the Department of Justice. The funding was inadvertently excluded from the FY 2009 budget. 121. Radio Communications Equipment. The House Finance Committee recommends adding $62,000 from federal funds for the Department of Corrections to purchase radio communications equipment for its command staff, K-9 unit and Special investigation units. The grant is from Homeland Security funds passed through Rhode Island Emergency Management Agency and was recommended by the Governor in a budget amendment.

Judicial 122. Personnel and Operating. The House Finance Committee includes $2.4 million from general revenues for the Judicial Department for FY 2009. The Judiciary requested $86.1 million from general revenues for FY 2009, however the Governor recommended $82.6 million or $3.4 million less than requested and $2.3 million less than included in the FY 2008 enacted budget. The House Finance Committee recommends general revenue funding of $85.0 million for FY 2009 and includes $2.1 million for salaries and benefits, and $0.3 million for facilities maintenance of the various court buildings to put the budget more in line with historical spending patterns.

Military Staff 123. Metro Med. Response Funds to FY 2008. The House Finance Committee recommends shifting $50,051 from federal metropolitan medical response system funds from FY 2009 to FY 2008. The Metropolitan Medical Response System program assists highly populated jurisdictions to develop plans, conduct training and exercises, and acquire pharmaceuticals and personal protective equipment, to achieve the enhanced capability necessary to respond to a mass casualty event caused by a weapon of mass destruction terrorist act. 124. Terrorism Prevention Funds to FY 2008. The House Finance Committee recommends shifting $1.0 million from federal Homeland Security federal funds from FY 2009 to FY 2008. This funding is from the law enforcement terrorism prevention program and the shift to FY 2008 allows for a more rapid reimbursement of grants to local communities.



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Public Safety 125. Capital - Communications Towers. The House Finance Committee recommends shifting $2.4 million from Rhode Island Capital Plan funds from FY 2009 to 2010, and shifting the remaining $2.3 million to FY 2011 for the State Police Microwave and Technology Upgrade. The Governor’s capital budget recommends $7.1 million for FY 2009. The completion of this project will be delayed until the completion of the new State Police Headquarters in FY 2011. 126. Capital - Parking Areas. The House Finance Committee recommends shifting $175,000 from Rhode Island Capital Plan funds from FY 2010 and 2011 to 2009 for the State Police parking lot improvement project. This will allow for the State Police to complete this project in FY 2009. The Governor’s capital budget recommends $50,000 for FY 2009, $100,000 for FY 2010, and $75,000 for FY 2011. 127. Capital - State Police Headquarters. The House Finance Committee recommends reprogramming funding to reflect a construction schedule that occurs from FY 2008 through FY 2011. The Governor’s capital plan had construction completed by FY 2010. Based on updated scheduling, the Committee extends that one year with total funding of $26.0 million consistent with the Governor’s capital plan. 128. Sheriffs and Marshals to DOA. The House Finance Committee does not concur with the Governor’s recommendation to transfer the Sheriffs and Marshals to the Department of Public Safety. The Committee recommends the transfer of the program to the Department of Administration and provides $15.5 million from general revenues and staffing of 177.0 positions, consistent with the Governor’s recommended budget. 129. State Police Class June 21, 2009. The House Finance committee recommends $360,151 for the State Police to conduct the 53rd State Police Recruit Training Class in FY 2009. This funding will allow the State Police to recruit candidates from June 29, 2008 until July 20, 2008. In August the first round of testing and investigation of candidates would begin and would continue until April, 2009. The 53rd Recruit Training Class will begin June 21, 2009 and will graduate October 8, 2009, which is FY 2010. The Governor did not include this in his original FY 2009 budget submission. 130. E-911 Pictometry Project. The House Finance Committee recommends shifting $400,000 from a federal Emergency Management Agency grant from FY 2008 to FY 2009 to complete a pictometry database project. The Governor recommended providing $500,000 of federal Emergency Management Agency funds in FY 2008 however, due to delayed expenditures the house Finance Committee recommends shifting $400,000 to FY 2009.

Fire Safety Code 131. Incorporate into DOA. The House Finance Committee recommends transferring the Fire Safety Code Board of Appeal and Review to the Department of Administration and provides $0.3 million for staffing and operating expenses consistent with the Governor’s recommended budget. The 2007 Assembly had included the Board for merger into a new Department of Public Safety; however the Governor proposed leaving it a stand alone agency noting that it was not related to emergency response and law enforcement and was better aligned to the functions of the Building Code Commission within the Department of Administration.



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Environmental Management 132. Capital - Galilee Piers. The Governor recommends $4.8 million from FY 2009 through FY 2013 from Rhode Island Capital Plan funds for facility and infrastructure improvements at the Port of Galilee. Reconstruction of the south bulkhead is scheduled to begin in FY 2010, however a contractor has not been selected, and the Department could not provide an estimate for the cost of the reconstruction. The House Finance Committee recommends reducing the Rhode Island Capital Plan funds for FY 2009 through FY 2013 by $1.0 million. 135. Maintain CRMC as Separate Agency. The House Finance Committee does not concur with the Governor’s proposal to merge the staffs of the Coastal Resources Management Council and the Water Resources Board into the Department of Environmental Management and maintains them as separate agencies. The Committee shifts $1.5 million including $1.4 from general revenues and 6.0 positions back to the Water Resources Board. The Committee also provides $5.2 million including $1.9 million from general revenues and 30.0 positions for the Coastal Resources Management Council, which is $0.7 million, and 8.0 positions more than provided in the Governor’s recommendation. The proposed Department of Environmental Management budget is reduced by $6.0 million, including $2.6 million from general revenues and 28.0 positions to reflect the shifted funds and staff. 136. Maintain Water Resources Board. The House Finance Committee does not concur with the Governor’s proposal to merge the staffs of the Coastal Resources Management Council and the Water Resources Board into the Department of Environmental Management and maintains them as separate agencies. The Committee shifts $1.5 million including $1.4 from general revenues and 6.0 positions back to the Water Resources Board. The Committee also provides $5.2 million including $1.9 million from general revenues and 30.0 positions for the Coastal Resources Management Council, which is $0.7 million, and 8.0 positions more than provided in the Governor’s recommendation. The proposed Department of Environmental Management budget is reduced by $6.0 million, including $2.6 million from general revenues and 28.0 positions to reflect the shifted funds and staff.

Coastal Resources Management Council 137. Invasive Aquatic Species Mgmt. The Governor submitted an amendment to reflect additional federal funds for the Coastal Resources Management Council. The additional federal funds totaling $43,413 were added to recognize a new Rhode Island Aquatic Invasive Species grant. 138. Maintain Separate Agency Status. The House Finance Committee does not concur with the Governor’s proposal to merge the staffs of the Coastal Resources Management Council and the Water Resources Board into the Department of Environmental Management and maintains them as separate agencies. The Committee shifts $1.5 million including $1.4 from general revenues and 6.0 positions back to the Water Resources Board. The Committee also provides $5.2 million including $1.9 million from general revenues and 30.0 positions for the Coastal Resources Management Council, which is $0.7 million, and 8.0 positions more than provided in the Governor’s recommendation. The proposed Department of Environmental Management budget is reduced by $6.0 million, including $2.6 million from general revenues and 28.0 positions to reflect the shifted funds and staff.

Water Resources Board 139. Maintain Separate Agency Status. The House Finance Committee does not concur with the Governor’s proposal to merge the staffs of the Coastal Resources Management Council and the Water Resources Board into the Department of Environmental Management and maintains them as separate



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agencies. The Committee shifts $1.5 million including $1.4 from general revenues and 6.0 positions back to the Water Resources Board. The Committee also provides $5.2 million including $1.9 million from general revenues and 30.0 positions for the Coastal Resources Management Council, which is $0.7 million, and 8.0 positions more than provided in the Governor’s recommendation. The proposed Department of Environmental Management budget is reduced by $6.0 million, including $2.6 million from general revenues and 28.0 positions to reflect the shifted funds and staff.

Transportation 140. Capital - Cherry Hill/Lincoln Facility. The House Finance Committee recommends delaying funding for this project, for which none of the $625,000 of authorized Rhode Island Capital Plan funds has been spent, for one year to reflect a revised project schedule. The Governor recommends $0.6 million in FY 2008 and $0.7 million in FY 2009 to consolidate two Department of Transportation maintenance facilities into a new Smithfield location, which is currently occupied by the National Guard. Currently, a revised memorandum of understanding is being drafted between the Guard and the Department. This must be completed before renovations to the Smithfield facility can begin. 141. Capital – Maint. Facility Fire Alarms. The Governor recommends $0.6 million from Rhode Island Capital Plan funds for FY 2009 through FY 2011 to upgrade fire alarms at the Department of Transportation’s maintenance facilities to be in compliance with updated fire codes. This is a new project which has not yet begun and is not included in the approved capital plan. The installation of the fire alarms would be prioritized based on the amount of use and the number of employees who occupy the building, however, the Department has not submitted a plan which outlines the schedule. The House Finance Committee recommends moving the start of this project from FY 2009 to FY 2011. 142. Capital - RIPTA Land & Bldgs. The Governor’s recommended capital plan included $2,305,486 from Rhode Island Capital Plan funds for the Rhode Island Public Transit Authority’s Elmwood Expansion project. The Governor submitted an amendment to shift $1,947,290 from FY 2008 to FY 2009 to reflect a delay in the start of construction. The House Finance Committee concurs. 143. Capital - RIPTA Paratransit Vehicles. The Governor’s capital budget includes $190,400 in FY 2009 from Rhode Island Capital Plan funds for the replacement of paratransit vehicles, software upgrades and surveillance equipment. Rhode Island Capital Plan funds are not traditionally used to purchase vehicles, and the House Finance Committee recommends removing these funds in FY 2009. 144. Capital - Salt Storage Facilities. The Governor recommends $6.6 million from Rhode Island Capital Plan funds from FY 2009 through FY 2011 for the construction of salt storage facilities at various locations statewide where salt is currently stored uncovered. Phase I of this project is complete, and included the construction of salt storage facilities at the Mid-state garage in East Greenwich and the maintenance facility located in Scituate. Phase II of this project would include construction of additional salt storage facilities in locations such as Hopkinton, Newport, Narragansett and Westerly. The House Finance Committee recommends $0.7 million from Rhode Island Capital Plan funds in FY 2009 and FY 2010 for the facilities. This will allow the Department to construct salt storage facilities at the maintenance facilities which could potentially face environmental violations. 145. Maintenance - Lower Gas Tax. The House Finance Committee recognizes a $1.1 million reduction for the Department of Transportation in FY 2009 based on the gas tax estimate resulting from the May Revenue Estimating Conference, which reduced the proceeds collected from the tax.



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The Department of Transportation receives a dedicated $0.2075 from the gas tax. The May conference reduced the yield per 1-cent from $4.685 million that was included in the Governor’s recommended budget to $4.630 million for FY 2009. The expenditures in the maintenance division are adjusted accordingly. 146. May Revenue Gas Tax Adj. – RIPTA. The House Finance Committee recommends a $0.4 million reduction to the Governor’s recommended budget for the operations of the Rhode Island Public Transit Authority to reflect a decrease in the gasoline tax proceeds per penny resulting from the May Consensus Revenue Estimating Conference. The Authority receives 7.25 cents of the gas tax and the May estimate lowered the yield by $55,000 per cent.



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Section III

Special Reports



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State Aid to Local Governments Introduction The budget reported by the House Finance Committee contains total state aid to cities and towns of $245.7 million from state general revenues. Funding includes $232.9 million for general aid programs and $12.8 million for restricted use programs. Local communities will also receive $10.2 million in public service corporation property taxes that the state collects and passes through to the communities. The general aid is $5.9 million less than the FY 2008 enacted budget and $26.2 million less than current law. This reflects the Governor’s proposal to permanently reduce the Motor Vehicles Excise Tax reimbursements to 98.0 percent of the calculated value beginning with FY 2008 and freeze the distribution of the state share of video lottery terminal revenue at the FY 2008 enacted level. The Committee passed legislation that changed the reference year data used for the distribution formula to be the same used for FY 2008. It also fixes the amount that is distributed through General Revenue Sharing to assure that all communities receive the same amount of aid in FY 2009 as FY 2008. The following graph shows historical funding data, in millions. The graph below also shows the allocation and growth of funding, for state aid programs from FY 1997 through FY 2009.

$0

$50

$100

$150

$200

$250

$300

FY 19

97

FY 199

8

FY 199

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F Y 2000

FY 200

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FY 2002

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FY 2008 E

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D istressed Communities PILOT General Rev. Sharing Excise Tax Phase-Out Re stricted Use Pa ss-Through

The major changes in the aid proposal are discussed on the following pages, followed by tables that show the total distribution of general aid by community as well as each general aid program by community. There are also tables showing the distribution of library operating aid, which is considered restricted and not included in the general aid totals and public service corporations tax collections, a local levy collected at the state level and returned to local governments for tax collection efficiency purposes.



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• General. The House Finance Committee recommends $232.9 for general state aid to local governments in FY 2009, $5.9 million less than enacted and $26.2 million less than the full funding for all programs under current law.

Fiscal Year 1990 1995 2000 2005 2006 2007 2008 Enacted

2008 Revised

2009 Gov.

2008 HFC

2009 HFC

2009 HFC/Gov.

General Aid - State SourcesDistressed Communities* -$ 7.2$ 6.6$ 9.5$ 10.6$ 10.2$ 10.4$ 10.4$ 10.4$ 10.4$ 10.4$ -$ PILOT 0.3 12.2 16.1 22.7 27.0 27.8 27.8 27.8 27.8 27.8 27.8 - General Rev. Sharing 27.8 13.6 27.6 52.4 65.0 65.1 65.1 55.1 55.0 55.1 55.1 0.1 Excise Tax Phase-Out - - 47.3 105.0 117.6 136.2 135.5 135.3 139.6 135.3 139.6 -

Subtotal 28.1$ 33.0$ 97.5$ 189.7$ 220.2$ 239.3$ 238.8$ 228.6$ 232.8$ 228.6$ 232.9$ 0.1$ Restricted Use Aid - State SourcesState Aid for Libraries 1.6$ 3.3$ 5.7$ 8.1$ 8.4$ 8.7$ 8.8$ 8.8$ 8.8$ 8.8$ 8.8$ -$ Library Const. Aid 1.3 1.9 1.6 2.5 2.6 2.8 2.8 2.8 2.8 2.8 2.8 - Police & Fire Incentive 4.1 1.3 0.9 1.1 1.1 0.7 0.7 0.7 - 0.7 - - Prop. Reval. Reimb. - - 0.0 0.6 0.6 2.0 1.1 1.1 1.3 1.1 1.3 - Other 0.1 0.0 - - - - - - - - - -

Subtotal 7.2$ 6.5$ 8.2$ 12.3$ 12.7$ 14.2$ 13.4$ 13.4$ 12.8$ 13.4$ 12.8$ -$ Total - State Sources 35.2$ 39.5$ 105.7$ 202.0$ 233.0$ 253.5$ 252.1$ 241.9$ 245.6$ 241.9$ 245.7$ 0.1$ Other Aid - Pass-ThroughPublic Service Corp. 9.9$ 7.2$ 12.8$ 14.6$ 14.6$ 10.3$ 10.3$ 10.3$ 10.2$ 10.3$ 10.2$ -$ *FY 2007 reflects recapture of $230,272 overpayment from FY 2006. • Distressed Communities Relief Fund. The House Finance Committee recommends $10.4 million for the Distressed Communities Relief Fund for FY 2009, $144,532 less than current law requirements from freezing the amount of video lottery revenues dedicated to this program at the FY 2008 level. Communities’ aid distribution for FY 2009 is based on updated qualifying tax levies. • Payment in Lieu of Taxes Program. The House Finance Committee recommends $27.8 million to freeze the aid payments at the FY 2008 enacted level. The recommendation is $2.0 million less than the current law allowance for 27.0 percent of the property taxes that would have been due on real property owned by nonprofit educational institutions, nonprofit hospitals, or any state-owned hospital, veterans’ residential facility or correctional facility exempt from taxation by state law. Distributions to communities reflect updated data. • General Revenue Sharing. The House Finance Committee recommends $55.1 million for the General Revenue Sharing program and changes the reference year data used for the distribution for formula to be the same used for FY 2008. This assures that all communities receive the same amount of aid in FY 2009 as they did in FY 2008. The recommendation is $21.3 million less than current law requirements for distribution of 3.0 percent of second prior year state tax revenues. • Motor Vehicle Excise Tax Phase-Out. The House Finance Committee recommends $139.6 million to fund the car tax phase-out for FY 2009. Legislation passed in 2008-H 7204 Substitute A, permanently reduced the Motor Vehicle Excise Tax reimbursements to 98.0 percent of the calculated value beginning with FY 2008. • Library Resource Sharing Aid. The House Finance Committee recommends $8.8 million for FY 2009 library operating aid, $0.8 million or 8.9 percent less than allowed under current law, which requires 25.0 percent reimbursement of second prior year expenditures. Community distributions reflect updated data and a ratable reduction to the appropriation. The Committee also amends the law to require that the state share be 25.0 percent and deletes the provision, which had required



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municipalities to provide library services at the same or a higher level of tax revenue than the previous year. • Library Construction Aid. The Budget provides $2.8 million for full funding of library construction aid. • Municipal Police and Firefighters Incentive Pay. The House Finance Committee did not concur with the Governor’s recommendation to eliminate this program; however, no funding is provided for FY 2009. • Property Valuation Reimbursement. The Budget provides full funding of $1.3 million to reimburse communities conducting property valuation updates. • Public Service Corporation Tax. The Budget assumes the state will collect $10.2 million of property taxes from public service corporations on behalf of municipalities and pass that back to them.



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Includes Distressed Communities, PILOT, General Revenue Sharing and Motor Vehicles Excise Tax

FY 2008 FY 2009 FY 2009 HFC Chng. HFC Chng.Community Final Governor HFC to Governor to Final

Barrington 3,268,942$ 3,370,378$ 3,360,560$ (9,818)$ 91,618$ Bristol 2,922,409 3,018,264 2,995,065 (23,199) 72,656 Burrillville 3,760,409 4,120,930 4,049,121 (71,809) 288,712 Central Falls 3,243,739 3,300,874 3,300,874 - 57,135 Charlestown 866,977 890,403 883,662 (6,741) 16,686 Coventry 3,812,033 3,830,177 3,906,507 76,330 94,474 Cranston 20,425,332 20,614,428 21,053,245 438,817 627,913 Cumberland 4,089,535 3,962,628 4,178,095 215,467 88,560 East Greenwich 1,513,199 1,583,637 1,556,641 (26,996) 43,442 East Providence 8,616,983 9,226,474 8,817,064 (409,410) 200,082 Exeter 1,086,925 1,082,485 1,119,251 36,766 32,327 Foster 1,101,404 1,101,751 1,128,393 26,642 26,989 Glocester 1,695,064 1,747,954 1,733,921 (14,033) 38,857 Hopkinton 1,031,526 1,092,898 1,058,410 (34,488) 26,884 Jamestown 551,129 577,193 564,790 (12,403) 13,661 Johnston 7,242,458 7,404,961 7,404,961 - 162,503 Lincoln 3,736,353 3,809,887 3,829,906 20,019 93,553 Little Compton 385,233 410,850 394,691 (16,158) 9,458 Middletown 1,919,901 1,959,434 1,954,784 (4,650) 34,883 Narragansett 1,972,906 1,982,591 2,012,119 29,527 39,213 Newport 4,073,086 4,148,783 4,227,278 78,495 154,192 New Shoreham 163,945 166,710 166,710 - 2,765 North Kingstown 3,574,813 3,619,977 3,664,611 44,634 89,798 North Providence 8,666,099 8,855,036 8,709,898 (145,137) 43,799 North Smithfield 2,631,332 2,671,751 2,706,414 34,664 75,082 Pawtucket 16,590,781 17,187,805 16,862,144 (325,662) 271,363 Portsmouth 2,110,591 2,111,339 2,160,378 49,040 49,787 Providence 62,048,682 62,251,953 62,251,953 - 203,270 Richmond 883,671 871,041 907,279 36,239 23,608 Scituate 1,956,153 1,991,512 2,006,475 14,964 50,322 Smithfield 5,557,422 5,699,259 5,699,259 - 141,837 South Kingstown 3,149,694 3,173,415 3,216,438 43,023 66,744 Tiverton 1,952,024 1,942,102 1,996,967 54,865 44,942 Warren 1,551,682 1,593,828 1,587,721 (6,107) 36,038 Warwick 18,990,051 19,520,785 19,603,295 82,510 613,244 Westerly 3,762,036 3,913,365 3,852,651 (60,714) 90,615 West Greenwich 765,029 745,592 783,455 37,863 18,427 West Warwick 5,352,382 5,495,160 5,438,633 (56,527) 86,251 Woonsocket 9,682,075 9,830,487 9,830,487 - 148,412 Subtotal 226,704,006$ 230,878,098$ 230,974,109$ 96,011$ 4,270,103$ Fire Districts 1,875,837 1,875,837 1,875,837 - - Total 228,579,843$ 232,753,935$ 232,849,946$ 96,011$ 4,270,103$

General Aid Total



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Distressed Communities Relief

FY 2008 FY 2009 FY 2009 HFC Chng. HFC Chng. City or Town Final Governor HFC to Governor to Final

Barrington -$ -$ -$ -$ -$ Bristol - - - - - Burrillville 299,245 504,712 504,712 - 205,468 Central Falls 300,986 288,851 288,851 - (12,135) Charlestown - - - - - Coventry - - - - - Cranston - - - - - Cumberland - - - - - East Greenwich - - - - - East Providence - - - - - Exeter - - - - - Foster - - - - - Glocester - - - - - Hopkinton - - - - - Jamestown - - - - - Johnston - - - - - Lincoln - - - - - Little Compton - - - - - Middletown - - - - - Narragansett - - - - - Newport - - - - - New Shoreham - - - - - North Kingstown - - - - - North Providence 1,120,853 1,024,798 1,024,798 - (96,055) North Smithfield - - - - - Pawtucket 1,573,062 1,499,940 1,499,940 - (73,122) Portsmouth - - - - - Providence 5,294,376 5,299,785 5,299,785 - 5,409 Richmond - - - - - Scituate - - - - - Smithfield - - - - - South Kingstown - - - - - Tiverton - - - - - Warren - - - - - Warwick - - - - - Westerly - - - - - West Greenwich - - - - - West Warwick 950,454 935,710 935,710 - (14,744) Woonsocket 845,484 830,661 830,661 - (14,822) Total 10,384,458$ 10,384,458$ 10,384,458$ -$ -$



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FY 2008 FY 2009 FY 2009 Chng. to Chng. toCity or Town Final Governor HFC Governor Governor

Barrington 53,865$ 49,199$ 49,199$ -$ (4,666)$ Bristol 560,835 584,813 584,813 - 23,978 Burrillville 78,891 73,011 73,011 - (5,880) Central Falls - 20,927 20,927 - 20,927 Charlestown - - - - - Coventry - - - - - Cranston 3,583,905 3,820,082 3,820,082 - 236,177 Cumberland 139 140 140 - 1 East Greenwich 7,940 8,008 8,008 - 68 East Providence 61,629 60,645 60,645 - (984) Exeter - - - - - Foster 270 437 437 - 167 Glocester - - - - - Hopkinton - - - - - Jamestown - - - - - Johnston - - - - - Lincoln - - - - - Little Compton - - - - - Middletown - - - - - Narragansett - - - - - Newport 658,326 753,317 753,317 - 94,991 New Shoreham - - - - - North Kingstown 6,836 6,591 6,591 - (245) North Providence 533,146 513,661 513,661 - (19,485) North Smithfield 38,817 48,733 48,733 - 9,916 Pawtucket 330,377 353,035 353,035 - 22,658 Portsmouth - - - - - Providence 20,124,158 19,570,192 19,570,192 - (553,966) Richmond 627 - - - (627) Scituate - - - - - Smithfield 437,602 466,237 466,237 - 28,635 South Kingstown 121,138 118,511 118,511 - (2,627) Tiverton - - - - - Warren - - - - - Warwick 862,977 1,028,280 1,028,280 - 165,303 Westerly 132,288 127,296 127,296 - (4,992) West Greenwich - - - - - West Warwick - - - - - Woonsocket 173,199 163,852 163,852 - (9,347) Total 27,766,967$ 27,766,967$ 27,766,967$ -$ -$

Payment in Lieu of Taxes



41

General Revenue Sharing


Barrington 206,206$ 216,024$ 206,206$ (9,818)$ -$ Bristol 840,384 863,583 840,384 (23,199) - Burrillville 597,138 668,947 597,138 (71,809) - Central Falls 1,432,052 1,432,052 1,432,052 - - Charlestown 345,546 352,287 345,546 (6,741) - Coventry 859,727 783,397 859,727 76,330 - Cranston 4,599,682 4,160,865 4,599,682 438,817 - Cumberland 1,321,917 1,106,450 1,321,917 215,467 - East Greenwich 149,812 176,808 149,812 (26,996) - East Providence 2,272,041 2,681,451 2,272,041 (409,410) - Exeter 76,718 39,952 76,718 36,766 - Foster 262,927 236,285 262,927 26,642 - Glocester 480,785 494,819 480,785 (14,033) - Hopkinton 191,394 225,882 191,394 (34,488) - Jamestown 124,220 136,623 124,220 (12,403) - Johnston 2,164,233 2,164,233 2,164,233 - - Lincoln 812,824 792,805 812,824 20,019 - Little Compton 89,670 105,829 89,670 (16,158) - Middletown 829,818 834,468 829,818 (4,650) - Narragansett 747,514 717,987 747,514 29,527 - Newport 1,564,738 1,486,242 1,564,738 78,495 - New Shoreham 77,527 77,527 77,527 - - North Kingstown 754,148 709,515 754,148 44,634 - North Providence 2,032,742 2,177,880 2,032,742 (145,137) - North Smithfield 556,079 521,416 556,079 34,664 - Pawtucket 4,630,267 4,955,929 4,630,267 (325,662) - Portsmouth 554,736 505,697 554,736 49,040 - Providence 13,135,563 13,135,563 13,135,563 - - Richmond 125,675 89,436 125,675 36,239 - Scituate 383,576 368,613 383,576 14,964 - Smithfield 1,582,243 1,582,243 1,582,243 - - South Kingstown 860,708 817,685 860,708 43,023 - Tiverton 547,575 492,710 547,575 54,865 - Warren 425,488 431,595 425,488 (6,107) - Warwick 4,128,906 4,046,397 4,128,906 82,510 - Westerly 642,010 702,724 642,010 (60,714) - West Greenwich 189,201 151,338 189,201 37,863 - West Warwick 1,245,850 1,302,377 1,245,850 (56,527) - Woonsocket 3,270,235 3,270,235 3,270,235 - - Total 55,111,876$ 55,015,865$ 55,111,876$ 96,011$ -$



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Barrington 3,008,871$ 3,105,155$ 3,105,155$ -$ 96,284$ Bristol 1,521,189 1,569,867 1,569,867 - 48,678 Burrillville 2,785,136 2,874,260 2,874,260 - 89,124 Central Falls 1,510,701 1,559,044 1,559,044 - 48,342 Charlestown 521,431 538,116 538,116 - 16,686 Coventry 2,952,306 3,046,780 3,046,780 - 94,474 Cranston 12,241,745 12,633,481 12,633,481 - 391,736 Cumberland 2,767,479 2,856,038 2,856,038 - 88,559 East Greenwich 1,355,447 1,398,821 1,398,821 - 43,374 East Providence 6,283,312 6,484,378 6,484,378 - 201,066 Exeter 1,010,207 1,042,533 1,042,533 - 32,327 Foster 838,207 865,029 865,029 - 26,823 Glocester 1,214,279 1,253,136 1,253,136 - 38,857 Hopkinton 840,132 867,017 867,017 - 26,884 Jamestown 426,909 440,570 440,570 - 13,661 Johnston 5,078,225 5,240,728 5,240,728 - 162,503 Lincoln 2,923,529 3,017,082 3,017,082 - 93,553 Little Compton 295,563 305,021 305,021 - 9,458 Middletown 1,090,083 1,124,966 1,124,966 - 34,883 Narragansett 1,225,392 1,264,605 1,264,605 - 39,213 Newport 1,850,022 1,909,223 1,909,223 - 59,201 New Shoreham 86,417 89,183 89,183 - 2,765 North Kingstown 2,813,829 2,903,871 2,903,871 - 90,043 North Providence 4,979,357 5,138,697 5,138,697 - 159,339 North Smithfield 2,036,436 2,101,602 2,101,602 - 65,166 Pawtucket 10,057,076 10,378,902 10,378,902 - 321,826 Portsmouth 1,555,855 1,605,642 1,605,642 - 49,787 Providence 23,494,586 24,246,412 24,246,412 - 751,827 Richmond 757,369 781,604 781,604 - 24,236 Scituate 1,572,577 1,622,899 1,622,899 - 50,322 Smithfield 3,537,577 3,650,779 3,650,779 - 113,202 South Kingstown 2,167,848 2,237,219 2,237,219 - 69,371 Tiverton 1,404,450 1,449,392 1,449,392 - 44,942 Warren 1,126,194 1,162,233 1,162,233 - 36,038 Warwick 13,998,167 14,446,108 14,446,108 - 447,941 Westerly 2,987,738 3,083,345 3,083,345 - 95,608 West Greenwich 575,828 594,255 594,255 - 18,427 West Warwick 3,156,079 3,257,073 3,257,073 - 100,995 Woonsocket 5,393,158 5,565,739 5,565,739 - 172,581 Municipalities 133,440,705$ 137,710,808$ 137,710,808$ -$ 4,270,103$ Fire Districts 1,875,837 1,875,837 1,875,837 - - Total 135,316,542$ 139,586,645$ 139,586,645$ -$ 4,270,103$

Motor Vehicle Excise Phase-Out



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FY 2008 FY 2009 FY 2009 HFC Chng. HFC Chng.City or Town Final Governor HFC to Governor to FinalBarrington 314,971$ 317,722$ 317,722$ -$ 2,751$ Bristol 57,181 57,817 57,817 - 636 Burrillville 79,855 80,245 80,245 - 390 Central Falls 66,132 77,237 77,237 - 11,105 Charlestown 45,568 45,205 45,205 - (363) Coventry 167,177 186,831 186,831 - 19,654 Cranston 548,485 572,241 572,241 - 23,756 Cumberland 240,606 248,544 248,544 - 7,938 East Greenwich 102,399 105,141 105,141 - 2,742 East Providence 499,379 467,926 467,926 - (31,453) Exeter 28,066 32,415 32,415 - 4,349 Foster 29,271 33,195 33,195 - 3,924 Glocester 64,709 65,133 65,133 - 424 Hopkinton 31,238 28,963 28,963 - (2,275) Jamestown 70,379 71,068 71,068 - 689 Johnston 121,452 122,433 122,433 - 981 Lincoln 172,879 174,946 174,946 - 2,067 Little Compton 25,425 25,296 25,296 - (129) Middletown 149,936 143,075 143,075 - (6,861) Narragansett 111,496 117,559 117,559 - 6,063 Newport 346,432 92,970 92,970 - (253,462) New Shoreham 88,246 348,867 348,867 - 260,621 North Kingstown 234,608 234,918 234,918 - 310 North Providence 174,550 178,999 178,999 - 4,449 North Smithfield 60,768 58,075 58,075 - (2,693) Pawtucket 395,733 409,610 409,610 - 13,877 Portsmouth 109,462 103,586 103,586 - (5,876) Providence* 2,360,926 2,314,736 2,314,736 - (46,190) Richmond 22,769 25,637 25,637 - 2,868 Scituate 93,610 91,895 91,895 - (1,715) Smithfield 240,145 236,390 236,390 - (3,755) South Kingstown 194,843 189,662 189,662 - (5,181) Tiverton 87,145 86,606 86,606 - (539) Warren 46,087 44,050 44,050 - (2,037) Warwick 666,766 675,910 675,910 - 9,144 Westerly 287,135 281,881 281,881 - (5,254) West Greenwich 21,394 22,136 22,136 - 742 West Warwick 196,189 190,207 190,207 - (5,982) Woonsocket 219,987 214,271 214,271 - (5,716) Total 8,773,398$ 8,773,398$ 8,773,398$ -$ -$

*Includes the Statewide Reference Library Resource Grant.

Library Aid



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FY 2008 FY 2009 FY 2009 HFC Chng. HFC Chng.City or Town Final Governor HFC to Governor to FinalBarrington 165,956$ 163,725$ 163,725$ -$ (2,231)$ Bristol 221,816 218,726 218,726 - (3,090) Burrillville 156,192 153,767 153,767 - (2,425) Central Falls 186,716 184,256 184,256 - (2,460) Charlestown 77,318 76,504 76,504 - (814) Coventry 332,049 327,743 327,743 - (4,306) Cranston 782,494 771,648 771,648 - (10,846) Cumberland 313,933 309,948 309,948 - (3,985) East Greenwich 127,677 126,043 126,043 - (1,634) East Providence 481,518 473,956 473,956 - (7,562) Exeter 59,589 58,845 58,845 - (744) Foster 42,243 41,605 41,605 - (638) Glocester 98,122 96,839 96,839 - (1,283) Hopkinton 77,193 76,280 76,280 - (913) Jamestown 55,400 54,728 54,728 - (672) Johnston 278,198 274,466 274,466 - (3,732) Lincoln 205,799 203,433 203,433 - (2,366) Little Compton 35,441 34,976 34,976 - (465) Middletown 171,805 168,739 168,739 - (3,066) Narragansett 161,330 159,267 159,267 - (2,063) Newport 262,039 257,722 257,722 - (4,317) New Shoreham 9,937 9,832 9,832 - (105) North Kingstown 259,512 256,272 256,272 - (3,240) North Providence 320,185 315,506 315,506 - (4,679) North Smithfield 104,890 103,361 103,361 - (1,529) Pawtucket 720,845 710,213 710,213 - (10,632) Portsmouth 169,383 166,938 166,938 - (2,445) Providence 1,712,408 1,690,093 1,690,093 - (22,315) Richmond 70,903 70,303 70,303 - (600) Scituate 101,885 100,499 100,499 - (1,386) Smithfield 203,327 200,658 200,658 - (2,669) South Kingstown 275,088 271,798 271,798 - (3,290) Tiverton 150,556 148,549 148,549 - (2,007) Warren 112,258 110,584 110,584 - (1,674) Warwick 847,803 835,302 835,302 - (12,501) Westerly 226,600 223,564 223,564 - (3,036) West Greenwich 49,855 49,500 49,500 - (355) West Warwick 292,223 287,958 287,958 - (4,265) Woonsocket 427,271 420,766 420,766 - (6,505) Total 10,347,757$ 10,204,912$ 10,204,912$ -$ (142,845)$

Public Service Corporation Tax



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Education Aid

Summary The House Finance Committee recommends a total of $889.7 million for FY 2009 education aid. This provides the same level of local education operating aid for each school district as FY 2008 with adjustments for group home beds. The total does not include the revenues received by the state resulting from the operation of video lottery games on a twenty-four hour basis on weekends and holidays that would be allocated to school districts through the Permanent School Fund. General Revenue funding includes $701.9 million in direct distributions to local school districts, $33.8 million for other formula aid for distribution by the Department of Elementary and Secondary Education for specific programming, $97.0 million for the state’s contribution to teacher retirement, and $57.0 million for school construction costs. Total general revenue funding has increased an average of 4.5 percent per year since FY 1990. The House Finance Committee’s recommendation provides a 2.8 percent increase to enacted FY 2008 funding and a 2.9 percent increase to the revised FY 2008 budget. The table below shows historical funding data, in millions.

State Education Aid

$200

$300

$400

$500

$600

$700

$800

$900

FY 199

1

FY 199

2

FY 199

3

FY 199

4

FY 199

5

FY 199

6

FY 199

7

FY 199

8

FY 199

9

FY 200

0

FY 200

1

FY 200

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FY 200

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FY 200

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FY 200

5

FY 200

6

FY 200

7

FY 200

8 Ena

cted

FY 2008

Rev

FY 2009

Gov

FY 200

9 HFC

Formula Aid Teacher Retirement Construction Aid Other

The tables at the end of this section show the proposed FY 2009 distribution of direct aid by community and comparable data for FY 2004 through FY 2008. Those tables include estimates of FY 2009 distributions from the Permanent School Fund. The major changes in aid are listed below and described in detail in the pages that follow.

Education Aid by Component The House Finance Committee recommends $24.0 million of increased funding for FY 2009. This includes the same level of local education operating aid for each school district as FY 2008 with adjustments for group home beds, $0.1 million more for the Met School, $1.6 million more for other formula aid and distribution by the Department, $18.9 million more for teacher retirement, and $4.1 million more for construction aid.



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The following table compares the recommended FY 2009 funding for the major components of education aid to FY 2008 enacted and the Governor’s recommendation. It is followed by an explanation of each of the items in the table. Please note that the table does not reflect any funding that will be distributed to districts from the Permanent School Fund.

Education Aid FY 2008 Enacted

FY 2009 Governor

FY 2009 House Finance

CommitteeChange to Governor

Change to Enacted

Local School Operations $ 488,592,372 $ 488,592,372 $ 488,592,372 $ - $ -

Central Falls Operations 43,795,411 45,109,273 43,795,411 (1,313,862) - Met School Operations 11,487,734 12,302,546 11,565,603 (736,943) 77,869

Targeted Aid 20,000,000 20,000,000 20,000,000 - -

Student Equity Investment Fund 73,800,000 73,800,000 73,800,000 - -

Professional Development 5,825,502 5,825,502 5,825,502 - - Early Childhood 6,800,000 6,800,000 6,800,000 - -

Student Technology 3,397,692 3,397,692 3,397,692 - - Student Language Assistance 31,715,459 31,715,459 31,715,459 - -

Charter School Fund-Indirect Aid 1,242,006 1,242,006 1,242,006 - -

Full Day Kindergarten 4,163,000 4,163,000 4,163,000 - - Vocational Technical Equity Fund 1,512,500 1,512,500 1,512,500 - -

Group Homes Funding 10,251,000 9,531,000 9,531,000 - (720,000)Subtotal $ 702,582,676 $ 703,991,350 $ 701,940,545 $ (2,050,805) $ (642,131)

Set-Aside Funds

Progressive Support & Intervention $ 2,836,897 $ 2,695,867 $ 2,695,867 $ - $ (141,030)

Hasbro Children's Hospital 100,000 - 100,000 100,000 -

Charter School Fund-Direct Aid 26,984,988 29,776,750 29,776,750 - 2,791,762

School Visits 407,935 145,864 145,864 - (262,071)Professional Development 670,000 595,000 495,000 (100,000) (175,000)

Textbook Loans 240,000 240,000 240,000 - - School Breakfast 600,000 - 300,000 300,000 (600,000)

Subtotal $ 31,839,820 $ 33,453,481 $ 33,753,481 $ 300,000 $ 1,613,661 Total $ 734,422,496 $ 737,444,831 $ 735,694,026 $ (1,750,805) $ 971,530

Other Aid

Teacher Retirement $ 78,071,710 $ 94,785,822 $ 96,999,600 $ 2,213,778 $ 18,927,890 Construction Aid 52,861,510 56,996,248 56,996,248 - 4,134,738 Statewide Total $ 865,355,716 $ 889,226,901 $ 889,689,874 $ 462,973 $ 24,034,158

State Support for Local School Operations. The budget includes $488.6 million in general state support to locally operated school districts. This is the level enacted for FY 2008 by the 2007 Assembly. Central Falls Operations. The House Finance Committee recommends providing the FY 2008 enacted level of $43.8 million consistent with all other districts and reduces the Governor’s recommended budget by $1.3 million. Metropolitan Career and Technical School. The budget includes $11.6 million from general revenues for the operation of the Metropolitan Career and Technical School. This is $0.1 million over the enacted level. It reflects 30 additional students for the third class at the Met School’s new East Bay campus offset by the closure of the Met School’s Shepard location.



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Targeted Aid. The budget includes the enacted level of $20.0 million for the Targeted Aid investment category. This fund was introduced by the 1998 Assembly to provide funds to locally or regionally operated districts with a tax effort that exceeds tax capacity and in which at least 40.0 percent of the K-3 students are eligible for free or reduced lunches. The Commissioner may require a district to reserve up to 5.0 percent of its funds from this category for intervention remedies and such reserved funds shall only be spent with the prior approval of the Commissioner. The FY 2009 recommendation freezes distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Student Equity Investment Fund. The budget includes the enacted level of $73.8 million for the Student Equity Investment fund. Fund distribution is based on a district’s proportion of students eligible for free or reduced lunches. The Commissioner may require districts to use up to 5.0 percent of these funds to increase student and school performance in a manner that has the prior approval of the Commissioner. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Professional Development Investment Fund. The budget includes the enacted level of $5.8 million for the distributed portion of the Professional Development Investment fund, which provides funds for skill development for teachers and staff. Distribution of these resources is based on student population and Commissioner approval is required before any of these funds can be spent. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. The enabling statute includes language allowing for an additional appropriation to be made to support teacher professional development in all districts through a number of specified programs. The budget allocates $495,000 for Department programming, $175,000 less than the enacted level. This reflects a $100,000 reduction as well as a shift of $75,000 to the Department’s budget to back fill unavailable federal funds for a position dedicated to English language learners. The summary table displays the distributed funds and the set aside funds separately. Early Childhood Investment Fund. The budget includes the enacted level of $6.8 million for distribution to districts from the Early Childhood Investment fund. This initiative provides funds for schools and teaching staff for kindergarten through third grade to begin improving student performance. These resources are to be used in conjunction with literacy set-aside funds and are distributed based on the student population in these grades for each district. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Student Technology Investment Fund. The budget includes the enacted level of $3.4 million for the Student Technology Investment fund. This fund provides schools and teaching staff with up-to-date educational technology and training to help students meet the demand of the twenty-first century. Fund distribution is based on a district’s proportion of total student population. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Student Language Assistance Investment Fund. The budget includes the enacted level of $31.7 million for the Student Language Assistance Investment fund. This fund targets state resources to assist students that require additional language educational services, and distribution is based on a district’s proportion of limited English proficiency students. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006.



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Charter Schools. The budget includes $31.0 million for aid to public charter schools. This is $2.8 million or 9.9 percent greater than enacted and increases direct funding for 11 existing schools based on growing enrollments and grade additions. Indirect aid, provided to districts that send students to charters schools, is $1.2 million, the enacted level, which is consistent with the level funding of all distributed aid to local districts. Indirect aid is reflected in the community distribution tables at the end of the report. Charter schools are public schools authorized by the state through the Board of Regents to operate independently from many state and local district rules and regulations. Current law limits the statewide total to no more than 20 charters, serving no more than 4.0 percent of the state's school age population. At least 10 of the 20 total charters shall be reserved for charter school applications designed to increase the educational opportunities for at-risk pupils. There are currently 11 charter schools in Rhode Island. The 2004 Assembly placed a moratorium on the opening of any new charter schools during the 2005-2006 school year. The 2005 Assembly extended the moratorium on the opening of any new charter schools for two additional years. The budget allows the current moratorium on new schools to lapse, but does not include funding for any new schools to start. The budget also includes revisions to the charter school statutes to allow for the creation of a new type of charter school, called a mayoral academy. These academies would have to go through the same approval process as other charter schools but would be exempt from some of the laws governing charter schools including teacher retirement and prevailing wage laws. There is no funding in the FY 2009 budget for the start of any mayoral academies. Full Day Kindergarten. The budget includes the enacted level of $4.2 million to provide aid for districts with full day kindergarten programs. The distribution formula is based on per pupil enrollment in full day kindergarten programs in the prior year. Districts receive a minimum of $500 for each student. Districts with a tax equity index below 1.0 receive $1,000 per student, and those with a tax equity index below 0.6 receive $1,500 per student. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Vocational Technical Equity Fund. The budget includes $1.5 million, the enacted level for the Vocational Technical Equity fund, which provides aid for districts that send students to locally operated career and technical centers. The funds are intended to support the academic instruction component of vocational education for students enrolled in career and technical education programs. It provides districts with $500 for each student who attends a locally operated career and technical center, based on prior year enrollment. The FY 2009 recommendation freezes the distribution to each community at the FY 2008 level, which has not been updated since FY 2006. Group Homes. Consistent with current law, the budget adjusts group home aid to reflect actual beds, and the budget recognizes savings of $720,000 to the enacted budget, or $9.5 million. The 2007 Assembly enacted legislation to ensure that the payment of communities’ group home aid more closely reflects the actual number of group home beds open at the time of the budget. The legislation mandates that increases in beds prior to December 31 of each year shall be paid as part of the supplemental budget for that year and included in the budget year recommendation. The Assembly also increased the per bed amount from $15,000 to $22,000 for the group home beds associated with the Bradley Hospital’s residential CRAFT program. Prior to FY 2002, an official community of residence, which is generally based on the parents’ residence, was determined for each child living in a group home. The district of official residence was responsible to pay the district in which the child is placed for the cost of the child’s education. This



49

system produced disputes among communities concerning financial responsibility. These disputes often resulted in legal fees for all parties involved, and districts hosting group homes were largely unsuccessful in seeking reimbursements. The 2001 Assembly enacted legislation to provide a per bed allotment to districts in which group homes are located. The legislation relieved the sending district of financial responsibility for students placed in out of district group homes. In FY 2009, the 20 communities hosting group homes, which have a total of 627 beds, will receive $15,000 per bed. This is the per pupil rate that was provided in the FY 2002 budget in an attempt to reflect the mix of regular and special education students residing in these homes; it has never increased. Permanent School Fund. The 2008 Assembly enacted legislation that became law on May 6, 2008 that allows the operation of video lottery games on a twenty-four hour basis on weekends and federally recognized holidays at the Twin River and Newport Grand facilities. That legislation mandates that the additional revenue accruing to the state as the direct result of the additional hours, up to $14.1 million by June 30, 2009, be deposited into the Permanent School Fund and allocated as education aid. The House Finance Committee recommends legislation that requires the Department of Elementary and Secondary Education to monthly allocate to each school district all funds received into the Permanent School Fund, up to $14.1 million, in the same proportion as the general revenue aid distribution. Distributions from the Permanent School Fund are not reflected as appropriations in Article 1. The distribution tables at the end of the report display the FY 2009 appropriation along with an estimated allocation of $13.6 million from the fund. This estimate is lower than the $14.1 million limit, based on Newport Grand’s decision not to change its hours of operation. It also includes estimated revenues from May 2008 through June 2009. Funding to communities could be higher or lower, up to $14.1 million, based on the actual revenues generated.

Set-Aside Funds Progressive Support and Intervention. The budget includes $2.7 million or $141,030 less than the FY 2008 enacted level for support of reform efforts in selected school districts. The reduction reflects the elimination of funding for a Principal Fellow position responsible for developing district leadership in both schools and central offices. Funds for this set aside were first provided in FY 2001 and had primarily been used to assist the Providence School District in its reform efforts, in conjunction with its Excellence in Education Compact with the state. Hasbro Children’s Hospital School. The budget includes the enacted level of $100,000 for the Hasbro Children’s Hospital program. The Governor had included legislation as part of his revised budget to eliminate funds provided to Hasbro Children’s Hospital for savings of $100,000, however; the Assembly did not enact the legislation. This program supports educational personnel, supplies, and materials for students in the hospital. School Visits. The budget includes $145,864 to support school visits, which is $262,071 less than enacted. Funds are allocated to the Department of Elementary and Secondary Education for on-site school reviews and other support for district accountability measures. This funding supports the School Accountability for Learning and Teaching system, known as SALT. Combined with other reductions in the Department’s budget, the total FY 2009 reduction for SALT is $0.6 million. Textbook Loan Program. The budget includes the enacted level of $240,000 for reimbursements allowed under the textbook loan program. The state reimburses districts for the cost of providing



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textbooks to non-public school students in the areas of English/language arts and history/social studies in kindergarten through 12th grade. School Breakfast. The budget includes $300,000 to reimburse administrative costs associated with the state’s school breakfast program. The Governor proposed eliminating the administrative cost reimbursement to districts for which the enacted budget includes $600,000. State law mandates that all public schools provide a breakfast program and that costs, other than transportation, associated with this program in excess of available federal money, which funds the meals, shall be borne exclusively by the state and not by municipalities subject to appropriation. By not recommending an appropriation, administrative costs would shift to the districts; food is paid from federal sources. As in the lunch program, children from families with incomes at or below 130 percent of poverty level are eligible for free meals. Children between 130 percent and 185 percent of poverty level are eligible for reduced-price meals. Children from families over 185 percent of poverty pay a regular price for their meal.

Other Aid Teacher Retirement. The budget includes $97.0 million to fund the state’s 40.0 percent share of the employer contribution for teacher retirement costs, an increase of $18.9 million or 24.2 percent to the FY 2008 enacted budget. The Budget assumes a FY 2009 employers’ contribution rate, shared between the state and local school districts, of 25.03 percent of payroll. This is 13.7 percent greater than the FY 2008 rate. Teachers contribute 9.5 percent of their salaries and that rate is set in the General Laws. Employers contribute the difference between the teachers’ share and the amount needed to support the system, as determined annually by the State Employees’ Retirement System. The state pays 40.0 percent of the employer’s share. The House Finance Committee adds $2.2 million for teacher retirement costs for payments due to the system for FY 2003 through FY 2007 that were mistakenly never billed to the state by the System. School Housing (Construction) Aid. The budget funds construction aid to local districts at $57.0 million. This is $4.1 million more than enacted and $7.3 million over the FY 2008 entitlement. The FY 2009 budget assumes that all projects underway are completed on time and assumes savings of $500,000 from passage of proposed legislation that would require municipalities to refund school bonds when savings are available. The state reimburses cities and towns for a share of school capital projects. The shares are based on a district’s wealth compared to the aggregate state wealth, and the minimum share for each district is 30.0 percent. The 2003 Assembly enacted changes to the program in an effort to control growth. The legislation limits bond interest reimbursements for new projects to only those financed through the Rhode Island Health Education and Building Corporation. It also eliminated debt impact aid and made other changes to this program, largely to codify existing practice into the General Laws.



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Distribution Tables The following tables show the proposed distribution of FY 2009 direct aid by community and includes comparable data for FY 2004 through FY 2008 and the Governor’s proposal. It also shows the potential distributions to districts from an estimated $13.6 million in additional revenue to the state as the direct result of the operations of video lottery games on a twenty-four hour basis on weekends and holidays is displayed separately. Aid received into the Permanent School fund would be allocated to each school district in the same proportion as general revenue education aid and could be higher or lower than the $13.6 million shown based on actual revenues received.



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Community FY 2004 FY 2005 FY 2006 FY 2007 Barrington 2,393,375$ 2,398,582$ 2,479,907$ 2,599,526$ Burrillville 13,076,186 13,076,186 13,145,661 13,779,743 Charlestown 1,852,720 1,852,720 1,910,676 2,002,838 Coventry 18,881,202 18,881,202 19,151,316 20,075,081 Cranston 32,907,994 33,029,207 33,943,638 35,580,911 Cumberland 12,594,809 12,594,809 12,646,981 13,257,009 East Greenwich 1,796,345 1,810,042 1,860,042 1,949,761 East Providence 25,009,458 25,064,677 25,530,776 26,762,254 Foster 1,311,926 1,311,926 1,351,283 1,416,463 Glocester 2,995,087 2,995,087 3,065,960 3,213,847 Hopkinton 5,902,911 5,902,911 5,954,153 6,241,352 Jamestown 486,504 492,652 507,432 531,908 Johnston 10,137,270 10,188,342 10,413,088 10,915,364 Lincoln 6,955,618 7,012,603 7,062,603 7,403,268 Little Compton 325,831 341,592 351,839 368,810 Middletown 9,916,122 9,916,122 10,014,086 10,497,116 Narragansett 1,709,968 1,725,404 1,809,860 1,897,159 Newport 11,060,746 11,060,746 11,253,278 11,796,080 New Shoreham 93,128 93,128 101,451 106,345 North Kingstown 11,317,305 11,384,463 11,434,463 11,986,005 North Providence 12,449,559 12,511,050 12,623,955 13,232,872 North Smithfield 4,540,392 4,541,694 4,611,787 4,834,237 Pawtucket 61,074,964 61,615,711 63,782,029 66,858,559 Portsmouth 5,811,300 5,854,978 6,632,443 6,250,042 Providence 181,224,594 181,224,594 185,142,176 193,974,756 Richmond 5,829,987 5,829,987 5,903,843 6,188,615 Scituate 3,200,400 3,200,400 3,250,400 3,407,183 Smithfield 5,306,854 5,332,948 5,407,726 5,668,568 South Kingstown 9,766,904 9,766,904 9,948,816 10,428,698 Tiverton 5,553,102 5,553,102 5,659,091 5,932,058 Warwick 34,941,323 35,195,464 35,894,621 37,626,000 Westerly 6,284,205 6,386,546 6,528,189 6,843,077 West Warwick 19,275,597 19,341,994 19,499,965 20,440,547 Woonsocket 43,813,046 43,913,617 45,425,511 47,616,613 Bristol-Warren 19,183,751 19,267,184 19,554,956 20,498,190 Exeter-West Greenwich 7,216,180 7,227,202 7,308,493 7,661,019 Chariho 360,305 368,936 380,004 398,334 Foster-Glocester 5,395,937 5,395,937 5,466,199 5,729,861 Central Falls 35,670,888 36,068,643 41,319,965 43,313,036 Total 643,373,792$ 639,729,296$ 658,328,665$ 689,283,105$

Education Aid By Community



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Community FY 2008 Enacted

FY 2009 HFC General

Revenues Permanent School Fund FY 2009 Total

Change to Enacted

Barrington 2,599,526$ 2,599,526$ 51,209$ 2,650,736$ 51,209$ Burrillville 13,854,743 13,854,743 272,931 14,127,674 272,931 Charlestown 2,002,838 2,002,838 39,455 2,042,292 39,455 Coventry 20,075,081 20,075,081 395,468 20,470,549 395,468 Cranston 35,580,911 35,475,911 698,856 36,174,767 593,856 Cumberland 13,257,009 13,257,009 261,156 13,518,164 261,156 East Greenwich 1,949,761 1,949,761 38,409 1,988,171 38,409 East Providence 26,888,254 26,888,254 529,684 27,417,938 529,684 Foster 1,416,463 1,416,463 27,904 1,444,366 27,904 Glocester 3,213,847 3,213,847 63,311 3,277,158 63,311 Hopkinton 6,241,352 6,241,352 122,951 6,364,303 122,951 Jamestown 531,908 531,908 10,478 542,386 10,478 Johnston 10,915,364 10,750,364 211,776 10,962,140 46,776 Lincoln 7,403,268 7,403,268 145,840 7,549,108 145,840 Little Compton 368,810 368,810 7,265 376,076 7,265 Middletown 10,497,116 10,497,116 206,787 10,703,904 206,787 Narragansett 1,897,159 1,897,159 37,373 1,934,532 37,373 Newport 11,871,080 11,871,080 233,854 12,104,934 233,854 New Shoreham 106,345 106,345 2,095 108,439 2,095 North Kingstown 11,986,005 11,986,005 236,118 12,222,123 236,118 North Providence 13,262,872 13,382,872 263,635 13,646,507 383,635 North Smithfield 4,834,237 4,834,237 95,232 4,929,469 95,232 Pawtucket 67,023,559 67,023,559 1,320,327 68,343,885 1,320,327 Portsmouth 6,700,042 6,700,042 131,987 6,832,029 131,987 Providence 194,109,756 193,869,756 3,819,126 197,688,882 3,579,126 Richmond 6,188,615 6,188,615 121,912 6,310,528 121,912 Scituate 3,407,183 3,407,183 67,120 3,474,303 67,120 Smithfield 5,743,568 5,743,568 113,145 5,856,713 113,145 South Kingstown 10,548,698 10,548,698 207,803 10,756,501 207,803 Tiverton 5,932,058 5,932,058 116,858 6,048,916 116,858 Warwick 37,626,000 37,626,000 741,211 38,367,211 741,211 Westerly 6,843,077 6,843,077 134,805 6,977,881 134,805 West Warwick 20,440,547 20,440,547 402,667 20,843,214 402,667 Woonsocket 47,616,613 47,421,613 934,179 48,355,792 739,179 Bristol-Warren 20,498,190 20,438,190 402,621 20,840,811 342,621 Exeter-West Greenwich 7,661,019 7,586,019 149,440 7,735,459 74,440 Chariho 398,334 398,334 7,847 406,181 7,847 Foster-Glocester 5,729,861 5,729,861 112,875 5,842,736 112,875 Central Falls 43,873,873 43,873,873 864,291 44,738,163 864,290 Total 691,094,942$ 690,374,942$ 13,600,000$ 703,974,942$ 12,880,000$

Education Aid By Community



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Section IV

FY 2008 Changes to 2008-H 7204 Substitute A



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FY 2008 Changes to H 7204 Gen. Rev. Federal Restricted Other Total

Revenue Changes1 May Revenue Estimating Conference (628,384) (628,384)

Total (628,384) - - - (628,384)

Expenditures Changes Administration

2 Energy Resources Adjustment 326,339 (634,884) (308,545) 3 Capital - Cannon Building (80,000) (80,000) 4 Capital - DOIT Operations Center (8,975,000) (8,975,000) 5 Capital - Environmental Compliance (462,956) (462,956) 6 Capital - Fueling Tanks Replacement (550,000) (550,000) 7 Capital - Ladd Center Water System (50,000) (50,000) 8 Capital - Lead Mitigation (300,000) (300,000) 9 Capital - Old State House (529,845) (529,845) 10 Capital - Pastore Center Utilities (304,282) (304,282) 11 Capital - Pastore Center Water Tanks & Pipes (480,000) (480,000) 12 Capital - Statehouse Renovations (2,700,000) (2,700,000) 13 Capital - Zambarano Utilities, Infrastructure (150,000) (150,000)

Labor and Training14 Police and Fire Benefits 41,348 41,348

General Treasurer15 Unclaimed Property Claims 141,365 141,365 16 Unclaimed Property Transfer (500,000) (500,000)

Children, Youth and Families17 Capital - Eckerd Camp E-Hun-Tee (85,000) (85,000) 18 Capital - Group Homes Fire Upgrades (150,000) (150,000)

Elderly Affairs19 May Revenue Gasoline Tax Adjustment (150,000) (150,000)

Human Services20 Caseload Estimating Conference (2,922,000) (6,330,532) (1,343,131) (10,595,663)

Mental Health, Retardation and Hospitals21 Capital - Community Facilities Fire Code (750,000) (750,000) 22 Capital - Mental Health Residences (400,000) (400,000) 23 Capital - MR Community Facilities Repair (716,215) (716,215) 24 Capital - Pastore Medical Center Rehab (300,000) (300,000) 25 Capital - Slater Hospital Consolidation (3,700,000) (3,700,000)



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FY 2008 Changes to H 7204 Gen. Rev. Federal Restricted Other Total

Elementary and Secondary26 Capital - Davies HVAC (325,000) (325,000) 27 Capital - Davies Roof Repair (250,000) (250,000) 28 Capital - School for the Deaf 1,250,000 1,250,000

Higher Education29 Capital - CCRI Fire Code and HVAC (1,575,000) (1,575,000) 30 Capital - CCRI Knight Campus Nursing (60,000) (60,000) 31 Capital - URI Superfund Site Remediation (629,000) (629,000)

Corrections32 Capital - Bernadette Guay Bldg (700,000) (700,000) 33 Capital - Women's Unit Plumbing (681,000) (681,000) 34 Capital - Women's Unit Roof and General (1,026,103) (1,026,103)

Judicial35 Capital - Blackstone Valley Courthouse 100,000 100,000

State Police36 Capital - State Police Barracks (50,000) (50,000) 37 Capital - State Police Headquarters (1,000,000) (1,000,000)

E-911 Emergency Telephone System38 E-911 Pictometry Project (400,000) (400,000)

Environmental Management39 Capital - Jamestown Fishing Pier (97,000) (97,000)

Transportation40 Capital - Cherry Hill/Lincoln Facility (625,000) (625,000) 41 Maintenance Division Highway Lighting Surplus (37,698) (37,698) 42 May Revenue Gasoline Tax Adjustment-DOT (3,112,500) (3,112,500) 43 May Revenue Gasoline Tax Adjustment-RIPTA (1,087,500) (1,087,500)

Total (2,554,313) (6,730,532) (2,336,650) (30,739,099) (42,360,594)



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FY 2008 Changes to 2008-H 7204 Substitute A

Revenue Changes

1. May Revenue Estimating Conference. The May Revenue Estimating Conference increased the November Conference estimates for FY 2008 and FY 2009 by $76.4 million and $21.9 million, respectively. The Governor had included a number of revenue adjustments to the November Conference in his revised FY 2008 budget and FY 2009 recommended budget. Those that did not require legislation or were included in 2008-H 7204 Substitute A were included by the estimators. When they are taken into account, revenues are $0.6 million less than the FY 2008 revenues included in 2008-H 7204 Substitute A and $20.5 million less than in FY 2009.

Expenditure Changes

Administration

2. Energy Resources Adjustment. The Governor proposed legislation to create five restricted receipt accounts to support the Office of Energy beginning in FY 2008. The revised budget includes expenditures of $634,884 from newly proposed restricted receipts to support the Office of Energy Resources, but the accounts were not authorized in 2008-H 7204 Substitute A. Therefore, the House Finance Committee recommends $326,339 from general revenues and restricted receipt expenditures are reduced accordingly. 3. Capital - Cannon Building. The Capital Budget includes Rhode Island Capital Plan funds expenditure of $1.6 million to be used through FY 2012 for ongoing repairs and renovations at the Cannon Building, of which $379,381 is for FY 2008. The House Finance Committee recommends $80,000 less in the current year based on revised project cost. 4. Capital - DOIT Operations Center. The approved capital plan includes $9.0 million in FY 2008 from Rhode Island Capital Plan funds to acquire a new state of the art facility to house the state’s computer center. The Governor recommends that the funds provided for acquisition of a new state Data Center be used to convert the Training School’s administrative building at Pastore Center for that purpose when it is vacated by Department of Children, Youth and Families’ staff. The House Finance Committee shifts the total project cost to FY 2009 to reflect project delay. 5. Capital - Environmental Compliance. The House Finance Committee recommends a total project cost of $1.6 million to reflect historical spending patterns. The plan includes $125,000 for FY 2008, $250,000 for FY 2009 with amounts increasing in $25,000 increments annually. The Governor’s budget consolidates the Environmental Compliance project with the Environment Mandates project and includes $3.5 million through FY 2013 to assist state agencies in maintaining compliance with all state and federal environmental rules and regulations. 6. Capital - Fueling Tanks Replacement. The Capital Budget includes $1.2 million from Rhode Island Capital Plan funds, of which $0.6 million each will be used in FY 2008 and FY 2009 to replace failing tanks at five of the 18 state-owned and operated fueling stations for state vehicles. The House Finance Committee recommends shifting $550,000 from FY 2008 to FY 2009 based on a project delay. 7. Capital - Ladd Center Water System. The Capital Budget includes $550,000 from Rhode Island Capital Plan funds for repairs to the water system at the Ladd Center. This includes $50,000 in FY



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2008 for a study to determine whether there are more feasible options, such as replacing the water system with wells. The project has not started, and he House Finance Committee shifts the funding to reflect a one year delay. 8. Capital - Lead Mitigation. The House Finance Committee shifts FY 2008 expenditures of $0.3 million to FY 2012 based on updated year-to-date expenses for lead mitigation activities in the state’s residential community facilities. The total recommendation for $300,000 annually is $0.1 million less than the approved plan. 9. Capital - Old State House. The Capital Budget includes $1.0 million, including $0.5 million each in FY 2008 and FY 2009 from Rhode Island Capital Plan funds for various renovations at the Old State House. The House Finance Committee shifts FY 2008 funding to FY 2009 based on a project delay. 10. Capital - Pastore Center Utilities. The Governor’s Capital Budget includes $9.8 million in total expenditures to be used through FY 2013 for utilities upgrade in the Pastore Center. The Department indicates that $0.2 million of the budgeted $0.5 million will be used in FY 2008. The House Finance Committee recommends total project cost; however, reduces FY 2008 funding to reflect anticipated expenditures. The recommendation includes a shift of $1.0 million from FY 2009 and FY 2010 to FY 2011 and FY 2012 based on historical spending patterns. 11. Capital - Pastore Center Water Tanks & Pipes. The Capital Budget includes total expenditures of $2.0 million from Rhode Island Capital Plan funds to identify and address deficiencies at the Pastore Center with respect to water supply and distribution, including $480,000 for FY 2008; however, no funds have been spent yet. The House Finance Committee recommends shifting FY 2008 expenditures to FY 2013, and maintaining other funding as recommended to reflect this delay. 12. Capital – State House Renovations. The Governor’s Capital Budget includes $20.1 million from Rhode Island Capital Plan funds to be used through FY 2012 for renovations at the State House. The House Finance Committee concurs with the total project costs; however, shifts $2.7 million from FY 2008 to FY 2013 based on the delay of the HVAC system project. 13. Capital - Zambarano Utilities, Infrastructure. The Capital Budget includes $2.6 million in Rhode Island Capital Plan fund expenditures for repairs to various buildings and equipment at the Zambarano campus of the Eleanor Slater Hospital in Burrillville, of which $751,333 is for FY 2008. The House Finance Committee recommends shifting $150,000 from FY 2008 to FY 2013 based on a projected delay in expenditures for FY 2008.

Labor and Training 14. Police and Fire Benefits. The Governor proposed freezing eligibility for police and firefighter’s benefits including annuities and educational awards to those claims in effect prior to April 1, 2008 and his FY 2008 budget assumed savings from the passage of this legislation; however, the Assembly did not enact this legislation in 2008-H 7204 Substitute A. The House Finance Committee recommends adding $41,348 to fully fund projected FY 2008 claims.

General Treasurer



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15. Unclaimed Property Claims. The House Finance Committee recommends adding $0.1 million for unclaimed property claims for FY 2008 to reflect the estimate adopted by the May 2008 Revenue Estimating Conference. Claims are shown as expenditures in the Office of the General Treasurer’s operating budget. 16. Unclaimed Property Transfer. The House Finance Committee recommends lowering the unclaimed property transfer for FY 2008 by $0.5 million to reflect the estimate adopted by the May 2008 Revenue Estimating Conference. Transfers of unclaimed property to the state are shown as expenditures in the Office of the General Treasurer’s operating budget.

Children, Youth and Families

17. Capital - Eckerd Camp E-Hun-Tee. The Governor’s capital budget includes $150,000 in FY 2008 and FY 2009 for installation of a septic system, toilet system, and separate hand washing facilities, including hot water for the 30 youth at Camp E-Hun-Tee. The camp is a residential treatment program on state-owned land in the Arcadia Management Area. The House Finance Committee recommends shifting $85,000 from FY 2008 to FY 2010 to reflect a one-year delay in the project because bids received for the project were all more than funding included in the Governor’s recommended budget, requiring a redesign of the project. 18. Capital - Group Homes Fire Upgrades. The Governor’s capital budget includes $4.6 million from Rhode Island Capital Plan funds to provide fire code upgrades and safety improvements to 111 group home facilities with completion of the project in FY 2013. Based on revised construction schedules, the House Finance Committee recommends reducing $150,000 from FY 2008 and adding $118,298 to FY 2013.

Elderly Affairs

19. May Revenue Gasoline Tax Adjustment. The House Finance Committee includes $150,000 less in gas tax expenditures for the paratransit program to reflect the reduction in the gas tax yield adopted by the May Revenue Estimating Conference. The Department receives a dedicated 1-cent per gallon of the Rhode Island gas tax to support transportation services for the elderly. The conference reduced the yield from $4,685,000 to $4,535,000 for each penny.

Human Services

20. Caseload Estimating Conference. The House Finance Committee recommends a $10.6 million reduction from all funds, of which $2.9 million is from general revenues to adjust expenditures included in 2008-H 7204 Substitute A for the May Caseload Conference estimates for cash assistance caseloads and medical assistance expenditures. This is $1.1 million less from general revenues for cash assistance and $4.0 million less for medical assistance. The caseload estimators meet twice per year to estimate cash and medical assistance expenditures to provide a more stable and accurate method of financial planning and budgeting per Rhode Island General Law 35-17-1.

MHRH

21. Capital - Community Facilities Fire Code. The FY 2008 approved capital plan includes $7.0 million from Rhode Island Capital Plan funds to install new and upgrade existing fire alarm and sprinkler systems throughout the community developmental disability facilities. As part of 2008-H



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7204 Substitute A, $0.2 million from this project was shifted to the Eastman House project, and the House Finance Committee recommends further reducing funding for FY 2008 by $0.8 million based on updated spending information. The Committee provides $4.9 million, $3.8 million for the five year capital plan and includes $0.8 million annually for FY 2009 through FY 2013. The Department spent $0.4 million for FY 2008, $0.8 million less than the approved capital plan. 22. Capital - Mental Health Residences. The Governor’s recommended five year capital plan includes a total of $5.5 million from Rhode Island Capital Plan funds to provide housing to behavioral health clients through the thresholds program in cooperation with the Rhode Island Housing Mortgage and Finance Corporation. The Department did not spend the $0.4 million appropriated for FY 2008 and the House Finance Committee recommends providing that amount for FY 2009 with appropriations increasing by $100,000 increments annually for a total of $3.0 million for the five year period, which appears to be consistent with current spending. 23. Capital - MR Community Facilities Repair. The Governor’s recommended five year capital plan includes a total of $10.0 million for asset protection projects at the state’s 270 group homes for the developmentally disabled. The Department spent $1.3 million for FY 2008, $0.8 million less than the approved plan. The House Finance Committee recommends reducing funding for FY 2008 accordingly and provides $8.0 million for the five-year capital plan, $2.0 million less than the Governor’s recommendation which appears to be consistent with current spending for asset protection. 24. Capital - Pastore Medical Center Rehab. The Governor’s recommended five-year capital plan includes a total of $8.0 million from Rhode Island Capital Plan funds for ongoing maintenance of 11 buildings at the Pastore Center. The Department did not spend any funding appropriated for maintenance projects in FY 2008, and the House Finance Committee recommends shifting unspent FY 2008 funding and reducing FY 2009 funding by $250,000. 25. Capital - Slater Hospital Consolidation. The Governor’s recommended five year capital plan includes a total of $8.2 million from Rhode Island Capital Plan funds to consolidate Eleanor Slater Hospital operations from five buildings into three. This includes $3.7 million for FY 2008 and $4.5 million for FY 2009. The consolidation plan has changed, and the Department has not spent any funding appropriated for the project in FY 2008 since the new plan has not yet been approved. The House Finance Committee recommends shifting funding by one year and includes $3.7 million for FY 2009 and $4.5 million for FY 2010.

Elementary and Secondary

26. Capital - Davies HVAC. The House Finance Committee recommends shifting $325,000 from Rhode Island Capital Plan funds from FY 2008 to FY 2013 based on a revised project schedule to replace the HVAC rooftop units at the Davies Career and Technical Center. Total funding of $2.1 million is as included in the approved capital plan. The project would be programmed as $40,109 for FY 2008, $0.4 million for FY 2009 through FY 2011, $0.5 million for FY 2012, and $0.3 million for FY 2013. 27. Capital - Davies Roof Repair. The House Finance Committee recommends shifting $250,000 from Rhode Island Capital Plan funds from FY 2008 to FY 2013 based on a revised project schedule to finish replacing the roof at the Davies Career and Technical Center. Total funding of $3.1 million is as recommended. The project would be programmed as $0.3 million for FY 2008, $0.7 million for FY 2009, $0.8 million for FY 2010, $0.7 million for FY 2011, $0.4 million for FY 2012 and $0.3 million for FY 2013.



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28. Capital - School for the Deaf. The House Finance Committee recommends providing $1.3 million from Rhode Island Capital Plan funds for FY 2008 to begin the School for the Deaf project, for which the debt has not yet been issued. The 2006 Assembly authorized $31.3 million from Certificates of Participation to construct a new 91,400 square foot School for the Deaf on state owned land in Lincoln. The House Finance Committee recommends issuing $33.3 million, which includes a debt service reserve of $2.8 million and changes the location from Lincoln to Providence. A site analysis conducted during FY 2007 found that the Providence site was better suited to the new school, mostly because of the availability of space.

Higher Education

29. Capital - CCRI Fire Code and HVAC. The approved capital plan includes $1.7 million in each FY 2008 and FY 2009 to install a new HVAC system and state-of-the-art sprinkler system for approximately 500,000 square feet of space at the Knight and Flanagan Campuses. Based on project delays, the House Finance Committee recommends shifting $1.6 million from FY 2008 to FY 2009. This would provide $0.1 million for FY 2008 and $3.3 million for FY 2009. 30. Capital - CCRI Knight Campus Nursing. Based on delays in beginning the project, the House Finance Committee recommends shifting FY 2008 funding for the feasibility study for a new facility at the Knight Campus to support the nursing program to FY 2009. This would provide $125,000 for FY 2009. The 2006 Assembly appropriated $125,000 from Rhode Island Capital Plan funds to conduct a feasibility study for a new facility at the Knight Campus to support the nursing program. 31. Capital - URI Superfund Site Remediation. The approved capital plan includes $954,000 from Rhode Island Capital Plan funds for FY 2008 for expenses associated with the next phase of remediation of the Environmental Protection Agency designated Superfund site at the West Kingston Municipal Landfill and University of Rhode Island disposal area. The University has worked out a schedule with the Environmental Protection Agency and the United States Justice Department. Based on this schedule, the House Finance Committee recommends shifting $0.6 million from FY 2008 to FY 2009.

Corrections

32. Capital - Bernadette Guay Bldg. The Governor’s capital budget includes $981,644 in FY 2008 and $230,000 in FY 2009 from Rhode Island Capital Plan funds to complete roof, plumbing and HVAC repairs at the Bernadette facility of the Department of Corrections. The Department has not secured approval to begin the bid process for much of the remainder of the work, which would now not begin until FY 2009. The House Finance Committee recommends shifting the $700,000 of uncommitted funding to FY 2009. 33. Capital - Women's Unit Plumbing. The Governor’s capital budget includes $856,000 in FY 2008 from Rhode Island Capital Plan funds to complete the plumbing repairs and bathroom renovations at women’s facilities of the Department of Corrections. The Department will spend about $175,000 in FY 2008 on design work and replacement heaters, but has not secured approval to begin the bid process for the rest of the work, which would now not begin until FY 2009. The House Finance Committee recommends shifting the $681,000 of uncommitted funding to FY 2009. 34. Capital – Women’s Unit Roof and General. The Governor’s capital budget includes $1.0 million in FY 2008 from Rhode Island Capital Plan funds to complete the roof, masonry and general



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renovations project at women’s facilities of the Department of Corrections. The Department has not secured approval to begin the bid process for the roof work, which would now not begin until FY 2009 and could extend to FY 2010. The House Finance Committee recommends spreading the FY 2008 funding over two years, with $0.6 million for FY 2009 and $0.4 million for FY 2010.

Judicial

35. Capital - Blackstone Valley Courthouse. The Governor’s capital budget includes $83,080 from Rhode Island Capital Plan funds to complete the feasibility study for the new Blackstone Valley Courthouse in FY 2008. The General Assembly approved financing for construction of a new Blackstone Valley Courthouse during the 2007 legislative session for $71.0 million on a proposed site at the Lincoln Campus of the Community College of Rhode Island. The project location has changed and the House Finance Committee includes additional site costs of $100,000 for the new site at Routes 116 and 104 in Smithfield.

State Police 36. Capital - State Police Barracks. The House Finance Committee recommends shifting $50,000 from Rhode Island Capital Plan funds from FY 2008 to FY 2011 and adding $5,000 to the total for facility repairs to the State Police Barracks and the State Police Training Academy based on a delay in the bidding process. 37. Capital - State Police Headquarters. The House Finance Committee recommends reprogramming funding to reflect a construction schedule that occurs from FY 2008 through FY 2011. The Governor’s capital plan had construction completed by FY 2010. Based on updated scheduling, the Committee extends that one year with total funding of $26.0 million consistent with the Governor’s capital plan.

E-911 Emergency Telephone System

38. E-911 Pictometry Project. The House Finance Committee recommends shifting $400,000 from federal grant funds from FY 2008 to FY 2009 to reflect a delay in the completion of the pictometry database project. The FY 2008 revised budget includes $500,000 however; only $100,000 will be spent in FY 2008.

Environmental Management

39. Capital - Jamestown Fishing Pier. The capital plan includes $0.1 million for FY 2008 for the design of a fishing pier at the site of the former Jamestown Bridge. Design work was substantially completed in FY 2007, and only $3,000 was needed for FY 2008. The House Finance Committee recommends removing $97,000 from FY 2008 to reflect the completion of the design work.

Transportation

40. Capital - Cherry Hill/Lincoln Facility. The capital plan includes $0.6 million for FY 2008 and $0.7 million for FY 2009 to consolidate two Department of Transportation maintenance facilities into a new Smithfield location, which is currently occupied by the National Guard. Currently, a revised memorandum of understanding is being drafted between the Guard and the Department. This must be completed before renovations to the Smithfield facility can begin. The House Finance Committee recommends delaying funding, for one year to reflect this revised project schedule.



63

41. Maintenance Division Highway Lighting Surplus. Based on an amendment from the Governor, the House Finance Committee recommends reducing FY 2008 gas tax expenditures by $37,698 to reflect a surplus in the Department’s highway lighting account. The adjustment maintains the projected intermodal surface transportation fund opening surplus for FY 2009. 42. May Revenue Gasoline Tax Adjustment-DOT. The House Finance Committee recognizes a $3.1 million reduction in gas tax expenditures for the Department of Transportation in FY 2008 based on the gas tax estimate resulting from the May Revenue Estimating Conference, which reduced the proceeds collected from the tax. The Department of Transportation receives a dedicated 20.75 cents from the gas tax. The May conference reduced the yield per 1-cent from the $4.685 million included in 2008-H 7204 Substitute A to $4.535 million, or $150,000 less. The expenditures are adjusted accordingly. 43. May Revenue Gasoline Tax Adjustment-RIPTA. The House Finance Committee recommends a $1,087,500 reduction to expenditures included in 2008-H 7204 Substitute A for the operations of the Rhode Island Public Transit Authority to reflect a decrease in the gasoline tax proceeds per penny resulting from the May Consensus Revenue Estimating Conference. The Authority receives 7.25 cents of the gas tax, and the May estimate lowered the yield by $150,000 per cent.



64



Section V

Summary Tables



65

This Page Intentionally Left Blank



66

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 633,201,363$ 638,554,974$ 542,654,775$ 560,884,005$ Business Regulation 13,135,623 12,765,050 11,748,704 11,663,704 Labor and Training 459,385,094 502,524,339 478,470,405 484,805,942 Revenue 256,364,161 241,755,281 248,663,791 249,139,675 Legislature 35,964,082 35,567,738 35,615,553 35,615,553 Lieutenant Governor 925,112 839,816 884,920 901,418 Secretary of State 6,066,356 6,173,694 6,874,864 7,403,864 General Treasurer 36,890,123 36,998,956 31,448,068 31,489,283 Board of Elections 2,024,108 1,921,275 2,175,218 2,175,218 Rhode Island Ethics Commission 1,410,451 1,330,460 1,405,309 1,405,309 Governor's Office 4,921,696 4,773,728 4,658,611 5,158,611 Human Rights 1,388,940 1,322,567 1,382,968 1,382,968 Public Utilities Commission 7,096,087 6,938,452 6,869,214 6,869,214 Commission on Women 108,203 105,930 107,208 107,208

Subtotal - General Government 1,458,881,399$ 1,491,572,260$ 1,372,959,608$ 1,399,001,972$

Human ServicesHealth and Human Services 6,578,965$ 7,860,219$ 15,744,177$ 14,787,081$ Children, Youth and Families 232,749,891 234,551,885 209,585,164 209,941,252 Elderly and Advocacy - - 35,301,058 34,030,266 Elderly Affairs * 37,036,136 36,200,235 - Deaf and Hard of Hearing * 387,654 326,595 - 368,807 Developmental Disabilities * 461,111 405,702 - Commission on Disabilities * 968,079 795,912 - 911,985 Health 125,224,331 133,517,746 124,235,173 126,077,776 Human Services 1,811,144,472 1,802,051,877 1,764,717,231 1,761,532,038 MHRH 498,887,743 476,254,607 462,764,628 457,847,869 Child Advocate 560,757 522,070 558,800 558,800 Mental Health Advocate 424,343 405,546 431,171 431,171

Subtotal - Human Services 2,714,423,482$ 2,692,892,394$ 2,613,337,402$ 2,606,487,045$

EducationElementary and Secondary 1,096,216,347$ 1,104,699,930$ 1,130,427,074$ 1,131,930,047$ Higher Education 770,836,024 781,399,952 816,325,009 819,589,009 Arts Council 6,484,097 4,570,637 3,275,655 3,275,655 Atomic Energy 1,481,463 1,625,863 1,532,900 1,532,900 HEAA 29,350,404 29,707,831 29,240,665 26,649,807 Historical Preservation 2,603,164 2,526,981 2,323,114 2,323,114 Public Telecommunications 2,163,310 2,050,231 2,132,366 2,132,366

Subtotal - Education 1,909,134,809$ 1,926,581,425$ 1,985,256,783$ 1,987,432,898$

Expenditures from All Funds



67

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 23,903,316$ 23,364,400$ 23,731,514$ 23,731,514$ Corrections 197,210,155 194,535,134 184,094,239 186,497,239 Judicial 96,997,828 95,774,472 94,972,646 97,349,720 Military Staff 24,960,095 38,224,846 29,469,843 28,419,792 Public Safety * - - 108,978,402 87,825,459 E-911 * 6,030,052 5,854,082 - - Rhode Island State Fire Marshal * 2,899,257 3,393,175 - - Rhode Island Justice Commission * 4,342,326 4,874,535 - - Municipal Police Academy * 479,252 494,214 - - State Police * 61,643,945 57,725,243 - - Fire Safety Code 303,435 289,830 306,552 - Public Defender 9,746,784 9,374,872 9,716,729 9,716,729

Subtotal-Public Safety 428,516,445$ 433,904,803$ 451,269,925$ 433,540,453$

Natural ResourcesEnvironmental Management * 85,417,860$ 86,893,013$ 95,179,682$ 88,958,152$ CRMC * 4,508,659 5,702,171 - 5,236,662 Water Resources * 2,385,081 2,130,805 - 1,478,002

Subtotal-Natural Resources 92,311,600$ 94,725,989$ 95,179,682$ 95,672,816$

TransportationTransportation 374,140,874$ 342,701,694$ 370,784,490$ 370,026,380$

Subtotal-Transportation 374,140,874$ 342,701,694$ 370,784,490$ 370,026,380$

Total 6,977,408,609$ 6,982,378,565$ 6,888,787,890$ 6,892,161,564$

* These agencies are all involved in mergers and consolidations in the Governor's FY 2009 budget proposal.The FY 2009 request data has been recast for comparability with the Governor's recommendation.

Expenditures from All Funds



68

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 505,284,261$ 524,643,296$ 446,358,182$ 461,660,272$ Business Regulation 11,475,916 10,896,429 10,203,066 10,118,066 Labor and Training 6,583,162 6,418,535 6,299,992 6,513,092 Revenue 38,575,957 35,165,844 37,374,032 37,849,916 Legislature 34,440,361 34,116,203 34,099,202 34,099,202 Lieutenant Governor 925,112 839,816 884,920 901,418 Secretary of State 5,036,136 5,042,689 5,778,144 6,307,144 General Treasurer 2,908,550 2,773,767 2,563,767 2,563,767 Board of Elections 1,437,214 1,289,947 1,512,874 1,512,874 Rhode Island Ethics Commission 1,410,451 1,330,460 1,405,309 1,405,309 Governor's Office 4,921,696 4,773,728 4,658,611 5,158,611 Human Rights 984,197 951,677 991,659 991,659 Public Utilities Commission 661,246 647,628 - - Commission on Women 108,203 105,930 107,208 107,208

Subtotal - General Government 614,752,462$ 628,995,949$ 552,236,966$ 569,188,538$

Human ServicesHealth and Human Services 307,152$ 387,176$ 5,754,966$ 5,223,297$ Children, Youth and Families 149,249,856 151,976,515 136,984,222 137,133,720 Elderly and Advocacy - - 16,789,244 16,071,786 Elderly Affairs * 18,604,205 17,389,636 - Deaf and Hard of Hearing * 370,154 326,595 - 368,807 Developmental Disabilities * - - - Commission on Disabilities * 535,775 350,626 - 413,651 Health 34,487,126 31,169,612 30,757,908 32,281,674 Human Services 811,185,218 793,009,661 767,944,841 764,121,775 MHRH 243,459,229 234,197,334 219,609,438 219,533,014 Child Advocate 520,757 484,569 519,657 519,657 Mental Health Advocate 424,343 405,546 431,171 431,171


EducationElementary and Secondary 909,429,659$ 906,470,019$ 930,464,291$ 931,218,471$ Higher Education 196,068,047 189,983,048 179,856,018 179,856,018 Arts Council 2,777,644 2,698,994 2,094,847 2,094,847 Atomic Energy 819,869 798,827 824,470 824,470 HEAA 11,019,684 10,219,792 9,913,909 7,323,051 Historical Preservation 1,577,792 1,487,312 1,348,825 1,348,825 Public Telecommunications 1,363,654 1,316,196 1,365,306 1,365,306

Subtotal - Education 1,123,056,349$ 1,112,974,188$ 1,125,867,666$ 1,124,030,988$

Expenditures from General Revenues



69

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 21,335,305$ 20,626,429$ 21,212,039$ 21,212,039$ Corrections 187,954,532 184,551,095 178,173,504 178,623,504 Judicial 84,964,917 82,799,916 82,622,926 85,000,000 Military Staff 2,563,864 2,497,995 3,739,948 3,739,948 Public Safety * - - 81,956,037 66,828,094 E-911 * 4,733,109 4,879,367 - - Rhode Island State Fire Marshal * 2,671,285 2,354,698 - - Rhode Island Justice Commission * 160,815 231,853 - - Municipal Police Academy * 429,252 427,814 - - State Police * 52,058,385 50,688,921 - - Fire Safety Code 303,435 289,830 306,552 - Public Defender 9,324,951 9,015,956 9,468,259 9,468,259


Natural ResourcesEnvironmental Management * 36,413,000$ 34,213,462$ 38,335,089$ 35,779,384$ CRMC * 1,879,559 1,940,645 - 1,877,703 Water Resources * 1,893,081 1,628,970 - 1,378,002


TransportationTransportation -$ -$ -$ -$

Subtotal-Transportation -$ -$ -$ -$

Total 3,403,638,116$ 3,367,814,358$ 3,272,710,433$ 3,273,225,011$


Expenditures from General Revenues



70

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 45,581,896$ 50,071,381$ 33,952,039$ 33,952,039$ Business Regulation 51,742 201,742 - - Labor and Training 28,124,845 35,517,258 35,395,196 35,594,755 Revenue 1,335,145 2,128,997 1,894,095 1,894,095 Legislature - - - - Lieutenant Governor - - - - Secretary of State 586,744 572,503 541,139 541,139 General Treasurer 1,916,146 1,150,186 1,170,081 1,170,081 Board of Elections 586,894 631,328 662,344 662,344 Rhode Island Ethics Commission - - - - Governor's Office - - - - Human Rights 404,743 97,097 391,309 391,309 Public Utilities Commission 100,124 370,890 100,547 100,547 Commission on Women - - - -


Human ServicesHealth and Human Services 5,826,265$ 7,158,672$ 7,891,563$ 7,593,011$ Children, Youth and Families 80,211,094 79,704,679 69,633,001 69,839,591 Elderly and Advocacy - - 12,898,249 12,708,480 Elderly Affairs * 13,056,931 12,945,599 - - Deaf and Hard of Hearing * 17,500 - - - Developmental Disabilities * 461,111 405,702 - - Commission on Disabilities * 181,692 194,380 - 189,769 Health 65,305,387 77,051,911 68,088,703 68,180,665 Human Services 989,435,533 1,000,247,417 987,279,551 989,260,555 MHRH 243,971,014 234,903,609 226,713,559 222,943,224 Child Advocate 40,000 37,501 39,143 39,143 Mental Health Advocate - - - -


EducationElementary and Secondary 178,395,910$ 189,172,713$ 191,008,411$ 191,008,411$ Higher Education 3,526,446 5,300,814 3,646,277 3,646,277 Arts Council 706,453 671,643 741,355 741,355 Atomic Energy 420,940 537,277 407,277 407,277 HEAA 12,612,204 12,366,402 12,550,536 12,550,536 Historical Preservation 529,078 547,676 479,640 479,640 Public Telecommunications - - - -

Subtotal - Education 196,191,031$ 208,596,525$ 208,833,496$ 208,833,496$

Expenditures from Federal Grants



71

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 1,379,464$ 1,392,517$ 1,263,609$ 1,263,609$ Corrections 2,807,500 3,583,559 2,640,735 2,712,735 Judicial 2,064,119 2,679,752 1,939,312 1,939,312 Military Staff 20,594,699 32,645,206 23,999,074 22,949,023 Public Safety * - - 5,832,120 6,232,120 E-911 * - 100,000 - Rhode Island State Fire Marshal * 227,972 1,038,477 - Rhode Island Justice Commission * 4,151,511 4,509,682 - Municipal Police Academy * 50,000 66,400 - State Police * 1,091,916 2,367,548 - Fire Safety Code - - - Public Defender 421,833 358,916 248,470 248,470


Natural ResourcesEnvironmental Management * 28,153,533$ 30,857,460$ 34,845,754$ 33,435,438$ CRMC * 1,607,000 1,770,436 - 1,453,450 Water Resources * - - - -




Total 2,010,642,340$ 2,032,782,488$ 1,989,690,442$ 1,987,565,753$


Expenditures from Federal Grants



72

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 12,109,406$ 8,538,957$ 21,406,394$ 8,876,034$ Business Regulation 1,607,965 1,666,879 1,545,638 1,545,638 Labor and Training 28,283,698 25,075,274 19,068,769 24,905,914 Revenue 845,506 892,006 925,663 925,663 Legislature 1,523,721 1,451,535 1,516,351 1,516,351 Lieutenant Governor - - - - Secretary of State 443,476 558,502 555,581 555,581 General Treasurer 31,772,287 32,835,018 27,460,845 27,502,060 Board of Elections - - - - Rhode Island Ethics Commission - - - - Governor's Office - - - - Human Rights - - - - Public Utilities Commission 6,334,717 6,193,727 6,768,667 6,768,667 Commission on Women - - - -


Human ServicesHealth and Human Services 445,548$ 314,371$ 2,097,648$ 1,970,773$ Children, Youth and Families 1,753,941 2,250,556 1,757,941 1,757,941 Elderly and Advocacy - - 628,565 620,000 Elderly Affairs * 690,000 1,330,000 - - Deaf and Hard of Hearing * - - - - Developmental Disabilities * - - - - Commission on Disabilities * 50,612 14,355 - 8,565 Health 25,403,142 25,166,813 25,359,152 25,486,027 Human Services 9,223,721 8,694,799 9,367,839 8,024,708 MHRH 3,040,000 2,593,834 2,390,000 4,590,000 Child Advocate - - - - Mental Health Advocate - - - -

Subtotal - Human Services 40,606,964$ 40,364,728$ 41,601,145$ 42,458,014$

EducationElementary and Secondary 7,149,893$ 7,131,008$ 7,714,372$ 7,363,165$ Higher Education 893,520 1,093,499 641,526 1,041,526 Arts Council - 200,000 - - Atomic Energy - - - HEAA - - - - Historical Preservation 496,294 491,993 494,649 494,649 Public Telecommunications - - - -


Expenditures from Restricted Receipts



73

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 973,547$ 940,574$ 980,866$ 980,866$ Corrections - - - Judicial 8,518,792 8,661,007 8,710,408 8,710,408 Military Staff 407,532 301,504 315,321 315,321 Public Safety * - 434,000 434,000 E-911 * 1,296,943 874,715 - - Rhode Island State Fire Marshal * - - - Rhode Island Justice Commission * 30,000 133,000 - - Municipal Police Academy * - - - - State Police * 312,100 461,447 - - Fire Safety Code - - - - Public Defender - - - -


Natural ResourcesEnvironmental Management * 16,945,441$ 16,071,872$ 16,661,875$ 16,411,875$ CRMC * 1,022,100 395,000 - 250,000 Water Resources * 400,000 400,000 - -


TransportationTransportation 661,834$ 1,444,708$ 1,447,246$ 1,447,246$

Subtotal-Transportation 661,834$ 1,444,708$ 1,447,246$ 1,447,246$

Total 162,635,736$ 156,176,953$ 158,249,316$ 152,502,978$


Expenditures from Restricted Receipts



74

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 70,225,800$ 55,301,340$ 40,938,160$ 56,395,660$ Business Regulation - - Labor and Training 396,393,389 435,513,272 417,706,448 417,792,181 Revenue 215,607,553 203,568,434 208,470,001 208,470,001 Legislature - - - - Lieutenant Governor - - - - Secretary of State - - - - General Treasurer 293,140 239,985 253,375 253,375 Board of Elections - - - - Rhode Island Ethics Commission - - - - Governor's Office - - - - Human Rights - - - - Public Utilities Commission - - - - Commission on Women - - - -


Human ServicesHealth and Human Services -$ -$ -$ -$ Children, Youth and Families 1,535,000 620,135 1,210,000 1,210,000 Elderly and Advocacy - - 4,985,000 4,630,000 Elderly Affairs * 4,685,000 4,535,000 - - Deaf and Hard of Hearing * - - - - Developmental Disabilities * - - - - Commission on Disabilities * 200,000 236,551 - 300,000 Health 28,676 129,410 29,410 129,410 Human Services 1,300,000 100,000 125,000 125,000 MHRH 8,417,500 4,559,830 14,051,631 10,781,631 Child Advocate - - - - Mental Health Advocate - - - -

Subtotal - Human Services 16,166,176$ 10,180,926$ 20,401,041$ 17,176,041$

EducationElementary and Secondary 1,240,885$ 1,926,190$ 1,240,000$ 2,340,000$ Higher Education 570,348,011 585,022,591 632,181,188 635,045,188 Arts Council 3,000,000 1,000,000 439,453 439,453 Atomic Energy 240,654 289,759 301,153 301,153 HEAA 5,718,516 7,121,637 6,776,220 6,776,220 Historical Preservation - - - Public Telecommunications 799,656 734,035 767,060 767,060


Expenditures from Other Funds



75

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 215,000$ 404,880$ 275,000$ 275,000$ Corrections 6,448,123 6,400,480 3,280,000 5,161,000 Judicial 1,450,000 1,633,797 1,700,000 1,700,000 Military Staff 1,394,000 2,780,141 1,415,500 1,415,500 Public Safety * - - 20,756,245 14,331,245 E-911 * - - - - Rhode Island State Fire Marshal * - - - - Rhode Island Justice Commission * - - - - Municipal Police Academy * - - - - State Police * 8,181,544 4,207,327 - - Fire Safety Code - - - - Public Defender - - - -


Natural ResourcesEnvironmental Management * 3,905,886$ 5,750,219$ 5,336,964$ 3,331,455$ CRMC * - 1,596,090 - 1,655,509 Water Resources * 92,000 101,835 - 100,000




Total 1,400,492,417$ 1,425,604,766$ 1,468,137,699$ 1,478,867,822$


Expenditures from Other Funds



76

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

General GovernmentAdministration * 1,032.9 1,032.8 475.8 955.8 Business Regulation 105.0 102.0 98.0 97.0 Labor and Training 454.9 417.5 407.2 407.2 Revenue 475.0 465.0 460.0 464.0 Legislature 298.2 297.9 297.9 297.9 Lieutenant Governor 9.5 9.0 8.0 8.0 Secretary of State 58.0 58.0 55.0 55.0 General Treasurer 88.0 88.0 86.0 86.0 Board of Elections 14.0 14.0 14.0 14.0 Rhode Island Ethics Commission 12.0 12.0 12.0 12.0 Governor's Office 44.0 45.0 39.0 39.0 Human Rights 14.5 14.5 14.5 14.5 Public Utilities Commission 45.7 45.0 44.0 44.0 Commission on Women 1.0 1.0 1.0 1.0

Subtotal - General Government 2,652.7 2,601.7 2,012.4 2,495.4

Human ServicesHealth and Human Services 5.0 6.0 102.2 92.2 Children, Youth and Families 805.0 788.5 733.5 738.5 Elderly and Advocacy * - - 44.6 37.0 Elderly Affairs * 46.0 44.0 - - Deaf and Hard of Hearing * 3.0 3.0 - 3.0 Developmental Disabilities * 2.0 2.0 - - Commission on Disabilities * 5.6 5.6 - 4.6 Health 459.0 437.1 409.5 413.5 Human Services 1,109.0 1,067.6 966.4 966.4 MHRH 1,761.0 1,657.6 1,372.6 1,379.6 Child Advocate 5.8 5.8 5.8 5.8 Mental Health Advocate 3.7 3.7 3.7 3.7

Subtotal - Human Services 4,205.1 4,020.9 3,638.3 3,644.3

EducationElementary and Secondary 335.2 332.0 330.0 330.0 Higher Education 4,334.8 4,334.8 4,273.9 4,273.9 Arts Council 8.6 8.6 8.6 8.6 Atomic Energy 8.6 8.6 8.6 8.6 Higher Education Assistance Authority 46.0 42.6 42.6 42.6 Historical Preservation 17.6 17.6 16.6 16.6 Public Telecommunications 20.0 20.0 20.0 20.0

Subtotal - Education 4,770.8 4,764.2 4,700.3 4,700.3

Full-Time Equivalent Positions



77

FY 2008 Enacted

FY 2008 Final

FY 2009 Recommended

FY 2009 Committee

Public SafetyAttorney General 234.8 234.8 231.1 231.1 Corrections 1,508.6 1,515.0 1,464.0 1,464.0 Judicial 732.5 732.3 729.3 729.3 Military Staff 110.0 104.0 103.0 103.0 Public Safety * - - 591.5 414.5 E-911 * 53.6 53.5 - - Rhode Island State Fire Marshal * 35.0 35.0 - - Rhode Island Justice Commission * 7.6 7.6 - - Municipal Police Academy * 4.0 4.0 - - State Police * 272.0 268.0 - - Fire Safety Code 3.0 3.0 3.0 - Public Defender 93.5 93.5 93.5 93.5

Subtotal-Public Safety 3,054.6 3,050.7 3,215.4 3,035.4

Natural ResourcesEnvironmental Management * 491.4 482.0 501.0 473.0 CRMC * 30.0 30.0 - 30.0 Water Resources * 9.0 6.0 - 6.0

Subtotal-Natural Resources 530.4 518.0 501.0 509.0

TransportationTransportation 773.7 733.2 729.2 729.2

Subtotal-Transportation 773.7 733.2 729.2 729.2

Statewide retirements effective Oct. 1 (400.0)

Total Positions 15,987.3 15,688.7 14,796.6 14,713.6


Full-Time Equivalent Positions



Section VI

Article Explanations




79

Explanation of Articles

Article 1 • Section 1. FY 2009 Appropriations. This section of Article 1 contains the appropriations for FY 2009. • Section 2. Line Item Appropriations. This section establishes that each line of Section 1 in Article 1 constitutes an appropriation. • Section 3. Transfer of Functions. This section of Article 1 authorizes the Governor to transfer appropriations and full-time equivalent position authorizations associated with transfers of functions. • Section 4. Resource Recovery Transfer. Section 4 of Article 1 transfers $7.5 million from the Rhode Island Resource Recovery Corporation to state general revenues on June 30, 2009. Of this amount, $4.0 million was included in the Governor’s proposed budget and the Assembly included $3.5 million of additional transfers to state general revenues for a total transfer of $7.5 million for FY 2009. • Section 5. Capital Extinguishment. Section 5 of Article 1 extinguishes $60.0 million from the authority to issue up to $80.0 million granted to the Rhode Island Industrial Recreational Building Authority to insure mortgage payments required by a mortgage on any industrial and/or recreational project. The authorization is provided by Chapter 91 of the Public Laws of 1958 and Chapter 537, Section 3 of the Public Laws of 1987, and this article extends the authority to issue the remaining debt for seven years. • Section 6. Internal Service Funds. Section 6 of Article 1 authorizes the establishment of limited and specific internal service accounts to implement the cases in which state agencies provide services to other state agencies, institutions and other governmental units on a cost reimbursement basis. • Section 7. Legislative Intent. This section of Article 1 authorizes the chairpersons of the finance committees of the two chambers to provide a “statement of legislative intent” for specifying the purpose of the appropriations contained in Section 1 of this article. • Section 8. Temporary Disability Insurance Funds. Section 8 of Article 1 appropriates all funds required for benefit payments from the Temporary Disability Insurance Fund and the Temporary Disability Insurance Reserve Fund for FY 2009. This section appears annually. • Section 9. Employment Security Funds. Section 9 of Article 1 appropriates all funds required for benefit payments for the unemployed from the Employment Security Fund for FY 2009. This section appears annually. • Section 10. Lottery. This section of Article 1 appropriates to the Lottery Division any funds required for the payment of prizes and commissions. The Lottery is a division of the state’s Department of Revenue, but prizes are not included as expenditures in the budget.




80

• Section 11. Full-Time Equivalent Positions. This section of Article 1 limits the maximum number of full-time equivalent positions authorized for the departments and agencies during any payroll period in FY 2009. It also provides that no contracted employee can be hired nor may any agency contract for services replacing work done by state employees without public hearings and recommendations by the Budget Office and State Director of Personnel and determination of need by the Director of Administration. In addition, state employees whose funding is from non-state funds that are time limited, shall receive appointments limited to the availability of the non-state funding source. It includes a reduction of 400 positions effective October 1, 2008, based on expected retirements that is not allocated to specific agencies. The section also includes the usual provision for the Governor or designee, Speaker of the House or designee, and President of the Senate or designee to jointly adjust the authorization. • Section 12. Multi-Year Appropriations. Section 12 of Article 1 makes multi-year appropriations for a number of capital projects included in the FY 2009 through FY 2013 Capital Budget that are funded with Rhode Island Capital Plan funds. The FY 2009 and multi-year appropriations supersede appropriations made for capital projects in Section 12 of Article 1 of the FY 2008 Appropriations Act. • Section 13. Rhode Island Capital Plan Reappropriations. This section of Article 1 provides for automatic reappropriation of unexpended balances from FY 2009 Rhode Island Capital Plan fund projects over $500. Balances of less than $500 can be reappropriated at the discretion of the State Budget Officer. The provision for the Budget Officer’s discretion over balances less than $500 appeared for the first time in FY 2006. • Section 14. Rhode Island Health and Educational Building. Article 1, Section 14, transfers $1.1 million from the Rhode Island Health and Educational Building Corporation to the state for FY 2009. A portion of this reflects the $754,000 that the Corporation has pledged to pay the salary and benefit costs for the 3.0 positions that oversee the school construction program in the Department of Elementary and Secondary Education’s budget and for 4.0 contract positions in the Department of Health. The Corporation has indicated that this is a three-year commitment to fund these positions. The Corporation also has additional revenues available from which it makes approximately $350,000 in discretionary grants annually. • Section 15. Effective Date. This section of Article 1 establishes July 1, 2008 as the effective date of the article.

Article 2. Short Term Borrowing Article 2 allows the state to borrow a maximum of $350.0 million during FY 2009 for cash flow purposes in anticipation of tax receipts. The note must be repaid by June 30, 2009. The borrowing cap is higher than the $270.0 recommended by the Governor to cover the cost of initial payments from the Historic Preservation Tax Credit Fund and will be repaid upon issuance of those bonds. The interest rate on those new bonds is significantly higher than the interest on the tax anticipation notes.




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Article 3. Bond Premiums The 2006 Assembly provided that beginning in FY 2008 bond premiums would be used to lower the amount of bond issuance. The premiums are upfront payments bondholders make in order to get higher tax exempt rates, causing higher debt service. Past practice had been to use the premiums as general revenues up front and then pay higher debt service over the period of the bonds, which the 2006 Assembly halted. Consistent with the intent of the 2006 Assembly, this article requires that all bond premiums be deposited in Rhode Island Capital Plan funds. The Governor had proposed reversing the actions of the 2006 Assembly to again use the premiums as general revenues, however he did not include $3.0 million anticipated bond premiums as additional general revenue in his FY 2009 budget. The article would be effective on passage.

Article 4. Public Corporation Debt Management Act The Public Corporation Debt Management Act requires that all new debt authorizations be approved by the Assembly except in certain circumstances. This article contains eight authorizations, including: $33.3 million through appropriations backed Certificates of Participation to construct a new School for the Deaf and $53.1 million to fund energy conservation improvements at the Pastore Center and the Zambarano Campus. Section 4 authorizes the Rhode Island Economic Development Corporation to issue revenue bonds up to $348.7 for the Historic Preservation Tax Credit Trust Fund. This article contains a total of $151.1 million in new debt for projects at the University of Rhode Island. These include $11.2 million from revenue bonds to support infrastructure improvements in the north district of the campus, $19.4 million from revenue bonds for fire code upgrades to auxiliary enterprise buildings, $4.0 million from revenue bonds to construct a new student athlete development center, $42.7 million from revenue bonds to construct a new 350-bed residence hall on the site of the existing Terrace Apartment buildings, and $73.9 million to convert or refund previously authorized bonds. The article extinguishes two 2003 authorizations; one is for $4.3 million for the University of Rhode Island’s Alton Jones project, which is no longer in the capital plan. The second is for $7.5 million for the Rhode Island College Residence Halls project, which was replaced with bond proceeds and has subsequently been built. The article also sets a time limit for the issuance of debt to FY 2009 for three projects, including the University of Rhode Island North District Infrastructure and Fire Code Upgrades projects and the Healthcare Information Exchange.

Article 5 • Section 1. Capital Development Program. Section 1 of Article 5 would place $87.22 million of new general obligation bond authorizations on the November 2008 ballot as referendum. The referendum would provide $80.0 million for highway, bridge and road improvements, $3.6 million for commuter rail construction and $3.6 million for bus replacement or rehabilitation at the Rhode Island Public Transit Authority. The article does not include the authorization for $35.0 million of environmental bond referenda that were included in the Governor’s proposal.




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• Section 2. Ballot Labels. This section of Article 5 requires that the Secretary of State prepare ballot labels for each of the referenda items with the designations “approved” or “reject” provided next to the description of each project and that the labels be turned over to the Board of Elections. This section also states that general election laws will apply to voting on the referenda items. • Section 3. Approved by the People. This section of Article 5 states that any referendum item approved by a majority of the voters shall be considered approved by the people. • Section 4. Bonds for Capital Development Program. This section of Article 5 authorizes the General Treasurer, with the approval of the Governor, to issue bonds for the implementation of the capital development program. The total issued cannot exceed the amounts approved by the voters for any one project. • Section 5. Refunding of 2008 Capital Development Program. This section of Article 5 authorizes the General Treasurer, with the approval of the Governor, to issue bonds to refund any capital development bonds authorized by the voters in November 2008. • Section 6. Use of Proceeds. This section of Article 5 shows the use of the bond proceeds from the referenda as follows:

• $80.0 million for the highway improvement plan • $3.57 million for the commuter rail • $3.645 million for RIPTA bus replacement/rehabilitation

• Section 7. Sale of Bonds and Notes. This section of Article 5 authorizes the General Treasurer, with the approval of the Governor, to sell notes and bonds authorized under the remaining sections of Article 5 if it deemed to be the best interest of the state. Any premium or accrued interest received is to be deposited into the state’s general fund for the payment of debt service on the bonds. In the event that there are surplus proceeds from the sale of bonds for the implementation of the capital development program, these surplus proceeds can be used to retire the bonds as they become due or to redeem bonds or notes that have been issued. Lastly, this section states that the bonds or notes issued in accordance with this Article shall remain valid and binding even if the general officers who signed the bonds have ceased to hold office. • Section 8. Tax Exempt Status of Bonds. This section of Article 5 states that bonds and notes issued under the authority of the Appropriations Act are tax-exempt. The full faith and credit of the state are pledged for the payment of debt service. • Section 9. Investment of Bond Proceeds. This section of Article 5 states that monies in the capital development fund may be invested by the State Investment Commission until required for payment of expenditures. Income from the investments will be deposited into the general fund for the payment of debt service charges. • Section 10. Amortization. This section of Article 5 insures that sufficient funds for the payment of debt service costs on general obligation bonds are appropriated.




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• Section 11. General Fund Advances. This section of Article 5 allows the General Treasurer to advance monies from the general fund to the capital development bond fund in anticipation of the issuance of notes or bonds authorized under this act. The monies are to be repaid upon the issuance of the bonds or notes. The Governor and the Director of the Department of Administration must approve such advances. • Section 12. Federal and Private Funds. This section of Article 5 authorizes the Director of Administration to apply for federal funds or to utilize private funds that may be made available for capital projects authorized by the voters. • Section 13. Effective Date. This section of Article 5 establishes Sections 1, 2, 3, 11 and 12 shall take effect upon passage. The remaining sections shall take effect when and if the state board of elections shall certify to the Secretary of State that a majority of the qualified electors voting on the propositions contained in section 1 have indicated their approval of all or any projects.

Article 6. Licensing of Massage Therapy Establishments and Tanning Facility Inspections

This article eliminates licensing of massage therapy establishments and also provides for a periodic rather than annual inspection of tanning facilities.

Article 7. Supplemental Appropriation This article contains changes to the FY 2008 revised appropriations for expenditures contained in Article 1, Section 1 of Chapter 9 of the 2008 Public Laws that took effect May 1, 2008.

Article 8. Elderly Affairs Program Changes This article mandates enrollment in Medicare Part D for all eligible Pharmaceutical Assistance clients to save $150,000. Currently, only clients in the lowest income categories are required to enroll. It also requires use of generic drugs if available to save $500,000. The article also eliminates issuance of state identification cards for the elderly and disabled persons 18 and older upon their request. It further eliminates the Special Legislative Commission to reconcile the provisions of the state funded pharmaceutical assistance program with the Medicare Part D program. The Commission was required to recommend its findings to the Finance Committees by February 15, 2005.

Article 9. Reorganization Sections 1 through 9. Reorganization of Department of Elderly Affairs and Advocacy. Section 1 through 9 of this Article consolidates the duties and functions of the Council on Developmental Disabilities, and the Department of Elderly Affairs into a new Department of Elderly Affairs and Advocacy. The new department would be located at the Hazard building at the Pastore Center. Sections 10 through 25. Department of Public Safety. Sections 10 through 25 creates the Department of Public Safety. The following six agencies will be consolidated within this department: E-911 Emergency, Justice Commission, State Fire Marshal, Capitol Police, Municipal Police




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Academy, and State Police. This article will take effect upon passage, but the transfer of all appropriations, resources and personnel will take place on July 1, 2008. It does not include Division of the Sheriffs, which was proposed for merger in the Governor’s budget. Section 26. Boards for Design Professional. Section 26 reinstates membership in the Boards for Design Professionals to five board members per board from two board members per board.

Article 10. RIte Care and RIte Share Eligibility This article amends the medical assistance program by reducing parents’ income eligibility for RIte Care and RIte Share from 185 percent to 175 percent of the federal poverty level. The Governor proposed reducing the threshold to 133 percent of the federal poverty level eliminating benefits for 7,396 parents. This change allows 6,356 parents to retain the benefit with approximately 1,000 parents losing coverage. The article would require program recipients whose income is between 133 and 150 percent of federal poverty level to pay a new $45 monthly cost sharing requirement. The monthly payment for recipients between 150 and 185 percent of the federal poverty level is $61. This article also mandates the dispensing of generic drugs to all RIte Care participants and also eliminates the $10,000 resource test used in determining eligibility for medical assistance. The state was unable to receive federal approval for the provision adopted by the 2006 Assembly and never implemented the requirement.

Article 11. Chemical Dependency Professionals Licensing This article transfers licensing of chemical dependency professionals to the Department of Health from the Department of Mental Health, Retardation and Hospitals. There are currently 300 licensed chemical dependence professionals. The article reduces the members of the Board of Licensing for Chemical Dependency from nine members to seven and adds an International Certification and Reciprocity Consortium/Alcohol and Other Drug Abuse (ICRC/AODA) member for purposes of supervision activities, board activities and standards. The article adds a new licensing category of advanced chemical dependency professional II certified through the Consortium. The article also adds attending employee assistance counseling services to activities the board may require a licensee to submit to once they are placed on probation.

Article 12. Court Fines and Fees This article increases court fees for good driver dismissals from $25 to $35 and increases all traffic violations by $10 each, effective July 1, 2008. This is estimated to generate $1.7 million in additional revenues. The Governor had proposed charging the value of the dismissed fine, which average $40, to those eligible for a good driver dismissal and estimated $1.1 million in additional revenues.




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Article 13. Municipal Tipping Fees Article 13 would amend current law to maintain the municipal tipping fee at $32.00 per ton for an additional fiscal year. The statutory rate would be $51.36 per ton in FY 2009. This is estimated to save municipalities $7.8 million. Rhode Island General Law 23-19-13 provides for a state subsidy when revenues are insufficient to meet the requirements to operate the solid waste program, however; the Corporation reports that it will not require a subsidy in FY 2009.

Article 14. Municipal Finances This article creates the Advisory Council on Municipal Finances, which will make recommendations on a uniform system of accounting for all cities, towns and municipalities. The article also requires that the Advisory Council on Municipal Finances takes into consideration the work of the Advisory Council on School Finances, which was created by the 2004 Assembly. The article takes effect upon passage.

Article 15. Local Aid Article 15 freezes the distribution of state share of video lottery terminal revenue at the FY 2008 enacted level. The article changes the reference year data used for the distribution for formula to be the same used for FY 2008. It also fixes the amount that is distributed through the General Revenue Sharing program to assure that all communities receive the same amount of aid in FY 2009 as FY 2008. Section 3 amends Rhode Island General Laws 29-6-2 relating to library aid to require that the state share be 25.0 percent and deletes the provision, which had required municipalities to provide library services at the same or a higher level of tax revenue than the previous year.

Article 16. Rhode Island Works Program This article replaces the Family Independence Program with the Rhode Island Works Program placing a priority on job preparation and job readiness. The article continues to provide for a 60 month lifetime limit however limits the ability to collect assistance to 24 consecutive months. The article implements the program for new recipients as of October 1, 2008 and applies to those current recipients as of July 1, 2010. The article reduces, from 6 cumulative months to 3 cumulative months, the time that a parent may be out of compliance with their work plan before the family’s cash assistance benefit is terminated. The article also limits program eligibility to an individual who is a resident as well as a either a citizen or a non-citizen who has been a legal permanent resident for at least 5 years.

Article 17. Medicaid This article changes the state’s Medicaid system affecting medical services through the Departments of Human Services, Mental Health, Retardation and Hospitals, Children, Youth and Families and Elderly Affairs. The article aims to provide Medicaid services in the least restrictive settings and to provide community alternatives creating a person-centered, opportunity driven program that provides for




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personal responsibility. It also aims to provide for a results-oriented system of coordinated care and maximizes available service options to promote accountability and transparency. The Department of Human Services, with assistance from the Executive Office of Health and Human Services may propose necessary legislation during 2008 when the General Assembly is not in session to the chairpersons of the House and Senate Finance Committees. The Chairpersons shall hold public hearings on the legislation and recommend to the Speaker of the House and the President of the Senate that a special session convene to consider the legislation.

Article 18. Affordable Energy Credits This article repeals the legislation passed by the 2006 Assembly enacting the Comprehensive Energy Conservation, Efficiency and Affordability Act, which created an Affordable Energy Fund to be used to provide energy and weatherization assistance and education to low income and very low-income households. This is estimated to reduce the tax credit loss by $4.2 million for FY 2009, $8.6 million for FY 2010, $13.1 million for FY 2011, $17.8 million for FY 2012 and $18.5 million for FY 2013. The 2007 Assembly had delayed the full-phase up to begin in tax year 2009 and phase up by one fourth percent per year.

Article 19. Hospital Uncompensated Care This article extends the uncompensated care payments to the community hospitals with the state making the payment of $109.1 million on July 13, 2009, which is FY 2010.

Article 20. Children’s Health Account-Mandated Benefits The article changes the annual assessment ceiling applied to all insurers for home health services, children’s intensive services and Comprehensive Evaluation, Diagnosis, Assessment, Referral and Re-evaluation services from $5,000 for each child to $5,000 per service for each child. This article also excludes Medicaid/RIte Care premiums from the assessment.

Article 21. General Public Assistance-Hardship Assistance Fund This article provides $634,210 from general revenues that the Director of the Department of Human Services may provide for hardship contingency payments for FY 2009.

Article 22. State Police Pensions This article would add five years to retirement thresholds for state police troopers hired after July 1, 2007. They would be eligible to retire after 25 years of service and must retire after 30 years of service. The benefit would be 50.0 percent of final salary at 25 years increasing in 3.0 percent increments for additional years served up to 65.0 percent for 30 years. Current troopers may retire after 20 years of service with 50.0 percent of pay increasing to a maximum of 65.0 percent for 25 years at which time retirement is mandatory. The original version of this article submitted in the Governor’s budget set the retirement benefits for new troopers at 65.0 percent for years 25 through 30, apparently in error.




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Article 23. Actuarial Fiscal Notes Article 23 requires that the cost of the actuarial studies required before passage of legislation affecting the retirement system be borne by the retirement system.

Article 24. Residential Placements Limit Article 24 adds new language to the Department of Children, Youth and Families’ statutes that places a limit of 1,000 youth in out-of-home placements at any time, effective January 1, 2009, excluding foster homes. It requires any savings from this cap to be reinvested into community-based services. There is no fiscal impact.

Article 25. Crime Victims Compensation Article 25 increases the funds available for administrative costs of the crime victims’ compensation program from five to fifteen percent of program resources.

Article 26. Supplemental Security Income This article decreases the state supplemental income payment on January 1, 2009 by the amount equal to the scheduled federal cost-of-living adjustment.

Article 27. Child Care Market Rate Survey This article provides a rate increase to the 1,137 child care providers in the state to the average of the 2002 and 2004 market rate survey levels. The budget includes $1.1 million for general revenues for the rate increase. Child care providers last received a rate adjustment January 1, 2004 based upon the 2002 market rate survey.

Article 28. Restricted Receipts This article creates several new restricted receipt accounts: the newborn screening restricted account in the Department of Health and the RICLAS group home operations account in the Department of Mental Health, Retardation and Hospitals. It also creates five restricted receipt accounts for the Office of Energy Resources to administer its programs: Regional Greenhouse Gas Initiative, Demand Side Management Grants, Renewable Energy Fund Administrative Reimbursement, Renewable Energy Development Fund, and the Energy Efficiency and Resources Management Council and exempts the first two from the state’s indirect cost charge. The article also makes a technical adjustment to a restricted receipt account that the 2007 Assembly created for reimbursements to the Office of the Health Insurance Commissioner and exempts that along with the OPEB System Restricted Receipt Account, RICLAS group home operations account from the indirect cost recovery assessment. It also includes a technical adjustment to eliminate the exemption of




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the Affordable Energy fund from the assessment consistent with passage of Article 18 which repeals the legislation creating the energy fund. The article also allows the Department of Health to utilize up to 15 percent of the receipts collected through the childhood and adult immunization account for childhood immunization administrative and quality assurance services and KIDSNET, the Department’s confidential, computerized child health information system.

Article 29. Public Utilities Commission Article 29 transfers the cost for the division of motor carriers from general revenues to rate payers through the assessment of utility companies. It also eliminates the requirement for the Commission to spot test metering devices.

Article 30. Historic Preservation This article repeals legislation contained in 2008-H 8016 Substitute A, which required for a Historic Preservation Tax Credit Trust Fund to be established outside of the general fund. The article requires that processing fees received be deposited in a Historic Preservation Tax Credit restricted receipt account within the state general fund. Section 4 of the Article 4 authorizes the Rhode Island Economic Development Corporation to issue revenue bonds up to $348.7 for the Historic Preservation Tax Credit Trust Fund. The article also extends authority to the Rhode Island Economic Development Corporation to issue the revenue bonds relating to the Historic Tax Credit upon approval of the Assembly.

Article 31. Hospital License Fee This article extends the hospital licensing fee in FY 2009 at a rate of 4.94 percent of hospitals’ net patient services revenue for the hospital fiscal year ending on or after September 30, 2006. It also amends the due date for the filing of hospital returns with the Division of Taxation to June 15, 2009 and for hospital payments of the fee to July 13, 2009. The total revenue collected from the hospitals will be $110.7 million including $104.9 million from the community hospitals and $5.8 million from Eleanor Slater Hospital at the Department of Mental Health, Retardation, and Hospitals. This article appears annually in the Appropriations Act.

Article 32. Health Insurers Tax This article adds nonprofit dental service corporations to the definition of insurers that are subject to the gross premiums tax. The article also raises the gross premiums tax from 1.1 percent to 1.4 percent for tax year 2009 and assumes $5.6 million in revenue from passage of the article. This article also removes the foreign tax credit as a credit against Rhode Island income tax and assumes $3.6 million in revenue. The article reduces the authorization that the Rhode Island Economic Development can issue from $2.0 million during any two-year period to $1.0 million for the Innovative Technology Credits and captures




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the $1.0 million in revenue. The 2006 Assembly enacted legislation authorizing the Rhode Island Economic Development to issue up to $2.0 million of Innovative Tax Credits. The purpose of the credit is to attract and retain serial entrepreneurs and to catalyze economic growth in high-wage, high-growth industries. This article also limits the motion picture production company tax credits issued per tax year to $15.0 million. This applies to tax years beginning after December 31, 2007.

Article 33. Business Regulation This article authorizes the Department of Business Regulation to assess licensees or insurance companies for reimbursement of expenses incurred by the Department for investigations and hearings of auto body shop matters. This article also transfers the licensing of burglar alarm businesses and installers to the Department of Labor and Training.

Article 34. Municipal and School Districts Health Insurance This article would prohibit the state and municipalities from specifying that an employer must procure a health care benefit plan from a specific provider in collective bargaining contracts.

Article 35. Judges Retirement Article 35 would reduce pension benefits for judges hired after January 1, 2009 from 100 percent of their average salary for the three highest consecutive years to 90 percent for those retiring with the full benefit. For those retiring earlier at a reduced benefit, it decreases from 75.0 percent to 70.0 percent. Judges are eligible for the full benefit when they have 20 years of service and are at least 65 years old or if they served 15 years are at least 70. The reduced benefit is an option for judges of any age who have served 20 years or those 65 and older who have served 10 years. The article also requires an additional 10.0 percent reduction in pension benefits if the retiree opts for a survivor benefit, which pays a spouse or minor child 50.0 percent of the retiree’s pension after death. Current judges have a survivor benefit without reduction in their pensions. The budget assumes no savings as this change is prospective.

Article 36. Collective Bargaining Fiscal Impact Statements This article requires school committees and city and town councils to prepare fiscal impact statements of all collective bargaining contracts for the contract term and two additional fiscal years succeeding the contracts. The article also requires that the fiscal impact statement and the awarded contract be publicized upon ratification.

Article 37. Nursing Facilities Cost-of-Living This article defers the start date of the nursing facilities cost-of-living adjustment from October 1, 2008 to April 1, 2009.




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Article 38. Education Aid Article 38 contains legislation for implementation of the FY 2009 education aid proposal. It requires that all funds received into the Permanent School Fund, up to $14.1 million, be allocated monthly to each school district in proportion to their school aid. The Assembly enacted legislation to allow the operation of video lottery games on a twenty-four hour basis on weekends and holidays. That legislation mandates that the additional revenue accruing to the state as the direct result of the additional hours, be deposited into the Permanent School Fund and allocated as education aid. This article also allows mayors and elected town administrators to create a type of charter school, called a mayoral academy that would be exempt from some of the laws governing charter schools including teacher retirement and prevailing wage laws.

Article 39. Effective Date Article 39 provides that the act shall take effect upon passage, except where a provision within an article specifies a retroactive or prospective effective date.



House Fiscal Advisory Staff Jodi Aubin Legislative Budget Analyst Office of the Lieutenant Governor Office of the Governor Public Utilities Commission RI Commission on Women RI Commission for Human Rights Department of Advocacy Office of the Child Advocate

Office of the Mental Health Advocate Historical Preservation and Heritage Commission RI Public Telecommunications Authority

Edward J. Cooney, Jr. Legislative Budget Analyst

Department of Human Services Department of Public Safety

E-911 Emergency Telephone System Division Fire Safety Code Board of Appeal and Review RI State Fire Marshal RI Justice Commission RI State Police RI Municipal Police Training Academy Sharon Reynolds Ferland Deputy House Fiscal Advisor Legislature Office of the General Treasurer Department of Corrections Hideilda Flores Administrative Assistant Linda M. Haley Principal Legislative Budget Analyst Office of Health and Human Services

Department of Health Department of Mental Health, Retardation and Hospitals RI Council on the Arts

Office of the Public Defender Jason Holt Legal Counsel John Mansolillo Committee Clerk Michael O’Keefe

House Fiscal Advisor Liza Pinto Senior Legislative Budget Analyst Department of Business Regulation Department of Labor and Training Department of Elementary and Secondary

Education Board of Governors for Higher Education

RI Atomic Energy Commission RI Higher Education Assistance Authority

Military Staff James A. Pontarelli Principal Legislative Budget Analyst Secretary of State Board of Elections Department of Children, Youth and Families

Department of Elderly Affairs and Advocacy Commission on the Deaf and Hard of Hearing

RI Developmental Disabilities Council Governor’s Commission on Disabilities Judicial Department

Richard Raspallo Legal Counsel Chantale Sarrasin Senior Legislative Budget Analyst Department of Administration Economic Development Corporation Department of Revenue RI Ethics Commission Office of the Attorney General Leslie Smith Administrative Assistant John-Paul Verducci Legislative Budget Analyst

Department of Environmental Management Coastal Resources Management Council State Water Resources Board RI Clean Water Finance Agency Narragansett Bay Commission

RI Resource Recovery Corporation Department of Transportation RI Public Transit Authority Turnpike and Bridge Authority RI Airport Corporation



Documents

House Fiscal Advisory Staff 2008-H 7390 Substitute A