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January 21, 2008

Carcieri to deliver 'state of the state' tomorrow

PROVIDENCE -- With state government facing a sea of red ink, Governor Carcieri will stand before a joint session of the House and Senate at 7 p.m. tomorrow and deliver what could be his bleakest “state of the state’’ address yet.

Carcieri is expected to focus on the short- and long-term fiscal challenges confronting state government, according to his office.

He plans to discuss the broad outlines of the decisions necessary to balance the budget deficit in the current fiscal year, which ends June 30, and next fiscal year.

The state faces a projected $151 million revenue-spending gap this year, and a potential deficit of up to $450 million in the new budget year that begins on July 1.

Under state law, Carcieri's budget proposal for the next fiscal year was due last week, but he asked lawmakers to give him until the end of the month to present it.

Other governors in the region have, in recent weeks, used their own state of the state addresses to talk about the strain national economic trends have placed on their own economies. Republican Carcieri is expected to do likewise while attempting to rally public and legislative support for cost-cutting measures -- such as the $12.7 million mid-year cut in municipal aid he proposed last week -- that have already evoked howls out of the cities and towns.

-- Katherine Gregg, Journal State House Bureau


Rhode Island is not alone.

In Maine earlier this month, Governor John Baldacci said: “Home heating oil and gasoline prices are at record highs. Winter, just a few weeks old, has already shown its teeth. The national economy is struggling under the weight of declining home values. State revenues are not immune from the national condition and are falling short of expectations…We are forced to make hard decisions and set priorities. ‘’

In Vermont, Gov. James Douglas said: “We must seek efficiencies…stretch resources while protecting the most vulnerable; and treat precious taxpayer dollars as if we earned them ourselves…Today, I lay out a series of proposals to achieve prosperity through affordability and to rethink, revitalize and reform the way our state approaches its most pressing challenges.’’

Fresh from reelection a year ago, Carcieri told the Democrat-dominated legislature here that Rhode Island’s “ship of state,” having righted itself, was “heading in a new and exciting direction,’’ but threatened by a continuing penchant for over-spending.

At that time, he said: “This has been the most difficult budget since I took office.’’

“As in recent years, ‘’ he said then, “Rhode Island is benefiting from continued growth in revenues. However, each year our appetite to spend exceeds our resources. Every family watching tonight knows that if they’re only getting a 2% pay raise this year, they can’t spend 9% more…’’

A year ago, he also said: “The combined, two year projected excess of expenditures over revenues (is) almost $360 million…Balancing this budget will require sacrifices everywhere. We must further reform our entitlements, demand more cost-effective services from our vendors, develop new service models, and reduce our personnel costs. ‘’

Immediately following the governor’s speech, House Majority Leader Gordon D. Fox, D-Providence, and Senate Majority Leader M. Teresa Paiva Weed, D-Newport, will “offer the perspective of the General Assembly’s Democratic Party on the condition of the state and share their vision for Rhode Island’s future.’’

The address is expected to be broadcast live on television by NBC 10, WPRI 12, and by Capitol Television (which can be viewed on Channel 15 of both Cox Cable of Rhode Island and Full Channel Cable). It will be broadcast live on radio by WPRO 630 AM, WHJJ 920 AM and WRNI 1290 AM.

Posted by Mike McKinney  at 3:41 PM | Permalink

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