Governor McKee Voices Opposition to Rhode Island’s 2025 Budget Amid Tax Increases
Rhode Island Governor Dan McKee has publicly opposed the newly passed 2025 budget, highlighting concerns about multiple tax increases that he feels will burden families already grappling with inflation. The budget includes a 2-cent hike in the gas tax, an increased real estate conveyance tax, and a new sales tax on parking—changes McKee argues could have been avoided.
"I cannot support the budget act because the proposed tax and fee increases would make it even harder for Rhode Island families to afford everyday life," McKee stated. Without line-item veto authority, he allowed the budget to become law without his signature as a form of protest.
The budget was passed by the Democratic-controlled General Assembly, which McKee recognizes would likely have overridden any veto. House Speaker K. Joseph Shekarchi criticized McKee’s earlier budgeting decisions for miscalculating education aid and not fully accommodating union agreements. Shekarchi and Senate President Val Lawson justified tax increases as necessary for addressing pressing issues like healthcare and housing.
McKee argued that the Assembly missed a golden opportunity to utilize an unexpected $67 million revenue surplus to close funding gaps without raising taxes. He vehemently opposed the potential impact of tax increases on residents, especially the $48 annual fee per health insurer member and the hike on real estate transactions.
Republican Minority Leader Michael Chippendale dismissed McKee’s objections as politically motivated, pointing out similarities between McKee’s original budget proposal and the final one. This contentious budget debate sets the stage for McKee’s upcoming 2026 reelection campaign, where he could face prominent figures like Shekarchi.
As tensions escalate, McKee’s refusal to sign reflects deeper concerns over fiscal policies impacting Rhode Islanders, positioning the budgetary process at the forefront of the state’s political landscape.
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