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January 22, 2008
Carcieri: RI on brink of financial disaster
Governor Carcieri told lawmakers tonight that the state is teetering on the brink of financial disaster.
“The State of the State is at a tipping point,” he told a packed chamber of senators, representatives, judges and mayors. “If we are not willing to make the hard choices, then the tipping point will lean to the side of disaster, and we will have failed the people who sent us to serve them.”
Republican Carcieri served notice he hopes to bring public employees’ work weeks and compensation packages “back in line with the vast majority of private-sector employees,’’ impose a firm two-year time limit on welfare benefits, put city and town employees in one health-care plan with state workers, and adopt what he billed as a “Medicaid Reform Plan’’ aimed, in part, at keeping more senior citizens out of costly nursing homes.
“This crisis presents us with an unprecedented opportunity to make fundamental and lasting change that will quicken the transformation of Rhode Island from a ship today that’s taking on water to a world-class vessel,’’ he told the lawmakers in his annual State of the State address.
Not since the credit union crisis of the early 1990s has the state faced such large and imminent deficits: $151 million in the current year, up to $450 million in the budget year that begins on July 1.
-- Journal State House Bureau
Extra: Read the governor's prepared remarks for tonight's speech.
Only once in a seven-page speech did he direct his pleas for help and cooperation at the state lawmakers seated in front of him, and that was when he asked “the General Assembly, the public employee union leadership and all municipal officials to work together with my administration to find ways to implement these changes.’’
The reception from some quarters was chilly.
“He says, ‘This is my agenda and everybody has to work on it.’ That’s a corporate approach. That’s one-side unilateral approach. That doesn’t work,” said AFL-CIO Secretary-Treasurer George Nee. “The governor should be a leader of bringing people together to have people solve joint problems, not just work on his agenda. That’s the problem.”
But in her own prepared remarks, Senate Majority Leader M. Teresa Paiva Weed, D-Newport said: “We are committed to working with the Governor to resolve the current budget crisis.’’ Added House Majority Leader Gordon D. Fox, D-Providence: “At the end of the day - we in government must continually remind ourselves that we all work for the taxpayers.’’
During most of Carcieri’s televised time at podium, he aimed his appeal at an audience outside the State House.
“Let me take a few moments to talk directly to every Rhode Islander who is watching this address on television, listening on the radio or reading about this in the morning newspaper,’ he said. “Most of you only want to know one thing: “What does this plan mean for me and my family?
“The answer is --- No tax increases! If this plan is implemented, your taxes won’t go up,’’ he said.
During the speech, the reaction from the lawmakers seated in the chamber was cool. Carcieri was interrupted only twice by applause – and the clapping largely came from a small group of Republican legislators. The only standing ovations came in response to the governor’s introduction of decorated combat veterans.
He promised the budget he proposes to lawmakers in the coming weeks will cut state spending by $300 million between now and the end of next year – resulting in a budget “that is less than the previous year (for) the first time since the credit union crisis.’’
But he provided few details, listing instead the broad areas in which he hopes to cut state spending, including public employee “wages, health care costs and pensions;’’ welfare, social service and other “entitlement programs,’’ and payments from the state to municipal government.
-- Journal State House Bureau
Posted by Andrea Panciera
at 10:31 PM | Permalink
I think its about time this state had an overhaul. We pay too much taxes to begin with. If the teachers and state workers do not want to participate in the new budget plan, Then let them move to another state. There's plenty of people looking for teacher's jobs. As for the welfare,take them off it and the state should limit the number of children a mother will have, in which the state will pay welfare. If she cannot keep her legs closed, well too bad. Get your tubes tied.
In July 07, there was an article about 6600 families on the welfate program, where the state social Dept. punch in a 666 code as an overide. This overide is used if no green card or no social security card can be produced. Well, its about time they are taken off the social rolls. Let them find a job or go to another state that will support them.
When you take all the taxes that WE TAXPAYERS pay, including Federal, State,SSI,health insurance, property and sales tax, what we talking, how about 32-35% thats what.
Lets work together RI, Keep our taxes down, for us and for our kids futures.
Posted by: steve at January 22, 2008 8:26 PM
The pension system should be abolished, and replaced with 401ks.
There should be a hiring freeze.
City, State and town workers should pay 50% of their health care premium.
We should have the lowest per capita number of state workers in the US, not the highest.
Contract negotiators should have the competence and training to actually negotiate for the tax payer.
Posted by: BreaktheUnions at January 22, 2008 11:29 PM
The give away pensions the city and state employees will come to bite them in the butt shortly.
Posted by: Bill at January 23, 2008 12:17 AM
It is the public elected officials responsiblity to fix this..not the special interests. Anyone who takes their eye off this problem and does not focus on this problem ....becomes part of the problem and should be identified as such....if we fail at this...last one out shut the lights off.....
Posted by: David B Campbell at January 23, 2008 5:13 AM
So much for the "great" businessman Don Carcieri, who promised us during the 2 campaigns that he was the man for the job. It's a shame he's done such a poor job and thank goodness he's out of office before long.
Posted by: A Devine at January 23, 2008 5:40 AM
Let's hope this goes into effect. Fat chance, with the Democratic controlled legislature.
The greedy unions and state workers' humongous benefit packages are not only trashing ordinary workers/taxpayers but are finally destroying the state.
I couldn't believe the large amounts of money unions are paying RI state legislatures reported in an article yesterday or the day before. Such blatant corruption. The pack of them, legislators and union officials alike, should be thrown in jail for a long time.
Posted by: joyce at January 23, 2008 6:16 AM
RHODE ISLAND: HERE IS ONE OF YOUR PROBLEMS:
“He says, ‘This is my agenda and everybody has to work on it.’ That’s a corporate approach. That’s one-side unilateral approach. That doesn’t work,” said AFL-CIO Secretary-Treasurer George Nee. “The governor should be a leader of bringing people together to have people solve joint problems, not just work on his agenda. That’s the problem.”
Posted by: Paul W. at January 23, 2008 7:04 AM
With all the money in Newport, Barrington, Little Compton and East Greenwich, why is he targeting the middle class? Because a Republican dare not announce tax increases for the wealthy? Bring on a Democratic governor, who'll work with the legislature for the middle class. Too much time and energy has been spent squabbling with the General Assembly. Let's see what the Democrats could do when it's all on them and they don't have a GOP governor to blame.
Posted by: Harry Haller at January 23, 2008 11:31 AM
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