By Steve Klamkin WPRO News
Governor Dan McKee Monday urged legislative leaders to approve his plan to spend a portion of the $1.1 billion in federal COVID relief funds to assist hard-hit small businesses largely in the hospitality industry, money that has, until now, gone unspent.
But lawmakers fired back, saying that McKee needs to submit a detailed supplemental budget request before they consider additional spending.
At a restaurant on Main Street in East Greenwich Monday, McKee was flanked by hospitality industry leaders who backed his call to spend about 10% of the federal American Rescue Plan Act funds.
“(If) we do things right, we’ll do it in a way to help us improve our economy in this state,” McKee said. “I’m tired of being the first in and last out of these economic downturns.”
House Speaker Joseph Shekarchi and Senate President Dominick Ruggerio issued a joint statement late Monday afternoon.
“On numerous occasions, we have told Governor McKee that he needs to submit a formal plan in the form of a supplemental budget if he believes additional expenditures of federal funds are necessary in the near-term. We can’t hold hearings without a formal proposal, complete with specifics.”
“Our top priority during this pandemic has been and remains assisting struggling Rhode Island residents and businesses,” the top lawmakers stated.
“That is why in the budget passed in June we appropriated unprecedented funds to help Rhode Islanders in immediate need, such as $63 million in small business credit, investment, and loan supports; more than $200 million in direct health and human services supports; and $200 million in housing assistance,” they said.
At the news conference with McKee in East Greenwich, Rick Simone of the Ocean State Coalition, comprised of restaurant owners and other small business owners, said his members continue to struggle.
“In some cases it may look like we’re coming out of this and we’re busier than ever, but the truth of the matter is, in some cases, in most cases, they’re just breaking even or are slightly ahead, and that’s where the extra support is needed,” Simone said.
