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June 30, 2006

Update: Governor signs state budget into law / Photo

Journal photo / Andrew Dickerman
Govenor Carcieri motions for legislators to join him before the ceremonial budget signing at the State House today. From left are House Speaker William Murphy, Rep. Steven Costantino, House Minority Leader Robert Watson, Sen. Stephen Alves and Rep. Carol Mumford.

PROVIDENCE - Governor Carcieri signed a $6.7 billion state budget today that reduces some taxes while scaling back social services and cutting 420 state jobs to avoid a projected $243 million shortfall.

Carcieri signed the budget one day before the start of the new fiscal year.

"While it does not include all the reforms I would have hoped for, the budget plan that was passed by the General Assembly last week largely addresses the priorities I put forward in February," Carcieri said.

The General Assembly passed the budget a week ago after some last-minute wrangling in which House members voted to lower the state cap on property tax increases in return for Senate passage of the House's budget plan.

The spending plan closes a shortfall estimated at $243 million. Republicans and Democrats call the budget a fair deal in tough economic times.

It enacts tax cuts for high-income families and increases the car tax exemption from five-thousand dollars to six-thousand dollars. Carcieri says he soon expects to sign legislation limiting local property tax increases.

But the budget reduces health insurance for people leaving welfare from 18 months to 12 months. It also keeps new non-citizens from enrolling in the state's health insurance program for the poor after the end of the year.

-- Associated Press

Posted by Kate Bramson  at 5:15 PM | Permalink

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