Gov. Chafee signs $8.2 billion state budget
With Gov. Lincoln Chafee’s signature last week, the $8.2 billion 2014 state budget passed by the General Assembly is now law. The budget includes no tax or fee increases.
The budget bill takes into account a reduction of more than $30 million in available resources caused by lower-than-anticipated revenue, but still includes funding for the restoration of the historic tax credit, workforce development, and a 16-month trial period for tax-free wine and liquor sales to help Rhode Island stores compete with tax-free liquor sales in neighboring Massachusetts.
Legislators included the first $2.5 million payment on the moral obligation bond issued for the now-bankrupt 38 Studios, an amount that was also included in Chafee’s proposal. Also included is $50,000 for a market analysis of the potential consequences for the state should it fail to pay back the bonds.