DEM seeks to hold FY26 spending steady; governor proposes ending paint stewardship program

Director Terry Gray and senior DEM staff told the Senate Finance Committee the governor’s FY26 proposal is largely a current‑services budget that preserves recent staffing gains after three years of investment and voter‑backed green bonds.

Gray noted DEM has added 36 FTEs over the past three years and continues capital work at Galilee, Roger Wheeler State Beach and Burlingame Campground. DEM said roughly 28% of its budget is federal grants and the department is working to tighten grant management and billing to reduce exposure to federal funding changes.

Forestry, wildfire and parks: DEM highlighted recent investments in forestry and the department’s wildfire program, which currently has five FTEs. Staff said climate change, drought and rising wildfire risk require additional capacity, training and interagency coordination. DEM also said it shifted 12 seasonal park positions into permanent FTEs to respond to a national decline in seasonal workers.

IT modernization: DEM described progress digitizing permit and licensing workflows, including online agriculture and forestry licenses and an upcoming online permitting portal for Office of Water Resources permits (about 80% of DEP permits). The department said the new systems will enable real‑time performance measures such as permit turnaround time.

Paint stewardship proposal: Gray said the governor’s budget proposes discontinuing the statutory paint stewardship assessment and PaintCare recycling program, citing competitive concerns for Rhode Island retailers (Massachusetts lacks an equivalent assessment) and questions about program governance. DEM also said PaintCare operates under a producer responsibility model with one contractor and that there is limited statutory requirement for competitive rebidding or periodic work‑plan renewal. Industry representatives told the committee the program has diverted more than 750,000 gallons of paint from landfills and argued the program is broadly supported by retailers and municipalities; DEM and PaintCare differ on reserve levels and oversight mechanisms.

Underground storage tank trust transfer: Senators asked about a $3 million transfer from the underground storage tank financial assurance fund; DEM explained the fund acts like a pooled insurance mechanism funded by a portion of the gas tax and said current balances have grown because releases and reimbursements have declined.

Legislative requests and bills: DEM staff and the director discussed several agriculture and forestry bills later in the hearing — including proposals to establish a restricted receipt account for agricultural fees and to add forestry positions to support wildfire prevention; these votes and separate public testimony are recorded elsewhere in the hearing.

Next steps: DEM said it would provide more detailed permitting performance metrics when the new permitting portal is live and was open to working with the committee on PaintCare governance questions; industry witnesses asked the committee to consider adjusting, not terminating, the program.

Quoted speakers in the article are in the speaker registry below and match direct statements made in committee testimony.