Below is a summary of the items in the $9.96 billion FY 2020 Budget, as passed by the House Finance Committee. Under the rules, the House of Representatives must wait seven days before they can hold a floor vote on the FY 2020 Budget.
Article 2 State Funds
- 911 fees will now be placed in a restricted receipt account to bring RI into Federal compliance.
- Attorney General multistate lawsuit revenue fees will now pass to the General Fund and not appropriated via grant making.
Article 5 Taxes and Revenues
- Includes proposal to freeze beach fees for 3 years.
- Includes sales tax expansion to digital downloads.
- Includes tax relief for pass through entities by allowing a pass-through entity to pay the state income tax at the entity level the same as a C-Corporation and deduct it from the federal income tax passed through to the owners.
- Continues car tax phase out as planned.
Article 9 Education
- Removes the University of Rhode Island from the Council of Postsecondary Education and creates a separate Board of Trustees for URI.
Article 12 Economic Development
- Increases funding to Rebuild RI program cap to $200 million from $150 million.
- Extends sunset for all Commerce incentives by 6 months to December 31, 2020.
- Includes General Assembly authority over zones such as I-195 land for zoning and development.
Article 13 Human Services
- Increases fees paid to long term care facilities by 1%
- Creates an “Opioid Stewardship Act” which allows for a tax on manufacturers of opioids in the total amount of $5 million.
Article 15 Medical Marijuana
- Increases the number of compassion centers in RI from 3 to 9.
- Application licensing fees raised to $500,000.
- Compassion centers can be “full service” meaning they can grow as well as sell medical marijuana.
- Creates licensing structure for sale of CBD products.
- No Medicaid assessment for large employers.
- No business services taxes.
- No minimum wage increase.
- No adult recreational marijuana.
- No expansion of RI Promise to Rhode Island College or adult learners at CCRI.
- $7.85 Million to replace lost Federal funds and create 280 new high quality pre-k seats.