Text

Response to Decommissioning Aspects of Letter Date November 24, 2009 Regarding Financial Resources to Continue Safe Operation of Rhode Island Nuclear Science Ctr
	ML100220899
Person / Time
Site:	Rhode Island Atomic Energy Commission
Issue date:	01/04/2010
From:	Tehan T; State of RI, Atomic Energy Comm
To:	William Kennedy; Research and Test Reactors Licensing Branch
References
	Download: ML100220899 (240)
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STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS RHODE ISLAND ATOMIC ENERGY COMMISSION Rhode Island Nuclear Science Center 16 Reactor Road Narragansett, RI 02882-1165 Mr. William B. Kennedy, Project Manager Research and Test Reactors Branch A Division of Policy and Rulemaking Office of Nuclear Reactor Regulation United States Nuclear Regulatory Commission Washington, D.C. 20555-0001 January 4, 2010 Re: Letter dated November 24, 2009 Docket No. 50-193

Dear Mr. Kennedy:

We are responding to the decommissioning aspects of the subject letter in a separate communication to you from the Chairman of the Rhode Island Atomic Energy Commission (RIAEC). This letter addresses questions relating to our financial resources to continue safe operation of the Rhode Island Nuclear Science Center (RINSC) during the requested twenty year license renewal period.

The Rhode Island Atomic Energy Commission's primary source of funding to cover operating costs is provided by an annual appropriation from the Rhode Island Legislature.

Other sources of revenue include federal grants and payments from the University of Rhode Island for radiation safety services. The latter is used primarily to cover personnel costs under an historical agreement with the University of Rhode Island. Personnel costs account for approximately 85% of the total expenditures. The General Revenue numbers shown in the table approximate annual operating costs. All other sources of revenue are sent to the Rhode Island General Fund and returned to the RINSC as needed.

For Fiscal Year (FY) 2011, the RIAEC has requested $884,116 from the general revenues of the state of Rhode Island. For Fiscal Years 2012 through 2015, the RIAEC expects an annual increase of approximately 3% to that appropriation. That projection is based on historic data that generally shows that annual growth.

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The following table provides both historic and projected financial data.

Fiscal Year Total Expenditures General Revenue Other 2007 $1,087,486 $827,654 $259,832 2008 $1,474,561 $834,101 $640,460 2009 $1,183,832 $786,847 $396,985 2010 $1,140,115 $775,346 $364,769 2011 $1,500,685 $884,116 $616,569 2012 $1,545,706 $910,639 $635,066 2013 $1,592,077 $937,959 $654,118 2014 $1,639,839 $966,097 $673,742 2015 $1,689,034 $995,080 $693,954 If you have additional questions, please contact me.

Very truly yours, Terry Teh*, Ph.D., Director Rhode Igand Atomic Energy Commission I certify under penalty of p rjury that the representa Executed on: By:

Attachments: RIAEC Budgets

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS RHODE ISLAND ATOMIC ENERGY COMMISSION Rhode Island Nuclear Science Center 16 Reactor Road Narragansett, RI 02882-1165 October 28, 2009 The Honorable Governor Donald L. Carcieri Office of the Governor State House Room 143 Providence, RI 02903

Dear Governor Carcieri:

This letter transmits revised pages to the Rhode Island Atomic Energy Commission (RIAEC) FY 2010/2011 Budget. These pages reflect a full 3% raise in FY201 1 and do not reflect unpaid days in 2010 or 2011 and the half year delay inthe pay raise.

//L Sincerely,A Deirto'r, T ehan,IEPh.D.

Enclosure:

FY2011 Budget Copy to: Budget Officer Senate Fiscal Staff House Fiscal Staff

Rhode Island Atomic Energy Commission FY.2010 . FY2011 Grade FTE Cost FTE Cost Classified Director .0150 A 1.0 151,900 1.0 156,364 Assistant Director for Operations 0139,A 1.0 81,982 -1.0. 90,350 Assistant Director for Reactor Safety 0139 A 1.0 87,061 1.0 92,793 Reactor Supervisor, Nuclear Science Ctr. 0132 A 1.0 67,592 1.0 71,787 Senior Facility Engineer 0132 A 1.0 56,866 1.0 60,715 Health Physicist 0130 A 1.0 64,783 1.0 69,833 Principal Reactor Operator 0124 A 1.0 53,470 1.0 57,123 Senior Word Processing Typist 0109A 0.6 20,621 0.6 21,577 Subtotal 7.6 $584,275 7.6 '$620,542 Unclassified Information Systems Specialist 0816 A 1.0 36,566 -1.0 38,703 Turnover (55,929) (66,405)

Total Salaries 8.6 $564,912 8.6 $592,840 Benefits Retirement 126,436 128,289 Medical 82,258 85,566 FICA, 42,037 41,274 Retiree Health 32,837 39,957 Payroll Accrual 3,009 3,242 Total Salaries and Benefits 8.6 $851,489 8.6 $891,168 Cost Per FTE Position 99,010 103,624 Temporary and Seasonal .12,000 12,000 Statewide Benefit Assessment 26,527 25,315 Payroll Costs 8.6 $890,016 8.6 $928,483 Purchased Services Training and Educational Services $12,257 $12,257 Security Services 2,691 2,691 Buildings and Grounds Maintenance 43 43 Information Technology 167 167

Rhode Island Atomic Energy Commission FY 2010 FY 2011 Grade FTE Cost FTE Cost Total $15,158 $15,158 Total Personnel 8.6 $905,174 8.6 $943,641 Distribution by Source of Funds General Revenue 7.0 709,059 7.0 738,273 Federal Funbds 10,000 10,000 Other Funds 1.6 186,115 1.6 195,368 Total: All Funds 8.6 $905,174 8.6 $943,641

State of Rhode Island'

RHODEISLAND ATOMIC ENERGY COMMISSION Line Sequence S4m mar Agency: 052 RHODE ISLAND ATOMIC ENERGY COMMISSION FY 2008 FY 2009 FY 2010 FY 2010 " ' FY,2011 Natural Account: Actuals: Actuals: Enacted: Revised: Requested:

Program: 07 Atomic Energy Commission Line Sequence: 2895101 URI SPONSORED RESEARCH Category: 10 Salary/Wages and Benefits 611000 Regular Wages $116,521 $110,843 .$159,348 $114,411 $118,128 619000 Payroll Accrual $0 $0 $779 $568 $635 620100 Employees' Retirement $24,258 $20,539 $33,208 $24,943 $26,929 621110 FICA: Social Security $8,580 -$6,908 $12,231 $8,673 $9,364 621120 FICA: Medicare $0 $0 $0 $0 $0 624110 Medical Insurance $39,222 $17,108 $26,178 $24,317 $26,324 624120 Dental Insurance $1,219 $992 $1,301 $1,684 $1,785 624130 Vision Insurance $237 $202 $271 $408 $329 626100 Assessed Fringe Benefits, $4,493 $5,714 $6,715 $4,762 $5,019 626300 Retiree Health Insurance $4,527 $4,981 $8,986 $6,349 $6,855 627000 Uncompensated Leave Days $0 $0 $0 $0 $0, Total for Category: 10 Salary/Wages and Saar/agsan Bnfis$199,057 Benefits $167,287 $249,017 $186,115 $195,368 Category: 40 Operating Supplies and Expenses 640100 Building Maintenance & Repairs $0 $0 $3,000 $3,000 $3,000 640200 Grounds Maintenance $0 $0 $2,000 $2,000 $2,000 643200 Dues and Fees $15,640 $0 $14,000 $3,316 $3,316 643300 Subscriptions $0 $0 $5,000 $5,000 $5,000 643810 Insurance: PropertyiCasualty $0" $0 $4,280 $4,280 $4,280 643820 Insurance: Prof & Occupational $0 $0 $4,000 $4,000 $4,000 644520 Central Utilities Fund $0 $0 $3,472 $55,345 $55,345 644522 CUF: Overhead $22,992 $0 $0 $0 $0

.10/28/2009:10:08:06AM Paee 1 ofll

State of Rhode Island

RHOD IS ENERG Line Seouence Sommarv Agency: 052 RHODE ISLAND ATOMIC. ENERGY COMMISSION FY 2008 IFY 2009 FY 2010 FY 2010 F2011 FY Natural Account:' Actuals: Actuals: Enacted: Revised: Requ sted:

Program: 07 Atomic Energy Commission Total for Category: 40 $0 Operating Supplies and Expenses Total for Line Sequence 2895101 URI SPONSORED RESEARCH $237,689 $167,287 $284,769 $263,056 $272,309

4" z4 State of Rhode Island

RHODE ISLAND ATOMIC ENERGY

COMMISSION Line Sequence Summa.y Agency: 052 RHODE ISLAND ATOMIC ENERGY COMMISSION FY2008 FY2009 FY2O01. FY2010 FY 2011 Natural Account: Actuals: Actuals: Enacted: Revised: Reqested:

Program: 07 Atomic Energy Commission Line Sequence: 2910101 R I ATOMIC ENERGY COMMISSION Category: 10 Salary/Wages and Benefits 611000 Regular Wages $528,805 $419,241 $458,440 $462,501 $478,722 616200 Medical Insurance Waiver Bonus $2,695 $4,389 $6,006 $4,004 $4,004 619000 Payroll Accrual $0 $0 $2,484 .$2,441 $2,607 620100 Employees' Retirement $107,023 $105,981 $95,107 $101,493 $106,360 621110 FICA: Social Security $36,956 $34,523 $0 $0 $0 621120 FICA: Medicare $0 $0 $32,046 $33,364 $34,900 624110 Medical Insurance $33,234 $53,531 $44,866 $47,939 $49,062 624120 Dental Insurance $4,142 $4,298 $3,557 $3,348 $3,482 624130 Vision Insurance $768 $805 $707 $558 $580 626100 Assessed Fringe Benefits $19,956 $29,023 $19,232 $21,765 $20,296 626300 'Retiree Health Insurance $20,013 $27,815 $25,735 $26,488 $33,102 627000 Uncompensated Leave Days $0 $0 $0 $0. $0 Total for Category: 10 $753,592 $679,606 $688,180 $703,901 $733,115 Salary/Wages and Benefits Category: 30 Contracted Professional Services 632160 IT System Support $48 $0 $0. $48 $48

$119 $119 632180 IT General Services $0 $0 $119 633100 Training and Education Services $1,023 $982 $0 $1,023 $1,023 633200 Seminars and Conferences $1 ,234 $0 $0 $1,234 $1,234 638300 GroundskeepinglLawns $43

$0 $0 $43 $43 639500 Security Services $1,941 $1,786 $2,000 $1,941 $1,941 639600 Fire Protection Services $525 $750 $0 $750 $750 10/28/2009 10:08:06AM Paae 3of I1

,*.

State of Rhode Island

, RHODEISLAND ATOMIC ENERGY

- COMMISSION Line Sequence S mmar Agency: 052 RHODE ISLAND ATOMIC ENERGY COMMISSION FY 2008 FY 2009 .FY 2010 FY 2010 FY2011.

Y'.>

Natural Account: Actuals: Actuals: Enacted: Revised: Reqested:.

Program:. 07 Atomic Energy Commission Total for Category: 30 Contracted Professional Serices $4,933 $3,518 $2,000 $5,158 . $5,158 Category: 40 Operating Supplies and Expenses 640100 Building Maintenance & Repairs $5,261 $273 $1,000 $2,000 $2,000 640400 Waste Disposal $0 $1,210 $0 $1,000 $1,000 641200 Maintenance/Repairs: Computer Equip $0 $531 $0 $531 $531 641400 Maintenance/Repairs: Office Equip. $373 $1,382 $0 $1,382 $1,382 641600 Maintenance/Repairs: Other Equip $225 $23 $0 $225 $225 642400 Safety Expenses $1,557 $0 $0 $1,557 $1,557 643110 Office Supplies & Equip $2,745 $1,976 $0. $2,000 $2,000 643120 Comp Supplies/Software & Equip $536 $161 $0 $300 $300 643130 Janitorial Supplies & Equip $1,442 $1,680 $1,000 $1,500 $1,500 643140 Kitchen/Household Supplies & Equip $0.. $9 $0 $9 $9 643150 Program Supplies & Equip $4,253 $116 $0 $4,000 $4,000 643160 Security/Safety Supplies $3,055 $4,523 $1,500 . $4,523. $4,523*

643180 Building/Machinery Supplies & Equip $11,631 $10,901 $6,336 . $10,000 $10,000 643200 Dues and Fees $0 $10 $5,000 $10 $10 643300 Subscriptions $554 $490 $0 $554 $554 643410 Postage and Postal Svcs $1,975 $2,069 $700 $2,069 $2,069.

643430 Freight $0 $0. $500 $500 $500 643611 Print Advertising $0 $2,815 $0 $2,000 $2,000 643620 Printing - Outside Vendors $90 $0 $0 $90 $90 643700 . Miscellaneous Expenses $973 .$499 $0 $973 $973 643710 Staff Training $135 $0 $0 $135 $135 10/28/2009 10.:08:07AM Paze 4 of 11

*- State of Rhode Island

'o *RHODE ISLAND

ATOMIC ENERGY

COMMISSION Line Sequence Sulimary.

Agency: 052 RHODE ISLAND ATOMIC ENERGY COMMISSION FY 2008 FY 2009 ,FY 2010 FY 2010, FY2011 Natural Account: . Actuals: Actuals: Enacted: Revised: .Req'6ted.

Program: 07 Atomic Energy Commission 643810 Insurance: Property/Casualty $4,490 $4,295 $4,820 $4,490 $4,490 643830 Insurance: Cost Reimb $6,901 $6,096 $0 $6,901 $6,901 643920 Medical Supplies (non-Rx) $0. $0 $1,750 $1,750 $1,750 643931 Central Pharmacy: Pharmaceuticals $0 $0 $100 $100 $100-.-

644300 Fuel: Natural Gas $113 $0 $0 $113 $113-644400 Fuel: Gasoline/Diesel Fuel $476. $582 $300 $582 $582 644520 Central Utilities Fund $0 $0 $55,345 $0 $0 644522 CUF: Overhead $19,342 $51,212 $0 $0. $0 644700 Water $905 $988 $905 $988 $988 645200 Rental/Lease: Equipment $4,260 $140 $2,760 $3,000 $3.000 646310 Out-of-State: Transportation $27 $0 $0 $27 $27 647160 DOlT: Hardware $875 $0 $0 $875 $875 647410 State Fleet: Fuel $68 $219 $0 $219 $219 648100 Telephone and Telegraph $3,236 $3,489 $0, $3,489 4 $3,489 648110 Telcomm ISF (CENTREX) $0 $0 $3,150 $3,150 $3,150 648112 Telecomm: Overhead $78 $745 $0 $745 $745 649160 Fees: Miscellaneous $0 $4,500 $0 $4,500 .$4,500 Total for Category: 40 TOtaerCatengory:pe 4d E$75,576 $100,934 $85,166 $66,287 $66,287 Operating Supplies and Expenses Total for Line Sequence 2910101 $834,101 $75,346 $775,346 $804,560 R I ATOMIC ENERGY COMMISSION

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

' RHODE ISLAND ATOMIC ENERGY COMMISSION Rhode Island Nuclear Science Center 16 Reactor Road Narragansett, RI 02882-1165 Sep~tember 5, 2008 The Honorable Governor Donald L. Carcieri Office of the Governor State House Room 143 Providence,.RI 02903

Dear Governor Carcieri:

This letter transmits the Rhode Island Atomic Energy Commission (RIAEC) FY 2010 Budget.Request. We have instituted numerous cost saving measures to meet the budget reduction targets for 2009 and 20i0 which include eliminating state funded maintenance, computer equipment and supplies, training, outside printing, out of state travel, overtime and equipment. We view these cuts as deleterious to the long-term future of the Rhode Island Nuclear Science. Center. We have utilized federal funds, where legal, to offset shortfalls in state funding. Unfortunately, the Department of Energy dropped all support for research reactors this year and it will be at least a year until funding is restored. We have offset this funding loss by instituting an overhead charge on the University of Rhode Island sponsored research account to make up for revenue shortfalls.

Still, it will be difficult to achieve the required personnel turnover needed to meet budget targets. Any additional cuts to personnel or basic operating budget items will result in a situation where we may not be in compliance with state and federal regulations regarding the safe operation of the facility. We anticipate the need for supplemental funding during the 2009 and 2010 budget years due to the loss of federal funds. A Supplemental Appropriation Request will be submitted when we have a better feel for the federal funding picture.

Sirrely, f*.

Ter ha , Ph.D.

Direct ýPC

Enclosure:

FY20 10 Budget Copy.to: Budget Officer Senate Fiscal Staff House Fiscal Staff

TABLE OF CONTENTS NARRATIVE INFORMATION Agency Description.......... ................................................................................. Page 1 O rganization C ha rt ...................................................................................... ..................................................... P age 7 AGENCY

SUMMARY

P rogram S um m ary ............................................................................................................... . ........... ....... P age 9 REVENUE ESTIMATES AND DATA Estim ated Departm ental Revenues .................. I....................................................................... Page 10

.................. Pg....

Receipt Account Inform ation .................................................................... ..................... Page 11 PERSONNEL SUPPLEMENT DATA P ositio ns ..................................................................................................................................................... . . P age 12 Total P ayroll ................................................................................................................... .......................... Page 13 BOC DETAIL RI Atomic Energy Commission .............. ............................................... Page 14 BOC Detail Backup Information ....................................................... ......................................... Page 20 FEDERAL/RESTRICTED ACCOUNT ESTIMATES 2 9 15 10 1 .................................... .. ....................................... .e....................... ............. ........................................ Pa g e 2 1

2 9 15 10 2 ............................................................................. ........... .................................................................. P a g e 2 2 2 9 15 0 13 ............................................................................... ........................................... ...... P ag e 2 3 2915104 ....................................................................... Page 24 PROGRAM PERFORMANCE MEASUREMENTS Commercial and Research Use Availability ...................................................................................................... Page 25 Minority/Female as a percentage of workforce .............................................................................................. Page 26

BR-10 Narrative Information Revised 8-24-08 Agency: Rhode Island Atomic Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center PROGRAM TITLE: Rhode Island Nuclear Science Center Operations PROGRAM EXPLANATION:

The Rhode Island Nuclear Science Center (RINSC) is used for medical, biological, environmental and materials research, education and commercial activities. In addition, the staff runs the radiation safety program for the University of Rhode Island. The Director serves on the State Radiation Advisory Commission and has taken over responsibility for low-level radioactive waste disposal activities from the Department of Environmental Management. In this capacity, he serves as the Governor's Representative to the National Low Level Waste Forum.

The Center's state-of-the-art analytical laboratories and equipment are currently being used for several environmental monitoring projects. A new classroom and educational counting laboratory were completed this year with federal grant funds. Local colleges are utilizing the facilities for classes and student projects. The facility continues the process of improving security and upgrading reactor equipment that have been financed through. Department of Energy (DOE)

Grants. A high security gate has been installed at the rear of the lab building and work is proceeding on improving security in the rear of the facility.

In 1993, the reactor was converted to a new low enriched uranium fuel system that has greatly reduced seqpurity requirements and associated costs while providing a significant improvement in performance. The use of grant monies has resulted in the addition of upgraded mechanical and electronic equipment necessary to substantially increase reactor capability. These improvements will permit the RINSC to compete successfully for production of medical isotopes, will provide the neutron flux to do. meaningful research in neutron scattering science and will provide the necessary neutron flux to conduct Neutron Capture Therapy (NCT) that is a promising new method of curing deep cancers.

This year, RINSC upgraded the reactor control systems using industrial automation software and hardware. The rod controls system was replaced with controllers,, encoders and new stepper motors. This project has increased the reliability of the control system and allowed removal of older controls, meters and chart recorders.

RINSC and University of Rhode Island have upgraded the large angle neutron diffractometer with new computer controls from Brookhaven National Lab and data acquisition with monies from the Department Of Energy,' Innovations in Nuclear Education and Infrastructure (INIE) Grant. RINSC was awarded an additional DOE, National Energy Research Institute (NERI) Grant that provided significant improvements to our neutron scattering science capability. The custom electronics and computer system built by Oak Ridge National Lab for a second diffractometer will allow RINSC to complete with the Page 1

BR-10 NarratiVe Information Revised 8-24-08 Agency: Rhode Island Atomic Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center National Labs and other universities for neutron science research initiatives like the Global Nuclear Energy Partnership (GNEP).

RINSC and University of Rhode Island were awarded a grant in collaboration with MIT and other universities for GNEP activities. Part of this DOE grant will provide funds to URI in support of starting a Minor in Nuclear Engineering in the Spring 2008. As part of this effort, RINSC is converting available space into a classroom and another place into a multiple station counting lab. Spring 2008, URI will teach a Nuclear Detection and Measurement course at RINSC. RINSC has purchased six single channel analyzers for the laboratory experiments associated with the course. The monies for this equipment will come from the DOE sponsored INIE program. Providence College Physics Department will also make use of this new Laboratory Equipment for their Modern Physics Course.

RINSC has completed an educational -license agreement with IndoSoft Ltd.. RINSC will be able to use IndoSoft software to provide remote classroom training. RINSC and URI's work with neutron scattering science will be made available to the URI Physics Students on the main campus through this program. The program is expected to provide a remote classroom at the URI main campus. Remote training will also be made available to Providence College and Brown University providing remote laboratory training for Neutron Activation Analysis.

Engineering and design and fabrication work is currently in progress for the construction of a cancer treatment facility that is being funded by Dr. Karl Ott of Purdue University and a commercial Company. Researchers at Brown University and RINSC have a collaborative effort with the Massachusetts Institute of Technology (MIT) to develop a successful treatment

.for one of the most deadly forms of brain cancer. The results of this work has allowed Dr. Leith associated with RINSC and Brown University to apply for a larger NIH grants to support and continue this work.

Dr. Alex Pszenny is currently conducting a major study of pollution outflow, which has expanded from only the Northeast United States to the West Coast and Cape Verde off the African Coast under the multi-agency CHAOS Program. This study uses the reactor to analyze samples for Bromine and Iodine as a means of determining Ozone depletion and its effect on pollution values. The neutron activation process for trace metal analysis has been shown as a viable method to further improve the pollution model and funding. has been requested to continue this type of analysis. This project is a long term effort that will extend for several years.

Dr. Jennifer Perry at Pomona College, Anthropology Department and URI, Graduate School of Oceanography (GSO) are conducting experiments with prehistoric stone samples. A graduate student from GSO Narragansett Bay Campus is participating in this new approach to use neutron activation analysis to categorize prehistoric stone tools.

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BR-1O Narrative Information Revised 8-24-08O Agency: Rhode Island Atomic'Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center A new building for the production of sensors for weapons of mass destruction has been completed and is being utilized by SubChem Systems to do cutting edge research in underwater sensor development. This company has several grants from economic development agencies and utilizes several URI students in the research efforts.

RI Consultants has constructed a laboratory in the facility for proof of concept work in the area of radiopharmaceutical applications. They recently developed a new method of utilizing radioisotopes to prevent clogging of arteries after angioplasty and new targets for accelerators to produce specialized radioisotopes. They are currently developing a new phosphorus radioisotope with a company in South Africa. RINSC has given RI consultants authorization to perform QA.

work on the new phosphorus radioisotopes being developed in South Africa.

BioPAL, Incorporated is making extensive use of the reactor to conduct analysis of medical samples for a variety of treatment and research purposes including the area of stem cell research. They have pioneered the use of neutron activation analysis (NAA) to provide an alternative technique for in vivo cell tracking and quantifying studies. BioPal uses non-radioactive microspheres for measuring regional blood flow, gastrointestinal motility, particle handling by the pulmonary system, health of the liver and injected protein distribution. Nano-materials can be used to label and track stem cells. The microspheres have up to six different labels, that can be examined post experiment using NAA to identify the labels. No other technology can provide quantitative cell labeling in such a simple and non-intrusive manner.

Infoscitex Inc. is utilizing the reactor to develop a method of hardening glass for use in high performance solar cells.

Future work will include lazer analysis with URI.

RINSC is located at the University of Rhode Island, Bay Campus, in Narragansett. The Center contains a state-of-the-art nuclear counting. system, laboratories, a mass spectrometer, a class 100 clean room and facilities for handling and storage of radioactive material. The Rhode Island Nuclear Science Center has operated on a daily basis without incident since 1962.

STATUTORY HISTORY:

The Rhode Island Atomic Energy Commission was established. in 1958 by Title 42, Chapter 27 of Rhode Island General Laws for the purpose of advising the governor and general assembly on matters relating to atomic energy and to construct and operate a nuclear reactor in the state.

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BR-10 Narrative Information Revised 8-24-08 Agency: Rhode Island Atomic Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center PROPOSED BUDGET YEAR OPERATIONS:

The current level of operations and maintenance of the facility include:

.1. Operation of the reactor and associated research facilities to support projects in the areas of neutron activation analysis, neutron scattering and neutron damage studies, medical isotope development, and commercial -initiatives and cancer research.

2. Efforts to meet federal security requirementswhich continue to become more stringent.

3. Operation of the URI Radiation Safety Program.

4. Tours and briefings for educational institutions and other interested individuals and groups throughout the state.

5. Technical and administrative support for the low level radioactive waste program and coordination with other state and federal agencies in the areas of nuclear technology.

6. Classroom and laboratory training for educational institutions utilizing the new facilities at RINSC The current initiatives of the facility include:

1. Upgrading of two beam instruments to support educational and research initiatives by the URI Physics Department

2. Increasing the classroom and laboratory space and equipment. Suport of URI efforts. to provide -a Nuclear Engineering Minor.

3. Development of a new cancer treatment protocol using gadolinium in cooperation with Brown University and MIT

4. Environmental monitoring studies for various state and Federal agencies. This work will be done by Microinorganics Inc. This company has two laboratories at RINSC that specialize in trace metal analysis of low level environmental samples.

5. Completion of security upgrade projects required by the Nuclear Regulatory Commission.

6. Continued participation with State and Federal agencies to identify the most cost-effective method of ensuring safe disposal of low level radioactive waste generated by hospitals and universities throughout the state and technical input to State agencies regarding current problems with the disposition of high-level nuclear waste in adjoining states.

7. Continuation of educational programs funded from the Department of Energy Reactor -Sharing Grants and submission of new grants for graduate student aid under the Nuclear Engineering Education Research Grant Program and submission of new grants to the National Cancer Institute to support the NCT work in progress.

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BR-10 Narrative information Revised*8-24-08 Agency: Rhode Island Atomic Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center

8. Efforts to increase ,the scope of. commercial work will continue in the area of isotope production, radio-pharmaceutical production, and cancer research and therapy.

LONG-TERM TRENDS:

The new methods for medical and biological diagnostics developed by BioPAL, Incorporated have significant commercial potential. The response to their products has been very positive on an international scope. They have invested a significant amount of money in advanced analytical equipment thathas enabled them to meet the steady growth in demand. The significant capabilities of a research. reactor in the area of activation- analysis has been the other reason that they have been able to grow so rapidly.*

Continued research at the Massachusetts Institute of Technology and other facilities worldwide in the use of Neutron-Capture Therapy to cure brain and skin cancer holds real promise. for utilization of the RINSC reactor in the field of cancer treatment. A, research reactor is required to produce the necessary neutron beam and the future improvements to the RINSC beam will make it one of the few facilities that can perform this type of treatment. A fifteen-year lease has been signed with the Neutron Therapy Company to construct a state-of-the-art treatment facility with a highly advanced neutron filter. Also, in collaboration with Brown University and the Rhode Island Cancer Council, a team was formed to develop a treatment capability in Rhode Island. Current efforts focus on the development of gadolinium as the active agent in this therapy. A multi-year grant from the Department of Energy has been awarded to RINSC and MIT for this work and grants have been submitted to the National Institute Of Healthfor funding. of this research.

Continuing efforts to upgrade equipment will ensure the safe and reliable operation of the reactor for many years. The Center for Atmospheric Chemistry Studies building (CACS) that is located adjacent to RINSC provides much additional laboratory and office space for faculty and students that utilize the reactor for research. The combination of a modern reactor facility and the CACS building provides the support necessary for a world-class environmental research program.

The most disturbing long-term trend is the lack of staff to support new initiatives. Previous budget and staff cuts combined with retirements and loss of experienced operators to higher paying industry jobs has made it difficult to handle the significant increase in research work and commercial activities. The staff has continued to function because of the significant experience level and technical expertise of the remaining personnel. However, the extremely small staff 'and significant maintenance, administrative and watch standing -demands associated with daily reactor operation limit the amount of additional new work that can be undertaken. Subsequent to the events of 9/11, the staff has been required to spend much time meeting new federal requirements in the area of security from terrorist attacks.

There is currently no funding in the budget to support startup costs associated with commercial projects. Staff cuts made in the last few years has made it impossible to run the reactor more than one shift a day. A longer operational time is required to economically provide neutrons for potential new commercial operations. Due to continued budget cuts and Page.5

BR-10 Narrative Information Revised 8-24-08 Agency: Rhode Island Atomic Energy Commission (RIAEC)

Program: Operation of the Rhode Island Nuclear Science Center loss of researchers in the area of environmental chemistry, RINSC has been forced to terminate support for other state agencies in the area of radiological emergency response. In the event of a major radiological accident, RINSC would not be able to meet the technical and legal requirements that are necessary to do this work. Budget cuts have also necessitated the termination of support for other state agencies in the area of orphaned radioactive material. Such material is extremely expensive to dispose of and there is no funding for this program.

The recent. loss of the Assistant Director of Operations to a federal research reactor which doubled his salary highlights the fact that current pay-scales at RINSC are not competitive with the resurgent nuclear industry. Several'senior staff members are close to retirement and it will be very difficult to hire qualified replacements.

PERFORMANCE MEASURES:

Since the charter of the Center is to support education and research, 'there is no simple' indicator that best reflects performance. Much of the research and training is. unique and not easily quantifiable. The large amount of effort that is expended on the URI safety program is not captured in these performance measures and the large amount of time and effort expended in project development is also missed, However, two* statistics have been developed to capture the operational performance of the reactor- since this is easy to quantify. The number of samples irradiated by the reactor provides a simple measure of reactor usage and is therefore provided. The current operating hours of the reactor as compared to the historical record of seven hour days/ 5 days a week provides an indicator of the effects of reduced staff, and funding while, also, reflecting- the potential of the reactor to increase research support should increased support *be obtained.

1. Sample-hours: This parameter relates to samples that are irradiated in the reactor and counted on the Center's computer system after being processed in the various. laboratories.' Reactor operating Hours: This parameter compares current operations to the historical level of 7 hrs/day for 5 days/wk.

2. Reactor operating Hours. This number compares current operations to the historical level of 7 hrs/day for 5days/wk.

Page 6

RIAEC Organization Chart FIGURE 6-1 TECHNICAL SPECIFICATIONS Docket 50-193 License R-95 Rhode Island Atomic Energy Commission RHODE ISLAND ATOMIC ENERGY Line of COMMISSION (RIAEC) Communication*

NUCLEAR &

RADIATION SAFETY RHODE ISLAND COMMITTEE (NRSC) .CANCER COUNCIL I-----------------------

ASST. DIRECTOR FOR RADIATION & REACTOR SAFETY (RSO)

PRIN REACTOR OPERATOR H.P. SPECIALTY page 7

Prepared by terry tehan 9/3/2008 Page'8 Agency Summary Agency:

RI Atomic Energy Conunission Explanation FY2007 FY2008 FY2009 FY2009 FY2010 spent Spent Enacted Revised Request Expenditures by Program Atomic Energy Commission 1,095,360 1,087,488 1,481,463 1,201,048 .1,043,921 Total Expenditures 1,095,360 1,087,488 1,481,463 1,201,048 1,043,921 E Expendituresby Category salary/wages,benefits 855,896 888,855 927,759 995,057 1,019,587 contracted service 12,031 17,672 22,000 0 0 operating supplies and expenses 211,207 161,588 455,764 175,942 180,419

Assistance, Grants and Benefits 0 0 20,940 92,937 30,000

Subtotal Operating Expenditures' 1,079,134 1,068,115 1,426,463 1,263,936 1,230,006 Capital Improvements 16,226 19,373 55,000 50,000 50,000 turnover expectancy 0 (112,888) (236,085)

Total Expenditures 1,095,360 1,087,488 1,481,463 1,201,048 1,043,921 Page 8

Prepared by tenry tehan 9/3/2008 Page 9 Agency Summary Agency:

RI Atomic Energy Commission Explanation FY2007 FY2008 FY2009 FY2009 FY2010 spent Spent Enacted Revised Request Expenditures by Fund State General Revenues 799,460 827,655 819,869 824,470 744,492 Federal Grants 136,215 101,942, 365,940 92,937 0 Restricted Receipts Other (List Each): URI 159,685 157,891 240,654 233,641 249,429 capital projects 0 0 55,000 50,000 50,000 Total Expenditures 1,095,360 1,087,488 1,481,463 1,201,048 1,043,921 FTE Positions 8.6 8.6 8.6 8.6 8.6 Page 9

FORM BR-8 Estimated Departmental Revenues RI ATOMIC ENERGY COMMISSION FY2005 FY2006 FY2007 FY2008 FY2009 FY201 0 Actual Actual Actual actual revised request CRrfctor edhcar RI Consultants, LLC (userfee) $0 credited** credited** credited** credited-RI Consultants, LLC (lab rental) credited

Micro-inorganics Inc (lab rental) revised* $0 credited** credited-* credited"* Credited*I credited

$2,152 $ 2 r152 $1 $1 Neutron Therapy Company. (lab rental_)) $1

$1 *$1 $1 $1 $1 $1 BioPAL, Inc. (user fee) $16,918 $12,000 $19,321 University of New Hampshire $0 20,000 12,248 20,000

$2,5600..... $7,695 $5,000 _ $5,000

-- SubChemn Systems, Inc. (site rental)l $5,000

$1 * $1 . $1. $1 $1 $1 29151012 LEU &Reactor Sharing Grant (DOE grants) $37,500 $35,500 $35,500 $50,000 2-9-151022 Reactor Instrumentation and Nuclear Energy f7$45,000 so $0$

$43,529 .$43,529 $50,000 $100,000 $0 29151032 Gadolinium Research Grant $100,000 $85,000 $85,000 $85,000 $0_ $0_.

URI Irradiations $0 $0 _ $882 $800 $800 $0 URI Overhead(starting in 2008) $0 $0 $0 $62,475 $62,475 62,475 TOA l9 92 $11"0 $16P__

- credited :Q17,24f eRIConsultants were credited the full cost of Irenovations to a laboratory, ($58,549.02).:____

Lease - TBD. I f I - I revised- Micro-Inorqanics credited for cleanup costs i and equipment damage due to sprinkler system failure Microinorganij also credited for maintaining cleanroom which damaged their laboratories Page 10

Form BR-9 Receipt ACCorunt Number: 29109981 (28-14-605)

Receipt Account Information Rece ipt Account

Title:

State General Account R.I.G.L.

Reference:

42-27-2 Description of Receipts: (include information on renewal dates, term of license, number of licenses issued, etc.)

Fees may be charged for the use of reactor facilities. Fees are established by the Rhode Island Atomic Energy Commission (RIAEC), and are intended to offset the costs associated with the operation and maintenance of the Rhode Island Nuclear Science Center. The receipts are generated from usage of irradiation and laboratory services and the rental of laboratory spaces. These fees are deposited as general revenue.

Basis for FY 2009 Revised Estimate:

(1) URI is paying an annual overhead charge on the Radiation safty budget starting in FY08 (2) BioPAL, Inc. is projecting a reduced irradiation schedule. BioPAL also rents laboratory space for analysis equipment and storage of their irradiated samples.

(3) Microlnorganics, Inc. rents laboratory space for work relating to environmental analyses. Their space has been reduced due to development of a counting lab and they receive credit for maintaining the clean room Basis for FY 2010 Estimate:

(1) URI overhead fees have increased due to the 40% rate.

(2) Reactor fee charges for support and laboratory space relating to the BioPAL group should increase.

Page 11

Form BR-2a Revised 8/2002 Personnel Supplement Data Pay FY2009 revised FY2010 request Positions Grade FTE Amount Notes FTE Amount Notes URI Share URI Share Classified DIR., R.I. ATOMIC ENERGY COMM 0150A 1.0 148,271 1.0 151,900 ASST DIR FOR OPR, NUC SCI CTR 0139A 1.0 84,785 1.0 90,313 ASST DIR FOR RADIATION & REACTOR SAFETY 0139A 1.0 84,938 52,662 1.0 87,061 53,978 REACTOR SUPVR, NUCLEAR SCI CTR 0132A 1.0 68,746 1.0 71,297 SENIOR FACILITY ENGINEER 0132A, 1.0 .65,943 1.0 67,592 HEALTH PHYSICIST 0130A 1.0 72,134 44,723 1.0 73,877 45,804 REACTOR OPERATOR/HPS 0124A 1.0 48,112 1.0 49,315 SENIOR CLERK-TYPIST 0109A - 0.6 19,235 19,235 0.6 19,935 19,935 STUDENT INTERN '0802H 0.0 0 0.0 0 Subtotal 7.6 592,164 116,620 7.6 611,290 119,717 Unclassified.

INFORMATION SYSTEMS SPECIALIST 0816A 1.0 34,929 1.0 36,566 Subtotal 1.0 34,929 1.0 36,566 Total Payroll 8.6 627,093 116,620. 8.6 647,856 119,717 Overtime Turnover Expectancy (Salary & Benefits)

(112,888) (236,085)

Program Reduction Benefits

+

Retirement (280; 621000)

.9.60% 132,504 11,196 11.51% 134,042 13,779 Retirement Health Ins (294; 628300) 1.30% 24;205 1,516 1.33% 25,008 1,592 Medical Benefits (295; 622100) 103,786 . 24,317 114,987 . 26,324 Dental Plan (297; 622200) 7,019 1,684 7,401 1,785 Vision Plan (298; 622300) .

1,294 408 1,330 329 0 0 0 Cash Bonuses Waiving Insurance (218; 619300) 4,004 0 ,4004 0 FICA (281; 621700) 7.65% 45,238 . 8,921 7.65% 46,576 9,158 Assessed Fringe Benefit (283; 628100) 3.80% 39,238 4,432 4.16% 27,210 4,908 2005 Retroactive payments 0 0 Payroll Accrual (274; 619900) 0.40*% 3,377 547 0.40% 3,423 571 Subtotal 360,665 .53,021 359,977 58,447 Page 12

Form BR-2a Revised.8/2002 Personnel Supplement Data Pay I FY2009 revised FY20i0 request Positions Grade FTE. Amount Notes FTE Amount Notes URI Share URI Share Total Salaries and Benefits Cost per FTE Position 874,870 169,641 771,748 178,164 101,729 89,738 Temporary and Seasonal (FICA) 0936H 0.0 12,000 Unemployment Compensation 0.0 12,000 Workers' Compensation Total Payroll 886,870 169,641 783,748 178,164 Purchase of Services Medical Services Architect/Engineering Services Educational/Professional Services 0

Buildings and Grounds Maintenance Security Services (0269; 632810)

Legal Services -2,000 2,000 Management/Audit Services Special Clerical Services Miscellaneous Special Services University/College Contractual Transfers Total

.2,000 2,000 Total All Personnel 888,870 169,641 785,748 178,164 Source of Funds:

General Revenue Federal 655,229 536,319 overhead charges (40%)

Other: (University of RI) 64,000 71,265 169,641 1.78,164 Total All Funds 888,870 785,748 Page 13

RIFANS NA RIFANS Natural Account Name BOC 2006 Actual 2007 Actual 2008 Actual 2009 revised 2010 requested 0282010000 2910101 R IATOMIC ENERGY "__

611000 Regular Wages 0210 $454,510 $473,226 $482,128 611300 Classified Limited $510,473 528,139 0220 $11,147 $11,788 $11,788 611999 Contract Reserve $11,788 12,000 0203 613100 Unclassified Permanent 0 0230 $39,961 $39,469 $34,166 614600 Overtime: Other (i.e. Seasonal) $34,929 36,566 0215 $0 $3,000 $0 616200 Family Medical Insurance Coverage Waiver Bonus $0 0 0218 $2,233 $2,002 $4,004 619000 Payroll and Employee Benefits Accrual $4,004 4,004 0274 $0 $2,320 $2,718 619200 Cash Bonus Health Main Org (HMO) Part. $2,830 2,852 0217 620100 Employees' Retirement - State Contribution 0280 $71,843 $92,896 $107,234 621120 Medicare (FICA) Hospital Insurance Tax $121,308 120,243 0281 $34,917 $36,075 $35,896 624110 Employer Cost of Employee Medical Insurance $36,317 37,418 0295 $58,067 $50,785 $62,635 624120 Employer Cost of Employee Dental Insurance $79,469 88,663 0297 $4,328 $4,197 $4,691 624130 Employer Cost of Employee Vision Insurance $5,335 5,616 0298 $903 $860 $923 626100 Assessed Fringe Benefits Fund Assessment $886.1,001 0283 $18,318 $15,674 $19,619 626300 Retiree Health Insurance $34,806 22,302 0294 $11,131 $12,076 $20,186 639500 Security Services $22,689 $23,416 0265 $0 $2,000 $2,000 640100 Building Maintenance & Repairs. $2,000 $2,000 0363 $855 $8,752 $6,000 640200 Grounds Maintenance $6,000 .$6,000 0361 $855 $2,000 $2,000 641500 Maintenance/Repairs: Medical Equipment $2,000 2,000 0363 $3,414 $2,500 $2,500 642500 Paving Supplies/Expenses $2,500 2,500 0436 $0 .$1,000 $1,000 643120 Computer Supplies and Software and Equipment (less $1,000 1,000 0442 $0 $1,000 $1,000 643130 Janitoral Services $1,000 1,000 0433 $855 $1,240 $1,000 643140 Kitchen/Household Supplies and Equipment (less tha $1,000 1,000 0433 $852 $1,000 $1,000 643150 Program Supplies and Equipment (less than $5000) $1,000 .1,000 0323 $2,657 $1,875 $1,875 643160 Security/Safety Supplies $1,8751 1,875 0421 $4,441 $1,500 $1,500 643180 Building/Plant/Machinery Supplies and Equipment (I "$1,500 1,500 0437 $7,431 $13,746 $13,746 643200 Dues and Fees $13,746 13,746

'0324 $4,778 $7,281 $19,000 643300 Subscriptions $19,000 19,000 0324 ..$4,956 $5,000 . $5,000 643401 Postal, Freight and Delivery Services $5,000 5,000 0321 $3,018 *$700 $700 643430 Freight $700 700 0325 $529 $500 $500 643613 Television Advertising $500 500 0332 $0 $0 $0 643620 Printing - Outside Vendors $0 0 0331 $3,335 $575 $5751 643710 Staff Training $575 575 04411 $500 $300 $300 $300 300 Page 14

RIFANS NA RIFANS Natural Account Name BOC 2006 Actual 2007 Actual 2008.Actual 2009 revised 2010 requested 643810 Insurance: Property/Casualty 0326 $8,120 $9,077 $9,100 643820 Insurance- Professional and Occupational $9,100 12,000 0326 $8,120 $4,000 $4,000 643920 Medical Supplies (non-Rx) $4,000 0 10434 $3,939, $3,500 $3,500 643931 Pharmaceuticals $3,500 3,500 0439 $0 $100 $100 644400 Fuel: Gasoline/Diesel Fuel $100 100 0406 $60 $300 $300 644520 Electricity- Central Utilities Fund (for ISF use $300 400 0409 $44,056 $44,590 $46,820 644700 Water - Expenditures for Water Consumption $49,160 53,000 0411 $1,029 $828 $2,000 645200 Rental/Lease: Equipment $2,000 2,000 0382 $1,950 $3,264 $2,760 646200 Mileage Allowance - Personally Owned Vehicles $2,760 2,760 0341 $0 $0 $0 646320 Out-of-State Travel: Lodging $0 0 0342 $1,691 $0 $0 648110 Central Telephone Services (CENTREX) $0 0 0327 $4,230 $3,435 $3,150 648300 Pager (Beeper) Systems $3,150 3,150 0322 " $0 $0 $0 653130 Education Services $0 0 0263 $795 $0 $0 661211 Building & Other Structures $0 0 0661 $0 $0 $0 661605 Furniture and Equipment $0 0

" 0658 $0 661671 $7,247 $7,247 $7,247 7,247 Medical Surgical & Lab Equipment 0657 $0 $0 $0 661701 Computer Equipment ($500 to $4,999) $0 0_.

0660 $5,296 $0 $0 661821 Computer User Licenses ($1,000,000 or more) $0 0 0649 $0 $0 $0 R $0 0 R I ATOMIC ENE'RGY COMMISSION ATOT TOT ... $82..5,1201 $871,6781 $924,6621 $1,005.,8471 ' 1,026,073' Page 15

RIFANS NA RIFANS Natural Account Name BOCI 2006 Actual 2007*Actual 2008 Actual 2009 revised 2010 reg uested 0282050100 2915101 631710 REACTOR SHAR,FUEL ASS AND _

Lect/Ed/Prof/Art Services 633310 0263 $0 $0 $20,000 Other Repairs $2,000 2,000 634410 0363 $0 $0 $2,000 Office Expense $2,000 2,000 0323 $0 $0 $2,000 634940 Educational & Recreational Supp & Exp. $2,000 2,000 0432 $0 $0 634980 Building & Machinery Supp & Exp $0 $0 0 0437 . $0 . $0 $21,000 639510 Freight Cartage and Express $0 0 0325 $0 $0 640200 Grounds Maintenance $0 $0 0 643150 0361 $45,368 $0 Program Supplies and Equipment (less than $5000) $$0 . $0 01 643920 0432 $2,700 $25,000 Medical Supplies (non-Rx) $0 $0 0 0434 $1,733 $72,000 $72,000 646320 Out-of-State Travel: Lodging 1 $3,000 2,000 649120 0342 $5,936 $3,000 $3,000 Fees: Single Audit $3,000 2,000 0459 $65 $0 659990 Other $0 $0 0 661421 0589 $0 $0 Office Furniture & Equip $0 $0 0 0658 -- $0 $0 661431 Other Equip Additional $0 $0 0 06591 $0 $0 661501 Automotive Equipment $0 $0 0 06511 $0 $0 661621 Building & Plant Equipment $0 $0 0 661621 03721 $0 $0 $0 Building & Plant Equipment $0 0 0652 $0 $0 $0 661701 Computer Equipment $0 0 0660 $0 $0 $0 661605 Furniture and Equipment $01 0 0657 $0 $0 REACTOR SHAR,FUEL ASS AND INSTRUMENTATION $0 $0 0 TOT $7,734 $100,000 $100,000 $10,000 10,000 Page 16

RIFANS NA RIFANS Natural Account Name BOC 2006 Actual 2007 Actual 2008 Actual 2009 revised 2010 requested 0282050200 2915102 REACTOR INSTRUMENTATION 631710 Lect/Ed/Prof/Art Services 0 02631 $0 $0 $0 633310 Other Repairs $0 0 0363 $0 $0 $0 634410 Office Expense $0 0 0323 $0 $0 $0 634980 Building & Machinery Supp & Exp $0 0 0437 $0 $0 $0 639510 Freight Cartage and Express $0 0 0325 $0 $0 $0 640200 Grounds Maintenance $0 " 0 0361 $0 $0 $0 643150 'Program Supplies and Equipment (less than $5000) $0 0 0432 $4,731 $67,000 $147,000 643920 Medical Supplies (non-Rx) $0 0 0434 $0 $0 $0 646320 Out-of-State Travel: Lodging $0 0 0342 $0 $3,000 $3,000 649120 Fees: Single Audit $0 0 0459 $0 $0 $0 659990 Other $0 0 0589 $0 $0_

661421 Office Furniture & Equip 0658

$0 $0 0

$0 $0 $0 $0 661431 Other Equip Additional -0659 0

$0 $0 .. .... $0_

661601 661605 Aircraft, Boats and Related Equipment 0651

$0 0 Furniture and Equipment 0657 $298 $0 . $0

$0 $0 $0 $__"___C 0 661605 Furniture and Equipment 0'652. $0 $0 $0 661621 Building & Plant Equipment .. $0 0 0372 $0 $0 $(o 661701 Computer Equippment $0 0 10660 "_'$0 $0 $0 REACTOR INSTRUMENTATION PROGRAM .$0 0 TOT $5,029 $70,0001 $150,000 $01 0 Page 17

RIFANS NA RIFANS Natural Account Name .BOC 1 2006 Actual 2007 Actual 2008 Actual 0282050300 2915103 2009 revised 2010 requested RI GADOLINIUM RESEARCH 640200 Grounds Maintenance 0361 641500 Maintenance/Repairs: Medical Equipment.

0363 $1,070 $3,000 ..$3,000 643150 Program Supplies and Equipment (less than $5000) $3,000 3,000 0432 $0 $01 $0 643150. Program Supplies and Equipment (less than $5000) $0 .0 0323 $45,354 $100,000 $100,000 643180 Building/Plant/Machinery Supplies and Equipment (I $23,000 3,000 0437 $3,876 $14,500 $14,500 643430 Freight $14,500 3,500 0325 *$368 $500 $500 643920 Medical Supplies (non-Rx) $500 500 0434 $0 $0 $0 646320 Out-of-State Travel: Lodging $0 01 0342 $2,476 $7,000 $7,000 649120 Fees: Single Audit $7,000, 5,000 0459 $71 $0 $0 653130 Education Services. $0 0 0263 $14,236 $20,000 $20,000 659990 Other $20,0001 0 0589 $0 $0 $0 661231 Historic Buildings ."0661

$0 0 661421 $5,450 $0 $0 $0 Office Furniture & Equip 0 0658 $0 $0 $0 661601 Aircraft, Boats and Related Equipment $0 0 0651 $0 $0 $0 661605 Furniture and Equipment $0 0 0652 $0 $0 $0 661605 Furniture and Equipment $0 ". 0 0657 $0 $0 $0

-661605 Furniture and Equipment $0 0.

0659 $0 $0 $0 661621 Building & Plant Equipment $0 0 0372 $0 $0 $0 661701 Computer Equipment ($500 to $4,999) $0 0 0660 $3,532 .$5,000 $5,000 RI GADOLINIUM RESEARCH $5,000 5,000 TOT $76,433 $150,000 $150,000 $73,000 20,000 Page 18

RIFANS NA RIFANS Natural Account Name BOCG 2006 Actual 1 2007 Actual 2008 Actual 2009 revised 2010 requested 10282090400 2905101 RICAP - RINSC REACTOR 661231 Historic Buildings 0661 $01 $50,000 .$80,000 $50,000 50,000 0282095511 2895101 URI SPONSORED RESEARCH 611000 Regular Wages 0230 $109,491 $111,767 $116,141 $116,620 119,717 619000 Payroll and Employee Benefits Accrual 0274 $0 $491 $614 $547 571 620100 Employees' Retirement- State Contribution 0280 $16,301 $20,573 $24,123 $11,196 13,799 621120 Medicare (FICA) Hospital Insurance Tax 0281 $8,188 $8,548 $8,885 $4,432 4908 624110 Employer Cost of Employee Medical Insurance 0295 $17,687 $21,428 $24,294 $24,317 26324 624120 Employer Cost of Employee Dental Insurance 02971 $1,106 $1,191 $1,369 $1,684 1785 624130 Employer Cost of Employee Vision Insurance 0298 $231 $268 $277 $408 - 329 626100 Assessed Fringe Benefits Fund Assessment 0283 $4,155 .$4,247 $4,414 $4,432 4908 626300 Retiree Health Insurance 0294 $2,527! $2,693 $4,540 .$1,516 1592 URI SPONSORED RESEARCH TOT $159,6861 $171,206 $184,656 $165,152 f73933 TOTAL - ALL ACOUNTS TOT 1 $1,074,002 $1,362,884 $1,509,318 $1,230,006 1,280,006 Page 19

Form BR-6b Revised 9-2000 BOC Detail Backup Information Program: RI Atomic. Energy Commission Subprogram:

natural FY 2008, FY 2009 Account, account Spent Revised Explanation 2820-10000 611000 482,128 510,473 salaries taken from actual estimates 611300 11,788 12,000 611999 34,166 34,929 643200 19,000 19,000 Health Department License fee increase of $14,000 644520 46,820 53,000 increased electricity use and rate*

Page 20

BR-7 Revised 7/99 BR-7 Revised 7/98 Federal/Restricted Account Estimates Account Number 28'20-50100 CFDA #: 81.114 Account Name: Reactor Sharing, Fuel, & Instrumentation Statutory

Reference:

DE-FG07-01ID14154

.DE-FG07-021ID14388 Explanation of Federal Grant or Restricted Receipt Account Granting Agency: DOE Reactor Sharing funds are derived from a Department of Energy Grant to offset the cost of making the RINSC reactor available for use by other colleges and universities that do not have a reactor.

Grant Period: FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Actual actual Actual actual revised request Balance from Prior Year 92,163 78,419 106,039 137,653 87,653 11,528 Plus: New Receipts/Grant Award 19,666 36,700 35,500. 50,000 0 0 Minus: Indirect Cost Recovery Equal: Total Available 111,829 115,119 141,539 187,653 87,653 11,528 Minus: Expenditures 33,410 9,080 3,886 100,000 76,125 11,5281; Equal: Balance Forward (to new year) 78,419 106,039 137,65530 11,528 Explanation of Methodology page 21

BR-7 Revised 7/98 Federal/Restricted Account Estimates Account Number 2820-50200 CFDA#: 81.114 Account Name: Reactor Instrumentation Statutory

Reference:

DE-PS07-90ER12396 DE-FG07-021D14282 Explanation of Federal Grant or Restricted Receipt Account Granting Agency: DOE Funds are derived from Department of Energy Grants to provide for equipment for university research reactors The staff completed installation and testing of the new digital rod control system in June 2008 and all funds havew been expended. The cost overrun was covered by transfering funds from the Gadolinium fund Grant Period: FY2005 FY2006 FY2007 FY2008 .FY,2009 FY2010 -

Actual Actual Actual Actual Revised request Balance from Prior Year 37,190 45,246 40,216 40,216 40,216 0 Plus: New Receipts/Grant Award 0 43,529 150,000 0 0 Minus: Indirect Cost Recovery Equal: Total Available 37,190 45,246 83,745 190,216 .40,216 0 Minus: Expenditures (8,055) 5,030 43,529 150,000 58,707*

Equal: Balance Forward (to new year) 4 " 40,21_6 4 40,216 (18,491) balance transferred from

-2915103 to cover costs Explanation of Methodology page 22

1RK-7 Revised 7/98 Federal/Restricted Account Estimates Account Number 2820-500300 CFDA #: 81.114 Account Name: Gadolinium Research Statutory

Reference:

DE-FG07-021D!14420 Explanation of Federal Grant or Restricted Receipt Account Granting Agency: DOE RINSC is supporting cancer research of deep seated tumors using cells and rats by exposing them to a neutron beam that is generated in a research reactor Grant Period: FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 9/30/2002 to 9/29/2007 Actual Actual . actual actual Revised request Balance from Prior Year 114,206 125,624 142,740 184,274 119,274 .71,230 Plus: New Receipts/Grant Award 50,000 92,500 85,000 85,000 0 0 Minus: Indirect Cost Recovery Equal: Total Available 164,206 218,124 227,740 269,274 119,274 71,230 Minus: Expenditures 38,582 75,384 43,466 150,000 48,044 71,230 Equal: Balance Forward (to new year) 125,624 142,740 184,274 119,274 71,230 0 Explanation of Methodology pg 23

BRý-7 Revised 7/98 BR-7 Revised 7/98 Federal/Restricted Account Estimates Account Number 2820-15104 CFDA#: 81.114 Account Name: Nuclear Energy Research Statutory

Reference:

DE-FG07-02ID14420 Explanation of Federal Grant or Restricted Receipt Account Granting Agency: DOE This grant suppored the development of a new neutron scattering instrument at RINSC in conjunction with the Physics department at URI Grant Period: FY2009 9/30/2002 to 9/29/2007 Actual Balance from Prior Year 0 Plus: New Receipts/Grant Award 100,000 Minus: Indirect Cost Recovery Equal: Total Available 100,000 Minus: Expenditures 100,000 Equal: Balance Forward (to new year) 0 Explanation of Methodology pg 24

Persons with Disabilities as a Percentage of the Worl FY2007 FY2008 FY2009 FY2010 General Government Administration 2.3% 2.3% 3.0%

Revenue 2.4% 2.4% 1.0%

Business Regulation Labor & Training 2t5% 2.6% 2.7%

Legislature n.s. n.s. n.s.

Office of the Lieutenant Governor Secretary of State 1.6%

General Treasurer 1.2% 1.2% 1.2%

Board of Elections Rhode Island Ethics Commission- 8.3% 8.3% 8.3%

Governor's Office Commission for Human Rights 33.3% 33.3% 33.3%

Public Utilities Commission 2.2% 2.2% 2.2%

Rhode Island Commission on Women Human Services Office of Health and Human' Services Children, Youth, and Families 5.6% 5.0% 5.0%

Elderly Affairs 14.5% 16.5% 16.5%

Health *1.2% 1.3% 1.5%

Human Services 3.0% 3.0% 3.0%

Mental Health, Retardation, & Hospitals 1.0% 1.0% 1.0%

Office of the Child Advocate.

Commission on the Deaf & Hard of Hearing 67.0% 67.0% 67.0%

RI Developmental Disabilities Council Governor's Commission on Disabilities 100.0% 100.0% 100.0%

Commission for Human Rights 33.3% 33.3% 33.3%

Office of the Mental Health Advocate Education Elementary and Secondary 6.5% 4.0% 6.5%

Higher Education - Board of Governors RI State Council on the Arts RI Atomic Energy Commission 11.0% 11.0% 11.0% 11.0% "

Higher Education Assistance Authority 7.2% 7.2% 7.7%

Historical Preservation and Heritage Commission 240

Females as a Percentage of the Workforce FY2007 FY2008 FY2009 FY2010 General Government Administration 37.9% 37.9% 41.5%

Revenue 59.1%. 59.1% 49.0%

Business Regulation 54.0% 54.0% 54.0%

Labor &Training 67.0% 68.2% 68.0%

Legislature n.s. n.s. n.s.

Office of the Lieutenant Governor 40.0% 44.0% 55.0%

Secretary of State 57.1% 59.3% 59.3%

General Treasurer .61.5% 61.5% 61.5%

Board of Elections 42.9% 37.5% 37.5%

Rhode Island Ethics Commission 58.3% 58.9% 58.3%

Governors Office 49.4% 54.3% 51.7%

Commission for Human Rights 66.7% 66.7% 66.7%

Public Utilities Commission 35.5% 35.5% 35.5%

Rhode Island Commission on Women 100.0% 100.0% 100.0%

Human Services Office of Health and Human Services 80.0% 80.0% 100.0%

Children, Youth, and Families 64.2% 65.1% 65.1%

Elderly Affairs 89.0%, 89.0% 89.0%

Health 66.7% 67.3% 68.0%

Human Services 76.0% 76.0% 78.0%

Mental Health, Retardation, & Hospitals 65.5% 66.1% 66.0%

Office of the Child Advocate 1 00.0% 100.0% 100.0%

Commission on the Deaf & Hard of Hearing 33.0% 33.0% 33.0%

RI Developmental Disabilities Council 100.0% - 100.0% 100.0%

Governor's Commission on Disabilities 28.6% 28.6% 28.6%

Commission for Human Rights .66.7% 66.7% 66.7%

Office of the Mental Health Advocate 75.0% 75.0% 50.0%

Education Elementary and Secondary 74.6% 71.0% 74.6%

Higher Education - Board of Governors 57.1% 70.6% 70.6%

RI State Council on the Arts 69.8% 69.8% 69.8%

RI Atomic Energy Commission 33.3% 33.3% 33.3% 33.3%

Higher Education Assistance Authority 73.8% 73.8% 79.5%

Historical Preservation and Heritage Commission 66.6% 66.6% 66.7%

237

Minorities as a Percentage of the Workforce Females as a Percentage of the V1 FY 2007 FY 2008 FY 2009 FY 2010 FY 2007 General Government General Government Administration 9.9% 9.9% 9.0% Administration 37.9%

Revenue . 11.3% 11.3% 10.0% Revenue 59.1%

Business Regulation 4.0% 4.0% 4.0% Business Regulation 54.0%

Labor & Training 13.2% 13.2% 13.4% Labor & Training 67.0%

Legislature- n.e. n.s. n.$. Legislature n.$.

Office of the Lieutenant Governor 30.0% 30.0% 30.0% Office of the Lieutenant Governor 40.0%

Secretary of State 7.1% 7.4% 7.4% Secretary of State 57.1%

General Treasurer 13.3% 13.3% 13.3% General Treasurer 61.5%

Board of Elections 14.0% 18.8% 18.8% Board of Elections 42.9%

Rhode Island Ethics Commission Rhode Island Ethics Commission 58.3%

Govemor's Office 8.7% 8.7% 8.7% Governor's Office 49;4%

Commission for Human Rights 40.0% 40.0% 40.0% Commission for Human Rights 66.7%

Public Utilities Commission 11.1% 11.1% 11.1%

Public Utilities Commission 35.5%

Rhode island Commission on Women Rhode Island Commission on Women 100.0%

Human Services Human Services Office of Health and Human Services

Office of Health and Human Services 80.0%

Children, Youth, and Families 13.5% 14.2% 14.2% Children, Youth, and Families 64.2%

Elderly Affairs 14.5% 16.5% 16,5% Elderly Affairs 89.0%

Health 13.5% 13.1% 14.1% Health 66.7%

Human Services 14.0% 14.0% 14.0.% Human Services 76.0%

Mental Health, Retardation, &Hospitals 18.6% 19.9% 19.0% Mental Health, Retardation, & Hospitals 65.5%

Office of the Child Advocate 10.0% 18.0% 18.0% Office of the Child Advocate 100.0%

Commission on the Deaf & Hard of Hearing Commission on the Deaf & Hard of Hearing 33.0%

RIDevelopmental Disabilities Council RI Developmental Disabilities Council 100.0%

Governor's Commission on Disabilities 35.1% 35.7% 35:7% Governor's Commission on Disabilities 28.6%

Commission for Human Rights 40.0% 40.0% 40.0% Commission for Human Rights 66.7%

Office of the Mental Health Advocate Office of the Mental Health Advocate 75.0%

Education Education Elementary and Secondary 11.0% 13.0% .11.0% Elementary and Secondary 74.6%

Higher Education - Board of Governors 10.6% 17.6% 17.6% . Higher Education -Board of Governors 57.1%

RI State Council on the Arts - RI State Council on the Arts 69.8%

RI Atomic Energy Commission 0.0% RIAtomic Energy Commission 33.3%

Higher Education Assistance Authority 9,5% 9.5% 10.3% Higher Education Assistance Authority 73.8%

Historical Preservation and Heritage Commission 11.4% 11.4% 11.8% Historical Preservation and Heritage Commission 66.6%

Public Telecommunications Authority 20.0% 20.0% 20.0% Public Telecommunications Authority 25,0%

234

RHODE ISLAND ATOMIC ENERGY COMMISSION CAPITAL BUDGET

SUMMARY

FOR FISCAL YEAR 2011-2015 Submitted b\ "R. Atom' njer Commission Terry To i, Ph.D., Director JUNE 19,2009

-n State of Rhode Island FY2011 - FY2015 Z *Budget CapitalImprovement Plan Request System

"* *Office ProjectSummary Report Department ofAdministration Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Priority Ranking Project ID Project Name Total Funding i AECAP. Atomic Energy Asset Protection $330,000.00

,y, June 18, 2009 PrintedBy: Terry Tehan Page I of 1

hr State of Rhode Island FY2011 - FY2015

Budget, CapitalImprovement PlanRequest System S Department Office ofAdministradon ProjectID 's/Order Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Order Project ID Project Name 1¸. AECAP Atomic.EnergyAssetProtection 2, CTC Cancer Treatment Center

.3 LPL Landscape and Parking Lot 4 RINSC7 Front Parking Lot Repair, Resurface & Landscape 5 RINSC5 DecommissioninagRINSC and Reactor Page 1of 1 My, June18, lay, June- 18, 2009 By: Terry Tehan Printed Terry Tehan PriniedBv: Page I of I

. arae of Rhode Island FY2M1 - FY 2015 J , Budget CapitalImprovement Plan Request System

~*4"Office

'IT " Deparime ofA dministrafion Departrment ProjectRequest - Narrativeand Justification (Form2)

Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project ID/Name: AECAP Atomic Energy Asset Protection Project

Description:

Complete security lighting and landscaping at rear of building. Install new ceiling and floor in the former clean room which is being converted into a counting laboratory for the students who utilize the new classroom that was recently completed.

Project Justification:.

The lighting is a security issue and landscaping around the new parking lot is a safety issue. A new ceiling and floor are needed because the staff has had to remove old air handling equipment from the ceiling and benches from the floor which has left asbestos tile exposed.

Project Status:

awaiting funding Strategic Criteria

-Safety Concerns ----------..------- ---------- ----------- ------- ..... ------------- ------------------------- Minor Safety Narrative Lighting is needed for security of the facility. Landscaping is needed to level off around the paved area.Asbestos floor tiles need to be replaced Code Violations Minor Code Narrative asbestos tiles in counting lab Energy Impact ----- ------------- ------------------ ---------------------------------- None Energy Narrative Customer Service ----------------- --------- ------------- -------- ---------- -------- ------------------ Major Customer Narrative Need safe access to new classroom 3eographic Significance ................. ............... ..------------------.-------------- -Local

eographic Narrative gency Mission---- ......--- ........-----

. ------------------ ---------------- ............----------------------------..... Medium gency Narrative eed safe access to classroom and use of counting lab er Financing .........- ......... -- ---- ....-...........-

-- -. . ------ 0 er Narratiive t available-staff is doing much of lab work Way, June 18,2009 PrintedBy: Terty Tehan Page I of2

-f I* State of Rhode Island FY 2011 - FY2015 Budget CapitalImprovement Plan Request System D t of Department of Administration ProjectRequest - Narrativeand Justification(Form 2)

Agency, 052 RHODEISLAND ATOMIC ENERGY COMMISSION Project rD/Name: AECAP Atomic Energy Asset Protection Asset Management- .................................---------------------------------- Rehabilitation Asset Narrative The rear area will be safe and secure and the new lab will replace a 30 year old counting room Operating--............. ...................------------------ - ---- ---- ------------ - -- None Operating Narrative.

None Historic Preservation ..... .. ................ ...................... No Historic Narrative None Budgeted ----------.----------------.---------------------- ------------------------------------. Yes Budget Narrative Critical Life Safety ----------- ----------- ----------- ------------------------------------------ No Critical Life Safety Narrative the parking lot has trenches around the pavement and no lighting C ritical Legal Liability ..........----..................................... --------........... - Yes Critical Legal Liability Narrative OSHA- trip and fall Prior Binding Commitment ----------- --------------------------- -------------------------------- No Prior Binding Commitment Narrative Page 2 of 2 18, 2009 June 18, lay, June 2009 PrintedBy: Terry Tehan

-,lay, PrintedBy: Terry Teh an Page 2 of 2

-. ttate of Rhode Island FY 2011 - FY 2015

Budget' CapitalImprovement Plan-RequestSystem DepartOfficeo Departmentof Administration..

ProjectRequest - Narrative andJustification (Form2)

Agency. 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project ED/Name: CTC Cancer Treatment Center Project

Description:

Dr. Karl ott of Purdue University has developed a neutron beam for treating brain cancers. He has completed all engineering design wrok for installing the filter in the center's nuclear reactor thermal column.

Project Justification:

Dr. Ott has a fifteen year lease to complete this filter which has the potential to cure very difficult brain tumors.

Project Status:

Dr. Ott has expended considerable funds and effor on this project. He is looking for additional outside funding and a treatment protocol to finsih the project.

Strategic Criteria Safety Concerns ------- ------------------- ---------- ------------- ----- --------------- -------------------- None Safety Narrative C od e V iolatio n s ............... ....... ...... ....... ...... ....... ..... ...- N onne------.

e Code Narrative Energy Impact .----------------------------------------..........---------------------------------........ None Energy Narrative Customer Service -_---------- --------- - ------- - --------- ......... -------------- Major Customer Narrative RINSC will do important medical research in treatment of cancerous tumors Geographic Significance --------------------- _------- - - - ------------

.................................------- ------------------- -Regional Geographic Narrative RINSC will serve all researchers in the area of brain and deep seated tumors 8gency Mission --- ---.... ----------- ---------- --------_----- ------------------------------------------. High 4,gency Narrative UNSC will be at the cutting edge of cancer research Iser Financing ------------- ------------ -------- ------------------- 0 rser Narratiive he project is funded through outside financing by NTC Company

s et M a nagem en t ......... . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . ..-- Ne w C on struc tio n

set Narrative year lease -

erating - ----------------------------------------------------------------------------------- None erating Narrative

-day, June 18, 2009 PrintedBy: Terry Tehan Page1 of 2

,t State of Rhode Island FY2011 - FY2015

- j"*Budget CapitalImprovement Plan Request System:

4L ' Office ProjectRequest - Narrative and Justification(Form 2)

. DepartmentofAdministration Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Project ID/Name: CTC Cancer Treatment Center Historic Preservation ...... - ----------------------------------------- *---- ---------

- - No Historic Narrative Budgeted ------- --------- -------------------- ------------------

..-%.------------------------ ---------- No Budget Narrative C ritical L ife'Safety . . . . ... . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . ........ . . . . .......... No Criica-L-e-aet----------- ------ --- ------------------------------- ---------- -------------- N Critical Life Safety Narrative C ritical L egal L iability ------ I--------- * --------------- -..... ......

- No Critical Legal Liability Narrative Prior Binding Commitment . ..... ....... -------- No Prior Binding Commitment Narrative Terry Tehan Page 2 of 2 rsday, June18, rsday, June 18, 2009 PrintedBy:

Printed BY: Terry Tehan Page 2 of 2

o -* vtate of Rhode Island FY2011 - FY2015 c4

,- 'Budget CapitalImprovement Plan Request System tie*-;,Office ProjectRequest - Narrativeand Justification(Form 2)

"A* **Department ofAdministration Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Project ED/Name: LPL Landscape and Parking Lot Project

Description:

Paving of the rear parking lot has been completed with asset protection funds and a new security gate has been installed with federal funds. Landscaping and lighting are still required to complete the work Project Justification:.

This project resolves parking and security issues.

Project Status:.

The remaining work will be completed this year Strategic Criteria Safety Concerns................................................................ None Safety Narrative Code Violations None Code Narrative E nergy Im pact ............ .-.. . . - .. . . . . . . . . .-.-.. . . . .. . . . . None Energy Narrative Cljstomer Service ----........................................... . ...................... Minor Customer Narrative Provide additional parking Geog raphic Significance -------- - ------------------------ . . . . .--.. . .. . . . . . . . . . . . --. .. Local Geographic Narrative More parking for URI Graduate School of Oceanography.

A gency M ission ............................................................................ .................................. Low Agency Narrative.

Better parking services.

User Financin g ........................................... .................... ....... ........ ....... ........ ....... 0 User Narratiive gone Usset M an ag ement ------- .---.. .. .. .. .. . .. .. .. ......... ------.............................................................. New Construction Lsset Narrative rovide additional parking perating ... - ....... ............... -

- ........... None peirating Narrative Pagelof2 rsdav, 2009 18, 2009 rsday. June 18, Printed By: Terry Tehan PrintedBv: Terrv Tehan Paze I of 2

State of Rhode Island

-7, +/-r FY2011 - FY2015

~Budget CapitalImprovement Plan Request System

. Office ProjectRequest - Narrativeand Justification(Form 2)

S** DepartmentofAdministration Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project TD/Name: LPL Landscape and Parking Lot H istoric Preservation ------ - ---------- * .................. - ........

No Historic Narrative Budgeted No Budget Narrative Critical Life Safety No Critical Life Safety Narrative C ritical L egal Liability ......

. .. . .. . .. . ..-- . .. . .. . .. . .. . ... . No Critical Legal Liability Narrative Prior Binding Commitment --------- ..........-----------------

----- ------------------- - ---- -------No Prior Binding Commitment Narrative Terry Tehan Page 2 of 2 itky, June vday, 18, 2009 June 18, 2009 PrintedBy:

Printed By: Terry Tehan Page 2 of 2

.- . State of Rhode Island FY 2011 - FY 2015 Budget CapitalImprovement Plan Request System Office Departmentof Deatn of Administration ProjectRequest - Narrativeand Justification(Form 2)

Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Project ED/Name: RINSC5 Decommissioning. RINSC and Reactor Project

Description:

The Nuclear Regulatory Commission requires an approved Decommissioning Plan prior to shutting down the nuclear reactor. This plan would cost $500,000-800,000 to develop and approval would take around two years. Until the nuclear fuel is removed, the facility must comply with all license requirements..

Project Justification:

The state is responsible for safely decommissioning the reactor and all costs associated with decommissioning. Since the state has no disposal site for class B & C radioactive waste. The ability to complete decommissioning is questionable at this time.

Project Status:

The RIAEC does not plan to decommission the reactor as long as it has adequate funds to operate it safely.

Strategic Criteria Safety Concerns ............................--------------.---------------------- -- I-------.------------.-------------- - -------- Major Safety Narrative The reactor must be decommissioned safely Code Violations- None Code Narrative Energy Impact - ----------- .......... - ------ ------- N one None--

Energy Narrative Customer Service:.---.--------------................ ..-------------- -- ----- ------------ - Major Customer Narrative No more use of the reactor Geographic Significance ------------------------------

-- ........ *-- -.-- .------ - --------- ------- - -Regional Geographic Narrative All users would lose service kgency Mission .... ------ ------ ------ ----------- --------------- -------- -------- Hih kgency Narrative

-he agency would no longer perform its educational and research missions.

Iser Financing .... .. ..... 0

~se Fnanin---------------- ------------ --------------- ------

ser Narratiive one, State responsibility by law

set Management ......-

----------- ------ ------ --------- ----- ------- Infrastructure

.set Narrative rill safely decommission the nuclear reactor

-sday,June 18, 2009 PrintedBy: Ter.-Y Tehan Page1 of"2

State of Rhode Island FY22011 FY 201 - FY2015 .

"lV* Budget CapitalImprovement Plan Request System

*" Office ofAdministration D

Department ProjectRequest- Narrativeand Justification,(Form 2)

Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project ED/Name: RINSC5 Decommissioning RINSC and Reactor Operating .... ----------- ---------------- ----------- ------------- ---------------Major Operating Narrative This project will be very expensive and has potential for excess cost and overrruns.

H istoric Preservation . - -- --------- "....... ; ------------. No Historic Narrative Budgeted - ---------------------------- -------------------------------------------------- No Budget Narrative C ritic al L ife S a fety . . . . . . . . . . . . . . . .

. ------.. . . . . . . .. .Y es Critical Life Safety Narrative The nuclear reactor must be decommissionied safely Critical Legal Liability ------------------ ---------------

.......... - s Critical Legal Liability Narrative The Nuclear regulatory Commission can impose criminal sanctions and fines if he reacotor is not decommissioned safely.

Prior Binding Commitment --------- - -----------------------........

--------------------- ------- Yes Prior Binding Commitment Narrative By law the state is responsible for decommiissioning.

Yday, June 18, 2009 PrintedBy: Terry Tehan Page2 of 2

-' State of Rhode Island FY2011 - FY2015

.,*Office , Budget CapitalImprovement Plan Request System

,, 7 OfDecet ofAdministration Department aProject Request - Narrative and Justification (Form2)

Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project rD/Name: RINSC7 Front Parking Lot Repair, Resurface & Landscape Project

Description:

The front parking lot has broken pavement which is a safety hazard. It needs to be repaved Project Justification:

This is a safety item Project Status:

Awaiting funds Strategic Criteria Safety Concerns ------- .........-

- - . ........ Minor Safety Narrative Parking lot is'in a dilapidated condition.

Code Violations --------------------- -------------------- -------------------------------- None Code Narrative trip-and fall on broken pavement Energy Impact--------------------------------.....-- ......... Nonee Energy Narrative C us to me r S e r vic e ........ . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .

......... M ino r Customer Narrative Better parking and safer parking lot Geographic Significance ------------- ----------------- --------------------------- -------- Local Geographic Narrative Better parking for users Agency Mission ----- - ....... ------------

Low Agency Narrative Better parking User Financing ----------- --------------....... -------- 0-----

Jser Narratiive tone

.sset Management ..... Rehabilitation

,sset Narrative estore the parking lotto good condition perating ........------- -------------------------- -----------------------------------

.......... None perating Narrative rsday, June 18, 2009 PrintedBv: Terrv Teh an page.I of 2

,. State of Rhode Island FY2011 - FY2015

ýBudget CapitalImprovement PlanRequest System

.*z Oep ofAdministration Departmentofdmisrtn ProjectRequest - Narrative andJustification (Form2)

Agency 052 RHODEISLAND ATOMIC ENERGY COMMISSION Project ]D/Name: RINSC7 Front Parking Lot Repair, Resurface & Landscape Historic Preservation - -------------------

------ ----------------------------- ------------- No Historic Narrative Bu dgete d ------- - . .. . . . . . . . . .. . . . . .

. - ------ No Budget Narrative Critical Life Safety - No Critical Life Safety Narrative Critical Legal Liability --------.... - ----------------

------ ------- -- ------------- - ------ -------- ------ No Critical Legal Liability Narrative P rior Bin d ing Com m itm ent ---------

.. - --- No Prior Binding Commitment Narrative rsday, June 18, 2009 PrintedBv: Terry Tehan Page 2 of 2

FY201J - FY2015 Office

C Department ofAdministration CapitalImprovement PlanRequest System Agency Request vs. Plan Funding Source Pre FY2010 FY2010 FY2011 FY2012 FY 2013 FY2014 FY2015 Post FY 2015 Total Agency 052 RHODE ISLAND ATOMIC ENERGY COM Project: AECAP Atomic Energy Asset Protection Status: Plan Federal Funds $30,000 $0 $0 $0 $0 $0 $0 $0 $30,000 RI Capital Plan Fund $100,000 $50,000 $50,000 $50,000 $0ý $50,000, $0 $0 $300,000 Subtotal $130,000 $50,000 $50,000 $50,000 o0 $50,000 $0 $0 $330,000 Status: Request Federal Funds $30,000, $0 $o0 $0 $0 $0 $0 $0 $30,000 RI Capital Plan Fund $100,000 $50,000 $50,000 $50,000 $0 $50,000 $0 $0 $300,000 Subtotal $130,0900: £50,000 SOooo -q50000, so- $50,000 $0 $0 .$330,000

rsday, June 18, 2009 PrintedBy: Terrv Tehan Page I of2

FY201J - FY2015 Office

- *,~*Department of Administration CapitalImprovement Plan Request System Plan 7 ProjectFinancing Financhig PreFY2010 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Post FY 2015 Total Project Name: AECAP Atomic Energy Asset Protection Project Identifier AECAP Priority Ranking:

Status: Request RI Capital Plan Fund $100,000 $50,000 $50,000 $50,000 $0 $50,000 $0 $0 $300,000 Status: Request Federal Funds $30,000 $0 $0 $5.$0 $0 $0Z $30,000

$130,000 $50,000 $0 $0 Subtotal $50,000 $50,000 $50,000 $0 $330,000 irsday,June 18, 2009 . PrintedBy: Terry Tehan Page I oflI

S Budget FY 2011 - FY 2015 4- Office

*. Departmentof Administration CapitalImprovement Plan Request System Project Costs Financing Pre FY 2010 FY 2010 FY 2011 FY 2012 FY 2013 FY.2014 FY2015 Post FY 2015 Total Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project Name: AECAP Atomic Energy Asset Protection Project Identifier AECAP Priority Ranking: I Other. M$1000 $50, *-. $50,000. $50,000 $50,000 . $50,000 $0$0 $350,000 Subtotal $100,000 $50,000 $50,000 $50,000 $50,000 $50,000 $0 $0 $350,000

!,ursday, June 18, 2009 PrintedBv: Terry Tehan Page I of 1

V s State of Rhode Island

Budget FY 2011 -FY 2015

. Office

e. DepartmentofAdministration CapitalImprovement Plan Request System Project Costs Financing Pre FY 2010 FY2010 FY 2011 FY2012 FY2013 FY2014 FY2015 Post FY 2015 Total Agency 052 RHODE ISLAND ATOMIC ENERGY COMMISSION Project Name: AECAP Atomic Energy Asset Protection Project Identifier AECAP, Priority Ranking: 1 Other $100,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $0 $400,000 Subtotal $100,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $0 $400,000 Project Name: CTC Cancer Treatment Center Project Identifier CTC Priority Ranking: 2

...$1500 u00 $0 ZRu 41U .1.1 ,

Subtotal $1,500,000 $0 $0 $0 $0 $0 $0 SO $0 $1,500,000 Project Name: LPL Landscape and Parking Lot Project Identifier LPL Priority Ranking: 3 Other $50,000 $0 $0 $0 $0 $0 $0 $0 $50,000 Subtotal $50,000 $0 $0 $0 $0 $0. $0 $0 $50,000 Project Name: RINSC5 Decommissioning RINSC and Reactor Project Identifier RINSC5 Priority Ranking: 5 Other $0 $0 - $0$0 $0 $0 $0, $30,000,000 $30,000,000 Tliursdav.Atne 18. 2009 Printed Ru! Terry Tehan Page 1 of 2

4 ;. State of Rhode Island

Budget FY2011 -FY 2015

. Office

,* ,. *Department ofAdministratdon CapitalImprovement Plan Request System Project Costs Financing Pre FY2010 FF2010 FY2011 FYF2012 FY2013 FY2014 FY201S Post FY 2015 Total Subtotal $0 $0 so $0 $0 $0 $0 $30,000,000 $30,000,000 Project Name: RINSC7 Front Parking Lot Repair, Resurface &Landscape Project Identifier RINSC7 Priority Ranking: 4 Site Improvements $0 $0 $0 $30,000 $0 $0 $0 $0 $30,000 Subtotal $0 $0 $0 $30,000 $0 $0 $0 $0 $30,000 Thursday. June 18. 2009 PrintedRy: Terry Tehan Paee2of 2

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS RHODE ISLAND ATOMIC ENERGY COMMISSION Rhode Island Nuclear Science Center.

16 Reactor Road Narragansett, RI 02882-1165 June 20, 2009 The Honorable Governor Donald L. Carcieri Office of the Governor State House Room 143 Providence, RI 02903

Dear Governor Carcieri:

This letter transmits the Rhode Island Atomic Energy Commission (RIAEC) FY 2011-2014 Capital Budget Request. If you need any further information or have any questions, please call me at 401-789-9391.

Sincelrely, /

Terry InPh.D.

Direc-, RIAEC

Enclosure:

FY2011-2014 Capital Budget Copy to: Budget Officer Senate Fiscal Staff House Fiscal Staff

State of Rhode Island and Providence Plantations Executive Summary Fiscal Year 2009 Donald L. Carcieri, Governor

The oil painting "Approaching Providence " featured on the cover of this document is by Rhode Island artist Marjorie Ball of East Greenwich, R.I.

and is used with her permission.

The use of this artworkwas arrangedon behalfof the State Budget Office by the Rhode Island State Council on the Arts.

State of Rhode Island and Providence Plantations Executive Summary Fiscal Year 2009 Donald L. Carcieri, Governor

State of Rhode Island and Providence Plantations State House Providence, Rhode Island 02903-1196 401-222-2080 Donald L. Carcieri Governor January 31, 2008 To the Honorable, the General Assembly:

The State of Rhode Island is at a turning point. The Fiscal Year 2009 Budget I propose today reflects the reality of our fiscal situation and points the State in the direction which I believe we must lead the State.

This FY 2009 budget contains general revenue expenditures below our Fiscal Year 2008 spending, both enacted and revised. The reductions in this budget are necessary because our FY 2009 resources will be less than our FY 2008 resources. I am proposing sweeping changes to our State's Family Independence Program in order to preserve the core principals of the federal TANF Program and increase work participation rates. My "Work First" initiative will encourage personal responsibility and promote family independence. I am also proposing major reforms to the State's Medicaid funded programs to promote a person-centered, cost effective health care delivery system with transparency and accountability.

I am proposing efficiencies through reorganization of State government in four major areas, the Office of Health and Human Services, the Public Safety function, the Environmental function, and Advocacy for older persons and persons with disabilities. Concurrently, I am proposing efficiencies through the physical consolidation of agencies in order to reduce outside rental costs and better utilize state properties.

I am proposing to significantly reduce personnel costs by reducing the number of filled FTE positions and contract employees. Since July, we have achieved 379 state employee vacancies and we will reduce the total state workforce by 1,000 this year. My Budget will make state government smaller and more affordable for taxpayers. I have reached out to various state employee labor unions to discuss

To the Honorable, the General Assembly January 31, 2008 Page 2 concessions for both FY 2008 and FY 2009. The funding levels I am recommending for local governments will require them to make similar changes in their government operations, and I have proposed legislation to help them do that. These changes are needed for a structurally sound budget that can be sustained this year and in future years.

I look forward to working with members of the General Assembly on the major issues facing us.

Sincerely, Donald L. Carcieri Governor I

Table of Contents Page Overview ................................................................ 1 T he E conom y .................................................................................................... . ... 12 G eneral Revenues ................................................................ ................................. 15 A ll Sou rces ............................................................................................................. 22 A ll Expenditures ................ ..................................... ................. ....... 23 General Government ......... ...... ......................................... 24 Human Services ......................... ................................. .43 Education ........................................... I.............. 62 Public Safety............................................. .. ............ 71 N atural Resources ....................................................................................... ....... 85 Transportation ............................................................ 93 Appendices Appendix A - Schedules General Revenue Budget Surplus Statement .................................... A-1 Expenditures from All Funds .......................................... ..... .......... A-2 Expenditures from General Revenues .................................................................... A-4 Expenditures from Federal Funds ..................................................... .................. A-6 Expenditures from Restricted Receipts ..................................................................... A-8 Expenditures from Other Funds ........................................................................ A-10 Full-Time Equivalent Positions ............................................................................. A -12 General Revenues as Recommended ...................................................................... A- 14 Changes to FY 2008 Enacted Revenue Estimates ................................................... A-15 Changes to FY 2009 Adopted Revenue Estimates ...................................................... A-16 General Revenue Changes to Adopted Estimates .................................................... A-17 Other Revenue Enhancem ents .............................................................................. A -20 Appendix B - Changes to FY 2008 Changes to FY 2008 Enacted General Revenue Budget ............................................. B-1 Changes to FY 2008 Enacted General Revenue Expenditures .......................................... B-2 Changes to FY 2008 Enacted Agency General Revenue Expenditures .................. B-4 Appendix C - Aid to Cities and Towns Form ula A id to Cities and Tow ns ........................................................................... C-i Fiscal Year 2008 Formula Aid to Cities and Towns ..................................................... C-3 Change in Formula Aid - FY 2008 Revised vs. FY 2008 Enacted ................................... C-5 Fiscal Year 2009 Formula Aid to Cities and Towns ..................................................... C-7 Change in Formula Aid to Cities and Towns ............................................................. C-9 Appendix D - Aid to Schools Education Aid to Local Units of Government ............................................................ D-1

Overview State and local governments are at a crossroad. The path that is chosen will Rhode Island impact state and local governments' ability to provide necessary services to Governments are at a Rhode Islanders at a cost that is affordable in the future. The Governor's Crossroad budget recommendations for FY 2009 present a path leading the State to a position of fiscal balance. In order to achieve structural balance, we must constrain our expenditure growth to a rate less than the rate of growth for our revenues. To do this, we must make major changes in the way the State provides services to its citizens and how they are financed. The FY 2009 budget reflects changes in the three largest categories of expenditures: personnel, assistance grants and benefits, and local aid. Savings in personnel, which commenced during FY 2008, will continue in the.FY 2009 budget. State government will operate with fewer state employees and contract employees. The State's retiree health benefits will be funded for the first time on an actuarially sound basis, providing for a transparent view of the cost of the promises made to current and future retirees. Major changes to the ways in which Medicaid services are procured and delivered are recommended. The Family Independence Program will be restructured to promote work participation and family units. With respect to local government spending, the Governor recommends legislation which will help local governments take control of their spending and be more accountable to their property taxpayers.

General revenue funded expenditures in FY 2009 total $3.272 billion.

This is $130.9 million less than the FY 2008 enacted budget, a 3.8% State GeneralRevenue reduction. All funds expenditures for FY 2009 are $6.889 billion. Of Spending in FY2009 is this total, $3.273 billion, or 47.5 percent, is from general revenue, Less than in FY2008

$1.990 billion, or 28.9 percent, from federal funds, $1.468 billion, or 21.3 percent, from other sources, and $158.2 million, or 2.3 percent, is from restricted or dedicated fee funds.

E Other Funds Spending by Source 21%

Restricted .

Receipts M General Revenue 48%

[] Federal Funds 29%

] General Revenue 1 Federal Funds

Restricted Receipts o Other Funds 1

Overview On a functional basis, the largest share of expenditures are made in the Human Services area, which comprise $2.613 billion, or 37.9 percent of the, total budget. This is followed by spending for Education of $1.985 billion, which comprises 28.8 percent of all spending, and expenditures for General Government of $1.373 billion, equaling 19.9 percent. Public Safety, Natural Resources and Transportation expenditures make up the balance, totaling 917.2 million, or 13.4 percent of the total budget.

Expenditures by Function 0 Trans*po]tatten

Natural Resources 1.4% U Geneoral Governrment 1 00o/

0 Public Safety 6.6%

] Education Q nan Services

28.8% 37.9%

General Government E3 Human Services m Education o1Public Safety m Natural Resources [] Transportation The second way to view expenditures is by major category. On this basis, the largest share of the FY 2009 budget is for assistance, grants and benefits equaling $2.831 billion or 41.1 percent of the total.

This is followed by personnel expenditures, which comprise 22.5 percent, or $1.549 billion, and local aid expenditures, which make up 18.8 percent, or $1.297 billion of the total budget. Expenditures for capital purchases and debt service total $456.8 million or 6.6 percent, with the balance of spending used to finance operating expenditures and-transfers of $139.7 million, or 2.0 percent.

2

Overview Statewide .

0 Debt Service E Operating

Capital Purchases 3% Transfers and Equipment 2% w Personnel 3% 22%

o3 Assistance, Grants and Benefits 42% 42 . ... .......................... ,-. ii : .,"* .O....Gvernrrent

./.',*Aid To Local Units

.. Personnel..E ,Operatig andExpenses SSupplies

Aid To Local Units Of Government oE Assistance, Grants and Benefits Capital Purchases..and Equipment .. Debt Service

[] Operating Transfers Expenditures from general revenues total $3.273 billion for FY 2009. By function, spending by Human Services agencies represents the largest share with expenditures, totaling $1.1 79 billion, or 36.0 percent of the general revenue budget. This is followed by spending for Education, which totals $1.1t26 billion, or 34.4 percent. General revenue expenditures for General Government and Public Safety comprise $552.2 million (16.9 percent), and $377.5 million (11.5 percent), respectively. Expenditures for Natural Resources comprise $38.3 million, or 1.2 percent of total general revenue spending. Transportation expenditures are financed by dedicated gasoline taxes and are not a component of general revenue spending. .

General revenue expenditures by. category are primarily devoted to financing grantS, local aid and personnel. The largest component is local aid expenditures of $1.1 35 billion, comprising 34.7 percent of total general revenue spending. Grant based expenditures of $1 .004 billion represent 30.7 percent of total spending; personnel expenditures of $806.1 million comprise 24.6 percent of the budget; operating expenditures and operating transfers total $159.9 million, or 4.9 percent of the budget; and, capital expenditures and debt service total $167.4 million, or 5.1 percent of the total general revenue budget.

The Fiscal Year 2008 budget enacted by the General Assembly contained language requiring the Governor to plan for two new major consolidations. This is in addition to the consolidation of certain Office Consolidation of of Health and Human Services functions, which are reflected as FTE Agencies transfers from the agencies within the Office of Health and Human Services for FY 2009. For ease in comparing data, the Governor's budget for FY 2009 reflects historical data associated with the Public Safety and Advocacy on a consolidated basis. The two new major consolidations are described in the following paragraphs.

3

Overview Departmentof Elderly The Governor recommends the formation of the Department of Elderly

Affairs and Affairs and Advocacy. In the FY 2008 Appropriations Act, Section 11 of Advocacy Article 3 Relating to Reorganization provided for the following:

SECTION 11. The general assembly hereby requires the governor to submit, as part of his FY 2009 budget, necessary legislation- to create -a department of advocacy; with an effective date of no sooner' than July 1, 2008, and no later than January 1, 2009.

The governor shall consult with the child advocate, mental health advocate, commission on the deaf and hard of hearing,' developmental disabilities council,-and the commission on disabilities in developing the department.

The department shall include the" child advocate, mental health advocate, commission on' the deaf and hard of hearing, developmental disabilities council, and the commission on disabilities.-

The gov'ernor with advice and consent of the senate shall appoint the child advocate and the mental health 'advocate, as detailed in existing statutes. All agencies"combined 1 into this new department shall maintain existing duties as set forth in cduirrent law.

The Governor has reviewed the proposed composition of the department and recommended only three of the five agencies be merged into the existing Department of Elderly Affairs to create the new Department of Elderly Affairs and Advocacy. Under the leadership of an existing cabinet director, the functions of these agencies would be best integrated within the Health and Human Services Secretariat. It is recommended that the Office of the Child Advocate and Office of the Mental Health Advocate remain independent.

For purposes of budget presentation, the following agencies have been merged into the new Department of Elderly Affairs and Advocacy: Departmeizt of Elderly Affairs, Commission on the Deaf and Hard of Hearing, Developmental Disabilities Council, and the Governor's Commission on Disabilities.

The Governor recommends the formation of the Department of Public Safety. In the FY 2008 Appropriations Act, Section 14 of Article 3 Departmentof Relating to Reorganization provided for the following: Public SECTION 14.. The general assembly hereby Safety requires the governor to'submit, as part of his FY 2009 budget necessary recommended legislation to create a department of public safety, with an effective date of no sooner than July 1, 2008, and no later than January 1, 2009. The director of the department shall be the superintendent of the state police who shall be appointed by the governor with the advice and consent of the senate.

The governor shall include the state police, E-911, emergency telephone system division, the state fire marshal who shall be appointed by the governor with the advice and consent of the senate, fire safety code board of appeal and review, justice commission, municipal police training academy, sheriffs and capitol police.

The department shall consolidate communications and overhead expenditures.

4

Overview The Governor has reviewed the proposed composition of the -department and recommends one modification. It is recommended that the Fire Safety Code Board of Appeal and Review remain independent due to opinion that it is not directly related to emergency response, law enforcement and security services, but might be.better aligned to the Building Code Commission withinthe Department of Administration.

For purposes of budget presentation, the following agencies have been merged into, the new Department of Public Safety: State Police, E-911 Emergency Telephone System, State Fire Marshal, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice Commission..

Department of For FY 200,9, ihe Governor also recommends merging the Coastal Environmental Resources Management Council and the Water Resources Board into the ManagementAssumes Department of Environmental Management in order to reduce overhead All Environmental costs and duplication of efforts. The savings -will. be realized by Functions . eliminating 9.0 FTE positions and replacing contract legal services with a state employee, thereby. reducing the number of FTEs required to perform the functions *of the Council from 3,0.0.. positions to 22.0 positions. The Water Resources Board will be merged into the Office of Water.Resources, and savings will be realized by eliminating 5.0 FTE positions and adding an accountant position and a chairperson position, thereby reducing.the number of FTEs required, to perform the functions of the Board from 9.0 positions to 6.0 positions. . .

Movement of State For FY 2009, the Governor also recommends the movement of,several Agencies from Rental state agencies from their physical locations to create operating Space for Efficiencies efficiencies and savings of taxpayer dollars.. This includes agencies and Savings, , moving between state owned, properties as is the case of the hospital consolidation plan, ,the centralization of back office functions within the Office of Health and Human Services, and, the consolidation of the advocacy agencies with the Department of Elderly Affairs. The plan also includes the movement of agencies from private rental property to state facilities. The plan includes the movement of the Department of Business Regulation from rented space to the Center General Building as a co-occupant with the Department of Labor and Training, and the movement of the Office of Higher Education, the Labor and Training Board of Review, to the Hazard Building. These moves will save over $1.0 million in FY 2009. Additionally, the State Police will remain at their Scituate location, with Rhode Island Capital Plan funds providing for expanded facilities rather than use the general 'obligation bonds which were authorized for a larger, more expensive facility. The Governor does not recommend the construction of a new Blackstone Valley Courthouse. The Governor recommends the state re-use of the DCYF Administration/School Building which will be vacated upon completion of the new DCYF facilities. The capital budget uses funds available in the enacted budget to renovate the building for use as the state's Data Center. This will allow for the centralization of all Information Technology personnel at one location, and movement of hardware from the Johnston site.

5

Overview During FY 2007, the Governor and legislative leaders of the General Assembly requested technical assistance from the -Council of State Corrections Governments (CSG) Justice Center to develop policy options that Reform would address the accelerated growth in inmate population from 15.

percent in the period 1994-2994 to a possible 21 percent over the next ten years. These options were intended to reduce inmate populations (thus reducing spending for corrections), increase public safety, and improve conditions in the neighborhoods to which released offenders would return.

In April 2007, a "working group", consisting. of representatives from the District Court, Superior Court, the Attorney General, the Public Defender, the.Senate Majority Leader, the House Finance Committee, the Office of the Governor, the Department of Corrections and the Council of State Government, was formed to consider the policy options generated by the CSG. After discussion and suggestions from all members were considered, the-group formulated the following measures which are included in'Article 7 of the FY 2008 Supplemental Budget request:

Standardized Earned Time for Good Behavior: The current statute allows for good behavior awards at a rate of one day per month for each year of sentence up to ten years, capped at ten days per month, and limited to inmates serving sentences greater than six months'. The proposed change would, following the practice in other jurisdictions, extend the reduction to all short-term (one month or more) inmates (except those serving for life or a sentence for violation of sexual offenses). The option is expected reduce the inmate population by an average of 84 in FY 2009, 104 in FY 2010, and 259 in FY 2013.

Earned Time for Participation in Rehabilitation Programs: The proposed change wouldlaward a sentence reduction of up to five days per month for each month of active participation in a substance abuse, job training, or other rehabilitative program that has been identified as meeting a need specifically identified in the inmate's case plan, and a thirty day, reduction upon completion of such a program. The proposal would create incentives for offenders to use programs that would increase the likelihood of successfully transitioning to the community upon release, and thus would' reduce recidivism. The option is expected reduce the inmate population by an average of 55 in FY 2009 and 58 in FY 2010.

Improve Parole Board Use. of Data: The proposal directs the Board to develop guidelines for the release of an offender: based on his risk to publicsafety, as determined by a risk assessment analysis being developed by the Board. The proposal would ensure that the decision-making process is both data-driven and science based. The option is expected reduce the inmate population by an average of 43 in FY 2009 and 45 in FY 2010.

In order to secure long-term balance in the state's expenditures, the Entitlement Governor proposes to redesign both of the state's two largest entitlement Reform programs, Medicaid and Family Independence cash assistance. Reform legislation is included in the budget act for both programs. For Medicaid, the reform will convert the service delivery model from provider based to client-centered in programs in the Departments of Human Services, Children, Youth and Families, and Mental Health Retardation and Hospitals. The program will emphasize personal responsibility, home and community-based solutions, innovative delivery of services. Work First, the new cash assistance program, will also emphasize personal responsibility, with an emphasis on moving parents to unsubsidized employment and stablizing families. Job search and orientation supports will be combined with transportation and child care to create a setting and mindset leading to successful employment outcomes.

These reforms will lead to $66.7 million of general revenue savings in FY 2009.

6

Overview For FY 2009, the Governor recommends maintenance of total state aid at revised FY 2008 levels. Furthermore, he has. proposed a number of Local Government Aid initiatives to assist municipalities in reducing costs. In his "Municipal and Spending Fiscal Control and Responsibility Act", the Governor proposes initiation of a library collection of all municipal labor contracts. This is supplemented by an Article in the Appropriations Act whichrequires fiscal impact statements for all new municipal collective bargaining agreements two weeks before they can be signed. The Governor has also proposed applying the property tax cap to fire districts and revisions to retirement age and years of service requirements for municipal employees in the 32, communities. which participate in the state administered municipal employees retirement system. This will make:the municipal system comparable to the state reforms enacted. This change .is projected to save .over $4 million per year. In the FY 2008 Supplemental Appropriations Act, the Governor has proposed a statewide health insurance contract which would result in lower administrative fees and would provide for standardized-plan designs. He has also proposed that municipal employees be required to share the costs of health, insurance :at .the. same levels as state employees. For municipal employees, these two changes would result in annualized savings of over $7.5 million. Savings would be even greater for school district employees. Lastly, he has proposed in the new Appropriation Act that new accounting standards be formulated that. are comparable with the new standards recently, implemented for all school districts.

The Governor recommends that state government operate with fewer Statewide Personnel state employees and that several measures be taken to reduce the overall SavingsandReduction cost of the workforce. The Governor recommends targeted reductions -inForce and layoffs in personnel in certain agencies, based upon specific programmatic reductions (629.7 FTE), reflected as- "program reductions". It is projected that ,this reduction* will save $618,473. from -

all funds in. FY 2008 and $31.0 million in FY. 2009 in salaries alone. Savings including benefits are estimated to be $41.0 million in FY 2009. These, savings, are budgeted in the various departments and agencies. These are reflected as program reductions-in each agency, and can include both filled and vacant FTE positions. The recommendation also includes $60.6 'million in savings, of which $33.4 million is general revenues, for personnel savings 'that are currently ;being discussed with- union leadership. For display purposes, $33.6 million is reflected in medical benefit: savings and $27.0 million in salary and benefit savings. Additionally, the Governor's recommendation assumes $30.5 million in savings from all sources, $16.8 million from general revenues, from permanent position eliminations as a result of retirements for FY 2009. There are currently over 3,100 employees eligible to retire, whether by age or years of service. The Governor's recommendation assumes that 300 non-critical positions will be eliminated upon the incumbent's retirement. Overall, the state employee full time equivalent positions will be reduced from the FY 2008 enacted level of 15,987.3 to 14,796.6 in FY 2009, a reduction of 1,190.8 positions. Additionally, it is the Governor's goal to reduce contract employees by the 158.4 full time equivalent positions.

The Governor's recommendation includes six uncompensated leave days Uncompensated for all state employees. in FY 2008 that will reduce salary and benefit Leave Days expenditures by 2.3 percent. The budget assumes all state employees will receive less pay either for one day less pay per month (two days in May) or reduced paychecks for the remainder of the year. Employees will be credited one day of personnel leave in the pay period in which the salary reduction occurred. The personal 7

Overview leave must be discharged by December 31, 2008, and is not eligible for carry over to the next calendar year or for severance payments upon separation from state service. There are no exemptions for anyclass of employee, although limited period or seasonal employees will not be affected. Implementation of this measure will save $.14.8 million in general revenues, and-$25.6 million from all fund sources in FY 2008.

These savings are depicted within each department or agency.

The Governor recommends that the state fund retiree health benefits on an actuarial basis and amortize the unfunded liability over a thirty year " Retiree Health period,. This funding mechanism will provide transparency with respect Unfunded Liability to the ,true cost of the benefit offered': to state -employees' after employment. In compliance with GASB Statements 43 and 45, "Other ang en del Post Employment Benefits," in July, 2007, theý State obtained an Changes inEligibility actuarial estimate of the unfunded liability relating to retiree medical and Co-Share benefits. The unfunded liability as of June 30, 2005 was estimated to be approximately $534.3 million, including $427.3 million for State employees, $54.6 million for the 'Board of Governors, $32.2 million for State Police,,$17.7 million for the State's share for teachers, $216.million for Legislators, and $68,000 for Judges. This, was.calculated using a long term investment rate of return of 8.25%. The annual required contribution- as a' percentage of payroll would be 5.46%, 2.81%, 20.06%, .015%, 14.61% and .09% respectively. The enacted FY 2008 budget does not include funding on an actuarial basis, but continues to.provide funding for the pay-as-you go costs.

In order to address this unfunded liability and reduce the ongoing cost to the' taxpayer, the Governor recommends modifying eligibility requirements and co-share percentages for retiree health. Employees retiring after June 30, 2008 would be eligible for retiree 'health coverage through the state if they are age 59.or over with a minimum of 20 years of service. Currently an employee with over 10 years of service as of July 1, 2005 is eligible for retirement with at least 28 years of service at any age, or at least 10 years of service and at least age 60, and is therefore eligible for retiree heath. For those 'employees with less than 10 years of service prior to July 1, 2005, the employee must be age 59 with at least 29 years of service, age 65 with ten years of service,.or age 55 with 20 years of service. The Governor's proposal also modifies' the co-share percentage to require a 20 percent co-share on the full cost of the early retiree or post-65 plan in which the retiree is enrolled. Currently, early retirees'pay a co-share based on years of service on the active employee rate. For employees over age 60 with at least 28 years of service, the state pays 100 percent of the cost of the plan. The rate of payroll would. be reduced from the actuarial required rate of 5.46% without any changes, to 3.86% with the proposed changes. According to the actuary, the rate of payroll charge under the current pay as you go system would be 3.28%. These changes are projected to save $6.1 million from general revenues and $9.8 from all funds in FY 2009.

The Governor's recommendation utilizes a surplus generated in the Savings in Employee health insurance fund to offset the costs of FY 2008 medical benefits.

Medical Benefits State agencies will not be charged for the cost of employees medical benefits for the last three pay periods in FY 2008. This is estimated to save $11.0 million from general revenues and $19.3 million from all fund sources, net of corresponding percent of premium co-share reductions.

For FY 2009, the Governor's recommendation lowers the cost of budgeted medical insurance based upon current employee claims data adjusted for inflationary increases of 9.9 percent. This is estimated to save 8

Overview

$6.2 million from general revenue sources and $11.2 million from all fund sources compared to current service levels, which is a reduction of 6.5 percent.

In FY 2008, the Governor began a comprehensive review of all contract employee positions in state government. A total of 657 positions were identified in the Executive Branch, and these positions were categorized ContractEmployee to determine which positions should remain as contractors and which Reductions should be eliminated. Those positions that are either financed exclusively through a federal grant, highly technical, or on-call/intermittent were maintained as contract employees. A total of 193 positions, which comprised' a full-time equivalent of 158.4.positions, were identified for elimination. This reduction is estimated to save $9.8 million from all sources of funds inFY* 2009. Through the end of December 2007, 58 positions, equating to 50.6 FTEs, have been eliminated resulting in $2.8 million of savings.

The Governor recommends the privatization of Housekeeping and dietary Privatizationof services at the Eleanor Slater Hospital and dietary services at the

. Dietary and Veterans' Home in FY 2009, saving an estimated,$4ý8 million from all Housekeeping Services sources of funds, of which $2.5 million is from general revenues.

The Governor's recommendation includes* the privatization of dietary services at the Pastore and Zambarano campuses of the Eleanor Slater Hospital. Currently, these services are performed in-house. There are 88.0 FTE positions involved in providing dietary services to the patients at Eleanor Slater Hospital. The total personnel costs associated with these positions in FY 2009 are projected at $5.5 million and the cost of food is $1.3 million. The cost to privatize this function is estimated at $2.1 million, which is derived by multiplying the industry estimate ($5.23). per meal by the total number of meals (410,734). It is estimated that privatization of dietary services in FY 2009 will save

$3.5 million from all funds, of which $1.5 million is, general. revenues, net of unemployment benefits and medical severance costs...

The Governor recommends privatizing the housekeeping services at the Pastore and Zambarano campuses of the Eleanor Slater Hospital. Currently, these services are performed in-house. There are currently 67.0 FTE positions involved in providing housekeeping services to the patients at Eleanor Slater Hospital. The total personnel costs associated with these positions in FY 2009 are projected at $3.9 million. The cost to privatize this function is $2.4 million,($5.50 per cleanable square foot), as determined by a response to a Request for Proposals. It is estimated that privatization of housekeeping services in.FY 2009 will save

$578,833 from all funds, of which; $260,475 is general revenues, net of unemployment benefits and medical severance costs.

The Governor recommends privatizing the dietary services at Rhode Island Veteran's Home. Currently, these services are performed in-house. There are 28.0 FTE positions involved in providing dietary services to the patients at the Veterans' Home. The total personnel costs associated with these positions in FY 2009 are projected at $1.8 million and the cost of food is $812,000. The cost to privatize this function is estimated at $1.5 million which is derived by multiplying the institution estimate ($5.40) per meal by the total number of meals (285,138). It is estimated that privatization of dietary services in FY 2009 will save $686,911 from general revenues.

9

Overview Privatizationof The Governor recommends the privatization of the following activities in Corrections the Department of Corrections:

Functions

_ _ __ The Governor recommends the privatization of the counseling and case management function. Currently this unit is responsible for the initial classification of inmates (gathering information, to assess the risk factors involved in facility assignment),

counseling inmates during periodic reclassifications and discipline board-actions, counseling concerning good time and other information, and providing information to the Parole Board that enters into the grant of parole. The privatization would change the focus of the unit efforts to initial re-entry services by stressing case management and programming suited"to individual inmates. The Department feels that there are several community-based agencies with specialized expertise in providing services, as well as providing a link in the community once the inmate is released. The Department proposes a staff reduction of 33.0 FTE's (27.0 adult counselors; 4.0 classification counselors, 1.0 counseling services coordinator, and 1.0 coordinator of education) withl savings Of $2.7,million, as well as contract services for counseling and case manage-fient services of $2.3 million, for a net savings of $451,247. The budget recommendation also includes $551,370 in unemployment and medical benefit severance costs, for a net additional cost of the proposal of $100,024.

The Governor recommends the issuance of a statewide master contract for dental services, eliminating the need for state employees. Currently a majority of dental services are provided by contracted community based suppliers. Savings from elimination of state employees of $542,498 would be offset by an estimated& contract addition of $300,000 for such services. The budget recommendation also includes

$100,249. in unemployment and medical benefit severance costs, 'for a net savings of the' proposal of

$142,249. This would affect 4.0 FTE's and 10contract employees (6.0 dentists, 2.0 dental assistants; and 2.0 dental hygienists) would be affected.

The Governor recommends privatization of the Central Distribution Center (CDC). Currently the CDC is responsible'for purchasing food staples, janitorial items, and other iteinis for warehousing, and deliveryto state agencies, distributing USDA commodities under the Emergency Food Assistance Program to local community action agencies, the 'Food Bank, soup kitchens,' etc., :and distributing USDA commodities under the school lunch program to local school districts. Because of increasing salary and benefit costs, the surcharge charged to other state agencies has increased. 'Despite position eliminations, the program has operated at a deficit for the past two years. Sales have also decreased as agencies seek more economical means of obtaining supplies. Alternative models in such states as Connecticut, Colorado, Oklahoma, Maryland, North Dakota, and Mississippi use private companies and direct distribution, rather than centralized warehousing. The recommendation involves a reduction of 14.0 FTEs in the Internal Service Fund program, as well as a reduction in merchandise purchasing and warehousing expenditures, a total of $6.1 million. The Governor's recommended budget includes $409,258 in general revenue operating savings to be achieved by contracting with a private firm to perform the warehousing function, which would reduce the surcharge on purchased goods. It is expected that savings would occur by reducing the surcharge on food items from 25 percent to 10 percent. Funding of $211,535 was added to the Internal Service Fund budget for unemployment and medical benefit severance costs.

10

Overview The Governor recommends the privatization of all janitorial, services at Privatizationof Davies both the Dayies Career and Technic~il School and the Rhode Island and Schoolfor the School for the Deaf Currently there are 6.0 FTEs at. Davies and 3.0 DeafJanitorial FTEs at Deaf that perform janitorial services, for a total personnel cost of Services .$602,912. The cost to privatize these services is estimated at $358,696.

Net of unemployment and .medical severance costs, this proposal is estimated to save $122,839 from general revenues, in FY 2009-.

Transportation and the environment continue to be high priorities of the Governor. The FY 2009 budget includes two proposed. bond referenda for the November 2008 ballot. These are a $35.0 million referendum for a open space, farmland preservation, recreational deve lopment, and for LimitedNewDebt Narragansett Bay and Watershed Restoration and an $87.2 million Financing referendum for transportation, including commuter rail and. R!PTA buses.

Due to the current fiscal environment facing the state, the Governor has chosen to significantly limit the number and amount of bond referenda this year. The capital improvement plan includes several new bond initiatives, particularly in higher education, that would be. proposed for inclusion on theNovember 2010 ballot.

The Governor is also requesting approval for two new Certificates of Participation issuances in FY 2009.

The first would authorize $23.9 million in debt to renovate two buildings at the Pastore Government Center, one for use as office space by. human services agencies and the other for use by the Registry of Motor Vehicles as their new headquarters. Once completed, the state will save significant funding due to the elimination of outside rental costs.

The second request is for a $52.0 debt issuance to fund energy conservation projects at both the Pastore Government Center and the Zambarano Campus of the Eleanor Slater Hospital. These .projects, once completed, will result in significant reductions in energy use and thereby expenditure savings more than sufficient to cover the debt service costs. To undertake these projects, the State will enter into a contract with an energy services company that will guarantee the savings over the term of the debt issuance.

11

The Economy Introduction The Consensus Revenue Estimating Conference (REC) convenes at least twice each year, typically within the first ten days of May and November. Historically, the purpose of the conference was confined to forecasting current and budget year revenue estimates. During the 1998 legislative session, the Revenue Estimating Conference statutes were modified to also require the adoption of a:consensus economic forecast. Prior to the November 2001 conference, the conferees adopted a forecast for Rhode Island total employment, Rhode Island personal income, and the U.S. consumer price index for all urban consumers (CPI-U) covering the state's prior fiscal year, its current fiscal year, and the budget year.

In 2001 the Rhode Island Division of Taxation procured an updated personal* income tax simulation model. This acquisition required that additional economic variables be forecasted at the Revenue Estimating Conferences beginning with the. November 2001. conference. Thus, in addition to Rhode Island total employment, Rhode Island personal income and the U.S. CPI-U, forecasts for Rhode Island wage and salary, income, Rhode Island farm income, Rhode Island non-farm business income, Rhode Island dividends, interest and rent, Rhode Island total transfer payments, the Rhode Island unemployment rate, the interest rate for ten year U.S: Treasury notes, and the interest rate for three month U.S. Treasury bills are also agreed. upon at the Revenue Estimating Conference. Finally, the consensus forecast of these economic variables now includes the prior calendar and fiscal years, the current calendar and fiscal years, the budget calendar and fiscal years, and the next seven calendar and fiscal years..

ECONOMIC FORECAST This section describes the economic forecast used as input for the Revenue, Estimating Conference's consensus revenue estimates.

The Revenue Estimating Conference incorporates a range of economic forecasts and economic information in makin'g revenue estimates. During its November 2007 meeting, forecasts were presented by Moody's Economy.com and Global Insight. The Rhode Island Department of Labor and Training (DLT) also presented current employment and labor force trends.

As reported at the November 2007 Revenue Estimating. Conference, Rhode Island's labor market continues to display a shift from a manufacturing to a service based economy resulting in a gradual and positive rate of employment growth. The Rhode Island Department of Labor and Training reported that the unemployment rate rose. slightly through the third quarter of CY 2007. Rhode Island's total unemployment has consistently been below last year's unemployment figures through the three quarters of CY 2007. Rhode Island's unemployment rate remained above the national average for the fifth straight month in September 2007. Between September 2006 and September 2007, employment gains were made overall (+5,300) and in the following sectors: Leisure and Hospitality (.+1,200);

Professional and Business Services (+1,800); Educational & Health Services (+1,600); Construction

(+ 1,100); Other Services (+ 400); Financial Activities (+ 200); and Information (+ 100). The sectors experiencing year-over-year losses were Manufacturing (-1,400); Government (-700); and Trade, Transportation & Utilities (-100). At the November 2007 Revenue Estimating Conference, fiscal year forecasts for the following economic variables were agreed upon (all measures are for Rhode Island unless otherwise noted): total employment, total personal income, wage and salary income, dividends, interest and rent, the unemployment rate, the U.S. consumer price index, the interest rate for ten year 12

The Economy _

U.S. Treasury notes, and the interest rate for three month U.S. Treasury bills. Furthermore, the forecast of these economic variables includes the relevant calendar years and covers the period from 2008, through 2013.

The principals agreed that total non-farm employment would grow from 496.1 .thousand jobs in FY 2007 to 501.2 thousand jobs in FY 2008 and. 506.2 thousand jobs in FY 2009.. This gain of approximately 5,050 jobs in FY 2008 is about 1,283 more than forecasted in May 2007. In addition, the November 2007 REC forecasted job growth in FY 2009 of approximately 5,050 jobs, ,or . 1.0 percent growth, is about 800 more than forecasted in May 2007. Further, forecasted job growth for FY 2010 of 5,300 jobs, or 1.1 percent, is 500 jobs more than forecasted in May 2007. The adopted growth rates for non-farm employment from FY 2011 and FY 2012 of 4,300 and 3,900 represent a revision downward from the May 2007 Conference estimates of 5,100 jobs, or 1.0 percent growth and 5,100 jobs, or 1.0. percent growth, respectively. InNovember 2007, FY 2013 non-farm employment was estimated, for the first time,. at the rate of 0.8 percent, or 3,900 jobs%. -This employment refers to the number of. Rhode Island residents working, as opposed. to the -number of jobs in Rhode Island establishments.

In addition, Rhode Island's unemployment rate is forecasted to increase to 4.9 percentin FY 2008 from 4.8 percent in FY 2007 and then remain at its steady state equilibrium at 5.0 percent'for the period through FY 2013.

The November 2007 Conference forecasted that personal income peaked in FY 2007 and will slow through FY 2009 before accelerating in FY 2010 followed by a trailing off through FY 2013. The November 2007 Conference estimates for personal income .growth represented an upward revision in FY 2008 from 4.5 percent growth to 4.9 percent growth followed by downward revisions through 2012, averaging 4.3 percent growth for the FY 2009 through FY 2012 period down from dan average of 4.8 percent growth.. Like non-farm employment growth, personal income growth is expected to jump from 4.3 percent in FY 2009 to 4.5 percent growth in FY 2010 followed by a slowing trend. In FY 2009 personal income growth is expected to grow at a rate of 4.3 percent. The new consensus estimate for FY 2013 is 4.2 percent giowth, consistent with the principals' FY 2012 consensu's estimate of 4.2 percent personal income growth.

The November 2007 Conference forecasts consumer price inflation to slow to 2.4 percent in FY 2008 from 2.6 percent in FY 2007, bottom out at the trough with 1.9 percent growth in FY 2009, before climbing back to 2.0 percent growth in both FY 2010 and FY 2011,. rising further to 2.1 in FY 2012 and FY 2013. The average CPI is 2.1 percent for the six year fiscal period from FY 2008 through FY 2013. Testimony provided by Moody's Economy.corn and Global Insight indicated that should oil prices remain in the $90 plus per barrel price range for longer than anticipated, there could be an impact on consumer goods prices that rely on oil as an input or in transport costs.

The consensus economic forecast for the fiscal years 2008 to 2013 agreed upon by the conferees at the November 2007 Revenue Estimating Conference is shown in the following table. This consensus economic forecast reflects the belief that the employment and income growth will remain slow but positive while the unemployment rate remains steady through FY 2013, with lower paying jobs as well as moderating consumer prices which will maintain moderate economic growth in Rhode Island with the regional risk of the positive impacts from continued job creation diminished by lower pay as well as nationwide risk from oil price, financial market, and credit market uncertainty.

13

The Economy The November 2007 Consensus Economic Forecast Rates of Growth FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Total Employment 1.0% 1.0% 1.1% 0.9% 0.8% 0.8%

Personal Income 4.9% 4.3 % 4.5% 4.3 % 4.:2% 4.2%

Wage and Salary Income 4:5% 3.7% 4.0% 3.9% 3.8% 3.7%

Dividends, Interest and Rent 6.5% ý'6.1% 6.4% -6.0% 5.4% 4.9%

Nominal Levels U.S. CPI-U 2.4%. 1.9% 2.0% 2.0% 2.1% 2.1%

Unemployment Rate 4.9% 5.0% 5.0% 5.0% 5,.0% 5.0%

Ten Year Treasury Notes, 5.0%. 5.3% 5.5% 5.5% 5.5% 5.5%

Three Month Treasury Bills 4.3% 4.3% 4.6% 4.6% 4.5% 4.5%

14

General Revenues Introduction The Governor's recommended budget is based, on 'estimated general revenues. of $31440 billion in FY 2008 and $3.347 billion in FY 2009. ýAnnual estimated growth during EFY 2008 and FY 2009 is 6.5 percent and -2.7 percent, respectively. Estimated deposits of $68.8 million and $73.7 million will be made to the Budgei Reserve and Cash Stabilization Fund during these fiscal years. The contributions to the Budget Reserve and Cash Stabilization Fund are funded by limiting annual appropriations to 98 Percent of estimated revenues in FY 2008 and 97.8 percent of estimated revenues in FY 2009. The revenue estimates contained in the Governor's FY 2008 supplemental and FY 2009 recommended budgets are predicated upon the revenue estimates adopted at the November 2007 Consensus Revenue Estimating Conference (REC) and the Governor's recommended changes to the adopted general revenues.

The Consensus Revenue Estimating Conference is required by' tatute to convene at least twice annually to forecast general revenues for the current year and the budget year., based upon current law and collection trends, and the, consensus economic forecast. The Conference members are the State.:Budget Officer; the House Fiscal Advisor, and the Senate Fiscal. Advisor. Typically, the two required meetings of the Consensus Revenue EstimAting Conference*6ccir c in NoCmfer" anaiM M of each fiscal year.

FY 2008 Revised Revenues The November 2007 REC revised the enacted FY 2008 revenue estimate down by $113.3 million, a decrease of 3.3 percent. As shown in the General Revenue Changes to Adopted Estimates table in Appendix A of this document, the Governor's revised FY 2008 budget recommends an increase of

$80.6 million in revenues. This $80.6 million in recommended changes to the FY 2008 adopted estimates breaks down as follows:

e $26.0 million from repayment from RI Housing and Mortgage Finance Corporation. for expenditures related to the Neighborhood Opportunities Program;

$24.8 million in various taxes (primarily Personal Income Tax) from capping the usage of Historic Structure Tax Credits at $20.0 million; a $14.7 million resulting from advancing the Eleanor Slater Uncompensated Care Distribution;

$5.2 million from adjusting the November Revenue Estimating Conference Business Corporations Tax estimate to avoid double counting the FY 2007 audit adjustment for APC

$5.0 million transfer from the RI Resource Recovery

$2.0 million transfer from the available cash in the Underground Storage Tank (UST)

Replacement Fund; 0 $1.3 million from transferring the available cash in the Correctional Industries Fund;

$700,000 for the payment resulting from the Medical Malpractice suit decision;

$323,976 from transferring the available cash from the Refunding Bond Authority;

$300,000 from increasing the grant from RI Housing and Mortgage Finance Corporation for providing emergency housing assistance vouchers to eligible clients; 15

General Revenues

$275,000 for requiring fees be paid for Traffic Tribunal court costs equal to the amount of the fine assessed in lieu. of the fine assessed when the Violation is dismissed for a good driving record; and

$87,500 from fines associated with prohibiting handheld mobile telephone use while driving.

FY 2008 Revised Revenues vs. FY 2007 UnauditedRevenues Recommended revenues for FY 2008 are based upon a $228.7 million increase in total general revenues over unaudited FY 2007, or growth of 6.5 percent. The largest contributing factor to this increase is the securitization of tobacco settlement proceeds which resulted in general revenues of $42.5 million in FY 2007 and $124.0 million in FY 2008; anincrease of $81.-5 million. *Abouthalf'of the tax categories are expected to exhibit increased collections. The increases can be found in Personal Income Taxes, Business Corporate Taxes,. Public Utilities: Gross Earnings Taxes, Insurance Companies Gross Earnings Taxes, Bank Deposit Taxes, the;Health Care Provider Assessment, and Alcohol Taxes.

Personal Income. Tax collections are. forecasted to increase by $4.1 million, or 0.4 percent, due to increased, income tax withholding payments -of $13.4 million. This increase is largely *offset by expected decreases in estimated payments of $7.9 million, final tax payments of'$614,790, and increased income tax refund payments of $1.0 million. The revenue gains in personal income tax collections are reduced due to the utilization of the State's Historic Structures Tax Credit (HSTC) program. The HSTC program is estimated to cost the, State $38.8 million in personal income tax revenues in FY 2008. The increased. Investment Tax Credit (ITC) and Research and Development (R&D) Tax Credits also continue. to impact tax collections in FY 2007, as individuals and businesses continue to-reap the benefits of an improved tax structure in Rhode Island. Personal income 'taxes are expected to comprise 31.1 percent of all general revenues collected in FY 2008 and total $1.070 billion.

General Business Tax collections are projected to increase by $34.6 million, due primarily to increases in Insurance Companies taxes of $17.5 million and Business Corporations taxes of $15.4 million. The estimated increase in Business Corporations taxes is mainly due to the estimated $8.3 million in anticipated revenues from including deductible interest expenses and costs and intangible expenses and costs as net income enacted in the .2007 session and $3.5 million anticipated from including gross sales of tangible personal property shipped out of Rhode Island to a state where the taxpayer is not taxable as now taxable enacted in the 2007 session. Insurance Companies taxes are anticipated to generate $74.1 million in FY 2008. The increase in Insurance Companies taxes is mainly due to the expected $15.2 million from the tax on insurance companies to provide for a 1.1 percent gross premium tax on health maintenance organizations, any non-profit hospital or medical service corporations; excluding any business related to Title XIX of the Social Security Act enacted in the 2007 session. Both Business Corporations and the Insurance Companies taxes are impacted by the Historic Structures Tax Credit program. The estimated foregone revenue in Business Corporations taxes is $1.8 million in FY 2008.

For Insurance Companies taxes, an estimated $3.8 million less in collections is due to the HSTC program. Public Utilities Gross Earnings taxes are expected to generate $104.0 million in FY 2008.

The Health Care Provider Assessment is estimated to yield $52.3 million in FY 2008, an increase of

$4.3 million over the $48.0 million collected in audited FY 2007. The Financial Institutions Tax is projected to decrease by $4.5 million in FY 2008 to -$100,000.

Sales and Use tax collections are forecasted to decrease by $8.2 million or -0.9 percent over audited FY 2007 collections. Sales and Use taxes represent 25.1 percent of total general revenues in FY 2008.

16

General Revenues The strength in sales and use tax collections in Rhode Island is- very dependent on the State's housing market. In prior fiscal'years, historically low long-term interest rates and multiple rounds of mortgage refinancings by homeowners had made available a significant source of income that was used to remodel primary residences, purchase appliances, and retire personal debt. From the State's perspective, the distribution of this consumption activity is vital, as most of the spending had been concentrated on items, that are subject to the 7.0 percent state sales tax. As long-term interest rates began to rise, the State'shousing sector cooled substantially and this reduced housing sector activity has slowed the rate of growth in the sales and use tax collections. For FY 2008 sales and use tax collections are projected to be.$865.0 million.

Excise Taxes other than the sales and use tax are expected to decrease by $3.6 million- in FY:2008.

Motor vehicle operators license and vehicle registration fees are' expected to reach $44.5 million in FY 2008, a decrease of 5.1 percent from FY 2007 collections.. The Motor Fuel tax estimate of $1.2 million is .8.5 percent lower than FY 2007. collections. Thairevised FY 2008 Cigarette Tax estimate of

$119.1 million represents a 1.1 percent decrease over FY 2007 collections. Cigarette Tax collections are expected to decrease by $1.4 million. The State did not change its cigarette excise tax in FY 2007.

The cigarette floor stock tax is a one-time revenue that occurs only. when theState's' cigarette excise tax is increased. No increase in the State's cigarette excise tax was enacted in FY 2007. or FY 2008. As a result, no cigarette floor, stock taxes were collected.

Other Taxes are expected to decrease $6.0 million .,in FY 2008 relative to audited FY 2007. Of the total decrease in Other Taxes, Inheritance and. Racing and Athletics tax collections constitute a $121,166 decrease, the Realty Transfer tax constitutes a $1.3 million, decrease, and Inheritance and Gift Taxes are expected to yield $4.6 millionless in FY 2008 than in audited FY. 2007,. with estimated collections of $30.1 million. This expected decrease in Inheritance and'Gift Tax collections is due to the nature of the tax itself, which can be affected. markedly by the passing of a single wealthy taxpayer. Racing and Athletic Taxes are expected to continue their downward trend in FY 2008 totaling $2.8 million, a decrease of 4.1 percent' from FY 2007. levels. Realty, Transfer Taxes are expected to total $11.4 million in FY 2008, a decrease of 10.5 percent from audited FY 2007 collections.

In the Governor's FY 2008. supplemental budget,. Departmental Receipts are estimated at $338.8 million, an increase of $61.0 million from audited FY 2007 collections, or 22.0 percent.

In addition to the above general revenue components, increases are forecasted in FY 2008 for the Other Miscellaneous general revenue category, the Unclaimed Property Transfer~to the general fund:, and the Lottery transfer to the general fund whereas the Gas Tax Transfer to the general fund is forecasted to decrease inFY 2008. In the case of the Gas Tax Transfer, -a decrease of $19,602 is forecasted.

In the case of the Lottery Transfer, an increase of $28.5 million to $349.5 million is projected for FY 2008. It is an increase of 8.9 percent from the audited FY 2007 transfer. This increase is attributable primarily to the year-to-date experience of quickening growth in video lottery net terminal and may also possibly be affected by the completion of construction at the Twin Rivers (formerly Lincoln Park) gambling facility as the new owners have refurbished and revamped much of the facility.

In the case of Other Miscellaneous general revenues, a $94.3 'million increase to $181.2 million is projected. For FY 2008, Other Miscellaneous revenues are expected to make up 5.3 percent of recommended general revenues. FY 2007 Other Miscellaneous revenues include a proposed adjustment of $19.4 million for the transfer from the Budget Reserve Fund needed to close final FY 2007 with a 17

General Revenues balanced budget, particularly in light of the proposed audit. adjustment to reflect a $19.0 million liability for Financial-Institutions Taxes.

The chart below shows the sources of general revenues for the period FY 2006 - FY 2009. The values of the two major sources of general revenues, personal income taxes and sales and use taxes, are highlighted.

General Revenue Sources

($ millions) 1200.0 996.8 1,100.3 1,065.4. 1,069.5 +, 1,064.2 I1,59.0 1 0408 1000.0 800.0 600.0 400.0 200.0 0.0 4-FY 2006 FY 2007 FY 2008 FY 2009 0 Personal Income Tax El Sales and Use Taxes El Lottery Receipts Departmental Receipts ElGeneral Business Taxes C Other Misc. Revenues El Other Taxes B Other Sources FY 2009 ProposedRevenues The Governor's recommended FY 2009 budget estimates general revenues of $3.347 billion, a decrease of 2.7 percent from the, ýrevised FY 2008. level. The Governor's recommendation is comprised of

$3.193 billion of revenue estimated at the November 2007 Revenue. Estimating Conference and $154.2 million of changes to the adopted estimates. These changes are shown in the. schedule GeneralRevenue Changes to Adopted Estimates located in Appendix A of this document.

The largest source of FY 2009 general revenues is the Personal Income Tax, with estimated receipts of

$1.100 billion, $18.2 million more -than the November 2007 REC estimate for FY 2009. Personal Income Taxes are expected to comprise 32.9 percent of total general revenues in FY 2009. The $18.2 million increase over the adopted estimate in Personal Income Tax collections is due to the Governor's proposal to limit taxpayer usage of the. Historic Structures Tax Credit to $40.0 million. It should be noted that the Budget Office estimates that the FY 2009 Personal Income Tax estimate adopted at the November 2007 REC incorporated $52.9 million in revenue lost to the Historic Structures Tax Credit (HSTC) program. Relative to the revised FY 2008 budget, recommended FY 2009 Personal Income Taxes are $30.8 million greater, a growth rate of 2.9 percent.

18

General Revenues ° Sales and Use Tax collections are expected to total $888.4 million, in FY 2009, or no change from the FY 2009 estimate agreed upon at the November 2007 Revenue Estimating 'Conference. ý The Governor's FY 2009 recommended estimate signifies growth of 2.7 percent over the FY 2008 revised estimate. Sales and Use Taxes are anticipated to contribute 26.5 percent to total general revenues in FY 2009.

Motor Vehicle operator license and vehicle registration fees are forecasted to equal $46.3 million in FY 2009, a decrease of $132,452 from the November 2007 REC estimate. This decrease is the result of the Governor's proposal to pay the refunds for the Unified Carrier Registration Act (UCRA) out of general revenue receipts rather than through a ýrestrictedjreceipt account. Motor Carrier Fuel Use Taxes are estimated to reach $1.2 million in FY 2009, the same as the November 2007 REC estimate.

The other components of excise taxes, namely Cigarettes Taxes and Alcohol Taxes, remain at the levels adopted by the conferees of the November 2007 Revenue Estimating Conference. Cigarettes Taxes are estimated to decline by $1.8 million, or 1.5 percent, from the revised FY 2008 estimate. This decrease is a result of the estimated drop in cigarette consumption. Alcohol Tax revenues, however, are projected to remain unchanged in FY 2009 from the revised FY 2008 estimate.

General Business taxes represent 11.8 percent of total general revenue collections in the FY 2009 budget year. Business Corporation Tax revenues are expected to yield $160.3 million, an increase of 0.2 percent, or $300,000 from the FY 2009 estimate agreed to at the November 2007`REC. This increase is the result of the Governor's previously referenced proposal to cap usage Of Historic Structures Tax Credit which is expected to increase Business Corporations Tax' collections by

$300,000.. Business Corporations Tax collections are projected to be 2.0 percent lower than the revised FY 2008 estimate. The FY 2009 Business Corporations Tax estimate includes a Budget Office *estimate of $2.5 million :in revenues lost to the use of Historic Structures Tax Credits by corporate income tax filers. Business Corporations taxes are expected to constitute 4.8 percent of total general revenues in FY 2009.

Bank Deposits Taxes are estimated at the levels adopted at the November 2007 Revenue Estimating Conference. Health Care Provider Assessments are estimated to be $275,000 lower than the levels adopted at the November 2007 Revenue Estimating Conference as a result of the Governor's proposal to reduce reimbursements to the nursing home labor cost center principles payments to nursing homes by $5.0 million which will result in a corresponding decrease in the Nursing Home Tax of 5.5 percent of gross revenues. Insurance Premiums Taxes are estimated to be $75.1 million in FY 2009 and are forecasted to be 1.3 percent higher than in the revised FY 2008 budget. They will comprise 2.2 percent of total general revenues in FY 2009. Recommended Insurance Premiums Taxes are higher than the November 2007 REC estimate. by $2.1 million as a result of the previously referenced Historic Structures Tax Credit buyback program. The Budget Office estimates that the FY 2009 Insurance Premiums Taxes will be reduced by $5.2 million as a result of the use of Historic Structures Tax Credits. This estimated revenue loss is included in the November 2007 REC estimate for Insurance Premiums taxes. Financial Institution Taxes are estimated at $19.4 million more than adopted levels for FY 2009. The Governor's proposed Historic Structures Tax Credit buyback program is expected to recover $400,000 in Financial Institution Taxes. Further, the Governor has recommended adjusting the November 2007 REC FY 2009 estimate by $19.0 million to, account for the proposed audit adjustment to FY 2007. The Department testified that a Financial Institutions taxpayer overpaid their taxes by

$19.0 million as testified to at the November 2007 REC by the Department of Taxation. The principals of the conference recorded the liability in FY 2009 based upon the Department's testimony that the taxpayer intended to request a refund in FY 2009, however the Auditor General has proposed to record 19

General Revenues the refund as a liability against the year in which the overpayment was made. Finally, the Public Utilities Gross. Earnings Taxes remain unchanged from the November 2007 REC estimate of $104.0 million which comprises 3.1 percent of general revenues.

Inheritance and Gift Taxes are projected to reach -$30.1 million in FY 2009; no change from the level adopted at the November 2007 Revenue Estimating Conference:. . Realty Transfer Taxes are also estimated at the same level, adopted at the November 2007 Revenue Estimating Conference. Thus, Realty Transfer Taxes are expected to grow. 2.6 percent> from their revised FY 2008 levels, with anticipated collections of $11.7 million. Racing and Athletics Taxes are also estimated at the level adopted at the November 2007 REC. This estimate represents a decline of $200,000,' or -7.1 percent, from the revised .FY 2008 estimate. Total Racing and Athletics Taxes projected in FY 2009 is $2.6 million. The total of Other Taxes_.is 1.3 percent of total general revenues in FY 2009.

FY 2009 departmental receipts are expected to generate $15.8 million more than the revised FY 2008 budget. Including all of the Governor's proposed changes to departmental receipts, total departmental revenues are expected to be $354.6 million in FY 2009, or 10.6 percent of total general revenues. In the licenses and fees category of departmental receipts, $111.3 million is expected as a result of the Governor's proposals. Most of this increase is attributable to the hospital licensing fee. The Governor recommends that the hospital licensing fee be reinstated for one year yielding $78.0 million in FY 2009 in addition to increasing the rate of assessment to 4.94 percent which will yield another $32.7 million.

The FY 2009 recommended departmental revenues figure includes the following proposals:

$78.0 million from reinstituting the Hospital Licensing Fee; a $32.7 million from increasing the Hospital Licensing Fee rate of assessment to 4.94 percent;

$1.1 million from requiring court costs equivalent to fine amounts for good driving dismissals;

$611,919 for charging a permitting fee on cases of bottled water; 0 $350,000 (approximately) for fines derived from driving while using mobile phone violations; a $300,000 million in RI Housing and Mortgage Financing Corporation grants;

$275,868 from increased Community Corrections fees;

$1.3 million resulting from licensing mortgage loan originators; 0 $100,000 in cost recoveries from proposed restricted receipt accounts for the Energy Office;

a decrease of $11,900 from discontinuing licensing of massage parlors;

a decrease of $275,000 from replacing the writ service with constable service; 0 a decrease of $1.7 million for converting the newborn hearing and screening fees to restricted receipts; and

a decrease of $2.1 million for converting the demand side energy grant to restricted receipts.

The Other Sources component total of $389.3 million in FY 2009 represents a decrease of 29.4 percent, or $162.1 million, compared to the revised revenue estimate for FY 2008. The change in other sources of revenue affects only the Other Miscellaneous Revenues.

The Governor's recommended FY 2009 budget for Other Miscellaneous Revenues is $170.0 million lower than the revised FY 2008 level, a decrease of 93.8 percent. This decrease is due in large part to the inclusion of tobacco securitization proceeds worth $124.0 million in FY 2008 that do not repeat in FY 2009. Other Miscellaneous Revenues are anticipated to be $11.3 million in FY 2009, amounting to 0,3 percent of all general revenues.

20

General Revenues Within the Gas Tax Transfer component, the Governor's, FY 2009 budget shows no change from the revised FY 2008 level. The Gas Tax Transfer is.expected to total $4.7 million, comprising 0.1 percent of total general revenues in FY 2009.

Within the Lottery category, the recommended FY 2009 budget is $14.4 million greater than the revised FY 2008 b'udget, an increase of 4.1 percent. The.Governor recommends no changes from the November 2007 REC estimate for Lottery. In FY 2009, the Lottery Transfer is expected to be $363.9 million and comprise 10.9 percent. of total general revenues.

The final category of general revenue receipts is the. Unclaimed Property transfer. In FY 2009, this transfer is expected to decrease by $6.6 million, or 41.3. percent, from the revised FY 2008 estimate.

The source of this decrease is primarily due to the nonrecurring demutualization of FY 2008. The Unclaimed Property transfer is projected to be $9.4 million in FY 2009, and comprise 0.3 percent of all general revenues.

21

All Sources The total budget of $6,888.8 million includes all sources of funds' from which state agencies make expenditures.

Federal funds represent 28.9 percent of all funds. Over 69.0 percent of federal funds are expended for human services, primarily for Medicaid.

Income and Sales and Use Taxes combined represent 28.9 percent of all revenue sources.

University and College Funds, and Income Support Benefit payments represent 8.8 percent, and 6.0 percent of the total, respectively.

Remaining sources include: Other General Revenues (13.3 percent); Gas Tax Revenues (2.0 percent);

Lottery Transfers (5.3 percent); Restricted Receipts (2.3 percent); and Other Funds (4.4 percent).

-Where It Comes From

~(in millions)

University Income ' Restricted

& College Support Gas Receipts Funds Payments Tax $158.2

$609.5 $416.2 Lottery $140.6

$636.9 Federal Grants I

f Sales & Personal:

Use Tax Other Genera 1 Other Fund lnco me Tax

$888.4 Revenue $306.5 $1 10.3

$91 5.4 22

All Expenditures Approximately sixty-seven percent of all. expenditures are for human services and education programs.

The budgets for the human service agencies total $2.613 billion, or approximately thirty-eight percent of all expenditures. These programs constitute the state's safety net.

Education expenditures comprise approximately twenty-nine percent* of total expenditures, or $1.985 billion. Of this total, $1.051 billion represents funding for aid to local units of government. This is approximately fifty-three percent of all education expenditures, including higher education. ý Approximately thirty-five. percent of the $1.37.3 billion expended for general government is for grants and benefits to individuals. Most of these expenditures are for employment and training services or programs, including unemployment compensation.

Transportation expenditures comprise five percent of the 1-total budget and include funds for public transportation, as well as highway, road and bridge expenditures.

In total, expenditures from all funds are recommended to decrease by 5.8 percent from the revised FY 2008 budget.

Where it Goes.

IM Natural 0 Transportation, Resources, $370.8

$95.2 *] General Government,

.. $1.,373.0 ol Public Safety,

$451.3 M Education,

$1,985.3 Services,

$2,613.3 23

General Government

General Government Summary General Government includes agencies that provide general administrative services to all other state agencies, and those that perform state licensure and regulatory functions. It includes: most elected officials, including the Governor, Lieutenant Governor, General Treasurer, and the Legislature; administrative agencies, including the Department of Administration, the Department of Revenue, the Department of Labor and Training, and the Board of Elections; and regulatory agencies, including the Department of Business Regulation and the Public Utilities Commission. The Governor recommends 2,360.7 FTE positions in FY 2008 and 2,012.4 FTE positions in FY 2009 within general government agencies.

The FY 2008 revised budget for General Government agencies totals $1.458 billion, including $611.5 million in general revenues, $86.8 million in federal funds, $78.2 million in restricted receipts, and $681.2 million in other funds. The revised budget from all fund sources for General Government agencies is

$18.8 million, or 1.3 percent, more than the FY 2008 enacted budget of $1.439 billion. Of the $1.458 billion recommended for FY 2008, $464.9 million is for grants and benefits, $265.0 million is for operating, $242.9 million is for local aid, $218.9 million is for personnel, $170.2 million is for debt service, $39.3 million is for capital, and $56.6 million is for operating transfers.

For FY 2009, the Governor recommends expenditures of $1.373 billion for General Government programs. The programs are financed with $552.2 million of general revenues, $74.1 million of federal funds, $79.2 million of restricted receipts, and $667.4 million of other funds. The FY 2009 recommendation for General Government agencies is $66.0 million, or 4.6 percent, less than the FY 2008 enacted level.

How it is Financed

General Revenue E] Other Funds 40.2%

48.6%

[3 Federal Funds, U Restricted Receipts 5.4%

5.8%

U] General Revenue 0 Federal Funds N Restricted Receipts 0 Other Funds 24

General Government Of the $1.373 billion recommended for FY 2009, $478.9 million is for grants and benefits, $271.9 million is for operating, $246.5 million is for local aid, -$137.2 million ispersonnel, $188.0 million is for debt service, $23.6 million is for capital, land.$26.8 million is for operating transfers. The General Government function represents 19.9 percent of the total budget for Rhode Island.

How it is Spent M Debt Service 13.7% 0 Operating Transfers M Personnel 1.9% 10.0%

M Capital Purchases and Equipment 1.7%

0 Operating Supplies and Expenses 0 Assistance, Gran 19.8%

and Benefits 34.9% V Aid To Local Units Of Government 18.0%

U Personnel 0 Operating Supplies and Expenses U] Aid To Local Units Of Government Assistance, Grants and Benefits Capital Purchases and Equipment Debt Service Operating Transfers General revenue financing for General Government agencies in FY 2009 decreases by $42.6 million, or 7.2 percent, from the FY 2008 enacted level. This decrease is primarily in the Department of Administration

($39.0 million). Other notable changes include decreases in the Department of Revenue ($1.2 million), the Department of Business Regulation ($1.3 million), Legislature ($341,159), Labor and Training ($283,170),

General Treasurer ($344,783), Public Utilities Commission ($661,246), and the Governor's Office

($263,085) offset by increases in the Board of Elections ($75,660) and the Secretary of State ($742,008).

In FY 2009, federal funds in General Government agencies decrease by $4.6 million, or 5.8 percent, from the FY 2008 enacted level. The change results from decreases in the Department of Administration

($11.6 million) and General Treasurer ($746,065) offset by an increase in the Department of Labor and Training of ($7.3 million) and Department of Revenue ($558,950). Restricted receipts decrease by $3.7 million, or 4.4 percent, which includes decreases of $9.2 million in the Department of Labor and Training and $4.3 million in the General Treasurer offset by increases of $9.3 million in the Department of Administration and $433,950 in the Public Utilities Commission. Other funds decrease by $15.2 million, or 2.2 percent, from the FY 2008 enacted level. This change results from decreases in the Department of Administration ($29.3 million) and Department of Revenue ($7.1 million) offset by an increase of $21.3 million in the Department of Labor and Training.

25

General Government Department of Administration The Governor recommends revised appropriations of $627.9 million in FY 2008 for the Department of Administration, excluding internal service funds. This includes $505.2 million in general revenues, $46.6 million in federal funds, $9.2, million in restricted receipts, and $66.9 million in other funds.

The revised FY 2008 budget is $14.3 million greater than the enacted budget. This includes an increase in general revenue appropriations of $19.8 million, an increase in federal funds of $1.0 million, a decrease in restricted receipts of $2.9 million, and a decrease in other funds of $3.3 million. Funding for internal service funds within the Department of Administration decreases from $331.9 million to, $322.7 million, or $9.2 million, primarily due to lower projected claims in the Health Insurance Fund in FY 2008.

The FY 2008 revised budget for the Department of Administration includes the following statewide reductions totaling $3.1 million: savings fromrn lower than a.-ticipated employee health benefit claims experience, $910,461; savings from six uncompe.isated p'ersonal leave.days, $1.4,million; and statewide operating, contracts and grants reductions of 2.'!, percent. from revised levels, $805,915.

Of the $19.6 million increase in general revenue appropriations, $1.6 million is attributable to core departmental programs, while the:balanice :is for- statewide personnel, state aid, debt service, and other non-department specific prografi's. The major :general'revenuechanges within core departmental programs include:

Additional personnel funding of $88,419 in the Central Management program to fund the restoration of the Executive Director position and the transfer of a financial position from the Information Technology, offset by the transfer of an administrative position to the Governor's Office.

" Additional personnel funding of $480,182 in the Legal Services program to fund staff, including a share of positions transferred from the Department of Transportation, and $164,054 for outside legal services to assist in labor negotiations.

Additional personnel funding of $334,322 in the Accounts and Control program to fund 8.0 new FTE positions resulting from the centralization of accounts payable functions among Executive Branch agencies. Thirteen (13.0) FTE positions performing these functions in various agencies have been eliminated as a result of this centralization.

" Additional funding of $77,000 in the Budget Office program to fund actuarial studies, specifically relating to retiree health benefits.

" Additional funding of $76,079 in the Human Resources program to fund analysis and audit of the state's medical benefits programs.

Additional funding of $15,600 for legal services in the Personnel Appeal Board.

Additional funding of $3.0 million in the Facilities Management program to fund utility expenses due to, increased energy costs. This increase is offset by a reduction of $2.5 million in various operating and capital expenses based on revised requirements.

Savings of $773,700 in the Information Technology program due to a delay in the implementation of new modules for the Rhode Island Financial Accounting Network System (RI-FANS).

26

General Government

Net additional general revenue personnel funding of $1.6 million in the Information Technology program due primarily to two factors. First, the adjustment, in the allocation of costs among funding sources for the centralized IT function based on the latest projected billings for FY 2008 results in an increase to general revenue costs and a reduction in other sources of funds. Second, the FY .2008 revised budget includes the addition of 39.4 FTE positions in the Information Technology program to allow for the replacement of more expensive contract employees with full-time state employees to perform various I., functions, such as programming, database management, help desk assistance, etc. These positions are funded for part of the fiscal year within the FY 2008 budget, the additional cost of which will be offset by reduced funding for contractors.

" Additional funding of $250,000 in the Security Services program for estimated overtimeresulting from staff shortages in iouitro6ms. i addition, funding of $67,000 is added in this program for contractual stipends for Sheriffs and Capitol Police.

The FY 2008 enacted budget for the Department of Administration included a negative appropriation of

$9.1 million in general revenues for state employee turnover. This negative appropriation was to be allocated to each agency by the State Budget Office after enactment of the 2008 budget. This allocation is reflected in the revised FY 2008 budget recommendations and results in a net increase to the Department of Administration's budget of $9..1 million. The department's share of the turnover savings was $0.5 million, which is allocated to various programs in the revised FY 2008 budget. Negative appropriations were also included for federal funds, $2.6 million; restricted receipts, $418,650; and other funds, $2.7 million.

The most significant change in general revenue appropriations in the revised FY 2008 budget is a result of audit adjustments that negatively impacted the FY 200.7 closing. In January 2008, the Auditor General presented, the State Controller, with two large audit adjustments totaling $24.1 million, which when combined with Other smaller adjustments, would result in a FY 2007 closing deficit of $15.4 million. In order to maintain a balanced budget as-required by the State Constitution, :a transfer from the budget reserve fund is required. In order to return the ending General Fund balance for FY 2007 back to zero and provide for $3.6 million of statutory reappropriations for the Judiciary and the General Assembly, the required transfer is..$19.4 million. This transfer must be repaid in FY 2008 and therefore, the revised budget contains $19.4 million in appropriations to replenish the Rhode Island Capital Plan Fund, which would not receive its full transfer. because the budget reserve fund will not be at its three percent maximum level by the close of FY 2008.

Local aid funding decreases in the revised FY 2008 budget by $10.2 million. This includes a decrease of

$10.0 million in General Revenue Sharing and a reduction of.$ 183,500 for the Motor Vehicle Excise Tax Phase-out program. The Governor recommends a change to the latter's statutory formula to require that only ninety-eight percent (98.0%) of the exemption value be paid to communities, based on the fact that communities do not normally have one-hundred percent collection rates. Without this statutory change, funding for FY 2008, based on the latest tax roll data provided by cities and towns, would have needed to increase by $2.5 million over the enacted level.

Debt service adjustments account for $5.0 million in additional general revenue appropriations, increasing from $126.2 million to $131.2 million. The increase is the result of several factors. The largest component of the increase is the restoration of a $3.0 million negative appropriation included in the enacted budget for debt service savings. The assumption behind this savings amount was that a smaller debt issuance 27

General Government resulting from the newly enacted requirement -that bond premiums be used to reduce the amount of general obligation bonds issued would result in lower debt service costs. Although this is true, the actual savings will occur over the entire twenty-year payback of the recently issued debt and not in the first year.

As a result, the majority of these savings will not be achieved in'FY 2008 and thus, funding' is increased to offset this negative appropriation.. The issuance of tax anticipation notes- (TANS) requires the addition of $1.9 million in general revenue appropriations and $4.8 million in all funds. The non-general revenue share of this cost, is funded from bond premium received at the time of issuance and interest earnings on the borrowed funds until. used by the state for cash flow requirements.

The Governor recommends a delay of $4.1 million from FY 2008 to FY 2009 in the funding for the Dunkin Donuts Center Renovations project based on the, latest cash flow requirements provided by the Convention Center Authority. These funds are primarily earmarked for the seat replacement phase of the project, which will not commence until after the end of FY 2008, thereby allowing for the reduction in funding this fiscal year.

The FY 2008 revised budget includes a reduction to the teachers.' retiree-health-insuranceesubsidy of $1.4 million. This reduction.is the result of a higher balance in the insurance fund and' claims' lower than anticipated. There is no change to coverage as a result of this reduced funding.

Net of the $2.6 million increase attributable to the statewide personnel turnover-described above, federal funds decrease by $1.6 million from the FY 2008 enacted level. The majority of this decrease is due-to the reallocation of costs for the centralized IT functions among;various funding sources. As described above, the general revenue share of these costs have increased, while other sources, including federal, are projected to be charged a smaller share of costs as compared to the enacted budget.

Net of the $418,650 increase attributable'to %thestatewide personnel turnover described- ibove, restricted receipts decrease by $3.4 million- due to several factors. First, bond premium and 'estimated interest earnings on TANS of $2.9 million, as described above,. arebudgeted to pay debt service on the TANS.

Second, funding of $1.2 million -budgeted for-debt service on-the COPS issuance-for thenew Registry of Motor Vehicles computer system are not required in FY -2008 due to a delay in the issuance of this debt.

Fees on all Registry- transactions are being received into a restricted receipt account to cover the cost of the debt service on this issuance, but no funds will be expended in FY 2008. Third, increased funding of approximately $1.0 million in the Office of Energy Resources is attributable to the establishment of two new restricted accounts in the revised FY 2008 budget for administrative support of the office and to an increase in the use of oil overcharge interest earnings for various energy projects. Finally, a reduction of

$6.35 million in the State Fleet Replacement Restricted Receipt account occurs due to the Governor's proposal to establish this new revolving loan fund as an Internal Service Fund into Which these funds are transferred in the revised budget.

Net of the $2.7 million increase attributable to the statewide personnel turnover described above, other funds decrease by $6.0 million. Of this decrease, almost $1.9 million is in Transportation debt service due to savings from refunded bonds in recent years. In addition, there is a net reduction of $4.6 million in funding for capital projects funded from the Rhode Island Capital Plan Fund. The largest decrease is the withdrawal of $7.5 million for the Neighborhood Opportunities Program, due -to delayed cash requirements for the program. In August 2007, the State provided the $7.5 million authorized for FY 2007 projects. The recommendation is to transition program expenditures to Rhode Island Housing, where similar programs have been funded. Commitments made for projects that require cash in FY 2008 or thereafter will be reviewed in the context of the RI Capital Plan Fund balances and RI Housing's cash 28

General Government position. This reduction in RICAP funding is offset by increases in various other capital projects primarily due to carry over funding from FY 2007 and the transfer of $1.2 million from the Department of Human Services for, Forand Building Exterior Shell repairs, which will be managed by the Capital Projects division within, the Department of Administration. New RICAP funding totaling $400,000 is provided for architectural and engineering work on a~proposed renovation to the Forand Building for use as the new Registry of Motor Vehicles headquarters. Finally, there is an increase in other funds of approximately $850,000 in the Information Technology program due to reallocation of costs for the centralized IT functions among various funding sources.

The Governor recommends a total of 1,032.8 FTE positions in the revised FY 2008 budget, a decrease of 0.1 FTE positions from the enacted level of 1,032.9 FTE positions. This minor change is actually comprised of a number of offsetting incieases and decreases in FTE positions. As part of the statewide personnel turnover savings allocated to each agency, the Department of Administration eliminated 45.5 vacant FTE positions from various programs. The Department transferred 2.0 FTE positions to the Department of Labor and Training, 3.0 FTE'positions to the Department of Children, Youth and Families and 3.0 FTE positions to the. Department of Environmental Management. Conversely; the Department received 3.0 FTE positions from the Department of Transportation, and 4.0 FTE positions from the Department of Human Services. A net of 7.0 FTE positions are added for the Accounts Payable centralization within ihe Accounts and Control program, as described above. This includes 8.0 new FTE positions and the elimination of 1.0 vacant FTE position in the Facilities Management program that previously had accounts payable responsibilities. Finally, as described, above, there is an increase of 39.4 FTE positions in the Information Technology program to allow for the hiring of full-time state employees to replace IT contractors.

The Governor recommends total expenditures for FY 2009 of $542.7 million for the Department of Administration, excluding internal service funds. This includes $446.4 million in general revenues, $33.9 million in federal funds, $21.4 million in restricted receipts, and $40.9 million in other funds. Overall, this represents a decrease of $70.6 from the enacted FY 2008 budget. General revenue funds decrease by

$39.0 million, federal funds decrease by $11.6 million, restricted receipts increase by $9.3 million and other funds..decrease by $29.3 million. Funding for internal service funds increases by $5.2 million from the enacted FY 2008 level, primarily attributable to increases in the utilities fund due to increased energy costs.

The FY 2009 budget for the Department of Administration includes statewide reductions totaling $50.2 million in general revenues and $90.1 million in all funds. These savings, targeted for personnel in the form of compensation, medical plan design and co-share changes, and extraordinary retirements, are shown within the Department of Administration to be reallocated to all agencies at a later date. The recommendation includes $60.6 million, of which $33.4 million is general revenues, for personnel savings that are currently being discussed with union leadership. For display purposes, $33.6 million is reflected in medical benefit savings and $27.0 million in salary and benefit savings. Additionally, the Governor's recommendation assumes $30.5 million in savings from all sources, $16.8 million from general revenues, from permanent position eliminations as a result of retirements for FY 2009. There are currently over 3,100 employees eligible to retire, whether by age or years of service. The Governor's recommendation assumes that 300 non-critical positions will be eliminated from retirements in FY 2009.

Of the $39.0 million decrease in general revenue appropriations, $5.0 million is attributable to core departmental programs, while the balance is for statewide personnel reductions, described above, state aid, debt service and other non-department specific programs. The major general revenue changes within 29

General Government core departmental programs, as compared to the enacted FY 2008:budget include:

" Transfer of 2.0 FTE positions from 'the Central Management program to the new Department of Public Safety, resulting in a decrease in general revenue'personnel funding of $93,096. These positions supported the.Fire Marshal and-Rhode Island Justice Commission agencies and a portion of their costs were'allocated to federal resources.

Additional personnel funding of $570;338 in the Legal Services program to fully fund their current staff, including positions transferred from the Department of Transportation in FY 2008, and a current vacancy

Additional personnel funding of $563,667 in the Accounts and Control program to fund the full year costs of 8.0 new FTE positions resulting. from theý centralization of accounts payable functions among Executive Branch agencies. Thirteen (13.0) FTE positions performing these functions in various agencies have been'eliminated as aresult of this centralization.

Additional funding of $78,000 in the Budget Office program to fund actuarial studies, specifically relating to retiree health benefits.

" Additional funding of $87,000 in the Human Resources program to fund analysis.and audit of the state's medical benefits programs.

" Additional funding of $15,000 for legal services in the Personnel Appeal Board.

" Additional funding of $4.0 million in the Facilities Management program to fund utility expenses due to increased energy costs. This increase is offset by a reduction of $2.7 million in various operating and capital expenses based on revised requirements. The increase in utility expenses is also offset by guaranteed savings of $432,906 from the energy conservation improvements made to various capitol area buildings as'a result of the energy services contract funded through a debt issuance this past year. These savings will be used to'pay. the debt service. costs.

" Savings of $366,416 in the Information Technology program due to a delay in the implementation of new modules for the Rhode Island Financial Accounting Network System (RI-FANS).

Net additional general revenue personnel funding of $3.1 million in the Information Technology program due primarily to two factors. First, the same adjustment in the .allocation of costs among funding sources for the centralized IT function that occurred in FY 2008 carries over into FY 2009 and results in an increase to general revenue costs and a reduction in other sources of funds.

Second, as described above, the FY 2008 revised budget included the addition of 39.4 FTE positions in the Information Technology program to allow for the replacement of more expensive contract employees with full-time state employees to perform various IT functions. These positions were funded for part of the fiscal year within the FY 2008 budget and are funded for the entire year in FY 2009 with some turnover assumed for staggered hiring. The additional cost of these positions will be offset by reduced funding for contractors that had been budgeted in various agency budgets.

Additional funding of $700,000 in the Information Technology program to fund software maintenance agreements.

Decreased funding of $2.2 million in the Office of Energy Resources due to the shift of certain funding from general revenues to restricted receipts. This includes both staff costs, as well as 30

General Government grant funding received from utility distribution companies for energy: efficiency projects:

The Governor recommends a net decrease for state aid programs of $6.6 million. General Revenue sharing is recommended to decrease by $10.0 million compared to the FY 2008 enacted budget, the same reduction as proposed in the revised FY 2008 budget. The Distressed Communities Relief Fund is level funded at the FY 2008 enacted level of $10.4 million. The Payment-in-lieu-of-taxes (PILOT) program is also level funded at the FY 2008 funding level of $27.8 million. State Library Aid is also level funded at the FY 2008 enacted level of $8.8 million. The Library Construction Aid program is fully funded based on outstanding agreements at $2.8 million, a reduction of $47,412 from the enacted FY 2008 budget. The Governor recommends continuing the proposal to ;reimburse communities, for ninety-eight percent (98.0%) of the exemption value under the Motor Vehicle Excise Tax Phase-Out program at the $6,000 exemption level. Funding of $139.6 million, an increase of $4.1 million, is recommended from general revenues. Distributions to communities under each of these state aid programs will be based on the latest property values, tax data and other indicators, as required by the statutes governing the respective aid programs.

The Governor recommends eliminating the Municipal Police and Firemen Incentive Pay programs for savings of $675,000 in FY 2009.

The Governor recommends an increase of $172,000 for the Property Valuation program, which reimburses communities for statistical updates and/or. revaluations of real property required to be conducted by state law.

The Governor recommends level funding for most economic development initiatives included in the FY 2008 budget. This includes $3.0 million for the Slater Technology Fund, $100,000 for the Science and Technology Council, $100,000 for the Business Innovation Factory, and $1.5 million for the Research Alliance. Funding for the Economic Development Corporation is also level funded at the FY 2008 enacted level of $6.2 million, but funding for various legislative grants funded through the EDC is recommended to decrease by $0.7 million or-half the FY 2008 enacted funding. In addition, the Governor recommends that the Economic Development Corporation assume responsibility for the staff support to the Economic Policy Council and as such eliminates the stand alone funding for the Council of $300,000.

The FY 2009 budget includes funding of $4.1 million delayed from FY 2008 to complete renovations to the Dunkin Donuts Center. This is a reduction of $8.4 million from the enacted FY 2008 funding level. In addition, the Governor recommends restoration of funding for the Governor's Contingency Fund to $1.0 million.

In the Debt Service category, general revenue funding increases by $13.7 million over the FY 2008 enacted level and by $22.2 million in all funds. Debt service for general obligation bonds increases by a net of $6.2 million in general revenues and $12.3 million in all funds. This net increase includes $3.0 million to restore savings built into the FY 2008 enacted budget,. as described above; a $2.0 million increase for economic development-related G.O. debt (Quonset Point and Third Rail); a $1.3 million increase for the recently approved Affordable Housing bond; a $6.1 million increase for transportation-related debt funded by the gas tax;. and various reductions to outstanding debt as bonds are paid off annually.

Funding for various Certificates of Participation projects increases by $7.0 million in general revenue funds and $6.6 million in all funds. Previously approved projects for which debt service will be newly required in FY 2009 include the School for the Deaf, $2.6 million and the Energy Conservation project, from which utility savings will offset the $432,906 debt service payment. A new project proposed by the Governor in the Capital Budget involves the renovation of the Forand Building at the Pastore Government 31

General Government Center for use by the Registry of Motor Vehicles as its new main headquarters. The goal of this project is to provide a more centrally located, customer-friendly facility and at the same time save operating costs from the rental of outside property. The Governor proposes a $23:9 million Certificates of Participation issuance, which will require an estimated first year debt 'service payment of $658,000. Finally, the FY 2008 budget included projected savings of almost $3.0 million from a planned refunding of outstanding COPS issues. This refunding occurred in FY 2008 and resulted in first year savings to several projects, but will have less of an impact in FY 2009, thereby requiring the restoration of the majority of this savings amount.

Funding for debt service on previous Public Buildings Authority projects, now managed by the Refunding Bond Authority, decreases by $802,306 in general revenues and $852,317 in allfunds. Since the former PBA is~no longer in existence and therefore no:new. projects will be funded under this entity, debt service will decrease annually as these projects are paid.off..,

The FY 2009 budget also includes funding for an anticipated issuance of Tax Anticipation Notes, as was required in FY 2008. The same level of funding, both general revenue and restricted receipts, as requested in FY 2008, $1.9 million and $2.6 million, respectively,. is requested for FY i2009. Actual requirements will depend on the amount issued and interest rates on the debt at that time, and thus: these figures will likely be refined in the FY 2009 supplemental budget.

The FY 2009 budget includes a reduction to the teachers' retiree health insurance subsidy of $962,522 from the FY 2008 enacted funding level of $1.4 million. This reduction is the result of projected balances in the insurance fund and anticipated claims based on current .year .experience. There is no change to coverage as a result of this reduced funding.

The Governor also proposes to reduce by half the majority of legislative grants that are funded through the Department of Administration for general revenue savings of $260,456. The exception is the grant for the RI Service Alliance, which will remain at the FY 2008 enacted funding level of $140,000. These funds are used to match federal dollars and support the AmeriCorps program.

Net of the $15.0 million decrease attributable to the new statewide personnel savings described above, which is offset by a $2.6 million increase relating to FY 2008 statewide personnel savings, federal funds increase by $1.0 million in FY 2009 from the FY 2008 enacted budget. The largest single program change in federal funds is an increase of approximately $3.0 million in the Statewide Planning program, primarily the result of new Community Development Block Grant funds. Funding within the three centralizations fluctuate based on the projected allocation of costs among the various funding sources, including a decrease of $193,889 in Human Resources, and increase of $1:3 million in Facilities Management and a decrease of $722,676 in Information Technology. Federal funding within the Office of Energy Resource decreases by $1.6 million, primarily in the LIHEAP heating assistance program. Finally, federal funding for debt service costs on-the Center General Building decreases by $442,606based on a revised allocation of costs due to the plan to move a new state agency into this facility.

Net of the $3.1 million decrease attributable to the new statewide personnel savings described above, which is offset by a $418,650 increase relating to FY 2008 statewide personnel savings, restricted receipts increase by $12.4 million in FY 2009 from the FY 2008 enacted budget. The largest single program change in restricted receipts is in the Office of Energy Resources where the Governor is recommending the establishment of several new restricted receipt accounts. The largest of these is $10.0 million for the Regional Greenhouse Gas Initiative, which will receive funds from the sale of carbon dioxide emission allowances. Also in this office, there is funding of $1.9 million budgeted for the first time for the 32

General Government Affordable Energy Fund and $2.1 million for Demand Side Management Grants received from utility distribution companies. In other programs, restricted receipt funds increase by $2.9 million for the interest earnings and bond premium projected to be received from the issuance of Tax Anticipation Notes; decrease by $6.3 million in Facilities Management, primarily due to the shift 'of the State Fleet Replacement account to an internal service fund; and increase by. $638,208 in Information Technology due to the updated allocation of costs among various funding sources.

Net of the $22.8 million decrease attributable to the new statewide personnel savings, described above, which is offset.by a $2.7 million increase relating toFY 2008 statewide personnel savings, other funds, excluding RICAP funds, increase by $6.8 million in FY 2009 from the FY 2008 enacted budget. This increase is primarily attributable to two items. First, an increase of $1.0 million in Information Technology due to the updated allocation of costs. among various funding sources for services provided- to agencies. Second, there is an increase of $5.9 million in debt service, mostly for Transportation G.O.

Debt.

In the Rhode Island Capital Plan Fund, funding decreases by $15.8 million from the FY 2008 enacted budget. The largest single change is the elimination of $8.8 million in funding for the DOlT Data Center.

This funding was initially enacted for the purpose of purchasing and outfitting an existing facility, but after an RFP process, no suitable facility could be identified. The Governor now recommends that this funding be used to renovate the soon~tobe vacated DCYF Training School AdministrationBuilding at the Pastore Government Center for use as the new DOIT Data Center. This is a one-time project and thus this funding will not be required. again in FY 2009. In addition, funding of $7.5 million for the Neighborhood Opportunities Program is not provided in the FY 2009 budget..

The Governor recommends a total of 775.8 FTE positions in the FY 2009 budget, a decrease of 257.0 FTE positions from the revised FY 2008 budget. The majority of this decrease is the 241.0 FTE positions from Security Services (Sheriffs and Capitol Police) that are transferred to the newv Department of Public Safety. Two positions from the Central Business Office are also transferred to Department of Public Safety. Two positions are transferred in from the Governor's Office, one to the Central Business Office and one to the Information Technology program. The Department of Administration also has program reductions proposed for FY 2009 that would result in the elimination of 16.0-FTE positions. First, the Human Resources program will have a reduction of 13.0 FTE positions primarily due to further consolidations within the human service centers as a result of the new Office of Health and Human Services structure. Finally, 2.0 FTE position will be eliminated within the Statewide Planning program and 1.0 FTE will also be eliminated in the Facilities Management program.

Departmentof Business Regulation The Governor recommends a revised FY 2008 budget of $12.8 million, including $10.9 million in general revenue, $201,742 in federal funds, and $1.7 million in restricted receipts. General revenues decrease

$579,487 from the enacted level, reflecting current services adjustments, and the following statewide adjustments: savings from lower than anticipated employee health benefits claims experience, $115,756; savings from six uncompensated personal leave days for all state employees, $200,015; and, statewide operating, contracts, and grants reductions of 2.7 percent from revised levels, $17,945. The Governor recommends 102.0 FTE positions in FY 2008, a reduction of four vacant positions and $333,666 in personnel savings from the Department including the Board of Design Professionals. Federal funds increase $150,000 for a grant to the Office of Health Insurance Commissioner to study quality of high risk pool insurance. Restricted receipts increase a net $60,000, including insurance regulation increases of 33

ff,*F *'.J ,: ,*;r.'*.!'*'

General Government

$113,000 primarily for costs of rate assessment and commercial licensing decreases of $53,000 for licensing activities.

For FY 2009, the Governor recommends $11.7 million, including $10.2 million in general revenue and

$1.5 million in. restricted receipts. General revenues decrease $1.3 million from the FY 2008 enacted level. The Governor recommends a total of 98.0 FTE positions in FY 2009, a program reduction of 'an additional 4.0 FTE positions from FY 2008 revised ( a total of 8.0 FTE positions from the enacted level) and a savings from the enacted level of $620,780. Reduced trend growth in medical benefits saves

$68,449, .and funding for retiree health benefits, in.FY 12009, on an actuarial basis recognizing reduced benefits for new retirees .saves $98,509. Relocation.of the department from leased space to state owned property is a savings of $709,690 in general revenue. . Personnel current services and adjustments including assessed fringe benefits and contract and- operating savings are. a net increase of $212,506. The Governor recommends transfer of burglar alarm regulation ,tc the Department of Labor and Training, assuming of proprietary school review from the Office of Higher Education, and elimination of hearings for auto body disputes and review upon complaint.

Departmentof Labor and Training The Governor recommends revised FY 2008 expenditures-of $477.0 million for the Department of Labor and Training, including $6.4 million in general revenue, $35.0 million in federal funds, $25.1 million in restricted receipts, and $410.5 million in other funds. General revenues decrease $205,975 from the enacted budget, reflecting current services adjustments, and the following statewide adjustments: savings from lower than anticipated employee health benefits claims experience, $39,085; savings from six uncompensated personal leave days for all state employees, $58,723; and, statewide operating, contracts, and grants reductions of 2.7 percent from revised levels,.$17,057. The Governor recommends 417.5 FTE positions in FY 2008, a reduction of 37.4 positions with savings in general revenue of $245,412:.Increases include biology tax credit operatiens ($3,994), teacher arbitration services ($25,296), and revised police and fire fighter benefits estimates ($128,507).

The recent fund balance trends for both the Employment Security Trust Fund and the Temporary Disability Insurance (TDI) Trust Fund are shown in the graphs below. It should. be noted that Rhode Island's Employment Security Fund is in stable condition relative to other states *At the end of 2007, the Employment Security Trust Fund and TDI Trust Fund had balances of approximately $168 million and

$99 million, respectively.

34

General Government Uner nployment Insurance Fund Activity 1980 -2007 350 300 250 200

-150 (U

.2 1850 0 *

-50 .

-100-

-150-M Taxes =Payments --- Balance Tern por 200 180 160 140 S120 0 UU8

'*100

.2 (U

C a 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 IMMTaxes r Payments t BaIance I 35

General Government For FY 2009, the Governor recommends $478.5 million, including $6.3 million in general revenue, $35.4 million in federal funds, $19.1 million in restricted receipts, and $41.7.7 million in other funds. This is an increase of $19.0 million over the FY 2008 enacted budget, and includes $283,170 less general revenue,

$7.2 million more federal funds, $9.2 million less in restricted receipts, and $21.4 million more other funds. The Governor recommends an FTE authorization of 407.2 FTE positions for the Department of Labor and Training, or i0.3 FTE less than revised FY 2008, including a 21.0 FTE program reduction, 6.3 adjustment reductions, and 17.0 additional FTE positions to staff a work first program for human services clients funded from $1.7 million of'federal grants from the Department of Human Services. A majority of the federal fund increase is related to increased, grant awards for Workforce Development and Training Programs ($6.9 million). The decreased restricted receipt expenditures are from the Human Resource Investment Council program ($9.2 million). The incr'ese in other funds is for the Income Support Program for unemployment benefits ($25.2 million).

DepartmeMt of Revenue In the 2006 Session, the General Assembly created the new Department of Revenue, comprised -primarily of programs transferred from the Department of Administration. These programs include the Office of Property Valuation (formerly Municipal Affairs), the Division of Taxation, the Registry of Motor Vehicles, and the Lottery. New programs created with this department include the Director of Revenue and the Office of Revenue Analysis.

The Governor recommends $241.8 million in expenditures for the Department of Revenue in the FY 2008 revised budget, including $35.2 million in general revenues, $2.1 million in federal funds, $203.6 million in other funds, and $892,006 of restricted receipts. This includes a decrease of $3.4 million or 8.8 percent in general revenues, including $2.7.million.in personnel savings from additional turnover savings due to delays in filling several new positions, including the Director of Revenue, elimination of vacant positions and various statewide reductions. The statewide reductions include $539,014 for six uncompensated personal leave days for all state employees, $421,613 in savings from lower than anticipated employee health benefit claims experience, and $169,134 for statewide operating, contracts and grants reduction of 2.7 percent from revised funding levels. Federal funds increase by $793,852 or 59.5 percent due to the carry forward of several grants in the Registry of Motor Vehicles. Restricted receipts increased by

$46,500 or 5.5 percent as a result of indirect cost recovery funds not included in the enacted budget.

Other funds decrease by $14.6 million or 5.7 percent, primarily due to an estimated reduction in the Lottery collections, which translates into lower commission payments and other expenses at the Lottery Division.

The Governor recommends $248.7 million in expenditures from all funds for the Department of Revenue for FY 2009, including $37.4 million in general revenues, $1.9 million in federal funds, $208.5 million in' other funds, and $925,663 of restricted receipts. This represents an all funds decrease of $7.7 million from the enacted FY 2008 budget, This includes decreases in general revenue expenditures of $1.2 million, or 3.1 percent, primarily due to positions being eliminated in FY 2009. Federal funds increase by

$558,950, or 41.9 percent, due to the continuation of several federal grants received by the Registry of Motor Vehicles. Restricted receipts increase $80,157, or 9:5 percent, .due again to indirect cost recovery funds not included in the FY 2008 enacted budget. Other funds decrease by $7.1 million, or 3.3 percent.

As with the revised FY 2008 budget, this change is primarily due to estimated changes in Lottery collections, which have a corresponding impact on Lottery expenditures.

36

General Government Major changes recommended in the FY 2009 budget include:

Registry of Motor Vehicles - Require only one license plate on vehicles beginning in FY 2009 to save $239,000 in production.costs;

Registry of Motor Vehicles -,Close the West Warwick branch, eliminating four (4.0) FTE positions, and transferring three (3.0) FTE positions to the main registry branch. In concert with this recommendation, the Governor proposes a capital project to renovate the Forand Building at the Pastore Government Center in Cranston to house the mainbranch of the Registry. RICAP funding of $400,000 is included in the Department of Administration's' budget to begin the planning for this project. A Certificates of Participation debt issuance is proposed for FY 2009 to fund this project, which is estimated to be completed within two to three years.

The Governor recommends 465.0 FTE positions in FY 2008, a decrease of 1010 FTE from the enacted level and 460.0 FTE positions in FY 2009, a decrease of 5.0 FTE from the revised FY 2008 level. The FY 2008 decrease is due to the elimination of ten vacancies, 1.0 FTE from the Director's Office, 0.5 FTE from Lottery, 4.0 FTE*from Taxation, and 4.5 FTE from the Registry of Motor Vehicles. In FY 2009, there are 4.0 program reductions in the, Registry of Motor Vehicles and 1.0 vacant position that will be eliminated from the Office of Property Valuation.

Legislature The Governor's revised FY 2008 budget for the Legislature is $37.6 million, including $36.1 million in general revenue and $1.5 million in restricted receipts. The recommendation includes an increase of $1.7 million resulting from reappropriation of $2.5 million in carry forward balances from FY 2007 that are budgeted as legislative grants. This is offset by personnel savings due to current services adjustments, contract services savings primarily in the Joint Committee'on Legislative Serviceg, and the following statewide -adjustments: savings from lower than anticipated;employee.health benefit claimriexperience,

$482,709; savings from. six uncompensated personal leave days for all state eemployees, $548,025; and, statewide operating, contracts and grants reductions of2.7 'percent from revised levels, $163,129.

For FY 2009, the Governor recommends $35.6 million, including $34.1 million in general revenue and

$1.5 million in restricted receipts. The general revenue decrease of $341,159 from FY 2008 enacted budget is primarily a result of decreases in contract services-Tin the Joint Committee on Legislative Services. Personnel savings of.,$57,289 reflect adjustments: for salary and employee benefits requirements. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees.

The Governor recommends the enacted level of 297.9 FTE positions in FY 2008 and FY 2009.

Office of the Lieutenant Governor The Governor's revised FY 2008 budget for the Office of-the Lieutenant Governor is $839,816 from general revenues. The recommendation is a decrease of $85,296 from the enacted budget, reflecting reductions of $60,345 for current services adjustments for personnel requirements, $4,689 for operating expenses, and the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $6,801; savings from six uncompensated personal leave days for all state employees, $17,251; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $899.

37

General Government For FY 2009, the Governor recommends $884,920 from general revenues. This is $40,192 less than the enacted budget and includes reductions of $35,507 for salaries and benefits, $5,060 *for *operating expenses. The personnel savings includes adjustments for salary and employee benefits requirements offset by a program reduction of 1.0 FTE position to be determined by the Office. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Governor recommends 9.0 FTE positions in FY 2008 and 8.0 FTE positions' in FY 2009..

Secretary.of State, The Governor's revised FY 2008 budget for the Secretary.of State is $6.2 million', including $5.0 million in general revenue, $572,503 in federal funds, and $558,502 .inrestricted receipts. The recommendation includes an increase of $6,553 to general revenue appropriations,, reflecting current services, adjustments, and the following statewide .adjustments: savings from lower than 'anticipated employee health benefit claims experience, $52,030; savings from six uncompensated personal leave: days for alltState employees,

$81,362; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels,

$21,500. A reallocation of $88,909 from general revenue to restricted receipts is due to the recently enacted two dollar fee increase to sustain the Historical Records Trust Fund. General revenue decreases are offset by increases of $62,970 to finance e-government initiative costs, $48,428 for Presidential Preference Primary costs, and $27,436 primarily for the payment of the printing of the RI Owner's Manual which was incurred in FY 2007.

Federal funds included in the revised budget decrease by.$,14,241 as the Department continues to implement the remaining mandates of the HelpAmerica Vote Act (HAVA) of 2002. The revised FY 2008 Budget reflects federal HAVA-funding. for the ongoing payment ofthe maintenance portion of the State's Optical Scan Voting. Equipment, which is split between the 'Board. of Elections and the Office of the Secretary of State. The Governor recommends the enacted level of 58.0 FTE'positionsin FY 2008.

For FY 2009, the Governor recommends $6.9 million, including, $5.8 million in general revenue,

$541,139 of federal funds, and $555,581 in restricted receipts. The general revenue increase of $742,008 from the enacted FY 2008 budget includes an increase of $756,159 for Presidential Election ballot and referenda printing costs and reflects adjustments required for salary and employee benefits requirements.

Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. A decrease of

$150,322 from the enacted level represents reductions in various community service grants.

In order to address expenditure forecasts statewide in excess of enacted appropriations, the Governor proposes the following for initiation in FY 2009:

, Eliminating the requirement for the printing of the RI Owner's Manual which will save $25,000.

The Secretary of State would continue to.provide the manual on its official website as currently done.

" Transferring the cost for the printing of ballots where only special town or city elections take place to the municipality will save $10,000, and eliminating the requirement of printing local 38

General Government ballot questions on distinctive colored background will save approximately $40,000.

Initiating a volunteer-based State House Tours program will save $13,440.

The Governor recommends 55.0 FTE positions for FY 2009, 3.0 FTEs less than the enacted FY 2008 level.

-= Office of the General Treasurer The Governor recommends a revised ;FY 2008 budget of $37 .4 million for the Office of the Treasurer, including $2.8 million in general revenue; $1..1 million in federal funds, $33.2 million in restricted receipts, and $239,985 in other funds:. The,,revised budget for all funds represents an increase of 1.3 percent from the enacted all funds Jevel., .. Changes to the enacted budget include $134,783 less in general. revenues; $765,960 less ini federal funds, $1.4 million more in restricted receipts, $53,155 less in other. funds. Of the reduction, in general. revenues., $80,882 is associated with statewide adjustments',

and $50,901 is associated with agency specific adjustments. The statewide adjustments consist of:

savings from lower than anticipated employee health benefit claims experience, $28,052; savings from six uncompensated personal leave days for all state employees, $45,015; and statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $10,815. Agency specific general revenue adjustments include turnover savings of $72,042 and purchased service savings of $1,355; and operating increases of $7,624 and capital purchases and equipment increases of $14,872.

For FY 2009, the Governor recommends total expenditures of $31.4 million, which includes $2.6 million from general revenues, $1.2 million from federal funds, $27.5 million from restricted receipts, and $253,375 from other funds. The general revenue expenditures decrease of $344,783 compared to the FY 2008 enacted budget include the following changes:. decreases of .$346,715 for personnel costs and

$2,736 .for operating costs; and an increase of $4,668 for capital purchases and equipment. A decrease in restricted receipt expenditures of $4.3 million in FY 2009 compared 'to the FY 2008 enacted budget is associated witha one-time appropriation for the transfer of unclaimed property revenues to the general fund, as adopted.,by the November 2007 Revenue Estimating. Conference.. The reduction is associated with the non-recurrence of the share demutualization in FY 2008.

The Governor recommends 88.0 FTE positions in FY 2008 and 86.0 FTE positions in FY 2009. The FY 2009 recommendation includes FTE reductions of 2.0 positions due to the consolidation of operations, including 1.0 position in the Crime Victim Compensation program and 1.0 position in the General Treasury program.

Board of Elections The Governor's revised FY 2008 budget-for the Board of Elections is $1.9 million, including $1.3 million in general revenue and $631,328 in federal funds. The recommendation includes a decrease of $147,267 to general revenue appropriations, reflecting current services adjustments, and the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $15,546; savings from six uncompensated personal leave days for all state employees, $21,162; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $6,196. The Board's turnover savings total $161,552, which includes board member vacancy savings and the reallocation of a new position to federal funds. The decrease is primarily offset by increases associated with the 39

General Government Presidential Preference Primary for. temporary staffing, legal services, and printing costs. Federal funds increase by $44,434 compared to the enacted budget, due to the hiring of a Clerk/Machine Operator to perform service and maintenance on Automark election equipment. The Board of Elections is working in concert with the Secretary of State's Office to implement the remaining requirements of the Federal election reform legislation of 2002. The revised FY 2008 budget reflects federal Help America Vote Act (HAVA) funding for the payment of the State's Optical Scan Voting Equipment service and maintenance contract, which is split between the Board of Elections and the Office of the Secretary of State.

For FY 2009, the Governor recommends $2.2 million, including $1.5 million in general revenue and

$662,344 of federal finds. The general revenue, increase of,$75,660.,from the enacted FY 2008 budget reflects adjustments required for salary and employee benefits.:requirements. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an .actuarial basis beginning in FY 2009, recognizing reduced health benefits for iiew retirees. An increase of,$75,1 10 relates primarily to Presidential Election costs. The Governor recommendsthe enacted level of 14.0 FTE positions in FY 2008 and FY 2009.

Rhode Island Ethics Commission The Governor recommends a revised FY 2008 budget for the Rhode Island Ethics Commission of $1.3 million composed entirely of general revenues. This is $79,991 less than the FY 2008 enacted level. This includes reductions of: $44,913 for turnover savings and $36,048 for statewide reductions. The statewide reductions include $24,337 for uncompensated leave days, $9,303 for savings in employee medical benefits, and $2,408 for statewide operating, contracts and grants reductions of 2.7 percent. An increase of $980 for Operating expenditures-is recommended to. maintain the current level of services in FY 2008.

For FY 2009, the Governor recommends.$ 1.4 million composed entirely of generalrevenues. The general revenue decrease of,$5,142 from the enacted FY 2008 budget. also. reflects adjustments :required for salary and employee benefits requirements. Personnel costs include no cost of living adjustment for state employees, but do include a 9:9 percent trend growth in employee medical .benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY .2009, recognizing reduced health benefits for new retirees. The Governor recommends the enacted level of 12.0 FTE positions in FY 2008 and FY 2009.

Office of the Governor The Governor's revised FY 2008 budget for the Office of the Governor is $4.8 million from general revenues. The recommendation includes a decrease of $147,968 reflecting current services adjustments, including the full-year transfer of 1.0 FTE from the Department of Administration and the mid-year transfer of 2.0 FTE to the Department of Administration and the following statewide adjustments: savings from ,than anticipated employee health benefit claims experience, $44,261; savings from six uncompensated personal leave days for all state employees, $92,573; and, statewide operating, contracts and grant reductions of 2.7 percent from revised levels, $11,134, as well as

$64,398 from operating and contract services savings.

For FY 2009, the Governor recommends $4.7 million from.general revenues, which is a decrease of

$263,085 compared to the FY 2008 enacted budget. The $98,687 decrease in personnel includes adjustments for salary and employee benefits requirements, offset by a program reduction of 4.0 FTE 40

General Government positions. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend.growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis* beginning in FY 2009, recognizing. reduced health benefits for new retirees. Operating and contract.services savings of $64,398 are consistent with the FY 2008 revised budget. Additionally, the. Governor's recommendation eliminates $100,000 for the Contingency Fund, which is reallocated to the Department of Administration's budget. The Governor recommends 45.0 FTE positions in FY 2008.and 39.0 FTE positions in FY 2009.

Rhode Island Commission for Human Rights The Governor's revised FY 2008 budget totals $1.3 million and consists of $951,677 in general revenue and $370,890 in federal funds. This revised level- of funding is $66,373 or 4.8 percent less than the level enacted by the Legislature. It.-consists of $32,520 in less general revenue and $33,853 in less federal funds.

The general revenue, decrease reflects statewide cost savings for lower than anticipated employee health benefit claims experience of $15,220; six uncompensated personal leave days for all state employees of 416,590 and statewide operating contracts and grants reductions of 2.7 percent from revised levels of

$710. Other changes to 2008 enacted federal funds expenditures include a current service adjustment for lower than anticipated federal spending of $25,553 and statewide cost savings of $8,300 for lower than anticipated health benefit claims experience, six uncompensated personal leave days for all state employees and statewide operating contracts and grants reductions of 2.7 percent from revised levels.

For FY 2009, the Governor recommends total expenditures of $1.4 million, comprising $991,659 in general revenue and $391,309 in federal funds. Compared to FY 2008 original authorization, this recommended funding level includes $7,462' more general revenue and $13,434 less federal funds, all of which reflect statewide cost adjustments for retiree health benefits, employee medical costs' and assessed fringe benefit rate.

The Governor-recommends enacted FY 2008 authorized full time equivalent (FTE) positions of 14.5 for both FY 2008-and FY 2009 respectively.

Public Utilities Commission For FY 2008, the Governor recommends total expenditures of $6.9 million for the Public Utilities Commission. This funding is comprised of $647,628 in general revenue, $97,097 in federal funds, and

$6.2 million in restricted receipts. This recommendation is $157,635 less than the enacted budget, and consists of $13,618 less general revenue, $3,027 less federal funds and $140,990 less restricted receipts.

The net reduction in general revenue relates to statewide adjustments savings related to lower than anticipated employee health benefit. claims experience of 42,669, six uncompensated personal leave days for all state employees equal to $7,978 and operating 'contracts and' grants reductions of 2.7 percent from revised levels of $2,971.For restricted receipts financing the net reduction from FY 2008 enacted level represents current service adjustment for lower than anticipated costs, including statewide cost savings for health benefit rates, six uncompensated personal leave days, and operating, contracts and grants reductions equal to 2.7 percent of revised level. Change in Federal Funds expenditures relate primarily to statewide savings for health benefit rates, six uncompensated personal leave days, and operating, contracts and grants reductions equal to 2.7 percent of revised level.

41

General Government For FY 2009, the Governor recommends total expenditures of$6.9 million, consisting of $100,547 in federal funds and $6.8 million, in restricted receipts. This reflects a net decrease of $226,873, or 3.2 percent, from FY 2008 original authorizations. This revised recommendation includes $661,246 less in general revenue, $423 more in federal funds and $433,950 more in restricted receipts. Compared to the General Assembly original enacted spending level, the reduction in, general revenue funding reflects a shift to restricted receipts of all general revenue expenditures for savings in general revenues in FY 2009 and beyond. Conversely, the net increase in restricted receipts reflects tle reallocation of general revenue expenditures to restricted receipts and the following statewide adjustments: savings from lower than anticipated employee health benefit claims.,experience,. $42,275; and savings from six uncompensated personal leave days for all state employees, $85,842.

The Governor recommends 45'0 FTE positions for FY 2008 revised operations, which is 0.7 FTE less than the level authorized by the legislature. It repiesents program staffing reduction mandated by the Governor. For FY 2009, the Governor recommends full time equivalent positions ceiling of 44.0 or 1.0 FTE less than the FY 2008 revised level for program reduction in FY 2009. For FY 2008 and FY 2009, the Governor, did, not recommnend FTE program expansions for two FTE -commissioners required by statute and included in. agency's FY 2008. revised and FY 2009 requests; estimated current service requirements were $123,171 and $260,344 respectively.

Rhode Island Commission on Women The Governor recommends a revised FY 2008 budget for the Rhode Island Commission on Women of

$104,330 in general revenue funds. This reflects a decrease of $3;873 from the.FY 2008 enacted level.

This reduction is relatedto current service adjustments and the following statewide adjustments: savings from lower than anticipated employee 'health. benefit claims .experience, $551; savings' from six uncompensated persona! leave days for all state employees, $2,079; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $293.

In FY 2009, the Governor, recommends a general revenue budget of $107,208, representing a $995 decrease from the FY 2008 enacted budget, which finances the current service costs for one staff position and associated operating costs.. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. Continued financing is provided for the Woman of.the Year banquet in FY 2008. The Governor recommends 1.0 FTE position for FY 2008 and FY 2009, consistent with the enacted budget.

42

Human Services Human Services Sunmmary The Human Services function of state government engages in a broad spectrum of activities including, but not limited to, income supports, client subsidies, case management and residential supports, and medical regulation, prevention, treatment, and rehabilitation services.

For FY 2008, the Governor recommends a revised all funds budget of $2.707 billion. Of this total,

$1.234 billion is general revenue, a decrease of $25.4 million from enacted levels. The Governor recommends 4,020.9 full-time equivalent positions in FY 2008, and 3,638.3 in FY 2009, a reduction of 382.6 FTE.

For FY 2008, the Human Services departments and agencies continue to leverage their resources so that both individuals and families achieve maximum potential and self-sufficiency. The social and economic needs of clients continue to be provided by the Office and Health and Human Services, Departments of Children, Youth, and Families; Elderly Affairs and Advocacy; Health; Human Services; and Mental Health, Retardation, and Hospitals. The Governor is committed to preventing child abuse and neglect, intervening for and on behalf of abused and neglected children and youths, and rehabilitating delinquent youth through education and training. The dual role of advocacy and education continues to be provided by agencies including Human Rights, Office of the Child Advocate, and Office of the Mental Health Advocate.

The Governor's proposed funding level of $2.613 billion for FY 2009 protects services for the state's most vulnerable populations, including the elderly, children and families, medically needy, mentally ill, developmentally disabled, deaf and hard of hearing, and persons with physical disabilities. This proposal consists of $1.179 billion in general revenue, $1.373 billion in federal funds, $41.6 million in restricted receipts, and $20.4 million in other funds. The recommendation constitutes 37.9 percent of the total proposed expenditures for the state. Social services block grants and cash and medical assistance programs constitute the major sources of federal funding. The chart below displays funding by source for the Governor's FY 2009 recommendation for the human service agencies and departments.

How it is Financed 0 RestrictecP Other Funds Receipts 0.8%

1.6%/ _J

. . General Revenue 45.1%

o Federal Funds 52.5%

General Revenue r3 Federal Funds m Restricted Receipts E3 Other Funds 43

Human Services The Govemor's FY 2009 recommendation includes direct and purchased services for residential care, medical care, and preventive health.. services, cash payments to individuals, and grant funding for non-governmental agencies. The operating costs, associated with the administration of these social services programs are also included. Personnel, which includes purchased services, accounts for $415.3 million, or 15.9 percent, of all expenditures programmed for human services. Other operating expenditures are recommended at $79.6 million, or 3.0 percent of proposed total human services expenditures, with capital projects slated for $22.8 million, or 0.9 percent. Grants and benefits expenditures of $2.087 billion account for the largest outflow of identified resources, reflecting 79.8 percent of the total human services function.

The chart below shows the outflows of all resources by category of expenditure for the human services function.

I .. I IHow it is Spent M Personnel M Operating Capital Transfers 15.9%10 Operating Purchases and 0.3%, __,ý I Supplies and Equipment ................

.......................... Expenses 0 .9 %, .................................

.................................. 3.0%

1l Assistance, Grants and Benefits 79.8%

w Personnel Operating Supplies and Expenses M AidTo Local Units Of Government E3 Assistance, :Grants and Benefits M Capital Purchases and Equipment 0 Debt Service Es Operating Transfers Executive Office of Health and Human Services The Governor's revised FY. 2008 budget for the Executive Office of Health and Human Services is $7.9 million, including $387,176 in general revenue, $7.2 million in federal funds, and $314,371 in restricted receipts. The recommendation includes an increase of $80,024 to general revenue appropriations, reflecting additions for one FTE position transferred from the Department of Human Services, realized turnover, and the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $3,916; savings from six uncompensated personal leave days for all state employees, $8,237; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $125. Increased federal funds of $1.3 million, primarily for contractors, reflects new and expanded grants awards.

For FY 2009, the Governor recommends $15.7 million, including $5.7 million in general revenue, $7.9 million of federal funds, and $2.1 million of restricted receipts. The general revenue increase of $5.4 million from the enacted FY 2008 budget includes additions of $5.2 million for 96.2 FTE positions transferred from constituent human services function agencies and also reflects adjustments required for 44

Human Services salary and employee benefits requirements. The FTE transfers willaccomplish centralization of business, legal and recordkeeping activities currently performed in these five agencies. Restricted receipts increase

$1.7 million, also in support of the centralization initiative. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9. percent trend growth in employee' medical benefit costs and also include funding for retiree health-benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Governor reconmmends the 6.0 FTE positions in FY 2008 and 102.2 in FY 2009...

Departmentof Children, Youth & Families The Governor recommends total expenditures of $234.2 million for the revised FY 2008 budget, including $151.9 million in general revenues, $79.6 million in federal funds, $855,135 in other funds, and

$1.7 million in restrictedjreceipts. The Governor's revised budget. includes a net increase of $2.7 million in general revenue expenditures, which represents a 1.8 percent increase over the enacted budget.

The enacted budget included savings related to the termination of Family Court jurisdiction for youth at the age of 18 receiving child welfare services.:*,Themyouth could voluntarily elect to receive eligible after care services at that age. The Family Court -has determined this legislation to be prospective and, therefore, any youth in DCYF custody prior to July 1, 2007 would not be subject to this statutory change.

New legislation has been submitted to achieve the savings in future years; however, the full reduction will not be achieved in FY 2008 requiring an addition of $7.3.,million from the enacted level. Other contributing factors to the increase in general revenue fund are:

" An addition of $600,000 in the Children's Behavioral Health Program for the psychiatric hospital initiative that had been erroneously budgeted in the Department of Human Service.

An increase of $2.3 million for personnel and overtime at the Rhode Island Training School, which is related to reductions enacted in the FY 2008 budget from reduced staffing associated with the end of jurisdiction at age 17. This law has been repealed, requiring restoration of the anticipated savings in the enacted budget.

The transfer of 3.0 FTE from the Department of Administration to the Department of Children, Youth & Families for maintenance seruices contributed to an increase of $252,615.

The Department continues its success in controlling the number of night-to-night residential placements, which had been an on-going problem. The Department has restructured programs into a more community-based system of support. The goal of therestructuring is to deliver more children's services in the home and community settings, giving the children, guardians, and community the benefit of inclusion in the rehabilitative process, and to ýallow the development of more natural supports. For FY 2008 revised, the reprogranmling of Children's Behavioral Health Services and the Child Welfare program produced a net reduction of approximately $1.0 million.

Vacancy savings of $2.4 million in general revenues are recognized to achieve personnel savings appropriated to the Department of Administration in the FY 2008 enacted budget. The revised budget includes other reductions associated with the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $716,283; savings from six uncompensated personal leave days for all state employees, $1.1 million; and, statewide operating, contracts and grants reductions of 2.7 percent from the revised levels, $2.5 million.

For FY 2008 revised, the Governor recommends 788.5 FTE, which is 16.5 FTE less than the enacted authorized level. The recommended level reflects the reduction of 75% of the vacancies as of September 15, 2007 with the exception of the 3.0 additional FTE for maintenance services.

45

Human Services The Governor recommends total expenditures of $209.6 million in FY 2009 for the Department of Children, Youth & Families. This is comprised of $137.0 million in general revenue, $69.6 million in federal funds, $1.2 million in other funds, and $1.8 million in restricted receipts. The recommended FY 2009 general revenue budget decreases by $12.3 million from the enacted FY 2008 budget.

Medical assistance programs are redesigned significantly in FY 2009. The Ocean State Waiver initiative seeks to transform Medicaid benefits from provider-centric to a person-centered, opportunity driven, outcome based system of coordinated health care across all provider types and all, agency Medicaid, programs statewide. Personal responsibility, choice, consumer empowerment and independence are all essential goals of the initiative. In the Department of Children, Youth and Families programs, these goals are reflected in the following areas:

0 Savings of $3.7 million based on DCYF program re-design. This will reduce residential placements by 300 youth, which 60 of these children are out of state placements; 0 Savings of $1.4 million related to shortening the length of stay for youth at the Rhode Island Training School.

Other reductions within the Department of Children, Youth & Families were the-result of a thorough examination of agency programs and identification of services that could be improved to operate .in a manner that would prove to be cost effective and produce efficient services for the population it attends to. This process produced approximately $12.5 million in savings, $8.7 million in general revenues. These reductions include:

" Savings of $125,000 in. general revenues for a reduction in Child Welfare Institute trainings;

Savings of $1.1 million,, including $689,618 in general, revenues, by shifting in-patient diagnostic assessment screening evaluations to community-based providers;

" Savings of $155,796 general revenues from the elimination of probation and parole monitoring of adults;

Savings of $329,546 general revenues by restructuring the delivery of educational services at the Rhode Island Training School (RITS);

Savings of $250,000 general revenues by reducing the number youth that require one-on-one supervision at the RITS;

Savings of $60,000 general revenues at the RITS by incorporating more services into the medical services contract;

Savings of $150,000 general revenues by transferring responsibilities of the RITS clinical social workers to treatment rather than case management;

Savings of $292,869 general revenues for a re-structured Systems of Care Oversight;

Savings of $5.1 million, including $3.4 million in general revenues, associated with the transformation of services provided to youth and to no legal status children;

Savings of $33,672 general revenues with the utilization of employee flex-time, which would reduce overtime;

" Savings of $277,834 general revenues by changing the status of family members that have unlicensed foster care to guardianship;

Savings of $4.0 million, including $2.4 million in general revenues, with the restructuring of clinical/case review functions;

" Savings of $393,879 general revenues by converting beds to community-based individual wraparound services; 46

Human Services

Savings of $163,395 general revenues reflecting funding at *half of enacted levels for legislative grants;

Savings of $151,143 general revenues with the assumption that no services will be overlapped between providers; and

" Savings of $49,607 general revenues with the requirement that local educational authorities provide financing for youth that are court ordered to receive educational assessments.

" The reductions for FY 2009' from the FY 2008 enacted level were offset by the transfer of 3.0 FTE from the Department of Administration to the Department of Children, Youth & Families for maintenance services; which contributed: to -an increase, of $252,615. Associated operating expenses related to this transfer totaled $456,300.

Recommended program FTE position reductions and transfers for the Department of Children, Youth & Families are consistent with those proposed by:the agency, Office-of Health and Human Service consolidations, and Medicaid reform initiatives. The following list displays the result of the agencies' reductions and transfers.

" The Office of Health and Human Services will centiali'ze, the 'management and budget, purchasing, and legal functions that are performed by the five cabinet level human service agencies in order to coordinate and administer programs-in a more efficient'mainner.

Program reduction of 7.0 FTE. -. -

Transfer of 22.0 FTE and $1.4 million to the-Office of Health and Human Services.

Program reduction of 12.5 FTE, which relates to elimination of youth'receiving services from the department that fall under the no legal status category.

" Program reduction of 13.5 FTE, from reductions in beds at the Rhode Island Training School.

. The Governor's recommendation for FY 2009 is 73315'FTE.

Departmentof Elderly Affairs and Advocacy Department of Elderly Affairs. The Governor recommends a revised budget for FY 2008 for the Department of Elderly Affairs of $36.3 million. Expenditures are comprised of $4.7 million in gas tax receipts, $17.4 million in general revenue, ;$12.9 million in federal funds, and $1.3 million in restricted receipts. The revised financing level is a decrease of $730,088 or 1.9. percent, from the FY 2008 enacted budget. The revised recommendation includes $1.2 million or 6.4 percent less in general revenue;

$151,332 or 1.2 percent less in federal funds; $640,000 or 92.8 percent more in restricted receipts; and,

$36,551, or 0.7 percent more in gas tax financing.

Major changes in general revenue expenditures from FY 2008 original appropriations include the following:

($663,771) for savings in payroll costs related to Governor-mandated program staffing reduction and normal turnover

$423,000 in added expenditures to finance "RIDE" (statewide Para transit) transportation services at FY 2007 levels

($956,578) in reduced general revenue support for RIPAE drug formulary benefits, including transfer of $710,000 to RIPAE Rebates (restricted receipts).

0 ($414,841) in statewide savings, including $326,182 in non-payroll management savings in operating, contracts and grants.

47

Human Services

$119,371 in added payroll costs for the transfer of one full time equivalent position from the Department of Mental Health Retardation and Hospitals.

Major changes in federal funds expenditures from FY 2008 original enacted levels' include the following:

($53,348) in reduced Title III expenditures due to lower than anticipated costs, including statewide savings for employee health benefits and six uncompensated personal leave days.

($33,938) in reduced eligible MEDICAID expenditures including statewide savings for employee health benefits and six uncompensated personal leave days.

The major change in restricted receipts expenditures, from FY 2008 original. authorizations is due to the shift from general revenues for RIPAE drug formhulary benefits of $7 10,000.

Commission on the Deafand Hard'ofHdaring.' The Governor recommends FY 2008 revised financing of

$326,595, consisting solely'0of genei'al revenues,.to finance the Commission's personnel, operating and interpreter referral services.. This represents' a' decrease: of $43,559, or 11.8 percent, from the FY 2008 enacted level. The downward adjiistmrent is primarily attributable to savings generated, from the partial-year vacancy of a';inte'rpreter referral specialist as well as the following statewide adjustments: savings from lower than anti'cipated employee health benefit claims experience, $4,007; savings .from six uncompensated personal leave days for all state employees, $4,998; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $2,191. Federal financing of $17,500 included in the en'acted budget has been withdrawn due to the exhaustion of a grant for emergency interpreters.

Staffing authorizations remain level at 3.0 FTE.

Developmental Disabilities Council. The Governor recommends revised FY 2008 expenditures of

$405,702, all of which is federal funds from the Administration on Developmental" Disabilities, US Department of Health and Human Services. This revised level is $55,409 less than the level appropriated by the legislature and includes statewide cost savings of $5,717, comprising six uncompensated personal leave days equal to $3,452 and lower than 'anticipated 'm l1byee health' benefit claim experience of

$2,265.

The Governor's revised FTE ceiling recommendation is the FY 2008 enacted ceiling of 2.0 full time equivalent positions.

For FY 2009, the Governor recommends the integration, consolidation and merger of the agency into the Department of Elderly Affairs and Advocacy in compliance with Article 3 of the FY 2008 Budget Act.

For the purpose of maintaining comparability across programs and at the agency level, historical expenditures have been reflected as a program within the newly created department.

Governor's Commission on Disabilities. The Governor recommends revised expenditures of $780,912 for FY 2008. This consists of $350,626 in general revenue, $179,380 in federal funds, $236,551 in Rhode Island Capital Plan funds, and $14,355 in restricted receipts. The revised general revenue funding level is

$185,149 less than the FY 2008 enacted level. The majority of this decrease reflects a savings of

$168,431 in personnel expenses due to 2.0 FTE positions becoming vacant in July of 2007, which authorization to fill these positions was not granted for FY 2008. Others savings are related to the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $3,787; savings from six uncompensated personal leave days for all state employees, $5,856; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $1,928. For FY 2009, the Governor's Commission on Disabilities will be consolidated into the Department of Elderly Affairs and Advocacy.

48

Human Services The Governor recomnends total expenditures of $911,985 in FY 2009, including $413,651 in general revenue funds, $189,769 in federal funds, $8,565 in restricted receipt6, and $300,000 in Rhode Island Capital Plan funds. The recommended general revenue funding in FY 2009 is $122,124 less than FY 2008 enacted levels.. This decrease reflects the reduction of 1.0 FTE for FY 2009 compared to the FY 2008 enacted budget. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on atn actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The recommended FTE ceiling for FY 200$8 is 5.6 FTE and 4.6 FTE for.FY 2009.

Pursuant to action of the Legislature in Article 3 of the FY 2008 Budget Act, the Governor's recommended FY 2009 budget includes the combination of the Commission on. the Deaf and Hard of Hearing, Rhode Island Developmental Disabilities Council, the Governor's Commission on Disabilities and Department of Elderly Affairs in a new Department of Elderly Affairs and Advocacy. It should be noted that while the FY 2008 supplemental appropriations act reflects the constituent agencies as independent entities, consistent with enacted appropriations, the FY 2009.appropriations act recognizes the combination of the agencies as programs within the ne W depaftment. ... owexver, to achieve orderly and coherent comparisons of the history, enacted appropriations, and two recommendation years, these documents display the agencies as a combined entity in FY 2008 as well as FY 2009. Thus, forFY2009, the Governor recommends total expenditures of $35.3 million, consisting of $4.7 million in. gas tax receipts, $300,000 in Rhode Island Capital Plan Funds, $16.8 million in general revenue.$ 12.9 million in federal funds, and $628,565 in restricted receipts. Rhode Island Capital Plan financing appears in the Department's recommendation in the amount of $300,000, for implementation* of and compliance with Americans with Disabilities Act projects related to accessibility. The recommended budget for all funds is $3.6 million or 9.1 percent less than the FY 2008 enacted budget. General revenues decrease by $2.7 million or 13.9 percent, federal funds decrease by $818,98.5 or 6.0 percent, restricted receipts decrease by

$112,047 or 15.1 percent, and other RICAP funds increase by $100,000 or 50.0%.

Major changes in general revenue expenditures from FY. 2008 original appropriations include the following:

a ($727,927) in reduced expenditures for savings in payroll costs related to Governor-mandated program staffing reduction and normal turnover' 0 ($421,028) in reduced costs for the Home and Community Care Co-pay programs by increasing client co-payments a ($187,595) in reduced expenditures for savings in customer information service grant funding

. ($319,076) in reduced spending for savings in the "RIDE" transportation program due to an increase in clients co-payments a ($122,502) in reduced payroll costs due to the'transfer of two full time equivalent positions to the Executive Office of Health and Human Services (EOHHS) 0 $234,075 in. increased expenditures for unachieved Buy Rite Value-based purchasing savings 0 ($650,000) in reduced drug purchases under the RIPAE program due to benefit changes recommended by the Governor 0 ($1.1 million) in reduced activities for various community service objectives under the aegis of the General Assembly Major changes 'in federal funds expenditures from FY 2008 original enacted levels include the following:

49

Human Services

" ($465,739) in reduced Senior Community Service Employment program expenditures due to its transfer to the Department of Labor and Training.

" ($198,725) in reduced Title BI expenditures due to lower than anticipated costs, including net statewide savings for employee health benefits, retiree health and assessed fringe benefits rates.

($52,847) in reduced eligible MEDICAID expenditures including net statewide savings for employee health benefits, retiree health and assessed fringe benefits rates.

Changes in restricted receipts expenditures compared to FY 2008 original authorizations include current service adjustments for available cash resources and other statew ide adjustments to health benefit, retiree health benefits and assessed fringe benefits rates, which total $112,047 in reduced spending.

The Governor recommends an FTE position ceiling of 54.6 in the FY 2008 revised budget, which is 2.0 FTEs less than the level originally authorized for FY 2008 and reflects programs staffing reductions. For FY 2009, the Governor recommends 44.6 FTEs or 10.0 FTEs less than the revised level recommended for FY 2008, which includes the transfers of two:FTEs to the Executive Office of Health and Human Services (EOHHS). Other changes from FY 2008 revised level include the transfer of one FTE from the Department of Mental Health, Retardation and Hospitals and program reductions totaling 11.0 FTEs.

Departmentof Health The Governor recommends total expenditures of $132.3 million in the FY 2008 revised. budget: It includes

$29,410 in other funds, $32.3 million in general revenue, $74.8 million in federal funds and $25.1 million in restricted receipts. It also represents a net increase of $7.1 million from FY 2008 enacted authorizations, which consists of increases in other funds of $5,734 and $9.5 million in federal funds offset by decreases in general revenue of $2.2 million and restricted receipts of $310,946.

Major changes in general revenue expenditures. from fiscal 2008 original authorizations include the following:

o ($1.0 million) in statewide savings, consisting of $28,134 for rec6rds center charges, $249,493 for lower than anticipated employee health benefit claims experience, $429,950 for six uncompensated personal leave days for all state employees, and $310,090 for statewide operating contracts and grants reductions of 2.7 percent from revised levels.

$369,892 in general revenue addition to reimburse certain disallowed costs for Disease Control grants to the department.

($1.3 million) withdrawal from 2008 enacted appropriations for leased space cost, which will not be incurred due to the decision not to sell the Chapin Building, which houses the Health Laboratories.

0 ($868,408) in related payroll savings for turnover, overtime and program staffing reductions.

Major changes to FY 2008 enacted federal funds expenditures include:

$1.8 million in increased funding for public health and social services bioterrorism preparedness program.

$0.9 million net increased funding from the Centers for Disease Control Pandemic Influenza Planning program to procure necessary equipment and medication.

$0.1 million in increased funding from the EPA for a safe public water supply 0

50

Human Services 0 $0.2 million in increased Justice Research and Development funding pertinent to the'application of DNA and CODIS technology for the prosecution of criminal suspects.

$1.3 million for the development and implementation of a secured statewide health information exchange system that allows the sharing of health information between health professionals and patients.

$4.2 million in increased Special, Supplemental Food benefits from the US Department of Agriculture for the Women and Infant Child (WIC) nutrition program

$0.2 million in increased Family Planning Services for low income persons

($0.4 million) in reduced funding for Payment to States for Child Care services 0 $0.2 million increase for the federal share of medical assistance benefits to low income persons for the Family Outreach Program, which seeks to bring families into contact with the various services offered by the department.

0 $0.4 million in increased funding under the Ryan White Act for families afflicted with HIV a $0.3million in increased funding for HIV prevention pr6gra'm s, education and fraining.

$0.2 million in increased funding for diabetes care and education

$0.4 million in increased funding for the surveillance of emerging pathogens

$0.4 million in increased funding to promote the health andvwellness of disabled persons

($0.4 million) in net reduced funding for comprehensive cancer control, including breast, cervical, and colorectal cancersl Major changes to FY 2008 enacted restricted receipts expenditures include:

$0.6 million in increased expenditures due to anticipated increases in biIlings for federal grants administered.

$0.1 million in non-recurring funding for Common Ground---a collaborative between the state and local public health agencies to improve preparedness and chronic disease prevention and control.

$1.0 million for the purchase of pandemic flu equipment and medication financed from health insurers assessments.

0 ($1.8 million) in reduced expenditures from enacted anticipated levels for infant and children immunization.

For FY 2009, the Governor recommends total expenditures of $124.2 million for the Department of Health.

This includes $29,410 from other funds, $30.8 million from general revenues, $68.1 million from federal funds, and $25.4 million from restricted receipts. This level of funding is $1 million, or 0.8 percent less than original authorizations by the General Assembly for FY 2008. This reduced level of funding consists of increases in federal funds of $2.8 million and other funds of $734 that were offset by decreases in general revenues of $3.7 million and restricted receipts of $43,990.

51

Human Services Major changes to general revenue expenditures in FY 2009 compared to FY 2008 original authorizations include the following:

($0.9 million) in net statewide savings consisting of increased funding for assessed fringe benefit charges of $79,509 that' were offset by savings in record center charges of $23,692, legislative

.community service objective grants of $583,712, health benefit rates of $149,542 and retiree health benefits of $214,315.

($0.7 million) in related payroll savings for turnover, overtime and staffing reductions.

($1.3 million) adjustment for FY 2008 appropriations for leased space cost due to the decision not to sell the Chapin Building, which h6uses the. Health Laboratories.

(1.5 million) reduction for.conversion to restricted receipts of the newborn screening and hearing programs recommended. in the, FY. 2009 budget act along with an increase in fees, to make the program self-supporting.

Major decreases to federal funds expenditures compared to original FY 2008 authorizations include the following:

($1.7 million) in anticipated reduced Centers for Disease Control funding for bioterrorism activities

$0.2 million in increased continuous Justice Research and Development funding pertinent to the application of DNA and CODIS technology for the prosecution of criminal suspects.

$0.6 million for the continuous development and implementation of a secured statewide health information exchange system that allows the sharing of health information between health professionals and patients. .

0 $4.2 million in increased continuous Special Supplemental Food benefits from the US Department of Agriculture for the Women and Infant Child (WIC) nutrition program.

0 ($0.4 million) in expired funding for the health and wellness of disabled persons

($0.4 million) in net reduced funding for comprehensive cancer control, including breast, cervical, and colorectal cancers.

($0.4 million) in reduced funding for. Payment to States for Child Care services

$0.4 million in increased funding under the Ryan White Act for families afflicted with HIV

$0.3 million in increased funding for HIV prevention programs, education and training.

$0.2 million in increased funding for diabetes care and education The Governor recommends full time equivalent positions of 437.1, which is a reduction of 21.9 vacant full time equivalent positions from the level originally enacted for FY 2008. For FY 2009, the Governor recommends 409.5 FTEs, a net reduction of 49.5 FTEs from FY 2008 enacted level. The reduction includes 16.6 FTEs transfer to the Executive Office of Health and Human Services, one FTE transfer from the Department of Mental Health Retardation and Hospitals, and program staffing reductions equal to 10.0 52

Human Services FTEs in the various programs of the department.

Departmentof Human Services The Governor recommends revised appropriations of $L.812 billion for FY 2008, including $795.9 million of general revenues,. $1.006 billion of federal funds,, and $10.1 million of restricted receipts and other funds. This represents an increase of $567,707, on an all funds basis, from the enacted budget. The revised budget for FY 2008 includes a reduction of $15.3 million in general revenue expenditures, an increase of $16.2 million in federal funds, and a reduction of $400,000 in restricted and other funds.

The general revenue change includes the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $840,526; savings from six uncompensated personal leave days for all state employees, $1,077,747; and, statewide operating, contracts and grants reductions of 2.7- percent from revised levels, $21:,135,431. Ani additional reduction of $19.9 million of Medicaid funds is included for the statewide operating, contracts and grants reductions of 2.7 percent.

Revised FY 2008 Medical Benefit expenditure estimates adopted by the November 2007 Caseload Estimating Conference (CEC) increased $9.0 million from general revenue enacted levels, and by $20.2 million all funds. The net general revenue addition attributable to CEC adopted caseloads for cash assistance and child care is $2.9 million. The Governor's proposed supplemental recognizes the availability of $8.0 million in additional federal Medicaid funds available to offset transportation and S-CHIP managed care expenditures recognized as general. revenue costs in the adopted CEC totals; these changes reduce general revenue and increase federal expenditures in this amount., 'he Governor also recommends the addition of appropriations of $7.0 million general revenue funds and $14.7million all funds in FY 2008 for an accelerated uncompensated care distribution to Slater Hospital; this will result in increased FY 2008 general revenue receipts of $14.7 million.

In order to address statewide expenditure forecasts in excess of enacted appropriations, the Governor proposes several benefits reductions for initiation in FY 2008:

Savings of $666,667, all general revenue funds, from' removing approximately 2,000 children from state-only managed care health care coverage. This change requires revision of state statute.

" Savings of $2.0 million, including $1.0 million general revenue funds, from revising reimbursement schedules for health benefits for SSI eligible populations, primarily children in Department of Children, Youth and Family caseloads.

Savings of $2.7 million, including $1.3 million general revenue funds, from revising utilization and authorization levels, and from revising reimbursement schemes for Children's Intensive Services benefits.

. Savings of $313,775, including $150,000 general revenue funds, from requiring prior authorization for high-cost imaging procedures for Medicaid clients.

For FY 2009, the Governor recommends total expenditures of $1.765 billion for the Department of Human Services. This total includes $767.9 million from general revenue, $987.3 million from federal funds, $125,000 from RICAP funds, and $9.4 million from restricted receipts.

Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees.

53

Human Services The agencybudget continues to finance: cash and medical. assistance programs at caseload conference consensus values, except as noted below; training and, support services for family assistance programs; continued services to veterans, the blind and visually impaired, and other assisted populations. Seventy-six percent of the agency's expenditures are for medical benefitspayments.

The general revenue decrease in program Central Management from the enacted FY 2008 budget includes a reduction of $2,734,126, reflecting funding at half of enacted levels for legislative grants, and a reduction of $3,324,830 from eliminating the state supplement to federal Head Start programming. The reduction of $925,656 in the program's restricted indirect cost recovery' fund reflects transfer of 21L0 filled FTE positions to the Executive Office of Health and Human Services,.due to centralization of legal and fiscal positions in that agency.'

In program Child Support' Enforcement, a decrease of $1.9 million, including $1.1 million general revenue funds from enacted FY 2008 levels primarily reflects personnel reductions in the program, including: abandonment of seven vacant positions effective September, 2007; layoff and elimination of 5.6 filled FTE, positions;. transfer of one *ositibn to DOA central services; and, transfer of 11.6 filled FTE positions to the Executive Office of Healih lanid Human Services, reflecting centralization of legal and fiscal positions in that agency.

In program Individualan'd Family Support, a decrease of $1.7 million, general revenue funds from enacted FY 2008 levels includes a reduction of $1.0 million from Family Independence Program education and training vouchers, to be replaced by Work First program reforms, and from personnel reductions in the program including: abandonment of 15.4 vacant FTE positions effective September, 2007; layoff and elimination of 18.0 filled FTE positions; transfer of three positions to DOA central services; and, transfer of 7.0 filled FTE positions to the Executive Office of Health and Human Services, reflecting centralization of legal and fiscal positions in that agency.

The Governor's budget recommendations for both FY 2008 and FY 2009 finances the operation of the Rhode Island Veterans' Home and the Rhode Island Veterans' Cemetery, and include $5.9 million from federal and restricted resources for capital improvements and equipment in FY 2008, and$3.8 million in FY 2009. Increases of $582,553 general revenues compared to FY 2008 enacted levels reflect, Veterans' Home operational current services costs, which are not being reduced, aside from 2.3 vacant and unfunded turnover positions, and two vacant and funded positions transferred to DOA and to the Executive Office of Health and Human Services. Savings from elimination of 28.0 filled FTE positions and associated food costs, minus added costs for a privatization contractor and for employee severance costs, reduce general revenue requirements by a net amount of $686,411, but these items were not financed in enacted appropriations, and have no material difference when compared to enacted levels.

In program Health Care Quality, a decrease of $4.7 million, including $2.0 million general revenue funds, from enacted FY 2008 levels, includes a reduction of $1.0 million all funds and $512,102 general revenues for information management contractors, and from personnel reductions :in the program including: abandonment of 12.7 vacant FTE positions effective September, 2007; layoff and elimination of 5.0 filled FTE positions; and, transfer of 2.0 filled FTE positions to the Executive Office of Health and Human Services, reflecting centralization of fiscal positions in that agency.

In FY 2009, current payment standards are maintained for clients receiving cash payments under the Family Independence Program (FIP).' After reaching a peak caseload of 64,000 persons in 1994, the number of persons receiving cash assistance continues to decline. The November 2007 consensus caseload conference (CEC) estimated that 25,100 persons would receive Family Independence Program cash assistance in FY 2008, a 14.5 percent reduction from FY 2007 experience, declining to 23,000 persons in FY 2009, a reduction of an additional 8.4 percent. Consensus caseload conference estimates 54

Human Services project 8,400 subsidized childcare slots in FY 2008, and 7,900 slots in: FY 2009, a decrease of six percent, as clients achieve exit from the program. Decline in both of these benefits reflects the goal of placing clients into unsubsidized employment, and. the Governor's stated principle that benefits should be extended only to eligible and entitled clients and. only after all federal and- third party participation: has been maximized.

The Governor's FY 2009 Budget includes statutory language to establish Work First, a replacement program for the Family Independence Act..The program will provide employment and support Services along with temporary cash assistance so that parents can participate in the workforce rather than depend on public assistance to support themselves and their children. In FY 2009, revisions to expenditures will occur solely within federal appropriations, due to maintenance of efforts requirements on general revenue funding. The actual reallocations among federal .accounts are not yet recorded in the Technical Appendix document.

Adopted consensus caseload conference 'estimates for cash assistance payments in FY 2009 decreased by

$2.1 million compared to adopted FY 2008 levels. This reflects savings of $3.8 million from the reduction in FIP caseloads offset by additions of $752,000 for child care slots, due to recognition of a provider.rate increase (see revisions below) offset by the reduction in the number of slots, plus increased SSI estimates of $675,818 and increased estimates for General Public Assistance of $268,290.

The Governor's recommended FY 2009 Budget includes revisions for child care benefits compared to adopted CEC estimates:

Savings of $500,000, all general revenue funds, from restricting reimbursements to non-certified and unlicensed providers.

" Savings of $4.0 million, all general revenue funds, from eliminating a provider rate increase, estimated at eight percent, scheduled for July 1, 2008. This will require statute change The Supplemental Security Income,(SSI) caseload historically has increased on a. continuous basis. The adopted caseload conference estimates are 31,725 recipients in FY 2008, and 32,200 in FY 2009, compared to actual cases of 31,285 in FY 2007. The 1..5 percent annual growth rate results from a continued growth in the disabled component and a slight decline in the state's elderly population.

For FY 2009, the Governor proposes to maintain client eligibility, but to reduce the state's supplement in an amount equivalent to the proposed federal cost-of-living adjustment scheduled for January 1, 2009. The client will receive the same payment as in December, 2008. This is estimated to reduce general revenue costs by $2,7.million.

The General Public Assistance Bridge Program will be maintained in FY 2009, providing limited cash assistance to eligible persons and a medical program of restricted scope. The caseload conference estimate is 415 persons in FY 2008 and 420 persons in FY 2009.

Medical assistance programs are redesigned significantly in FY 2009. This initiative seeks to transform Medicaid benefits from provider-centric to a person-centered, opportunity driven outcome based system of coordinated health care across all provider types and all agency Medicaid programs statewide. Personal responsibility, choice, consumer empowerment and independence are all essential goals of the initiative.

Within Department of Human Services programs, these goals are reflected in the following areas:

Hospitals- savings of $6.3 million, including $3.0 million general revenues, from reimbursement redesign for inpatient psychiatric placements.

55

Human Services

Hospitals- savings of $737,930, including $350,000 general revenues, from reimbursement redesign for outpatient procedures.

Nursing Homes- savings of $46.6 million, including $22.1 million general revenues from diversion of placement to community. and home based care settings on a voluntary basis.

Offsetting costs for expanded community and home based alternatives are recognized and are available in adopted CEC totals pursuant to statutory diversion formula.

" Managed Care- savings of $6.4 million, including, $3.0 . million general revenues from establishment of consumer directed health care plans, which reinforce wellness and wise purchasing behaviors.

" Managed Care- savings of $2.3 million, including $1.1 million general revenues from establishment of wraparound; preventive and f~llow-up programs for adults in the program.

" Managed Care- savings of $4.7 million, including $2.2 million general revenues from accountability initiatives regarding premiUm formulation and enforcement.

Managed Care- savings of $2.6 million, including $1.3 million general revenues from mandatory enrollment requirements.

.0 Managed.Care- savings of $3.3 million, including $1.6 million general revenues from Fair Share third party liability efforts to ensure that Medicaid is the payer of last resort.

Managed Care- savings of $10.9 million, including $5.2 million general revenues from Selective

..Contracting to purchase at competitive best prices all appropriate procedures.

Managed Care- savings of $6.6 million, including $3.1 million general revenues from revising managed care administration reimbursement principles.

Managed Care- savings of $2.7 million, including $1.3 million general revenues from mandatory adult health care management programs.

Managed Care- savings of $7.4 million, including $3.5 million general revenues from adult primary care coordination activities.

Pharmaceuticals- savings of $1.1 million, including $500,000 general revenues from revisions to dispensing fee schedules.

Pharmaceuticals- savings of $1.1 million, .including $500,000 general revenues from establishment of a preferred drug list for mental health medications.

Pharmaceuticals- savings-of $316,256, including $150,000 general revenues from maximizing rebates for medications administered in a hospital setting.

Other initiatives modifying CEC adopted baselines for Medicaid programs include:

Hospitals- savings of $2.5 million, including $1.2 million general revenuers, from establishment of protocols for assessments and interventions for high cost and multi-disciplinary (interdepartmental) cases.

Hospitals- addition of $8.4 million, including $4.0 million general revenues, from establishment of a Diagnostic-related (DRG) model to replace the current prospective payment methodology.

Nursing Homes- savings of $5.0 million, including $2.4 million general revenues from revisions to the labor reimbursement ceilings in the nursing homes principles of reimbursement.

Nursing Homes- addition of $500,000, including $237,150 general revenues from conversion of tracheotomy placements from Eleanor Slater Hospital to private nursing facilities.

56

Human Services

" Nursing Homes- savings of $2.5 million, lincluding $1.2 million general revenues from establishment of protocols for assessments and interventions for high cost and multi-disciplinary (interdepartmental) cases.

" Nursing Homes- savings of $4.0 million, including $1.9 million general revenues from deferral of a scheduled annual provider adjustment from October 1, 2008 to April 1, 2009.

" Managed Care- full-year savings of $4.0 million, all general revenues, from removing approximately 2000 children from state-only managed care health care coverage.

" Managed Care-'annual savings of $11.0 million, including $5.2 million general revenue funds, from selective contracting of hospital and children's services.

" Managed Care-; savings of $558,718, including $265,000 general revenues .from expanding Rite Share efforts to maintain Medicaid-eligible clients in employer-sponsored health coverage plans.

" Managed Care- savings of $23.1 million, including $10.9 million general revenue funds, from restricting eligibility for adults in managed care to below 133 percent of the federal poverty limit (FPL) from the current 185% FPL.

Managed Care- savings of $5.0 million, all general revenues, from funds reserved by the November CEC for obligations to RIPTA for transportation for managed care clients; this obligation will instead be financed from establishment of a transportation benefit from federal TANF funds within the FIP/ Work First program.

" Managed Care- savings of $1.3 million, all general revenues, from elimination of subsidies for health care coverage for state child care providers.

" Other- annual savings of $906,444, including $43*0,000 general revenue funds, from requiring prior authorization for high-cost imaging procedures for Medicaid clients.

" Other- savings of $1,000,000 from transfer of general revenue costs to restricted receipts from expansion of the Children's Health Account assessment on health care provider plans.

Uncompensated Care payments to community hospitals are recommended at $114.2 million, including

$54.2 million general revenues, as adopted by the November CEC. Reallocation of $2.6 million adopted general revenues to federal S-CHIP funds is recognized, pursuant to the latest federal awards schedule.

Basic medical services, provided through the Rhode Island Medical Assistance Program, will continue for: families receiving SSI benefits; children in foster care; Medicare beneficiaries having limited income and resources; pregnant women, parents and children with low incomes including pregnant women denied federal assistance due to their immigration status; and, persons meeting the criteria for the Categorically Needy Program. Rhode Island's Medical Assistance Program will continue to provide services in all mandatory categories, as well as optional categories including dental, optometry, hospice, podiatry, ambulance and prescription services.

Recommended FTE positions for FY 2008 total 1,067.6, a reduction from the enacted ceiling of 1,109.0 FTE, reflecting abandonment of 37.4 FTE positions vacant as of September, 2007, and transfer of four positions to DOA central services. Reductions in FY 2009 include elimination of 28.0 positions in Veterans' Home Dietary operations, 30.6 FTE positions for other layoffs, and reallocation of 42.6 positions to the Executive Office of Health and Human Services, reflecting centralization of legal and fiscal positions in that agency. The total recommendation for FY 2009 is 966.4 FTE positions.

57

Human Services Department of Mental Health, Retardation,and Hospitals The Governor's revised FY 2008 budget for the Department of Mental Health, Retardation, and Hospitals totals $482.1 million, including $234.2 million in general revenues, $234.9 million in federal funds, $2.6 million in restricted receipts, and $10.4 million in other funds.' On an all funds basis, the $482.1 million revised budget amount is $16.8 million less than the FY 2008 enacted budget, consisting of the following changes: decreases of $9.3 million in general revenues, $9.1 million in federal funds, and $446,166 in restricted receipts; and an increase of $2.0 million in other funds.,

The $9.3 million reduction in general revenue expenditures in the FY.2008 revised budget includes the following changes: reduction of $6.8 million in personnel costs, including $5.3 million is payroll and

$1.5 million in purchased contract services; reduction, of $4.9 million in operating; reduction of $68,760 in capital purchases and equipment; and an increase of $2.5 million for grants and assistance payments.

Of the. $9.,3 million reduction in general revenue, expenditures, $6.8 million is associated with statewide expenditure adjustments while $2.5 million .is associated with other department-wide adjustments. The statewide adjustments consist of : savings from lower than anticipated employee health:benefit claims experience, $1.0 million; .savings from six uncompensated personal leave days for all state employees,

$1,221,620; and statewide operating, contracts, and grant reductions of 2.7 percent from revised levels,

$4.6 million. Major programmatic .funding changes for FY 2008, excluding statewide changes, are described below:

For the Central Management program, the Governor recommends additional general revenues of $1.1 million, including: an. increase of $2.0 million for unachieved Buy Rite contracting initiative savings; a decrease.of $589,934 for payroll savings associated with employee turnover; a decrease of $266,169 for the transfer of 2.0 FTE to other departments;-, and an increase of $96,854 for operating.

For the Hospital and Community Support Program, the Governor recommends a reduction in general revenues of $493,856, including a decrease of $567,619 for turnover savings/layoffs, and increases of

$40,045 for operating costs and $38,626 for contract services.

For the .Services for the Developmentally Disabled Program, the Governor recommends additional general revenues of $562,198, including increases of $1.0 million for unachieved Buy Rite contracting initiative savings and $371,806 for operating costs, and decreases .of $219,646 for turnover savings/layoffs and $580,624 for grant and assistance payments to providers.

For the IntegratedMental Health Program, the Governor recommends a reduction in general revenues of

$81,961. Significant changes include increases of $1.0 million for unachieved Buy Rite savings and

$76,954 for purchased contract services; and decreases of $551,824 for. community medical assistance plan pharmaceutical expenditures, $489,734 for community mental health provider payments, and

$108,701 for turnover savings/layoffs.

For the Hospital and Community RehabilitationServices Program,the Governor recommends a reduction in general revenues of $3.5 million. The major changes include: decreases of $1.1 million for turnover savings/layoffs, $1.7 million for pharmaceutical costs transferred to Medicare Part D restricted receipts, and $474,675 for grants and assistance.

For the Substance Abuse Program, the Governor recommends a reduction in general revenues of $97,079, including decreases of $416,660 for delayed implementation of the Adjudicated Offender Residential Treatment program and $146,345 for turnover savings/layoffs; and increases of $446,841 for treatment and prevention services provider payments and $18,056 for purchased consultant services.

58

Human Services The Governor's FY 2009 recommendation totals $462.8 million,, including $219.6 million of general revenues, $226.7 million of federal funds, $2.4 million of restricted receipts, and $14.1 million of other funds. The general revenue portion of the budget reflects a decrease of approximately $23.8 million, or 9.8 percent, from the FY 2008 enacted budget.. The Governor's FY 2009 budget continues the restructuring of the Department, which was begun in FY 2008, to manage and control the growth in state expenditures. The major initiatives include the following:

Services for the Developmentally Disabled.,

4 Savings of $35.6'million, including $16.9 million in general revenue funds, from the planning and phase-in of a new less institutional, more diverse, service delivery model that is consumer driven and community: designed.: This will allow the Department to redistribute dollars and to offer more persons with developmental disabilities: a wider range of independent living options stressing family and natural supports, employment opportunities and ,diverse housing options ranging from the traditional 24-hour support, system' in group homes< to shared living arrangements. The Department proposes to provide persons with developmental disabilities with vouchers (supplementing SSI stipends) to allow persons with developmental disabilities and their families to choose the support system and setting that they.-find is the most appropriate. This is part of the statewide Medicaid Reform initiative to create a flexible delivery system.

Savings of $1,613,977, including $766,649 in general revenue funds, by continuing to right size the Rhode Island Community Living and Supports (RICLAS) system. The Department proposes to close three additional residential RICLAS group homes in FY 2009, which will reduce the number of RICLAS homes to 35. Supports for DD clients in RICLAS group homes cost approximately $137,886 per client with $55;154' in general': revenue. The Department- will consolidate vacancies across the system in preparation for the closure of the homes.

Integrated Mental Health Services

Savings of $1.5 in general revenue funds, by restructuring purchase of service arrangement for inpatient psychiatric service, for uninsured patients with serious and persistent mental illness by providing lower cost alternatives to hospitalization. This is part of a Medicaid Reform Initiative to create a competitive fee-for-service delivery system.

Savings of $1.1 million, including $500,000 in general revenue funds, by relocating mental health patients into from community hospitals into less restrictive settings. This is part of the Medicaid Reform initiative to create a flexible system that provides clients a range 'ofoptions for intensive community based therapeutic care.

Hospital and Community Rehabilitative Services

Savings of $3.9 million, including $1,831,985 in general revenue funds, from the privatization of dietary and housekeeping services at the Eleanor Slater Hospital. In the second year, savings from the privatizations are estimated to increase to $6.1 million, including $2.7 million in general revenue. The Governor continues to believe that these services should be privatized.

" Savings of $5.7 million, including $2.7 million in general revenue funds, by closing the Virks building and transferring geriatric/psych patients to other units in the hospital or to a less restrictive setting in the community. Approximately 28 patients will be transferred to community nursing homes. This will allow the Department to reduce staff by 70.0 FTE positions, and 59

Human Services transfer the fully vacated building to the Department of Administration: The Virks buildings will then be renovated for use as office space for humanservices agencies.

Savings of $3.0 million, including $1.4 million in general revenue funds will be managed by MHRH in collaboration with DHS by "Braiding" funding, to create a care continuum with a unified care management approach such as an Administrative Services Organization (ASO) based in the community, reducing :inpatient hospital days and .creating long overdue community alternatives and establishing a short term crisis stabilization unit at Eleanor Slater Hospital to divert people away from inappropriate use of community hospital emergency rooms.

Savings of $5.4 million, including $2.5 million in general revenue funds, by reducing personnel costs in the Hospital by restructuring various function in the hospital and reducing staff.. This includes eliminating the hospital staffing office; restructuring and reducing the medical staff, consolidating the nursing staff, ýconsolidating the nursing central supply function with the pharmacy.

Substance Abuse Program

Savings of $520,000 in general revenue funds by eliminating the Treatment and Alternatives to Street Crime TASC program also known as Treatment and Alternatives to Safe Communities.

Savings, of $2.0 million, including $1.0 million in general revenue funds, by reforming the substance abuse treatment reimbursement system. The Department proposes that the savings be realized through a reform of payment models for substance abuse treatment services, and performance.

o Savings of $241,172 in general revenue funds by a 50 percent reduction in legislative grants to substance abuse-related organizations.

For FY 2008 the Governor recommends an authorized FTE level of 1,675.6 positions. The reduction of 103.4 FTE positions from the enacted FTE level of 1,761,.0 is associated with. abandoning 101.4 vacant FTE positions,"many of which were unfunded, and the transfer of 2.0 FTE to other departments For FY 2009, the Governor recommends an authorized FTE level of 1,372.6 positions, which is 285.0 FTE less than the FY 2008 revised budget. Reductions in FY 2009 include the following: 88.0 positions in Eleanor Slater Hospital Dietary operations; 67.0 positions in Eleanor Slater Hospital Housekeeping operations; 105.0 positions in Eleanor Slater Hospital associated with program reductions, including 70.0 due to the closing of the Virks building and 11.0 due to general consolidation of financial and accounts payable functions; 13.0 positions transferred to OHHS as part of the consolidation of operations; 6.0 positions for the elimination of the Treatment Alternatives for Street Communities (TASC) program; and 6.0 positions in support functions department-wide.

Office of the ChildAdvocate The Governor's revised FY 2008 budget for the Office of the Child Advocate is $522,070, including

$484,569 in general revenue and $37,501 in federal funds. The general revenue appropriation in the revised FY 2008 is $36,188 less than the enacted budget of $520,757, reflecting agency specific reductions of $19,529, most of which are associated with turnover savings of $28,533, and statewide adjustments of $16,659. The statewide adjustments consist of: savings from lower than anticipated 60

Human Services employee health benefit claims experience, $6,539;. savings from six uncompensated personal leave days for all state employees, $9,294; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $829.

For FY 2009, the Governor recommends total expenditures $558',800, including $519,657 in general revenues and $39,143 in federal funds. The general revenue decrease of $1,100 compared to~the FY 2008 enacted budget includes a $1,760 decrease for personnel costs and a $660 increase for operating costs.

Personnel costs include. no cost of living :adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Governor recommends the enacted level of 5.8 FTE .positions in EY 2008 andFY 2009.

The Governor does not recommend merging the Office of the Child Advocate into a new Department of Advocacy. Instead, the Governor recommends that Office of the Child Advocate remain an autonomous agency in FY 2009.

Office of the Mental Health Advocate The Governor recommends revised FY 2008 general revenue expenditures of $405,456, 'a decrease of

$18,797 from the enacted level. The reduction is primarily attributable to the following statewide adjustments: sayings from lower than anticipated employee health benefit claims 'experience, $5,044; savings from six uncompensated personal leave days for all state employees, $8,162; and,.statewide operating, contracts and grants reductions of 2.7 percent-from revised levels, $349. A small amount of additional savings were also generated through a longer than anticipated lag in the hiring of a new Staff Attorney. The supplemental recommendation finances the operation of this office at the current service level. . .

The Governor recommends total FY 2009 general revenue expenditures of $431,171, reflecting full funding for agency current services and an increase of $6,828 over enacted FY 2008 levels.. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs'and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Governor recommends the enacted staffing authorization of 3.7 FTE positions for both FY 2008 and FY 2009.

61

Education Education Summary The Education function of state government includes services provided by the Department of Elementary and Secondary Education, Public Higher Education, the Rhode Island State Council on the Arts, the Rhode Island Atomic Energy Commission, the Rhode Island Higher Education Assistance Authority, the Historical Preservation and Heritage Commission, and the Rhode Island Public Telecommunications Authority. The' Governor recommends 3,979.2 FTE positions in FY 2008 and 3,915.3 FTE positions in FY 2009.

Two boards govern the major part of Education activities in Rhode Island. The Board of Regents, with the advice of the Commissioner of Education, establishes policy with respect to the operations of the Department of Elementary and Secondary Education, state education aid programs, the Central Falls School District, and the three state schools: the School for the Deaf, the Davies Career and Technical School, the Metropolitan Career and Technical School. The Board of Governors for Higher Education, with the advice of the Commissioner of Higher Education, establishes policy with respect to operations at the three state institutions of higher education.

The FY 2008 revised recommendation for Education agencies totals $1,927 billion, or $17.7 million more than enacted appropriations of $1,909 billion. As compared to the enacted budget, general revenue decreases $10.2 million, or 0.9 percent, federal funds increase $11.8 million or 6.0 percent, restricted receipts increase $376,793 or 4.4 percent, and other funds increase $15.6 million, or 2.7 percent.

In the Education function of state government, other funds consist of: Rhode Island Capital Plan Funds, Institutional Revenues, Sponsored Research Programs, Scholarships and Fellowships, Auxiliary Enterprises in Public Higher Education, and the Corporation for Public Broadcasting grant to the Rhode Island Telecommunications Authority.

r Other Funds How it is Financed 32.3%

Resrctedpt Recipt IU General Revenue 0.4% 56.7%

Federal Funds . .

10.5%

General Revenue [] Federal Funds

Restricted Receipts [] Other Funds The Governor recommends total expenditures of $1.985 billion for Education in FY 2009, including 62

Education

$ 1.126 billion from general revenue, $208.8 million from federal funds, $8.9 million from restricted receipts, and $641.7 million from other funds.

How it is Spent E3 Debt Service 13 Operating Transfers Assistance, Grants 1.9% 0.7%'

El and Benefits ... U Personnel 9.4% ....... 25.2%

M Capital Purchases . .

and Equipmenit 1.4% Operating Supplies and Ekpenses 8.4%

R Aid To.Local Units.. .

Of Government 52.9% .

E Personnel . 0 Operating Supplies and Expenses B Aid To Local Units Of Government 0 Assistance, Grants and Benefits W Capital Purchases and Equipment E3 Debt Service 0 Operating Transfers The Governor's general revenue recommendation of $1.126 billion for Education for FY 2009 is an increase of $2.8 million, or 0.2 percent over FY12008 enacted levels.

Aid to Local Units of Government accounts for 52.9 percent of all education. expenditures. State operations expenditures, which include personnel and operating, account for 33.6 percent of total education expenditures. Most of these expenditures. occur, in Public Higher Education. The remaining 13.5 percent of expenditures occur in grants and-benefits and capital outlays.

Elementary andSecondary Education The Governor recommends $1.103 billion in revised expenditures from all funds for the Department of Elementary and Secondary Education for FY 2008, an increase of 0.6 percent from the enacted level of $1.096. billion. Of this total, $906.4 million is general revenue expenditures,

$188.6 million is federal grants, $7.1 million is restricted receipt funds, and $1.3 million is other fund expenditures. General revenue expenditures decrease by $3.0 million, federal expenditures increase by $10.2 million, restricted receipt expenditures decrease by $18,885, and other fund expenditures increase by $10,305. The reduction to general revenues reflects in part the following statewide adjustments:- savings from lower than anticipated employee health benefit claims experience, $340,581; savings from six uncompensated personal leave days for all state employees, $552,983; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $386,953..

The Governor's revised FY 2008 budget includes a variety of reductions to enacted general revenues. The most significant general revenue declines in the FY 2008 revised budget are witnessed in two distinct aid programs; each is a recalculation of a formula-based entitlement based upon updated data. The state contribution for teachers' retirement increases $2.2 million 63

Education from the enacted level, reflecting a newly revised growth rate in covered teacher payroll. Further, revised local reimbursements under the Housing Aid program are recommended at $49.7 million, or $3.2 million less than enacted.

General revenue support for the Davies School and the School for the Deaf decreases from the enacted level by $523,849 and $236,799, respectively. Financing of the Administration of the Comprehensive Education Strategy (ACES) was reduced by $743,740, owing primarily to the withdrawal of personnel financing for vacant positions, tuition savings at the Perkins School for the Blind, and the Elimination of-the ýRhodde .Island Middle Level Educators (RIMLE) grant.

Additionally, the Governor reogndS aŽeduction of $1 40,t1.8 for aid to Charter Schools, reflecting mid-year adjustments for October2,enfrollmieits. ý'.'Also recommended is a zero-sum redirection of $379,189 in finan6ing for the C&ei.a F*afls SchooJ District from general revenues to the Permanent School Fund.

The Governor recommends $1.130 billion in expenditures from all funds .for the:,Department of Elementary and Secondary Education in FY 2009. Of this total, $930.5 million is from general revenue, $191.0 million is from federal funds, $7.7 million is restricted receipts, and $1.2 million is from other funds. This financing level represents an increase in general revenue expenditures of

$21.0 million, or 2.3 percent, from the enacted FY 2008 level, an increase of $12.6 million in federal expenditures, an increase of $564,479 in restricted expenditures, and a.decrease*.of $885 in other fund expenditures. Personnel costs include no cost .of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees.

Despite the distressed fiscal climate of the State, the Governor's steadfast commitment to Rhode Island's public education system is clearly exhibited in the FY 2009 Budget. Education aid distributed to local school districts totals $691.7 million in general revenue funds for FY 2009, including $45.1 million, for Central Falls, a fully state-supported school district. The Governor's recommendation for all; but six. districts. and Central Falls. includes education aid equivalent to each community's final FY 2008. aid allocation. Other salient portions of the Governor's recommendation for total education aid in FY 2009 include the following:

" Direct Charter School Aid totaling. $29.8 million, an increase of $2.8 million from the enacted FY 2008 level. As in previous years, the Governor's budget fully supports the approximately 3,000 students attending eleven Charter Schools.

" Support of the State Schools (Davies Careerand Technical School, Rhode Island School for the Deaf, and the Metropolitan Career and Technical School) totaling $33.5 million, an increase of $598,087 from the enacted FY 2008 level. Included within this recommendation are savings due to the privatization of janitorial services at both the Davies School and the School for the Deaf, and anticipated savings due to an increased student/teacher special education ratio at the Met School.

Financing for the Teachers' Retirement program 'of $94.8 million, an increase of $16.7 million from the enacted FY 2008 level. This program reimburses 40 percent of employer contributions made on behalf of teachers to the State Employees Retirement System, with the remaining 60 percent financed by the applicable school district. This increase reflects projected increases in the revised teacher payroll base of 4.25% and an increase in the employer actuarial contribution rate from 22.01 to 25.03 percent. For FY 2009, the local share of this rate equals 14.86 percent, while the state share is 10.17 64

Education percent.. Note that retired teacher health subsidy costs are reflected in the Department of Administration budget.

School Housing Aid in the amount of $57.0 million, an increase of $4.1 million from the enacted FY 2008 level. This recommendation includes savings; of $500,000 resulting from the planned refunding of school construction bonds in the City of Central Falls.

An appropriation of $45.1 million in support of the operations of the Central Falls School District, an increase of $1.3 million,'or 3.0 percent, from the enacted FY 2008 level. Legislation mandating the investigation of the City of Central Falls' ability to contribute to the local school budget Was 'included within :the FY 2008 Revised Appropriations Act.

The elimination of the grant to Hasbro Children's Hospital for support of its educational program; in the amount of $100;000.

The elimination of the School Breakfast reimbursement subsidy, in the amount of

$600,000: This program reimburses those school districts that participate, in .state breakfast programs on a per-breakfast basis.

7The phase-out of the state funded match for the Federal E-Rate program, .to be supplanted by an increase to the access line surcharge authorized under the Rhode Island Telecommunications Education Access Fund (RITEAF), RIGL 39-1-61.

Redesign and realignment of the School Accountability for Learning and Teaching (SALT) process, yielding savings of approximately $275,000.

In FY 2009, 'the Governor .recommends $20.1 million in general revenue for the Department's administration'program, the Administration of the Comp'rehensive Education Strategy (ACES), a reduction of $2.3 million from the enacted level. This includes a reduction of $662,1 60, reflecting funding at half of enacted levels for legislative grants. The remainder of the reduction, or $1.7 million,, reflects a host of savings initiatives undertaken pursuant to the deliberations on departmental priorities conducted by the Governor during the summer of 2007. For the ACES program, these initiatives include, but are not limited to:

" Elimination of a Deputy Commissioner position and a Public Information Officer through attrition and the elimination of two Staff Assistants.

" Reorganization of the Office of Human Resources and consolidation of the Offices of Instruction and Assessment & Accountability.

Redirection of personnel financing for school construction oversight to a restricted receipt account financed via a grant, from the Rhode Island Health and Educational Building Corporation (RIHEBC).

" Redesign of the SALT survey, the Information Works! publication, and SALT visits.

Suspension of the design and implementation of statewide system(s) of student transportation.

65

Education

Elimination of financing for the Rhode Island Skills Commission, which provides a system of technical assistance to schools administering the new Middle School and High School Regulations.

For the entire Department, which includes, the State Schools, the Governor recommends staffing authorizations totaling 332.0 FTE positions in FY 2008 and 330.0 FTE in FY 2009.

Public Higher Education The Governor recommends a revised FY 2008 budget of.$783.7 million, including $190.0 million in general revenue, $5.3 million in federal funds, $570.4 million in .other funds, $1.1 million in restricted receipts, and $16.9 million in Rhode Island Capital Plan funds. General revenues decrease $6,084,999 from the enacted level, reflecting current services adjustments, and the following statewide adjustments: savings from lower than, anticipated employee health benefits claims experience, $1,507,319; savings from six uncompensated personal leave days for all state employees, $2,018,705; and, statewide operating, contracts, and grants reductions. of 2.7 percent from revised levels, $1,158,020. The Governor recommends 4,334.8 FTE positions in FY 2008, the enacted authorization. The Governor's other proposals to address expenditure forecasts in excess of enacted appropriations are General Obligation debt service adjustments saving

$880,208 and Office of Higher Education acceptance of statewide enacted personnel savings of

$519,000.

For FY 2009, the Governor recommends $816.3 million for Public Higher Education, including

$180.0 million in general revenue, $3.6 million in federal funds, $620.8 million in other funds,

$641,526 in restricted receipts, and $11.3 million in Rhode Island Capital Plan funds. General revenues decrease $16.2 million from the FY 2008 enacted level. The Governor recommends a total of 4,273'.9 FTE positions, a reduction of 60.9 positions,. including 30.0 FTE positions at the University, and 15.0 FTE positions at both the College.and the Community. College., Reduced trend growth in. medical benefits saves $785,826 and funding for retiree health benefits in FY 2009 on an actuarial basis recognizing reduced benefits for, new retirees saves $137,267. Debt service adjustments adding $2.4 million .and personnel and operating adding $3.0 million. In order to address expenditure forecasts statewide in excess of revenue estimates the Governor proposes several reductions:

" Relocation of Office of Higher Education to State property saving $233,732

Increased vacancy savings of $8.6 million

" Operating and capital savings requested of $533,492 at target

" Staff efficiency savings of $10.2 million

" Legislative grant reductions of half awards saving $1.0 million The budget proposed by the Governor includes total tuition and fees revenues growth of $29.8 million, including $20.5 million at the University, $5.8 million at the College, and $3.5 million at the Community College. Pursuant to FY 2007 legislation, both the FY 2008 appropriation and FY 2009 recommended budgets include debt service appropriations within Public Higher Education that were formerly in the Department of Administration. In FY 2008, debt service is $15.1 66

Education million, a decrease of $880,208 from enacted levels and in FY 2009, $17.5 million is included, an increase of $2.4 million from all sources.

For FY 2009, the Governor recommends 4,273.9 FTE positions reflecting 60.9 FTE less than the FY 2008 enacted level.

The College Crusade of Rhode Island and other legislative grant awards in FY 2009 are recommended at fifty percent of enacted levels.

Rhode Island.Councilon the Arts The Governor's revised FY 2008 budget for the Rhode Island Council on the Arts is $4.6 million, including $2.7 million in 'general revenue, $671,643 in federal funds, and $1.2 million in restricted receipts and other funds. The recommendation includes a decrease of $78,650 to general revenue appropriations,, reflecting current services adjustments, and -the following statewide adjustments: savings :from lower than anticipated employee health benefit claims experience, $8,435;: savings from six uncompensated personalleave days for all state employees,

$13,727; and;, statewide operating,' contracts and grants reductions of 2.7 percent from revised levels, $56,488. One time restricted receipts funds are estimated at $200,000 from proceeds of a dedicated:arts lottery ticket.

For FY 2009, the Governor recommends $3.3 million, including $2.1 million in general revenue,

$741,355 of federal funds, and $439,453 in other funds. The general revenue decrease of

$682,797 from the enacted FY 2008 budget includes a reduction of $620,720 reflecting funding at halfof enacted levels for legislative grants, and reduction of $58,153 from enacted levels for the discretionary arts grants program, and-also reflectsadjustments required for- salary and employee benefits, requirements. Personnel costs. include no cost of living adjustment for state "employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits ýon an actuarial. basis -beginning in FY 2009, recognizing reduced health benefits for new retirees. A decrease in other funds from $3.0 million enacted in FY 2008. to $439,453 in FY 2009 reflects' exhaustion of one time .resources for state capital projects for arts installations at airport, public safety and educational projects. The Governor recommends the enacted level of 8.6 FTE positions in FY 2008 and FY 2009.

Rhode IslandAtomic Energy Commission The Governor's revised FY 2008 budget for the Rhode Island Atomic Energy Commission is

$1.6 million including $798,827 in general revenue, $537,277 in federal funds, and $289,759 in other funds. The recommendation includes a decrease of $21,042 to general revenue appropriations, .reflecting current services adjustments, and the following statewide adjustments:

savings from lower than anticipated employee health benefit claims experience, $5,295; savings from six uncompensated personal leave days for all state employees, $14,893; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $854. The governor recommends amending law to permit an overhead fee on research at the reactor for the University of Rhode Island radiation safety program, in addition to the current sponsored research, which reduces the general revenue requirement in FY 2008 by $62,475 and in FY 2009 by $66,155.

For FY 2009, the Governor recommends $1.53 million, including $824,470 in general revenue,

$407,277 in federal funds, and $301,153 in other funds. The increase of $4,601 in general revenue from FY 2008 enacted recognizes reduced trend growth in medical benefits saving 67

Education

$3,204, and funding for retiree health benefits in FY 2009 on an actuarial basis recognizing reduced benefits for new retirees saving $8,001, and increases of $15,806 for statewide benefits and assessments. The Governor recommends 8.6 FTE positions in FY 2008 and 8.6 FTE positions in FY 2009.

The Rhode Island Atomic Energy Commission (RIAEC) will continue to operate the state-of-the-art reactor at the Rhode Island Nuclear Science Center (RINSC) for the purposes of research, education and training, and environmental monitoring. Moreover, the. staff of the RINSC will continue to provide technical assistance to other state agencies, including the Rhode Island Department of Health and the University of Rhode Island. The Governor's budget will enable the Commission to explore additional commercia!. uses for the RINSC, including new technology involved in cancer research Rhode Island HigherEducationAssistanceAuthority The Governor recommends a revised FY 2008 budget of $28:9:million; including $10.2 million in general revenue, $12.4 million in federalgrants, and $6.4- million in, other funds. General revenue decrease $799,892 from the enacted level, reflecting current services adjustments, and the following statewide adjustments: savings from lower than anticipated-employee health benefits claims, experience, $6,075; savings from six uncompensated personal leave days:for' all state employees, $11,031; and, statewide operating, contracts,, and grants reductions of 2.7 percent from revised levels, $268,139. Personnel and operating reductions are $14,600. A reduction in state needs based scholarships of $500,000 is the majority-of the decrease.

For FY 2009, the Governor recommends $29.2 million, including $9.9 million in general revenue,

$12.6 million in federal funds, and $6.8 million in other funds. General revenues decrease

$1,105,775 from the FY 2008 enacted level., The Governor recommends 42.6 FTE positions in FY 2008 and in FY 2009, a reduction of 3.4 vacant positions and a savings in general revenue of

$88,567. Reduced trend growth in medical benefits saves $2,890, and funding for retiree health benefits in FY-2009 .on an actuarial basis- recognizing reduced benefits for new retirees saves

$5,560. Personnel current. services, and adjustments. including assessed fringe benefits-and capital and operations .are a net increase of $17,684. A reduction in state needs based scholarships of

$1,026,442 is the majority of the decrease in general:revenue support, with total scholarship aid remaining level, reflecting increased scholarship grants from the Tuition Savings Program.

Rhode Island HistoricalPreservationand Heritage Commission The Governor recommends total expenditures of $2.5 million for the revised FY 2008 budget for the Rhode Island Historical Preservation and Heritage Commission. This consists of $1.5 million in general revenue, $528,895 in federal funds and $491,993 in restricted receipt financing. The recommendation reflects a reduction of $90,480, or 5.7 percent in general revenue appropriations from the enacted level, -reflecting current service adjustments, additional turnover due to the vacant position of Historic Preservation Aide, and the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $16,539; savings from six uncompensated personal leave days for all state employees, $19,734; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $13,268. In the current fiscal year, there are no significant changes from enacted levels in non-general revenue sources of funds.

The Governor recommends total financing of $2.3 million for FY 2009, including $1.3 million in 68

Education general revenue appropriations, $479,640 in federal funds, and $494,649 in restricted receipts.

General revenue financing decreases by $228,967 or 14.5 percent from the FY 2008 enacted level, reflecting a decrease of $191,688 for legislative grants that were financed at half of enacted levels and the withdrawal of financing for the eliminated position of Historic Preservation Aide.

Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. Federal funds and restricted receipts decrease by $49,438 and $1,645, respectively, from enacted levels, due mainly to the realignment of allocable staff time to various funded projects and the exhaustion of the Blackstone Valley "Footsteps in History" grant. Staffing authorizations total 17.6 FTE in FY 2008 and 16.6 FTE in FY 2009, reflecting the elimination of the (vacated) position of Historic Preservation Aide.

Rhode IslandPublic TelecommunicationsAuthority The Governor recommends total expenditures of $2.1 million for the revised FY 2008 budget of the Public Telecommunications Authority. This consists of $734,035 in grant financing from the Corporation for Public Broadcasting (CPB) and general revenue financing of $1.3 million. This recommendation reflects a decrease of $47,458 in general revenue appropriations from the enacted level. This reduction is attributable a decrease of $7,725 in insurance expense as well as the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience, $16,842; savings from six uncompensated personal leave days for all state employees, $21,444; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $1,447. The expenditure ceiling authorized under the CPB grant decreases by

$65,261 from the enacted level, partly as a result of statewide adjustments to personnel for medical trend savings.and uncorpensated personal leave days.

The Governor recommends total finaiicing of $2.1 millioii forFY 2009, including $1.4 million in general revenue appropriations and $767,060 from the Corporation for Public Broadcasting (CPB) grant. Compared to FY 2008 enacted levels, this represents a $1,652 increase in general revenue financing reflecting minor adjustments for current service expenditures, and a decrease of $32,596 in CPB support. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Governor recommends staffing authorizations remain level at 20.0 FTE positions in both FY 2008 and FY 2009.

69

Public Safety Public Safety Summary The quality of life in Rhode Island is enhanced through the administration of a public safety system that provides law enforcement, adjudicates justice, protects life and property, and handles emergencies impacting Rhode Island's citizens. The seven agencies that expend 6.6 percent of the total FY 2009 State Budget from all sources of funds to provide public safety services to the state include: the Department of Corrections; the court system (Attorney General; the Judiciary; and the Office of the Public Defender); the homeland security system (Military Staff, including both the National Guard and the Emergency Management Agency); and public safety agencies (Fire Safety Code Board of Appeal and Review and the Department of Public Safety, comprising the State Police, Sheriffs & Capitol Police, E-91 1, State Fire Marshal; the Rhode Island Justice Commission; and Municipal Police Training Academy). The FTE recommendation for the FY 2008 revised budget is 3,291.7. The FTE recommendation for FY 2009 decreases to 3,215.4.

Reductions due to privatizations and other actions are offset by the transfer of Sheriffs and Capitol Police to the newly-formed Department of Public Safety.

Pursuant to action of the Legislature in Article 3 of the FY 2008 Budget Act, the Governor's recommended FY 2009 budget includes the combination of the Rhode Island State Police, E-911 Emergency, Fire Marshal, Security Services (former program of the Department of Administration), and the Municipal Police Training Academy, in a new Department of Public Safety. The FY 2008 supplemental appropriations act reflects the constituent agencies as independent entities, consistent with enacted appropriations. The FY 2009 appropriations act recognizes the combination of the agencies as programs within the new departments. However, to achieve orderly and coherent comparisons of the history, enacted appropriations, and two recommendation years, these documents display the agencies as a combined entity in FY 2008 as well as FY 2009.

The largest share of funding within the Public Safety function is for the Department of Corrections, representing 40.8 percent of the total. Because the Adult Correctional Institutions, which include eight secure facilities, operate twenty-four hours per day, the department must provide continuous supervision of an annual average inmate population of 3,925. Additionally, the Community Corrections subprogram supervises 32,000 community-based offenders per year.

The second largest share is for the courts system, at 28.5 percent of the total. This includes 21.0 percent of expenditures for the Judiciary, supporting six courts statewide, and 7.5 percent for the other agencies, Attorney General and Office of Public Defender. The next largest share is for the Department of Public Safety, at 24.1 percent. This agency was formed pursuant to Article 3 of the FY 2008 Budget Act, the combining the Rhode Island State Police, E-911 Emergency, State Fire Marshall, Security Services (formerly a program of the Department of Administration), the Rhode Island Justice Commission, and the Municipal Police Training Academy. The Military Staff comprises 6.5 percent of Public Safety expenditures.

The Governor recommends a FY 2008 revised budget of $455.3 million from all funds, an increase of $6.9 million. Revised expenditures of $378.5 million are recommended for general revenue, $8.0 million, or 2.1 percent, less than enacted levels. Restricted receipt expenditures of

$10.4 million are $166,667 less than enacted. This is offset by a $13.9 million increase in federal funds and a $1.1 million increase in other funds, primarily Rhode Island Capital Plan funds.

Categorically, this includes a $14.6 million decrease in personnel costs for salaries and benefits, and contract services. The decrease reflects vacancy reduction initiatives undertaken as part of the Governor's Personnel Reform Initiative. Expenditure for grants and benefits increases by $16.8 million, primarily in the Military Staff for additional homeland security, disaster assistance and 71

Public Safety other federal grants in Emergency Management. Operating expenditures increase by $3.7 million, and capital purchases and equipment expenditures increase by $1.0 million.

In.FY 2009, the Governor recommends an all-funds budget of $451.3 million for public safety programs. Of this amount, $377.5 million is from general revenue; $35.9 million is fromfederal funds, $10.4 million is from restricted receipts, and $27.4 million is from other funds. The FY 2009 general revenue budget increases by $9.0 million from the FY 2008 enacted level. All funds spending increases only by $2.8 million as:compared: to the enacted budget. There is an $18.0 million all-funds decrease in personnel expenditures, a $3.6 million increase in operating expenditures, a $9.6 million increase for grants -and benefits' and 'a $7.7 million increase for capital expenditures. Personnel decreases are due to privatization actions in the Department of Corrections, FTE reductions in Corrections ,and other agencies, and proposed employee contract changes in Corrections to reduceovertime."sipenfiding:- The Department of Corrections' budget includes an earned good time initiativeprogram to educe inmate&'population that will lead to substantial savings in superv isory. ,overfi'ine 'and-p'er. 'capitia operating costs. Operating increases reflect in part move to a new,'.state, plice.;headquiarters and, the move to newly completed courthouses. Grant increases of$9.6.million reflect" new State"Police federal grants, as well as continue Emergency Management.homeland'security grants.

Funding for the Public Safety function is derived mainly from state sources. 83.6 percent is general revenue and 6.1 percent is other funds (primarily Rhode Island Capital Plan funds for construction; repair andrehabilitation projects for Corrections, Military Staff, Judiciary, aind State Police facilities)._ Federal funds comprise 8.0 percent of the total (Emergency 'Management homeland security expenditures and National Guard Bureau funding; adult education, discharge and reentry services, incarceration of undocumented aliens at Corrections; Child Support Enforcement in the Judiciary program). Restricted receipts account for the remaining 2.3 percent.

72

Public Safety By category of expenditures, state operations, including personnel (75.6.percent, $341.1 million) and other operating costs (9.2 percent, $41.5 million), total $382.6 million, or 84.8 percent of total expenditures, and are financed primarily from general revenues. Assistance, grants and benefits are $41.6. million or 9.2 percent, and are funded from general revenue and federal funds' Capital improvement projects, $27.1 million for 6.0 percent, include Rhode Island Capital Plan and federal funds.

How-it is Spent

' Debt Service E3 Operating u- Assistance, Grants. 0.0% Transfers and Benefits.. .. ,, ,.:*

0.0%

Aid To Local Units Of Government 0.0%/0 "

Operating Supplies and Expenses

9.2%,

SPersonnel .

m Capital Purchases 75.6%

and Equiprent 6.0%

m Personnel c Operating Supplies and.Expenses

a. Aid To Local Units Of Government o Assistance, Grants and Benefits m Capital Purchases and Equipment Ei Debt Service 12 Operating Transiers Attorn-y General The Governor recommends revised FY 2008 appropriations totaling $23.3 million for the Attorney General, including $20.6 million from general revenues, $1.4 million from federal funds, $940,574 from restricted receipts, and.S404,880 from Rhode Island Capital Plan funds.

This is a general revenue decrease of $708,876, or 3.3 percent, from total FY 2008 enacted levels.

The majority of this decrease is attributable to new legislation being that would require the insurance companies to pay expert witness fees in advance rather than reimbursing the state at a later date. This reduction also includes the following statewide adjustments".: savings from lower than anticipated employee health benefit claims experience, $217,551.; sdvings from six uncompensated personal leave days for all state employees, $387,865; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $52,293. These reductions were offset by an addition of $607,144 for salary and benefits in the Criminal program, which- is related to the anticipated turnover rate in the enacted budget not being achieved.

For FY 2009, the Governor recommends total expenditures of $23.7 million, which includes

$21.2 million from general revenues, $1.3 million from federal funds, $980,866 from restricted receipts, and $275,000 from Rhode Island Capital Plan funds. This includes a general revenue decrease of $123,266, or 0.6 percent, from the FY 2008 enacted budget. This reduction includes a decrease in financing for insurance assessment costs, which is offset by increases in personnel expenses associated with unachieved turnover from the FY 2008 enacted level. Adjustments are included for salary and employee benefits requirements. Personnel costs consist of no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee 73

Public Safety medical benefit costs and also include funding for retiree' health benefits on an actuarial 'basis beginning in FY.2009, recognizing reduced health benefits for new retirees.

The Governor recommends 234.8 FTE positions in FY 2008 and 231.1 FTE positions in FY 2009. This; program. reduction of 3.7 FTE in FY. 2009 consists of 1.7 FTE that had been previously financed through federalfunds and 2.0 FTE vacant positions.

Departmentof Corrections The Governor's revised FY 2008 budget for the Department of Corriections' is $197.4 million.

This includes $185.0 million in geneiral:revenue,'$3.6 million in federal funds, and $8.8 million in other funds. The FY 2008 revised.general revenue budget ,is $2.95 million less than the enacted level of $187.95 million. In addition to current service adjustments, including additional turnover to reflect existing vacancies, andadditional general revenue for state/federal match requirements, inmate payroll, and physician's contracts, the Governor recommends the following statewide adjustments: savings,,from lower' 4than.- anticipated employee health benefit claims experience,

$2,111,836; savings from 'six uncompensated personal leave days for 'all state employees,

$2,264,690;. and statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $787,205, a total reduction of $5.2 million. As for the offsetting $2.2 million increase, the Governor recommends'the following:

'Correctional Officer Training: The FY 2008 revised" budget includes the following adjustments: .1) A delay 'of the next scheduled -recruitment class, for a reduction of

$679,012 in stipends,. overtime,' salary & benefits, and operating, 2) A $186,000 reduction in the stipend payment of the current recruitment class, reflecting a reduced class size and a per week rate reduction, and 3) Additional funds to begin recruitment of the next correctional officer class.

Electronic. Medical Records System: The Governor recommends $450,000. to create a complete electronic medical record for each inmate" in order to increase the efficiency and the efficacy of treatment in the facing of expanding (and aging) inmate population with chronic medical conditions. These funds were originally appropriated in FY 2007.

Earned'Good'Time Initiative Implementation: In order to implement legislation introduced by the Governor that would increase good time rates for offenders sentenced to less than ten years, or to offenders who participate in rehabilitation programs, the budget includes funds for computer reprogramming, operating expenses, and 7.0 probation and parole FTE's. The total increase is $439,953.

Inmate Population Increase: To fund expenditures incurred by the recent increase in population projections from 3,289 to an estimated 3,925, an increase of 636 inmates, the Governor recommends $4.8 million in funding for institutional overtime, reopened modules, increased in-patient hospitalizations with round the clock one-on-one custody requirements, and per diem operating expenses (linens, inmate clothing, program supplies, janitorial supplies, food, pharmaceutical and medical supplies, and medical contract services).

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Public Safety

Pastore Power Outage: The Governor recommends an additional $450,905 for generator rentals, fuel, equipment repair, contract services, and, overtime expenditures resulting from the loss of power at the Pastore Complex in July 2007.

Retroactive Payments: The Governor recommends an additional $340,765 in the base wage estimate of unnegotiated COLA/Medical Co-Pay adjustments for anticipated but unsettled RIBCO contracts. These retroactive payments include $1.5 million for FY 2005, $5.2 million for FY 2006 and $9.5 million for FY 2007 (the latter increases from $9.2 million in the enacted budget).

Reintegration Center Delay: The Governor recommnends postponement of the opening of the soon-to-be-completed facility from"July 2008 to July 2009, for a reduction of $359,508 in personnel costs for. four positions. The Center is .a renovated building at the Pastore Center that will house up to 175 high-risk offenders who are within six months of release and who will receive intense reintegration assistance: and programming.

For the, FY 2009 budget, the Governor recommends $184.1 million;in: total expenditures for the Department of Corrections. This consists of $17.8.2 million in, general. revenue, $2.6 million in federal funds, and $3.3 million- in other funds. The FY 2009 recommended general revenue budget decreases by 5.2 percent, or $9.8 million, from the FY 2008 enacted level. The budget includes turnover adjustments, filling of critical vacancies (including correctional officers from the newly graduate training class), revised contract provisions for physicians, estimated funding for FY 2007 COLA/co-pay base adjustments, and statewide. benefit changes. The latter also includes a total of $21.1 million in adjustments required fora 9.9 percenttrend growth in employee medical benefit costs, as well as funding for retiiee health benefits on. an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. For the remaining $7.7 million decrease, the Governor recommends the-following:

Inmate Population: The FY 2009 budget is built on a base inmate population projection of 4,152, as adjusted in FY 2008 by,.93 inmates to 4,059. When adjusted for the reduction of 211 inmates resulting from the earned good time initiative discussed below, the revised population estimate is 3,848..

Correctional Officer Training: The Governor recommends funds to conduct two classes in FY 2009, with graduation in December 2008 and May 2009 of 64 new: correctional officers each.

" Information Technology Contract Services: The Governor recommends a reduction of

$668,360 in contract services, reflecting the transfer of programming functions to state employees in the Department of Administration.

" Earned Good Time Initiative: After consultations with interested parties in all three branches of government-executive, legislative, and judicial-the Governor has included in the FY 2009 budget a net reduction of $1.0 million, reflecting. an Earned Good Time initiative that would reduce sentenced days of offenders who maintain good behavior and/or complete rehabilitation programs. Offsetting per capita operating and staff reductions of $2.2 million would be and additional $996,638 in Community Corrections for 7.0 new probation officers and staff to ensure proper supervision of released inmates.

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Public Safety

Employee Contract Changes: The FY 2009 budget includes reductions totaling $3.6 million that would result from proposals submitted by the State to a three-person arbitration panel, for which a decision is expected in early 2008. The proposed changes to the current RIBCO contract would be as follows (all. are savings in overtime): modified payment on sick time, elimination of double time overtime payments: elimination of 1-9 recreation shift at Medium Moran and the Intake Service Center, and allowance of inter-facility transfers.

Litter Crews: The Governor's FY 2009 budget includes the transfer of financing for litter crews to the Department of Transportation. Currently under a memorandum of understanding (MOU), the Department provides five work crews for litter control. The Department proposes using DOT funds for these purposes. General revenue savings of

$486,000 would be achieved in DOC overtime expenditures.

0 Dental Services Privatization: .The Governor recommends the issuance of a statewide master contract for dental services. Savings from the reduction of 4.0 state employees of $542,498 would be offset by an estimated, contract addition of $300,000 for such services, as well as

$100,249 for severance costs (unemployment compensation and medical benefits), for a net savings of $142,249 in FY 2009.

Inmate Counseling/Case Management Privatization: The Governor's FY 2009 budget reflects the privatization of the inmate counseling and case management function. Currently this unit is responsible for the initial classification of inmates (gathering information to assess the risk factors involved in facility assignment), counseling inmates during periodic reclassifications and discipline board actions, counseling concerning good time and other information, and providing evaluations to the Parole Board. The focus of departmental efforts would shift to initial re-entry services by stressing case management, and programming suited to individual inmates, to be performed by several community-based agencies with specialized expertise in providing services, as well as providing.a link in the community once the inmate is. released. Savings..resulting. from a staff reduction of 33.0 FTE's, $2,708,081, would be offset by the provision of contract services for counseling and case management services of $2,256,734, for, a net savings of $451,247. One-time severance costs (unemployment compensation and medical benefits) of $551,370 are also included.

Central Distribution Center Privatization: The Governor proposes to privatize the Central Distribution Center (CDC). Currently the CDC is responsible -for purchasing food staples, janitorial items, and other items for warehousing, and delivery to state agencies. Because of increasing salary and benefit costs, the surcharge charged to other state agencies has increased. Sales have also decreased as agencies seek more economical means of obtaining supplies. The proposal involves a reduction of 14.0 FTEs in the Internal Service Fund program, as well as a reduction in merchandise purchasing and warehousing expenditures, a total of $6,266,350, including severance costs. The FY 2009 budget includes a $409,258 general revenue operating savings by reducing the surcharge on food items from 25 percent to 10 percent, a 15 percent savings.

FTE Reduction: The FY 2009 budget includes the elimination of 6.0. filled FTEs, 2.0 each in Central Management, Institutional Corrections, and Community Corrections. Total savings are $532,950.

Federal funds of $2.6 million in FY 2009 will finance core personnel through the State Criminal Alien Assistance program ($1.2 million), as well as adult inmate education, AIDS counseling and 76

Public Safety reentry services. In order to provide necessary repairs and renovations to'the Department's aging facilities, the FY 2009 budget includes $3.3 million in Rhode Island Capital Plan funds. Project funding is recommended in FY 2009, including $2.5 million for various asset; protection projects and $100,000 to study various aspects of a new Women's Correctional Facility.

The Governor recommends 1,515.0 FTE positions in FY 2008, an increase of 7.0 FTE's in probation & parole from the enacted.FY 2008 level of 1,508.0. The Governor recommends 1,464.0 in FY 2009, a reduction of:5*1..0 due to privatization reductions.

Judiciary The Governor's revised FY 2008 budget for the Judiciary is $95.6 million, including $82.8 million in general revenue, $2.6 million in federal funds, $8.7 million in, restricted receipts and

$1.5 million in other funds. The recommendation includes., a reappropriation of $1.1 million in carry . forward balances from *FY 2007, which. is programmed for building repairs and maintenance. The recommendation- is a decrease. of. $2.2 million- to general revenue appropriations, including the following statewide adjustments:. savings from lower than anticipated employee health benefit claims experience, $793,713; savings from six uncompensated personal leave days for all state. employees, $1.3 million; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels, '$311,405. The remaining $2 14,677 increase is comprised .of the following:

0 $319,950 more than enacted for pensions of retired judges based on the current retiree pension payroll;

$191,528 less for judicial technology. projects due to the availability of Certificates of Participation funding; . ...

$146,013 more for department-wide telephone andcommunications upgrades;

$35,239 less for property and casualty insurance expenses based on revised estiniates from the state's risk manager;-

$1.2 million more for facilities and operations expenses at the courthouses of which $1.1 million is from the reappropriation 'Mentionedabove;'

$484,248 less for operating expenses and capital equipment in Supreme Court, which includes reductions of $87,163 for dues and subscriptions, $17,000 for postage, $144,227 for office supplies, $51,520 for property rentals, and $52,789 for lease-paymehts;

$178,050 less forjury operations in Superior Court, primarily for salaries and benefits;

$150,200 less for personnel in Superior Court due to turnover sayings;

$322,461 more for personnel in Family Court'due to a change in budgeting for Child Support Enforcement in response to federal audit findings;

$502,218 less for personnel in District Court due to turnover savings; and

$89,973 less for contract services and operating expenses in the Traffic Tribunal.

For FY 2009, the Governor recommends $95.0 million, including $82.6 million in general revenue, $1.9 million in federal funds, $8.7 million for restricted receipts, and $1.7 million from other funds. The general revenue decrease of $2.3 million from the FY 2.008 enacted budget includes a reduction of $353,250 reflecting funding at half of enacted levels for legislative grants, and also reflects adjustments required for salary and employee benefits requirements. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on 77

Public Safety an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees.

Other major general revenue changes include:

0 $47,746 more for judicial pensions,

$265,790 more for facilities and operations expense at the courthouses;

$72,886 less for operating expenses in Supreme Court; e $280,199 less for the Adult Drug Court, which is recommended for elimination in FY 2009 due to a loss of federal financing;-

0 $178,050 less for jury operations in Superior Court, primarily for salaries and benefits; and 0 $577,108 less for other salaries and benefits due to the inclusion of turnover' savings of 4.75 percent in all Courts.

The Governor recommends 732.3 FTE pboitions in FY 2008 and 729.3 positions in FY 2009.

Military Staff The Governor's revised FY 2008 budget for the Military Staff is $36.5 million, including $2.5 million, general, revenues, $20.96 million in federal funds, $2.8 million in other funds, and

$301,504 of restricted receipts. The FY 2008 revised general revenue budget is $65,869 less than the enacted budget. There are increases of $10.4 million in federal funds and a decrease of

$106,000 in restricted receipts. Rhode Island Capital Plan funds increase by $1.4 million. The recommendation includes the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience $21,40.8; savings from six uncompensated personal leave days for all state employees, $28,840; and statewide operating, contracts and grants reductions of 2.7 percent from revised. levels, $15,621. In addition to salary and benefit adjustments to reflect current services, the Governor recommends the following:

$52,051 in salary costs related to the state activation of National Guard personnel for the Tall Ships Festival.

Position reductions of 3.0 vacancies funded by both general revenue and federal funds in the National Guard, and 3.0 federal/restricted funded positions in the Emergency Management Agency.

" Additional federal grant funding for Emergency Management programs, including $1.4 million in disaster assistance grants to municipalities, $1.7 million in new urban areas security grants, and $4.1 million in new state homeland security grants. The Governor recommends in FY 2008 total spending of $14.4 million for various homeland security-related activities: state and municipal first responder equipment; equipment for local emergency response teams; interoperable communications; the Urban Search and Rescue program; municipal planning, exercises, and training; state homeland security equipment, training, exercise and planning activities; law enforcement terrorism prevention; and Citizens Corps and volunteer training programs.

$2.5 million in federal funds to purchase equipment to, establish an interoperable communication system between state and local first responders.

For FY 2009 budget, the Governor recommends $29.5 million for Military Staff programs, including $3.7 million from general revenue, $24.0 million from federal funds, $315,321 from 78

Public Safety restricted receipts, and $1.4 million from R.I. Capital Plan funds. Compared to the enacted FY 2008 budget, general revenue expenditures increase by $1;2 million, federal funds increase by

$3.4 million, Rhode Island Capital Plan funds decrease by $21,000, and restricted funds decrease by $92,000.

The FY 2009 recommended budget reflects adjustments required for salary and employee benefit costs. Personnel costs include no cost of living adjustment for state. employees, but. do include a 9.9 percent trend growth in employee medical benefit costs, as Well as funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. In addition to various adjustments for payroll projections and operating reductions, the Governor recommends the following:

" In addition to the 6.0 vacancy reductions in FY 2008, position reductions of 3.0 filled FTE's in the National Guard program funded by both general revenue and federal funds.

" Position reduction 1.0 FTE funded by. general revenue and federal funds reflecting the centralization of the Accounts Payable function in the Department of Administration.

Continued federal funding in the Emergency Management program for. interoperable communications ($2.5 million), and homeland security activities ($8.4 million).

I $1.3 million in general revenue funding for the operation of the Rhode Island Statewide Communications Network (RISCON), .a radio communications system designed to provide interoperable communications between.cities and towns and the state. Funds for, hardware maintenance and positions to operate the system have been transferred from the.

Department of Public Safety-State Police to the Emergency Management program to work with federal Department of Homeland, Security funding for interoperable communications, for which $2.5 million is budgeted in both FY 2008 and FY 2009.

The Governor recommends 104.0 FTE positions in FY 2008 (a reductionof 6.0 from the enacted ceiling of 110.0 FTE) and 103.0 FTE positions in FY 2009, a reduction of 10.0 from the enacted ceiling offset by the addition of 3.0 FTE's in Emergency Management to operate the RISCON system.

DepartmentofPublic Safety Pursuant to action of the Legislature in Article 3 of the FY 2008 Budget Act, the Governor's recommended FY 2009 budget includes the combination of the Rhode Island State Police, E-911 Emergency, Fire Marshal, Security Services (former program of the Department of Administration), and the Municipal Police Training Academy, in a new Department of Public Safety.

The FY 2008 supplemental appropriations act reflects the constituent agencies as independent entities, consistent with enacted appropriations. The FY 2009 appropriations act recognizes the combination of the agencies as programs within the new departments. However, to achieve orderly and coherent comparisons of the history, enacted appropriations, and two recommendation years, these documents display the agencies as a combined entity in FY 2008 as well as FY 2009.

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Public Safety In FY 2009 the responsibilities of the Justice Commission will be transferred to the Central Management program in the Department of Public Safety. 4.0 FTE's will be added to this program to handle these responsibilities.

The Governor recommends $109.6 million in expenditures for the'Department of Public Safety in FY 2009, which includes $82.0 million in general revenues, $5.8 million in federal funds, $21.3 million in other funds, and $434,000 of restricted receipts'. This- recommendation represents an increase of $2.0 million, or 2.5 percent, in general revenue expenditures from the FY 2008 enacted level. Other funds expenditures increase by' $12.6 million, or 143.6 percent, a significant part of this increase is the result of moving a portion of the financing for the State Police Headquarters from FY 2008 to FY 2009. Restricted receipts decrease by $1.2 million, or 73.5 percent, from the enacted level and federal funds increased by-$710,721, or 5i6:percent. The FY 2008 enacted budget reference baseline is the comribination of the FY 2008 enacted budget of the agencies described above.

E-911 Emergency Telephone System. The Govemor recommends revised FY 2008 appropIriations totaling $6.3 million for the E-911 Emergency Telephone System, including $4.9 million' from general revenues, $500,000 from federal funds, and $874,715 from restricted receipts. The general revenue appropriation in the revised FY 2008 budget is $146,258 higher than the enacted budget of $4.7 million, reflecting agency specific changes that net to an increase of $303,926 and statewide reductions of $157,668. The agency specific changes include increasesof $269,798 for software maintenance agreements, $122,687 for telephone service provider charges; $62,881 for geographic information system (GIS) database development "rear load" charge; and $5,000 for emergency equipment repairs. These increases are partially offset by decreases of: $153,640 for payroll turnover savings and $2,800 for operating. The statewide adjustments consist of: savings from lower than anticipated employee health benefit claims experience, $59,725; savings from six uncompensated personal leave days for all state employees, $68,617; and, statewide operating, contracts and grants reduction of 2.7 percent from revised levels, $29,326.

For FY 2008, the Governor recommends an authorized FTE level 6f 53.5 positions. Beginning in FY 2009, the agency is a program within the Department of Public Safety. All appropriations for E-911 Emergency Telephone System are therefore included in the Department of Public Safety.

State Fire Marshal. The Governor recommends revised FY 2008 funding for the State Fire Marshal of $2.7 million, including $2.4 million in general revenue and $363,477 in federal funds.

The revised FY 2008 -budget reflects a decrease of $316,587 from enacted general revenue appropriations and an increase of $135,505 in federal funding. Major adjustments to general revenue appropriations inFY 2008 include a decrease of $229,217 for vacant position turnover savings and a decrease of $52,086 for operating expenses, many of which were redirected to the Department of Administration following the Marshal's relocation to the Cranston Street Armory.

Also reflected in the Governor's revised FY 2008 recommendation are the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience,

$21,971; savings from six uncompensated personal leave days for all state employees, $39,994; and, statewide operating, contracts and grants, reductions of 2.7 percent from revised levels,

$7,990. In addition, financing of $23,600 for completion of a quarry blasting study begun in FY 2007 is enfolded into the FY 2008 revised recommendation for the State Fire Marshal. Staffing authorizations are unchanged at 35.0 FTE in FY 2008. Beginning'in FY 2009, the agency is a program within the Department of Public Safety. All appropriations for the State Fire Marshal are therefore included in the Department of Public Safety.

80

Public Safety Security Services. Security. Services, comprising the Capitol Police and Sheriffs forces, is appropriated within the Department of Public Safety in FY. 2008 enacted and supplemental appropriations. The Governor recommends a revised FY 2008 budget of $19.7 million, all general revenues. The general revenue recommendation of $19.7 million is $264,678, or 1.3 percent, less than the FY 2008 enacted level of $2.0 million... This includes an additional .$394,507 for unachieved turnover savings and $651,551 for statewide reductions. The statewide reductions include $362,314 for uncompensated leave days, $266,692 for savings in employee medical benefits, and $22,545 for statewide operating, contracts and grants reductions of 2.7 percent. There was also a reduction in contract services of.$7,634.

The Governor recommends total expenditures of $19.2 .million general revenues in FY 2009,

$700,238, or 3.5 percent, less than the FY 2008 enacted: budget, attributable to statewide personnel adjustments and a program reduction of 11 positions.

The Governor recommends 234.0 FTE positions in FY 2008. With the program reduction of 11 FTE the Governor recommends 223.0 FTE positions in FY 2009. In FY 2009 the Security Services program, will be a program within the Department of Public Safety.

Municipal.PoliceTrainingAcademy. The Governor recommends a revised FY 2008 budget of

$494,214, including $427,814 of general revenue and $66,400 of federal funds.. The general revenue recommendation is $1,438 less than the FY 200,8 enacted level. This includes an additional

$15,632 for unachieved turnover savings and $13,456 for statewide reductions. The statewide reductions include $7,689 for uncompensated leave days, $4,706 for savings in employee medical benefits, and $1,061 for statewide operating, contracts and grants reductions of 2.7 percent. There.

was also a reduction in contract services of $3,614. Federal funds are $66,400, or 32.8 percent, higher than the enacted amount of $50,000, adjusting for carry~over balances and annual awards through the Rhode Island Justice Commission for Hate Crimes Training and the Byrne Grant for In-Service Training.

The Governor recommends total expenditures of $497,195 for the Academy in FY 2009, consisting of $431,195 in general revenue andS66,000 in federal funds, to maintain the recruit and in-service training programs for approximately ..1,2.00 officers each year. The FY 2009 general revenue recommendation is $1,943 percent greater than the FY 2008 enacted budget, attributable to statewide personnel adjustments offset by adjustments for current service 'training and operating requirements. In FY 2009 the federal funds allotment, contributes financing for in-service, hate crime and homeland security courses, increases 33.0 percent or $16,000 from the FY 2008 enacted budget. The Governor recommends 4.0 FTE positions in both FY 200 8 and FY 2009. In FY 2009 the Municipal Police Training Academy will be a program within the Department of Public Safety.

State Police: The Governor recommends $58.8 million in expenditures for the State Police in the FY 2008 revised budget, including $50.7 million in general revenues, $2.4 million in federal funds, $5.3 million in other funds, and $461,447 in restricted receipts.. This recommendation represents a decrease of $1.4 million in general revenue expenditures from FY 2008 enacted level. This includes a reduction of $483,919 for turnover- savings and $861,481 for statewide reductions. The statewide reductions include $455,697 for uncompensated leave days, $334,375 for savings in employee medical benefits, and $71,049 for statewide operating, contracts and grants reductions of 2.7 percent. There was also a reduction in operating of $24,064. Other funds expenditures decrease by $2.9 million, and reflects shifting a portion of the funding from FY 2008 to FY 2009. Restricted receipts increase by $149,347 or 47.9 % from the enacted level and federal funds increased by $1.3 million or 116.8%, which is mostly from two additional grants 81

Public Safety (2007 Intelligence/Information Sharing $578,500, and: USAI Cyber Terrorism Task Force

$234,500).

The Governor- recommends $76.6 million in expenditures from all funds for the State Police for FY 2009, including $5.4.2 million in general revenues, $1.4 million in federal funds, $20.7 million in other funds, and $301,000 of restricted receipts. This represents an increase in all funds of

$14.9 million from the FY 2008 enacted budget. This significant increase -is primarily in other funds and is the result of starting the new police headquarters: The 'increase includes; increased general revenue expenditures of $2.1 million, increased .federal expenditures of $309,783, and decreased restricted receipts of $11,000. There was an increase in other funds of $12.5 million, to finance RICAP projects in FY12009. .... . -..

The Governor recommends 268.0. FTE positions in FY 2008, and 266.0 FTE positions in FY 2009. Two new Intelligence Analysts were added in FY 2008, and'two positions *were part of a program reduction in FY 2009. In FYo 2009 the. Rhode Island State Police will be part of the Department of Public Safety. .

Rhode Island Justice Commission. The Governor recommends total revised expenditures of $4.7 million for FY 2008, including $231,853 in general revenue and $4.5 million in federal funds. This revised funding level is $399,209 less than the FY 2008 authorized budget and consists of $71,038 more general revenue, $358,171 more federal funds, and $30,000 less restricted receipts. The increase in general revenue from FY 2008 enacted appropriations level includes general. revenue offset for reduced federal administrative and planning funds of $79,271 and statewide'cost savings of $8,232, which consist of six uncompensated personal leave days equal to $4,714 and lower than anticipated employee health benefit claim experience of $3,518. The reduction in restricted receipts expenditures, compared to FY 2008 enacted levels, reflects a shift tothe newly creatediDepartment.

of Public Safety's Central Management program. Major changes to FY 2008 enacted federal funds expenditures include the following:

$169,150 in net balance forwarded funding, from FY 2007 for juvenile justice and

delinquency activities and programs

$56,892 for balance forwarded funding from FY 2007, for activities and programs related to crime victims

$76,014' for balance forwarded funding from FY 2007 related to local law enforcement, including narcotics control, interdiction and prosecution

$42,568 for balance forwarded funding from FY 2007 for program and activities related to crimes against women The Governor's revised FY 2008 FTE recommendation is the FY 2008 enacted ceiling of 7.6 full time equivalent positions.

For FY 2009, the Governor recommends the integration, consolidation and merger of the agency into the newly proposed Department of Public Safety in compliance with Article 3 of the FY 2008 Budget Act. For the purpose of maintaining comparability across programs and at the agency level, historical expenditures have been reflected within the Central Management program of the Department of Public Safety.

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Public Safety FireSafety Code Board of Appeal andReview For FY 2008 revised, the Governor recommends revised general revenue appropriations of

$289,830, a decrease of $13,605 from thetFY 2008 enacted level. The change reflects reductions for personnel and operating funding commensurate with current service levels. Also included are

.savings related to the following statewide adjustments: savings from lower than 'anticipated employee health benefit claimsý.experience, $3,620; savings from six uncompensated personal leave days for all state., employees,: $5,561;' and, :statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $352.

The Governor recommends general revenues of $306,552 for FY 2009, an increase of 1.1 percent from the FY 2008 enacted budget. This general revenue increase of $3,117 finances the Board at its current service level, while recognizing savings,.in several,. operating -categories based on anticipated expenditure patterns. Personnel costs include .no cost of living adjustment for state employees, but do include a 9.9 percent trend growthin employee'medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. Staffing authorizations remain unchanged at 3.0 FTE positions in FY 2008 and FY 2009.

Office of the Public Defender The Governor' revised FY 2008 budget for the Office of the Public Defender is $9.4 million, including $9.0 million in general revenue and $358,916 in federal funds. The general revenue recommendation is $308,995 less than the FY 2008 enacted level. The recommendation includes the following statewide adjustments: savings from lower than anticipated'employee health benefit claims experience $103,725; savings from-six uncompensated personal leave days for all state employees, $163,580; ,and statewide operating, contracts and grants reductions of 2:7 percent from revised levels, $11,029. The budget reduces payroll by $35,147 due to a combination of current service adjustments for benefits and an additional vacancy allowance. -The budget includes current .service adjustments for operating expenditures, increasing the budget for office-related expenses and decrease property-related costs. The budget also includes a net increase in contract services for one time information technology services.

The Governor recommends total expenditures of $9.7 million in FY 2009, including $9.5 million in general revenue and $248,470 in federal funds. The .FY 2009 general revenue recommendation is

$143,308 greater than the FY 2008 enacted budget, while federal 'funds decrease by $173,363. The budget reflects adjustments to current services required for salary and. -employee benefits requirements and salaries, as well as a reduction in the value of expected vacancies. Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs, as well as funding for retiree health benefits on 'an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. The Federal appropriations also reflect the loss of Byrne funds for the Adult Drug Court. The FY 2008 and FY 2009 recommendations are for.93.5 FTE, the same as the FY 2008 enacted level.

83

Natural Resources Natural Resources Summary The Natural Resources function includes the Department of Environmental Management, the State Water Resources Board and the Coastal Resources Management Council. In FY 2009, the Governor recommends the merger of these three separate entities, resulting in one agency comprising the entire function. The Governor recommends total full-time equivalent positions of 518.0 FTE in FY 2008 and 501.0 in FY 2009 for the natural resource function. Up to 350 temporary positions may also be utilized for seasonal support at state parks and beaches. Certain debt service for general obligation bonds issued to finance capital projects of the Narragansett Bay Commission and the Rhode Island Clean Water Finance Agency are appropriated in the Department of Administration, though the agencies themselves are not part of the state budget.

The Department of Environmental Management manages and protects Rhode Island's public and common natural assets, including land, air and water resources. It manages state-owned lands, including state parks and beaches, forests, port facilities, and fish and wildlife management areas.

The department administers a capital management program financed by general obligation bonds, Rhode Island Capital Plan funds, federal- funds, restricted receipts and third-party sources (for land acquisition). Capital program activities include: acquisition and development of recreational, open space and agricultural lands; municipal and non-profit grant programs for land acquisition and development; improvements to state-owned ports and recreation facilities; Superfund federal mandates; construction of new state environmental facilities; municipal wastewater facility construction grant programs; and, grants to non-governmental entities for specified water quality improvement projects. The department also monitors the use and quality of state groundwater; regulates discharges and uses of surface fresh and salt water; enforces game, fishing and boating regulations; coordinates a statewide forest fire protection plan; regulates air quality; and monitors the disposal of solid and hazardous wastes.

The Coastal Resource Management Council seeks to preserve, protect and restore the coastal resources of the state. The council is administered by sixteen appointed representatives from the public and from state and local government, and is staffed with professional engineers, biologists, environmental scientists and marine resource specialists. The council issues permits regarding proposed changes in coastal facilities within an area from three miles offshore to two hundred feet inland from coastal features, including all freshwater wetlands within the coastal zone. The council formulates, amends, and enforces violations of the Rhode Island Coastal Resources Management Plan and Special Area Management plans. The council: develops guidelines and advises communities on harbor management plans; develops a Submerged Lands Management licensing program for public trust areas; designates public rights-of-way to the shore; and serves as the aquaculture coordinator for permitting and planning actions. The council is the lead agency for all dredging and implements an extensive habitat restoration effort. It also conducts public outreach and public communication campaigns on its programs and activities, and coordinates its programs with other government agencies. The agency will be merged with the Department of Environmental Management in FY 2009, with the core functions of the agency and the Council remaining intact.

The State Water Resources Board is a water supply planning and development agency responsible for promoting the protection of developed and undeveloped drinking water supplies for the thirty-nine municipal water supply systems located in the state. The board regulates water supply distribution lines connecting water supply systems and is creating a computerized database for drought alert communication. The board also manages the Big River Management Area, a water supply reservation. The board is composed of thirteen appointed representatives from the public and from state and local government. The agency will be merged with the Department of 85

Natural Resources Environmental Management in FY 2009, with the core functions of the agency and the Board remaining intact.

The FY 2008 revised recommendation from all funds for natural resource agencies is $94.8 million, or $2.4 million above enacted appropriations of $92.3 million. General revenues decrease by $2.4 million, or 6.0 percent to a total allotment of $37.8 million. Federal funds increase by $2.8 million, or 9.4 percent, to $32.6 million, attributable to carryover and new awards. Restricted receipts decrease b.$L5 million to, $16.9 million,.a decrease of 8.2 percent from the enacted. Other funds tincrease..'by $3.5.. milli'-too $7.5 million, an increase of 88.7 percent over the enacted level. -

The Governor recommends :ttal expenditures *of$b95.2 million for the natural iesource function in FY 2009, an increase of $2.9 million; 6-,3 "I0p it.cfroithe FY 2008 enacted level. Fiscal year 2009 financing consists of $38.3 million in general revenue, $34.8 million in federal grants, $16.7 million in restricted receipts, and $5.3 million in other funds.

How it is Financed M Restricted El Other Funds Receipts 6.1%

. ,,. .. :, - = 13 °/....-..... . ... .2

[3 Federal Funds General Revenue 83.6%

m General Revenue 0 Federal Funds m Restricted Receipts o Other Funds 86

Natural Resources How it is Spent 0 Debt Service L* Operating 0.0% Transfers 1 Assistance, Grants ( ~0,0%

and' Benefits 10.8%

0 Aid To Local Units Personnel Of Government 61.1%

0.0%

0 Operating Suppliese Capital Purchases and Expenses and Equipment 10.2% 17.9%

U! Personnel 0] Operating Supplies and Expenses E3 Aid To Local Units Of Government [] Assistance, Grants and Benefits U] Capital Purchases and Equipment Debt Service Operating Transfers Of the $95.2 million recommenided for nAtui'l!resources for FY 20109, personnel is budgeted at

$58.1 million; or 61.1 percen t;6opating a*t*9. 7Smilliono' r O2ercent; capital improvements at

$17.0 million, or 17.9 percent;'an&.assistancej grants,; and benefits at $10.3 million, or 10.8 percent.

EnvironmentalManagement The Governor's revised FY 2008 budget for the Department of Environmental Management is

$86.9 million, including $34.2 million in general revenue, $30.8 million in federal funds, $16.1 million in restricted receipts and $5.8 million in other funds. The recommendation includes a decrease of $2.2 million to general revenue appropriations, reflecting the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience,

$357,058; savings from six uncompensated personal leave days for allstate employees, $476,803; and, statewide operating, contracts and grants reductions of 2.7 percent from revised levels,

$121,534. Additional general revenue changes result in a savings of $1.2 million as compared to the enacted budget and include:

0 $2,212,532 less for the Rose Hill Landfill, of which $1,275,000 is shifted to Rhode Island Capital Plan funds and $937,532 is savings achieved through project management;

$449,297 less resulting from offsets to restricted receipt accounts, including $299,297 to the indirect cost recovery restricted account and $150,000 to the Bays, Rivers, and Watershed restricted account;

$283,822 less due to turnover savings from layoffs achieved through program reductions; 87

Natural Resources 0 $600,000 more due to unachieved offsets related to the $1 per ton commercial solid waste disposal surcharge that has not materialized from the Resource Recovery Corporation;

$315,908 more for the salaries and benefits of 3.0 Information Technology positions that are transferred from the Department of Administration;

$657,378 more for salaries and benefits, including $37,905 more for other personnel in the Office of the Director, $60,703 less for the Bureau of Natural Resources, and

$680,176 more for personnel in the Bureau of Environmental Protection;

$ 198,000 more for legal services related to the Tiverton soil contamination lawsuit;

$3 1,125 more for utilities and rent at the Promenade Street headquarters; 0 $50,813 more for overtime in the Bureau of Natural Resources, primarily in the Enforcement Division;- hd

$70,553more for payments to'beach host communities.

The Governor's recommendation for federal funds totals $30.8 million in FY 2008, which is $2.6 million more than enacted. A decrease of $133,858 in the Office of the Director is primarily attributable to a reduction in financing for the Blackstone Valley Watershed project. In the Bureau of Natural Resources, the Governor's recommendation is $750,541 more than enacted.

Major changes include a -reduction of $2.1 million in the Division of Agriculture, primarily for the Specialty Crops Block grant; $454,061 more in the Enforcement Division; $1.3 million more in the Division of Fish and Wildlife including $866,731 more for the Comprehensive Wildlife Management Plan grant and $400,000 more for Boating Infrastructure; and $975,666 more for the Division of Forestry. Federal funds in the Bureau ofEnivironmental Protection increase $2.0 million, $1.8 million of which is for the Office of Waste Management. This increase includes

$767,098 more for the Leaking Underground Storage Tanks program and $871,726 more for the Rosehill Landfill Superfunds Site.

For restricted receipts, the Governor recommends expenditures totaling $16.1 million, a decrease of $873,569 as ýcompared. to the enacted level. This includes reductions of $577,977 in the Bureau of Environmental Protection as a result of the unachieved $1 per ton surcharge discussed above and $299,322 in the Bureau of Natural Resources of which $104,946 is due to the Shellfish and Marine License receipt account and $102,116 is in the Boating Registrations Account.

The Governor recommends expenditures of $5.8 million from other funds, an increase of $1.9 million over the enacted budget. Changes to the enacted budget include $1.3 more for the Rosehill Landfill Superfund Site, which was previously financed with general revenues and $713,894 due to carry forward of unexpended Rhode Island Capital funds from FY.2007.

The Governor recommends FY 2009 expenditures for the Department of Environmental Management totaling $86.9 million, including $38.3.million in general revenue, $34.8 million in federal funds, $16.7 million in restricted receipts and $5.3 million in other funds. The Governor recommends merging the Coastal Resources Management Council and the Water Resources Board into the Department in FY 2009 in order to reduce overhead costs and duplication of effort.

When adjusting for the merger, Departmental expenditures increase $4.1 million compared to the 88

Natural Resources enacted budget, including $333,882 less from general revenues, $5.3 million more federal funds,

$533,566 less from restricted receipts, and $324,431 less from other funds.

Personnel costs include no cost of living adjustment for state employees, but do include a 9.9 percent trend growth in employee medical benefit costs and also include funding for retiree health benefits on an actuarial basis beginning in FY 2009, recognizing reduced health benefits for new retirees. Major general revenue changes to the enacted budget (excluding the Water Resources Board and the Coastal Resources Management Council merger) include:

$1,812,532 less for the Rose Hill Landfill due to completion of the construction phase of the project;

$472,548 less resulting from offsets to restricted receipt accounts, including $277,174 to the indirect cost recovery restricted account and $1.95,374 to the Bays, Rivers, and Watershed restricted account;

$671,038 less due to program reductions including elimination of.4.0 FTE's in the Director's Office, 1.0 FTE in the Bureau of Natural Resources, and 4.0 in the Bureau of Environmental Protection for a total savings of $828,367, including $671,038 -from general revenues;

$600,000 more due to unachieved offsets related to the $1 per ton commercial solid waste disposal surcharge that has not materialized from the Resource Recovery Corporation;

$198,775 more for overtime in the Bureau of Natural .Resources, primarily in the Enforcement Division;

$320,323 more for the salaries and benefits of 3.0 Information Technology positions that are transferred from the Department of Administration;

$1.5 million more for. salaries and benefits to finance current staffing levels;

$31,125 more for utilities and rent at the Promenade Street headquarters; and 0 $126,968 less for legislative grants due to. a 50 percent statewide adjustment to all legislative grants.

Excluding the Coastal Resources Management Council and the Water Resources Board, the Governor's recommendation for federal funds totals $33.4 million in FY 2009, $5.3 million more than enacted. A decrease of $19,584 in the Office of the Director is primarily attributable to the exhaustion of funding for the Pay-As-You-Throw program.: In the Bureau of Natural Resources, the Governor's recommendation is $4.4 million more than enacted. Major changes include increases of $2.3 million in the. Division of Forestry, primarily related to the Forest Legacy program, $1.3 million in the Division of Fish and Wildlife, $1.3 million more in the Office of the Associate Director for the Coastal Zone Management grant, and $539,471 less in the Division of Agriculture for the Specialty Crops. Block grant and the Pesticide Enforcement grant. Federal funds in the Bureau of Environmental Protection increase $879,555, which includes an increase of $1.0 million in the Office of Water Resources.

89

Natural Resources For restricted receipts, the Governor recommends expenditures totaling $16.4 million, a decrease of $533,566 compared to the enacted level. This includes reductions of $423,179 in the Bureau of Environmental Protection primarily as a result of the unachieved $1 per ton surcharge noted above, and $287,649 in the Bureau of Natural Resources, of which $112,425 is due to the Shellfish and Marine License receipt account. These reductions are offset by an indrease of

$177,262 in the Office of the Director due to an increase in the. Indirect Cost Recovery account.

The Governor recommends expenditures of $3.6 million from other, funds, which is an increase of

$1.9 million from the enacted budget. Changes to the enactedbudget include reductions of $300,000 for dam repairs and $700,000 less for upgrades at the Newport Pier offset by,an increase of $600,000 for repairs at the Port of Galilee.

For FY 2009, the Governor also recommends. merging the Coastal Resources Management Council and the Water Resources Board into the Departmentr of Environmental Management in order to reduce overhead costs and duplication of effort. The Coastal Resources Management Council will be merged into the Department as a separate program, resulting in a net addition to the Department of. $4.5 million. from all sources of funds. The FY 2008 enacted budget for the Coastal Resources Management Council totaled $4.5 million, including $1.9 million from general revenues, $1.6 million from federal funds, and $1.0 million from restricted receipts. This agency will be merged into -the Department, saving $701,856 from general revenues compared to the enacted budget. The savings will be realized by eliminating 9.0 FTE positions and replacing contract legal services with a state employee, thereby reducing the number of FTEs required to perform the functions of the Council from 30.0 positions to 22.0 positions. Federal funds decrease by $248,715 compared to the enacted budget,. restricted receipts decrease by $772,100 due to the elimination of financing for the South Coast and Brushneck Cove restoration projects, and other funds increase by $1.5 million for the final payment of the Providence River Dredging project.

The Water Resources Board will be merged into the Office of Water Resources, resulting in a net addition to the Department of $1.5 million from all sources of funds. The FY 2008 enacted budget for the Water Resources Board totaled $2.4 million, including $1.9 million from general revenues, $400,000 from restricted receipts, and $92,000 from other funds. This agency will be merged into the Department, saving $492,636 from general revenues compared to the enacted budget. The, savings will be realized by eliminating 5.0 FTE positions and adding an accountant position and a chairperson position, thereby reducing the number of FTEs required to perform the functions of the Board from 9.0 positions to 6.0 positions, An additional general revenue savings of $22,443 occurs as a result of a statewide reduction in legislative grants. Restricted receipts decrease by $400,000 due to the elimination of financing for the Supplemental Water Supplies projects, and other funds increase by $8,000 for the Big River Management Area. The Water Resources Board Corporate will remain intact as a quasi-public agency.

The Governor recommends 482.0 positions in FY 2008, 3.0 more than enacted, due to the transfer of 3.0 Information Technology positions from the Department of Administration to the Department. The Governor recommends 501.0 positions for FY 2009, 19.0 more than enacted due to a withdrawal of 9.0 FTEs resulting from program reductions offset by the addition of 22.0 FTEs from the consolidation of the Coastal Resources Management Council and 6.0 FTEs from the consolidation of the Water Resources Board.

90

Natural Resources CoastalResources Management Council The Governor's revised FY 2008 budget for the Coastal Resources Management Council is $5.7 million. This includes $1.9 million of general revenue, $1.7 million of federal funds, and

$395,000 in restricted receipts. General revenue personnel and operating expenditures increase by $61,086, reflecting both current service items and the following statewide adjustments:

savings from lower than anticipated employee health benefit claims experience $20,728; savings from six uncompensated personal leave days for all state employees, $35,951; and statewide operating, contracts and grants. reductions of 2.7 percent from revised levels, $4,024. The FTE position ceiling for the council is,-unchanged at 30.0 for FY 2008. In addition to salary~and benefit adjustments to reflect current services, the Governor recommends the following:

Final payment of $36,310 on a. 27-foot; marine.survey vessel toprovide for more frequent and more detailed inspection of marine resources.

0 $395,000 in restricted receipt expenditures for "the Coastal and Estuary Habitat Restoration Program and Trust fund from the Oil Spill Prevention, Administration and Response. Fund, consisting of unspent FY 2007 balances plus' the annual $250,000 appropriation, to be spent on specific projects to rehabilitate coa'stal habitats.

e $1.59 million in Rhode Island Capital Plan funds for the state cost-share responsibilities for the Providence River Dredging project, as determined in a final closing and reconciliation process with the Army Corps of Engineers. The additional funding requirement arises due to federal formulas for calculating cost-share based on construction costs. An additional $1.655 million is recommended for FY 2009.

In the FY 2009 budget, the Governor recommends the merger of the Agency with the Department of Environmental Management.

State 'Water Resources Board The Governor's revised FY 2008 budget for the Water Resources Board is $2.1 million, including

$1.6 million in general revenue, $400,000 in restricted 'receipts and $101,835 in other funds.

General revenue personnel and operating expenditures decrease by $264 111 from the FY 2008 enacted budget, reflecting adjustments for 3.0 vacant positions, increased funding for road maintenance and plowing within the Big River Management area, and increased operating and maintenance costs for stream gauges, and the following statewide adjustments: savings from lower than anticipated employee health benefit claims experience -$7,673-; savings from six uncompensated personal leave days for all state employees, $15,496; and statewide operating, contracts and grants reductions of 2.7 percent from revised levels, $24,984. Restricted receipts are recommended at the enacted level of $400,000, to accommodate adjunct financing made available by the Department of Health for the Supplemental Water Supplies project. Other funds increase by $9,835 or 10.9 percent over the enacted level, for improvements to the Big River Management area projects financed from the Rhode Island Capital Plan Fund. The Governor recommends 6.0 FTE positions in FY 2008, 3.0 less than the enacted level.

In the FY 2009 budget, the Governor recommends the merger of the Agency with the Department of Environmental Management.

91

Transportation Transportation Summary The transportation function of the state provides for the maintenance and construction of a quality infrastructure which reflects the transportation needs of the citizens of Rhode Island. The function is implemented by the Department of Transportation (DOT) through its core programs, transportation development and maintenance. Transportation development includes construction and design, traffic management, environmental and intermodal planning, capital programming, bridge rehabilitation replacement, and highway safety. The DOT maintenance section engages in the routine maintenance of state highways, bridges, and associated roadsides and highway appurtenances.

In FY 1994, the state established the Intermodal Surface Transportation Fund (ISTF), to provide financing for transportation expenditures from dedicated user-related revenue sources. This dedicated highway fund establishes a direct relationship between transportation project financing and the end-users of the projects, with a stable revenue stream capable of financing the projects on a pay-as-you-go basis.

For FY 2008, the Intermodal Surface Transportation Fund (ISTF) is supported by 29.0 of the state's 30.0-cent per gallon gasoline tax. Gasoline tax receipts finance operating and debt service expenditures of the Department of Transportation, as well as specific portions of transportation-related expenditures of the Rhode Island Public Transit Authority (RIPTA) and the Department of Elderly Affairs and Advocacy (DEAA).

The revenue generated by the state's gasoline tax is allocated to these recipients on an individual cent basis.

State law governs the distribution of the cents to the agencies as well as the general fund. The anticipated current and upcoming fiscal year revenue collection for the gasoline tax is established at each Revenue Estimating Conference. The Conference estimates gasoline tax collections on a cent per gallon revenue yield. This yield is the basis for the development of budgets for the various gasoline tax supported operations.

Since the inception of this funding mechanism for transportation activities, there have been numerous revisions to the allocation plan. Each change has been initiated in order to direct more revenues to transportation operations rather than to the general fund. The last change to the disbursement schedule was in the enacted FY 2006 Budget which increased the RIPTA allocation by one cent, with an offsetting reduction in the allocation of gasoline tax directed to the general -fund.

Current Law Gasoline Tax Allocation (in cents) 2003 2004 2005 2006 2007 2008 2009 Recipient DOT 20.5 20.75 20.75 20.75 20.75 20.75 20.75 RIPTA 6.25 6.55* 6.25 7.25 7.25 7.25 7.25 General Fund 2.25 1.70* 2.0 1.0 1.0 1.0 1.0 DEA 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Total: 30.0 30.0 30.0 30.0 30.0 30.0 30.0

Average rate.foryear.

93

Transportation The Department of, Transportation provides services through four programs: Central Management, Management and Budget, Infrastructure Engineering, and Infrastructure Maintenance. Primaiy funding for Rhode Island transportation and highway construction spending is provided through the Federal Highway Administration (FHWA), under the authority of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). This Act, passed in August 2005, authorizes funds for highway construction, highway safety programs, mass transit operations, and other surface transportation projects for the, five-year period 2005 - 2009. The new Act. combines the improvements scheduled for current programs with new initiatives for improving, transportation :safety and traffic flow efficiency, enhancing communities, and advancing economic growth. , . . ."

The DOT Highway Improvement Program (HIP) includes highway and intermodal projects that utilize federal funds administered by the FHWA, and'highway transportation infrastructure projects financed by state matching funds which include general obligation bonds and proceeds from certainland sales. The HIP implements DOT's capital program as.identified in the State's Transportation Improvement Program (TIP).

The TIP is a listing of transportation projects that the state plans to finance over a six-year period from federal highway funds. The Federal 'Highway 'Administration requires that all projects utilizing federal funds shall appear in a:TIp adopted by the State Planning Council and approved by the Governor.

In Rhode Island, the TIP is the product of extensive public outreach to all communities, public interest groups, and citizens throughout the state by the agencies involved in transportation planning and project implementation. Following extensive public solicitation for the current TIP, highway projects are selected by a twenty-seven member public body, known as the Transportation Advisory Committee (TAC), using criteria, based on six major categories: mobility benefits; cost effectiveness; economic development; environmental impact; degree of support to local and state goals and plans- and safety/security/technology.

Certain projects are reviewed by special public committees prior to selection for the TIP by the TAC. The transportation air quality subcommittee, assisted by DOT staff, conducts a solicitation and evaluation of Congestion Mitigation and Air Quality (CMAQ) ýproposals. A, TAC subcommittee reviews new bicycle/pedestrian projects, and a DOT advisory committee solicits and evaluates application for funds earmarked in SAFETEA-LU for transportation enhancement activities:

FY 2004 marked the beginning of a major effort on the part of Rhode Island government to address the rebuilding and modernization of the State's transportation systems: In November 2003, the State issued the first series in a bond program that authorizes $709.6 million and currently programs $668,.1 million in construction funds for five major infrastructure projects to be completed over an 8 '/2 year period. This undertaking will be primarily financed through two funding mechanisms. The majority of the costs ($548.2 million) will be provided through Grant Anticipation Revenue Vehicle bonds (GARVEE). GARVEE represents a program approved by FHWA that allows states to borrow funds, which are backed and repaid by the annual allocation of Federal Highway Administration construction funds. A supplemental revenue bond issue known as the Motor Fuel Revenue Bonds program, which is secured by 2-cents of the department's gasoline tax allocation, will provide another $119.9 million to this infrastructure initiative.

The State has issued a second series of both the GARVEE and Motor Fuel Bonds program in 2006 and is planning the issuance of a third series in 2009. The projects being financed -under this program are the 1-195 Relocation, Washington Bridge Reconstruction, a new Sakonnet River Bridge, the construction of Quonset Rt. 403, and amounts for completion of the Freight Rail Improvement Program. The debt service on the GARVEE bonds in FY 2008 and FY 2009, to be paid through the FHWA allocation, is $44.2 million and is reflected in the DOT's operating budget as a federal fund source. The gasoline tax revenue supported debt service on the Motor Fuel Tax revenue bonds dedicated to the trust account is estimated to be $7.0 million in FY 2008 and FY 2009. Unlike general obligation debt service costs that are budgeted in the Department of Administration, these debt service payments are reflected in the DOT operating budget.

94

Transportation The continued emphasis towards a more balanced multimodal transportation system extends to statewide mass transit programs. As noted above, operating assistance~of $33.3 million in FY2008 and $33.2 million in FY 2009 to the Rhode Island Public Transit Authority will be financed !from a 7.25-cent allocation of the gasoline. tax. Not recorded ,in the DOT budget, but presented in the RIPTA FY 2008 and FY 2009financial plans is RIPTA's estimate of $14.1 million in enhanced funding from Department of Human Services accounts for Medicaid client transit passes: Another cent of the gasoline tax not included in the Department of Transportation budget: supports the. efforts of the Department of Elderly Affairs and Advocacy to streamline and enhance elderly and handicapped transportation services. Much of this allocation is transferred to RIPTA to underwrite pass programs for the elderly; and to finance compliance costs statewide associated with Americans with Disabilities Act requirements.

The revised FY 2008 budget for DOT totals $349.5 million including .$239.4 million in federal funds,

$108.6 million in other funds, and $1.4 million in restricted receipts.,. This represents a $24.6 million decrease in. all funds fromr.the FY 2008 enacted budget. Federal. funds; decrease a total of $35.3 million while restricted receipts increase $782,874 from the enacted budget. . Other funds' for the DOT increase a total of $9.9 million from the enacted budget. The other funds total includes. gasoline'tax expenditures for the DOT, RIPTA, and GARVEEiMotor Fuel Revenue Bonds, as well as RICAP appropriations, land sale proceeds, nonland surplus property revenues, and other miscellaneous receipts.

The revised FY 2008 budget for. the ISTEA fund is $140.6 million, which represents the revised gasoline tax yield estimate .of $4,685,000 per cent as well as a: carry forward from FY 2007 totaling $219 million.

Gasoline tax funds within the Department of Transportation total $93.6 million, $50.9.is recommended for the operations of the DOT, $33.3 is the operating transfer to -finance RiTPTA, and $9.4 million' is associated with the GARVEE/Motor Fuel Revenue Bonds 'program. zGasoline. tax'. funds within the Department increase $1.2 million from .the enacted budget. The increase is primarily a result of the carry forward surplus from FY 2007. There were no revisions to the gasoline tax estimate compared to 'the FY 2008 enacted budget.. Other adjustments to the total gasoline tax appropriation for the Department -include projected transfers to the Department of Administration to finance transportation related.general-obligation bond debt service costs which total $33..6 million for DOT and $675,238 for RIPTA. The debt service adjustment to the DOT represents an increase of $1.9 million from the enacted budget. A total of $1.9 million represents the financing of Human Resources, Information Technology,, and Legal Services positions consolidated within the Department of Administration. The total .transfer amount of these positions represents an increase of $750,240 from the FY 2008 enacted budget and is partially a result of the transfer of 3.0 Legal Services positions to the Department of Administration as part of the consolidation effort. The reduction also reflects the correct. state matching proportion of thie personnel costs based upon current year federal highway funding levels. The revised FY 2008 budget also takes' into account a $2.9 million carry forward surplus from FY 2007. The Governor recomrnends'a $4.3 million balance forecast for the end of FY 2008 to be carried forward into FY 2009 in order to finance a $6.0 million increase in debt service costs.

A total recommendation of $3..2 million from RICAP funds finances the Pawtucket-Central Falls Train Station Study, RIPTA Elmwood Expansion Project, the Cherry Hill/Lincoln Project, and Maintenance Facility improvements, which is consistent with the enacted budget.

Other funds increases also include essentially an additional $7.3 million from the sale of land associated with the 1-195 relocation project and a total of $335,000 from the FCC's sale of the path between two towers used as a backup signal transponder for the analog system. DOT has opted. to utilize the revenue to outfit Division of Maintenance and other select vehicles with digital radio sets which allows the DOT to join the RISCON system.

95

Transportation Federal funds decrease a total of $35.3 million from the enacted budget. The decrease is primarily due to a decrease of 30.8 million in Federal Highway Administration funds and represents the current expenditure estimate by the Department. GARVEE debt service is deducted from the total estimated obligation authority estimate for the federal highway fund, and totals $44.2 million in the revised FY 2008 budget.

The revised FY 2008 budget also includes a total of $9.8 million related to personnel costs associated with the GARVEE program and general obligation bonds within the federal fund category. Federal transit grants total $14.4 million, a decrease of $8.9 million over the enacted budget primarily for the Fixed Guideway (Commuter Rail) project. A total of $17.8 million is recommended 'for National Highway Safety Administration grants, which represents an increase of $62 ! 162 from the ehacted FY 2008 budget.

Beginning in FY 2008 the Department has instituteda new Central Services Cost Allocation Plan which will allow the Department to maximize federal reimbursement of overhead costs through an indirect cost rateto be applied to direct labor charges charged to projects. Eligible charges are those that advance DOT's federal programs and projects.

Restricted receipts increase by $782,874 million from the enacted budget and total $1.4 million in the revised FY 2008 budget.

For the Department of Transportation the Governor recommends 733.2 FTE positions for FY 2008. This is a decrease of 40.5 FTEs -from the enacted budget due to the elimination of 37.4 FTE positions vacant as of September 2007, and transfer of three legal positions to the Department of Administration.

In FY 2009, recommended expenditures from all sources for transportation activities total $370.8 million, a decrease of $3.4 miilion from the FY 2008 enacted budget.

The following chart illustrates departmental. expenditures by'source:of financing for FY 2009.

This chart does not include general obligation bond expenditures, GARVEE expenditures, and GARVEE debt service payments, with the exception of personnel costs associated with the GARVEE program and general obligation bonds, which are represented.

96

Transportation How it is Financed 0 Other Funds U General Revenue 28.6% 0.0%,

0 Federal Funds U] Restricted Receipts -- 71.0%

0.4%

......... ,.)..

U General Revenue 0] Federal Funds U] Restricted Receipts 0] OtherFunds The other funds source represents 28.6 percent of the FY 2009 budget for the Department; o'r$105.9 million. This represents an increase of $7.1 million from the FY 2008 enacted budget, including a decrease of $911,028 in gasoline tax funds for operating costs in order to appropriate additional funds towards increased debt service costs in FY 2009: Other funds is compris~d~oftotal gasoline tax expenditures of

$93.6 million, of which $50.9 million represents the DePartment of Transportation budget, $33.3 million is budgeted for RIPTA's allocation of the gasoline tax and $9.4 *nillion is budgeted for the ivotor Fuel Bond allocation ofthe gasoline tax.

The budget for the 1STEA fund in FY 2009 is $140.6 million, which represents a gasoline tax yield estimate of $4,685,000 per cent. The total gasoline tax budget within the DOT represents a reduction of $916,004 from the FY 2008 enacted budget. Included in the FY 2009 gasoline tax budget for the DOT is a general obligation bond debt service payment of $41.5 million, an increase of $6.0 million from the FY 2008 enacted budget. The RIPTA portion of the debt service payment in the Department of Administration totals

$765,484, an increase of $4,976 from the FY 2008 enacted budget. A total of $1.9 million represents reductions to the DOT's allocation of the gasoline tax in order to finance Human Resources, Legal Services and Information Technology positions consolidated within the Department of Administration. The transfer is an increase of $759,268 from the FY 2008 enacted budget. The FY 2008 enacted budget also takes into account a $4.3 million carry forward surplus budgeted from FY 2008. The Governor recommends budgeting a carry forward in order to supplement the Department's FY 2009 budget for increased debt service costs.

The recommendation includes RICAP expenditures totaling $6.2 million of which $2.8 million is for RIPTA Land and Buildings Elmwood Expansion project, $190,400 is for Paratransit Vehicles, $20,000 is for the Pawtucket - Central Falls Train Station Study, $750,000 is for the Cherry Hill/Lincoln Facility project, $862,000 is for the East Providence Facility project, $1.4 million is for the Salt Storage Facilities project and $1.5 million is recommended for outfitting of fire alarm systems for various maintenance facilities to comply with new fire code regulations.

97

Transportation A total of $2.0 million in other funds is from estimated land sale revenues. An additional $3.6 million is estimated from land sale§ associated with the relocation of the 1-195 project. The remaining other funds for the Department is comprised of $1.3 million for the State Infrastructure Bank account, and $279,323 for outdoor advertising and nonland surplus property collections for the budget year.

The Department estimates collecting a totatof,$1.0 nllionin FY 200.9ffom a new revenue source: Utility Permit Applications. Currently, .thelInfristructur'e Engineering divisiorn .isues permits to perform utility work within a state right-of-way. The division averaged 923. tility' permiit applications yearly for the previous two fiscal years. Review and processing' o.pf.appl.icatio'ns is adidinistered by two Engineering Technicians, a Billing Specialist, and a Senior Cii*l:.Eigi'ieer,.! -Th*e Department has developed a fee schedule for this work which it plans to imnplenment~in April" 2008. 'There is no state law governing this DOT work or associated fees and departmental procedure governs this service. This revenue source has been recommended to supplement the Department's gasoline tax budget for highway lighting electricity costs.

The Department also estimates collecting $100,000 in FY 2009 from administering a new state highway logo sign program. Unlike other states with 'such programs, the DOT currently does not charge any fee for oversight to businesses, utilizing the program.. Revenue raised in FY 2009 is recommended to be used for operating expenses within the Division of Engineering which do not quality for federal reimbursement.

The total budget for federal grants for the department represents 71.0 percent of the budget, or $263.4 million, of which $169.2 million is federal highway funds, a total of $44.2 is GARVEE debt service payments from federal highway funds, $4.8 million has been budgeted to account for personnel costs transferred to the GARVEE construction program, and $5.6 million represents personnel costs allocated to general obligation bonds. Other federal grants for the Department are comprised of a total of $1.5.4 million in Federal'Transit funds and $17.4 million in National Highway Safety funds. Federal transit funds decrease by $7.9 million in FY 2009 primarily for the acceleration of the Fixed Guideway (Commuter Rail) project.

National Highway Safety funds increase by $2045826 oyer the FY 2008 enacted budget:

Restricted receipts represent 0.4 percent of the total budget or $1.4 million. Restricted receipts increase

$785,412 from the FY.2008 enacted budget.

For FY 2009 the Governor, recommends 729.2 FTE positions for the Department of Transportation, which represents a 44.5 position decrease from the FY 2008 enacted budget and a four FTE elimination from the FY 2008 revised budget. The positions are located within the Infrastructure Engineering Division.

The following chart illustrates departmental expenditures on an all funds basis by category of expenditure for FY 2009.

98

Transportation How it is Spent

( Operating Transfers 24.3% U Personnel 13 Debt Service .t 0Operating Supplies 0.0%. and Expenses 12.0%

Aid To Local Units 0 Assistance, Grants Of Government 0 Capital Purchases and :.: and Benefits 0.0%

Equipment 7.3%-.`

30.4%

N Personnel 0 Operating Supplies&and Expenses N Aid To Local Units Of Government 0 Assistance, Grants~anid Benefits'

" Capital Purchases and Equipment M Debt Service E3 Operating Transfers The capita! category of expenditure represents 30.4 percent of the total DOT budget. Capital Consists primarily of federal highway dollars located within the ,Engineering program for infrastructure construction costs. Included in the Engineering program is $5.6 million in estimated revenue from the sale and/or lease of DOT properties. This revenue, along with $40.0 million in general obligation bond funds (n6t'included in the operating budget), is utilized to meet matching. requirements to federal highway funds provided under SAFETEA-LU.

A total of 26.1 percent represents personnel. costs of the DOT. Initiated in FY 2008, the Department's new federal indirect cost recovery plan will allow a portion of personnel as well as contract services and operating costs to be eligible for federal reimbursement. A total of $18.5 million of personnel costs are located within the Maintenance program where the source of funding is the gasoline tax.

RIPTA's portion of the state gasoline tax net of debt service costs, as well as the two cents allocated to the GARVEE/Motor Fuel revenue bonds are also appropriated within the Engineering program and represent 48.1 percent of the operating transfer category. A total of 49.1 percent of the operating transfer category represents GARVEE debt service.

The operating category represents 12.0 percent of all funds total spending for the DOT with 43.4 percent of the category representing Maintenance activities, which include pavement repair, crack sealing, pothole repair, litter collection, vehicle fleet maintenance, street and sidewalk sweeping, signage, highway light maintenance, and bridge washing. Snow and ice removal operations also fall under the management of this program.

Assistance, grants, and benefits represent 7.3 percent of the FY 2009 budget and represent primarily $18.3 million in National Highway Transportation Safety Administration federal grant funds.

99

Appendix A Schedules

General Revenue Budget Surplus Statement FY2006 FY2007 FY2008 FY2008 FY2009 Audited Unaudited Enacted Revised Recommended Surplus Opening Surplus $ 38,698,361 $ 38,330,947 $ 174,323 S - $ 742,986 Audit adjustment 202 Reappropriated Surplus 13,489,214 17,381,365 3,640,364 Subtotal 52,187,575 55,712,514 174,323 3,640,364 742,986 General Taxes 2,479,553,794 2,529,241,036 2,610,859,886 2,610,859,886 2,564,000,000 Revenue estimators' revision - (90,659,886)

Changes to Adopted Estimates 29,966,847 39,592,548 Subtotal 2,479,553,794 2,529,241,036 2,610,859,886 2,550,166,847 2,603,592,548 Departmental Revenues 287,314,592 277,790,450 362,869,788 362,869,788 240,000,000 Revenue estimators' revision (39,469,788)

Changes to Adopted Estimates 15,376,315 109,298,081 Subtotal 287,314,592 277,790,450 362,869,788 338,776,315 349,298,081 Other Sources Gas Tax Transfers 4,322,195 4,704,602 4,685,000 4,685,000 4,685,000 Revenue estimators' revision Other Miscellaneous 31,163,069 67,471,487 140,279,158 140,279,158 11,300,000 Rev Estimators' revision-Miscellaneous 5,620,842 Changes to Adopted Estimates 35,294,223 5,301,100 Transfer from Budget Reserve Fund 19,423,025 Lottery 323,899,490 320,989,832 339,700,000 339,700,000 363,900,000 Revenue Estimators' revision-Lottery 9,800,000 Unclaimed Property 14,243,183 11,456,513 14,600,000 14,600,000 9,400,000 Revenue Estimators' revision-Unclaimed 1,400,000 Subtotal 373,627,937 424,045,459 499,264,158 551,379,223 394,586,100 Total Revenues $ 3,140,496,323 $ 3,231,076,945 $ 3,472,993,832 $ 3,440,322,385 S 3,347,476,729 Budget Stabilization (63,583,898) (65,388,158) (69,463,363) (68,806,448) (73,660,834)

Total Available $ 3,129,100,000 $ 3,221,401,301 $ 3,403,704,792 $ 3,375,156,301 $ 3,274,558,881 Actual/Enacted Expenditures $ 3,073,387,688 $ 3,217,760,937. $ 3,403,638,116 $ 3,403,638,116 $ 3,272,710,433 Reappropriations 3,640,364 Supplemetnal - Repayment to RI Capital Fun 19,423,025 Supplemental Appropriations (52,288,190)

Total Expenditures S 3,073,387,688 $ 3,217,760,937 $ 3,403,638,116 $ 3,374,413,315 $ 3,272,710,433 Free Surplus $ 38,330,947 $ 0$ 66,676 $ 742,986 $ 1,848,448 Reappropriations 17,381,365 3,640,364 Transfer to Retirement Fund Total Ending Balances $ 55,712,312 $ 3,640,364 66,676 $ 742,986 $ 1,848,448 Budget Reserve and Cash Stabilization Account $ 95,375,847 $ 78,659,212 $ 104,195,045 $ 103,209,672 $ 113,839,470 A-1

Expenditures from All Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended General Government Administration(1) $484,712,222 $ 579,840,522 $613,268,743 $627,870,496 $542,654,77' Business Regulation 10,818,327 11,619,331 13,135,623 12,765,050 11,748,70e Labor and Training 437,643,846 446,997,208 459,385,094 477,003,037 478,470,40' Revenue(l) 260,392;914 233,997,808 256,364,161 241,755,281 248,663,79]

Legislature 30,706,758 ;32,350,516 35,964,082 37,567,738 35,615,55ý 900,055 Lieutenant Governor 874,724 925,112 839,816 884,92(

Secretary of State 12,173,340 7,397,016 6,066,356 6,173,694 6,874,86Y General Treasurer 37,344,072 -24,775,355 36,890,123 37,357,591 31,448,06ý Board of Elections 2,392,935 4,392,090 2,024,108 1,921,275 2,175,21 Rhode Island Ethics Commission .1, 156,118 1,222,289 1,410,451 1,330,460 1,405,30ý Governor's Office 4,929,963 4,738,217 4,921,696 4,773,728 4,658,611 Commission for Human Rights 1,181,941 1,247,126 1,388,940 1,322,567 1,382,96ý Public Utilities Commission 5,179,216 5,473,869 7,096,087 6,938,452 6,869,21z Rhode Island Commission on Women 89,442 98,629 108,203 104,330 107,20N Subtotal General Government $1,289,621,149 $ 1,355,024,700 $1,438,948,779 $1,457,123,515 $1,372,959,60M Human Services Office of Health & Human Services 640,980 6,578,965 7,860,219 15,744,17i Children, Youth, and Families 285,549,240 311,770,977 232,749,891 234,189,270 209,585,164 Elderly Affairs and Advocacy(2) 46,001,123 37,526 '122' 38,852,980 37,819,257 35,301,05ý Health 108,187,155 104,636,981 125,224,331 132,285,433 124,235,173 Human Services 1,683,206,936 1,574,255,614 1,811,144,472 1,811,712,179 1,764,717,231 Mental Health, Retardation, & Hospitals,. 493,607,151 481,493,542 498,887,743 482,120,822 462,764,62E Office of the Child Advocate 456,409 551,198 560,757 522,070 558,80C Office of the Mental Health Advocate 377,376 385,295 424,343 405,546 431,171 Subtotal - Human Services $2,617,385,390 2,511,260,709 $2,714,423,482 $2,706,914,796 $2,613,337,402 Education Elementary and Secondary 1,018,058,997 1,067,364,092 1,096,216,347 rs 1,103,408,482 1,130,427,074 Higher Education - Board of Governors 680,079,328 728,911,092 770,836,024 783,663,952 816,325,009 RI Council on the Arts 2,626,161 2,922,282 6,484,097 4,570,637 3,275,655 RI Atomic Energy Commission 1,095,360 1,087,486 1,481,463 1,625,863 1,532,90C Higher Education Assistance Authority 22,973,871 23,939,108 29,350,404 28,939,692 29,240,665 Historical Preservation and Heritage Comm. 2,284,109 2,209,943 2,603,164 2,508,200 2,323,114 Public Telecommunications Authority 3,387,939 2,395,158 2,163,310 2,050,231 2,132,366 Subtotal - Education $1,730,505,765 $ 1,828,829,161 $1,909,134,809 $1,926,767,057 $1,985,256,783 A-2

Expenditures from All Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended Public Safety Attorney General 22,225,476 21,914,607 23,903,316 23,339,313 23,731,514 Corrections 161,859,194 170,117,178 197,210,155 197,362,237 184,094,239 Judicial(3) ,89,178,661 91,679,517 96,997,828 95,644,472 94,972,646 Military Staff 28,188,402 32,572,998 24,960,095 36,546,380 29,469,843 Public Safety(4) 82,700,322 91.,197,828 95,327,452 92,784,191 108,978,402 Fire Safety Code Board of Appeal & Review 295,118 285,015 303,435 289,830 306,552 Office Of Public Defender 8,397,923 8,778,424 9,746,784 9,374,872 9,716,729 416,545,567 Subtotal - Public Safety $392,845,096 $ $448,449,065 $455,341,295 $451,269,925 Natural Resources Environmental Management(5) 68,197,576 76,027,147 85,417,860 ý86,924,013 95,179,682 Coastal Resources Management Council(5) 4,483,026 3,897,901 4,508,659 5,702,171 Water Resources Board(5) 1,973,950 1,792,984 2,385,081 2,130,805 Subtotal - Natural Resources $74,654,552 $ 81,718,032 $92,311,600 $94,756,989 $95,179,682 Transportation Transportation 402,521,803 355,852,171 374,140,874 -,349,511,682 370,784,490 Subtotal - Transportation $402,521,803 $ 355,852,171 $374,140,874 $349,511,682 $370,784,490 Total $ 6,507,533,755 $ 6,549,230,340 $ 6,977,408,609 $ 6,991,015,334 $ 6,888,787,890 Proposed Audit adjustments 250,000 6,549,480,340 (1) Department of Administration history adjusted for Taxation and Division of Motor Vehicles transferred in FY2007 to new Department of Revenue.

(2) Agencies merged with Department of Elderly Affairs and Advocacy inlcude Commission on Deaf and Hard of Hearing, Governor's Commission on Disablities, and the Developmental Disabilities Council.

(3) Judicial includes Judicial Tenure and Discipline.

(4) Agencies merged with Department of Public Safety include State Police, E-911 Emergency Telephone System, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice Commission.

(5) Agencies to be merged with Department of Environmental Management include Coastal Resources Management and Water Resources Board.

A-3

Expenditures from General Revenues FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended General Government Administration(I) $375,154,137 $448,583,808 $485,351,641 $505,196,446 $446,358,182 Business Regulation 10,149,419 10,859,699 11,475,916 10,896,429 10,203,066 Labor and Training 7,324,546 7,146,779 6,583,162 6,377,187 6,299,992 Revenue(l) 35,740,584 34,528,687 38,575,957 35,165,844 37,374,032 Legislature 29,355,254 30,941,664 34,440,361 36,116,203 34,099,202 Lieutenant Governor 900,055 . 874,724 925,112 839,816 884,920 Secretary of State 5,218,294 6,150,444 . 5,036,136 5,042,689 5,778,144 General Treasurer 2,748,742 2,636,773 2,908,550 2,773,767 2,563,767 Board of Elections 1,439,759 '3,625,842 1,437,214 1,289,947 1,512,874 Rhode Island Ethics Commission 1,156,118 1,222,289 1,410,451 1,330,460 1,405,309 Governor's Office 4,763,179 4,672,436 4,921,696 4,773,728 4,658,611 Commission for Human Rights 984,270 987,833 984,197 951,677 991,659 Public Utilities Commission .656,682 499,163 661,246 647,628 Rhode Island Commission on Women " 89,442 98,629 108,203 104,330 107,208 Subtotal - General Government $475,680,481 $552,828,770 $594,819,842 $611,506,151 $552,236,966 Human Services Office of Health & Human Services 250,294 307,152 387,176 5,754,966 Children, Youth, and Families 167,965,207 189,391,301 149,249,856 151,956,515 136,984,222 Elderly Affairs and Advocacy(2) 22,963,972 19,630,145 19,510,134 18,062,670 16,789,244 Health 37,324;506 31,490,512 34,487,126 32,320,612 30,757,908 Human Services 718,532,156 704,559,182 811,185,218 795,931;661 767,944,841 Mental Health, Retardation, & Hospitals 249,867,986 238,316,374 243,459,229 234,197,334 219,609,438 Office of the Child Advocate 445,876 513,524 520,757 484,569 519,657 Office of the Mental Health Advocate 377,376 385,295 424,343' 405,546 431,171 Subtotal - Human Services $1,197,477,079 $1,184,536,627 $1,259,143,815 $1,233,746,083 $1,178,791,447 Education Elementary and Secondary 834,246,326 888,448,124 909,429,659 906,392,019 930,464,291 Higher Education - Board of Governors 180,371,797 189,489,620 196,068,047 189,983,048 179,856,018 RI Council on the Arts 1,987,617 2,112,363 2,777,644 2,698,994 2,094,847 RI Atomic Energy Commission 799,460 827,654 819,869 798,827 824,470 Higher Education Assistance Authority 7,729,028 6,708,495 11,019,684 10,219,792 9,913,909 Historical Preservation and Heritage Comm. 1,395,341 1,615,594 1,577,792 1,487,312 1,348,825 Public Telecommunications Authority 1,257,552 1,312,264 1,363,654 1,316,196 1,365,306 Subtotal - Education $1,027,787,121 $1,090,514,114 $1,123,056,349 $1,112,896,188 $1,125,867,666 A-4

Expenditures from General Revenues FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended Public Safety Attorney General $19,895,945 $19,799,873 $21,335,305 $20,626,429 $21;212,039 Corrections 151,117,191 155,796,271 187,954,532 i85,001,095 178,173,504 Judicial(3)

77,771,437 82,039,512 84,964,917 82,799,916 82,622,926 Military Staff .2,982,041 2,533,905 2,563,864 2,497,995 3,739,948 Public Safety(4) 70,980,886 79,871,941 79,985,466 78,250,595 81,956,037 Fire Safety Code Board of Appeal & Review 295,118 285,015 303,435 289,830 306,552 Office Of Public Defender 8,270,299 8,564,734 9,324,951 9,015,956 9,468,259 Subtotal - Public Safety .$331,312,917 $348,891,251 $386,432,470 $378,481,816 $377,479,265 Natural Resources Environmental Management(5) 38,089,630 38,071,851 36;413,000 34,213,462 38,335,089 Coastal Resources Management Council(5) 1,681,767 2,076,370 1,879,559 1,940,645 4.,893,081 Water Resources Board(5) 1,358,690 1,648,213 1,628,970' Subtotal - Natural Resources $41,130,087 $41,796,434 $40,185,640 $37,783,077 $38,335,089 Transportation Transportation Subtotal - Transportation Total $3,073,387,685 $3,218,567,196 $3,403,638,116 $3,374,413,315 $3,272,710,433 Proposed Audit adjustments (806,258) 3,217,760,938 (1) Department of Administration history adjusted for Taxation and Division of Motor Vehicles transferred in FY2007 to new Department of Revenue.

(2) Agencies merged with Department of Elderly Affairs and Advocacy inlcude Commission on

Dear and Hard of Hearing,

Governor's Commission on Disablities, and the Developmental Disabilities Council.

(3) Judicial includes Judicial Tenure and Discipline.

(4) Agencies merged with Department of Public Safety include State Police, E-91I Emergency Telephone System, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice Commission.

(5) Agencies to be merged with Department of Environmental Management include Coastal Resources Management and Water Resources Board.

A-5

Expenditures from Federal Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended General Government Administration(l) $28,843,073 $46,312,586 $45,581,896 $46,591,786 $33,952,039 Business Regulation 43,291 ; 51,742 201,742 Labor and Training 33,831,488 29,931,444 28,124,845 35,037,304 35,395,196 Revenue(1) 1,529,556 1,147,679 1,335,145 2,128,997 1,894,095 Legislature Lieutenant Governor Secretary of State 6,496,305 976,109 586,744 572,503 541,139 General Treasurer 594,151 476,081 ,1;916,146 1,150,186 1,170,081 Board of Elections 953,176 766,248 586,894 631,328 662,344 Rhode Island Ethics Commission Governor's Office Commission for Human Rights 197,671 259,293 404,743 370,890 391,309 Public Utilities Commission 76,230 92,650 100,124 97,097 100,547 Rhode Island Commission on Women Subtotal - General Government $72,521,650 $80,005,381 $78,688,279 $86,781,833 $74,106,750 Human Services Office of Health & Human Services 93,852 5,826,265 7,158,672 7,891,563 Children, Youth, and Families 114,995,314 120,424,524 80,211,094 79,619,679 69,633,001 Elderly Affairs and Advocacy(2) .15,736,403 12,646;234 13,717,234 13,490,681 12,898,249 Health 59,868,983 60,912,006 65,305,387 74,843,215 68,088,703 Human Services 961,465,758 -866,755,175 989,435,533 1,005,657,588 987,279,551 Mental Health, Retardation, & Hospitals 240,348,945 240,445,805 243,971,014 234,903,609 226,713,559 Office of the Child Advocate 10,533 37,674 40,000' 37,501 39,143 Office of the Mental Health Advocate Subtotal - Human Services $1,392,425,936 $1,301.315.270 $1,398,506,527 $1.415.710.945 $1.372.543.769 Education Elementary and Secondary $180,108,204 $174,313,592 $178,395,910 $188,634,265 $191,008,411 Higher Education - Board of Governors

1,347,949 2,871,077 3,526,446 5,300,814 3,646,277 RI Council on the Arts 584,039 653,685 706,453 671,643 741,355 RI Atomic Energy Commission 136,215 101,942 420,940 537,277 407,277 Higher Education Assistance Authority 9,185,706 8,846,030 12,612,204 12,366,402 12,550,536 Historical Preservation and Heritage Comm. 581,658 508,937 529,078 528,895 479,640 Public Telecommunications Authority Subtotal - Education $191,943,771 $187,295,263 $196,191,031 $208,039,296 $208,833,496 A-6

Expenditures from Federal Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended Public Safety

$1,274,491 Attorney General $1,390,957 $1,379,464 $1,367,430 $1,263,609 Corrections 9,064,113 9,252,613 2,807,500 3,553,559 2,640,735 Judicial(3) .2,334,472 1,412,645 2,064,119 2,649,752 1,939,312 Military Staff 24,913,198 27,561,826 20,594,699 30,966,740 23,999,074 Public Safety(4) 6,776,732 6,130,210 5,521,399 7,807,107 5,832,120 Fire Safety Code Board of Appeal & Review Office Of Public Defender 127,624 213,690 421,833 358,916 248,470 Subtotal - Public Safety $44,607,096 :$45,845,475 -$32,789,014 $46,703,504 $35,923,320 Natural Resources Environmental Management(5) $18,683,990 $21,320,143 $30,791,460

$28,153,533 $34,845,754

, Coastal Resources Management Council(5) 2,086,789 1,659,031 1,607,000 1,770,436 IWater Resources Board(5) 203,685 64,170 Subtotal - Natural Resources $20,974,464 $23,043,344 $29,760,533 $32,561,a96 " $34,845,754 Transportation Transportation $258,876,586 $225,339,560 $274,706,956 $239,425,158 S263,437,353

$258,876,586 $225,339,560 $274,706,956 $239,425,158 $263,437,353 Subtotal - Transportation Total $1,981,349,503 $1,862,844,293 $2,010,642,340 $2,029,222,632 $1,989,690,442 Proposed Audit adjustments

1,056,258.

1,863,900,551

, (1)Department of Administration history adjusted for Taxation and Division of Motor Vehicles transferred in FY2007 to new Department of Revenue.

(2) Agencies merged with Department of Elderly Affairs and Advocacy inicude Commission on Deaf and Hardof Hearing, Governor's Commission on Disablities, and the Developmental Disabilities Council.

, (3) Judicial includes Judicial Tenure and Discipline.

(4) Agencies merged with Department of Public Safety include State Police, E-911 Emergency Telephone System, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice Commission.

(5) Agencies to be merged with Department of Environmental Management include Coastal Resources Management and Water Resources Board.

A-7

Expenditures from Restricted Receipts FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended General Government Administration(1) $1,861,763 $6,784,585 $12,109,406 $9,173,841 $21,406,394 Business Regulation 668,908 716,341 1,607,965 1,666,879 1,545,638 Labor and Training 15,355,905 15;552,019 28,283,698 25,075,274 19,068,769 Revenue(l) 691,133 705,160 845,506 892,006 925,663 Legislature 1,351,504 1,408,852 1,523,721 1,451,535 1,516,351 Lieutenant Governor Secretary of State 458,741 270,463 443,476 558,502 555,581 General Treasurer 28;15,0,156 21,474,116 31,772,287 33,193,653 27,460,845 Board of Elections Rhode Island Ethics Commission Governor's Office 117,777 (3,617)

Commission for Human Rights Public Utilities Commission 4,446,304 4,882,056 6,334,717 6,193,727 6,768,667 Rhode Island Commission on Women, Subtotal,- General Government $53,102,191 $51,789,975 $82,920,776 $78,205,417 $79,247,908 Human Services Office of Health ;& Human Services - $296,834 $445,548 $314,371 $2,097,642 Children, Youth, and Families 2,033,284 1,767,022 1,753,941 1,757,941 1,757,941 Elderly Affairs and Advocacy(2) 2,429,412. 742,692' 740,612 $1,344,355 $628,565 Health 10,972,385 12,204,991 25,403,142 25,092,196 25,359,152!

Human Services 3,159,071 2,941,257 9,223,721 10,022,930 9,367,839 Mental Health, Retardation, & Hospitals 6,776 183,295 3,040,000. 2,593,834 2,390,000 Office of the Child Advocate Office of the Mental Health Advocate Subtotal - Human Services $18,600,928 $18,136,091 $40,606,964 $41,125,627 $41,601,145 Education Elementary and Secondary $3,496,007 $4,432,359 $7,149,893 $7,131,008 $7,714,372 Higher Education - Board of Governors 762,134 1,067,062 893,520 1,093,499 641,526 RI Council on the Arts 200,000 RI Atomic Energy Commission Higher Education Assistance Authority.

Historical Preservation and Heritage Comm. 307,110 85,412 496,294 491,993 494,649 Public Telecommunications Authority Subtotal - Education $4,565,251 $5,584,833 $8,539,707 $8,916,500 $8,850,547 A-8

Expenditures from Restricted Receipts FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended Public Safety Attorney General $719,263 $678,356 $973,547 $940,574 $980,866 Corrections 2,423 Judicial(3) 7,631,618 7,272,677 8,518,792 8,661,007 8,710,408 Military Staff 264;966 242,449 407,532 301,504 315,321 Public Safety(4) 1,911,680 1,905,648 1,639,043 1,469,162 434,000 Fire Safety Code Board of Appeal & Review Office Of Public Defender Subtotal - Public Safety $10,529,950. $109099,130 $11,538,914 $11,372,247 $10,440,595 Natural Resources Environmental Management(5) $9,817,750 $15,257,111 $16,945,441 $16,071,872 $16,661,875 Coastal Resources Management Council(5) 669,970 162,500 1,022,100 395,000 Water Resources Board(5) - 327,254 400,000 400,000 Subtotal - Natural-Resources $10,814,974 $15,419,611 $18,367,541 $16,866,872 $16,661,875 Transportation Transportation -$11,959 $1,451,760 $661,834 $1"444,708, $1,447,246 Subtotal - Transportation -$11,959 $1,451,760 $661,834 $1,444,708 $1,447,246 Total $97,601,335 $102,481,400 $162,635,736 $157,931,371 $158,249,316 Proposed Audit adjustments

$102,481,400 (1) Department of Administration history adjusted for Taxation and Division of Motor Vehicles transferred in FY2007 to new Department of Revenue.

(2) Agencies merged with Department of Elderly Affairs and Advocacy inlcude Commission on Deaf and Hard of Hearing, Governor's Commission on Disablities, and the Developmental Disabilities Council.

(3) Judicial includes Judicial Tenure and Discipline.

(4) Agencies merged with Department of Public Safety include State Police, E-911 Emergency Telephone System, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice-Commission.

(5) Agencies to be merged with Department of Environmental Management include Coastal Resources Managemeni and Water Resources Board.

A-9

Expenditures from Other Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended General Government Administration(]) $78,853,249 $78,159,543 $70,225,800 $66,908,423 $40,938,160 Business Regulation Labor and Training 381,131,907 394,366,966 396,393,389 410,513,272 417,706,448 Revenue(1) 222,431,641 197,616,282 215,607,553 203,568,434 208,470,001 Legislature Lieutenant Governor Secretary of State General Treasurer 5,851,023 188,385 293,140 239,985 253,375 Board of Elections Rhode Island Ethics Commission Governor's Office 49,007 69,398 Commission for Human Rights Public Utilities Commission Rhode Island Commission on Women Subtotal - General Government $688,316,827 $670,400,574 $682,519,882 $681,230,114 $667,367,984 Human Services Office of Health & Human Services Children, Youth, and Families 555,435 188,130 1,535,000 ' 855,135

1,210,000 Elderly Affairs and Advocacy(2) 4,871,336 4,507,051 4,885,000 4,921,551 4,985,000 Health 21,281 29,472 28,676 29,410 29,410 Human Services 49,951 1,300,000 100,000 125,000 Mental Health, Retardation, & Hospitals 3,383,444 2,548,068 8,417,500 10,426,045 14,051,631 Office of the Child Advocate Office of the Mental Health Advocate Subtotal - Human Services $8,F81,447 $7,272,721 .$16,166,176 $16,332,141 $20,401,041 Education Elementary and Secondary $208,460 $170,017 $1,240,885 $1,251,190 $1,240,000 Higher Education - Board of Governors 497,597,448 535,483,333 570,348,011 587,286,591 632,181,188 RI Council on the Arts 54,505 156,234 3,000,000 1,000,000 439,453 RI Atomic Energy Commission 159,685 157,890 240,654 289,759 301,153 Higher Education Assistance Authority 6,059,137 8,384,583 5,718,516 6,353,498 6,776,220 Historical Preservation and Heritage Comm Public Telecommunications Authority 2,130,387 1,082,894 799,656 734,035 767,060 Subtotal - Education $506,209,622 $545,434,951 $581,347,722 $596,915,073 $641,705,074 A-10

Expenditures from Other Funds FY 2006 FY2007 FY 2008 FY 2008 FY 2009 Actual Unaudited Enacted Revised Recommended Public Safety Attorney General $219,311 $161,887 $215,000 $404,880 $275,000 Corrections 1,675,467 5,068,294 6,448,123 8,807,583 3,280,000 Judicial(3) 1,441,134 954,683 1,450,000 1,533,797 1,700,000 Military Staff 28,197 2,234,818 1,394,000 2,780,141 1,415,500 Public Safety(4) 3,031,024 3,290,029 8,181,544 5,257,327 20,756,245 Fire Safety Code Board of Appeal & Revie-Office Of Public Defender Subtotal - Public Safety $6,395,133 $11,709,711 $17,688,667 $18,783,728 $27,426,745 Natural Resources Enmironmental Management(5) $1,606,206 $1,378,042 $3,905,886 $5,847,219 $5,336,964 Coastal Resources Management Council(5) 44,500 - - 1,596,090 Water Resources Board(5). 84,321 80,601 - 92;000 101,8351 Subtotal - Natural Resources $1,735,027 $1,458,643 $3,997,886 $7,545,144 $5,336,964 Transportation Transportation $143,657,176 $129,060,851 $98,772,084 $108,641,816 $105-899,891 Subtotal - Transportation $143,657,176 $129,060,851 $98,772,084 $108,641,816 $105,899,891 Total $1,355,195,232 $1,365,337,451 $1,400,492,417 $1,429,448,016 $1,468,137,699 Proposed Audit adjustments

$1,365,337,451 (1) Department of Administration history adjusted for Taxation and Division of Motor Vehicles transferred in FY2007 to new Department of Revenue.

(2) Agencies merged with Department of Elderly Affairs and Advocacy inicude Commission on Deaf and Hard of Hearing, Governor's Commission on Disablities, and the Developmental Disabilities Council.

(3) Judicial includes Judicial Tenure and Discipline.

(4) Agencies merged with Department of Public Safety include State Police, E-9tl Emergency Telephone System, Municipal Police Training Academy, Sheriffs, Capitol Police, and the Governor's Justice Commission.

(5) Agencies to be merged with Department of Environmental Management include Coastal Resources Management and Water Resources Board.

A-1 I

Full-Time Equivalent Positions FY 2006 FY 2007 FY 2008 FY 2008 FY 2009 Revised General Government Administration 777.9 1,065.2 1,032.9 791.8 775.8 Statwide Retirement Vacancies - - - - (300.0)

Business Regulation 110.0 103.0 105.0 102.0 98.0 Labor & Training 510.7 467.9 454.9 417.5 407.2 Revenue 492.0 473.0 475.0 465.0 460.0 Legislature 289.0 294.0 298.2 297.9 297.9 Office of the Lieutenant Governor 10.0 9.5 9.5 9.0 8.0 Secretary of State 59.0 56.0 58.0 58.0. 55.0 General Treasurer .87.5 86.5 88.0 88.0 86.0 Boards for Design Professionals 4.0 4.0 - -

Board Of Elections 15.0 14.0 14.0 14.0 14.0 Rhode Island Ethics Commission .12.0 12.0 12.0 12.0 12.0 Office of the Governor 49.5 46.0 44.0 45.0 39.0 Commission for Human Rights 15.0 14.5 14.5 .14.5 14.5 Public Utilities Commission : 46.0 45.7 45.7 45.0 44.0 Rhode Island Commission on Women 1.0 1.0 1.0

1.0 1.0 Subtotal - General Government 2,478.6 2,692.3 2,652.7 2,360.7 2,012.4 Human Services Office of Health and Human Services 5.0 5.0 6.0 102.2 Children, Youth, and Families 849.8 789.0 805.0 788.5 733.5 Elderly Affairs and Advocacy 52.0 48.0 46.0 54.6 44.6 Health 499.4 465.6 459.0 437.1 409.5 Human Services 1,173.4 1,111.0 1,109.0 1,067.6 966.4 Mental Health, Retardation, & Hospitals 1,992.7 1,824.3 1,761.0 1,657.6 1,372.6 Office of the Child Advocate .6.1 5.8 5.8 5.8 5.8 Commission On the Deaf & Hard of Hearing (1) 3:0 3.0 3.0 -

RI Developmental Disabilities Council (1) 2.0 2.0 2.0..

Governor's Commission on Disabilities (1) 6.6 6.6 5.6 -

Office of the Mental Health Advocate 3.7 3.7 3.7 3.7 3.7 Subtotal - Human Services 4,588.7 4,264.0 4,205.1 4,020.9 3,638.3 Education Elementary and Secondary Education 339.1 131.2 134.2 133.2 140.2 Davies - 133.0 133.0 133.0 127.0 School for the Deaf . - 68.0 68.0 65.8 62.8 Elementary Secondary Education - Total 339.1 332.2 335.2 332.0 330.0 Office of Higher Education Non-Sponsored Researcb 22.0 21.0 21.0 21.0 20.1 URI Non-SponsoredResearch 1,959.6 1,940.1 1,930.1' 1,930.1. 1,900.1 RIC Non-Sponsored Research 859.2 843.5 850.5; 850.5 835.5 CCRI Non-Sponsored Research 748.9 750.2 748.2 748.2 733.2 Higher Education - Total Non-Sponsored 3,589.7 3,554.8 3,549.8 3,549.8 3,488.9 A- 12

Full-Time Equivalent Positions FY 2006 FY 2007 FY 2008 FY 2008 FY 2009 Revised RI Council On The Arts 8.0 8.6 8.61 8.6 8.6 RI Atomic Energy Commission 8.6 8.6 8.6 8.6 8.6 Higher Education Assistance Authority 46.0 46.0 46.0 42.6 42.6 Historical Preservation and Heritage Commission 17.6 17.6 17.6 17.6 16.6 Public Telecommunications Authority 22.0 20.0 20.0 20.0 20.0 Subtotal - Education 4,031.0 3,987.8 3,985.8 3,979.2 3,915.3 Public Safety Attorney General 234.5 234.8 234.8 234.8 231.1 Corrections 1,589.0 1,498.6 1,508.6 1,515.0 1,464.0 Judicial 742.0 732.5 732.5 732.3 729.3 Military Staff 105.0 109.0 110.0 104.0 103.0 Public Safety 609.1 591.5 E-911 (2) 53.6 53.6 53.6 RI State Fire Marshal (2) 38.0 36.0 35.0 Commission on Judicial Tenure and Discipline 1.0 1.0 Rhode .Island Justice Commission (2) 8.5 7.6 7.6 Municipal Police Training Academy (2) 4.0 4.0 4.0 State Police (2) 282.0 273.0 272.0 Fire Safety Code Board of Appeal and Review 3.0 3.0 3.0 3.0 3.0 Office of the Public Defender 93.5 93.5 93.5 93.5 93.5 Subtotal - Public Safety 3,154.1 3,046.6 3,054.6 3,291.7 3,215.4 Natural Resources Environmental Management 531.3 505.3 491.4 482.0- 501.0 Coastal Resources Management Council (3) 30.0 30.0 30.0 30.0 Water Resources Board (3) 9.0 9.0 9.0 6.0 Subtotal - Natural Resources 570.3 544.3 530.4 518.0 501.0 Transportation Transportation 809.7 786.7 773.7 733.2 729.2 Subtotal - Transportation 809.7 786.7 773.7 733.2 729.2 Total Non Sponsored 15,632.4 15,321.7 15,202.3 14,903.7 14,011.6 Higher Education Sponsored Research

Office 1.0 1.0 1.0 1.0 1.0 CCRI 100.0 100.0 100.0 100.0 100.0 RIC 82.0 82.0 82.0 82.0 82.0 URI 602.0 602.0 602.0 602.0 602.0 Subtotal Sponsored Research 785.0 785.0 785.0 785.0 785.0 Total Personnel Authorizations 16,417.4 16,106.7 15,987.3 15,688.7 14,796.6 Total Personnel ** 16,417.4 16,106.7 15,987.3 15,688.7 14,796.6

A total of 785.0 FTE positions in Higher Education in FY 2008 and FY 2009 represent FTE's supported by sponsored res funds. Commencing in FY2005, these positions were included in the overall FTE Cap. In addition, there are separate caps for each program and for sponsored/non-sponsored research FTE's.

(1) Agencies merged with Department of Elderly Affairs and Advocacy.

(2) Agencies merged with Department of Public Safety (3) Agencies to be merged with Department of Environmental Management A-13

General Revenues as Recommended FY 2006' FY 2007 FY 2008 FY 2009 Actual Unaudited Revised Recommended Personal Income Tax $996,792,298 $1,065,367,487 $1,069,500,000 $1,100,300,000 General Business Taxes Business Corporations 165,054,033 148,149,226 163,566,847 160,300,000 Public Utilities Gross Earnings 96,027,349 102,109,351 104,000,000 104,000,000 Financial Institutions 3,988,509 4,423,263" (100,000) 400,000 Insurance Companies 52,877,704 56,624;206 74,100,000 75,100,000 Bank Deposits 1,494,366 1,673,925 1,700,000 1,700,000 Health Care Provider Assessment 47,002,360 47,969,855 52,300,000 53,225,000 Sales and Use Taxes Sales and Use 869,162,931 873,203,817 865,000,000 888,400,000 Motor Vehicle 52,625,943 46,878,903 44,500,000 46,267,548 Motor Fuel 31,099 1,311,762 1,200,000 1,200,000 Cigarettes 126,340,938 120,480,817 119,100,000 117,300,000 Alcohol 10,870,193 10,705,751 11,000,000 11,000,000 Other Taxes Inheritance and Gift 39,204,438 34,683,979 30,100,000 30,100,000 Racing and Athletics 3,489,811 2,921,166 2,800,000 2,600,000 Realty Transfer 14,591,822 12,737,438 11,400,000 11,700,000 Total Taxes 2,479,553,794 2,529,241,036 2,550,166,847 2,603,592,548 Departmental Receipts 287,314,592 277,790,450 338,776,315 349,298,081 Taxes and Departmentals 2,766,868,386 2,807,031,486 2,888,943,162 2,952,890,629 Other Sources Gas Tax Transfer 4,322,195 4,704,602 4,685,000 4,685,000 Other Miscellaneous 31,163,069 86,894,512 145,900,000 16,601,100 Lottery 323,899,490 320,989,832 384,794,223 363,900,000 Unclaimed Property 14,243,183 11,456,513 16,000,000 9,400,000 Other Sources 373,627,937 424,045,459 551,379,223 394,586,100 Total General Revenues $3,140,496,323 $3,231,076,945 $3,440,322,385 $3,347,476,729 A-14

Changes to FY 2008 Enacted Revenue Estimates Revenue Estimating Changes to Enacted Conference Estimates Adopted Estimates Total Personal Income Tax $1,082,856,883 ($34,756,883) $21,400,000 '$1,069,500,000 General Business Taxes (9,207?,055)

Business Corporations 167,207,055 5,566,847 163,566,847 Public Utilities Gross Earnings 109,300,000 (5,300,000) 104,000,000 Financial Institutions 2,003,344 (2,,603,344) 500,000 (100,000)

Insurance Companies 68,833,704 :2,766,296 2,500,000 74,100,000 Bank Deposits 1,600,000 : 100,0ci0 1,700,000 Health Care Provider Assessment 48,900,000 3,400,000 52,300,000 Sales and Use Taxes Sales and Use 908,723,500 (43,723,500) 865,000,000 Motor Vehicle 50,235,400 (5,735,400) 44,500,000 Motor Fuel 1,100,000 100,000 1,200,000 Cigarettes 112,500,000 6,600,000 119,100,000 Alcohol 11,100,000 (100,000) 11, 000,000 Other Taxes Inheritance and Gift 30,100,000 30,100,000 Racing and Athletics 2,800,000 2,600,000 200,000 Realty Transfer 13,800,000 (2,400,000) 11,400,000 Total Taxes $2,610,859,886 ($90,659,886) $29,966,847 $2,550,166,847 Departmental Receipts $362,869,788 ($39,469,788) $15,376,315 $338,776,315 Taxes and Departmentals $2,973,729,674 ($130,129,674) $45,343,162 $2,888,943,162 Other Sources Gas Tax Transfer $4,685,000 $0 $0 $4,685,000 Other Miscellaneous 140,279,158 5,620,842 145,900,000 Lottery 339,700,000 9,800,000 35,294,223 384,794,223 Unclaimed Property 14,600,000 1,400,000 16,000,000 Other Sources $499,264,158 $16,820,842 $35,294,223 $551,379,223 Total General Revenues $3,472,993,832 ($113,308,832) $80,637M385 $3,440,322,385 A-15

Changes to FY 2009 Adopted Revenue Estimates Revenue Estimating Changes to the Conference Estimates Adopted Estimates Total Personal Income Tax $1,082,100,000 $18,200,000 $1,100,300,000 General Business Taxes Business Corporations 160,000,000 300,000 .160,300,000 Public Utilities Gross Earnings 104,000,000 - 104,000,000 Financial Institutions (19,000,000) 19.,400,000 400,000 Insurance Companies 73,000,000 2 ,100,000 75,100,000 Bank Deposits 1,700,000 1,700,000 Health Care Provider Assessmei '53,500,000 (275,000) 53,225,000 Sales and Use Taxes Sales and Use 888,400,000 - 888,400,000 Motor Vehicle 46,400,000 (132,452) 46,267,548 Motor Fuel 1,200,000 1,200,000 Cigarettes 117,300,000 117,300,000 Alcohol 11.,000,000 11,000,000 Other Taxes Inheritance and Gift 30,100,000 30,100,000 Racing and Athletics 2,600,000 2,600,000 Realty Transfer 11,700,000 11,700,000 Total Taxes $2,564,000,000 $39,592,548 $2,603,592,548 Departmental Receipts $240,000,000 $109,298,081 $349,298,081 Taxes and Departmentals $2,804,000,000 $148,890,629 $2,952,890,629 Other Sources Gas Tax Transfer $4,685,000 $0 $4,685,000 Other Miscellaneous 11,300,000 5,301,100 16,601,100 Lottery 363,900,000 363,900,000 Unclaimed Property 9,400,000 9,400,000 Other Sources $389,285,000 $5,301,100 $394,586,100 Total General Revenues $3,193,285,000 $154,191,729 $3,347,476,729 A-16

General Revenue Changes to Adopted Estimates FY 2008 Taxes PersonalIncome Taxes Limit Historic Structures Tax Credits to $20.0 million $21,400,000 Subtotal: PersonalIncome Taxes $21,400,000 General Business Taxes Insurance: Limit Historic Structures Tax Credits to $20.0-million $2,500,000 Financial Institutions: Limit Historic Structures Tax Credits to $20.0 million 500,000 Business Corporations: Adjust REC Estimate for.FY 07 Audit Adjustment 5,166,847 Business Corporations: Limit Historic Structures Tax Credits to $20.0 million. 400,000 Subtotal: GeneralBusiness.Taxes $8,566,847 Subtotal: All Taxes $29,966,847 Departmental Revenues Fines and Penalties Judiciary: Make Driving while using a Handheld Device an Offense $87,500 Judiciary: Require Court Costs in lieu of Fines for Good Driving Dismissals 275,000 Subtotal: Fines and Penalties $362,500 Sales and Services DHS: Advance Slater Uncompensated Care Distributions $14,713;815 Subtotal: Sales and Service $14,713,815 Miscellaneous DepartmentalRevenues DHS: RI Housing Grants $300,000 Subtotal:

- MiscellaneousDepartmentalRevenues $300,000 Subtotal: All Departmental Revenues $15,376,315 Other Sources Other Miscellaneous Transfer from RI Housing $26,020,247 Transfer from RI Resource Recovery 5,000,000 DEM: Access All Available Resources in U.S.T. Replacement Fund 2,000,000 DOC: Transfer Excess from Correctional Industries 1,250,000 MHRH/AG: Medmal Settlement 700,000 Treasury: Transfer Excess from Bond Refunding Authority 323,976 Subtotal: Other Miscellaneous $35,294,223 Subtotal: Other Sources $35,294,223 Total FY 2008 General Revenue Adjustments $80,637,385 A-17

General Revenue Changes to Adopted Estimates FY 2009 Taxes PersonalIncome Taxes Limit Historic Structures Tax Credits to $40.0 million $18,200,000 Subtotal: PersonalIncome Taxes $18,200,000 GeneralBusiness Taxes Financial Institutions: Adjust REC Estimate for FY 07Audit Adjustment $19,000,000 Insurance: Limit Historic Structures Tax Credits to $40.0 million 2,100,000 Financial Institutions: Limit Historic Structures Tax Credits to $40.0 millior 400,000 Business Corporate: Limit Historic Structures Tax Credits to $40.0 million 300,000 Provider Tax: Reduce Nursing Home Reimbursement Rate (275,000)

Subtotal: GeneralBusiness Taxes $21,525,000 Sales and Use Taxes Motor Carrier Single State Registration Refunds (132,452)

Subtotal: Sales and Use Taxes ($132,452)

Subtotal: All Taxes $39,592,548 Departmental Revenues Licenses and Fees DHS: Reinstitute the Hospital Licensing Fee $77,991,212 DHS: Expand Hospital Licensing Fee to 4.94% of hospitafl'ijet patient revenue 32,720,450 Taxation: Include Bottled Water in Hard-to-Dispose Taxable Beverages 611,919 DOC: Increase Community Corrections Fees 275,868 DOH: Discontinue Licensing of Massage Parlors (11,900)

DOA: Replace Writ Service by State Employees with Constable Servicc (275,000)

Subtotal: Licenses and Fees $111,312,549 Fines and Penalties Judiciary: Require Court Costs in lieu of Fines for Good Driving Dismissals $1,100,000 Judiciary: Make Driving while using a Handheld Mobile Telephone an Offense 350,000 Subtotal: Fines and Penalties $1,450,000 A-18

General Revenue Changes to Adopted Estimates FY 2009 Sales and Services DOH: Convert Newborn Screening and Hearing Fees to Restricted Receipts ($1,733,160)

Subtotal: Sales and Services ($1, 733,160)

MiscellaneousDepartmentalRevenues DHS: RI Housing Grants $300,000 DOA: Cost Recoveries from New and Converted Restricted Receipts 100,000 DOA: Convert Energy Grants to Restricted Receipts (2,131,308)

Subtotal: MiscellaneousDepartmentalRevenues ($1, 731,308)

Subtotal: All Departmental Revenues $109,298,081 Other Sources Other Miscellaneous Transfer from Resource Recovery to General Fund $4,000,000 Prior Year Supplier Overpayments Credit as Determined by Audil 825,000 DHS: Recognize federal from DEFRA ChildSupport Benefit 476,100 Subtotal: Other Miscellaneous !ý$5,301,100 Subtotal: Other Sources $5,3G1,100 Total FY 2009 General Revenue Adjustments $154,191,729 A-19

Other Revenue Enhancements FY 2008 Other Sources DOT: Accept Payment for Upgrading Radio System $335,000 Subtotal: Other Sources $335,000 Total FY 2008 Other Revenue Adjustments $335,000 FY 2009 Restricted Receipts i ..

DOH: Convert Newborn Screening and Hearing Fees to Restricted Receipts $1,733,160 DOH: Increase Newborn Screening and Hearing Fees 515,130 RIDE: Increase RITEAF Line Surcharge by $0.07 329,544 Subtotal: Restricted Receipts 2,568,834 Other Sources DOT: Charge Utility Permit Fees for Work on Highway Right-of-Way s 1,000,000 DOT: Charge Logo Sign Fees 100,000 Subtotal: Other Sources $ 1,100,000 Total FY 2009 Other Revenue Adjustments $3,668,834 A-20

Appendix B.

Changes to FY 2008

Change to FY 2008 General Revenue Budget Surplus FY2008 FY2008 Enactcd(1) Revised(2) Variance(3)

Surplus Opening Surplus $ 174,323 $ $ (174,323)

Reappropriated Surplus 3,640,364 3,640,364 Subtotal 174,323 3,640,364 3,466,041 General Taxes 2,610,859,886 2,610,859,886 Revenue estimators' revision (90,659,886) (90,659,886)

Changes to the Adopted Estimates 29,966,847 29,966,847 Subtotal 2,610,859,886 2,550,166,847 (60,693,039)

Departmental Revenues 362,869,788 362,869,788 Revenue estimators' revision (39,469,788) (39,469,788)

Changes to the Adopted Estimates 15,376,315 15,376,315 Subtotal 362,869,788 338,776,315 (24,093,473)

Other Sources Gas Tax Transfers 4,685,000 4,685,000 Revenue estimators' revision Other Miscellaneous 140,279,158 140,279,158 Rev Estimators' revision-Miscellaneous 5,620,842 5,620,842 Changes to the Adopted Estimates 35,294,223 35,294,223 Lottery 339,700,000 339,700,000 Revenue Estimators' revision-Lottery 9,800,000 9,800,000 Unclaimed Property 14,600,000 14,600,000 Revenue Estimators' revision-Unclaimed 1,400,000 1,400,000 Subtotal 499,264,158 551,379,223 52,115,065 Total Revenues $ 3,472,993,832 $ 3,440,322,385 $ (32,671,447)

Budget Stabilization (69,463,363) (68,806,448) 656,915 Total Available $ 3,403,704,792 $ 3,375,156,301 $ (28,548,491)

Actual/Enacted Expenditures $ 3,403,638,116 $ 3,403,638,116 $

Reappropriations 3,640,364 .3,640,364 Supplemental - repay Transfer(RICAP' 19,423,025 19,423,025 Supplemental Appropriations (52,288,190) (52,288,190)

Total Expenditures $ 3,403,638,116 $ 3,374,413,315 $ (29,224,801)

Free Surplus $ 66,676 $ 742,986 $ 676,310 Reappropriations Total Ending Balances $ 66,676 $ 742,986 $ 676,310 Budget Reserve and Cash Stabilization Account 104,195,045 $ 103,209,672 (985,373)

(')Reflects the FY 2008 budget adopted by the General Assembly in June 2007.

(2)Reflects the FY 2008 budget enacted by the General Assembly (including known proposed audit adjustments to the FY 2007 surplus), as modified by the changes to revenues estimated by the November 2007 Revenue Estimating Conference, and changes to enacted expenditures as proposed by the Governor. Assumes an estimated $19,423,025 is drawn from the Budget Reserve Fund for the FY2007 closing, and that a repayment of $19,423,025 is appropriated in FY2008. Statutory reappropriations($3,640,364) are provided. When the final closing is known, an exact amount will be transferred such that the State will have a balanced FY2007 budget.

(3) The difference between the enacted and projected results for FY 2008, as reflected in the second and third columns above.

B-I

Changes to FY 2008 Enacted General Revenue. Expenditures Redistribution Change FY 2008 Reappro- Of Enacted Projected Projected From Enacted priations Personnel Savings Changes Expenditures Enacted General Government Administration $505,284,261 $9,159,833 $10,420,294 $524,864,388 $19,580,127 Business Regulation 11,475,916 ($368,948) (210,539) 10,896,429 (579,487)

Labor and Training 6,583,162 ($147,207) (58,768) 6,377,187 (205,975)

Department of Revenue 38,575,957 (2,677,978) (732,135) 35,165,844 (3,410,113)

Legislature 34,440,361 2,532,016 (856,174) 36,116,203 1,675,842 Lieutenant Governor . 925,112 (56,024)l (29,272) 839,816 (85,296)

Secretary of State, 5,036,136 (94,983)' 101,536 5,042,689 6,553 General Treasurer 2,908,550 (84,802) (49,981) 2,773,767 (134,783)

Board of Elections 1,437,214 (146,481) (786) 1,289,947 (147,267)

Rhode Island Ethics Commission 1,410,451 (44,913) (35,078) 1,330,460 (79,991)

Governor's Office 4,921,696 (147,968) 4,773,728 (147,968)

Commission for Human Rights 984,197 (32,520) 951,677 (32,520)

Public Utilities Commission 661,246 (4,460) (9,158) 647,628 (13,618)

Rhode Island Commission on Women 108.-203 (49) (3.824) 104.330 (3,873)

Subtotal - General Government 614,752,4621...2,532,016 ý 5,533,988 8,355,627 631,174,093 16,421,631 Human Services Office of Health & Human Services 307,152 (57,965) 137,989 387,176 80,024 Children, Youth, and Families 149,249,856 (2,447,599) 5,154,258 151,956,515 2,706,659 Elderly Affairs 18,604;205 (66,640) (1,152,116) 17,385,449 '(1,218,756)

Health 34,487,126 (232,240) (1,934,274) 32,320,612 (2,166,514)

Human Services 811,185,218 (2,264,242) (12,989,315) 795,931,661 (15,253,557)

Mental Health, Retardation, & Hosp. 243,459,229 (5,285,047) (3,976,848) 234,197,334 (9,261;895)

Office of the Child Advocate 520,757 (36,188) 484,569 (36,188)

Comm. on Deaf &.Hard of Hearing 370,154 (25,627) (17,932) 326,595 (43,559)

RI Developmental Disabilities Council Governor's Commission on Disabilities 535,775 (168,431) (16,718) 350,626 (185,149)

Office of the Mental Health Advocate 424,343 (5,426) (13,371) 405,546 (18,797)

Subtotal - Human Services 1,259,143,815 (10,553,217) (14,844,515) 1,233,746,083 (25,397,732)

Education Elementary and Secondary 909,429,659 (309,160) (2,728,480) 906,392,019 (3,037,640)

Higher Education - Board of Governors 196,068,047 (6,084,999) 189,983,048 (6,084,999)

RI Council on the Arts : 2,777,644 (78,650) 2,698,994 (78,650)

RI Atomic Energy Commission 819,869 -. (21,042) 798,827 (21,042)

Higher Education Assistance Authority. 11,019,684 (41,561) (758,331) 10,219,792 (799,892)

Historical Preservation & HeritageComn 1,577,792 (46,074) (44,406) 1,487,312 (90,480)

Public Telecommunications Authority 1,363,654 (47,458) 1,316,196 (47,458)

Subtotal - Education 1,123,056,349 (396,795) (9,763,366) 1,112,896,188 (10,160,161)

Public Safety Attorney General $21,335,305 (78,693) (630,183) 20,626,429 (708,876)

Corrections 187,954,532 (155,629) (2,797,808) 185,001,095 (2,953,437)

Judicial 84,964,917 1,108,348 (407,617) (2,865,732) 82,799,916 (2,165,001)

Military Staff 2,563 ;864 (28,016) (37,853) 2,497,995 (65,869)

E-911 4,733,109 146,258 4,879.367 146,258 Fire Safety Code Bd. of Appeal 303,435 (2,875) (10,730) 289,830 (13,605)

Fire Safety & Training Academy 2,671,285 (229,217) (87,370) 2,354,698 (316,587)

Rhode Island Justice Commission 160,815 71,038 231,853 71,038 Municipal Police Training Academy 429,252 (1,438) 427,814 (1,438)

State Police 52,058,385 (582,216) (787,248) 50,688,921 (1,369,464)

Office Of Public Defender 9,324,951 (102,511) (206,484) 9,015,956 (308,995)

Subtotal - Public Safety 366,499,850 1,108,348 (1,586,774) (7,207,550) 358,813,874 (7,685,976)

Environmental Management 36,413,000 (2,199,538) 34,213,462 (2,199,538)

Coastal Resources Management Council 1,879,559 61,086 1,940,645 61,086 Water Resources Board 1,893,081 (212,951) (51,160) 1,628,970 (264,111)

Subtotal - Natural Resources 40,185,640 (212,951) (2,189,612) 37,783,077 (2,402,563)

Total 3,403,638,116 3,640,364 (7,215,749) (25,649,416) 3,374,413,315 (29,224,801)

B-2

Changes to FY 2008 Enacted General Revenue Expenditures Change Explantion of Variance From Uncompensated .Medical Contracts/Grants Other Enacted Leave Days (6) Savings. Provider Savings General Government Administration $19,580,127 (1,376,326) (910,461) (805,915) 22,672,829 Business Regulation (579,487) (200,015) (115,716) (17,945) (245,811)-

Labor and Training (205,975) (58,723) (39,085) (17,057) (91,110)

Department of Revenue (3,410,113) (539,014) (421,613)- (169,134) (2,280,352)

Legislature 1,675,842 (548,025) (482,709) (163,129) 2,869,705 Lieutenant Governor (85,296) (17,258) (6,801) (899) (60,338)

Secretary of State -6,553* (81,362) (52;030) (21,500) 161,445 General Treasurer (134,783) (45,015) (28;052) (10,815) (50,901)

Board of Elections (147,267) (21,162) (15,546) (6,196) (104,363)

Rhode Island Ethics Commission (79,991) (24,337) (9,303) (2,408) (43,943)

Governor's Office (147,968) (92,573) (44,261) (11,134)

Commission for Human Rights (32,520) (16,590) (15,220) (710)

Public Utilities Commission (13,618) (7,978) (2,669) (2,971)

Rhode Island Commission on Women (3,873) (2,079) (551) (293) (950)

Subtotal - General Government 16,421,631 (3,030,457)i ":(2,144,1117) (1,230,106) 22,826,211 Human Services Office of Health & Human Services 80,024 (8,237) (3,916) (125) 92,302 Children, Youth, and Families 2,706,659 (1,092,423) (716,283) (2,534,524) 7,049,889 Elderly Affairs (1,218,756) (58,373) (35,291) (328,254) (796,838)

Health (2,166,514) (429,950) (249,493) (310,090) (1,176,981)

Human. Services (15,253,557) (1,077,747) (840,526) (21,135,431) 7,800,147 Mental Health, Retardation, & Hosp. (9,261,895) (1,221,620) (1,019,514) (4,596,490) (2,424,271)

Office of the Child Advocate (36,188) (9,294) (6,536) (829) (19,529)

Comm. on Deaf & Hard of Hearing (43,559) (4,998) (4,007) (2,191) (32,363)

RI Developmental Disabilities Council Governor's Commission on Disabilities (185,149) (5,856) (3,787)' (1,928) (173,578)

Office of the Mental Health Advocate (18,797) (8,162) (5,044) (349) (5,242)

Subtotal - Human Services (25,397,732) (3,916,660) (2,884,397) (28,910,211) 10,313,536 Education Elementary and Secondary (3,037,640) (552,983). (340:581) (386,953) .(1,157,123)

Higher Education - Board of Governors (6,084,999) (2,018,705) (1,507,319) (1,158,020) (1,400,955)

RI Council on the Arts (78,650) (13,727) (8,435) (56,488)

RI Atomic Energy Commission (21,042) (14,893) (5,295) (854)

Higher Education Assistance Authority. (799,892) (11,031) (6,075) (268,139) (514,647)

Historical Preservation & Heritage Comn (90,480) (19,734) (16,539) (13,268) (40,939)

Public Telecommunications Authority (47,458) (21,444) (16,842) (1,447) (7,725)

Subtotal - Education (10,160,161) (2,652,517) (1,901,086) (1,885,169) (3,721,389)

Public Safety Attorney General (708,876) (387,865) (217,551) (52,293) (51,167)

Corrections (2,953,437) (2,264,690) (2,111,836) (787,205) 2,210,294 Judicial (2,165,001) (1,274,560) (793,713) (311,405) 214,677 Military Staff (65,869) (28,840) (21,408) (15,621)

E-911 146,258 (68,617) (59,725) (29,326) 303,926 Fire Safety Code Bd. of Appeal (13,605) (5,561) (3,620) (352) (4,072)

Fire Safety & Training Academy (316,587) (39,994) (21,971) (7,990) (246,632)

Rhode Island Justice Commission 71,038 (4,714) (3,518) 79,270 Municipal Police Training Academy (1,438) (7,689) (4,706) (1,061) 12,0i8 State Police (1,369,464) (455,697) (334,375) (71,409) (507,983)

Office Of Public Defender (308,995) (163,580) (103,725) (11,029) (30,661)

Subtotal - Public Safety (7,685,976) (4,701,807) (3,676,148) (1,287,691) 1,979,670 Environmental Management (2,199,538) (476,803) (357,058) (121,534) (1,244,143)

Coastal Resources Management Council 61,086 (35,951) (20,728) (4,024) 121,789 Water Resources Board (264,111) (15,496) (7,673) (24,984) (215,958)

Subtotal - Natural Resources (2,402,563) (528,250) (385,459) (150,542) (1,338,312)

Total (29,224,801) (14,829,691) (10,991,107) (33,463,719) 30,059,716 B-3

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings General Government Administration Central Management 1,549,780 Restore Executive Director/Transfer from DOIT 88,419 Uncompensated Leave Days(6) (32,709)

Health Benefits Holiday (14,834)

Operating (361)'

Capital 1,993 Statewide Savings - Operating/Contracts/Grants (1,557) 1,549,780 40,951 1,590,731 (40,951)

Legal Services 1,836,817 Personnel - Transfer 3.0 FTE from DOT 480,182 Outside Legal Services (Labor Negotiations) . 164,054 Uncompensated Leave Days(6) (44,650)

Health Benefits Holiday (22,704)

Operating (3,757)

Capital 5,286 Statewide Savings - Operating/Contracts/Grants (8,456) 1,836,817 569,955 2,406,772 (569,955)

Accounts & Control 3,252,968 Personnel - Add 8.0 FTE for AP Centralization 334,322 Uncompensated Leave Days(6) (69,146)

Health Benefits Holiday (50,790)

Operating 31,723 Grants 208 Statewide Savings - Operating/Contracts/Grants (1,270) 3,252,968 245,047 3,498,015 (245,047).

Budgeting 2,090,800 FY 2008 Personnel Savings Distribution (119,457)

Actuarial Services - Retiree Health 77,000 Contract Services (Econometric, Appraisal, Interpreter) 3,375 Uncompensated Leave Days(6) (38,660)

Health Benefits Holiday (16,520)

Operating 790 Capital Statewide Savings - Operating/Contracts/Grants (5,249) 2,090,800 (119,457) 20,736 1,992,079 98,721 Purchasing 2,398,789 FY 2008 Personnel Savings Distribution (123,418)

Contract Services (25,693)

Uncompensated Leave Days(6) (42,122)

Health Benefits Holiday (33,678)

Operating 8,775 Capital 1,061 Statewide Savings - Operating/Contracts/Grants (2,378) 2,398,789 (123,418) (94,035) 2,181,336 217,453 Auditing 1,792,239 FY 2008 Personnel Savings Distribution (39,807)

Uncompensated Leave Days(6) (34,774)

B-4

Changes to FY 2008 Enacted Agency, General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Health Benefits Holiday (14,698)

Operating (23,056)

Capital 10,056 Statewide Savings - Operating/Contracts/Grants (2,107) 14792,239 (39,807) (64,579) 1,687,853 104,386 Human Resources 10,067,133 Personnel .. 354,686 Hewitt Contract 76,079 Uncompensated Leave Days(6) (201,045)

Health Benefits Holiday (119,550)

Operating (9,837)

Capital .11,094 Statewide Savings - Operating/Contracts/Grants (14,041) 10,067,133 354,686 (257,300) 10,164,519 (97,386)

Personnel Appeal Board 96,793 FY 2008 Personnel Savings Distribution (680)

Uncompensated Leave Days(6) (690)

Health Benefits Holiday (276)

Legal Services 15,600 Statewide Savings - Operating/Contracts/Grants (1,134) 96,793 (680) 13,500 109,613 (12,820)

Facilities Management 36,055,887 Personnel 296,764 Transfer 3.0 FTE back to DCYF (252,615)

Uncompensated Leave Days(6) (161,842)

Health Benefits Holiday (157,016)

Contract Services 337,728 Operating (1,751,173)

Energy/Utility Costs 3,006,624 Grants (1,366)

Capital (796,635)

Statewide Savings - Operating/Contracts/Grants (229,895) 36,055,887 290,574 36,346,461 (290,574)

Capital Projects and Property Management 3,748,880 FY 2008 Personnel Savings Distribution (36,206)

Uncompensated Leave Days(6) (65,822)

Health Benefits Holiday (36,496)

Operating (281,457)

Capital 5,286 Statewide Savings - Operating/Contracts/Grants (5,273) 3,748,880 (36,206) (383,762) 3,328,912 419,968 Information Technology 17,650,147 Personnel 1,794,707 Transfer 2.0 FTE back to DEM (315,908)

Transfer 1.0 FTE from Governor's Office 129,620 Uncompensated Leave Days(6) (263,517)

Health Benefits Holiday (145,075)

Contract Services 482,053 Operating 998,135 Capital (72,509)

B-5

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings RIFANS (773,700)

Grants (453)

Statewide Savings- Operating/Contracts/Grants (189,038) 17,650,147 1,644,315 19,294,462 (1,644,315)

Library and Information Services 1,100,791 FY 2008 Personnel Savings Distribution (92,857)

Uncompensated Leave Days(6) (18,744)

Health Benefits Holiday (8,408)

Operating 4,836 Statewide Savings - Operating/Contracts/Grants (2,852) 1,100,791 (92,857) (25,168) 982,766 118,025 Statewide Planning 3,i92,553 Personnel 34,631 Uncompensated Leave Days(6) (32,558)

Health Benefits Holiday (18,655)

Operating 1,804 Capital 3,989 Statewide Savings- Operating/Contracts/Grants (60,323) 3,792,553 34,631 (105,743) 3,721,441 71,112 Security Services 19,932,620 Personnel 77,507 Overtime 250,000 Uncompensated Leave Days(6) (362,314)

Health Benefits Holiday (266,692)

Contractual Stipends 67,000 Contract Services (6,600)

Operating & Capital Expenses (1,034)

Statewide Savings - Operating/Contracts/Grants (22,545) 19,932,620 77,507 (342,185) 19,667,942 264,678 Energy Resources 2,236,989 Energy Resources Personnel (3,640)

Uncompensated Leave Days(6) (7,733)

Health Benefits Holiday (5,069)

Energy Resources Grants (National Grid) 59,257 Statewide Savings - Operating/Contracts/Grants (51,435) 2,236,989 (8,620) 2,228,369 8,620 General 280,626,459 Contingency Fund 387,431 Airport Impact Aid (3,766)

Channel 36 Back Pay Settlement (Torts) 8,112 Teachers Retiree Health (1,442,024)

Dunkin Donuts Center Renovation (delay to 09) (4,100,000)

Transfer to RICAP (Due to 07 Withdrawal from Budget Reserve) 19,423,025 General Revenue Sharing (10,000,000)

Motor Vehicle Excise Tax Phase - Cut to 98% (183,500)

Statewide Savings - Operating/Contracts/Grants Contingency Fund (10,461)

Economic Development Corporation (39,437)

Research Alliance (EPScore) (40,500)

B-6

Changes to FY 2008 Enacted Agency General RevenueExpenditures' "

FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected, Projected Projected o0 Enacted Changes Expenditures Surplus/(Delicit)

Personnel Savings Slater Centers of Excellence (81,000)

Economic Policy Council (8,100)

Torts (11,019)

DOA Miscellaneous Legislative Grants (17,845) 280,626,459 3,880,916 284,507,375 (3,880,916)

Debt Service Payments 126,160,050 Tax Anticipation Notes - $220 million (net cost) 1,941,675 General Obligation Bonds 2,853,251 Certificates of Participation 483,207 Refunding Bond Authority (PBA) 272,851 Fidelity Job Rent Credits (490,665)

Masonic Temple Historic Tax Credits (42,317)

Neighborhood Opportunities Program (RIHMFC) (22,310) 126,160,050 - 4,995,692 131,155,742 (4,995,692)

Undistributed Personnel Savings (9,105,434) 9,105,434 (9,105,434) 9,105,434 - - (9,105,434) 505,284,261 9,159,833 10,420,294 524,864,388 (19,580,127)

Business Regulation Central Management 1,283,012 FY 2008 Personnel Savings Distribution (97,597)

Personnel 111,458 Uncompensated Leave Days(6) (21,408)

Health Benefits Holiday (11,813)

Purchased Services 813 Operating 14,951 Statewide Savings- Operating/Contracts/Grants (1,314) 1,283,012 (97,597) 92,687 1,278,102 4,910 Insurance Regulation 5,184,809 FY 2008 Personnel Savings Distribution (48,781)

Personnel 15,365 Uncompensated Leave Days(6) (95,047)

Health Benefits Holiday (48,492)

Purchased Services 1,219 Operating 229 Grants 25,000 Statewide Savings- Operating/Contracts/Grants (10,451) 5,184,809 (48,781) (112,177) 5,023,851 160,958 Board of Accountancy 155,449 Personnel (559)

Uncompensated Leave Days(6) (2,680)

Health Benefits Holiday (2,096)

Purchased Services 3,797 Operating (2,001)

Statewide Savings- Operating/Contracts/Grants (551) 155,449 (4,090) 151,359 4,090 Banking and Securities 3,083,499 Personnel (35,801)

B-7

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution- Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Uncompensated Leave Days(6) (56,112)

Health Benefits Holiday (33,621)

Purchased Services 1,576 Operating .'(635)

Statewide Savings- Operating/Contracts/Grants (1,392) 3,083,499 (125,985) 2,957,514 125,985 Commercial Licensing, Racing & Athletics 1,362,961 FY 2008 Personnel Savings Distribution (207,619)

Personnel (49,645)

Uncompensated Leave Days(6) (19,008)

Health Benefits Holiday (13,180)

Purchased Services 1,473 Operating 20,243 Statewide Savings- Operating/Contracts/Grants (1,862) 1,362,961 (207,619) (61,979) 1,093,363 269,598 Board of Design Professionals 406,186 FY 2008 Personnel Savings Distribution (14,951)

Personnel 15,070 Uncompensated Leave Days(6) (5,760)

Health Benefits Holiday (6,514)

Operating . .: 584 Statewide Savings- Operating/Contracts/Grants (2,375) 406,186 (14,951) 1,005 392,240 13,946 Total 11,475,916 (368,948) (210,539) 10,896,429 579,487 Labor and Training Central Management 195,297 FY 2008 Personnel Savings Distribution (37,207)

Agency turnover 22,335 Uncompensated Leave Days(6) (2,844)

Health Benefits Holiday (1,696)

Purchased Services 10,485 Operating (9,946)

Grants and Benefits 7,080 Statewide Savings- Operating/Contracts/Grants (920) 195,297 (37,207) 24,494 182,584 12,713 Workforce Development 2,500 Uncompensated Leave Days(6) (68)

Health Benefits Holiday (45)

Biotechnology Tax Credit 3,994 Statewide Savings- Operating/Contracts/Grants (85) 2,500 3,796 6,296 (3,796)

Workforce Regulation and Safety 2,736,797 FY 2008 Personnel Savings Distribution (110,000)

Agency turnover (86,889)

Uncompensated Leave Days(6) (46,283)

Health Benefits Holiday (31,511)

Purchased Services 12,972 Operating 11,102 Grants and Benefits 18 Statewide Savings- Operating/Contracts/Grants (6,597)

B-8

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings 2,736,797 (110,000) (147,188) 2,479,609 257,188 Income Support 3,175,354 Police and Fire Pension Benefits . 348,021 Agency turnover (3,488)

Uncompensated Leave Days(6) (1,738)

Health Benefits Holiday (1,628)

Purchased Services 70 Operating (2,814)

Tardy and Interest Transfer (225,059)

Statewide Savings- Operating/Contracts/Grants (7,762) 3,175,354 105,602 3,280,956 (105,602)

Labor Relations Board 473,214 Agency turnover (32,129)

Uncompensated Leave Days(6) (7,790)

Health Benefits Holiday .(4,205)

Purchased Services 1,755 Operating (1,485)

Grants and Benefits 75 Statewide Savings- Operating/Contracts/Grants (1,693) 473,214 (45,472) 427,742 45,472 Total 6,583,162 (147,207) (58,768) 6,377,187 205,975 Legislature Legislature 34,440,361 Personnel Savings/Turnover (348,891)

Consultants (287,400)

Operating (81,620)

Legislative Grants 1,000,000 Capital Equipment 55,600 Statewide Savings- Operating/Contracts/Grants (163,129)

Health Benefits Holiday (482,709)

Uncompensated Leave Days(6) (548,025)

Total 34,440,361 (856,174) 36,116,203 (1,675,842)

Office of the Lieutenant Governor Lt. Governor's Office - General 925,112 FY 2008 Personnel Savings Distribution (56,024)

Operating (4,314)

Statewide Savings-. Operating/Contracts/Grants (899)

Health Benefits Holiday (6,801)

Uncompensated Leave Days(6) (17,258)

Total 925,112 (56,024) (29,272) 839,816 85,296 Secretary of State Administration 1,685,414 Unachieved Turnover 36,159 Health Benefits Holiday (14,887)

Uncompensated Leave Days(6) (33,340)

Statewide Savings- Operating/Contracts/Grants (1,714)

Consultants (30,000)

Operating 11,258 Capital Equipment 5,573 1,685,414 (26,951) 1,658,463 26,951 B-9

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Corporations 1,798,880 Unachieved Turnover 10,786 Health Benefits Holiday (25,329)

Uncompensated Leave Days(6) (27,553)

Statewide Savings- Operating/Contracts/Grants (6,425)

Operating/E-Government Initiative 89,629 Capital Equipment 13,600 1,798,880 54,708 1,853,588 (54,708)

State Archives 88,909 FY 2008 Personnel Savings Distribution (88,572)

Purchased Services (337)

.'88,909 (88,572) (337) 88,909 Elections 583;210 FY 2008 Personnel Savings Distribution (6,411)

Health Benefits Holiday (5,832)

Uncompensated Leave Days(6) (9,100)

Statewide Savings- Operating/Contracts/Grants (2,779)

Purchased Services 2,000 Operating 46,428 Capital Equipment 3,830 583,210 (6,411) 34,547 611,346 (28,136)

State Library 689,592 Unachieved Turnover 752 Health Benefits Holiday (5,431)

Uncompensated Leave Days(6) (6,933)

Statewide Savings- Operating/Contracts/Grants (9,248)

Operating 26,341 Capital Equipment (19,790) 689,592 (14,309) 675,283 14,309 Office of Public Information 190,131 Unachieved Turnover 30,896 Health Benefits Holiday (551)

Uncompensated Leave Days(6) (4,436)

Statewide Savings- Operating/Contracts/Grants (1,334)

Purchased Services (1,436)

Operating 27,436 Capital Equipment 3,303 190,131 53,878 244,009 (53,878)

Total 5,036,136 (94,983) 101,536 5,042,689 (6,553)

Office of the General Treasurer Treasury 2,589,641 FY 2008 Personnel Savings Distribution (84,802)

Operating 20,631 Health Benefits Holiday (25,118)

Uncompensated Leave Days(6) (39,549)

Computer Equipment and Security Enhancemnt 13,804 Statewide Savings- Operating/Contracts/Grants (9,930) 2,589,641 (84,802) (40,162) 2464677 124,964 B-10

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted . Changes Expenditures Surplus/(Deficit)

Personnel Savings RI Refunding Bond Authority 40,349 Unachieved Turnover 1,269 Legal Services (1,500)

Health Benefits Holiday (252)

Uncompensated Leave Days(6) (463)

Trustee Management Fees (2,500)

Statewide Savings- Operating/Contracts/Grants - (407) 40,349 0 (3,853) 36,496 3,853 Crime Victim Compensation Program 278,560 FY 2008 Personnel Savings Distribution Unachieved Turnover 11,491 Stenographic Services 145 Operating (10,507)

Health Benefits Holiday (2,682)

Uncompensated Leave Days(6) (5,003)

Computer Equipment 1,068 Statewide Savings- Operating/Contracts/Grants (478) 278,560 (5,966) 272,594 5,966 Total 2,908,550 (84,802) (49,981) 2,773,767 134,783 Board of Elections Board Of Elections 1,437,214 FY 2008 Personnel Savings Distribution (146,481)

Health Benefits Holiday (15,546)

Uncompensated Leave Days(6) (21,162)

Statewide Savings- Operating/Contracts/Grants (6,196)

Board Member Turnover Savings (15,071)

Reallocation of Clerk/Machine Demonstrator position to HAVA (56,856)

Temporary Election Staff & Nursing Home Supervisors 5,383 Adjust Reappropriation Amount (63)

Matching Public Funds Allocation for Auditing Services 51,063 Contract Services 17,760 Presidential Election/Operating Costs 23,226 Waste Disposal of Asbestos Filing Cabinets 10,000 Capital 6,676 Total 1,437,214 (146,481) (786) 1,289,947 147,267 R I Ethics Commissions RI Ethics Commission 1,410,451 FY 2008 Personnel Savings Distribution (44,913)

Health Benefits Holiday (9,303)

Uncompensated Leave Days(6) (24,337)

Operating 980 Capital Equipment (10)

Statewide Savings- Operating/Contracts/Grants (2,408)

Total 1,410,451 (44,913) (35,078) 1,330,460 79,991 Office of the Governor Office Of Governor 4,921,696 Personnel 138,063 Centralization Transfer to DOA (73,665)

Contract Services (9,000)

Operating (55,398)

B-I1

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation. Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings*.

Statewide Savings- Operating/Contracts/Grants (11,134)

Health Benefits Holiday (44,261)

Uncompensated Leave Days(6) (92,573)

Total 4,921,696 - (147,968) 4,773,728 147,968 Commission for Human Rights 984,197 Payroll Current Service Adjustment (5,427)

Contract Services Rebased (10,000)

Health Benefits Holiday - Statewide (15,220)

Uncompensated Leave Days(6) - Statewide (16,590)

Statewide Savings- Operating/Contracts/Grants (710)

Operating - Recouped Federal Offsets 15,427 Total 984,197 (32,520) 951,677 32,520 Public Utilities Commission Public Utilities Commission 661,246 FY 2008 Personnel Savings Distribution (4,460)

Payroll Turnover Savings (8,421)

Contract Services (824)

Health Benefits Holiday - Statewide (2,669)

Uncompensated Leave Days(6) - Statewide (7,978)

Statewide Savings- Operating/Contracts/Grants (2,971)

Other Operating Supplies and Expense 13,705 Total 661,246 (4,460) (9,158) 647,628 13,618 Rhode Island Commission on Women Rhode Island Commission on Women 108,203 FY 2008 Personnel Savings Distribution (49)

Operating (901)

Uncompensated Leave Days(6) (2:079)

Health Benefits Holiday (551)

Statewide Savings- Operating/Contracts/Grants (293)

Total 108,203 (49) (3,824) 104,330 3,873 Department of Revenue Director of Revenue 751,500 FY 2008 Personnel Savings Distribution (305,490)

Uncompensated Leave Days(6) (8,376)

Health Benefits Holiday (5,610)

Statewide Savings- Operating/Contracts/Grants (810) 751,500 (305,490) (14,796) 431,214 320,286 Office of Revenue Analyis 750,003 FY 2008 Personnel Savings Distribution Employees not starting until April 1st (305,720)

Uncompensated Leave Days(6) (2,841)

Health Benefits Holiday (2,246)

Operating- Data tools (Computers,soft) (75,000)

Statewide Savings- Operating/Contracts/Grants (6,075) 750,003 (380,720) (11,162) 358,121 391,882 Office of Property Valuation 849,819 FY 2008 Personnel Savings Distribution (40,921)

Uncompensated Leave Days(6) (15,163)

Health Benefits Holiday (7,835)

Operating Savings (5,331)

B-12

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriztion . Redistribution Projected - *Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Contract - Tax equalization study 10,000 Statewide Savings- Operating/Contracts/Grants (2,046) 849,819 (40,921) (20,375) 788,523 61,296 Taxation 17,820,994 FY 2008 Personnel Savings Distribution (1,549,486)

Uncompensated Leave Days(6) -- (273,593)

Health Benefits Holiday il- (195,429)

Contract - Brinks/Bank of America 46,100 Operating - Various Items 216,300 Capital - Computer upgrades 28,980 Statewide Savings- Operating/Contracts/Grants (56,578) 17,820,994 (1,549,486) (234,220) 16,037,288 1,783,706 Registry 18,403,641 FY 2008 Personnel Savings Distribution (401,361)

Uncompensated Leave Days(6) (239,041)

Health Benefits Holiday (210,493)

Contract 37,286 Operating 64,291 Statewide Savings- Operating/Contracts/Grants (103,625) 18,403,641 (401,361) (451,582) 17,550,698 852,943 Total 38,575,957 (2,677,978) (732,135) 35,165,844 3,410,113 Sub-Total General Government 614,752,462 5,533,988 8,355,627 631,174,093 (16,421,631)

Human Services Office of Health and Human Services Office of Health and Human Services 307,152 Uncompensated Leave Days(6) (8,237)

Health Benefits Holiday (3,916)

Statewide Savings- Operating/Contracts/Grants (125)

Achieved Vacancy Savings (57,965)

Operating 2,200 Transfer FTE from MHRH 148,067 307,152 (57,965) 137,989 387,176 (80,024)

Children, Youth, and Families Central Management 5,903,045 FY 2008 Personnel Savings Distribution (97,196)

Contracted Professional Services 74,732 Operating (16,928)

Uncompensated Leave Days(6) (86,581)

Health Benefits Holiday (52,358)

Buy Rite 1,216,402 Statewide Savings- Operating/Contracts/Grants (53,420) 5,903,045 (97,196) 1,081,847 6,887,696 (984,651)

Children's Behavioral Health 18,805,572 FY 2008 Personnel Savings Distribution (154,307)

Contracted Professional Services 22,385 B-13

Changes to FY 2008 Enacted Agency .GerLeral Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation. Redistribution Projected Projected Projected

'Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Operating 40,856 Grants and Benefits- Shift to Child Welfare (2,501 ;780)

Transfer from DHS/Psych. Hospital Initiative 600,000 Capital Purchases and Equipment (14)

Uncompensated Leave Days(6) (30,842)

Health Benefits Holiday (10,179).

Statewide Savings- Operating/Contracts/Grants (411,177) 18,805,572 (154,307) (2,297,751) 16,353,514 2,452,058 Juvenile Corrections 29,680,225 FY 2008 Personnel Savings Distribution (576,310)

Holiday Pay 154,990 Juvenile Education Program- Teachers/17 and older 1,332,753 Overtime- Shift from Grants and Benefits 2,040,684 Contracted Professional Services . 26,867 Operating (18,003)

Grants and Benefits- Shift to Overtime (1,148,895)

Maintenance from Administration (3.0 FTE) 252,615 Uncompensated Leave Days(6) (446,489)

Health Benefits Holiday (322,743)

Statewide Savings- Operating/Contracts/Grants (170,309) 29,680,225 (576,310) 1,701,470 30,805,385 (1,125,160)

Child Welfare 94,66i,014 FY 2008 Personnel Savings Distribution (1,619,786)

Overtime (25,590)

Contracted Professional Services (74,888)

Operating 113,736 18 and Older Population 7,306,033 Grants and Benefits- Shift from Children's Behavioral Health 1,317,935 Uncompensated Leave Days(6) (528,511)

Health Benefits Holiday (324,003)

Residential Contract Reduction Savings (1,216,402)

Statewide Savings- Operating/Contracts/Grants (1,894,218) 94,661,014 (1,619,786) 4,674,092 97,715,320 (3,054,306)

Higher Education Opportunity Incentive Grant 200,000 Statewide Savings- Operating/Contracts/Grants (5,400)

Total 200,000 (5,400) 194,600 5,400 Total 149,249,856 (2,447,599) 5,154,258 151,956,515 (2,706,659)

Elderly Affairs Elderly Affairs 18,604,205 FY 2008 Personnel Savings Distribution (66,640)

Interdepartmental FTE Transfer (from MHRH) 119,371 Program Staffing Reduction (428,700)

Unachieved Buy- Rite Value-based Purchasing Savings 58,647 RIPAE - Benefit Manager 44,924 Contracts - IT System Support, etc 15,725 Health Benefits Holiday - Statewide (27,497)

Uncompensated Leave Days(6) - Statewide (47,519)

Statewide Savings- Operating/Contracts/Grants (328,254)

Other Operating & Capital Outlay 6,765 Unobligated Customer Information Service Grantees (32,000)

"RIDE" transportation program direct service costs at FY 2007 levels 423,000 B-14

Changes to FY 2008 Enacted. Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected. Projected Projected o0 Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings.

RIPAE Drug benefit cost shift to available restricted receipts resources (956,578)

Total 18,604,205, (66,640) (1,152,116) 17,385,449 1,218,756 Health Central Management 4,901,329 Payroll - Gov-mandated workforce reduction and turnover additional savings (196,755)

Vital Records "Back Data Entry Project" Contracts . .. (169,111)

Centers for Disease Control (CDC) Disallowed Charges Reimbursement 369,892 Vital Records Software License Fees and Maintenance .. 45,200 Other Operating Supplies and Expense 37,660 Health Benefits Holiday - Statewide (26,649)

Uncompensated Leave Days(6) - Statewide (46,190)

Records Center Charges - Statewide (2,844)

Statewide Savings- Operating/Contracts/Grants (60,6.13)

Unachieved Buy Rite Value-based Purchasing Savings 47,197 Measuring Quality/Hospital Care - Payroll Savings (90,000)

Worksite Wellness Grantee Services (20,000)

Total 4,901,329 (112,213) 4,789,116- ,.6 112,213 State Medical Examiner 2,156,986 Payroll - Staff overtime and holiday pay 33,000 Payroll - Gov-mandated workforce reduction and turnover additional savings (33,548)

Coittracts - Health and other allied professionals 23,000 Other operating supplies and expense 36,684 Health Benefits Holiday - Statewide (17,882)

Uncompensated Leave Days(6) - Statewide (38,090)

Records Center Charges - Statewide (3,501)

Statewide Savings- Operating/Contracts/Grants (7,878)

Motor Vehicle Purchase Savings (15,000)

Total 2,156,986 . (23,215) 2,133,771 23,215 Family Health 2,588,535 Payroll - Gov-mandated workforce reduction and turnover additional savings (85,000)

Other operating supplies and expense (1,472)

Health Benefits Holiday - Statewide (9,942)

Uncompensated Leave Days(6) - Statewide (18,915)

Statewide Savings- Operating/Contracts/Grants (43,886)

Grantee Services - Children with Special Health Care Needs & Family Health 46,740 Total 2,588,535 (112,475) 2,47.6,060 112,475 Health Services Regulation 6,522,612 Payroll - Current Service Adjustment, including inter-program allocations 25,329 Contracts - Legal, temporary and clerical (28,011)

Health Benefits Holiday - Statewide (63,999)

Uncompensated Leave Days(6) - Statewide (113,532)

Records Center Charges - Statewide (7,906)

Statewide Savings- Operating/Contracts/Grants (26,596)

License 2000 Software Fees and Maintenance 73,500 Other Operating Supplies and Expense 21,596 Total 6,522,612 (119,619) 6,402,993 119,619 Environmental Health 3,999,516 Payroll - Gov-mandated workforce reduction and turnover additional savings (45,376)

Information technology service contract - Food Protection (14,712)

Health Benefits Holiday - Statewide (52,962)

Uncompensated Leave Days(6) - Statewide (73,288)

Records Center Charges - Statewide (5,745)

Statewide Savings- Operating/Contracts/Grants (4,698)

Net Other operating Supplies & Expense (25,646)

B-15

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Total 3,999,516 (222,427) 3,777,089 222,427 Health Laboratories 8,170,513 Payroll - Current Service Adjustment, including inter-program allocations 22,505 Other temporary and clerical services 18,540 Unused Chapin Building Leaseback Withdrawal (1,283,560)

Health Benefits Holiday - Statewide (61,231)

Uncompensated Leave Days(6) - Statewide (108,882)

Statewide Savings- Operating/Contracts/Grants (42,046)

Records Center Charges - Statewide (8,138)

Net other operating and medical supplies and expense 72,328 Total 8,170,513 (1,390,484) 6,780,029 1,390,484 Disease Prevention and Control 6,147,635 FY 2008 Personnel Savings Distribution (232,240)

Payroll - Current Service Adjustment, including inter-program allocations 323,120 Health Benefits Holiday - Statewide (16,828)

Uncompensated Leave Days(6) - Statewide (31,053)

Statewide Savings- Operating/Contracts/Grants (124,373)

Grantee Service Contracts - Tobacco control program (104,707)

Total 6,147,635 (232,240) 46,159 5,961,554 186,081 Total 34,487,126 (232,240) (1,934,274) 32,320,612 2,166,514 Human Services Central Management 9,113,855-Personnel Current Services 1,782 Reallocate Buy-Rite to Health Care Quality and Individual and Family Services 350,000 Unachieved Buy Rite Savings 1,146,880 Uncompensated Leave Days(6) (50,331)

Statewide Savings- Operating/Contracts/Grants (274,908)

Health Benefits Holiday 575 Head Start (25,830)

Increased Grant Award from RI Housing 300,000 Increased offsets to Indirect Cost Recoveries (248,682)

Contracts and Operating 10,885 9,113,855 1,210,371 10,324,226 (1,210,371)

Child Support Enforcement 3,830,853 FY 2008 Personnel Savings Distribution (208,781)

Reallocate centralization position to DOA (34,856)

Uncompensated Leave Days(6) (46,810)

Statewide Savings- Operating/Contracts/Grants (17,760)

Health Benefits Holiday (34,961)

Reallocate contractual costs to dedicated federal incentive receipts (306,000)

Other Operating and Contracts 36,240 3,830,853 (208,781) (404,147) 3,217,925 612,928 Individual and Family Support 24,754,511 FY 2008 Personnel Savings Distribution (511,365)

Reallocate centralization position to DOA (160,130)

Uncompensated Leave Days(6) (434,598)

Statewide Savings- Operating/Contracts/Grants (201,054)

Health Benefits Holiday (339,851)

Reallocate Buy-Rite from Central Management (100,000)

Contract Services 239,564 Reallocation of operating codes from Health Care Quality 119,387 B-16

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation - Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Reallocate Contracts to Food Stamp Bonus (600,000)

Other Operating, Grants and Capital (129,557) 24,754,511 (511,365) (1,606,239) 22,636,907 2,117,604 Veterans' Affairs 17,109,472 FY 2008 Personnel Savings Distribution (213,277)

Overtime 484,312 Medical Contracts 552,953 Reverse Dietary Contract (1,492,272)

Uncompensated Leave Days(6) (352,244)

Statewide Savings- Operating/Contracts/Grants (110,979)

Health Benefits Holiday (326,342)

Reverse Dietary Food Savings 740,500 Reverse Dietary Staff Reductions 1,519,822 Reduced federal per diem reimbursements 115,373 Veterans' Home Food 47,500.

Other Operating (6,006) 17,109,472 (213,277) 1,172,617 18,068,812 (959,340)

Health Care Quality, Financing and Purchasing 23,023,393 FY 2008 Personnel Savings Distribution (1,330,819)

IT Projects 475,000 Reallocation of operating codes to Individual and Family Support (119,387)

Uncompensated Leave Days(6) (193,764)

Statewide Savings- Operating/Contracts/Grants (310,066)

Health Benefits Holiday (139,947)

Reallocate Buy-Rite from Central Management (250,000)

Other Contract Services (115,065)

Other Operating and Grants (27,958) 23,023;393 (1,330,819) (681,187) 21,011,387 2,012,006 Medical Benefits 677,406,914 Pharmacy- Delay in Co-pay, fee-for-service 254,624 Hospitals- abandon ER rate restructuring 482,280 No implementation, SPMI care management 808,485 Managed Care- Reduced federal S-CHIP funds 2,653,086 Managed Care- Reduced federal transportation funding 2,800,000 Managed Care- DCYF Population, Behavioral Health 3,483,310 Managed Care- DCYF Population, Contractor Revisions (968,071)

Managed Care- Revise CIS Rates and Utilization (1,306,250)

Managed Care- Terminate non-Citizen Children April 1 (666,667)

Managed Care- Restored federal S-CHIP funds (5,805,872)

Managed Care- Restored federal transportation funding (2,214,536)

Accelerate Uncompensated Care Payment to Slater Hospital 6,989,063 Other- Prior Authorization for High Cost Imaging (150,000)

Statewide Savings- Operating/Contracts/Grants (19,402,234)

Caseload Estimating Conference- Balance of Medical Benefits (1,488,699) 677,406,914 (14,531,481) 662,875,433 14,531,481 S.S.I. Program- Caseload Conference 28,455,740, November Caseload Estimating Conference (152,598) 28,455,740 (152,598) 28,303,142 152,598 Family Independence Program 23,400,404 Caseload Estimating Conference- FIP 329,500 Child Care- Delay in Partial Day Rates 385,200 Child Care- Delay in Over Age 13 Eligibility 270,000 B-17

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projecled: Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Child Care- Delay in Increased Co-payments 211,500 Child Care- Delay in Reduced Income Eligibility Limits 1,466,300 Statewide Savings- Operating/Contracts/Grants (721,571)

Caseload Conference- Balance of Child Care 661,985 23,400,404 2,602,914 26,003,318 (2,602,914)

State Funded Programs 4,090,076 Caseload Estimating Conference (253,786)

Statewide Savings- Operating/Contracts/Grants (96,859)

GPA Hardship Grants (248,920) 4,090,076 (599,565) 3,490,511 599,565 Total 811,185,218 (2,264,242) (12,989,315) 795,931,661 15,253,557 Mental Health, Retardation, & Hospitals Central Management 740,606 FY 2008 Personnel Savings Distribution (539,584)

Transfer FTE from MHRH to DEA (119,371)

Transfer FTE from MHRH to OHHS (146,798)

Payroll (50,350)

Purchased Services Operating 96,854 Capital Purchases and Equipment (63,760)

Unachieved Buy Rite Savings 2,031,495 Health Benefits Holiday (20,053)

Statewide Savings- Operating/Contracts/Grants (4,962)

Uncompensated Leave Days(6) (35,782)

Grants and Benefits (supplemental pensions) 522 740,606 (539,584) 1,687,795 1,888,817 (1,148,211)

Hosp. & Community System Support 4,238,069 FY 2008 Personnel Savings Distribution (345,170)

Turnover Savings (222,449)

Contracted Professional Services 38,626 Operating 40,045 Furniture and equipment (5,000)

Grants and Benefits (supplemental pensions) 92 Statewide Savings- Operating/Contracts/Grants (7,366)

Health Benefits Holiday (38,633)

Uncompensated Leave Days(6) (68,373)

Total ' 4,238,069 (345,170) (263,058) 3,629,841 608,228 Services. for the Developmentally Disabled 120,497,502 FY 2008 Personnel Savings Distribution DD Payroll (219,646)

Grants and Assistance (580,624)

Contracted Professional Services (9,338)

Operating 371,806 Health Benefits Holiday (279,158)

Statewide Savings- Operating/Contracts/Grants (2,734,773)

Uncompensated Leave Days(6) (320,857)

Unachieved Buy Rite Savings 1,000,000 120,497,502 (2,772,590) 117,724,912 2,772,590 Integrated Mental Health Services 43,958,899 FY 2008 Personnel Savings Distribution (108,701)

Purchased temporary services/consultants 76,954 Operating (8,656)

B-18

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July. FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings CMAP Pharmaceutical Expenditures (551,824)

Grants and Assistance (489,734)

Unachieved Buy Rite Savings 1,000,000 Statewide Savings- Operating/Contracts/Grants (1,151,505)

Health Benefits Holiday (11,906)

Uncompensated Leave Days(6) (25; 139) 43,958,899 (108,701) (1,161,810) 42,688,388 1,270,511 Hosp. & Community Rehab. Services 57,019,642 FY 2008 Personnel Savings Distribution (4,270,760)

Physicians Retroactive COLAs from FY 05 -FY 07 179,221 Other Payroll (999,509)

Contracted Medical/Other Purchased Services 122,482 Hospital Operating 894,055 Pharmacy - Contract Pharmacy Services 144,000 Contracted Security Services (Zambarano) 122,868 Contractual Food Preparation Services Priv. (1,009,625)

Unbudgeted Food Costs Related to Privatization 561,874 Payroll - Failed Dietary Privatization 2,142,033 Contractual Housekeeping Services Priv. (1,000,256)

Grants and Assistance (474,675)

Shift Pharmaceutical Costs to Restricted (1,744,093)

Payroll - Failed Housekeeping Privatization 1,809,804 Statewide Savings- Operating/Contracts/Grants (290,819)

Health Benefits Holiday (644,008)

Uncompensated Leave Days(6) (734,908) 57,019,642 (4,270,760) (921,556) 51,827,326 5,192,316 Substance Abuse 17,004,511 FY 2008 Personnel Savings Distribution (20,832)

Other Payroll (125,513)

Purchased Consultant Services 18,056 Operating 1,029 Delayed Adjudicated Offender Residential Treatmnt (416,660)

Health Benefits Holiday (25,756)

Statewide Savings- Operating/Contracts/Grants (407,065)

Uncompensated Leave Days(6) (36,561)

Treatment and Prey. Svcs Provider Payments 446,841 17,004,511 (20,832) (545,629) 16,438,050 566,461 Total 243,459,229 (5,285,047) (3,976,848) 234,197,334 9,261,895 Office of the Child Advocate 520,757 FY 2008 Personnel Savings Distribution Turnover Savings (28,533)

Purchased Services savings (2,000)

Statewide Savings- Operating/Contracts/Grants (829)

Health Benefits Holiday (6,536)

Uncompensated Leave Days(6) (9,294)

Operating/Equip costs due to Pastore Center move 11,004 Total 520,757 (36,188) 484,569 36,188 Commission on Deaf and Hard of Hearing 370,154 FY 2008 Personnel Savings Distribution (25,627)

Operating/Equipment (6,736)

Uncompensated Leave Days(6) - Statewide (4,998)

B-19

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected .Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Health Benefits Holiday - Statewide (4,007)

Statewide Savings- Operating/Contracts/Grants (2,191)

Total 370,154 (25,627) (17,932) 326,595 43,559 Governor's Commission on Disabilities 535,775 FY 2008 Personnel Savings Distribution (168,431)

Contracted Professional Services (10,291)

Operating 5,144 Uncompensated Leave Days(6) (5,856)

Health Benefits Holiday (3,787)

Statewide Savings- Operating/Contracts/Grants (1,928)

Total 535,775 (168,431) (16,718) 350,626 185,149 Office of the Mental Health Advocate 424,343 FY 2008 Personnel Savings Distribution (5,426)

Operating 184 Uncompensated Leave Days(6) (8,162)

Health Benefits Holiday (5,044)

Statewide Savings- Operating/Contracts/Grants (349)

Total 424,343 (5,426) (13,371) 405,546 18,797 Sub-Total Human Services 1,259,143,815 (10,553,217) (14,844,515) 1,233,746,083 25,397,732 Education Elementary and Secondary Education State Education Aid 679,417,316 FY 2008 Personnel Savings Distribution Group Home Aid 165,000 Charter School Aid (140,148)

Other Personnel 4,782 Interprogram Transfer- ELL position' (65,000)

Uncompensated Leave Days(6) (7,511)

Health Benefits Holiday (3,145)

Statewide Savings- Operating/Contracts/Grants (64,152) 679,417,316 (110,174) 679,307,142 110,174 School Housing Aid 52,861,510 Current Services (3,197,534) 52,861,510 (3,197,534) 49,663,976 3,197,534 Teachers' Retirement 78,071,710 State Share Adjustment 2,153,645 78,071,710 2,153,645 80,225,355 (2,153,645)

RI School for the Deaf 6,807,792 Fire Safety 6,797 Personnel (57,420)

Other Operating/Contract Services 31,998 Uncompensated Leave Days(6) (114,479)

Health Benefits Holiday (90,041)

Statewide Savings- Operating/Contracts/Grants (13,654)

B-20

Changes to FY 2008 Enacted Agency General Revenue Expenditures.

FY2008 Enacted Original July 'FY 2008 Appropriation Redistribution Projected Projected Projected

. .Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings 6,807,792 (57,420) (179,379) 6,570,993 236,799 Central Falls School District 43,795,411 Shift to Permanent School Fund . (379,189) 43,795,411 (379,189) 43,416,222 379,189 Davies Career & Technical School 14,571,572 Personnel 14,532 Operating/Equipment (97,101)

Uncompensated Leave Days(6) (246,681)

Health Benefits Holiday (157,055)

Statewide Savings-. Operating/Contracts/Grants (37,544) 14,571,572 (523,849) 14,047,723 523,849 Met. Career & Tech. School 11,487,734 11,487,734 11,487,734 Administration of the Comp. Education Strategy 22,416,614 Interprogram Transfer- ELL Position 65,000 2 Position Elimination (251,740)

RIMLE Grant (53,000)

Perkins Tuition Savings (54,737)

Other Operating 42,429 Local Aid (96,900)

Contract Services 169,200 Other Personnel (20,737)

Uncompensated Leave Days(6) (184,312)

Health Benefits Holiday (90,340)

Statewide Savings- Operating/Contracts/Grants (271,603) 22,416,614 (251,740) (492,000) 21,672,874 743,740 Total 909,429,659 (309,160) (2,728,480) 906,392,019 3,037,640 Higher Education Board of Governors/Office of Higher Educati( 8,135,640 Personnel 2,988 Uncompensated Leave Days(6) (32,865)

Health Benefits Holiday (26,924)

Purchased Services (10,923)

Operating 3,000 Capital (3,000)

Statewide Savings- Operating/Contracts/Grants (159,768) 8,135,640 (227,492) 7,908,148 227,492 University of Rhode Island 77;035,968 Personnel (1,182,175)

Uncompensated Leave Days(6) (829,928)

Health Benefits Holiday (514,274)

Purchased Services 643,621 Operating (282,456)

Grants 1,025,598 Capital (409,145)

Debt Service Adjustment 11,203,337 (765,551)

Statewide Savings- Operating/Contracts/Grants (590,684)

B-21

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation. Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings 88,239,305 (2,904,994) 85,334,311 2,904,994 Rhode Island College 45,750,547 Personnel (433,468)

Uncompensated Leave Days(6) (560,592)

Health Benefits Holiday (460,292)

Purchased Services 53,855 Operating 54,711 Grants 242,866 Capital (61,606)

RIRBA - Rhode Island 336,386 Debt Service Adjustment 2,944,957 (89,027)

Statewide Savings- Operating/Contracts/Grants , . (239,301) 49,031,890 (1,492,854) 47,539,036 1,492,854 Community College of Rhode Island 49,254,318 Personnel 235,774 Uncompensated Leave Days(6) (595,320)

Health Benefits Holiday (505,829)

Purchased Services 109,476 Operating 133,967 Grants (575,872)

Capital (67,958)

Debt Service Adjustment 1,406,894 (25,630)

Statewide Savings- Operating/Contracts/Grants (168,267) 50,661,212 (1,459,659) 49,201,553 1,459,659 Total 196,068,047 (6,084,999) 189,983,048 6,084,999 RI Council On The Arts 2,777,644 Personnel Current Services 11,235 Uncompensated Leave Days(6) (13,727)

Statewide Savings- Operating/Contracts/Grants (56,488)

Health Benefits Holiday (8,435)

Operating Current Services (11,235)

Total 2,777,644 (78,650) 2,698,994 78,650 RI Atomic Energy Commission Atomic Energy Commission 819,869 Unachieved Turnover 29,063 Uncompensated Leave Days(6) (14,893)

Health Benefits Holiday (5,295)

Operating 33,412 Research Allocation (62,475)

Statewide Savings- Operating/Contracts/Grants (854)

Total 819,869 (21,042) 798,827 21,042 RI Higher Education Assistance Authority 11,019,684 FY 2008 Personnel Savings Distribution (41,561)

Uncompensated Leave Days(6) (11,031)

Health Benefits Holiday (6,075)

Operating 26,914 Scholarships (500,000)

Statewide Savings- Operating/Contracts/Grants (268,139)

B-22

Changes to FY 2008 Enacted Agency General Revenue Expenditures. ,

FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel. Savings Total 11,019,684 (41,561) (758,331) 10,219,792 799,892 RI Historical Preservation & Heritage Commission 1,577,792 FY 2008 Personnel Savings Distribution (46,074)

Operating 5,035 Contract Services- Fire Protection 100 Uncompensated Leave Days(6) (19,734)

Health Benefits Holiday (16,539)

Statewide Savings- Operating/Contracts/Grants (13,268)

Total 1,577,792 (46,074) (44,406) 1,487,312 90,480 RI Public Telecommunications Authority 1,363,654 Insurance (7,725)

Uncompensated Leave Days(6) (21,444)

Health Benefits Holiday (16,842)

Statewide Savings- Operating/Contracts/Grants (1,447)

Total 1,363,654 (47,458) 1,316,196 47,458 Sub-Total Education 1,123,056,349 (396,795) (9,763,366) 1,112,896,188 10,160,161 Public Safety Attorney General Criminal 12,988,267 FY 2008 Personnel Savings Distribution Turnover 607'144 Traffic Resource Prosecutor 36,777 Criminal - Other Contract Services (87,244)

Criminal - Operating (72,873)

Criminal - Capital Purchases and Equipment 1,565 Uncompensated Leave Days(6) (245,118)

Health Benefits Holiday (138,103)

Statewide Savings- Operating/Contracts/Grants (35,909) 12,988,267 66,239 13,054,506 (66,239)

Civil FY 2008 Personnel Savings Distribution 4,897,204 (70,206)

Insurance Rate Filing Experts (589,750)

Civil - Other Contract Services 35,929 Civil - Operating Expenses and Capital Purchases (7,000)

Uncompensated Leave Days(6) (76,358)

Health Benefits Holiday (44,939)

Statewide Savings- Operating/Contracts/Grants (11,932) 4,897,204 (70,206) (694,050) 4,132,948 764,256 Bureau of Criminal Identification FY 2008 Personnel Savings Distribution 1,017,634 (8,487)

BCI - Contract Services (10,154)

BCI - Operating Expenses and Capital Purchases (3,729)

Uncompensated Leave Days(6) (18,207)

Health Benefits Holiday (9,426)

Statewide Savings- Operating/Contracts/Grants (2,455)

B-23

Changes to FY 2008 Enacted Agency General Revenue Expenditures YFY2008 Enacted Original July FY 2008 Appropriation. Redistribution Projected* Projected Projected 1OfEnacted Changes Expenditures Surplus/(Deficit)

Personnel Savings 1,017,634 (8,487) (43,971) 965,176 52,458 General 2,432,200 FY 2008 Personnel Savings Distribution Unachieved Turnover -7,398 General - Contract Services (2,000)

General - Operating Expenses and Capital Purchases 111,463 Uncompensated Leave Days(6) (48,182)

Health Benefits Holiday (25,083)

Statewide Savings- Operating/Contracts/Grants (1,997) 2,432,200 41,599 2,473,799 (41,599)

Total 21,335,305 (78,693) (630,183) 20,626,429 708,876 Corrections Central Management 10,466,116 FY 2008 Personnel Savings Distribution Payroll Turnover (115,305) (258,540)

Training Class Stipends Savings (186,900)

Training Class Elimination (679,012)

Training Class Recruitment 46,532 State Match Change-Community Dialogue Program 19,093 Electronic Medical Records System 450,000 Length of Sentence IT Changes 250,000 Other Contract Services 2,640 Other Operating (2,640)

Health Benefits Holiday (88,068)

Uncompensated Leave Days(6) (124,924)

Statewide Savings- Operating/Contracts/Grants (85,619) 10,466,116 (115,305) (657,438) 9,693,373 772,743 Parole Board 1,259,056 FY 2008 Personnel Savings Distribution Payroll Turnover. (7,624)

Health Benefits Holiday (15,248)

Uncompensated Leave Days(6) (21,872)

Statewide Savings- Operating/Contracts/Grants (3,854) 1,259,056 (48,598) 1,210,458 48,598 Institutional Corrections 160,571,643 FY 2008 Personnel Savings Distribution Payroll Turnover (2,610,718)

Training Class 10,907 COLA Retro Revised Estimate 340,765 State Criminal Alien Assistance Federal Funds Transfer (456.863)

Pastore Power Outage-Overtime Costs 178,366 Population Related Overtime 2,618,574 Reintregration Center Delay (359,508)

Physicians Union Salary Adjustment 100,111 Population-Related Contract Services 518,732 Population-Related Operating 2,611,028 State Match Change 90,149 Pastore Power Outage 272,539 Inmate Payroll 273,144 Insurance (64,102)

Vehicle Lease Purchase 25,101 Length of Sentence Operating Changes 54,783 B-24

Changes to FY 2008 Enacted Agency General:Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected

'Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Health Benefits Holiday (1,833,844)

Uncompensated Leave Days(6) (1,855,636)

Statewide Savings- Operating/Contracts/Grants (674,254) 160,571,643 (760,726) 159,810,917 760,726 Community Corrections 15,657,717 FY 2008 Personnel Savings Distribution Payroll Turnover (40,324) (93,381)

Training Class 45,022 Pastore Power Outage-Overtime 537 Contract Services (10,294)

Unachieved Inmate Reduction Offsets (985,250)

State Match Change 25,806 Rental Property 10,294 All Other Operating 1,462

'Length of Sentance FTE's 135,170 Health Benefits Holiday (174,646)

Uncompensated Leave Days(6) (262,288)

Statewide Savings- Operating/Contracts/Grants (23,478) 15,657,717 (40,324) (1,331,046) 14,286,347 i1371,370 Total 187,954,532 (155,629) (2,797,808) 185,001,095 2,953,437 Judiciary Supreme Court 29,088,532 Personnel 15,586 Court Computer Technology (191,528)

Telephone and Communications 146,013 Insurance (94,290)

Facilities and Operations 86,710 Other Contract Services (45,830)

Other Operating Expenses 300,990 Judicial Pensions 2,819 Other Grants and Benefits 840 Capital Purchases and Equipment (785,238)

Statewide Savings- Operating/Contracts/Grants (255,917)

Health Benefits Holiday (179,658)

Uncompensated Leave Days(6) (306,145) 29,088,532 (1,305,648) 28,891,232 197,300 Superior Court 20,417,996 Adult Drug Court (7,879)

Jury Operations (178,050)

Other Personnel (150,200)

Other Contract Services (2,500)

Telephone and Communications 23,000 Insurance 61,025 Other Operating Expenses (10,944)

Judicial Pensions 10,978 Other Grants and Benefits 18 Statewide Savings- Operating/Contracts/Grants (28,202)

Health Benefits Holiday (202,585)

Uncompensated Leave Days(6) (337,692) 20,417,996 (823,031) 19,594,965 823,031 B-25

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation. "Redistribution Projected '.Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Family Court 17,793,670 Child Support Enforcement (582,759)

Other Personnel 905,220 Other Contract Services (9,219)

Insurance (7,632).

Other Operating Expenses (42,200)

Judicial Pensions 167,138 Other Grants and Benefits (1,138)

Statewide Savings- Operating/Contracts/Grants (10,276)

Health Benefits Holiday (212,433)

Uncompensated Leave Days(6) (342,988) 17,793,670 (136,287) 17,657,383 136,287 District Court 10,505,649 District - Personnel (407,617) (94,601)

District - Other Contract Services 30,600 Insurance (4,255)

District - Other Operating (67,369)

Judicial Pensions 163,230 District - Other Capital Purchases and Equipment (2,402)

Statewide Savings- Operating/Contracts/Grants (11,028)

Health Benefits Holiday (110,132)

Uncompensated- Leave Days(6) (165,796) 10,505,649 (407,617) (261,753) 9,836,279 669,370 Traffic Tribunal 7,159,070 Other Personnel (46,977)

Other Contract Services (40.000)

Telephone and Communications 34,000 Insurance 9,913 Other Operating Expenses (49,978)

Judicial Pensions (24,215)

Capital Purchases and Equipment (4,930)

Statewide Savings- Operating/Contracts/Grants (5,982)

Health Benefits Holiday (88,905)

Uncompensated Leave Days(6) (121,939) 7,159,070 (339,013) 6,820,057 339,013 Total 84,964,917 (407,617) (2,865,732) 82,799,916 2,165,001 Military Staff National Guard 1,761,132 Tall Ships (payment moved forward to FY 2008) 52,051 FY 2008 Personnel Savings Distribution (28,016)

Turnover Adjustment (38,056)

Planning Value Adjustment (12,883)

Contract Services Distance Learning Center (5,000)

Groundskeeping Services (13,171)

Environmental/Medical (905)

Operating Repair & Maintenance 58,074 Waste Disposal 34,799 Electricity/Fuel Oil/Natural Gas (8,411)

Lease Financing/State Fleet Costs 8,054 Insurance (9,029)

Office/Other Operating (1,612)

Health Benefits Holiday (12,280)

B-26

Changes to FY 2008 Enacted Agency General Revenue Expenditures .

FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Uncompensated Leave Days(6) (14,063)

Statewide Savings- Operating/Contracts/Grants (15,169) 1,761,132 (28,016) 22,399 1,755,515 5,617 Emergency Management 802,732 FY 2008 Personnel Savings Distribution -

Fringe Benefit Adjustments 17,180 Cost Allocation Change 22,422 Payroll Adjustments 81,460 Turnover Adjustment (17,148)

Internal Service Funds (IT/Mail) (32,000)

Operating Insurance (7;984)

Vehicle Repair (12,000)

Repair and Maintenance (6,000)

Electricity/Fuel Oil/Natural Gas (6,711)

Office/Other (75,114)

Health Benefits Holiday (9,128)

Uncompensated Leave Days(6) (14,777)

Statewide Savings- Operating/Contracts/Grants (452) 802,732 (60,252) 742,480 -60,252 ,

Total 2,563,864 (28,016) (37,853) 2,497,995 65,869 E-911 Emergency Telephone System E-911 Emergency Telephone System 4,733,109 Payroll (153,640)

Verizon/Other Provider Monthly Svc Charges 122,687 Software Maintenance Agreements 269,798 Operating (2,800)

Emergency Equipment Repairs 5,000 Health Benefits Rate (59,725)

Uncompensated Leave Days(6) (68,617)

GIS MicroData 'Rear Load' Charge 62,881 Statewide Savings- Operating/Contracts/Grants (29,326)

Total 4,733,109 146,258 4,879,367 (146,258)

Fire Safety Code Commission Fire Code Commission 303,435 FY 2008 Personnel Savings Distribution (2,875)

Operating (1,197)

Uncompensated Leave Days(6) (5,561)

Health Benefits Holiday (3,620)

Statewide Savings- Operating/Contracts/Grants (352)

Total 303,435 (2,875) (10,730) 289,830 13,605 State Fire Marshal State Fire Marshal 2,671,285 FY 2008 Personnel Savings Distribution (229,217)

Operating (52,086)

Equipment Lease 6,024 Contract Services 28,647 Uncompensated Leave Days(6) (39,994)

Health Benefits Holiday (21,971)

Statewide Savings- Operating/Contracts/Grants (7,990)

B-27

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation, Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Total 2,671,285 (229,217) (87,370) 2,354,698 316,587 Rhode Island Justice Commission Rhode Island Justice Commission 160,815 Payroll - Reduced Federal Admin Funds 83,181 Health Benefits Holiday - Statewide (3,518)

Uncompensated Leave Days(6) - Statewide '(4,714)

Other Operating (3,911)

Total 160,815 71,038 231,853 (71,038)

Municipal Police Training Academy 429,252 Payroll - Unachieved Turnover Savings 15,632 Health Benefits Holiday - Statewide (4,706)

Uncompensated Leave Days(6) - Statewide (7,689)

Contract Services (6,000)

Other Operating 2,386 Statewide Savings- Operating/Contracts/Grants (1,061)

Total 429,252 (1,438) 427,814 1,438 State Police State Police 52,058,385 Turnover: 272 funded, 265 filled (235,777)

Take out 3 vancant network positions (346,439)

Pay-as-you-go Retiree medical 57,331 Program reduction substract 2 FTE (58,600)

Analyst positions add 2 FTE 99,566 Health Benefits Holiday - Statewide (334,375)

Uncompensated Leave Days(6) - Statewide (455,697)

Contract Services 3,709 COPS payments 30,543 Vehicle Maintenance 120,000 Operating (200,049)

Pay-as-you-go Pension, 1,933 Capital 19,800 Statewide Savings- Operating/Contracts/Grants (71,409)

Total 52,058,385 (582,216) (787,248) 50,688,921 1,369,464 Office Of Public Defender Public Defenders Office 9,324,951 Medical Benefit Adjustment 67,364 Turnover Adjustment (88,370)

Vacancy Adjustment (14,141)

Contract Services Security Services 5,886 IT Services 9,125 Operating/Capital Property Costs (23,158)

Insurance (748)

Office Expenses/Equipment Repair 7,843 Furniture-Kent County Courthouse 5,538 Health Benefits Holiday (103,725)

Uncompensated Leave Days(6) (163,580)

Statewide Savings- Operating/Contracts/Grants (11,029)

B-28

Changes to FY 2008 Enacted Agency General ReVenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Total 9,324,951 (102,511) (206,484) 9,015,956 308,995 sps 366,499,850 (1,586,774) (7,207,550) 358,813,874 7,685,976 Natural Resources Environmental Management Office of the Director 6,043,464 FY 2008 Personnel Savings Distribution Offsets to Indirect Account (224,906)

Program Reductions/Reallocations (169,537)

Legal Services Offset Reversal - $1/Ton Surcharge 136,990 Bays, Rivers, Watershed Salary offset/Grant Reduction (150,000)

Other Salaries and Benefits 37,905 Legal Services - Tiverton Soil Contamination Lawsuit 198,000 Other Contract Services 6,293 Headquarters Utilities and Rent 31,125 Other Operating Expenses 4,106 Capital Purchases and Equipment (27,000)

Statewide Savings- Operating/Contracts/Grants (22,230)

Health Benefits Holiday (34,590)

Uncompensated Leave Days(6) (52,872) 6,043,464 (266,716) 5,776,748 266,716 Natural Resources 18,318,004 Unachieved Turnover Offsets to Indirect Account 1,200 Program Reductions/Reallocations (18,537)

Enforcement Offset Reversal - $1/Ton Surcharge 59,924 Seasonal Programs (2,362)

Overtime (Enforcement) 50,813 Elimination of Vacancies [(796,607])

Enforcement Salaries and Benefits 151,890 Forest Environment Salaries and Benefits (346,794)

Parks and Recreation Salaries and Benefits. (341,915)

Agriculture Salaries and Benefits 142,038 Fish and Wildlife Salaries and Benefits (60,242)

Planning and Development IT Transfer from DOA (I FTE) 108,407 Administration Salaries and Benefits 177,506 Other Contract Services (23,078)

Parks and Recreation Operating Expenses 34,526 Fish and Wildlife Operating Expenses 6,268 Other Operating Expenses 25,566 Payments to Host Beach Communities 70,553 Other Grants and Benefits 400 Fish and Wildlife Vehicle Purchase (17,151)

Statewide Savings- Operating/Contracts/Grants (87,419)

Health Benefits Holiday (167,586)

Uncompensated Leave Days(6) (217,522) 18,318,004 (453,515) 17,864,489 453,515 Environmental Protection 12,051,532 Unachieved Turnover Offsets to Indirect Account (75,591)

Tech & Customer Assistance Offset Reversal - $1/Ton Surcharge 28,284 OT&CA IT Transfer from DOA (2 FTE) 207,501 Other Tech & Customer Assistance Salaries and Benefits 231,014 B-29

Changes to FY 2008 Enacted Agency General Revenue Expenditures FY2008 Enacted Original July FY 2008 Appropriation Redistribution Projected Projected Projected Of Enacted Changes Expenditures Surplus/(Deficit)

Personnel Savings Compliance & Inspection Offset Reversal - $1/Ton Surcharge 374,802 Other Compliance & Inspection Salaries and Benefits 53,868 Air Resources Salaries and Benefits 99,271 Program Reductions/Reallocations (95,808)

Water Resources Salaries and Benefits 396,111 Other Salaries and Benefits (4,280)

Other Contract Services 2,000 Other Operating Expenses (81,771)

Rose Hill Landfill Savings/Offset to RICAP (2,212,532)

Compliance & Inspection Vehicle Purchase (29,000)

Statewide Savings- Operating/Contracts/Grants (11,885)

Health Benefits Holiday (154,882)

Uncompensated Leave Days(6) (206,409) 12,051,532 (1,479,307) 10,572,225 1,479,307 Total 36,413,000 (2,199i538) 34,213,462 2,199,538 Coastal Resources Management Council- 1,879,559 FY 2008 Personnel Savings Distribution Personnel-Turnover Adjustment 97,813 Contract Services (9,900)

Other Operating (2,434)

Marine Survey Vessel Payment 36,310 Health Benefits Holiday (20,728)

Uncompensated Leave Days(6) (35,951)

Statewide Savings- Operating/Contracts/Grants (4,024)

Total 1,879,559 61,086 1,940,645 (61,086)

State Water Resources Board 1,893,081 FY 2008 Personnel Savings Distribution FY 2008 Vacancy Savings (212,951)

Stream Gauging 9,900 Big River Well Development 130,000 Water Allocation Plan (130,000)

Operating Road Maintenance 7,000 Postage 200 Other Operating (7,200)

Insurance (12,907)

Health Benefits Holiday (7,673)

Uncompensated Leave Days(6) (15,496)

Statewide Savings- Operating/Contracts/Grants (24,984)

Total 1,893,081 (212,951) (51,160) 1,628,970 264,111 Sub-Total Environment 40,185,640 (212,951) (2,189,612) 37,783,077 2,402,563 Statewide General Revenue Total 3,403,638,116 (7,215,749) (25,649,416) 3,374,413,315 29,224,801 B-30

Appendix C Aid to Cities and Towns

Formula Aid to Cities and Towns The Governor's FY 2009 budget recommends formula aid to cities and towns totaling $273.6 million.

This represents a 2.2 percent, or $6.2 million decrease from the FY 2008 enacted level of funding.

The tables on the following pages display FY 2008 enacted, FY 2008 revised, and FY 2009 recommended levels of funding for formula aid to cities and towns by community. In general, formula state aid programs were level funded from the revised level with the exception of the motor vehicle excise tax reimbursement program which was increased by 3.2% to reflect increased valuation of exempted vehicles. The narrative below describes each of the programs included on the tables. It should also be noted that updated formula drivers were incorporated for FY 2009. This results in increases and decreases by community depending on changes in relative wealth and other factors which are incorporated in determining entitlements.

General Revenue Sharing - Beginning in FY 1994, one percent of total state tax revenues from the second prior fiscal year was earmarked for general state aid to cities and towns. Beginning in FY 1999, this percentage was to increase annually. In FY 2009 such distribution was to total 3.0 percent of state tax revenues. These funds are distributed based on a legislated formula encompassing per-capita income and the taxes imposed by each city or town for public purposes, excluding amounts allocated to education expenses. The Governor proposes that funding for this program in FY 2009 be set at $55.0 million, nearly the same amount as in FY 2008 revised, and to fix future distributions at three percent (3.0%) of tax revenues in FY 2010 and thereafter. For FY 2009, the entitlements by community have been adjusted to reflect the most current tax and spending data. There have been modest adjustments downward incorporated for four communities so as to eliminate appropriated increased entitlements from FY 2008 enacted.

Payment in Lieu of Taxes - Legislation creating this program requires the State of Rhode Island to reimburse cities and towns for property taxes that would have been due on certain types of real property that are exempted from taxation by state law. This includes property owned by nonprofit educational institutions, nonprofit hospitals, or any state owned hospital, veteran's facility, or correctional facility.

Reimbursement is made for twenty-seven percent of all tax that would have been collected had the property been taxable, prorated to the amount appropriated for a given year. The program has been level funded for FY 2009; however, the entitlements by community have been adjusted to reflect revenue which would have been lost resulting from eligible properties in the statutory reference year.

Distressed Communities Relief Fund - This program provides state assistance to those Rhode Island communities with the highest property tax burdens relative to the wealth of taxpayers. The Governor proposes to set the amount of total funding distributed under this program to the amount enacted in the annual appropriations act. Entitlements for FY 2009 by community reflect computations based upon the latest available qualifying data.

State Library Aid - This program provides financial support for local public library services and for the construction and capital improvement of any free public library. A portion of library aid is disbursed directly to local libraries, including private libraries, while other aid is disbursed to the individual cities and towns. Although total funding is level funded at the FY 2008 enacted level, distributions by community/library have been calculated based upon the latest available qualifying data from the statutory reference year.

Motor Vehicle Excise Tax - Legislation enacted during the 1999 General Assembly provides for a phase-out of the local excise tax on motor vehicles and trailers. This legislation was amended in 2002 to make the full phase out of the tax subject to the annual review and appropriation of the General Assembly. For fiscal year 2007, the value of the exemption from local taxes was increased to $6,000 C-1

Formula Aid to Cities and Towns per vehicle. The FY 2009 budget maintains that $6,000 exemption and assumes a 3.2% growth in the value of exempted vehicles which will be reimbursed by the state. The FY 2009 budget also incorporates the proposal to reimburse only 98. percent of the exemption value in FY 2008 and FY 2009, reflecting comparability with municipal motor vehicle.:tax collection rates.

Public Service Corporation Tax The tangible personal property of telegraph, cable and telecommunications corporations is exempt from local taxation,'but is subject 'to taxation by the state at the average property tax statewide. Funds collected from this tax are distributed to cities and towns within the state on the basis of the ratio of the city or town population to the population of the state as a whole.

Meals and Beverage Local Sales and Use Tax - During the January 2003 session, the General Assembly enacted a one percent gross receipts, tax on retail sales of meals and beverages in or from eating and/or drinking establishments. The takes 'are collected by the Division of Taxation and distributed at least quarterly to the city or town where the meals and beverages were delivered. The budget assumes that this pass through aid will increase by 2.6% for each community compared to the FY 2008 revised projection.

C-2

Fiscal Year 2008 State Aid to Cities and Towns General Payment Distressed State Motor Vehicle FY 2008 Total City or Town Revenue In Lieu of Community Library Excise Tax Appropriated Sharing :Tax Exempt. Relief Fund Aid Reimbursement State Aid Property Value of Exemption Barringto*i: 7 7 243:,363 7< 314,971 K2,946,2'87 Bristol 991,817 ...56,835. 4 57 181 1,519,761 3,129,594

.299,245 ~ 7ý9_855 ,785,388 Central Falls 1.693,857 300,986 66,132 1,530,370 3,591,345 lCharlestown1 407,811 45,568< > 979,055-Coventry 1,014,646 167,177 2,956,856 4,138,679 Cranti i *£i,)ii#: *<;., : ' ..5,*428,:52g1*5 3,583,905 85k,485 12.367,584< 21,928,495 Cumberland 1 1,560 119 6139 240,606

-- 2,475,294 1 6astKLreenýuIch 176,808 27,940& -r 102,399~< -1,364,541<<

East Providence 2,681,452 61,629 '- ' 499,380 6,503,593 9,746,053 F \eter 9,4 28,066.2 ~994,621, Foster 3!0,304 270 29,271 836,356 Glocester 567,421 647 w 1,194,096 1,826,220 Hopkinton 225,882 S - 31 ,28' 825,667 1,082,787 J'arnestwn 146-t60)4 <>648,292~

Johnston 2,554,218 121,452ý 5,152,508 7,828,178 i~hiconi .> 959,2907 .2948,236: '< 4,'080,405~

Little Compton 105,828 - *25,425 294,918 426,171 MAadletow 979,346 <V49N936'< 1,110,711 SNarragansett82212 111,496 1,251,427 2,245,135 Newport ~7 1,846,695x <658,326 1 - 346,433~ 7 1.893,005 '<< 4,744',459 New Shoreham 91,497 388,246 86,203 265,946 North Kmngstown < 890,042? 6,830, 2,874,655 North Providence 2,404,365 533,146 ,120,853 174,550 5,023,024 9,255,938 North Smihfield 656,282 1 7> 2,018,242

<60J768 2,774, 1090 Pawtucket 5,476,767 ,573,062 395,734 10,156,439 17,932,378 portsmouth? 654,69777 109,462 ' ~1,564,269 2,328,427 Providence 15,536,990 20124, 15 ,294,376 1,285,939 23,229,041 65,470,504 RichmiondV 1?4 8,3 2_2 - 22,769 811,759 983,477 Scituate 452,695 3362,377 " -

93,610 1,564,020 2,110,324 Smithfild 1,867,355? - < 240 1'457 3,5_56,692, o6,'101,794~

South Kingstown 1,015,804 121.138 194,843 3,484,855 2,153,071 Tiverton 646,245 A87,145 1,;409,003, '2142,393 Warren 502.159 46,087 1,132,491 1,680,737 rWarwick~ 4.872,91i4 666,76)7< 14,003,363 20,466021 Westerly 757,697 132,288 2,989,956 4,167,076 West Greenwich? 223,293 21,394., <564,034 West Warwick 1,473,614 950,453 196,189 3,152,643 5,772,899

.Woonsocket', :. 7, 3,868,0957 173,199) ~845,483 72 19,98~7 7 5,427,097 Subtotal $65,111,876 27,766,967 10,384,458 $7,698,411 1 33,624,205 $244,585,915 Statewide Reference Library Resource Grant (Providence) $1,012,378 1,012,378 Library Construction Reimbursement 2,813,141 2,813,141 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 1,875,837 Total $65,111,876 $27,766,967 $10,384,458 $11,523,930 $135,500,042 $250,287,271 C-3

Fiscal Year 2008 Pass Through Aid to' Cities & Towns Public Service Meals and FY 2008 Total' FY 2008 Total City or Town Corporation Beverage Shared Taxes Shared &

Tax Tax State Aid Appropriated Aid Bairrington 216,956 '108'.806' ;;274,;762: '~3,833,247 Bristol 2182,872' 504,688 3,634,282 S-4,267,576" Central Falls 116,878 -303,595 3,894,940 Charlestowýn 114,720)' '192,038, ,1', 171,003A Coventry 332,049 324,799 656,848 4,795,528 Cranstonw :782,494j 1,322,972k 2,1i05,466 -'24,033,961 Cumberland 313,933 336,266 650, 199 4,926,357 East ( ueeIJIx'c 2168,154~

East Providence 481,518 812,988 1,294 506 11,040,560 iExeteW~i. d 50 270 1,238,374 Foster* 4 2, 243 19,929 62,173 Glocester*', 62, W 4< 1,986,952 Hopkinton 77.,193 1,187,954 27.973 105,166

-149,'345. -93,945 Johnstion 278,19 413,516 691,714 8,519,892

Lincoln 205,799_ '"9428',481 4,714,685j Little Compton 35,441 30,404 65,845 492,016

'Middletown 2,921,825.

Narragansett 161,330 3'7 408,207 2,814,671 1,79,981:

Newport*$

6~,534,440)

New Shoreham 9,937 188,844 454,791 Nrt Kingstown .259,512" 5'638,6 4,644,636>

North Providence 320,185 741,511 9,997,450

NorthliSmithfiel& 1 270894 1' 3,062260)

Pawtucket 720,845 1,384,831 19,317,209 Portsmiouiii U 169,383 340,691 ProvideInce 1,712,408 4,026,739 5,.739,147 71,209,651 Richmonid I'" "3/4 70,903" 38,177 115 037(,

A' 1,181,469 Scituate 101,885 140,062 2,250,386 493,282 x 0, 65 9 69 6,792,452?

South Kingstown 275,088 4,02,4739 768,370 40253,225 Ti verton: v* 150,556 9"2'65,593~

Warren 112,258 255,602 367,860 2,048,597 Warwick '847,8033/4 '-'"3,2ý52.333 ' 3,658,354

" 226,600 Westerly 858,074 1k, 5,025,149 West Gireenwýich '49,8553/4~ 133,890' j942,61 510,029 6,475,122 West Warwick 292,223 702,222 WooSuocket $19,125,855 937,473, Subtotal $10,347,757 $29,473,615 $274,059,529 Statewide Reference Library Resource Grant (Providence) 1,012,378 Library Construction Reimbursement 2,813,141 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 Total $279,760,885 C-4

Fiscal Year 2008 Revised State Aid to Cities and Towns General Payment Distressed State Motor Vehicle FY 2008 Total City or Town Revenue In Lieu of Community Library . Excise Tax Appropriated Sharing Tax Exempt. Relief Fund Aid Reimbursement State Aid Property Value of Exemption Barmington9<' *'* 106,205* >'"'314,971.

Bristol 840,384 560,835 57,181 1,521,189 2,979,589

Bu rrillvillle*+!r: *:: C 597,138~ 78,891 2,785,136~

Central Falls 1,432,052 300,98 *666.132 1,.'510,701 3,309,871 521 ý543 1

+Charlestown. 345,546 Coventry 859,728 167,177 2,952,306 3,979,211 Cranstoont '<' 4,599ý682' *,583,905> 20,9~73,8177 1,321,917 9

Cumberland 139 240,606 2,767,479 4,330,141

East Greenwich 61,694 9,. 102,399' 1,355,447 .

East Providence 2,272,041 * *.. 499,380 4g+

Q+1), ' ():++

o.283,312 9,116,362 76,-7481'.

-. 20I.I

, J,~010,207 Foster 262,926 838,207. 1,130,674 Gloccstcr 480,7854.

i>.... 64709 o4 f1,214,279.

S 840,132 1,759,773, Hopkinton 191,394 1,062,764 Jamestown ,1<24,22 ~621,509i Johnston 2,164,234 121,452 5ý,078,225, 7,363,911

Linco01*nrV

+,N)+

++++:812, 823".<

'2,923,529<

Little Compton 89,670 25,425 295,563 410,658 Middletown ... 829,81l7 149,,936 1",09*o083' ),069,836 Narragansett 747,514 111,496 1,225,392 2,084,402 Newport ' 34.333, A850,0122' 1j 4,19,5 19 New Shoreham 77,527 88,246 86,417 252,190

.North Kigstownh 9 754,148ý 2314,608 3,809.2-121 North Providence 2,032,742 533,146 1,120,85 3 174,550 4,979,357 8,840,648 North Smithfield 556,;0809 S60,'-/68' ~"')2,036,4'36 2,692,101i Pawtucket 4,630,267 330,377. 1,530 52. 395,73'4 10,057,076 16,986,516 Portsmouthl '9554,7Y6 2 109,462I 1-+*555,855 5 ý:

()4..,

Providence 13,135,563 20,124,158 06 1.285,939 63,334,622 23,494,586

*.: 125,6707:

Richmnibd 627 "K 22,769 757.368 906,440 Scituate 383,576 93,610 1,572,577 2,049,763 Smnithfield 7 1,582,243> 5,79,9'567 South Kingstown 860,708 121,138 194,843 2,167,848 3,344,537 Tiverton 7' I 547,575 ,:,.98'K, 145 1,404,450 Warren 425,488 46,087 1,126,195 1,597,770 Warwick 4.128,906 6,66,767. 13,998,167 19,656,817~~

Westerly 642,010 132,288 287,135 ...3156,078 4,217,511

West Greet j'i 0575828' 786 ,422 West Warwick 1,245,850 +3 196,189. 1,987,738 5,380,230 Woonsubtotal 4,3,270,235 173,+1'99 95 ,45, 8 $ 19,987 i 5,!393,158 :=*4:'

92,02,062 Subtotal $55,111,875 27,766,967 $10,384,45 8 $7,698,411 133,440,705' $,234,402,414 Statewide Reference Library Resource Grant (Providence) $1,012,378 1,012,378 Library Construction Reimbursement 2,813,141 2,813,141 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 1,875,837 Total $55,111,875 $27,766,967 $10,384,458 $11,523,930 $135,316,542 $240,103,770 C-5

Fiscal Year 2008 Pass Through Aid to Cities.& Towns Public Service Meals and FY 2008 Total FY 2008 Total City or Town Corporation Beverage Shared Taxes Shared &

Tax Tax State Aid Appropriated Aid Barrinigto i 297,351~ 261,080 3,844,991q Bristol 218,726 314,610 3,512,924 Burrillville - - ~153,767 ... 316,8056 A 4,157,070KA

-Central Falls 184,256 85,2 11 3,579,338 Charlestownn > 11f3,369> 189,873 <7 1';102,418 Coventry 311,692-327,743 639,435" 4,618,646 Canstonii A~7771,6>48A > 21,329.7M6' I<23,075.71-11 Cumberland 309,948 335,7241 645,669 4,975,810

~East Greenwichi S500,204

-East Providence 4173,956 695,080 1,169,036 10,285,398 AExet(er ~

Foster 41,605 16,54- ,1, 188,82n 58,152

~Glocester 961,839' >1004559, >2"1,911,4922 Hopkinton 76,280 47, 13 123,415) 1,186,179 Johnston-274,466 442,3681, 716,834 8,080,745 203,4332 570,769 ; A74,683,4133 Little Compton 34,976 28,489 63,465 474,123

Middletown -~168,739- A>2,775,797

',37AA,222 Narragansett 159,267 366,116 525,383 2,609,785 Newport 257,722>> ,,1,602,080z:2>T 2-'-6,279,322A1 New Shoreham 9,832 238,087 247,919 ' 500,109

l *:;*::4g:38,*219 ** _*

NorthKi'ngstown -- 256,272' 694'419 1 AT4,503,912 North Providence 315,506 387,100 702,606 9,543,254 North Smlthlfield 103,AT361 2 616,145 252,364 :2 944,465 Pawtucket 710,213 1,326,358 18,312,874 Portsowuth ~66,938 ~>3,8ý78,564 21-50,933 2j 317;87] 2-A;,~§2537,924 Providence 1,690,093 ** 5,568,657- 68,903,279 Richmond . A ,70,?303 171,262>

Scituate 100,499 415,218 145,717 2,195,480 SimithficId 200.658 A484.,183 A 684,841 )' A> 6,48A2,07 South Kingstown 271,798 472,658 744,456 4,088,993 Tiverton > >48,070A2A 1 2*335,789.

Warren 110.584 229,894 340,478 1,938,248 War-wick . - > 835302

-A>2 -2,180,676f,>2 '3,015,9~71) ......

22,*672,2795.

Westerly 223,564 612,366 835,930 5,053,441 West Greenw'ich - -TA49,500 ->;'776,537. 1?603,6

A> A 912,459)

West Warwick 287,958 343,255 631,213 6,011,443 Woonsocketo 4204,766 1473,363-0 894,-129 Subtotal 10,204,912 18,660,826 $28,865,738 . $263,268,152 Statewide Reference Library Resource Grant (Providence) 1,012,378 Library Construction Reimbursement 2,813,141 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 Total $268,969,508 C-6

Changes in Formula Aid - FY 2008 Revised vs. FY 2008 Enacted General Payment Distressed State Motor Vehicle Total City or Town Revenue In Lieu of Community Library Excise Tax Appropriated

'Sharing Tax Exempt Relief Fund Aid Reimbursement Difference Property.

BarringtonJ> ~(37,158) 62,584' Bristol (151,433) 1,428 (150,005) i:* !* (109,16*8)*

' ( 109,4261)

Central Falls (261,805) (~19.669) . 21,474)

~Charlest\ i-,n (62,265)

(< ~(4,245)

Coventry (154,918) (4,550) (159,468)

Cranston (828,839), (954,67,8')

Cumberland (2 8202) 292,185 1-East Greenwich (20 996)

East Providencee * (409,411) - (220,281) (629,692)

'Exeter: (13,8241) 15,586 >1,762 Foster (47,378) 1,851 (,45,527)

~Gtocestcr Hopkinton (34,488) 14,465 (20,023)

Jamestown (:22,3831)' (26,782)~

Johnston (389,984) (74,283) (464,267)

Lincoln (16,158) . (24,J707) (17~1,174)

Little Compton 645 (15,513) lvMiddletown . :7...2 .. :

(20,628)

Narragansett (26,035) (160,733)

New Shoreham ,(281,957) - ~ 42 ,983)' (324,940)

(13,9708) 214 (13,756) 6,826) (19~6,720)'

North Providen ce (371,623) (43,667) (415,290)

~North Smni'tfiel d j (100,20-1 - >~ 18,194 'V'(82,,009)

Pawtucket (846,500)

(99,363) (945,863)

!Portsmout hiV Providence (2,401,427) 265,545 135,882)

Richbmond 1f22, 646)> o(4,39,1) ~(77,037)~

Scituate (69,119) 8,557 (60,562)

~Sniithfieid' (2-85ý 112) ,(304,227)>

South Kingstow vn (155,096) (140,319) 7 K -14,777 (98.670) (0,223)i Tiverton>

Warren (76,671) ' "(6, 296) (82,967)

!-il!:*<, : 15,5 196)!

Westerly (115,687) 166,122 50,435 West Warwick h ~ '(34,093) -~ f11,94A (22, 29 9)~

(227,764) (164,905) (392,669) al (5971,80)

Subtota (10,000,000) $o0 $ $0 ($183,500) ($10,183,501)

Statewide Reference Library Resource Grant (Providence) 42,056 42,056 Library Construction Reimbursement (36,306) (36,306)

Motor Vehicle Excise Tax Reimbursement - Fire Districts Total ($10,000,000) $0 $0 $5,750 ($183,500) ($10,177,751)

C-7

Changes in Pass Through and All Aid -, FY 2008 Rev vs FY 2008 Enacted Public Service Meals and Total Total City or Town Corporation Beverage Pass Through All State Aid Tax Tax State Aid Difference Difference Barrmngton (3,0901) (~13,682) >11.,745 Bristol 3 1,738 28,648 (121,357)

.Burrilk ille . (2,425) (1,085)" (110,505)

Central Falls (2,460) (3 1,667) (315,602)

~Charlestmýwn [ .. . .... . ... . 8 1'4 . F,351) 2j'Z165)

Coventry (4,306) (13,107) (1, 413) (176,881)

Cranston (0,846) 1 4 . 6,734 14112)

-1, Cumberland (545) (4,530) 49,453

~Eat Grcenwich '

(17,908) 5'32)"

East Providence ,(7,562) (125,470) (755i,16 1)

,*.*.. (.,529.): 233

(~785).

Foster (638) (3,383) (4,021) (49,548)

§ (,283) 4 21 ,.(7,724) 19,162 (75460).

Hopkinton (913) 18,249) (1,774)

Jamestown -(672' (20,841)

Johnston 28,851 25,120 .4 (39"47) 1

.lincoin, (2,366) 22'<: _ ' :142,288' *-

(17 ,893)

Little Compton. (465) (1,9 14) (2,379)

Midkfdito\wii,7 (2,063)

Narragansett (42,090) (44,154) (204,887)

~Newvpo~rt' New Shoreham * (105) 59,180 59,075 45,318 North Ki i ot i ;<59,,235§ North Providence. (34,226) (38,905) 1(454,195)

North Smithfield (239,923)

.:>:::::(36;287

ý,* ) i

' (41,6 9) ' "(:*(4,757):

Pawtucket (10,632) (47,81411) (58,473) (1,004,335)

Portsmlouth.) * !'::(22,8 19); i:

(11,194)'

Providence (22,315) (148,175) (170,490) (2,306,372)

Richmondl. ::::., ,,*,* ,,,,*i*(000 ) : :::= ::,$(26,730}*:: ......

(26,1t29) (,,7,823) A> 9<>(103,766)4 Scituate (1,386) 7,041 5.655 (54,907)

Smiithfield:&A +c South Kingstown (3,290) (20,624) (23,914) (164,233)

(2,007); ' .33,0344 (72,1971)

Warren (1,674) (25,708) (27,382) (110,349)

Warv ickI, (2 854:),

(223, (236,3s55.);?

..(3,036) (22,144)

~ 95 1559)

Westerly (19,108) 28,291 W~est Gr~eenwich "';w.(7,498). I71,010)

('3,(,152.

West Warwick (4,'05) (66,745) (463,679)

Woonsocket (36,839)

($607,876) ($10,75,143)

Subtotal ($142,847) ($465,029) ($10,791,377)

Statewide Reference Library Resource Grant (Providence)

Library Construction Reimbursement Motor Vehicle Excise Tax Reimbursement - Fire Districts Total ($142,847) ($465,029) ($607,876) ($10,791,377)

C-8

Fiscal Year 2009 State Aid to Cities and Towns General Payment Distressed State Motor Vehicle FY 2009 Total City or Town Revenue; In Lieu of Community Library Excise Tax Appropriated Sharing Tax Exempt Relief Fund Aid Reimbursement State Aid Property Value of Exemption (Barrinigton ..... 216,234 4)1 317 o722 3, 1310515 55 . 3*688.3:10, Bristol 864,188 58ý4,813 57,817 1,569,867 3,076,685 illc

Burrilbzle ~~ ~4, 201,17o 1,352,4947 02,05-2 20f,927 2i04,713 80,245 2;,874,2o60:

Central Falls 288,852 77,237 1,559,044 3,378,112

7, 45,205 -)538,11 o9 Coventry 782,528 186,831 3,046,780 4,016,139 Cranston 4,155 762~ )3820,082~ 5~72,241~ ~1 2,633,4811 Cumberland 1103,654 140 248,544 2,856,038 4,208,376 East Greenwci ch T177,367~ 60,645 ** 105,141 : 1,398K821" j <1,689,337~

East Providence 2,688,856 467,926 6,484,378 9;,701,805 Exeter~ 39,429~ 32,415 ,1 042.533 Foster 235,970 437 33,195 865ý,030 1,134,632

Glocester. 495,1 77 S65,13 1,813,446 Hopkinton 227,065 "' .28,963

~J amestofwn 136,846 ~440, ý704i Johnston 2 164 904 122,433 7,528,065 Lincoln>< 792,759 K.17 4,94o~ 8,617,082 305,0211 3984,787 Little Compton 106,193 25,296 436.510 143,075. -1,124,906 Narragansett 717,780 117,559 1,264,605 2,099,944 1,485ý559 3'48,80', L909o221 4,496,966 New Shoreham 77,551 92,970 89,183 259,704

~Nordih Kinigstow i 709,085 6,~591 2,903,87-1 . 3,854,465 North Providence 2,177,880 1.0)24,798 178,999 5,138,697 S,034,035

'North Smithfield. 2L729,482 Pawtucket 4,955,929 499,940 409,610 10,378,902 17,597,416

~Portsmouth 505,140 91,605,642 2,214,368ý Providence 13,135,563 5,2299,786 1,239,749 24,246,412 63,491,702 Rlchmond 88.937< 257637 1896,17 X Scituate 368,509 9 1,895 1,622,899 2,083,303

'Smithfield ~1,582,733 466,237 1i 236,390, 3*650,779 5,936,131)

South Kingstown 817,311 118,511 189,662 2,237,219 3,362,703 Tiverton 492,063~ '~1449,392 2,028.061>

Warren 431,817 44,050 1,162,233 1,638,100 Warwick ,~ ~'4,046 449. 1,028,280 i14 ý446, 109o 20,196,748, Westerly 703,826 127,296 281,881 3,257.073 4,370,076

,WestGreenwaivich 150,833. V594,2S5 West Warwick 1,302,377 935,710 190,207 3,083,345 5,511,639 8

Woonsocket ~30,661-24,71 5:>>,5565.730>

Subtotal 55,015,867 $27,766,967 10,3384,458 $7,698,411 137,710,808 $238,576,512 Statewide Reference Library Resource Grant (Providence) 1,012,378 1,012,378 Library Construction Reimbursement 2,765,729 2,765,729 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 1,875,837 Total $55,015,867 $27,766,967 $10,384,458 $11,476,518 $139,586,645 $244,230,456 C-9

Fiscal Year 2009 Pass Through Aid to Cities & Towns Public Service Meals and FY 2009 Total FY 2009 Total City or Town Corporation Beverage Shared Taxes Shared &

Tax Tax State Aid Appropriated Aid tBarrington ii 1L&

63,72'5 99,983>~ r 263,708' Bristol 218,726 323,104 541,830 3,618,515 Burrillville 153,767 1Y67,440' 321,207 "4,522,383 Central Falls 184,256 87,5 1-2 3,649,880

~Charlesio\ ii 76,504 >192i934~ 1,128,749.

Coventry 327,743 320,108 647,851 4,663,990

~Cranstoni 771,648 ~23,318,822_

Cumberland 309,948 344,786 654,734 4,863,110

~East Grecinwicli <510,'306( 2,199,643~

East Providence 473',950 713,848 1,187,804 10,889,608 Exeter[ ~58,845 5Q822Ki

,SUi 224,044' 1,~

Foster 41,605 16,993 58,598 1,193,230 Glocester p )6,839) ~56,3627 153,201 1,966,647 Hopkinton 76,280 48,408 124.688 1.247,733 Jamrestowxn Johnston 274,466 454,311 728,77 8, 256,842 586,180 4,774,400-'

Little Compton 34,970 o4, 23)4 29,258 500,744 WMiddletownr 1o6873() '551,727'H A' 28z23,301-Narragansett ' 159,26- 376,001 535,268 2,635,212 Newport~ 1,903,058~ ~6,400,024 New Shoreham 9,832 244,515 254,347 514,051 North Kingstown A ~256,27')~ '450,051k S706323 <4,560,788 North Providence 3 15,506 397,552 713,058 9,747,093 NrhSntfieldV Pawtucket *.

103,361 710,213

-256,~387~

632,781 1,342,994 18,940,410 Plortsmouth j166,938~ 1-55,008~ 3-21,946 Providence 1,690,093 3,983,285 5,673,378 69,165,080 Richnirimd~

Scituate ii~<~70ý,3032 173;198 8 *W"1,070; 16Ao 100,499 46,439 146,938 2,230,241 Smiltlfield K 20,658

' 497,2'56 697,914 - .- 6,634,053,-

South Kingstown -7t.,798 485,420 757,218 4,119,921 Tiverton<~ 148,549~ 61:7:. -300; Warren 110,584 236,101 346,685 1,984,785 Warwick '2,')39,554 3,074,856~

Westerly 223,564 628,900 852,464 5, 222, 540

~895,327 West Warwick 287,958 352,523 640,481 6,152,120 Wonsocketot 420,166 Subtotal 10,204,912 i19,164,669 $29,369,581 $267,946,093 Statewide Reference Library Resource Grant (Providence) 1,012,378 Library Construction Reimbursement 2,765,729 Motor Vehicle Excise Tax Reimbursement - Fire Districts 1,875,837 Total $273,600,037 C-10

Changes in Formula Aid - FY 2009 vs. FY 2008 Revised General Payment Distressed State Motor Vehicle Total City or Town Revenue In Lieu of Community Library Excise Tax Appropriated Sharing - - Tax Exempt Relief Fund Aid Reimbursement Difference Property.

,ýfarringtbn' ' 10,029 f(4,666), '2,-752~ "' 4, K>'~96,284 'K' 0K14.39()

.. " 23,978 Bristol 23,804 637 48,678 97,097 Burrillville ~7*1,8()1) 8ý9,124 Central Falls (12,1 134)11-105 48,343 68,241 Charlestown A~6,948'ý' 16, 685ý 23,270" Coventry (77,200) - . 19,654 94,474 36,928 Cranston 23i56~ 207,749 Cumberland (218,263) ;-~, ". 7,938 ,88,559 (121,765)

East Greenwich K.'2 742' K 'K'43._374" East Providence 416,815 (984) - (31,454) 201,066 585,443 K?':; .'K'.32,*326'/

Exeter> " (-,7,279) 4,3419 6 14)5

(..

Foster (20,956) 167 3,924 26,823 3,958 Xiloccestcr ,.14,392 38,857 Hopkinton 35,671 26,885 60,81 Jamestown' 12,625 ,¢ =i/ ,6 6 1

!iiiii13 i 1!

N)',975 Johnston 670 981 162,503 .3 164,154

'Lincolni' (129) '935,5 9 353 K5556 Little Compton 16,523, 9,458,- 25,852 Middletown - (6,861), j',34,883 '32,299 Narragansett (29,734) 6,064 39,213 15,543 New Shoreham 24 4,724 2,766) 7,514 North Kingstown'<"' (45~,063)K 90,042 (96,0)55) 193,387 North Providence 145, 138 .(19,485) 4,449

'North Smithfield ~' 65,160o Pawtucket 325,662 22,658 (73,1 I22) 13,876 610,900 Portsmouth _

1/2.'

... 5,876) 7J49,787 ~KK(5).685)

Providence (553,966) 5,4 S10 (46,190), 751,826 157,080

~Richfriond Q(36,7",9) (4627,y 'K6' ,24,236 K Scituate (15.,067) (1,715) 50,322 33,541 Smithfield 490k 28.635 113,202 13~8,573" South Kingstown (43,397) (2,627) - ' (5,181) 69,371 18,167 (11,109 Warren 6,329 36,038 40,330 (82,457) 447,942*7"94 Westerly 61,816 (4,992) =. (5,24) 100,995 = 152,565 West Warwick (38$36,0 (19,198)

(14,7 743) (5,982) 95,607 131,409

'Wooiuocket 109,47) (14,8 1:72,58:1 142 ,696~

Subtotal ($96,008) $0 $0 $0 $4,270,102 $4,174,098 Statewide Reference Library Resource Grant (Providence) 42,056 42,056 Library Construction Reimbursement (36,306) (36,306)

Motor Vehicle Excise Tax Reimbursement - Fire Districts Total ($96,008) $0 $0 $5,750 $4,270,102 $4,179,848 C-1l

Changes in Pass Through and All Aid - FY 2009 vs. FY 2008 Revised Public Service Meals and Total Total City or Town Corporation Beverage Pass Through All State Aid Tax Tax State Aid Difference Difference Barrting2io.'n 4 107,027.

Bristol 8,494 8,494 105,591 Burrll~ville , ,/ .....

2,301 7().542 Central Falls 2,301 Chiarlestown "t.; '26ý 33]

Coventry 8,416 8, 416 45,344 Cranstoni r "35,902 AA~'35,902' 243,~651' Cumberland 9,064 9,064 (112,701) tEast Greemich* "';83.84'1 18,767 18,767 o04,210 East Providence Exeter 1 336o 1336 4,405 Foster 447 447 1dIlobSci>5 '

1,273 Hopkinton 1,273 61,553

\Janrestownii 4 44 2,7 154 < '29,6900 Johnston 11,944 11,944 176,098

'Lincoln < t>

Little Compton 15,411 26,621

'Midd~etowrb 44 47,5041 Narragansett 25,428 Newport 4 ' 6..,, 24 7'120,703 S6,428 T ..... 13.942 New Shoreham :

jNorth Kingstownii3/4 1,452F j 56,8764 10,452 203,8319 North Providence North Smittfieddi' 16,636.

- 4hQ.45t 16,636 Pawtucket 412,762 627,536 Portsmouth 4. 42 4 2,

.01 ' 104,721 Providence 104,721 261,801

'Richmond A4 (7,536)1 Scituate 1,221 1,221 34,761 Smnithfield ~~j13,073'% 4,07 15144.6455 South Kingstown 12,762 30,928 Tive'rtoni4 104,721P9 7 (74,111)

Warren 6,207 46,537

Warickki 58,878 95 * -598,809 Westerly 16,534 16,534 169,099

$53,984 9,268 4>(I 7,132)

West Warwick 9,268 140,677 Wponsocket 1$2$5,81 12,812 Subtotal $0i $503,842 $4,677,941 Statewide Reference Library Resource Grant (Providence) 42,056 Library Construction Reimbursement (36,306)

Motor Vehicle Excise Tax Reimbursement - Fire Districts Total $503,842 $503,842 $4,683,691 C- 12

Appendix D Aid to, Schools

Education Aid to Local Units of Government Education Aid to Local Governments Education Aid to Local Governments totals $910.4 million in FY 2009, a $25.7 million increase in total state funding relative to the FY 2008 revised budget, and a 2.9 percent increase in the state's commitment to financing public education within Rhode Island. Total Education Aid is defined to include local public schools, the School for the Deaf, Davies Career and Technical School, the Charter Schools, the Central Falls School District and the Metropolitan Career and Technical School, as well as support for teacher retirement and school housing aid. The following sections summarize changes to the various aid categories that comprise total FY 2009 Education Aid.

DistributedAid- Maintenance of the State's Effort with Continued Supportfor CentralFalls In the extremely distressed fiscal environment surrounding the formulation of the FY 2009 Budget, the Governor has again reaffirmed his commitment to Local Education Agencies (LEAs) by proposing level funding of distributed education aid for each community. The single exception to this policy relates to those six communities that have experienced declines in the number of certified (aid-eligible) group home beds between March 14, 2007 and December 31, 2007. Per statutory changes enacted by the 2007 General Assembly, group home aid to these six districts (Cranston, Johnston, Providence, Woonsocket, Bristol/Warren, and Exeter/W. Greenwich) will be reduced by a total of $885,000, corresponding to a total statewide bed decrease of 59 certified, aid-eligible beds. Further, to continue financing essential district operations while leveraging municipal fiscal participation, state support of the Central Falls school district increases by 3.9 percent, or $1.7 million, relative to the revised FY 2008 level. Combining these two changes yields total FY 2009 distributed aid appropriations of $691.7 million, a $.8 million increase from the revised FY 2008 level.

State Schools The State Schools- Davies Career and Technical School, Metropolitan Career and Technical School, and the Rhode Island School for the Deaf are collectively financed at $33.5 million in general revenue, which constitutes a $1.4 million increase from the revised FY 2008 Budget. This reflects financing of current services at each school, and continued support of the expansion of the Metropolitan School to an East Bay campus on Aquidneck Island. This campus commenced operations during the 2006-2007 school year and maintains a current enrollment of approximately 60 students.

Non-DistributedAid Several significant adjustments for the non-distributed categories of state education aid are also recommended for FY 2009. Notable among these are the elimination of both the Hasbro Children's Hospital educational grant and the School Breakfast subsidy, and a significant reduction in financing for SALT (On-Site) Visits. These modifications to the education aid program were determined following intensive deliberations on departmental priorities conducted by the Governor during the summer of 2007.

The general revenue match for federal support of telecommunications access for public schools and libraries (the so-called E-Rate program) was likewise removed, to be funded exclusively through receipts of the Rhode Island Telecommunications Education Access Fund (RITEAF) beginning in FY 2009. The Progressive Support and Intervention (PS&I) Fund, which finances corrective intervention activities in the State's underperforming districts, is financed at $2.7 million. The single largest component of non-distributed aid, direct aid to charter schools, increases $2.9 million from the FY 2008 revised level to a total of $29.8 million in FY 2009.

D-1

Education Aid to Local Units of Government Other Aid The FY 2009 budget also includes increases in other aid of $21.9 million; $7.3 million in school housing aid reimbursements and $14.6 million in state contributions for teachers' retirement.

FY 2009 Education Aid Increases (Decreases)From the Revised FY 2008 Budget

Group Home Funding: ($885,000)

Central Falls School District: $1,693,051

Professional Development: $2,960

Hasbro Children's Hospital: ($97,300)

" School Breakfast: ($600,000)

Telecommunications Access: ($270,460)

On-Site Visits (SALT): ($251,057)

Direct Charter Schoo Aid: $2,931,910

Progressive Support and Intervention: ($105,7183)

Metropolitan Career aid Technical School: $814,812

School for the Deaf: $53,805

" Davies Career and Technical School: $490,118

" Teachers' Retirement: $14,560,467

School Housing Aid: $7,332,272 Explanation qf LEA Table The following table displays the FY 2008 and FY 2009 education aid budgets and their corresponding apportionment among the state's local and regional education agencies (LEAs). "Distributed LEA,Aid" consists of the various categories of aid, that are directly distributed to school districts on a regular (usually monthly) basis, such as General Aid, Targeted Aid, and. funds for Student Equity. For completeness, general revenue financing of the Central Falls School District (including an allocation for indirect Charter School Aid) is also displayed in this section. "State Schools" include the Metropolitan School, Davies, and School for the Deaf. "Non-Distributed Aid" includes several categories of aid that are either utilized at the departmental level or are not distributed regularly to school districts. "Other Aid" consists of allocations for School Housing Aid and state contributions to the Teachers' Retirement Fund. For the purposes of this table, direct aid to charter schools is categorized as non-distributed.

D-2

Education Aid to Local.Units of Government FY 2008 FY 2009 Difference*

Revised Recommend Distributed LEA Aid Barrington $2,599,526 $2,599,526 Burrillville 13,854,743 13,854,743 Charlestown 2,002,838 2,002,838 Coventry 20,075,081 20,075,081 Cranston 35,580,911 35,475,911 (105,000)

Cumberland 13,257,009 13,257,009 East Greenwich 1,949,761 1,949;761.

East Providence 26,888,254 ....26,888,2'54 Foster 1,416,463 .. .. 1)4t6,463 Glocester 3,213,847 3,213,847 Hopkinton 6,241,352 6,241,352 Jamestown 531,908 531,908 Johnston 10,915,364 10,750,364 (165,000)

Lincoln 7,403,268 7,403,2,68 Little Compton 368,810 368,810 Middletown 10,497,116 .10,497,116 Narragansett 1,897,159 1,897,159 Newport 11,871,080 11,871,080 New Shoreham 106,345 * . 106,345 North Kingstown

11,986,005 1 1,;986,005 North Providence 13,382,872 "13,382,872 North Smithfield. 4,834,237 4,834,237.

Pawtucket 67,"023,559 67,023,559 Portsmouth 6,700,042 6,700,042 Providence 194,109,756 193,869,756 (240,000)

Richmond 6,188,615 6,1.88,615.

Scituate 3,407,183 3,407,183 Smithfield 5,743,568 5,743,568 South Kingstown 10,548,698 10,548,698 Tiverton 5,932,058 5,932,058 Warwick 37,626,000 37,626,000 Westerly 6,843,077 6,843,077 West Warwick 20,440,547 20,440,547 Woonsocket 47,661,613 47,421,613 (240,000)

Bristol/Warren 20,498,190 20,438,190 (60,000)

Exeter/W Greenwich 7,661,019 7,586,019 (75,000)

Chariho District 398,334 398,334 Foster/Glocester 5,729,861 5,729,861 Central Falls 43,494,684 45,187,735 1,693,051 Subtotal $690,880,753 $691,688,804 $808,051

Forall communities, decreasesfi'om FY 2008 Revised to FY 2009 representdrops in certifiedgroup home bed counts.

D-3

Education Aid to Local Units of Government FY 2008 FY 2009 Difference Revised Recommend Non-Distributed Aid On-Site Visits $396,921 $145,864 ($251,057)

Textbook Expansion 240,000 240,000 Hasbro Children's Hospital 97,300 ($97,300)

School Breakfast 600,000 ($600,000)

Professional Development 592,040 595,000 2,960 Charter School-Direct Aid 26,844,840 29,776,750 2,93 1,910 Progressive Support & Intervention 2,801,050 2,695,867 (105J183)

Speech Pathologist Salary SUppleme "

Telecommunications Access 270,460 (270,460)

Subtotal $31,842,611 $33,453,481 1,610,870 State Schools Metropolitan School $11,487,734 $12,302,546 $814,812 School for the Deaf ..6,570,993 6,624,798 53,805 Davies School 14,047,723 14,537,841 490,118 Subtotal $32,106,450 $33,465,185 $1,358,735 Other Aid Teachers' Retirement $80,225,355 $94,785,822 $14,560,467 School Housing Aid 49,663,976 56,996,248 7,332)272 Subtotal $129,889,331 $151,782,070 $21,892,739 LEA Subtotal $690,880,753 $691,688,804 $808,051 Total $884,719,145 $910,389,540 $25,670,395 D-4

Office of Budget Andres Blanco Christy Healey Technical Support Specialist II Supervising Budget Analyst Network Database Management Department of Environmental Management Information Processing Liaison.. Legislature Technical Support Judicial Oracle Budget Module Implementation Governor's Office Lieutenant Governor Carmela Corte Rhode Island Industrial Facilities Corporation Budget Analyst II Industrial-Recreational Building, Corporation Office of the Secretary of State Convention Center Authority Board of Elections Housing and Mortgage Finance Corporation Transportation Refunding Bond Authority Rhode Island Airport Corporation Housing Resources Commission Capital Center Commission Capital Budget Rhode Island Public Transit Authority Medical Benefits Rhode Island Turnpike and Bridge Authority

'Susan E. McCarthy Chief Implementation Aide Ronald Davidson Personnel Actions Budget Analyst I Office Management Department of Administration Department of Revenue State Police Dennis A. Michaud Municipal Police Training Academy Budget Analyst II Ethics Commission Department of Corrections Military Staff Rosemary Booth Gallogly Coastal Resources Management Council Executive Director/State Budget Officeri: .Office of the Public Defender;<

State Investment Commission Narragansett Bay Commission State Employee Retirement Board Clean Water Finance Agency Depositors Economic Protection Corporation Water Resources Board Tobacco Securitization Financing Corporation Water Resources Board Corporate Shanika Doctor Data Control Clerk Thomas A. Mullaney Chief Budget Analyst Bill Golas Oracle Budget Module Implementation Senior Budget Analyst Economic Development Corporation Public Higher Education Economic Policy Council Department of Labor and Training Quonset Development Corporation Business Regulation Partnership for Science and Technology Higher Education Assistance Authority Atomic Energy Commission Children's Crusade for Higher Education Health and Educational Building Corporation Student Loan Authority

Office of Budget Daniel R. Orgel Budget Analyst I Department of Elementary and Secondary Theo Toe Education Budget Analyst II Deaf and Hard of Hearing Department of Elderly Affairs Fire Safety Code Commission Department of Health State Fire Marshal Rhode Island Justice Commission Historical Preservation & Heritage Commission Commission on Human Rights Public Telecommunications Authority Public Utilities Commission Mental Health Advocate Rhode Island Developmental Disabilities Council NASBO Surveys Jayne Reuter George Welly Senior Budget Analyst/Economist Deputy Budget Officer Monthly Revenue Report Department of Human Services Revenue Estimating, Five Year Forecast Council on the Arts Tax Modeling Caseload Estimating Rhode Island Lottery Commission Economic Impact Studies Special Thanks to:

Kimberly Reynolds William P. McKenna Budget Analyst I Principal Strategic Planner Department of Children, Youth and Families Performance Measures Office of the Attorney General Commission on Women Boards for Design Professionals Governor's Commission on Disabilities Sharon R. Savicki Implementation Aide Fiscal Note Database Peder Schaefer' Chief Budget Analyst Local Government Finance Information Statement Retirement Five Year Forecast Gregory B. Stack Principal Budget Analyst Mental Health, Retardation and Hospitals Child Advocate E-911 Commission Commission on Judicial Tenure and Discipline Resource Recovery Corporation Treasury Department Appropriations Act

ML100220899

Text

Dear Mr. Kennedy:

Dear Governor Carcieri:

Enclosure:

Dear Governor Carcieri:

Enclosure:

SUMMARY

Title:

Reference:

Reference:

Reference:

Reference:

Reference:

SUMMARY

Description:

Description:

Description:

Description:

Description:

Dear Governor Carcieri:

Enclosure:

Dear and Hard of Hearing,

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