2026 -- H 7251

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LC003654

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

     Introduced By: Representatives Chippendale, Nardone, Place, Santucci, Paplauskas, J.
Brien, Quattrocchi, Hopkins, and Fascia

     Date Introduced: January 21, 2026

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 35-3 of the General Laws entitled "State Budget" is hereby amended

by adding thereto the following section:

     35-3-28. State spending growth limit.

     (a) Definitions. For purposes of this section:

     (1) "State spending" means the total amount of appropriations authorized by the general

assembly from all sources of revenue in the annual state budget.

     (2) "Inflation rate" means the percentage change in the Consumer Price Index for All Urban

Consumers (CPI-U) for the most recent calendar year, as published by the U.S. Bureau of Labor

Statistics.

     (3) "Personal income growth rate" means the percentage change in Rhode Island personal

income for the most recent calendar year, as published by the U.S. Bureau of Economic Analysis

or other reliable source designated by the director of administration.

     (b) Spending growth limit. The total state spending authorized by the general assembly for

any fiscal year shall not exceed the total state spending authorized for the previous fiscal year

increased by the greater of:

     (1) The inflation rate for the most recent calendar year; or

     (2) The personal income growth rate for the most recent calendar year.

     (c) Exceptions. The spending limit set forth in subsection (b) of this section shall not apply

to:

     (1) Expenditures for debt service payments or retirement of principal on bonds;

     (2) Federal funds received by the state and required to be spent under federal law;

     (3) Emergency expenditures declared by the governor and approved by a two-thirds (2/3)

vote of the general assembly; and

     (4) Any other exceptions as the general assembly may prescribe by law.

     (d) Reporting. The director of administration shall annually publish a report comparing

actual state spending growth with the limits set forth in this section and submit it to the governor

and the general assembly.

     (e) Enforcement. If the general assembly authorizes spending that exceeds the limits in

subsection (b) of this section, the governor shall provide a plan to reduce expenditures in the

following fiscal year to comply with the limits.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

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     This act would limit growth in state spending from exceeding the amount of growth in

inflation or personal income growth, whichever is greater.

     This act would take effect upon passage.

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