AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET (Limits growth in state spending from exceeding the amount of growth in inflation or personal income growth, whichever is greater.)

H7251

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:
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SECTION 1. Chapter 35-3 of the General Laws entitled "State Budget" is hereby amended
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by adding thereto the following section:
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35-3-28. State spending growth limit.

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(a) Definitions. For purposes of this section:
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(1) "State spending" means the total amount of appropriations authorized by the general
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assembly from all sources of revenue in the annual state budget.
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(2) "Inflation rate" means the percentage change in the Consumer Price Index for All Urban
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Consumers (CPI-U) for the most recent calendar year, as published by the U.S. Bureau of Labor
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Statistics.
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(3) "Personal income growth rate" means the percentage change in Rhode Island personal
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income for the most recent calendar year, as published by the U.S. Bureau of Economic Analysis
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or other reliable source designated by the director of administration.
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(b) Spending growth limit. The total state spending authorized by the general assembly for
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any fiscal year shall not exceed the total state spending authorized for the previous fiscal year
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increased by the greater of:
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(1) The inflation rate for the most recent calendar year; or
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(2) The personal income growth rate for the most recent calendar year.
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(c) Exceptions. The spending limit set forth in subsection (b) of this section shall not apply
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to:

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(1) Expenditures for debt service payments or retirement of principal on bonds;
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(2) Federal funds received by the state and required to be spent under federal law;
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(3) Emergency expenditures declared by the governor and approved by a two-thirds (2/3)
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vote of the general assembly; and
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(4) Any other exceptions as the general assembly may prescribe by law.
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(d) Reporting. The director of administration shall annually publish a report comparing
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actual state spending growth with the limits set forth in this section and submit it to the governor
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and the general assembly.
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(e) Enforcement. If the general assembly authorizes spending that exceeds the limits in
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subsection (b) of this section, the governor shall provide a plan to reduce expenditures in the
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following fiscal year to comply with the limits.
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SECTION 2. This act shall take effect upon passage.
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LC003654
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LC003654 - Page 2 of 3
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
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inflation or personal income growth, whichever is greater.
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This act would take effect upon passage.
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LC003654
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LC003654 - Page 3 of 3