RIPEC: Surplus could boost economic development

PROVIDENCE – Thanks largely to general revenue exceeding estimates and state agencies spending under budget in fiscal 2015, Rhode Island has a surplus for the year that is $47.8 million larger than anticipated, bringing the total surplus for the year to $166.4 million, according to the Rhode Island Public Expenditure Council.

The nonprofit researcher of public policy recommends state lawmakers use the excess funds for one-time economic-development projects, financially vulnerable state agencies or the state’s rainy day fund.

RIPEC released its analysis of the unaudited fiscal 2015 budget last week. After accounting for an approximate $1.4 million transfer to the state’s rainy day fund, it estimates the total extra surplus available for fiscal 2016 is $46.4 million.

For economic development, RIPEC says the state should reinvest the money into infrastructure projects, such as road or bridge work. Lawmakers are currently mulling over Gov. Gina M. Raimondo’s major infrastructure plan called RhodeWorks. •

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