An election-year agenda focused on affordability would enable Rhode Islanders to pay millions of dollars less for energy and other costs, Gov. Dan McKee said during his State of the State address Tuesday night.
The Democratic governor sketched a litany of initiatives – a $325 per child tax credit for parents, cutting the portion of energy bills that come from state programs and taxes, and a two-cent gas tax rollback – without explaining how to pay for them during a tough budget year.
McKee claimed his “affordability for all agenda” would keep $215 million in Rhode Islanders’ pockets during the first year, ultimately saving $1.4 billion over five years.
“In the years ahead, we will keep fighting for the future Rhode Islanders deserve,” he said while speaking in a House of Representatives chamber packed with lawmakers and dignitaries. “We will keep Rhode Island building and our economy growing …. And we will work together to fight back against harmful policies from the Trump administration, protecting our most vulnerable and defending Rhode Island’s economy and values.”
But questions remain about some of the governor’s initiatives. It’s unclear, for example, how he would fulfill a vow to close a $14 million hole at RIPTA while cutting the gas tax, a leading revenue source for the public transit agency.
McKee vowed to hold private insurers accountable “by setting enforceable caps on costs, with penalties for any company that does not comply.” House Speaker Joe Shekarchi told reporters after the speech he was not clear on how the effort is meant to work.
And while the governor on Tuesday vowed to stop taxing Rhode Islanders on their Social Security income, the legislature in 2015 exempted federally taxable Social Security income for taxpayers at full retirement age and below certain income thresholds.
The governor did not mention it during his speech, but Shekarchi said the budget proposal McKee is scheduled to unveil on Thursday will include a new tax on Rhode Islanders who earn more than a million dollars a year.
Shekarchi and Senate President Val Lawson said it was too soon to assess McKee’s spending proposals. They said a better understanding of the state fiscal outlook will come into view after lawmakers review state revenue data in May.
House GOP Leader Michael Chippendale (R-Foster) delivered the Republican response to McKee’s address.
He blamed state spending by Democrats for making life more difficult for Rhode Islanders.
“In the year 2000, Rhode Island’s state budget was about $4.5 billion,” Chippendale said. “Last year it was over $14 billion – a 200% increase. Over that same period, real household income for Rhode Islanders only grew by about 25% to 30%. That isn’t a political talking point. That’s math.”
The governor, who has faced low poll ratings while seeking re-election, struck an upbeat tone in assessing his record and highlighting some of the Rhode Islanders in the audience. In one instance, he praised Providence Mayor Brett Smiley and Police Chief Oscar Perez for their role in responding to a mass shooting that killed 2Brown University students and injured 9 others last month.
Also cited: Sonya, a Rhode Island College senior set to graduate with one of the college’s first degrees in artificial intelligence; advocates who delivered millions of pounds of food during a shutdown in federal assistance; and Nelson and Freddie Mills, founders of Vatn Systems in Bristol, which makes underwater vehicles.
McKee said his budget will propose $600 million in borrowing through a series of November ballot questions to be decided by voters.
A $115 million bond would expand maritime and defense infrastructure at Quonset, invest in the I-195 District in Providence and in the life sciences industry, boost the ocean-tech industry and develop construction-ready sites for advanced manufacturing.
A $215 million bond would support new or upgraded facilities at state institutions of higher learning. Additional borrowing would go for career technical education and housing.
Former CVS executive Helena Foulkes, who is making her second challenge to McKee, held a morning news conference in which she vowed to fire RIDOT Director Peter Alviti and reform the state transportation agency in the wake of the sudden closure of the westbound Washington Bridge.
McKee’s address was preceded by the “People’s State of the State,” a demonstration during which speakers called for greater efforts to help needy people in Rhode Island.
