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By Steve Peoples PROVIDENCE, R.I. -- Governor Carcieri tonight will offer a hopeful assessment of the state of affairs in Rhode Island, while warning that difficult choices lay ahead for state workers and municipalities as the state grapples with double-digit unemployment and ballooning budget deficits. "There is no question these are tough times. Last year at this time, I warned that Rhode Island was at a tipping point. Now, our condition is more fragile and perilous, and we need to act boldly," the governor said in a draft of his annual State of the State speech released this afternoon. Carcieri is scheduled to deliver the speech, his seventh and second-to-last State of the State address, to a packed House chamber beginning at 7:01 p.m. Both chambers of the General Assembly will be on hand, as will the governor's Cabinet and the state's general officers. Three television networks plan to air the speech live. Projo.com will also carry a Webcase of the speech via wpri.com. In the speech, the governor devotes little time to the state's specific economic woes. He does not mention, for example, Rhode Island's unemployment rate of 10 percent -- among the worst in the nation -- or spiraling budget deficits that may reach a combined $1 billion this year and the next. Acknowledging broad challenges, however, Carcieri issues familiar calls to reduce state spending, cut retirement benefits for state workers, and focuses considerable attention to pressuring cities and towns to do their part. "The state has reduced employment by 25 percent, while the cities and towns have increased employment by 38 percent," Carcieri says. "Ladies and gentlemen, that's why your property taxes are so high and keep rising." And the governor also reiterated the need to bring new businesses to Rhode Island. Specifically, he said he would "phase out the corporate income tax," and "eventually eliminate our estate tax." Eliminating the corporate income tax alone would save businesses an estimated $82 million this year, but further strain the state's already-weak revenue sources. It's unclear when the governor would unveil his specific plans to change the tax code, although the State of the State address has recently become a preview to Carcieri's budget proposal for the coming fiscal year. His budget is expected to be released in the coming weeks. And as expected, the governor's speech also urges caution in depending too much on the federal stimulus package moving through Congress to balance the state's budget. "To squander this stimulus by avoiding the hard decisions would be an enormous shame, and a great opportunity lost," he says. "I don't want our children and grandchildren to pay the price for our lack of courage." In order to ensure the federal funds are spent wisely, Carcieri says he signed today an executive order creating the Office of Economic Recovery and Reinvestment "to establish a transparent process to administer these federal funds." "As Washington gets closer to passing the stimulus package, it is critical we have the right structure in place to quickly move forward with projects and ensure appropriate use of taxpayer dollars," he says. And while he did not say that the state of the state is strong, the governor devotes several pages of his speech to touting recent achievements. He cites the recent adoption of major Medicaid reforms, "steady progress" in the state's primary and secondary educational systems, record-breaking levels of environmental protection and new infrastructure investments. CommentsLeave a commentPlease be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish. |
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The Governor mentioned the 17% of state retirees who leave and take their pensions to Florida and other states. They leave because there is no fiscal advantage to staying here and the weather in most cases is better. Housing is cheaper. Anyone can Google the states and see for yourself (retirement living -taxes by states). Look it up, do a comparison. You will see the reasons why: Sales tax. Personal retirement savings, Social Security, State and Federal Pensions, in Rhode Island are all taxed and property taxes are through the roof. Why would anyone stay here? The roads are in disrepair and don't get plowed. We should model ourselves after New Hampshire which has similar weather conditions.
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Office of Economic Recovery and Reinvestment, just what we need another place for Enron Don to give six figure salaries to his former Old Stone Cronies.
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BULL PUCKY!!!!!!!!!!!!!!
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Yes we must act boldly to put the onus of bailing out those who caused this mess on the backs of the middle class. Boldly? That's bold? Chicken, cowardly, craven, dastardly, poltroon, afraid, apostate, base, cowering, craven, defecting, falsehearted, fearful, frightened, gutless, hesitant, low, mean-spirited, perfidious, pigeonhearted, scared, skulking, sneaking, spiritless, timid, timorous, traitorous, treacherous, , unmanly, vile, yellow, recreant, scaredy cat, and yellow belly maybe, but bold? I don't think so.
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The deficit was less when you took office you are to blame.the people need to come together to impeach you
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Get rid of the prevailing wage rate law. Time has come!
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I lived in RI most of my life 51 year to be exact. I can't believe the situation there now.. how could they let themselfs get into such financial hot water...except for CA the state is in the worst condition of any in the country... spend, spend, spend worry about who pays later... part of the problem is the federal government... the keep passing laws usually involving educations which the state has to fund as they do not... but get real stop the pork spending... why do you think all your college grads go else where to work... no jobs, small salary, high taxes and housing...
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