It appears from news reports that Rhode Island is looking at another year of red ink, but with the legislature focused on ways to improve the overall economy and address the poor business climate, Rep. K. Joseph Shekarchi is confident better days are ahead and surpluses will take the place of deficits.

When that happens, Shekarchi wants 50 percent of any surplus to go to cities and towns, to be used solely to pay for unfunded liabilities, bond debt or pension programs.

“I feel that any time the state has the opportunity to do so, it must help municipalities as they continue to struggle with their own budget concerns,” said Shekarchi (D-Dist. 23, Warwick). “When we see better days, we need to share that growth with cities and towns, which have been suffering through these tough fiscal times right alongside the state. If things get better financially, every city and town should get a little relief.”

Shekarchi has introduced legislation requiring that 50 percent of any surplus be distributed to cities and towns and that the municipalities use those funds only to pay for unfunded liabilities, bond debt or pension programs.

“This will help upgrade city and town bond ratings, saving taxpayers even more in the long run.”

The other 50 percent would be distributed to the state’s general fund.

“I believe this money should go back to cities and towns, but I also believe it should not be used for new goods or personnel,” Shekarchi said in a statement. “We all know it’s too easy to spend extra money, when there is any, on ‘other’ things that aren’t necessary instead of using it wisely. Our communities are struggling financially largely because of unfunded or under-funded liabilities, such as pension plans, and every extra dollar that can be used to address that fiscal situation should be.”

Shekarchi believes his proposal “is a way to increase aid to cities and towns without raising taxes or cutting services.” The 50 percent of any surplus that would go to municipalities would be distributed under the current aid to cities and towns formula.

The legislation (2014-H 7035) has been referred to the House Committee on Finance. Co-sponsors include Rep. Mia A. Ackerman (D-Dist. 45, Cumberland, Lincoln), Rep. Stephen M. Casey (D-Dist. 50, Woonsocket), Rep. Jeremiah T. O’Grady (D-Dist. 46, Lincoln, Pawtucket) and Rep. Joseph A. Trillo (R-Dist. 24, Warwick).

Shekarchi, who is serving his first term in the House of Representatives, is a member of the House Committee on Judiciary and the House Committee on Labor.