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Commerce board adopts $66.3 million FY25 budget and approves conservative investment plan
Summary
The Rhode Island Commerce Corporation board adopted a $66.3 million FY25 operating budget and discussed a conservative investment strategy to deploy cash balances, emphasizing reduced ARPA funding and several federal grant components; staff will provide a follow-up report on obligated but unspent funds.
The Rhode Island Commerce Corporation board voted to adopt a $66,300,000 fiscal year 2025 operating budget and discussed a parallel request to implement a conservative investment portfolio strategy for the corporation's cash balances.
Justin Mederas (speaker 5) presented the budget and outlined four primary revenue sources: state general revenue, hotel tax revenue, federal awards/grants, and other corporation-generated revenue. He told the board that federal funding flowing through the corporation in FY25 includes roughly $2,000,000 for a hospitality/tourism placemaking program, $1,600,000 for the Small Business Opportunity Program (SBOP) tied to SSBCI technical assistance, and about $1,100,000 from several U.S. Small Business Administration grants and CCP awards. "This year's annual, $66,300,000 budget is funded by four main sources," Mederas said.
Mederas also highlighted a significant year-over-year decline in ARPA-related funding (about $80,400,000) and a reduction in some economic program appropriations. He said operating expenses are projected to rise modestly (about $1.5 million), largely to fund newly hired or filled roles. On investment strategy, he outlined three low-risk options for deploying cash: the Ocean State Investment Pool (OSIP), a treasury-laddering approach, and an insured cash sweep (ICS) that expands FDIC insurance coverage across partner banks. "The goal will ultimately be to earn the best rate of return on the cash balances that are currently being held in our bank checking accounts," he said.
During discussion Chair (speaker 2) requested a supplemental analysis showing what appropriations have been obligated but remain unspent and asked staff to identify how those balances might be redirected into new projects that create jobs. The board moved and approved the budget by voice vote; staff committed to provide the requested obligated/unspent report and to return any documentation required for the investment strategy implementation.
