This bill makes several amendments to current law regarding the allocation of state funds and state aid to cities and towns. It allows for the transfer of a portion of state income taxes paid by new employees of not-for-profit healthcare institutions and institutions of higher education to the city of Providence. It also changes the formula for apportioning state aid to cities and towns based on tax effort and per capita income.

The bill requires not-for-profit healthcare institutions and private educational institutions to provide information about their initial employment levels and new employees to the director of the state division of taxation and the chief financial officer of the city of Providence. It also requires the state to remit or transfer 25% of the state income taxes from the aggregate number of total new employees to the treasurer for the city of Providence. The purpose of this bill is to support the growth of these institutions in Providence.