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Legislators stress budget limits, urge ARPA spending and consider returning 5% local revenue

Newport City Council workshop · January 11, 2025
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Summary

Senate and House members told Newport leaders the state budget faces structural deficits and urged careful use of one‑time ARPA funds; several legislators discussed bills to return a 5% share of certain taxes back to the municipalities where collected.

State legislators told Newport officials the budget outlook is constrained and urged the city to plan ARPA and one‑time spending carefully.

A chair of the Senate finance committee described a structural deficit and reminded municipal officials that “one‑time money” such as ARPA should be spent by the end of calendar 2026 to avoid future exposure. Several lawmakers discussed competing proposals to return a portion (commonly described in the meeting as 5%) of locally generated tax revenue back to the municipalities that produced it. One lawmaker said they had a bill last year aimed at restoring that portion to the collecting community for housing, infrastructure and resilience and encouraged Newport to consider a resolution of support.

Legislators warned that while the state can and does provide targeted grants (for example to warming centers and resiliency projects), municipalities also increase leverage when local officials appear in Providence and present clear, prioritized needs during budget hearings. No budget appropriation was made at the workshop; lawmakers urged continued local advocacy and promised to pursue the 5% return or similar measures in their chamber where possible.