Rhode Island - Public finance

The annual budget is prepared by the State Budget Office in conjunction with the governor, and submitted to the legislature for approval. The fiscal year runs from 1 July to 30 June.

The 2000/01 Rhode Island budget increased by 1.9% from 2000, to $4.7 billion. Resources totaled $2.3 billion; a budgetary shortfall was forecast for the year, increasing the already high recurring state debt. A Capital Improvement Plan for 2000/01–2005 focuses on reducing the debt from $1.8 billion to $1.65 billion. Nevertheless, increases in funding for education, public safety, and the environment were scheduled for 2001. In 2000/01, general fund revenues reached $2.533 billion, sufficient to cover expenditures of $2.483 billion. The starting balance for 2001/02, at $92 million in 2000/01, had increased to $131 million. General fund revenues in 2002/03, however, were almost $50 million less than expenditures. The government made cuts in the budget after it was enacted totaling $1.4 million to cover the gap and also secured its tobacco settlement proceeds to obtain immediate cash. In 2002/03, Rhode Island's budget deficit was estimated at $300 million or about 11.2% for the state budget, but projections for 2003/04 were for a deficit to fall to a more manageable 3.8% to 4.9% of the state budget.

The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.