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.
($000) | PERCENT | PER CAPITA | |
Population (thousands, 2001) | 1,060 | (X) | (X) |
Total Revenue | 5,483,128 | 100.00 | 5,172.76 |
General revenue | 4,764,967 | 86.90 | 4,495.25 |
Utility revenue | 12,100 | 0.22 | 11.42 |
Liquor store revenue | – | – | – |
Insurance trust revenue | 706,061 | 12.88 | 666.10 |
Exhibit: Salaries and wages | 858,053 | 16.04 | 809.48 |
Total expenditure | 5,350,551 | 100.00 | 5,047.69 |
General expenditure | 4,652,841 | 86.96 | 4,389.47 |
Education | 1,346,644 | 25.17 | 1,270.42 |
Public welfare | 1,393,687 | 26.05 | 1,314.80 |
Hospitals | 135,791 | 2.54 | 128.10 |
Health | 137,275 | 2.57 | 129.50 |
Highways | 249,291 | 4.66 | 235.18 |
Police protection | 46,948 | 0.88 | 44.29 |
Correction | 151,172 | 2.83 | 142.62 |
Natural resources | 42,338 | 0.79 | 39.94 |
Parks and recreation | 39,170 | 0.73 | 36.95 |
Government administration | 274,822 | 5.14 | 259.27 |
Interest on general debt | 355,701 | 6.65 | 335.57 |
Other and unallocable | 480,002 | 8.97 | 452.83 |
Utility expenditure | 77,421 | 1.45 | 73.04 |
Liquor store expenditure | – | – | – |
Insurance trust expenditure | 620,289 | 11.59 | 585.18 |
Debt at end of fiscal year | 5,832,702 | 100.00 | 5,502.55 |
Cash and security holdings | 12,021,798 | 100.00 | 11,341.32 |