Tag Archives for House Finance Committee

Senior Agenda Coalition of RI pushes wealth tax to fund programs for older residents

Published in RINewsToday on June 2, 2025

With the recent passage of the House Republican budget—which cuts some programs and services for seniors, veterans, people with disabilities, and families with children—Sulma Arias, Executive Director of Chicago-based People’s Action (PA), is calling on billionaires and large corporations to finally pay their fair share of taxes.

Senator Bernie Sanders has echoed similar sentiments on the national stage, urging lawmakers to ensure that ultra-wealthy individuals and powerful corporations contribute more equitably to the nation’s economic well-being, rather than shifting the burden to everyday Americans by cutting essential services.

In Rhode Island, Democratic lawmakers are advancing legislation this session that would increase taxes on the state’s highest earners to generate vital revenue for public programs and services.

Proposed Legislation Targets Top Earners

HB 5473, introduced on February 12, 2025, by Rep. Karen Alzate (D-Dist. 60, Pawtucket, Central Falls), was referred to the House Finance Committee. The bill proposes a 3% surtax on taxable income above $625,000—on top of the existing 5.99% rate—targeting the top 1% of Rhode Island tax filers. The surtax is projected to raise approximately $190 million annually and would affect about 5,700 of the state’s more than 500,000 filers. If enacted, the tax would apply to income earned in tax years beginning in 2026 and would not be retroactive.

As of the May 6 House Finance Committee hearing, about 140 pieces of written testimony had been submitted on HB 5473. The committee held the bill for further study, with no additional action yet taken. The proposal remains under consideration as part of ongoing budget negotiations.

A companion bill, S. 329, was introduced in the Senate by Sen. Melissa Murray (D-Dist. 24, Woonsocket, North Smithfield) and referred to the Senate Finance Committee. A hearing on the measure was held last Thursday, and the bill was also held for further study.

As the volume of testimony indicates, the battle lines are clearly drawn. Progressive groups and unions support the legislation, while businesses and business organizations, such as the Greater Providence Chamber of Commerce and the Northern Rhode Island Chamber of Commerce, have voiced strong opposition. Governor Dan McKee has not yet taken a public position on the bills.

The Pros and Cons

Supporters argue that with Rhode Island facing a $220 million budget deficit, HB 5473 and S. 329 could raise nearly $190 million annually to fund critical services, including: K-12 and higher education; health care; housing; public transportation; affordable child care; infrastructure, and programs for older adults

They contend that the proposals would bolster the state’s safety net, particularly in light of uncertain federal funding. A more progressive tax structure, they argue, would make the system fairer by reducing the burden on middle- and lower-income residents. Currently, the top 1% of Rhode Island taxpayers control a disproportionate share of the state’s wealth but, when accounting for sales and property taxes, pay a smaller share of their income than lower-income households.

Opponents, however, warn of unintended consequences. They claim the bills would drive wealthy residents and businesses out of the state, eroding the tax base.Supporters dispute this, pointing to IRS and Stanford University studies indicating that wealthy individuals typically relocate for family or climate-related reasons—not for tax considerations. States like California and New Jersey, they note, have implemented similar surtaxes without experiencing significant outmigration.

Morally, proponents argue, those with more resources have a responsibility to help those with less—especially in a post-COVID era when many low-income families continue to struggle.

Yet critics, including the Rhode Island Public Expenditure Council (RIPEC) along with the Greater Providence Chamber of Commerce, Northern Rhode Island Chamber of Commerce and businesses, warn that such a tax could signal to entrepreneurs and investors that Rhode Island is “business unfriendly.” They contend that higher income taxes might discourage business investment and hiring, harming the state’s long-term economic prospects.

Some opponents cite Connecticut’s experience in the early 2010s, when a handful of wealthy taxpayers reportedly relocated after tax hikes, resulting in noticeable revenue loss. Given that a small number of high earners contribute a significant share of state income tax revenue, even limited outmigration could have an outsized fiscal impact, critics argue.

Skeptics also question whether new revenue will be reliably dedicated to education, infrastructure, and social programs. They point out that in the past, even funds placed in restricted accounts were sometimes redirected to fill budget shortfalls.

Aging Programs and Services at a Crossroads

“Rhode Island stands at a crossroads,” warns Carol Anne Costa, Executive Director of the Senior Agenda Coalition of Rhode Island (SACRI). With a projected $220 million deficit and potential federal cuts to programs such as Medicaid, SNAP, and services provided by the Office of Healthy Aging, Costa insists that passing HB 5473 and S. 329 is essential to preserve and expand supports for older adults and people with disabilities.

“Most of our state’s older residents are not wealthy,” Costa notes, citing Census data showing that one in four older households earns less than $25,000 annually, and 45% earn less than $50,000. Only about 8% of older households earn more than $200,000.

In FY 2023, 27,535 Rhode Islanders aged 65 and older were enrolled in Medicaid, which funds the majority of long-term services not covered by Medicare. In addition, 14% of older adults in the state relied on SNAP benefits to help cover food costs.

Costa argues that revenue from the proposed surtax could ensure continued funding for these essential programs and expand the Medicare Savings Program. Such an expansion could save low-income seniors and adults with disabilities up to $185 per month in Medicare Part B premiums—money they need for food, housing, and transportation.

While critics warn of wealthy residents fleeing Rhode Island if taxes increase, Costa cites a comprehensive report by the Economic Progress Institute refuting this claim. “In fact, the data suggests the opposite,” she says. “Higher-income tax filers are moving into Rhode Island more than they are leaving.”

Costa also points to Massachusetts as a real-world example. After voters approved a 4% surtax on income over $1 million in 2022, the number of Massachusetts residents with a net worth over $1 million increased from 441,610 to 612,109 by 2024, according to an April report from the Institute for Policy Studies and the State Revenue Alliance.

Business Community Pushes Back

At the House Finance Committee hearing, Laurie White, President of the Greater Providence Chamber of Commerce, voiced strong opposition to the proposed tax.

“Our views reflect those of thousands of local businesses statewide,” she said. “Rhode Island is already in fierce competition with neighboring states to attract and retain businesses, residents, and talent.”

White warned that the surtax would send the wrong message, particularly as Rhode Island invests in high-wage sectors like life sciences and technology. “Tax burden is a key factor in business decisions, and an increase in personal income tax would significantly reduce Rhode Island’s appeal,” she stated.

House GOP Minority Leader Michael W. Chippendale (R-Dist. 40, Coventry, Foster, Gloucester) echoed White’s sentiments: “Taxing people who have worked hard and become prosperous is an insult to the American dream. We shouldn’t be punishing success—we should be creating an economic environment where everyone can thrive. Driving away high-income residents with more taxes is backward thinking.”

Chief of Staff Sue Stenhouse confirmed that the entire 10-member House Republican caucus stands united in opposition to the surtax.

The Washington, DC-based Tax Foundation also weighed in. In written testimony on S. 329, Senior Policy & Research Manager Katherine Loughead stated that if the surtax were enacted, Rhode Island would move from having the 14th-highest to the 8th-highest top marginal state income tax rate in the nation—excluding the District of Columbia. She warned that this could make Rhode Island less attractive to high-income earners than even Massachusetts.

So What’s Next?

Costa maintains that taxing the wealthiest residents may be both a necessary and viable solution to protect the state’s safety net amid budget shortfalls and looming federal cuts.

However, with HB 5473 and S. 329 still being held for further study, it remains unclear whether they will be included in the final state budget.

“As we approach the final weeks of the session, there is no shortage of meritorious proposals that affect state resources,” said House Speaker Joseph Shekarchi (D-Dist. 23, Warwick). “The uncertainty of the federal funding picture and the numerous holes in the Governor’s proposed budget complicate both balancing this year’s budget and planning for the unknown. I continue to keep many options on the table for this challenging task.”

Stay tuned—SACRI and other aging advocacy groups are watching closely to see what options will be considered by the House Speaker when he releases FY 2026 state budget to address funding for programs and services that support Rhode Island’s growing older population in this difficult fiscal year.

To read submitted emails and testimony on S. 329, go to https://www.rilegislature.gov/senators/SenateComDocs/Pages/Finance%202025.aspx.

To read written testimony submitted on HB 5473, go to https://www.rilegislature.gov/Special/comdoc/Pages/House%20Finance%202025.aspx.

AARP Rhode Island pushes its 2024 legislative agenda

Published in RINewsToday on February 12, 2024

Standing in front of an AARP backdrop in the Rhode Island State Room at the State House, last week AARP Rhode Island hosted a 34 plus minute press conference plugging the “aging” group’s 2024 legislative agenda. The nonprofit organization, representing 125,000 members, unveiled its four priority issues: to increase temporary care giver insurance to caregivers, to boost the availability of Accessory Dwelling Units (ADUs); to create a program to allow employees to save for retirement; and to eliminate the state’s income tax on Social Security. 

Gov. Dan McKee, House Speaker K. Joseph Shekarchi (D-Dist. 13, Warwick), Senate Majority Leader Ryan W. Pearson (D-Dist. 19, Cumberland, Lincoln), State Treasurer James Diossa, came to support AARPs efforts advocacy efforts, backing its four priority legislative issues. 

“AARP’s mission is to empower people to choose how they live as they age,” said State Director Catherine Taylor, in her opening remarks.  At the event, she called on lawmakers to pass AARP Rhode Island’s legislative agenda. 

Taylor took this opportunity to share the results of the 2023 AARP Rhode Island Vital Voices survey that reveals that Rhode Island residents age 45+ overwhelmingly would choose to remain in their own communities and own homes as they grow older. “In order for this to be a reality, Rhode Islanders must have financial security in retirement, affordable and accessible housing options, and access to resources that enable them to take care of those they love,” she said. 

Let us take a look at AARP Rhode Island’s legislative priorities for this year.

Boosting the State’s Housing Production 

With the strong support of House Speaker K. Joseph Shekarchi (D-Dist. 13, Warwick), one of nine Democratic cosponsors of H. 7062, it is expected that House leadership will send the approved committee bill to the floor this week for a vote. The legislative proposal would boost the state’s housing production by allowing a homeowner to develop Accessory Dwelling Units (ADUs) on their property.

ADUs, sometimes referred to as in-law apartments or granny flats, backyard cottages, or secondary units, allow seniors to downsize enabling them to live independently and age in place in their communities. The bill was written in collaboration with AARP Rhode Island, and is one of the aging group’s primary legislative policy goals. 

H. 7062, introduced by Rep. June S. Speakman (D -Dist. 68, Bristol/Warren), chairwoman of the House Commission on Housing Affordability, would boost the state’s housing production by making it easier for homeowners to develop ADUs on their property. It would give the property owner the right to develop an ADU within the existing footprint of their structures or on any lot larger than 20,000 square feet, provided that the design complies with local building code, size limits and infrastructure requirements. 

Sen. Victoria Gu (D-District 38, Westerly, Charlestown, South Kingstown) will shortly submit a Senate ADU companion proposal but has yet to drop it into the legislative hopper. One Senator noted that there will be technical differences between the House and Senate ADU proposals which will have to be ironed out. 

Assisting employees to save for retirement – Secure Choice

Rep. Evan P. Shanley (D-Dist. 24, Warwick, East Greenwich), throws H 7121, The Rhode Island Secure Choice Retirement Savings Program, into the legislative hopper. The bill would establish a convenient, low-cost voluntary retirement savings plan for working Rhode Islanders.

According to AARP Rhode Island, about 40 percent of Rhode Island private sector workers, about 172,000, ages 18 to 64 in 2020 were employed by businesses that do not offer any type of retirement plan.

The retirement savings program, administered by the office of the General Treasurer, would see retirement savings accumulated in individual accounts for the exclusive benefit of the participants or their beneficiaries. The bill would see no fiscal impact on the state’s budget.

H 7121 has been referred to the House Finance Committee for consideration. A companion measure (S 2045) has been introduced in the Senate by Sen. Meghan E. Kallman (D-Dist. 15, Pawtucket, Providence).

Under Shanley’s legislative proposal, the General Treasurer, who serves as the custodian of state funds for the Rhode Island government, would be charged with collecting contributions through payroll deductions and investing these funds in accordance with accounting best practices for retirement saving vehicles. The elected official would also be responsible for setting minimum and maximum contribution levels in accordance with contribution limits set for IRAs by the Internal Revenue Code. The law would become effective for ALL eligible employers within 3 months of the opening of the program enrollment following a phased implementation period. 

Caring for Caregivers

Senate Majority Whip Valarie Lawson (D-Dist. 14, East Providence) and Rep. Joshua J. Giraldo (D-Dist. 56, Central Falls) have introduced identical bills in their chambers that would expand Rhode Island’s Temporary Caregiver Insurance (TCI) program from six weeks to 12. It also increases weekly dependent’s allowances from $10 to $ 20 or 7% increase of benefit rate whichever is greater. That would bring the Ocean State in line with other states and allow new parents more time for parental leave and caregivers more time to care for a critically ill family member.

S 2121 and its House companion measure, H 7171, would also expand the definition of critically ill family to include grandchildren, siblings and “care  recipients,” defined as individuals for whom the employee is a primary caregiver.

According to AARP Rhode Island, the state’s unpaid family caregiver labor force totals 121,000, providing 113 million care hours per year.

The United States is one of only six countries in the world, and the only wealthy country, without guaranteed parental leave, according to the Bipartisan Policy Center. In recent years some states, like Rhode Island, have stepped up to offer their own programs.

According to a statement released announcing the introduction of S 2121, Rhode Island became the third state in the nation to offer paid parental leave in 2013 when legislators created the TCI program. TCI, which is paid for through payroll deductions, allows new parents to take six weeks of paid leave to bond with and care for their child. It also allows individuals to take this time to care for a seriously family member. That can prove vital for a working adult who needs to care for their spouse after a surgery or a terminally ill parent.

Since 2013, however, many other states have surpassed Rhode Island’s leave offerings. Currently, 11 states and the District of Columbia offer paid parental leave, with two additional states set to offer it beginning in 2026. Most offer 12 weeks, while Rhode Island offers the least amount of time at just six weeks, says the statement.

Finally, it was noted that individuals on TCI in Rhode Island receive 60% of their normal salary. Of the ten states that offer similar programs, most workers receive at least 80%. In Massachusetts, workers receive 80% of their salary for 12 weeks. Workers in nearby Connecticut receive 95% of their salary for 12 weeks.

Cutting Taxes 

According to AARP Rhode Island, more than one in five Rhode Island residents, that’s 230,018, receive Social Security benefits.  These payments inject more than $ 4 billion into the state’s economy every year.

But Rhode Island is one of 9 states that tax Social Security beneficiaries, says AARP Rhode Island. The state tax on Social Security undermines the purpose of the retirement program, charges the state’s largest aging group, estimating that this program has lifted 50,000 Rhode Islanders 65 or older out of poverty from 2018 through 2020.

Three Senate bills and one House bill have been introduced so far.   

S 2061, introduced by Deputy Minority Whip Sen. Elaine J. Morgan (R-Dist. 34, Charlestown, Exeter, Hopkinton, Richmond, West Greenwich), identical to a bill introduced last year, aside from the effective date would allow a modification to federal adjusted gross income for all Social Security income for tax years beginning on or after January 1, 2025.

Sen. Mark P. McKenney (D-Dist. 30, Warwick) has introduced S 2158 and House Deputy Majority Whip Mia A. Ackerman (D-Dist. 45, Cumberland, Lincoln) just submitted H 7588. These identical bills would gradually phase in modifications to the federal adjusted gross income over a four-year period for Social Security income, from 25% up to 100%, beginning on or after January 1, 2025.

And, Sen. Walter S. Felag, Jr. (D-Dist. 30, Bristol Tiverton Warren) legislation, S 2058, would increase the federal adjusted gross income threshold for modification for taxable social security income. This act would also amend references to the federal adjusted gross income as it pertains to modification of taxable retirement income from certain pension plans or annuities.

To watch AARP RI’s legislation reception, held Feb. 8, 2024l, go to https://capitoltvri.cablecast.tv/show/214?site=1.

For obtain the results of the 2023 AARP Rhode Island Vital Voices survey, go to:

https://www.aarp.org/research/topics/life/info-2022/aarp-vital-voices-surveys-older-adults-2022-2024.html – and scroll down to “Rhode Island”

Senior Agenda Coalition of RI zeros in on key aging legislation 

Published in RINewsToday on May 30, 2022

As the General Assembly winds down, the Senior Agenda Coalition of Rhode Island (SACRI) is tracking 16 House and Senate Bills along with FY 24 Budget Articles that have an impact on the state’s senior population. In a legislative alert, SACRI details a listing of 16 House and Senate bills and FY23 Budget Articles relating to care givers, mobile dental services, supplemental nutrition, housing, tax relief and home care worker wages. 

The state’s largest organization of aging groups is focusing and pushing for passage of the following four bills during the upcoming weeks.

SCARI puts on its radar screen S-2200/H-7489 to push for passage. The legislation (prime sponsors Senator Louis DiPalma (D-District 12) and Representative Julie Casimiro (D-District 31), establishes a process which would require Executive Office of Health and Human Services (EOHHS), assisted by a 24-member advisory committee, to provide review and recommendations for rate setting, and ongoing review of medical and clinical service programs licensed by state departments, agencies and Medicaid.  

Meanwhile, DiPalma and Casimiro have also introduced S-2311/H-7180 to require a 24-member advisory committee to provide review/recommendations for rate setting/ongoing review of social service programs licensed by state departments/agencies and Medicaid. The House and Senate Finance Committees have recommended these measures be held for further study.

Ratcheting Up the Pay for Rhode Island’s Home Care Workers

In testimony on April 28th, SACRI’s Executive Director Bernard J. Beaudreau says, “Because payment levels for services have not been updated in years, especially in our current inflation ,levels, the low-pay level of direct care workers has created workforce shortages, impoverished workers and has put at risk our ability to provide proper care for our aging elder population.”

“Shamefully, an estimated 1 in 5 Rhode Island home care workers live in poverty and most have insufficient incomes to meet their basic needs,” says Beaudreau, calling for enactment of this bill to raise the wages of the lowest paid care workers as a top priority. 

S-2200 was referred to the Senate Finance Committee and companion measure, H 7489, was referred to the House Finance committees for review.  After hearings in their respective chambers, both bills are being held for further study. 

At press time, the Rhode Island General Assembly is hammering out its state budget for Fiscal Year 2023, taking effect July 1, 2022, to June 30, 2023.  SACARI calls on the state to make it a budgetary priority to address Rhode Island’s home care crisis.

According to Maureen Maigret, Chair of the Aging in Community Subcommittee of the Long-Term Care Coordinating Council, who also serves SACRI as a volunteer policy adviser and Board Member, says that the Governor’s budget calls for suspending use of an estimated $38.6 million in state funds which, by law, should be used to enhance home and community-based services. This law, says Maigret, is referred to as the “Perry-Sullivan” law after its sponsors.

Maigret calls for these funds to be used to increase home care provider rates so they may be fair and competitive to home care workers and increase rates for independent providers.  Many of these workers are low-income, women, and women of color, she says.

Lowering the property taxes for Rhode Island’s low-income seniors

SACRI also calls for the Rhode Island General Assembly to provide property tax relief for low-income seniors and Social Security Disability Income (SSDI) recipients. As housing costs rise and property taxes increase, more older Rhode Islanders with limited or fixed incomes and those on SSDI are becoming housing tax burdened, says the Providence-based the aging advocacy coalition. 

In SACRI’s legislative alert, Maigret calls for the passage of H-7127 and S-2192, with primary sponsors Representative Deborah Ruggiero (D-District 74) and Senator Cynthia Armour Coyne (D-32), charging that Rhode Island’s property tax relief law needs urgent updating.

Rhode Island’s Property Tax Review Law, sometimes referred to as the Circuit Breaker Law, needs serious updating. Initially the law was enacted to help provide property tax relief for persons aged 65 and over and to those on SSDI, says Maigret.  It is currently available to those with incomes up to $30,000 (set in 1999) and provides a credit or refund up to $415 against a person’s state taxes owed.  Both homeowners and renters are eligible to a apply. 

H-7127 and S-2192 would make hundreds of older Rhode Islanders eligible to participate by increasing the income cap from $30,000 to $ 50,000. Maigret notes that if these bills pass, a person with household incomes of $35,000 who is not eligible now could be eligible to get a refund of up to $850 next year. “These changes would provide direct relief against high property taxes and make Rhode Island more in line with our neighboring states of Connecticut and Massachusetts,” she says.

Finally, Executive Director Beaudreau testified on May 17th before the House Finance Committee, calling for the passage of H-7616, Reinstating the Department of Healthy Aging. “The time is long overdue for the state to re-invest in serving the needs of aging population,” he says, noting that “the state’s total population of 65 years and older has grown by 20% from 152,283 in 2010 to 182,486 today.”

Beaudreau testified that the “data clearly indicates that Rhode Island should be increasing plans, resources and services to meet the need of the state’s aging population, not cutting back.” The state’s budget has not kept up with the growth needed in the Office of Healthy Aging, charged with overseeing the state’s programs and services for older Rhode Islanders. “Additional funding is needed for increasing the Department’s staffing capacity and increasing financial support of Senior Centers serving thousands of older Rhode Islanders every say,” he adds.

But do not forget oral health of seniors, says SACRI.  According to the aging coalition, the importance of accessing quality oral health care in nursing homes is key to a nursing facility resident’s health, well-being and quality of life. Poor oral health care results in a higher incidence of, pneumonia cardiovascular disease diabetes, bone loss and cancer; all situations increasing the frequency of accessing medical care resulting in higher costs. 

Improving oral health care to Rhode Island’s seniors and special populations

SACRI calls for the passage of S-2588 and H-7756, bills that would provide for reimbursement for patient site encounter mobility dentistry visits to be increased to $180 per visit. The state’s reimbursement for mobile dentistry site visits began in 2008, only in nursing homes, but failed to provide funding for dental care in other settings. 

These bills would also expand the availability of this service to additional community-based group homes, assisted living facilities, adult day health and intellectual and developmental disability day programs. Passage of these bills will increase access to special populations who have difficulty in accessing basic dental services.

S-2588, referred to the Senate Finance Committee, was held for further study.  The House companion measure is scheduled to be heard on May 28th at a House Finance Committee hearing. 

Reimbursement for this service has not increased since it was initially funded over 14 years ago and does not cover the cost of delivering this critical service, says SACRI.

SACRI says “Make your voice heard!  Call House Speaker Joseph Shekarchi (401 222-2466) and Senate President Dominick J. Ruggerio (401 222-6555) and your legislative delegation to urge supporting SACRI’s priority legislation. 

To see a listing of SACRI’s 2022 Priority Legislation, go to https://img1.wsimg.com/blobby/go/049a7960-1c2a-4880-afdd-8d1e0e283acc/downloads/SACRI%20Bill%20Tracker%202022.pdf?ver=1653052514912.

For more details about SACRI, go to https://senioragendari.org/