Lawmakers Approve $300M Line Of Credit: Coronavirus In RI

PROVIDENCE, RI — Rhode Island's top lawmakers convened at the State House on Thursday morning — while maintaining safe social distancing — to discuss an emergency $300 million line of credit to keep the state afloat during the coronavirus crisis. The four-person Disaster Emergency Funding Board unanimously approved the resolution allowing the state to borrow the needed funds.

The commission, which was established under Rhode Island law, is comprised of Speaker of the House Nicholas Mattiello, Senate President Dominick Ruggerio and the chairmen of the House and Senate finance committees: Marvin Abney and William Conley. Governor Gina Riamondo called for the board to meet to discuss her request that the state be authorized to borrow up to $300 million through an emergency line of credit. While several private options are being considered, the state also has the option to borrow from federal sources. According to the 1973 Rhode Island law that established the commission, the state has up to two years to repay the debt.

Sen. Conley said he wanted to assure the public and fellow lawmakers that the proposal was well-researched, saying that it was the result of a collaborative effort between Raimondo's Office, the state treasurer and other departments.

"I feel confident that [this resolution] has been vetted as much as any other proposal put before the General Assembly," Sen. Conley said.

Mattiello said he was "very comfortable" moving forward with the measure, especially considering that it was very unlikely to be replicated considering the extenuating circumstances the state currently finds itself in. The funding will only be used for short-term cashflow to address the fact that the state's revenues are suddenly "significantly strained" due to the pandemic, coinciding with an increase in expenditures. In addition, the state has followed in the federal government's footsteps and extended the tax deadline to July, delaying tax revenues until after the beginning of the new fiscal year.

"The steps taken today are necessary, prudent and limited in scope. These are extraordinary circumstances. We didn’t take this action lightly, but the potential consequences of inaction would be too great," Mattiello and Abney said.

The full meeting can be watched on the House of Representative's Facebook page.