With $1.1B in the bank, RI the only New England state not to touch its "Rescue Plan" money

Most states in the country and all of Rhode Island's New England neighbors have spent at least some of their share of American Rescue Plan aid, but the Ocean State has taken a more deliberate approach. 

Although Gov. Dan McKee has tried to dip into some of the $1.1 billion sitting in state bank accounts, the General Assembly has so far waved him away.

Now, with advocates circling and next year's election looming, lawmakers are starting the process of figuring out what to do.

Next Tuesday, the Senate Finance Committee and a special House task force will hold separate meetings about when the state may start reaching between the proverbial couch cushions for the money.

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Senate Finance Chairman Ryan Pearson said the first order of business at next week's meeting will be getting an idea of what other states have done.

According to a map from the National Conference of State Legislatures, 15 states plus Rhode Island have not appropriated any of their Rescue Plan money. (These don't include Idaho, which the NCSL says has set aside $50 million for "undetermined needs" or New York, which it says set deadlines to spend the money by next April, but not how it will be spent.)

States were supposed to file written plans for how they would spend their Rescue Plan money with the federal government. Rhode Island's submission details how it spent other federal COVID relief dollars, but says planning for the $1.1 billion is ongoing.

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Roughly a dozen states don't have plans posted on the National Association of State Budget Officers website.

Pearson Friday said he thinks lawmakers were right not to try to spend any of the $1.1 billion before ending their normal legislative session this summer.

"The first thing we need to do is align on what our goals would be," Pearson said. "I am not sure just spending the money is right."

Pearson, who is mulling a run for general treasurer next year, said the state is also watching whether the bipartisan federal infrastructure package agreed on earlier this year passes Congress, alleviating some possible state needs.

McKee lobbied unsuccessfully to tap Rescue Plan money to build a new state health laboratory and then later hosted a series of Facebook Live sessions on how it could be spent, but hasn't put out a detailed proposal.

Pearson said he still expects the governor to testify on use of the money this fall and wants to hear from interest groups and members of the public about how the money should be spent.

A committee put together by the Rhode Island Foundation, Rhode Island Public Expenditure Council and Economic Progress Institute is also expected to deliver recommendations in the middle of October.

Pearson said he thinks the $1.1 billion should be spent outside the normal annual budget process so it goes to future investments and not just plowed into existing operations. That might mean approving spending in chunks instead of an annual budget at the end of the fiscal year.

Asked why Rhode Island is moving so much slower than its neighbors, House Speaker K. Joseph Shekarchi said it is to get more public feedback.  

"We preserved the full amount for a more robust public process on the proposed uses for these funds, which are available for use over several years," Shekarchi said in an email. "The task force is intended as one of the many aspects of that process and will focus on developing a deeper understanding of the allowable uses, expected updates to federal guidance on usage, experience in other states and other relevant information that will help inform future deliberations.”

House and Senate leaders have been in talks with McKee and his aides on a number topics, including the Rescue Plan money and marijuana legalization.

The results of those talks will likely determine whether the full Assembly returns to session this fall.

panderson@providencejournal.com

(401) 277-7384

On Twitter: @PatrickAnderso_