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April 22, 2008

Update: Finance panel OKs little-changed budget plan

PROVIDENCE -- The House Finance Committee has approved a supplemental budget proposal that is little changed from the proposed budget unveiled by Governor Carcieri in January.

The committee passed the revised proposal in about an hour this afternoon, voting 12-0, with three abstentions. Voting to approve were the panel's Democrats; those abstaining are Republicans.

An amended version of the budget bill has been posted on the General Assembly's Web site.

In a briefing with reporters this afternoon, committee Chairman Steven M. Costantino said that most of the GOP governor's recommendations -- aimed at balancing a current-year deficit of $151 million -- were left as is or only slightly changed.

High among them is the plan to cut the health-care benefits of retiring state employees. The governor's plan called for instituting the cut by June 30. Despite heavy lobbying by state worker unions, the proposal going before the committee retains the cut but extends the date to Sept. 30. (Correction: An earlier version of this post incorrectly reported the extended date.)

Dennis Grilli, leader of Council 94, the largest state employees' union, said he was disappointed by the move. But, he said, he hopes there is still time to work on it between now and votes before the full House and Senate.

Three thousand state workers are eligible to retire now. Most are expected to retire before the cutoff date, to avoid losing significant health-care benefits.

Also:

The governor's proposal to cut non-education state aid to cities and towns by $12 million remains intact.

Dropping subsidized health care for about 2,800 immigrant children stays on the table.

And a proposal to end welfare benefits for adults and children after 60 months was left in.

In a statement sent out just before 5:30 p.m, Carcieri said of the Democrat-led committee's decision:

“While we have not had a chance to analyze it in detail, the revised budget plan presented today by the House Finance Committee appears to include many of the tough spending decisions I advocated in January.

“When I introduced my supplemental budget plan several months ago, I said that we needed to make difficult spending reduction decisions in a host of areas and that tax increases were out of the question. The House Finance Committee appears to agree.”

The proposal now goes to the full House for a vote, in a special session set for this Friday.

-- With reports from Steve Peoples, Journal State House bureau

The bill will address a budget gap in the fiscal year that ends in roughly two months -- June 30. The Assembly will consider a separate plan to balance next year's budget -- and a projected $384 million deficit -- later in the session.

The House Finance Committee has been working off a supplemental budget proposed by Governor Carcieri in January.

The governor's proposals included:

- Cutting state aid to cities and towns in the current year by more than $12 million.
- Cutting subsidized health care, known as RIte Care, for 7,400 low-income adults and more than 2,800 immigrant children.
- Cutting retiree health benefits for state workers who retire after June 30.
- Cutting welfare benefits for 3,400 children who have received benefits for longer than 60 months.
- Capping the Training School population at 148 boys and 12 girls.
- Creating a new $50 ticket for drivers caught talking on hand-held cell phones

Posted by Andrea Panciera at 7:00 PM | Permalink

Comments

Bravo... Finally the 'Light Went On'.

Bill Palazzo | April 22, 2008 10:07 PM link

Is the state still going to pay firemen 100,000 a year to sleep and do a job that people would like to volunteer for???

Should we sill pay cops overtime for sitting and talking on their cell phone????

CUT MORE!!!! ITS NOT FAIR TO TAXPAYERS!!!!THE PAYERS WANT THE CUTS!!!!!

s | April 22, 2008 10:28 PM link

It is what it is.

Juan | April 23, 2008 5:17 AM link

My husband died 18 months ago at age 49 from a staph infection he caught at Yale in the cardiac care unit. I have 3 children that are on Rite-Care. I am too. My husband worked 6 days a week to provide for his family. We had no life insurance so we are living on SSI. I can't work full time because I'll lose $1.00 for every $2.00 I make over the amount SSI allows. I have a mortgage, car payments etc. the list goes on. Why would the governor even THINK of cutting Rite-care for people that have worked in this country all of their lives and paid taxes??? We can't survive without it!!!! Go pick on someone else !!!!!!!!!!!!!!!!!!!!!!!!!

Joanne | April 23, 2008 6:44 AM link

Joanne states, "I can't work full time because I'll lose $1.00 for every $2.00 I make over the amount SSI allows."

Joanne, that's one problem with our welfare system. People don't want to work, because then they'll lose their "freebies". You're content to work part time and take gov't hand-outs instead of working full-time and making some extra cash (even if you did lose $1.00 for every $2.00, you still MADE the extra $1.00)

I'm sorry to hear about the loss of your husband, but taxpayers shouldn't have to support you and your children because you made the choice NOT to buy life insurance.

mike | April 23, 2008 11:15 AM link

April 22, 2008

Update: Finance panel OKs little-changed budget plan

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