Gov. Gina Raimondo has released a $9.25 billion budget plan that relies on new sales tax revenue from online retailers such as Amazon and cuts to Medicaid programs.
The Democrat submitted the plan to state lawmakers Thursday. It would close an expected $66.2 million shortfall in the 2018 fiscal year.
A projected revenue boost from online sales taxes is helping to reduce the state's structural deficit. Seattle-based giant Amazon recently announced it will begin collecting the state's 7 percent sales tax for the first time on Feb. 1.
New spending in the budget plan includes cutting municipal car taxes by 30 percent by reimbursing cities and towns $58 million for the lost revenue. It also proposes $10 million for the first year of a new free college tuition program.