Statement from Governor Chafee regarding the FY14 Preliminary Closing Statement and FY14 General Fund Surplus

Today Governor Lincoln D. Chafee announced that the FY14 Preliminary Closing Statement, issued by the Department of Administration’s Office of Accounts and Control, shows the state ended fiscal year 2014 with a $68 million General Fund surplus.  General revenue expenditures were $16.1 million less than budgeted.  For each year of the current administration’s term, the state’s general revenue expenditures have been less than budgeted appropriations – $18 million less in 2011, $29 million less in 2012, and $17.8 million less in 2013.  This is the fourth year in a row that the state has seen strong closing surpluses – $64.2 million in FY11, $115.2 million in FY12, and $104.1 million in FY13.  $59.2 million of the surplus funds were accounted for in the FY15 budget as enacted by the General Assembly.

In addition, the FY14 Preliminary Closing Statement shows the budget reserve and cash stabilization account is fully funded with a balance of $177 million.  The Rhode Island Capital Plan Fund available balance is $124.4 million.

“I am very proud of our team of directors and state employees throughout all of state government who deserve significant credit for spending less than their enacted budget,” stated Governor Chafee.  “I am gratified once again that the state has ended each year that I have been Governor with a healthy surplus.  For the last two years, my administration has submitted a balanced budget on time and now, due to the strong fiscal management exhibited by our state agencies, we can announce that this is the fourth straight year in a row with state agencies coming in under budget.

“Recent economic indicators – including the steadily declining unemployment numbers, the increase in median house prices, continued economic growth in Q1 and Q2 and projected growth for Q3 – combined with this latest news of the state’s positive economic performance, show that together we are strengthening Rhode Island’s economy.  I am proud that my administration has set a strong platform for the next governor and the next stage in our state’s recovery.”

Online: http://controller.admin.ri.gov

 

Statement from Governor Lincoln D. Chafee Regarding His Intention to Sign the FY 2015 Budget

Governor Lincoln D. Chafee today said: "The FY 2015 budget passed by the General Assembly, which I intend to sign into law, presents many of my initiatives and some modifications that are encouraging.

"First and foremost, I was pleased that the debate on whether to pay the 38 Studios moral obligation bond ended with the right decision for Rhode Island. I have been unequivocal in my belief that we must honor our debts, however painful. Second, the General Assembly’s FY 2015 budget has a plan to eliminate the toll on the Sakonnet River Bridge by charging a 1-cent gas tax. I have been adamant that absent tolling a reasonable alternative be reached. The reality is we cannot afford to see another bridge completely replaced – at great cost to taxpayers – because of a lack of maintenance.

"I am heartened and commend the legislature for investing in education and our public schools. The budget retains the education aid formula and a tuition freeze for Community College of Rhode Island, Rhode Island College and University of Rhode Island. The $125 million voter bond to enhance URI’s College of Engineering complex will attract and retain talent and is another commendable investment in the future. With the approval of the lease for the Nursing Education Center, which will be headquartered in the former South Street Power Station, the budget buoys my long-term strategy to strengthen the “meds and eds” and grow our Knowledge District. In addition, the $1.5 million for workforce development is a meaningful commitment to worker training and closing the skills gap.

"I was pleased that the voter bonds I had proposed were included in this year’s ballot. The bonds reflect important strategies to grow our economy through improving infrastructure and higher education; enlarging our arts and cultural economy; and protecting Rhode Island’s environment. By maintaining my proposed aid to cities and towns, we continue our work with the municipalities to reverse the damage caused by the previous administration.

"Since taking office, I have proposed reducing the state’s corporate tax rate from 9 percent to 7 percent. I applaud the General Assembly for taking this step through combined reporting to make us more competitive. We need to be mindful that with any budget we put forth, it must be focused on priorities and strategies that send a clear and consistent message far beyond our borders that we honor our commitments, and that the leaders in our state are doing all they can to make Rhode Island a great place to live and work."

Statement Regarding the Budget Announcement by the House Committee on Finance

Governor Lincoln D. Chafee said tonight: “My administration and I will evaluate the budget presented to the House Committee on Finance. I understand that the budgeting process is an exercise in compromise, collaboration and cooperation, and I hope that this budget will move Rhode Island forward.

"Since my first budget, I have proposed and been a proponent of lowering the corporate tax from 9 percent to 7 percent. I applaud the General Assembly for taking this important step to making us more competitive.

"I have been adamant that a reasonable alternative to tolling be reached. The reality is that road and bridge infrastructure needs a consistent funding stream and the money must come from somewhere. Nobody wants to see another bridge completely replaced – at great cost to taxpayers – because of a lack of maintenance. Good transportation infrastructure is closely aligned with building a strong economy. I look forward to examining the plan put forth by the House Committee on Finance.”