Gov. McKee’s Proposed FY 27 Rhode Island Budget: What’s in It for Seniors

Published in RINewsToday on February 2, 2026

Gov. Dan McKee outlined key elements of his proposed $14.8 billion FY 2027 budget during his State of the State Address on Jan. 13, 2026. Two days later, his full budget, proposing a 3.6% increase over the previous fiscal year, was officially released via press release.

The budget centers on an “Affordability for All” agenda and a $600 million bond package, covering the fiscal period starting July 1, 2026. Key proposals include a new income tax tier for earnings over $1 million, a permanent child tax credit, a phased elimination of the state tax on Social Security benefits, repeal of a gas tax increase, and continued investments in projects that support jobs and economic growth.

The proposal also aims to shield vulnerable Rhode Islanders from potential federal cuts, including the elimination of Affordable Care Act subsidies, changes in Medicaid eligibility rules, reductions in federal support for hospitals treating uninsured patients, and modifications to SNAP regulations.

“My commitments to Rhode Islanders are clear: putting more money back in families’ pockets, protecting the most vulnerable from President Trump’s safety net cuts, and keeping Rhode Island building to support good-paying jobs and long-term economic growth,” McKee said in a statement accompanying his full budget.

While the Governor’s plan emphasizes affordability through higher incomes and improved healthcare outcomes, along with proposing a 3% tax on high earners, Jesse Martin, Executive Vice President of SEIU 1199NE, cautions, “The plan falls short of what’s needed to meet these goals. What’s more, the state’s recent minimum wage increase has actually reduced take-home pay for low-income home care workers and cut care hours for their vulnerable consumers. Rather than reducing care, the governor should offset these costs through increased federal Medicaid funding.” Martin co-represents over 5,000 health care and service workers in Rhode Island.

Budget Highlights for Older Adults  

For over a decade, the Rhode Island General Assembly has considered measures to gradually eliminate or reduce the state tax on Social Security benefits. This budget proposes phasing out this tax over the next three years. The full cost impact would be $60.1Million in FY 2030.

In AARP Rhode Island’s 2023 Vital Voices survey of Rhode Islanders 45+, 89% agreed that “Rhode Island lawmakers should repeal the state tax on Social Security,” said State Director Catherine Taylor in a newspaper editorial. “This sentiment is consistent regardless of age, gender, or political party,” she said.

Laura Hart, Gov. McKee’s Deputy Director of Communications, notes that senior services funding has grown under his leadership: “In FY21, the budget included $0.8 million for senior services. By FY26, that number had risen to $1.6 million. For FY27, the governor recommends $1.8 million—more than doubling the funding since he took office.”

Hart adds, “Rhode Island is only one of eight states that tax Social Security income. This tax can discourage retirees from staying in the state and contributing to the economy. Under the Governor’s proposal, the phase-out prioritizes 9,000–10,000 early retirees whose average income is $44K single/$75K joint—clearly not high-income earners—and who represent one-third of the population currently subject to the tax.”

Aging advocates continue to push for an increase in funding for local senior centers, aiming for allocations equivalent to $10 per resident age 65 and older.

Support for Nursing Homes and Affordable Housing

LeadingAge Connecticut & Rhode Island was pleased to see the Governor’s budget proposal include a 2.5% cost-of-living adjustment for nursing home rates, along with an initial rate increase equal to 50% of Rhode Island’s Office of the Health Insurance Commissioner’s biennial rate review recommendation for many Medicaid-funded home and community-based services,” says President Mag Morelli. “We understand this increase is intended as the first phase, with the remaining 50% anticipated next year,” she said.

Morelli also highlights the Administration’s focus on affordable housing, noting the growing need for accessible and affordable options for older adults. She urges further support for Medicaid-assisted living programs to sustain existing services and promote expansion, which she describes as a cost-effective option supporting independence and choice.

Kathleen Gerard of Advocates for Better Care in Rhode Island, a member of the Raise the Bar on Resident Care Coalition, emphasizes the importance of transparency and resources: “As our long-term care system faces increasingly complex pressures, transparency, accountability, and adequate resources are critical to protecting the health and safety of older adults and people with disabilities.”

She adds, “In addition to enforcing the Nursing Home Staffing and Quality Care Act, Raise the Bar is calling for a full Medicaid cost-of-living increase for nursing homes—above the 2.5% proposed by Governor McKee. We also urge new funding for the Ombudsman program, which has gone years without an increase despite its vital role in helping residents resolve care concerns. Finally, we support the Department of Health’s nursing home financial transparency bill to ensure owners are accountable for public funds.”

Other Provisions

The proposed budget also aims to maintain enhanced Affordable Care Act subsidies to keep coverage affordable for approximately 20,000 individuals. Without $9.5 million in state funding, an estimated 6,500 individuals could lose coverage.

The budget seeks to curb healthcare cost growth and increase drug-price transparency by authorizing the Office of the Health Insurance Commissioner to set enforceable annual cost-growth targets and requiring Pharmacy Benefit Managers to report detailed rebate, pricing, and fee data. These measures are designed to improve oversight, contain costs, and reduce drug prices for older Rhode Islanders.

McKee also proposes a $19.3 million investment in information technology, personnel, and resources to ensure Rhode Islanders can retain Medicaid and SNAP benefits under the federal reconciliation bill H.R. 1, while maximizing federal funding for these critical programs.

Additionally, the budget allocates $10 million to Rhode Island-based hospitals through the Disproportionate Share Hospitals payment to offset uncompensated care losses. Funding for social and human services providers is increased by $23 million in FY27, and state funds to combat food insecurity are doubled, raising support for the Rhode Island Community Food Bank from $1 million to $2 million. According to America’s Health Rankings, roughly 4.1% of Rhode Island adults aged 60 and older face food insecurity.

Securing Affordable Living for All Older Rhode Islanders

SACRI was pleased to see McKee put emphasis on affordability in his budget address and his expressed support for increasing taxes on higher-income residents to fund essential services, said SACRI Policy Advisor Maureen Maigret. When hammering out the FY2027 budget proposal, she urges the  House and Senate Finance Committees to allocate additional funding for programs and services that assist low- and moderate-income older adults from across the state facing economic challenges. The reality is that  one out of four older RI households have income less than $25,00 and almost half have income less than $50,000. Affordability measures must be aimed at putting money in the pockets of all older adults and not just those fortunate enough to have higher incomes, stated Maigret.

According to Maigret, SACRI has proposed and shared its 2026 Affordability Agenda for Older Adults for the Rhode Island General Assembly to consider as it develops and finalizes the state’s FY2027 state budget. The agenda tackles significant inequities in state programs and services, she noted, pointing out that Medicaid currently allows older adults and adults with disabilities to have only $4,000 in assets (for individuals) to remain eligible. This restriction is particularly unreasonable for those trying to live independently at home, especially since other Medicaid populations do not face such limits. What happens when the roof needs repairs or the hot water heater breaks,” she said.

Maigret stressed that keeping people at home and out of more expensive nursing homes can save the state money over time. She added that in 2025 with strong advocacy from SACRI, strides were made in expanding eligibility for the Medicare Savings Program (MSP), and as of February 1, individuals with incomes up to $2,255 per month are eligible—provided their assets are below $9,660.

SACRI advocates joining at least 12 other states in removing Rhode Island’s MSP asset limitation so that hundreds more Medicare recipients could have their $202.90 monthly Part B premium covered by the federal government. The savings would flow back into the state economy as recipients use the funds for basic needs.

SACRI supports the Governor’s proposed child care tax credit and also advocates for a similar credit for the hundreds of unpaid caregivers providing at-home care for older loved ones, often at significant financial sacrifice.

“We also strongly support Rep. Karen Azalter’s (D-Dist. 60, Pawtucket, Central Falls) and Senator Melissa Murray’s legislation (D-Dist. 24, Woonsocket, North Smithfield) legislative proposals  (H7313 and S2238) to create a 3% surcharge on the top 1% of income earners. The projected revenue of more than $200 million would help offset the modest costs of the proposals in our agenda, as well as other programs affected by federal changes,” Maigret said.

Next Steps

“The submission of the budget by Governor McKee signals the start of the months-long budget process,” says House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick). The House and Senate Finance Committees will hold dozens of public hearings, all televised by Capitol TV, to scrutinize every aspect of the budget.

Shekarchi adds, “We welcome all interested parties to testify at the State House. Once the hearings are completed, the House, Senate, and Governor will work together to finalize the budget in late May for adoption in June. Once enacted, it will go into effect on July 1.”

To view Governor McKee’s full budget submission, visit: https://omb.ri.gov/budget-office/fy-2027-governors-budget.

A Physician’s Guide to Living Life Fully, Not Just Longer, with Dr. Ed Iannuccilli

Published in RINewsToday on October 12, 2025

Over two weeks ago, over 300 advocates, providers, and older adults gathered at the Senior Agenda Coalition of Rhode Island’s (SACRI) 16th Annual Conference and Expo, “Navigating Choppy Waters – Shelter from the Storm,” held at Rhode on the Pawtuxets in Cranston.

The Sept. 25 event featured a thought-provoking keynote address by Dr. Ed Iannuccilli, state legislative updates, unveiling a new award to recognize two advocates, along with a panel discussion exploring critical topics facing older adults.

“This conference, by all measure, was a tremendous success,” said Carol Anne Costa, Executive Director of the Senior Agenda Coalition of RI, noting that the new venue, the topics, the engagement of the audience was reflected in the energy in the room.

“We are collecting survey responses an the feedback has been overwhelmingly positive,” says Costa noting that people are craving the opportunities to reconnect in person and in conversation. “If our vision for this conference helped to achieve that, it’s a win,” she said. 

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Simple Tips on Aging Gracefully

 Dr. Ed Iannuccilli, a highly respected retired board-certified internist and gastroenterologist and the author of six published books, delivered an impassioned 31-minute keynote shifting the tone from legislation and program updates.  He offered common-sense advice on aging gracefully and called for changes in the state’s health care system to restore compassion and personal connection.

Looking back to the early days of his medical practice, Iannuccilli—who practiced medicine for over 30 years—recalled a conversation with a lively, healthy 80-year-old woman.

“In the innocence of my youth, I said admiringly, ‘At 80, you’re in marvelous condition. You don’t need to worry—age is just a number.’”

“She looked at me, twirled her ring, straightened her smock, squinted, pursed her lips, and said, ‘Young man, I have the number. Don’t you ever tell anyone that again,’” he said.

“And I never did,” he added. “It was an early lesson. As Oscar Wilde said, ‘With age comes wisdom, but sometimes wisdom comes with winters.’ Well, I have the winters now. I have the number. And I’m pleased to say that no one has dared call it just a number again,” said the Bristol resident.

As for reducing the stress of growing old, Iannuccilli shared: “I try to do happy things, avoid too much news, meet friends, and accept loss and mistakes with a spiritual shovel. No one’s judging anymore—history is history.”

He advised, “Don’t make living a long life your goal; living fully, is. If you’re at an age milestone—don’t panic. Laugh more. Call a friend. As Mark Twain said, ‘Don’t complain about growing old; it’s a privilege denied to many.’”

Iannuccilli said he stays curious, reads, writes, and keeps his mind active. “I even take piano lessons. I don’t need to go on a space mission; I’m already on a planet full of adventure,” he joked.

 He also emphasized that longevity and good health are tied to human connection. “Be a helper. Call a friend. Drive someone to a doctor’s appointment. Volunteer at a pantry. Fred Rogers’ mother was right—‘Look for the helpers.’ Better yet—be one,” urged Iannuccilli.

Navigating a Broken Health Care System

“We use words like quality, efficiency, deliverables, and outcomes—but what people want is access and comfort,” Iannuccilli observed. But, fewer long-term physician-patient relationships, financial barriers at every turn, and isolation among older adults all reflect systemic changes in today’s healthcare system, says Iannuccili.

According to Iannuccili, costs for care, medication, nursing homes, and even vaccines are rising. Too many seniors live alone and disconnected.

“When someone is sick, they want to be comforted. They want someone who listens and helps them navigate an increasingly impersonal system,” he says. 

Today it’s [often] a long phone queue, a chatbot, or a portal that needs a password and two-step verification,” he said. “You wait on hold and think, ‘This is my health I’m calling about, not my cable bill.’ We’ve lost the personal touch.”

“Be patient with emerging artificial intelligence,” Iannuccilli added. “With proper tuning, it can increase efficiency, help pair patients with the right provider, contain costs, and even promote equity. But nothing—nothing—will ever replace personal care.”

Patients are now called consumers, he said, a term he dislikes. “You’re not a consumer—you’re a patient. The word comes from the Latin patiens—one who suffers. It deserves respect.”

Recognizing Rhode Island’s Health Care Assets

Iannuccilli called for Rhode Islanders to stop focusing on negatives, like the bridge, and instead recognize their access to high-quality health care facilities.

“Within 20 miles you can reach some of the nation’s best hospitals—Rhode Island Hospital, Women & Infants, Hasbro Children’s, Butler, Bradley, Kent, South County, Newport, Miriam, Roger Williams, and Fatima,” he said.

According to Iannuccilli, the state’s health care system—from Brown University to URI—is “extraordinary,” featuring world-class nursing programs, physician assistant schools, and a top pharmacy school.

He believes Rhode Island can become a national model for universal access to health care.

“If we can assume our trash will be collected, our children educated, and our homes protected by firefighters, why can’t we assume access to health care for everyone?” he asked. “We have the talent. We have the infrastructure. What we need is the will.”

With a growing shortage of primary care physicians, Iannuccilli called for the creation of a medical school at the University of Rhode Island dedicated solely to training primary care physicians.

He concluded by issuing a call to action: “Let’s make Rhode Island the envy of the nation—a state where health care works for everyone, where education, research, and delivery come together. We can do better. We must do better. And guess what? We don’t have a choice.”

SACRI Recognition

At the conference, Costa recognized the advocacy of Ray Gagne Jr. for his advocacy work as Senior Organizer at RI Organizing Project and Sister Norma Fleming, RSM, for her direct work with adults with disabilities at ReFocus, Inc. by presenting them with the inaugural Marjorie Waters Award for Service. Honoring the legacy of Marjorie Waters—a Rhode Island College graduate, former Director of Information Technology for a Tribal Nation, Six Sigma Process Excellence Coach in the finance industry, and Executive Director of Providence’s Westminster Senior Center—the award celebrates her dedication as a lifelong community activist.

Legislative Greetings, and a Look to the Future

House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick) brought greetings from the House, emphasizing his strong commitment to supporting the state’s growing older population.

“As long as I’m Speaker of this House and I’m in Rhode Island government, you will have a friend in state government,” he pledged to the attending advocates and older adults.

The Warwick lawmaker shared how his 99-year-old father, who is battling Alzheimer’s and has mobility issues, has given him a personal understanding of older Rhode Islanders’ desire to remain at home—insight that has shaped his aging policy agenda.

Shekarchi highlighted several recent legislative successes, including the expansion of the Medicare Savings Program after 14 years of advocacy, which will save low-income beneficiaries over $2,000 annually. He also cited the state’s Accessory Dwelling Unit (ADU) Law, which allows in-law apartments or “granny flats” (in the colloquial), to help residents age in place in their homes.

Senate President Rep. Lauren Carson (D-Dist. 75, Newport), also detailed her legislative work on behalf of older Rhode Islanders. As Chair of the House Study Commission on Aging, she announced her intention to introduce legislation to make the commission permanent to help guide the state’s aging policy.

Another planned bill for next year would replace the term “senior citizen” with “older Rhode Islander” in state law to promote a more positive view of aging.

Maria Cimini, Director of the State’s Office of Healthy Aging, stressed that the guiding principle of her office’s work was to ensure older Rhode Islanders had the “choice to age as they wished” with dignity and independence.

She pointed out a significant demographic shift, noting that Rhode Island now had more people over 65 than under 18. “We are all aging. My goal is to be sure that Rhode Island is a great place to grow up and grow old,” she says.

A panel discussion followed the keynote, covering practical aspects of end-of-life planning, including legal documents such as wills and trusts, funeral pre-planning, financial planning for dependents with disabilities, suicide prevention, and the role of the long-term care ombudsman.

To watch SACRI’s Sept. 25th program, go to https://capitoltvri.cablecast.tv/show/11543?site=1

House Finance Committee’s FY 26 Budget boosts support for older Rhode Islanders

Published in RiNewsToday on June 16, 2025

Last Wednesday evening, the House Finance Committee voted 11–3 to approve a balanced $14.33 billion budget for fiscal year 2026—approximately $500 million less than the current year’s budget.

Lawmakers were tasked with closing a $250 million deficit without resorting to broad tax hikes or cuts to essential services. Faced with a slowing state economy and looming federal funding reductions, they focused squarely on bridging the budget gap while improving access to health care, increasing reimbursement rates for primary care providers, nursing homes, and hospitals, and addressing the state’s housing crisis.

The budget proposal also boosts funding for housing and homelessness services, supports municipalities through increased revenue sharing, expands Rhode Island Public Transit Authority (a.k.a. RIPTA) funding, invests in education, imposes new EV registration fees, restores highway tolls, and extends childcare subsidies while setting distinct rates for toddlers and infants.

“Despite the very significant challenges we face in this fiscal year, this budget reflects our commitment to our priorities: not only protecting, but strengthening the vital Medicaid programs that provide health and safety to Rhode Island’s seniors, children, individuals with disabilities, and working families; supporting our health care system, particularly the hard-working primary care providers and frontline caregivers; and addressing our housing crisis,” said House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick), in a statement announcing the budget’s passage by the House Finance Committee.

Vote Set

According to House Communications Director Larry Berman, the 435-page budget proposal (2025-H 5076A) now moves to the full House for a vote scheduled for Tuesday, June 17, at 3:30 p.m. If passed, the budget will be sent to the Senate, where action is expected by the end of next week as the legislative session concludes.

If the Senate makes no changes, the bill will go directly to Governor Dan McKee for his signature. However, if revisions are made, it must return to the House for final approval before being sent to the Governor.

Berman and his Senate counterpart, Greg Paré, Director of Senate Communications, do not anticipate any major issues—but note that nothing is ever guaranteed.

Funding Aging Programs and Services

The Senior Agenda Coalition of Rhode Island (SACRI) and its allied aging advocacy groups didn’t get everything they lobbied for —but they made progress, according to SACRI Executive Director Carol Anne Costa, who praised the proposal as a “moral budget.”

“This budget represents a moral compass pointing toward a healthier, more equitable Rhode Island,” said Costa, crediting the group’s advocacy efforts, particularly those of SACRI Policy Advisor Maureen Maigret.

Costa highlighted new language in Article 8 that expands the Medicare Savings Programs, enhancing healthcare access for vulnerable older adults and individuals with disabilities. The House Finance Committee recommended adding $7.1 million—$700,000 of that from general revenues—for this critical expansion.

Unlike a narrower 2024 Assembly proposal that faced implementation barriers, the FY 2026 budget expands eligibility to 125% of the federal poverty level for the Qualified Medicare Beneficiary (QMB) group and up to 168% for the Qualified Individuals (QI) group.

“This crucial change is estimated to assist thousands of Medicare enrollees, helping them cover burdensome co-payments and deductibles, and potentially saving them at least the $185 monthly Part B premium—which can now go toward food and other essentials. For many, this means the difference between delaying care and receiving timely treatment,” Costa noted.

Strengthening Primary Care Access

“The state’s primary care system is at a crisis point. We’ve heard that our reimbursement rates are low, and that’s the main cause of the health care shortage. We wanted to address that immediately,” said Speaker Shekarchi.

SACRI applauded the Speaker’s efforts to address both the shortage of primary care physicians and the funding shortfall for direct-care staff in nursing homes. “This budget recognizes the critical importance of primary care—especially for older adults and those managing chronic conditions—and addresses provider rate increases through several key initiatives,” said Costa.

The proposal includes over $40 million—$15 million from the state and the rest from federal funds—to increase Medicaid reimbursement rates for primary care providers, currently lower than in neighboring states.

Additionally, the budget proposes a new healthcare assessment similar to the state’s immunization program assessments. This broad-based assessment, applied per member per month to all covered lives (including self-insured plans), is expected to raise $30 million annually to support primary care and related services. The estimated state cost is $1.4 million, including $800,000 in general revenues.

The committee also recommended $26.4 million ($8.3 million in general revenue) to raise Medicaid primary care rates to 100% of Medicare rates beginning Oct. 1, 2025. This significant increase aims to incentivize providers to serve more Medicaid patients and improve access to foundational care.

Furthermore, the Office of the Health Insurance Commissioner (OHIC) must submit a one-time report by September 2026 to recommend further adjustments to primary care reimbursement rates.

“To address fiscal challenges facing our community health centers, the budget also includes $10.5 million—$4 million of that from general revenues,” Costa added.

Attacking Persistent Staffing Issues in Rhode Island’s Nursing Homes

SACRI, the Rhode Island Health Care Association (RIHCA), SEIU 1199NE, and the state’s Long-Term Care Ombudsman praised the House Finance Committee’s decision to allocate funds aimed at addressing persistent staffing issues in Rhode Island’s 73 nursing homes. The committee approved a $12 million funding package—including $5 million from general revenues—for a base rate staffing adjustment to improve compensation, wages, benefits, and employer costs for direct-care staff. These investments are designed to enhance the quality of resident care and improve workforce stability.

According to John E. Gage, President and CEO of RIHCA, following months of negotiations, RIHCA and SEIU 1199NE reached a compromise to amend the 2021 nursing home staffing law. The revised agreement establishes a more achievable staffing target of 3.58 hours of care per resident per day and adjusts penalties to support facilities in reaching consistent compliance. It also introduces flexibility for high-performing facilities and those with site-specific challenges. “The state budget passed by the House Finance Committee invests $5 million, which unlocks an additional $7 million in federal matching funds,” noted Gage.

“On behalf of RIHCA and its members, we are pleased that the Speaker and House Finance Committee members recognized the dire conditions facing the industry,” Gage added. “We are encouraged that their actions will help stabilize Rhode Island’s nursing facilities and ensure access to high-quality care and services.”

Rhode Island currently ranks second in the nation for “Immediate Jeopardy” violations—the most serious federal nursing home deficiencies. Both SEIU 1199NE and RIHCA believe the budget provisions will help reverse this alarming trend.

SEIU 1199NE’s Patrick Quinn and SACRI’s Costa praised the inclusion of the $12 million investment in the FY 2026 budget, viewing it as a crucial step in helping nursing homes recruit and retain essential staff.

Lori Light, Rhode Island’s State Long-Term Care Ombudsman, also commended House lawmakers for allocating new funding to improve pay and staffing levels—critical measures for enhancing care quality and creating safer, more stable environments for vulnerable residents. “These are issues our office has consistently advocated for, and we’re encouraged to see real movement in the right direction,” she said.

Finally, the budget proposal also includes an increase of $1.86 million for the Office of Healthy Aging, raising its funding from $37,091,920 to $38,948,518. This includes:

  • A $200,000 boost for Senior Services Support (from $1.4 million to $1.6 million)
  • A $50,000 increase for Meals on Wheels (from $630,000 to $680,000)
  • $325,000 to provide elder services, including respite care, through the Diocese of Providence
  • $40,000 to fund ombudsman services provided by the Alliance for Long Term Care

The Missing Millionaire’s Tax

SACRI and progressive advocacy groups had hoped the budget would include HB 5473, introduced by Rep. Karen Alzate (D-Dist. 60, Pawtucket, Central Falls) on Feb. 12, 2025 and S329 introduced on by Sen. Melissa Murray (D-Dist. 24, Woonsocket, North Smithfield, on February 21, 2025. The bill proposed a 3% surtax on taxable income above $625,000—on top of the existing 5.99% rate—targeting the top 1% of Rhode Island filers. The tax was projected to raise roughly $190 million annually and impact only 5,700 of the state’s 500,000 taxpayers.

But the surtax didn’t make it into the final budget.

Asked why, Speaker Shekarchi explained: “There is still a great deal of uncertainty at the federal level. We don’t know what changes are going to be made in the federal tax code. We felt comfortable enough to move forward with the non-owner-occupied property tax on homes valued at over $1 million, and we will revisit the millionaire’s tax when we have more clarity from Washington.”

While Costa wished the surtax had been included to fund additional initiatives, she said, “The bottom line is the budget is balanced and people-focused. In particular, older adult concerns were seriously considered.” As the session winds down, SACRI will continue to monitor remaining legislative proposals that affect Rhode Island’s older residents.