Proposal to transfer RISLA funds to general revenue to shore up dual‑enrollment program presented to finance panel

The House Committee on Finance heard a proposal to transfer funds from the Rhode Island Student Loan Authority (RISLA) to state general revenues to support the dual and concurrent enrollment program for high‑school students.

Bridal Daniels, director of the Office of Management and Budget, described a proposed transfer of $5,600,000 (across fiscal 2025 revised and fiscal 2026) from RISLA to cover dual and concurrent enrollment support at the governor's recommended funding level. "We have 1 example today that you heard. $5,600,000 requested from the student loan authority, in both fiscal year 25 and '26," Daniels said, explaining the administration's approach to using operating transfers to help close budget gaps while aligning funds to programs.

Daniels and other witnesses said dual and concurrent enrollment allows high‑school students to earn college credit at no cost to the student and that recent program spending has exceeded available appropriations. Testimony noted more than 6,000 students were served by the program in fiscal 2024 and that the authority had previously supplied federal‑program reserves; those reserves have declined and the administration proposes the RISLA transfer while the Office of the Postsecondary Commissioner completes a program evaluation.

Charles Kelly, executive director of the Rhode Island Student Loan Authority, said RISLA supports dual‑enrollment goals and that the authority had the capacity to provide the requested transfer in the near term. "We contribute about $800,000 a year, to that operation to provide free financial aid counseling," Kelly said, and he told the committee RISLA's unrestricted fund balance at the end of fiscal 2024 was $81,300,000. Kelly added that RISLA's bond documents and investor disclosures mean transfers are scrutinized by prospective investors because the authority issues bonds not backed by the state.

Noel Simpson, senior deputy director at RISLA, told the committee federal changes under discussion in Washington could reduce federal loan availability for certain borrower groups and that RISLA may need to expand services if federal programs change. "If the fed cuts back on their federal loan programs and push these back to the state, we're gonna have to step up and increase our ability to lend money particularly to parents," Simpson said.

Why this matters: the transfer would substitute RISLA reserves for federal or quasi‑public funding that previously supported dual and concurrent enrollment and would temporarily align those program costs to general revenue. Officials said the transfer is intended to be a bridge while a postsecondary commissioner study of higher‑education affordability and program effectiveness is completed.

Ending: RISLA executives said they could provide the funds in the short term but warned that repeated transfers would affect the authority's bond‑offering profile and long‑term sustainability; the committee did not record a vote in the provided transcript.