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February 1, 2008

Budget plan: Carcieri relies on cuts, fees to close deficit

PROVIDENCE – Governor Carcieri released a $6.88 billion spending plan today that seeks to close the largest budget deficit in nearly two decades by cutting millions from the state’s public college system, diverting hundreds of elderly, disabled and neglected children away from residential programs on a voluntary basis, and freezing state education aid to cities and towns.

The governor’s 2008-09 budget also dramatically reduces eligibility for the state’s welfare and subsidized health care programs, replaces hundreds of state employees with private contractors, and allows more than 200 prisoners to leave the Adult Correctional Institutions early.

Facing a deficit estimated by the administration at $384 million, the governor’s budget officer Rosemary Booth Gallogly said every effort was made “to share the pain.” Virtually every state department was targeted.

And Carcieri stood fast by his pledge not to raise taxes. The spending plan relies heavily on spending cuts to balance the budget, which is required in the state constitution.

Carcieri rolled out a handful of proposals to raise fees like creating tickets for drivers who talk on hand-held cell phones, but avoided oft-discussed moves such as selling the Ocean State’s bridges, privatize its lottery system, or expand gambling at the state’s slot parlors.

The release of the Republican governor’s budget marks the beginning of a process that will unfold over the next five months as the Democrat-dominated General Assembly debates the spending plan for the fiscal year that begins July 1. Ultimately, the legislators have the constitutional power to decide whether to accept Carcieri’s proposals or not.

Separately, the Assembly will debate a mid-year budget revision aimed at closing a $151-million deficit by the end of June. That proposal would require all state employees to take off six unpaid days in the next five months and includes a mid-year $12.7 million cut in non-school municipal aid for cities and towns.

The 2008-09 budget released by the governor today, however, doesn’t include specifics like furlough days, but assumes $60.6 million in “personnel savings that are currently being discussed with union leadership.” Carcieri’s staff would not be more specific.

EXTRA: Read the 180-page executive summary of the governor's proposed spending plan for 2008-9. (Note: PDF file, may take time to load in.)

Click below to read reaction to the proposal.

-- By Steve Peoples, Cynthia Needham and Katherine Gregg, Journal State House Bureau

A glum Dan Beardsley, director of the Rhode Island League of Cities and Towns, described a budget briefing held yesterday as “sadder than a wake at Nardolillo’s funeral home.’’

Staring at aid cuts for the second year in a row, he said: “The governor is again proposing the same, and in my opinion, outrageous fiscal policy of transferring the state’s fiscal problems to the cities and towns.’’

A handful of lawmakers who had been briefed on the budget said they had serious concerns about whether the governor’s plans were realistic, as many require cooperation from federal authorities, the court system, labor unions, and even the elderly and disabled people who would be affected.

“[The governor] puts out numbers that aren’t facts,” said Rep. Thomas Slater, D-Providence, a member of the powerful House Finance Committee. “I don’t think they’re real.”

More to come ...

Posted by Andrea Panciera  at 2:03 PM | Permalink

Comments

As always the govenor is leaving all his rich cronies off scott free and taxing the middle class which is almost extinct in Rhode Island, into the poor class. On top of that he is asuring them that there is no helping them by the state and all this while hypocritically smiling at the state residenet and saying he isn't raising taxes. NO HE'S just raising fees . Come on gov. we were fed the SOS by former Frank Leach REMEMBER him? why not pack your bags and get out os the state where you're not wanted

charlie M. | February 1, 2008 4:21 PM link

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