Five Questions With: Marilyn Shannon McConaghy

Marilyn Shannon McConaghy is the state’s acting director of the Department of Revenue. Previously working as DOR administrative and legal support services administrator, McConaghy took over at the helm after David M. Sullivan, former tax administrator and acting director of the DOR, left for the private sector last month.

Marilyn Shannon McConaghy is the state’s acting director of the Department of Revenue.
Previously working as DOR administrative and legal support services administrator, McConaghy took over at the helm after David M. Sullivan, former tax administrator and acting director of the DOR, left for the private sector last month.
McConaghy talks with Providence Business News about revenues, tax changes and what to expect in 2016.

PBN: What are the department’s priorities for 2016?
McCONAGHY:
The department has responsibility for many of the core functions of state government. Much of the revenue collected and disbursed by the state flows through the department and its various divisions. The department of revenue helps state policymakers make decisions on how to allocate those funds in the best interests of Rhode Islanders and disburses to state and municipal agencies the funds needed to serve residents, businesses and institutions. With that in mind, the overarching goal is to administer the department’s programs and execute laws and regulations in a fair and efficient manner. We’re keeping a close eye on revenues, making customer service improvements at the Division of Motor Vehicles and increasing outreach to taxpayers and tax professionals to make sure they are aware of rules taking effect in 2016.
PBN: What’s your assessment of the effect on state gaming revenues from the opening of Plainridge Park Casino?
McCONAGHY:
While we’ve seen a reduction in revenue from Twin River since the first gambling facility opened in Massachusetts, the drop thus far has been significantly less than expected. We’re encouraged by the ability of Twin River’s management to adapt to the changing marketplace.
PBN: What’s the status of the DMV computer upgrade?
McCONAGHY:
The division and contractor Hewlett-Packard Enterprise are making measurable progress on the new computer system. The programming teams now write and test software code in short “sprints,” which speeds up the process of building the system. The system is now approximately 70 percent complete and we’re progressing toward a September 2016 launch date.
PBN: What changes are ahead in 2016 for the state’s taxpayers?
McCONAGHY:
Governor [Gina M.] Raimondo and the General Assembly approved a number of tax law changes that take effect for the 2016 tax year and are intended to ease the financial burden on corporations and individuals. Among the changes are: the annual corporate minimum tax will drop by 10 percent, to $450; the earned income tax credit – a tax break for the working poor – will increase from 10 percent to 12.5 percent of the federal credit and remain fully refundable; and, certain Social Security beneficiaries who have reached full retirement age will pay no Rhode Island income tax on their Social Security benefits for 2016 and later tax years.
PBN: What’s the fiscal position of the state at the beginning of 2016?
McCONAGHY:
The state finds itself in a better financial position than when the current fiscal year started July 1. The November 2015 Revenue Estimating Conference revised fiscal year 2016 revenues up by $52.4 million over the enacted fiscal year 2016 general revenues. Meanwhile, the fiscal year 2015 closing showed that the carry-forward surplus from that fiscal year was larger than what was included in the fiscal year 2016 enacted budget. Revenue collections are running ahead of projections, which could give Governor Raimondo and the General Assembly more flexibility in dealing with Rhode Island’s many financial challenges.

No posts to display