PROVIDENCE — Rhode Island’s economy and income are lagging behind the growth seen nationwide, according to a Rhode Island Public Expenditure Council report released Monday.
Between fiscal years 2019 and 2024, Rhode Island’s per capita personal income grew more slowly than the nation’s — 25 percent vs. 32 percent — and Rhode Island fell in that national ranking from 16th to 22nd.
As a result, the state’s tax and spending rankings rose when measured against residents’ ability to pay: In total spending, Rhode Island rose from 24th to 18th highest, relative to personal income, and in tax revenues, it rose from 15th to 13th.
“The cost of state and local government is outpacing Rhode Islanders’ ability to pay,” RIPEC president and CEO Michael DiBiase said in a statement. “Because our economy is growing more slowly than the nation’s, the same level of taxing and spending is taking a bigger bite out of Rhode Islanders’ incomes.”
The business-backed group released its annual 50-state comparison as it prepares to hold its 83rd annual meeting at 5 p.m. Monday at the Crowne Plaza in Warwick.
The report gives Rhode Island’s ranking in 32 revenue and spending categories and shows how those rankings have changed since fiscal year 2019.
“Our taxes overall, and especially our property taxes, are among the highest in the nation,” DiBiase said. “To address affordability in Rhode Island, policymakers should focus on both sides of that equation: controlling the growth of government costs and growing resident income.”
The report compiles taxing and spending in two ways — per capita and per $1,000 of personal income — to enable comparisons between states with different populations and income levels.
The report identifies areas where Rhode Island revenues and expenditures stand out, including:
- Rhode Island spent 1.7 times the New England level by income in public safety and ranked first nationally in fire protection.
- Property taxes ranked 10th highest nationally per capita and eighth highest by income.
- Education spending ranked in the top half of states, at 19th per capita and 24th by income — reflecting high spending on elementary and secondary education (11th and 8th) but low spending on higher education (45th and 43rd).
- In government administration spending, Rhode Island ranked seventh per capita and sixth by income while spending 1.6 times the New England level by income.
- Rhode Island had among the highest levels of federal aid — 10th per capita and 14th by income.
- Despite low incarceration rates, Rhode Island ranked 18th in corrections spending, rising eight spots by income.
- Sales and excise tax revenues ranked 17th per capita and 19th by personal income, marking a steep increase from 28th and 33rd in fiscal year 2019.
“State and local spending in Rhode Island has grown substantially in recent years, and in several areas, we spend far more than our peers nationally and regionally,” DiBiase said. “As policymakers confront affordability challenges, they should be asking what residents are getting in return for high taxing and spending.”
In public safety and government administration, DiBiase said, “Our high costs reflect in part the many services delivered by small local governments, not greater need.
“While we spend heavily on K-12 education, our student outcomes remain middling.”
Edward Fitzpatrick can be reached at edward.fitzpatrick@globe.com. Follow him @FitzProv.