Dueling Social Security Proposals Heard by Senate Finance Committee

Published in RINewsToday on March 6, 2023

Almost eight years ago, Rhode Island lawmakers reduced the tax burden on older Rhode Islanders by tweaking the state’s tax on Social Security in the fiscal year 2016 budget. The exemption to Social Security taxation as it currently stands in statute was put in place in 2015, as part of the FY 2016 budget.

According to Greg Pare, Rhode Island’s Senate Director of Communications, the Assembly expanded a budget proposal by then Governor Gina Raimondo to make Social Security benefits exempt from state taxes for many. “The original proposal would have made them exempt for single filers with federal adjusted gross incomes of up to $50,000 and joint filers up to $60,000,” noted Pare, but lawmakers raised the limit to $80,000 for single and $100,000 for joint filers.

During this current legislative session – 2023 – there are two legislative proposals that, if passed, would decrease the state taxes on Social Security income for up to 175,840 retirees.

Helping Social Security retirees

During the current legislative session, Senator Elaine Morgan (R-Dist. 34, Charleston, Exeter, Hopkinton, Richmond, West Greenwich) introduced SB 84 to completely eliminate the state tax on Social Security income in Rhode Island. The bipartisan legislative proposal specifies for tax years beginning on or after January 1, 2024, an individual may subtract from federal adjusted gross income all Social Security income.

Morgan’s SB 84 has attracted the support of GOP Senate colleagues, along with Democratic Senators on the other side of the aisle.  The senior-friendly, bipartisan legislative proposal sponsors are: Sens. Anthony Phillip Deluca (R-Dist. 29, Warwick), Minority Leader Jessica de la Cruz (R-Dist. 23, Burrillville, Glocester, North Smithfield), Gordon Rogers (R-Dist. 21, Coventry, Foster, Scituate, West Greenwich), Thomas Paolino (R-Dist. 17, Lincoln, North Providence, North Smithfield), Leonidas P. Raptakis (D-Dist. 33, Coventry, West Greenwich), John Burke (D-Dist. 9, West Warwick), Mark  McKenny (D-Dist. 30, Warwick), Frank  Lombardi (D-Dist. 26, Cranston) and Frank Ciccone, III (D- Dist. 7, Providence, Johnston).

“Eliminating state income tax on Social Security benefits will be akin to giving Rhode Island retirees a raise. We must make Rhode Island a better place for retirees and not taxing Social Security income is a large step in that direction. It will help stem the flow of retirees leaving Rhode Island and taking their spending power with them.” says Morgan who made an argument in support of the legislation at the Senate Finance Committee last week, when it was scheduled for consideration, and held for further study.  A fiscal note has been requested, but has not been released.

Time to give older Rhode Islanders tax relief

“Eliminating the tax on Social Security benefits at the state level for seniors who have worked for decades, paying taxes on their hard-earned income, and contributing to Social Security with post-tax dollars, would boost the retirement income for much of Rhode Island’s vulnerable elderly population,” reasoned Morgan. “Social Security is part of the social safety net. It was never meant to fill state coffers; it was meant to carry people throughout their retirement years. It’s time to give our growing older population some tax relief by eliminating the income threshold, beginning with the 2024 tax year,” she said, noting that her legislation will help ensure that even more middle-class retirees and their families can keep more of their hard-earned benefits.

Sen. Walter Felag’s (D-Dist. 10, Bristol, Tiverton, Warren) legislative proposal, SB 246, cosponsored by Sens. Lou DiPalma (D-Dist. 12,  Little Compton, Middletown, Newport, Tiverton), Frank Lombardi (D-Dist. 26, Cranston), V. Susan Sosnowski, (D-Dist. 37, South Kingston) and Frank Ciccone, III (D-Dist. 7, Providence, Johnston), was also heard at the Senate Finance Committee, along with Morgan’s Social Security legislation.  This legislative proposal would not eliminate the state’s Social Security tax but increase income thresholds to $110,000 for single, and $140,000 for joint, filers. Like Morgan’s legislative proposal, the Committee recommended that Felag’s measure be held for further study. No fiscal note has been released yet on this legislative proposal.

With the cost of goods and necessary services increasing, Felag says that it was  crucial to help Social Security beneficiaries by throwing SB 248 into the legislative hopper. “By raising the tax exemption level, we can lessen the financial stress that many retirees on Social Security feel on a daily basis, keeping more of their hard-earned money in their pockets and bank accounts,” he says.

Sen. DiPalma, who serves as Chairman of the Senate Finance Committee, reported that a couple of proposals have been submitted and heard in the Senate Finance Committee.  “Both sponsors and witnesses made the case for why we need to continue to assist our seniors, especially during these inflationary and soon to be “slow-cessionary” periods. These proposals must and will be evaluated in the context of the overall budgetary review process, which is currently ongoing,” he says.

When asked if she ever considered becoming a cosponsor of Felag’s legislative proposal, Minority Leader Jessica de la Cruz stated, “I would have loved to, but I was unaware of his bill.”

“It’s not too late to bring Democratic and Republican Senators together to hammer out a compromise legislative proposal,” says de la Cruz, noting she will be discussing this possibility with Senate President Dominick Ruggerio (D-Dist.4, North Providence, Providence). 

Although I do not see eye to eye with my Democratic colleagues 100% of the time, we find common ground on many other issues,” says de la Cruz. ” I believe there would be bipartisan support for crafting a compromise piece of legislation if it ensured tax relief to retirees on Social Security.

Calls for passage of Social Security proposals

AARP State Director Catherine Taylor, representing over 128,000 members in Rhode Island, called for passage of SB 84 and SB 246. “They would protect the Social Security benefits of older Rhode Islanders,” helping them keep the benefits they have earned over a lifetime of hard work,” she said.

“Assuring that our members are financially secure in retirement is a key component of our advocacy,” stated Taylor, noting that Rhode Island is one of only 11 states that still tax hard-earned Social Security benefits. “State taxes on Social Security benefits in Rhode Island undermines the purpose of Social Security, which was designed to lift seniors out of poverty- not to fund state government,” she says.

“Now, when so many Americans are struggling to afford health care and other basic needs, the promise of Social Security is even more important,” adds Taylor.  

“Whether it is raising the income threshold under existing law, or a complete exemption of Social Security benefits from taxation, like 30 other states around the country, AARP supports all efforts to keep hard-earned money in the pockets of older Rhode Islanders,” Taylor told Senate Finance Committee members.

A Call to Action

According to the Healthy Aging 2020 report, Rhode Island’s older population is growing dramatically. Today, more than 240,000 Rhode Island residents are age 60 or older -  that’s 23% of the population. By 2040 that figure is expected to rise to almost 265,000.  In addition, the state has one of the highest proportions of adults aged 85 and older, of any state in the nation, ranking first in New England.

With the expected graying of the Ocean State’s population, now is the time for Rhode Island lawmakers to reduce the financial stress of Rhode Islanders who struggle to pay their bills and want to remain independent at home in the community.   

Although both Social Security legislative proposals have been held for further study, don’t get concerned, says Pare, the Senate’s Communication Director. “It is common to hold bills for further study on a first hearing, and that is almost always the case for bills with a fiscal impact, which would have to be incorporated into the budget bill when it is considered later in the legislative session,” he says. 

“There is an obvious bi-partisan appetite to provide tax relief to our growing aging population who have been greatly impacted during this pandemic. This is a significant opportunity for Senate Finance Chair Lou DiPalma to craft a compromise bill that will advance Rhode Island as an “age-friendly” state, says  Vincent Marzullo, who served 31 years as a career federal civil rights & social justice administrator at the National Service Agency.  Now is the time for both sides of the aisle to come together for a needed public action,” he says.

For details about 9 States With No State Income Tax, go to https://www.aarp.org/money/taxes/info-2020/states-without-an-income-tax.html

For details about 4 States That May Cut Taxes on Social Security Income, go to https://www.aarp.org/retirement/social-security/info-2023/cut-taxes-social-security-benefits.html

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AARP Rhode Island Shows RI Facilities Remain Hotbed for COVID-19

Published in RINewsToday on February 14, 2021

As the Rhode Island Health Department (RIDOH) announces that cases of COVID-19 are declining and is loosening up restrictions on the reopening of bars and our social gatherings, AARP Rhode Island warns that the state’s nursing homes remain a hotbed for COVID-19 infections, and the “death rate remains disturbing.”  Rhode Island’s largest aging advocacy group calls on the General Assembly to take action this session to enact legislation to protect facility staff and residents. 

Since the beginning of the pandemic, more than 162,000 residents and staff in nursing homes and other long-term care facilities have died nationwide, and nearly 1.3 million people are known to have been infected with coronavirus in these facilities. Rhode Island has recorded 1,430 deaths in skilled nursing facilities, nursing homes, assisted living facilities and other eldercare facilities.
On Feb. 11, AARP Rhode Island released its Nursing Home COVID-19 Dashboard, the data revealing that the COVID-19 pandemic crisis in these facilities still continues despite incremental improvements in all four dashboard categories.

The dashboard analyzes federally reported data in four-week periods going back to June 1, 2020. Using this data, the AARP Public Policy Institute, in collaboration with the Scripps Gerontology Center at Miami University in Ohio, created the dashboard to provide snapshots of the virus’ infiltration into nursing homes and impact on nursing home residents and staff, with the goal of identifying specific areas of concern at the national and state levels in a timely manner.

Taking a Snapshot 

According to the data (Dec. 21 to Jan. 17) from AARP Rhode Island’s latest Nursing Home COVID-19 Dashboard, the rate of new coronavirus cases per 100 residents declined from 15.7 to 10.6 among residents and from 12.5 to 10.6 among staff. While cases are lower than in the previous time period, resident cases remain the second highest in New England in AARP’s dashboard analysis, with nearly four times the cases in Rhode Island nursing homes reported in October and November.

Meanwhile, the latest dashboard data indicated that resident death rates dropped from 2.60 to 1.82 for every 100 people living in a nursing home and that nursing home staff cases dropped from 12.5 per 100 workers to 10.6.The dashboard also reveals that PPE shortages dropped sharply. Shortages of personal protective equipment (PPE) have declined from 20.3 percent of nursing homes without a one-week supply to 4.3 percent — the lowest number since the first dashboard report in June, 2020. Staff shortages were relatively steady, dropping from 41.9 percent of facilities reporting shortages to 40 percent.

AARP Rhode Island calls on Governor Gina Raimondo and Lt. Governor Dan McKee to protect nursing home residents and staff from COVID-19. “We are approaching the one-year anniversary of the first known coronavirus cases in nursing homes, yet they remain appallingly high, said AARP Rhode Island State Director Kathleen Connell in a statement announcing the release of the latest dash data said, “The devastation this pandemic has brought to nursing home residents and their families has exposed fundamental reforms that must be made in nursing homes and to the long-term care system. We cannot lower our guard, she says.

AARP Rhode Island’s COVID-19 Legislative Agenda

The Rhode Island nursing home industry has struggled with quality care and infection control for years. Connell called for Rhode Island lawmakers to act immediately, focusing this year on: 

1.   Enacting or making permanent the components of AARP’s five-point plan:·         

— Prioritizing regular and ongoing testing and adequate personal protective equipment (PPE) for residents and staff—as well as for inspectors and any visitors.·  

—  Improving transparency focused on daily, public reporting of cases and deaths in facilities; communication with families about discharges and transfers; and accountability for state and federal funding that goes to facilities.·         

— Ensuring access to in-person visitation following federal and state guidelines for safety, and require continued access to virtual visitation for all residents.·        

—  Ensuring quality care for residents through adequate staffing, oversight, and access to in-person formal advocates, called long-term care Ombudsmen.

2.      Reject immunity and hold long-term care facilities accountable when they fail to provide adequate care to residents.

3.      Establishing minimum nursing staffing standards.

4.      Ensuring that increases in facility’s reimbursement rates are spent on staff pay and to improve protections for residents.

5.      Ensuring progress is made so that in-person visitation can safely occur and facilitating virtual visitation.

“Additionally, our leaders must reject policies that take away the rights of residents to hold nursing homes accountable when they fail to provide adequate care, Connell added. “Now is not the time to let nursing homes off the hook for abuse, neglect, and even death.”  AARP Rhode Island wrote a letter to Gov. Raimondo, urging her to withdraw her nursing home immunity Executive Order.  At press time, there has been no reply.

As the first year of the COVID-19 pandemic approaches, RIDOH notes that 64 percent of all deaths have women and men in Rhode Island’s nursing homes and assisted living facilities. In the past 13 days, 116 new cases in these facilities have been diagnosed – with 41 new deaths. At weekly updates from Dr. Nicole Alexander-Scott, it used to be that the death statistics were broken down by age, noting how many were lost “in their 60s, in their 70s”, etc. but notably this no longer is reason for pause and expression on condolence.

Unless Rhode Island lawmakers act quickly, older Rhode Islanders in these facilities will continue to be at a very high-risk of catching COVID-19 and the fatality death rate will remain disproportionately high for seniors. As residents receive their vaccine shots, first and second, we in turn hope that the refusal rate of staff to the vaccination is going down.

It’s time to act. 

The full Nursing Home COVID-19 Dashboard is available at  www.aarp.org/nursinghomedashboard.  

For more information on how COVID is impacting nursing homes and AARP’s advocacy on this issue, visit www.aarp.org/nursinghomes.

AARP: Vaccinate seniors now!Leaders respond. Add YOUR voice.

Published in RINewsToday.com on January 25, 2021

The debate heats up as to how Rhode Island should distribute its limited stock of COVID-19 vaccine. Days ago, AARP Rhode Island urged state officials and lawmakers to put seniors on the top of the list to protect their lives. Older Rhode Islanders should be a priority in getting vaccinated, says the state’s largest nonprofit. 

AARP Rhode Island, generally speaking, reserves sending public letters to public officials for the most critical of issues. Because of the pandemic, a critical issue, AARP is reaching out to its 132,000 Ocean State members and the public at large to demand immediate change.

“The message AARP wants sent to the Governor and State Leaders reads, in part, “Rhode Islanders 50 and older account for 98% of the state’s more than 2,000 COVID deaths. Yet only a quarter of vaccinations to date have been administered to older Rhode Islanders. You must revise the plan to vaccinate the most vulnerable among us. I am therefore calling on you to revise the state vaccination plan immediately to prioritize vaccinating our 50 and older population. There is no time to waste,” said AARP Rhode Island State Director Kathleen Connell.

A Call to Revising the State’s Vaccination Distribution Plan

Connell added, “Now that the state has responded to AARP Rhode Island’s call to make the state’s COVID vaccination plan and its execution more transparent, I am alarmed and dismayed to find data only now available reveals that just 25% of vaccinations to date have been administered to Rhode Islanders age 60 and older.”

“The current disparity — which flies in the face of federal health recommendations and causes great concern for many older Rhode Islanders and their families — is inexplicable, life threatening and unacceptable,” says Connell. 

AARP Rhode Island’s work is part of a nationwide effort, says Connell. “AARP is advocating hard to ensure every older American who wants to get the vaccine can get it,” said AARP Executive Vice President and Chief Advocacy & Engagement Officer Nancy A. LeaMond.

“It’s also vital that distribution plans for authorized vaccines are smoothly implemented,” LeaMond added. “There’s no time to waste: it’s time for full-scale mobilization, and any delays or early bottlenecks in distribution systems need to be addressed urgently. AARP remains committed to protecting the health and well-being of our nearly 38 million members and all Americans as we work together to defeat this virus,” she said.

Rhode Island leaders respond to AARP’s call

Speaker of the House of Representatives Shekarchi:

“We all want the most at-risk people, including our seniors, to have access to the vaccine absolutely as soon as possible. My father is 94, and it will be a tremendous relief to me and my family when he is protected,” said House Speaker Joseph Shekarchi (D-Dist. 23 Warwick). “President Biden’s timeline includes prioritizing access to the vaccine for those 65 and older, and it’s important that we comply with it,” he says.  

“I understand we need greater supply. Our House COVID-19 Vaccine Task Force will vigilantly monitor the distribution to ensure our state is doing everything we can to get the vaccine to those most at risk, particularly those 65 and older, as soon as possible, in cooperation with the federal government,” adds Shekarchi.

Dr. Chan, RI Dept. of Health:

In a Jan. 22 email vaccine update, Dr. Phillip A. Chan, MD, MS, the Rhode Island Department of Health’s (RIDOH) Consultant Medical Director, reported that 66,070 doses of vaccine had been administered in Rhode Island (52,925 first doses, and 13,145 second doses). “We are working hard to distribute vaccine, but supply remains very limited. Right now, we’re receiving enough first doses each week for about 1.5 percent of our population. While other states are in the same position, Rhode Island ranks among the top states nationally in terms of the rate of second doses administered,” he said.

As to the vaccination distribution timetable, Chan noted that nursing home residents and staff began to get vaccinated in December. “This week, we started to vaccinate in assisted living facilities and other congregate living settings.  By middle of February, we expect the vaccine will be available for adults 75 and older,” he says. 

According to Chan, there are 187,000 Rhode Islanders age 65 or older. “Since we are only getting 14,000 first doses of vaccine a week, we are taking a stepwise approach to this group as well,” he noted in RIDOH’s vaccine update.  “Please note that there is no action older adults need to take at this time to get a vaccine. When we are ready to start vaccinating this population, we will communicate with the public, healthcare providers, and community organizations to provide instructions.”

Incoming Governor, Lt. Gov. McKee:

Meeting outside Lt. Gov. Dan McKee’s Cumberland home, WPRI reporters, Eli Sherman and Brittany Schaefer, got insight into McKee’s thoughts about the state’s COVID-19 vaccine rollout strategy and issues surrounding this distribution. They report the details in a Jan. 23 WPRI blog article, “McKee: Teachers should get vaccine before others in Rhode Island.” McKee will move into the governor’s seat once Gov. Gina Raimondo is confirmed as U.S. Commerce Secretary.  

Here are some points from McKee’s interview in the Sherman and Schaefer’s blog article: 

“We need to really move up on the list teachers and the support staff in schools,” McKee said. “We’re not going to open the economy until we do that, and teachers are not going to feel comfortable by and large until we get them vaccinated.” (Teachers are not in the Rhode Island Department of Health’s phase one vaccination rollout)

“Prioritizing educators would inevitably delay vaccinations for all non-educators, and McKee did not name any other group Saturday that he thought should be prioritized. When asked specifically about adults 65 years and older, McKee said he expected they would also be prioritized, but underscored the state is only receiving a limited amount of supply of the vaccine from the federal government,” says the WPRI blog.

President Joe Biden encourages states to make it a priority to vaccinate people age 65 and over, along with grocery store workers and teachers. No specifics have been released yet by his administration. 

“I think it’s a supply issue, but that age group is a priority,” McKee said. “We’re going to follow the lead of the Biden administration”.  

Stay tuned as the debate continues on how Rhode Island should disseminate its limited COVID-19 stockpile – and what it can move to when the flow of vaccine becomes more generous.

Give Governor Gina Raimondo your thoughts as to AARP Rhode Island’s call for vaccinating people age 50 and over “immediately”.  Here’s the governor’s contact details:  Governor Gina Raimondo, 82 Smith Street, Providence, RI 02903; email: governor@governor.ri.gov; phone: (401) 222-8096.