Statement by Ernie Almonte, Executive Director, Rhode Island League of Cities and Towns:

"Rhode Island’s municipal leaders thank the House for bringing relief to our taxpayers and supporting municipalities in the current budget, as well as including several of our budget priorities in the amended FY 2023 budget.

The elimination of the car tax a year early comes at a time when families are struggling. With the additional funds to support the car tax phase-out, communities will see an overall increase of $65.4 million in FY 2023 in local aid in this budget. As we continue to navigate a post-pandemic economy, the House also responded to our request to authorize municipalities to exempt the Tangible Tax up to a certain amount.

When our property tax burden is already the eighth highest in the country, an equitable system that supports state aid to cities and towns to lessen the property tax burden on residents is essential. By funding the PILOT (Payment in Lieu of Taxes) program at the mandated 27%, cities and towns will continue to offset non-taxable entities, like state offices, in a fair and constructive way to help lessen the loss of local property taxes.

Our students are the future of our communities and our state. Investing in new and updated school buildings is critical to our students and teachers’ safety and success. While our communities continue to experience enrollment fluctuations, we thank the House for including a solution that evens out the temporary imbalance. We also extend our appreciation to the House for authorizing another school construction bond ($250M), $50M allocation to support school construction and extending reimbursement bonuses that will further support this effort. As communities continue to fund improvements in their schools, they are now experiencing increased projects cost and delayed project timelines due to inflation and supply chain issues. We hope that the General Assembly will consider extending all school construction bonuses to 2025.

The League looks forward to continuing its work with the General Assembly and the Governor to advocate for reforms, elimination of state mandates, and local aid programs that directly affect our communities and local taxpayers."