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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

Comments

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.

Ally | November 9, 2007 7:42 PM link

Lets start saving by firing all the ex Old Stone execs that Don has hired and tell the state police they'll have use their existing HQ till we can afford to build a new one.

Oh Yeah and tell Williams that new Court house in Lincoln is off the table.

I could balance the budget in a week.

Jim | November 9, 2007 8:03 PM link

It'll be interesting to see how the union-schill Dem fat-cats in the Assembly will spin this to make it the governor's fault. Somehow, the masses seem to forget that the Assembly, those same union and labor suck-ups, are the ones that actually pass the budget every year. . . and they ALWAYS change the governor's budget, so we should be blaming them and not the governor.

Dan-o | November 9, 2007 9:01 PM link

Good news-
Start dismantling the union/welfare Marxist economics this state has been burdened with for decades.
401 K's for all unvested state/municipal workers, reduced staffing levels, reduced pay and benefits and minimum welfare benefits so the leeches will leave for greener pastures like Massachusetts.

Mike | November 9, 2007 9:17 PM link

How much is the Gen. Assembly's "mad money" budget? Let's cut that to the bone!

Bob Comerford | November 9, 2007 9:26 PM link

I have no doubt this will still not wake up anybody in our State to get rid of the thieves in the House and Senate. The one's who veto all cuts and create more over spending. We will be bankrupt soon and this State will not look the same in 5 years. The Unions and Dems are ruining the state. 1,000 jobs?? Try 3,000 and we still won't be close to just closing the debt. Schools will lose ....social services will be creamed. So time to fix it now instead of later. It will trickle down to towns.....Thank you Senate and House you have and will continue top destroy us with your CRIMINAL behavior.

S | November 9, 2007 9:32 PM link

Governor Carcieri just admit it your a failure as a Governor. Just do it raise taxes already or lay off all the state employees LOL

steve | November 9, 2007 10:23 PM link

Where is all the gambling revenue from Newport Grand, Twin Rivers, the over 100 lottery tickets sold over counters plus Power Ball going to? If the answer is: "the general fund," then the public should demand to know how that general fund is being spent.

john | November 10, 2007 5:55 AM link

Ok, We are facing a potential 450 million dollar deficit next year. Here's the solution we all know will be coming based on what has gone on in the past. The Governor will say that jobs and entitlement programs will have to be cut because of the lack of revenue(taxes)coming in. That's what a businessman does when his company is in the red. The unions will vow not to give up anything covered or not covered in the contracts to save their jobs and cry about how these are people we're talking about not numbers on a page. The legislature will talk about how its not that bad and it's not their fault although it is their budget. The poverty activist will march, hold rallies, and demand higher taxes. Existing businesses will close, layoff people, or leave the state. New companies will look to other states in New England to locate in that don't promise tax breaks to come here and then lie about it. They will go to states that are not referred to in national magazines as "Tax Hell." Governor Sundlun will talk about how it was so much better when he was governor. Governor Almond will take his head out of the sand and start singing "Don't Worry, Be Happy." The wealthy will move away and the illegals will come for the easy, free money and benefits. And through it all, the average middle class worker who is trying to do the right thing and follow the rules and obey the laws will continued to be nickeled and dimed to death until he finally gives up and just puts a bullet in his brain to stop from feeling the pain of trying to get through another day in Rhode Island.

Yep, just another day in RI. Laugh, because If you don't you'll cry.

Chris | November 11, 2007 8:42 PM link

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