TGIF: Ian Donnis’ Rhode Island politics roundup for Jan 16, 2026

Gov. McKee had the spotlight this week, but the budget process – and the fate of the millionaires’ tax – has a long way to go

Brian Daniels, Director of the governor's Office of Management and Budget, and Rhode Island Gov. Daniel McKee at a press briefing Wednesday, June 25, 2025.
FILE: Brian Daniels, Director of the governor’s Office of Management and Budget, and Rhode Island Gov. Daniel McKee at a press briefing Wednesday, June 25, 2025.
David Wright/Ocean State Media
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Brian Daniels, Director of the governor's Office of Management and Budget, and Rhode Island Gov. Daniel McKee at a press briefing Wednesday, June 25, 2025.
FILE: Brian Daniels, Director of the governor’s Office of Management and Budget, and Rhode Island Gov. Daniel McKee at a press briefing Wednesday, June 25, 2025.
David Wright/Ocean State Media
TGIF: Ian Donnis’ Rhode Island politics roundup for Jan 16, 2026
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Sure, Hasbro can stab us where it hurts, but we can take away the commemorative license plates featuring the inimitable Mr. Potato Head, right? Thanks for stopping by for my weekly column. You can follow me through the week on Bluesky, threads and X. Here we go.

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1. STORY OF THE WEEK

Gov. Dan McKee tried to put his best foot forward this week. He delivered an upbeat State of the State address touting an “affordability for all agenda” aimed at voters’ economic concerns. McKee panned President Trump and outlined a litany of new initiatives – cutting energy costs, phasing out tax on Social Security, and repealing a two-cent gas tax hike – just the kind of thing that might sound good to Democratic primary voters. Two days later, state budget officials elaborated on the governor’s new spending plan, including a new tax on millionaires that went unmentioned in McKee’s State of the State address. In keeping with tradition, the governor’s speech received a lot of applause while Speaker Joe Shekarchi and Senate President Val Lawson faded into the woodwork – at least until reporters mobbed them immediately after to assess the prospects for McKee’s proposals. They dutifully pledged to review the initiatives during the legislative process over the months ahead. That boilerplate elides the reality that the General Assembly will make significant changes to the governor’s proposed $14.9 billion budget. At 74 and with five years under his belt already, McKee is trying to become the longest-serving governor in state history. As he tries to battle back from a series of low approval ratings in polls, the pressing question is whether voters’ views are somewhat flexible or largely fixed with 235 days left until the September primary.

2. THE BIG SPEND

During the briefing Thursday at the Department of Administration, state Budget Officer Joseph Codega emphasized that the governor’s proposed $145.4 million increase in state general revenue is more modest than a half-billion dollar spike in combined state and federal spending. Sure, but it’s hard to miss how Rhode Island’s latest envisioned spending plan is just a bit shy of $15 billion. During the GOP response to McKee’s State of the State, House GOP Leader Michael Chippendale (R-Foster) hammered the sharp upward spending trajectory long approved by Democrats. “In order to understand where Rhode Island is going, we have to be willing to look honestly at where we’ve been,” Chippendale said. “In the year 2000, Rhode Island’s state budget was about $4.5 billion dollars. Last year, it was over $14 billion dollars – a 200% increase. Over the 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.”

I asked Chippendale if McKee’s spending proposals are realistic in a tough budget year. “You know, that’s interesting,” he responded during an interview in the House GOP office. “That’s a budget question, but it’s also a political question, because I think some of that spending was intentionally put into the budget, knowing that it has to go through the House. And politically-speaking, when you are potentially going to be facing the speaker of the House as a primary contender, it seems to make sense that you would put things into the budget that are really shiny – that the people want – but yet the speaker can not pay for and will have to pull out. Excellent political move, but it really is going to just set up the people of the state to expect something that probably is not realistically coming their way.”

3. CLUB MILLIONAIRE

A million dollars doesn’t go as far as it used to (they tell me), but it’s still a lot of dough. Under McKee’s proposal, Rhode Islanders who earn that much in a year will pay three percentage points more (8.99%) on the amount over $1 million. On Thursday, Brian Daniels, director of the state Office of Management and Budget, blamed President Trump for the tax hike. “The governor has not supported a millionaires’ tax in the past,” Daniels said. “We were paying attention to what happened in Massachusetts, we weren’t quite ready to advance that proposal. [Trump’s 2025 spending bill] really forced our hands on this. There are tens of millions of dollars of impacts …. so we really had to start thinking about how we can pay for this.” Of course, as Chippendale suggested above, it can also be argued that the increase would be unnecessary if state spending had not climbed so much. Regardless, the envisioned income tax hike will be one of the most hotly debated issues in the months ahead, as progressives and labor will call it a matter of fairness, while conservatives and the business community warn of an outflow of affluent Rhode Islanders. And the battle over the millionaires’ tax in Massachusetts is still raging.

4. TALK OF THE TOWN

Some of the reaction to the governor’s proposed budget.

Alisha Pina of The Economic Progress Institute: “The Economic Progress Institute (EPI) applauds Governor McKee for including in his recommended FY2027 budget a number of proposals to help struggling Rhode Islanders while also raising revenue to protect the state in the face of relentless and detrimental federal cuts. Specifically, the governor’s proposal to create a fourth tax bracket – an additional three percent on taxable income above $1 million – is a good start towards increasing tax fairness in Rhode Island. It also provides additional revenue to prevent cuts in critical programs. However, the Revenue for Rhode Islanders proposal would set the new bracket at $640,000 (the cutoff for the top one percent) rather than $1 million and generate more revenue. $203 million annually versus $136 million annually is better for Rhode Island.”

Laurie White of The Greater Providence Chamber of Commerce: “Rhode Islanders have to work hard and live within their means – and state government should too. Businesses and working families deserve to live in a state that is affordable, predictable and competitive. Those goals are not in conflict – but they are put at risk when the policy conversation is derailed by a tax gimmick like a so-called ‘millionaire’s tax’ that is once again being floated. Instead of addressing spending growth and improving efficiency, state leaders are once again looking for a get-rich-quick scheme that is going to erode our long-term prosperity. Rhode Island faces a spending challenge, not a revenue shortage. General revenue spending for FY 2026 is projected at $5.81 billion – an 11% rise in just two years – far outpacing inflation. When spending escalates this rapidly, no narrowly targeted tax increase can resolve the issue.”

Georgia Hollister of The Working Families Party: “This is a good start from the governor, but it leaves too much money on the table. The bottom line is this: at the same time we’re facing rising costs and serious funding cuts to the things every Rhode Islander depends on, we’re losing out on hundreds of millions of dollars because we won’t tax the wealthiest people in this state in a way that genuinely reflects their ability to pay. This proposal still leaves nurses and teachers paying more of their income in taxes than the richest 1%. People are tired of leaders who are disconnected from the pressures that working people are facing every day. Rhode Island has a Democratic trifecta, and a set of Working Families legislative champions who are ready and willing to lead this fight. It’s time for a tax system that’s actually fair, guaranteeing that the richest one percent will pay more to fund our public schools, colleges, roads, bridges, and public transit.”

5. STATE OF THE RACE

After a lull in her public campaign, Helena Foulkes stepped up activity this week. She proposed reforming RIDOT through, in part “a complete investigation” of the agency, an audit of existing contracts, and a review of best practices elsewhere. Foulkes also called for a ban on gifts and donations from Rhode Island lobbyists to statewide elected officials, legislators and candidates during the General Assembly session …. House Speaker Joe Shekarchi keeps adding to the $4.1 million already in his campaign account as he ponders a run for governor. Hundreds of people attended his fundraiser on Monday at the Crowne Plaza in Warwick, which brought in $100,000+ …. Those attending the speaker’s event included Gov. McKee, whose own time at the Crowne Plaza is coming up on Jan. 26. During his State of the State, McKee made an aside describing how someone he spoke with was unaware of some of his accomplishments as governor. That elicited this response from WPRO-AM talk show Dan Yorke, a friend of McKee and a regular booster: “If people don’t know what you’re doing, that’s on you.”

6. THE AFTERMATH IN PROVIDENCE

Providence Mayor Brett Smiley was at the center of briefings after two Brown University students were killed and nine other people were injured during a shooting last month. Online criticism flared after a person of interest was initially detained and then released in the 24 hours after the shooting. Asked about that this week on One on One, Smiley said in part, “Everybody wants to see solutions quickly. I think we have a generation of people who are used to watching television shows that go from crime to conviction in one hour and it was clear, I think all of us, and I certainly put myself in this camp – I hoped it was the person, I hoped that it was resolved within 24 hours. It turned out to not be the case. Over the course of the week, it was five days in total – five days and a couple hours, and there were four or five credible tips. One of them turned out to be right. Three or four of them did not. And that’s how these investigations go. And a credit to the folks in law enforcement, the attorney general, the FBI, they were not distracted by the online critics. They were not distracted by the cable news chatter. They kept the blinders on and kept focused on work. I know there was plenty of criticism in the midst of it, but it didn’t deter us from doing the job that needed to be done and ultimately we were able to get to a resolution, um, in about five days.” Smiley expects an independent review of the city’s response to be completed in three to 12 months. He said it will be shared with the community.

7. GENERAL MATTERS

Beyond the race for governor, the campaign to succeed Attorney General Peter Neronha could be one of the year’s most compelling contests. For now, Kim Ahern showed fundraising muscle by announcing a haul of $273,000 – all in direct contributions, according to her campaign – since joining the race. The next quarterly finance reports are not due until Feb. 2. State Rep.

Jason Knight (D-Barrington), who had about $75,000 at the end of Q3 last year, declined to offer an early update on his fundraising. More noteworthy, he said, is that he introduced an anti-ICE resolution in the early going at the General Assembly. Keith Hoffmann had a balance of about $206,000 at the end of Q3. Tom Kane, a spokesman for his campaign, said Hoffmann “will have the resources to win.” Kane said that by the end of 2025, Hoffman raised more than $320,000 and “with a personal investment that largely covered campaign start-up expenses,” ended the year with more than that amount on hand. Rep. Joe Solomon (D-Warwick), parked on about $262,000 at the end of Q3, said he will decide whether to join the race by the end of January.

8. GOP CONTEST

Ken Naylor Jr., head of the Rhode Island Young Republicans, revealed this week he is competing with Allyn Meyers to become the next state GOP Chair. Naylor said he received support and encouragement from RI Senate GOP Leader Jessica de la Cruz (R-North Smithfield), Sen. Gordon Rogers (R-Foster) and RI GOP National Committeewoman Sue Cienki and National Committeeman Thomas Carroll. Via email, Naylor said in part, “If elected chairman, my focus will be straightforward and with goals that are measurable. For starters, the party must operate a year-round field program. This cannot be a focus only a few months before an election; it needs a consistent operation focused on voter contact, volunteer development, voter registration, and accountability. I also believe we need a clear message that resonates with Rhode Islanders. The RIGOP should communicate professionally and consistently, but still give candidates the flexibility to speak to their local districts. This means better coordination, faster response, and making sure our candidates are prepared. Lastly, we must aggressively recruit candidates earlier. It has become common for districts to be left empty or rushed at the last minute. Every winnable seat deserves a serious Republican candidate with real support and resources behind them.”

9. ELECTION YEAR

Two former Smithfield Town Council presidents may go head-to-head in a race for the state House of Representatives later this year. Longtime former councilor Suzy Alba, a Democrat who served two terms as president, tells me she expects to decide in early February whether to run for the seat held by state Rep. Paul Santucci (R-Smithfield). Santucci, who served as council president from 2017 to 2018, won election to the House in 2014 by defeating incumbent Democrat Bernard Hawkins by 677 votes. Santucci is among the 10 Republicans in the Rhode Island House. In Johnston, former Democratic Rep. Edward Cardillo Jr., who didn’t respond to a message, is reportedly eyeing a comeback attempt, against Republican Rep. Richard Fascia.

10. SUBSTANCE ABUSE

Back in 2021, the General Assembly made Rhode Island the first state to approve an overdose prevention center.

Project Weber/Renew said its center has now “supported 731 individuals across over 7,925 visits” since opening in Providence in January 2025. “Every time someone walks through the doors of our overdose prevention center, it is not only an opportunity to keep that person alive, but also a chance to remind them that a full range of services and the support of compassionate peers are here for them, wherever they are in their journey,” Colleen Daley Ndoye, executive director of Project Weber/Renew, said in a news release. “We are incredibly grateful for such a successful year and want to extend our heartfelt thanks to the many people who made this possible, including our partners at the City of Providence and the State of Rhode Island.” Ocean State Media will have more coverage of the Overdose Prevention Center next week.

11. FAREWELL

Is nothing sacred? The Dugout – supposedly named because it was equidistant between Fenway Park and the bygone Braves Field – is going the way of the dinosaur after nearly a century in business, its license transferred to a glitzier part of town. It was an icon of my college years in Boston, located conveniently around the corner from the former St. Mary’s Street office of The Daily Free Press.

12. KICKER

The one-time Bums from Brooklyn who finally claimed the prize at the Big Dance in 1955 have become an unrelenting juggernaut. Break up the Dodgers, stat. Or better yet, can John Henry get an internship with Dodgers ownership so he can learn how it’s done?

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