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.

Pawtucket Announces New Initiative to Create an Age-Friendly Community

Published in RINewsToday on October 6, 2025

Over a year ago, Mayor Donald R. Grebien officially signed a resolution, marking the beginning of an important process. The signing ceremony, held on September 16, 2024, in the City Council Chambers, was attended by local leaders, community advocates, state officials, and members of the Pawtucket Senior Citizens Council.

The resolution to join the nation’s Age-Friendly network was approved by the City Council after being in development for more than six years. It highlights Pawtucket’s commitment to creating an inclusive and supportive environment for residents of all ages, from the very young to the elderly.

The Age-Friendly network helps participating communities engage with older adults and their caregivers through surveys and assessments. Based on the feedback received, communities develop action plans to enhance livability for all ages by adopting features such as safe, walkable streets, better housing and transportation options, access to key services, and opportunities for civic and community participation.

The initiative is built around the World Health Organization’s (WHO) report, Global Age-Friendly communities: A Guide in 2017, offering municipalities an action plan, identifying eight “domains for living”  to create more welcoming communities for older adults.  These domains are implemented and assessed in three phases over five years, with continuous cycles of improvement thereafter. The domains are:

1.    Outdoor spaces and buildings

2.    Transportation

3.    Housing

4.    Social participation

5.    Respect and social inclusion

6.    Civic participation and employment

7.    Communication and information

8.    Community support and health services

AARP launched its U.S. Age-Friendly Network in 2012. By 2014, New York City became the first U.S. city to join the WHO Age-Friendly Cities network. By 2017, Rhode Island became the first U.S. state to officially adopt the Age-Friendly Communities framework. In 2025, AARP will commemorate the 1,000th U.S. municipality joining the Age-Friendly Network, marking a significant milestone in the movement to make communities more welcoming for older adults.”

Pawtucket’s effort involves a large-scale collaboration between the Mayor’s Office, the Leon Mathieu Senior Center, other city departments, Age-Friendly Rhode Island, the Local Initiative Support Corporation (LISC), and various local organizations. Together, they will oversee data collection and the creation of an Age-Friendly blueprint for action.

Pawtucket Becomes Official 

Last week, Mayor Grebien, along with members of the City’s Age-Friendly Task Force and AARP Rhode Island, formally announced Pawtucket’s efforts to join over 1,000 communities in the AARP Network of Age-Friendly States and Communities. Globally, over 1,500 cities and towns across more than 51 countries have joined the WHO Age‑Friendly network, illustrating the reach of this movement.

With the kickoff of the press conference, Pawtucket joined other Rhode Island cities—Newport, Cranston, Providence, Westerly, and Bristol—in this growing initiative.

Mary Lou Moran, Director of the Leon Mathieu Senior Center and Pawtucket Senior Services, served as master of ceremonies. She welcomed over 90 attendees and introduced the initiative, “Age-Friendly Pawtucket: Honoring the Past, Shaping the Future,” along with a panel of speakers.

“This is an exciting day as the city commits to addressing aging across the lifespan and ensuring we provide appropriate services, support systems, and opportunities for families and caregivers,” said Moran.

A key component of the press conference was the launch of a community needs assessment and survey, designed to gather direct input from residents to help guide the development of the action plan. Moran encouraged attendees, especially older residents, to participate in the survey. “We need your input to help us build a community that promotes health and wellness for all ages,” she said.

Catherine Taylor, State Director of AARP Rhode Island, explained the core philosophy behind the Age-Friendly movement: “If you make a city great for an 8-year-old and an 80-year-old, you make it great for everyone. That’s the age-friendly lens Pawtucket is using.”

AARP Rhode Island President Elizabeth Howlett, former Lieutenant Governor of Rhode Island, emphasized the importance of volunteerism and the role of community members in the survey process.

James Connell, Executive Director of Age-Friendly Rhode Island, noted that the aging population in Pawtucket and across Rhode Island was a major driver for embracing this initiative. “Rhode Island is one of the few states where there are more people age 65 and older than under 20,” he said. “This is something to celebrate. It’s an opportunity to assess needs, meet challenges, and create goals and visions for healthy aging.”

Beth Roberge, President of the Pawtucket Senior Citizens Council, shared a personal perspective on aging while advocating for the initiative: “Life doesn’t end when you reach a certain age. It’s just another stepping stone.”

Jeanne Cola, LISC’s Executive Director, called for Pawtucket’s older residents to participate in the survey, stressing that the data collected would drive the city’s planning and policies, rather than relying on assumptions. “Let your voice be heard. If you don’t participate, you don’t get what you want,” she said.

Mayor Grebien closed the event with a light-hearted remark: “Now that I’ve turned 58, I truly understand the importance of the Age-Friendly Initiative.” He expressed excitement about the opportunities that would emerge from this effort.

Comments from the Crowd

“The support shown at the kick-off event by AARP leadership, Mayor Grebien, and so many organizations across the City was just amazing,” said Maureen Maigret, policy advisor for the Senior Agenda Coalition of Rhode Island (SACRI). “Now, the work begins as the Task Force reviews the survey data to identify which areas to target for initial efforts.”

As a Pawtucket native, Maigret was thrilled to see the city’s Age-Friendly designation come to fruition. She had previously served as a consultant for Newport 4 All Ages, Rhode Island’s first Age-Friendly Community.

“I was so energized by the turnout at the Age-Friendly designation event in Pawtucket,” said Carol Anne Costa, Executive Director of SARI. “And kudos to Mary Lou and her team. The day demonstrated the power of community. Advocacy depends on citizens speaking and acting in their own best interests. Pawtucket’s work shows that older adults are ready to make Rhode Island a state that promotes healthy aging.”

Age-Friendly Pawtucket Task Force Members

·         Pawtucket Senior Citizens Council

·         Pawtucket Commission on Arts & Culture

·         Blackstone Valley Community Action Program

·         Blackstone Health, Inc.

·         Blackstone Valley Prevention Coalition

·         Gateway Healthcare/Brown University Health

Resources:

1.    Step-by-Step Toolkit for Creating an Age-Friendly Community
Start the process of becoming an age-friendly community by following this guide:
Age-Friendly Toolkit [shared.outlook.inky.com]

2.    Understanding AARP’s Age-Friendly Process
Learn more about AARP’s approach to creating age-friendly communities:
AARP Age-Friendly Communities [shared.outlook.inky.com]

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