RI spending increases are 'not sustainable,' says budget watchdog. What they recommend

The Rhode Island Public Expenditure Council (RIPEC) reported that state spending is growing at an unsustainable rate, with a 10. 9% increase projected over the last two years compared to 6. 4% revenue growth. Medicaid spending rose by $377. 9 million, or 8.

4%, due to increased reimbursement rates for providers, despite a decrease in enrollment. RIPEC's president, Michael DiBiase, emphasized the need for spending cuts rather than tax increases to bridge the gap. The state's structural deficit is expected to hit $304 million at the start of the next fiscal year and could reach $462 million by 2029-2030. House Speaker K. Joseph Shekarchi and Senate President Valarie Lawson defended the spending increases, citing the necessity of supporting vital healthcare services for Rhode Islanders.

Education spending also grew by 4. 4%, with calls for reforms to better target funding. Progressive groups are anticipated to advocate for higher income tax rates for top earners that were previously denied. RIPEC recommends curtailing spending growth as a solution to the financial challenges faced by the state.