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HB 7250

AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET

2026 Regular Session Introduced by Mike Chippendale and 7 co-sponsors

Imposes a general state budget cap equal to the greater of five-year personal income growth or CPI inflation.

04/29/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7250

Summary of HB 7250 (Rhode Island, 2026)

Title

AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET

Purpose and Intent

This bill would reshape annual state budgeting by imposing a spending cap on general budget expenditures. The cap is tied to either the five-year average growth in personal income or the annual increase in the Consumer Price Index (CPI), whichever is greater. The goal is to constrain long-term state spending growth in line with income growth or inflation.

Key Provisions

  • Annual Appropriations Ready to Pay State Expenses: The General Assembly remains empowered to appropriate funds necessary to cover administrative and other state government expenses.

  • Spending Cap Mechanism: The General Assembly must adopt a spending cap on general budget expenditures. The cap is set at the greater of:

    1. The average five-year increase in Rhode Island personal income, or
    2. The annual increase in the Consumer Price Index (CPI).

  • Effective Date: The act would take effect upon passage.

Who/What Is Affected

  • State Government General Budget: The cap applies to general budget expenditures for the state government. This affects annual appropriations, budgeting processes, and potential adjustments to spending plans to remain within the cap.

  • Legislative Process: The General Assembly is tasked with calculating and adopting the cap annually (or as part of the budget process). This adds a constraint to budget deliberations.

Timeline and Procedural Details

  • Introduced: January 21, 2026, in the House.
  • Referral: Referred to House Finance.
  • Committee Action: As of the latest action, the committee recommended holding the measure for further study (April 29, 2026). Earlier scheduling showed hearings/plans for consideration (April 24, 2026).
  • Enactment: The bill states it takes effect upon passage (no separate transition period specified).

Potential Implications

  • Fiscal Discipline: By tying the cap to personal income growth or inflation, the bill seeks to limit long-term growth in general state expenditures relative to economic conditions.

  • Budget Flexibility: The cap could constrain ability to respond to unexpected needs (e.g., emergencies, large program expansions) if those needs push expenditures above the cap.

  • Policy Trade-offs: Depending on the cap level, some programs or services could face tighter funding than under current practice, unless the General Assembly makes deliberate appropriations within or outside the cap for priorities.

  • Forecasting and Administration: Implementing and maintaining the cap requires annual calculation of five-year personal income growth and CPI changes, potentially increasing administrative requirements for budget offices and the legislature.

Sponsors

  • Primary sponsors include Representatives Nardone, Quattrocchi, Fascia, Santucci, Paplauskas, Chippendale, Place, and Hopkins, with several co-sponsors.

If you’d like, I can provide a quick comparison to Rhode Island’s current budgeting framework or outline potential fiscal scenarios under different CPI/personal income growth paths.

Compiled from official sources — confirm details with the bill’s official record.

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