Bill > H5533

This bill reinstates general revenue sharing of state aid among the 39 cities and towns in Rhode Island after a period of reduced or suspended funding. Specifically, the bill establishes that for the fiscal year ending June 30, 2026, $39 million will be distributed among these municipalities based on population data from the 2020 census. In subsequent fiscal years, the total aid amount will be automatically increased annually by the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U), which is a standard measure of inflation that tracks the average change in prices paid by urban consumers for goods and services. This provides a predictable and inflation-adjusted funding mechanism for local governments, helping to ensure that municipal aid keeps pace with economic changes. The bill amends an existing state law governing state aid to cities and towns, and will take effect immediately upon passage by the Rhode Island General Assembly.

Budget and Finance

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