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November 9, 2007
A new -- and much higher -- figure for state's deficit
PROVIDENCE – They knew it would be bad, but the state officials gathered in the State House basement today didn’t think it would be this bad.
Rhode Island is facing a budget shortfall of at least $150 million for the fiscal year that ends next July.
And the deficit for the following year – a number Governor Carcieri has consistently put at $200 million in recent weeks – is now estimated at between $400 and $450 million, according to projections from House Fiscal Advisor Michael O’Keefe based on numbers finalized at today's Revenue & Caseload Estimating Conference.
In the minutes immediately after the conference was over this afternoon, the state officials who had spent much of the past week pouring through economic data at the sparsely attended annual meeting had no choice but to resort to humor.
“If anybody has any ideas how to resolve this, let me know,” the governor’s budget officer, Rosemary Booth Gallogly, said with a defeated smile.
Kevin Madigan of the Senate fiscal office let out a mock cheer: “It’s not $500 million, yay!”
Despite attempts at humor, the implications of the conference are serious. Governor Carcieri is required by law to use the projections in the 2008-09 budget he will present in January.
Knowing there would a deficit, he had already proposed a sweeping plan to save $100 million by cutting the state’s workforce by 1,000 jobs. His budget-balancing plan had also included saving $50 million by reducing worker benefits and another $50 million by cutting or consolidating social services programs.
Today, he also announced a change in plan for a new State Police headquarters, keeping it in Scituate instead of moving it to Cranston, a step he said would save $36 million.
It is now clear that he will have to do much more to propose a balanced budget, which he must do by law.
-- Steve Peoples, Journal State House Bureau
Posted by Steve Peoples
at 6:40 PM | Permalink
Ally | November 9, 2007 7:42 PM link
Jim | November 9, 2007 8:03 PM link
Dan-o | November 9, 2007 9:01 PM link
Mike | November 9, 2007 9:17 PM link
Bob Comerford | November 9, 2007 9:26 PM link
S | November 9, 2007 9:32 PM link
steve | November 9, 2007 10:23 PM link
john | November 10, 2007 5:55 AM link
Chris | November 11, 2007 8:42 PM link
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Sure, Ms Gallogly can joke about not knowing how to resolve the budget problem the state is in. Is it her job to project and recommend to the Governor of present and future fiscal spending to keep the state from going into a serious deficit, NOT, they just created another $100,000++ position to do her $100,000++ job, its the head of the new department of revenue. They should do away with these top officials who make over $100,000 and see the deficit shrink dramatically.