Latest news with #RhodeIslandCurrent
Yahoo
4 hours ago
- Business
- Yahoo
Rhode Islanders take dim view of state's economy, McKee in new polls
U.S. News & World Report's 'Best States for 2025' rankings placed Rhode Island 24th overall—a 10-spot jump since Gov. Dan McKee took office in 2021. But a new poll showing 19% of respondents approved of McKee's job performance — a drop of 10 points from a year ago. (Photos by Alexander Castro/Rhode Island Current) Few Rhode Islanders think they are better off financially so far in 2025 compared to last year — and not many think Gov. Dan McKee is doing a good job, according to new polling from the University of New Hampshire (UNH). The latest Ocean State poll found only 15% of 653 Rhode Island residents surveyed between May 22 and 26 believed they were doing better than in 2024. Another 40% said their finances were the same, while only 45% believed they were doing worse. UNH's poll has a 3.8% margin of error. The top reason for financial concern was an expectation of higher prices and inflation, which was cited by 87% of those who believe they will be worse off by 2026. Rhode Islanders polled also remained pessimistic about making future investments, with only a quarter of respondents saying now is a good time to play the stock market. Only 19% said they felt that now is a good time to look for a new job. UNH's economic survey comes just a day after releasing a poll showing 19% of respondents approved of McKee's job performance — a drop of 10 points from a year ago. It's an even sharper drop from a Morning Consult poll released in mid-April, which gave McKee a 43% approval rating and the fourth-highest disapproval rating among the nation's 50 governors. About 74% of the Rhode Islanders polled by UNH said the governor should not run for reelection in 2026. That includes 60% of Democrats surveyed. McKee made his re-election bid official in March and remains the only candidate to officially throw his hat in the ring. But a significant chunk of those polled may be interested in seeing former CVS executive Helena Buonanno Foulkes run again. She lost to McKee by 3 percentage points in a five-way Democratic gubernatorial primary in September 2022. UNH's poll found that 32% of respondents want Foulkes to enter the 2026 race. Foulkes' campaign manager, Jon Romano, celebrated the survey. 'What this poll reveals is what Helena is hearing in every corner of our state: Rhode Islanders know the current system has failed them, they're dissatisfied with state leadership and the direction of our state, and they're demanding the kind of meaningful change that will finally put their needs first,' Romano said in an emailed statement. McKee campaign spokesperson Mike Trainor declined to comment on UNH's poll. But the governor has proudly proclaimed the state has improved under his tenure, citing Rhode Island's 24th overall spot in the latest U.S. News & World Report 'Best States' ranking — a 10-spot jump since the governor ascended to the job in 2021. The ranking specifically had Rhode Island's economy climbing 12 places from 28 to 16 between 2021 and 2025. Rhode Island is currently ranked #8 in the 'Business Environment' subcategory, up one from 2024. In the past year alone, the state jumped 18 places to reach #14 in the 'Growth' subcategory. Another 23% of those polled by UNH are open to former Republican candidate Ashley Kalus running again, while 19% are open to former Democratic Gov. Gina Raimondo returning to the State House. President Trump's job approval in Rhode Island fell slightly. The latest poll had 37% approving and 61% disapproving of his job as president with 2% unsure. That's down from 40% approving and 59% disapproving with 1% unsure a year ago. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
3 days ago
- General
- Yahoo
Dept. of Homeland Security puts R.I. on notice as a ‘sanctuary jurisdiction.' It's unclear why.
The Trump administration has put the state of Rhode Island on notice. Now a formal notification of its 'noncompliance' with federal immigration policy is forthcoming, says the U.S. Department of Homeland Security. (Photo by Alexander Castro/Rhode Island Current) Exactly what court order the Trump administration is using to base its declaration that Rhode Island is defying federal immigration policy remains a mystery. But the head of the state's chapter of the American Civil Liberties Union (ACLU) has a theory. The state as well as Providence and Central Falls are on a list of 500 'sanctuary jurisdictions' that may lose federal funding released Thursday night by the U.S. Department of Homeland Security. The list was compiled based on factors like noncompliance with federal law enforcement, information-sharing restrictions, and giving legal protections to undocumented immigrants, the department's website stated. The website also states that Rhode Island made the list because of a 'Court Order Requiring State Sanctuary Requirements.' Rhode Island Current reached out to Homeland Security for specific details and received a statement reiterating the designation factors on the department's website. Steven Brown, executive director of the ACLU of Rhode Island, hypothesized that the federal government may be citing a 2014 federal court order that ruled police officers in Rhode Island cannot hold a person in custody based upon an U.S. Immigrations and Customs Enforcement (ICE) detainer alone for more than 48 hours. 'It's a very basic Fourth Amendment law,' Brown said in an interview. 'And it appears the Trump administration is upset that the Constitution prevents them from doing what they want to do.' The Department of Homeland Security's list was published as part of an executive order issued by President Donald Trump April 28 mandating federal officials identify and publicly highlight jurisdictions that 'refuse to cooperate with federal immigration authorities.' 'These sanctuary city politicians are endangering Americans and our law enforcement in order to protect violent criminal illegal aliens,' Homeland Security Secretary Kristi Noem said in a statement Thursday. 'We are exposing these sanctuary politicians who harbor criminal illegal aliens and defy federal law.' The announcement from the Department of Homeland Security states each jurisdiction on the list will receive a formal notification of its 'noncompliance' with federal policy and must immediately review and revise its policies to align with the Trump administration. Gov. Dan McKee's office has not received any notification as of Friday, said spokesperson Olivia DaRocha. Officials in Central Falls and Providence said their cities have not received any notice either. 'As we have always stated, Rhode Island cooperates with ICE on the lawful detention of criminals in accordance with a binding federal court ruling,' DaRocha said in an emailed statement, referring to the 2014 court order. Providence Mayor Brett Smiley said in a statement that he has no plans to change the city's existing policy regarding immigration. Police officers are prohibited from asking about someone's immigration status and from holding a subject 'based exclusively' on an administrative detainer, nor are they allowed to arrest suspected undocumented individuals unless federal immigration officers provide a criminal warrant signed by a judge. 'The Providence Police are not and will not be immigration officers and are better able to keep our community safe with this policy,' Smiley said. 'Providence remains committed to being a safe and welcoming city for all.' Smiley added that the city remains fully compliant with federal law and does not violate any federal regulations. Central Falls in 2019 enacted its own ordinance that prohibits local police officers from questioning people about their immigration status without probable cause, bar any compliance with detainer requests made without a warrant, and ensure municipal services are available to all residents regardless of their citizenship. Central Falls Mayor Maria Rivera in a statement said her city stands by its values and community. 'Our ordinance is legal and makes our city safer –– building a stronger foundation for public trust in our local police department,' Rivera said. 'Together with the city of Providence, we won this fight before during the first Trump Administration.' Rivera was referring to a 2018 lawsuit against the U.S. Justice Department over requirements that recipients of a federal criminal-justice grant, known as the Edward Byrne Memorial Justice Assistance Grant, cooperate with authorities in the enforcement of federal immigration law. U.S. District Court Judge Judge John J. McConnell Jr. ruled in favor of the cities in 2019, which was upheld by a federal appeals court in Boston in 2020. But the chairman of Rhode Island's Republican Party said the state's placement on the list was the result of 'deliberate, reckless choices' by the governor and city officials. 'Let's be clear, this isn't compassion, it's capitulation,' party chairman Joe Powers said in a statement. 'McKee is harboring those who break federal law while turning his back on those who enforce it.' 'President Trump is standing up to this nonsense,' he continued. Brown, however, maintains that there's not legitimate basis from the federal government that Rhode Island or any municipalities are violating federal law. 'They're not, they're upholding the law,' he said. Also making the list were Connecticut, and its cities of East Haven; Hamden; Hartford; New Haven; New London; and Windham. Massachusetts made the list along with 13 of its 14 counties with Hampden County excluded, and 12 cities: Amherst; Boston; Cambridge; Chelsea; Concord; Holyoke; Lawrence; Newton; Northampton; Orleans; Somerville; and Springfield. Vermont and its cities of Burlington; Montpelier; and Winooski were listed as was Maine's Cumberland and Hancock counties and the city of Portland and the New Hampshire cities of Hanover and Lebanon. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
5 days ago
- Business
- Yahoo
Litigation, legislation, collaboration: Neronha outlines fix for R.I.'s broken health care system
Rhode Island Attorney General Peter Neronha answers reporters' questions on his new health care reform strategy during a press conference at his Providence office on Wednesday, May 28, 2025. (Photo by Alexander Castro/Rhode Island Current) Rhode Island Attorney General Peter Neronha took a break Wednesday from his breathless legal pursuit of President Donald Trump's administration to chase a different foe: pharmacy benefit managers, or PBMs. 'The cost of drugs is astounding,' Neronha told reporters gathered at his South Main Street office in Providence. 'Pharmacy benefit managers…operate in a very secretive and shrouded way…Because they have 80% of the market, they're able to use that market power to drive drug prices sky high and keep that difference.' A lawsuit filed Tuesday in Rhode Island Superior Court against three of the nation's biggest PBMs — CVS Caremark, Express Scripts, and OptumRx — is perhaps the sharpest prong among many in a sweeping plan to restructure the way Rhode Island funds health care unveiled Wednesday morning. All of the initiatives in Neronha's heavy slate of proposals are meant to remedy what Neronha called a 'spectacular failure' that has been years in the making. 'It was looming then,' Neronha said Wednesday of the state's health care crisis when he took office in 2019. 'It's here now.' In about 34 minutes of opening remarks, Neronha detailed his office's new list of efforts to effect major change, from boosting mediocre Medicaid reimbursement rates to filling absences in primary care practices. The entire plan is available on a new website, titled 'A Way Forward,' which went live during the press conference. The health care system in Rhode Island is so bad, Neronha offered, that even the state's largest hospital corporation doesn't want to buy hospitals here but instead shops for prospects in Massachusetts. Neronha cited Brown University Health's 2024 purchase of Saint Anne's Hospital in Fall River and Morton Hospital in Taunton. 'There are struggling hospitals right here in Rhode Island,' Neronha said. 'Why are they buying them in Massachusetts? Because the reimbursement rates are higher. It's always about the money. Don't let anyone convince you that it's not about the money.' The rollout of initiatives came a week after Neronha announced he secured an $11 million settlement with Barletta Heavy Division Inc., the Massachusetts contractor accused of dumping contaminated soil during construction of the Route 6/10 Interchange in Providence. Neronha steered most of the money toward dental care for children in low-income neighborhoods near the construction site. Unlike with multistate lawsuits where proceeds go directly to the state's general fund, the term-limited Neronha said his office had the authority to decide where the money goes. 'We really started rolling out what we're doing last week with the Barletta settlement,' Neronha said. 'The question was, 'What do we do with that money and how do we solve a problem?'…It became very clear to me that if we had this pot of money and we could use it to drive it back into those neighborhoods, to at least address that community problem and hope to solve it, then that action would make a difference.' After Neronha's monologue, seven of his staff attorneys came up to the podium one by one to describe the details of the AG's plan, including the PBM lawsuit, which targets the three companies who make up around 80% of the national market for managing insurers' prescription drug benefits for patients. 'The cost of drugs is benefit managers…operate in a very secretive and shrouded way…Because they have 80% of the market, they're able to use that market power to drive drug prices sky high and keep that difference. – Rhode Island Attorney General Peter Neronha The lengthy complaint alleges that PBMs extract billions in rebates while reimbursing pharmacies below cost. These shadowy maneuvers, the lawsuit claims, threaten the survival of independent pharmacies, deceive consumers, and inflate drug costs via intricate manipulation of pricing schemes. Sarah Rice, deputy chief of the office's civil division, told reporters that PBMs will demand manufacturers offer rebates on certain drugs if they wish to be distributed through PBMs' networks. That leads manufacturers to increase prices, and PBMs then shave a little off the top by taking a portion of the rebate, according to Rice. 'The health plans pay more, and consumers pay more,' Rice said. 'All of this is set out in much better detail in the complaint, if you are ready to read over 200 paragraphs of allegations.' The complaint was filed under state laws on deceptive trade practices, Rice said, 'Because this behavior is harmful to consumers. It has a direct pocketbook effect to any consumer that has a deductible or co-insurance when they go to the pharmacy, which is most of us.' The suit also identifies three group purchasing organizations (GPOs) — Zinc Health Services, Ascent Health Services, and Emisar Pharma Services — as defendants. PBMs use their organizations to aggregate their purchasing power for pharmaceuticals — a more recent development as benefit managers usually had 'enormous bargaining power on their own,' the lawsuit explains. 'It appears PBMs use GPOs to recategorize existing income streams and generate new income streams,' the lawsuit reads. 'GPOs also serve as an additional, non-transparent layer in an already opaque system, making it even more difficult for health benefit plans to determine whether they received their fair share of rebates.' Neronha's office is seeking injunctive relief, civil penalties, and full restitution for affected patients and pharmacies. The complaint aligns Rhode Island with a growing cohort of states, including Ohio, Arkansas, and Mississippi, that have started legal battles with PBMs for pricing tactics or rebate sleights-of-hand. CVS spokesperson Amy Thibault defended the Woonsocket-based company against the lawsuit's claims in a statement Wednesday. 'It's surprising and unfortunate that Rhode Island's attorney general would use biased and incorrect assertions about our industry to needlessly attack a hometown company,' Thibault wrote. 'CVS Health contributes nearly $3 billion of positive economic activity in Rhode Island each year, and we employ more than 7,000 colleagues across the state.' Thibault said CVS saved customers nationwide over $40 billion last year, with members paying under $8 on average for a 30-day prescription. She also cited an increase in independent pharmacies over the past six years, which the company says are reimbursed at higher rates than CVS stores, including its 62 Rhode Island locations. Neronha's plans include support in three major areas of legislation, including some bills he hopes will pass before the legislative session ends next month. Most prominent in the AG's machinations is a reevaluation of Medicaid rates, illustrated by a presentation slide at the press conference. A hypothetical Medicare reimbursement may pay a provider $100, the slide showed. A commercial insurer might reimburse the provider at $200 for the same service, but Medicaid might only pay $37 — a problem in a state where Medicaid factors heavily into the payer mix, or makeup of different insurance types among the population. About 70% of Rhode Islanders are on public insurance, either Medicare or Medicaid, according to a report accompanying Neronha's action plan. That's why Neronha is supporting H6373, sponsored by Exeter Democratic Rep. Megan Cotter, which would immediately increase Medicaid payment rates to be on par with Medicare payments. The bill was introduced and referred to the House Committee on Finance on Wednesday. Retooling the reimbursement rates would conservatively cost $50 million, Neronha said. 'We can find it in our state government, a $14.2 billion budget,' Neronha said. A year to the day ago, Neronha argued passionately to save the state's safety net hospitals to a who's who of lawmakers and health care leaders at a Rhode Island State House health care summit. On Wednesday, Neronha reiterated several of the same points, and said that the lamentable case of Rhode Island's two safety net hospitals — Our Lady of Fatima and Roger Williams Medical Center — taught him valuable lessons in how reimbursement rates work. It's surprising and unfortunate that Rhode Island's attorney general would use biased and incorrect assertions about our industry to needlessly attack a hometown company. – CVS spokesperson Amy Thibault 'That's where I learned that there's a problem in health care, a structural problem that's going on here,' Neronha said. 'And what is it? Our reimbursements are too low. They're too low in Medicare, they're too low in Medicaid, they're too low in commercial.' The hospitals remain in a purgatory of ownership, with the finalization of the two properties' transfer from Prospect Medical Holdings to new owner Centurion Foundation still incomplete as of Wednesday. Also on Wednesday, Gov. Dan McKee submitted a budget amendment that would infuse $4.3 million in state money for a 21-bed long-term behavioral health care inpatient unit at Fatima. Hoping to preempt similar situations, one of Neronha's more assertive proposals would let his office petition Superior Court to place financially distressed or poorly run hospitals, especially those under private ownership, into receivership. The corresponding bill is H6369, sponsored by Rep. Susan Donovan, a Bristol Democrat. On Wednesday, it was introduced and referred to the House Committee on Judiciary. 'This is something, frankly, that we talked about with Prospect before we got to where we are today,' Neronha said. To complement that legislation, Neronha is proposing a regulation that would require Rhode Island-based medical groups to notify the AG's office of any acquisition or restructuring involving private equity or the consolidation of large practices. A public hearing on the proposed rule is scheduled for July 8. 'One thing that we know we don't know is the level of private equity intrusion into the health care market outside of hospital systems,' Neronha said. 'We have great insight into hospital systems because of our regulatory authority over hospital systems, but not into health care practices, and we believe that we need to know so we can head off any problems.' Neronha wants to almost universally eliminate prior authorization processes for primary care providers, except for certain controlled substances or in documented cases of physician fraud, via bill H6317 sponsored by Rep. Mia Ackerman, a Cumberland Democrat. The bill was introduced and referred to the House Committee on Health and Human Services on May 9, and is still waiting for a hearing date. Prior authorization acts as a lever on insurance claims and is meant to help insurers contain unnecessary costs, but it has also been criticized as an example of payer overreach and a seriously demanding time constraint on already overworked physicians. Jordan Broadbent, the office's insurance advocate, told reporters the move to abolish prior authorization is 'bold legislation' and would make Rhode Island a national leader should it pass. Backing Neronha's claims are two reports — one focused on the past, the other on the future. The Statewide Health Care Capacity Assessment features the retrospective data and was compiled by the consulting firm Health Management Associates, who found deep gaps in primary care access and coverage, wobbly long-term financing across different kinds of providers, and understaffed and overworked emergency departments. According to the report, there are roughly 100,000 Rhode Island adults without a primary care provider, an ongoing issue recently exacerbated by the impending closure of Anchor Medical Associates' remaining offices. The report also found poor outcomes for nursing homes, which boast a closure rate twice the national average. An additional nursing home closed shortly after the report was being prepared last summer, said Dorothea Lindquist, health care senior litigation attorney at the AG's office. Lindquist also noted that four providers of Medicare Advantage plans in Rhode Island — which account for over 56% of Medicare enrollees statewide — have not raised their post-acute care reimbursement rates in a decade. 'This finding should be terrifying to everyone in Rhode Island who plans to find themselves aging here,' said Lindquist. Another policy brief included in the AG's package comes from the Collaborative for Health Policy and Reform Analysis (CAHPR) at the Brown University School of Public Health. The dossier reinforces load-bearing planks in Neronha's plans, including enhanced regulatory authority over health care transactions and expansion of primary care access. 'The proposals vary in scope, legal complexity, and political feasibility, but each offers a potential pathway for meaningful reform,' according to the brief, which discusses a state-based, single-payer plan, a comprehensive public option, pricing parity for Medicaid reimbursements and widening the state's drug purchasing pool beyond state employee coverage. The Brown collaborative's recommendations and Neronha's stratagems differ from those outlined in a primary care stabilization strategy recently announced by Gov. Dan McKee, which emphasized more gradual reform via existing regulatory mechanisms and a future review of Medicaid rates. Neronha called McKee's April 29 announcement of a long-term primary care strategy 'slapdash,' and the attorney general's plan is contrastingly nimble, in his own evaluation. 'Everything we're gonna roll out today is action we believe will make a difference,' Neronha said. The complete set of initiatives included in Neronha's wishlist, as listed in a press release from his office: File suit against the three largest Pharmacy Benefit Managers (PBMs) in the country to protect Rhode Island consumers from unfair and deceptive conduct that has caused drug prices to skyrocket; Introduce legislation to immediately raise Medicaid reimbursement rates to 100% of Medicare rates for primary care providers; Introduce legislation to immediately eliminate nearly 100% of prior authorization requirements for primary care providers; Introduce legislation authorizing the Attorney General to petition the Superior Court to place a hospital into receivership if the facility becomes financially unstable; Issue proposed regulations to require pre-merger notification of certain material corporate transactions involving medical practice groups, including transactions involving private equity firms; Issue an advanced notice of proposed rulemaking regarding market oversight of artificial intelligence (AI); Collaborate with the Brown University School of Public Health Center for Advancing Health Policy Through Research (CAHPR) to examine potential policy options for state-based health system reform; and Plan for a new state health care agency to obtain and analyze healthcare data, and inform innovative and effective governmental health care decision-making. 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Yahoo
5 days ago
- Business
- Yahoo
Shelter beds at risk in R.I. if state doesn't fill housing budget gap, advocates warn
Mia Negron, 2, sits atop her father Luis' shoulders at a State House rally on May 27, 2025. The family became unhoused when Mia was an infant in 2023. (Photo by Christopher Shea/Rhode Island Current) Luis Negron stood in the State House rotunda Tuesday afternoon among a crowd of 250 with his 2-year-old daughter Mia atop his shoulders holding a sign that said 'shelter was my lifeline.' Negron said that two years ago he, his partner, and then 3-month old daughter were evicted from their apartment and had to sleep in their car. 'We didn't know what to do,' he said in an interview inside the State House. They eventually connected with the Providence-based social service organization Amos House which got them into a shelter. Now his family lives in permanent supportive housing. Advocates fear Rhode Island's unhoused community could lose such critical lifelines if lawmakers fail to address a $17.8 million budget shortfall for homelessness services as they finalize the fiscal 2026 budget. Which is why Negron and his family were at the State House Tuesday afternoon, joining others in urging state leaders to fill that gap. 'Unfortunately, there's not enough money for everything that has to happen in our state,' Eileen Hayes, CEO of the Providence social service organization Amos House, told the crowd. 'But people whose lives are at risk should not be the ones that have to forfeit their needs.' Federal pandemic money has allowed Rhode Island to more than double its number of shelter beds since 2020, but with that funding now gone, advocates fear as many as 926 beds could be lost statewide. 'We need shelter beds to stay open while we build affordable housing for all,' Hayes said. According to the state, advocates' projections rely on outdated numbers. Rhode Island Department of Housing spokesperson Emily Marshall pointed to a request for proposals for homeless service providers issued by the state on May 7 which 'anticipates provider savings' which would reduce the number of beds that may have to come offline should the state not plug the department's budget. Marshall did not immediately provide an estimate on how many shelter beds the state would have to reduce. 'We remain committed to maintaining emergency shelter access within available funding while strategically investing in long-term solutions like affordable and permanent supportive housing,' Marshall said in an email Tuesday. The state's shelter dashboard notes a total of 1,514 beds available across the entire state, with 181 unused as of May 23. Advocates are urging state lawmakers to consider new taxes to help cover provider costs, including a tax on second homes, a higher real estate conveyance tax on property sales over $800,000, and increased income contributions from the state's highest earners. They are also calling on the General Assembly to approve Gov. Dan McKee's budget proposal to fund shelter beds by extending the state's 5% hotel tax to include short-term rental homes. McKee's recommended fiscal year 2026 budget calls on the state to eliminate the exemption whole-home short-term rentals have from the state's 5% hotel tax starting Jan. 1, 2026. The governor projects an annual revenue of roughly $5 million. Advocates supported a similar proposal McKee introduced as a budget amendment in 2024, but the General Assembly ultimately replaced it with its own $46 million plan which relied on remaining pandemic relief aid. The governor's plan also faced competition from municipalities that have historically received a quarter of the revenue from the state's hotel tax. Municipal interests are again vying for that expanded share of the fiscal pie. Legislation introduced by Sen. Matthew LaMountain, a Warwick Democrat, would maintain that existing split to towns, if McKee's proposal is approved. Rep. Lauren Carson, a Newport Democrat who chairs a legislative panel studying short-term rentals, has again proposed returning all of the revenue generated by a hotel tax on short-term rental houses exclusively for municipal infrastructure. 'If we don't have infrastructure and the stormwater not running and toilets not working, then the tourists ain't coming,' she said in an interview. And the potential tax revenue could always go toward funding homeless services, Carson said, it would just be up to the municipalities rather than the state. 'Newport is perfectly qualified to make decisions on homeless shelters and how to assist homeless people,' she said. Keeping housing decisions local is a preference of the Rhode Island League of Cities and Towns, whose executive director said a cookie-cutter approach will not work with each municipality. 'Not one of my 39 communities are all the same, they're all unique,' Randy Rossi, executive director of the league, said in an interview. 'What Burrillville might need, Westerly may need something completely different.' Kimberly Simmons, executive director for the Rhode Island Coalition to End Homelessness, said she would prefer any potential revenue from the tax expansion end up in state coffers. 'The state has the ability to get it out evenly,' Simmons said in an interview. Carson's bill was heard before the House Committee on Finance on May 13 where it was held for further study, as is standard procedure for an initial vetting by a legislative panel. Companion legislation sponsored by Sen. Victoria Gu, a Westerly Democrat, was held by the Senate Committee on Finance on March 4. House Speaker K. Joseph Sheakrchi has not taken any official stance, but said he will continue to prioritize addressing homelessness in the final budget. 'In recent years, the General Assembly has gone above and beyond the Governor's budget requests for homeless assistance,' he said in a statement. 'Despite an extremely challenging budget year, homelessness will remain a priority of the legislature.' At least 2,442 unhoused people across Rhode Island were counted when volunteers conducted an annual survey in late January 2024 — up 35% from the 2023 count. The coalition conducted the annual Point-In-Time count for the U.S. Department of Housing and Urban Development this year on Jan. 28, but results aren't expected to be released until some time in the summer. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
6 days ago
- Business
- Yahoo
Shelter beds at risk in R.I. if state doesn't fill housing budget gap, advocates warn
Mia Negron, 2, sits atop her father Luis' shoulders at a State House rally on May 27, 2025. The family became unhoused when Mia was an infant in 2023. (Photo by Christopher Shea/Rhode Island Current) Luis Negron stood in the State House rotunda Tuesday afternoon among a crowd of 250 with his 2-year-old daughter Mia atop his shoulders holding a sign that said 'shelter was my lifeline.' Negron said that two years ago he, his partner, and then 3-month old daughter were evicted from their apartment and had to sleep in their car. 'We didn't know what to do,' he said in an interview inside the State House. They eventually connected with the Providence-based social service organization Amos House which got them into a shelter. Now his family lives in permanent supportive housing. Advocates fear Rhode Island's unhoused community could lose such critical lifelines if lawmakers fail to address a $17.8 million budget shortfall for homelessness services as they finalize the fiscal 2026 budget. Which is why Negron and his family were at the State House Tuesday afternoon, joining others in urging state leaders to fill that gap. 'Unfortunately, there's not enough money for everything that has to happen in our state,' Eileen Hayes, CEO of the Providence social service organization Amos House, told the crowd. 'But people whose lives are at risk should not be the ones that have to forfeit their needs.' Federal pandemic money has allowed Rhode Island to more than double its number of shelter beds since 2020, but with that funding now gone, advocates fear as many as 926 beds could be lost statewide. 'We need shelter beds to stay open while we build affordable housing for all,' Hayes said. According to the state, advocates' projections rely on outdated numbers. Rhode Island Department of Housing spokesperson Emily Marshall pointed to a request for proposals for homeless service providers issued by the state on May 7 which 'anticipates provider savings' which would reduce the number of beds that may have to come offline should the state not plug the department's budget. Marshall did not immediately provide an estimate on how many shelter beds the state would have to reduce. 'We remain committed to maintaining emergency shelter access within available funding while strategically investing in long-term solutions like affordable and permanent supportive housing,' Marshall said in an email Tuesday. The state's shelter dashboard notes a total of 1,514 beds available across the entire state, with 181 unused as of May 23. Advocates are urging state lawmakers to consider new taxes to help cover provider costs, including a tax on second homes, a higher real estate conveyance tax on property sales over $800,000, and increased income contributions from the state's highest earners. They are also calling on the General Assembly to approve Gov. Dan McKee's budget proposal to fund shelter beds by extending the state's 5% hotel tax to include short-term rental homes. McKee's recommended fiscal year 2026 budget calls on the state to eliminate the exemption whole-home short-term rentals have from the state's 5% hotel tax starting Jan. 1, 2026. The governor projects an annual revenue of roughly $5 million. Advocates supported a similar proposal McKee introduced as a budget amendment in 2024, but the General Assembly ultimately replaced it with its own $46 million plan which relied on remaining pandemic relief aid. The governor's plan also faced competition from municipalities that have historically received a quarter of the revenue from the state's hotel tax. Municipal interests are again vying for that expanded share of the fiscal pie. Legislation introduced by Sen. Matthew LaMountain, a Warwick Democrat, would maintain that existing split to towns, if McKee's proposal is approved. Rep. Lauren Carson, a Newport Democrat who chairs a legislative panel studying short-term rentals, has again proposed returning all of the revenue generated by a hotel tax on short-term rental houses exclusively for municipal infrastructure. 'If we don't have infrastructure and the stormwater not running and toilets not working, then the tourists ain't coming,' she said in an interview. And the potential tax revenue could always go toward funding homeless services, Carson said, it would just be up to the municipalities rather than the state. 'Newport is perfectly qualified to make decisions on homeless shelters and how to assist homeless people,' she said. Keeping housing decisions local is a preference of the Rhode Island League of Cities and Towns, whose executive director said a cookie-cutter approach will not work with each municipality. 'Not one of my 39 communities are all the same, they're all unique,' Randy Rossi, executive director of the league, said in an interview. 'What Burrillville might need, Westerly may need something completely different.' Kimberly Simmons, executive director for the Rhode Island Coalition to End Homelessness, said she would prefer any potential revenue from the tax expansion end up in state coffers. 'The state has the ability to get it out evenly,' Simmons said in an interview. Carson's bill was heard before the House Committee on Finance on May 13 where it was held for further study, as is standard procedure for an initial vetting by a legislative panel. Companion legislation sponsored by Sen. Victoria Gu, a Westerly Democrat, was held by the Senate Committee on Finance on March 4. House Speaker K. Joseph Sheakrchi has not taken any official stance, but said he will continue to prioritize addressing homelessness in the final budget. 'In recent years, the General Assembly has gone above and beyond the Governor's budget requests for homeless assistance,' he said in a statement. 'Despite an extremely challenging budget year, homelessness will remain a priority of the legislature.' At least 2,442 unhoused people across Rhode Island were counted when volunteers conducted an annual survey in late January 2024 — up 35% from the 2023 count. The coalition conducted the annual Point-In-Time count for the U.S. Department of Housing and Urban Development this year on Jan. 28, but results aren't expected to be released until some time in the summer. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
