Budget-repair bill OK'd by Finance Committee / Photo
5:28 PM Fri, Mar 27, 2009 | Permalink
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PROVIDENCE, R.I. -- The House Finance Committee has just approved its own previously unseen version of Governor Carcieri's $357-million deficit-cutting plan, and as anticipated it relies heavily on $140 million in Medicaid bonus money to close the budget gap, while also cutting municipal aid to the cities and towns by at least $55 million, hiking the cigarette tax by $1, raising the state's gasoline tax by 2-cents per gallon and taxing unemployment benefits the federal stimulus package sought to exempt. The vote was 14 to 3, with all of the committee's Republicans voting nay. The bill has been scheduled for a vote by the full House next Wednesday. But the reworked budget repair bill for the year ending produced a temporary sign of relief for state workers and teachers fearing the impact of pension cuts proposed by Republican Carcieri. To shave millions off the taxpayer cost of these pensions, Carcieri had proposed eliminating for future retirees the guaranteed 3 percent annual cost-of-living increases retired state workers and teachers get now, and making age 59 the new minimum retirement age. But the lawmakers put off a decision on pension charges to another day, while proposing to put a moratorium on the payment of $112 million in state and local pension contributions until the promised pension-reform package takes shape. The previously unseen bill was greeted with anger by the three Republicans on the Democrat-dominated committee, none of whom had been given a copy before the televised hearing began at close to 1:30 p.m. After questioning at length who authored the never-before seen proposal to hike the gasoline tax to raise an additional $9 million annually for the Rhode Island Public Transit Authority and a new pothole-repair fund, Rep. John Savage, a retired East Providence school principal, asked: "Will anyone from the public be allowed to testify?'' When it was clear the answer was no, he said: "It's a feeling of perhaps just frustration. If this is the way we run the state of Rhode Island, God help us.'' When pressed by the Republicans to disclose who fathered the gas-tax increase, House Finance Chairman Steve Costantino, D-Providence, took credit for the move, saying it was aimed at addressing concerns bubbling out of the cities and towns about the rough shape their roads are in after a bad winter, and RIPTA's persistent financial problems. CORRECTION: An earlier version incorrectly stated the amount of Medicaid bonus money being used to balance the budget. The state's gasoline excise tax currently stands at 30 cents per gallon, but consumers already pay an additional one-cent "environmental protection regulatory fee'' at the pump. The bill would raise the overall state budget for this year by $304.1 million to a new high of $7.2 billion. But the lion's share of the increase is supported by new federal dollars. The portion paid for by state taxes and other "general revenues'' would drop by $247.4 million. Costantino -- and his chief budget adviser, Michael O'Keefe -- said the bill does not include Carcieri's original pension-cutting proposals because they had not been properly vetted, and were based on what turned out to be inflated savings estimates. But in his opening remarks, Costantino said: "We are committed to making pension changes that are actuarially tested and that demonstrate the necessary due diligence to ensure they treat employees and taxpayers fairly, address the system's unfunded liability and produce immediate savings for FY 2009 and FY 2010.'' He also said the lawmakers felt compelled to adopt most -- though not all -- of the cost-cutting measures Carcieri proposed because they fear the current year deficit already exceeds $370 million and may get worse. He said, "The budget we put forward avoids using our rainy day fund to close the budget gap,'' holding it "in reserve in the event of [more] bad news.'' "Leadership is concerned,'' he said, "that further deterioration in our economy since November will lower the May revenue estimates and increase [cash assistance] caseloads, making it difficult to balance the budget by the close of the fiscal year.'' 
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As usual, these IDIOTS live in NEVER NEVER LAND with Donnie Boy as the head fool.
They are all wrong and I wonder how they manage their own budgets in their lives when they can not see the forest for the trees.
Where in the hell is all this money supposed to come from and I would theink that by taxing unemployment benefits that comes from the feds would maybe cancel out the federal money.
Also How can you take medcare dollard meant to help people and put into the huge money that you idiots created and call the budget balanced. Who is going to pay for the medical care of these medicare and medicaid people??? Have you people figured this out yet. I hope the feds do not just give this state millions and millions and not pay attention to what you all are doing with the money.
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Rob Peter to pay Paul. Hope the federal government does not mind the state using money that was intended for health care to fix the budget problem in the state. So now the elderly and infirmed or disabled will loose services and assistance. Lets hope the cuts and usage of monies intented for health care don't cause anyone's death from lack of medical attention or medications they need.
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It's too bad the democrats idea to help with our state's deficit is to increase gasoline tax and tax unemployment benefits. The answer is not to tax us more, but to cut spending to make this state more attractive to citizens and businesses. When are they going to realize that driving people out of this state ultimately makes the situation worse???
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Here's a copy of an email I just sent to "Letters to the Editor".
Sent: Saturday, March 28, 2009 6:59 AM
To: 'PJ Letters'
Cc: 'rep-fox@rilin.state.ri.us'; 'rep-costantino@rilin.state.ri.us'
Subject: The state budget is a joke
If it wasn’t so sad, it would almost be comical. In an effort to close the deficit, the House Finance Committee decides to raise taxes, as well as fully tax unemployment benefits (ignoring federal recommendations to exempt the first $2400), while deferring action on reforming the exorbitant, bloated pension system for state employees (“House finance panel OKs budget hole fillers”, 2009-03-28). I have no doubt that committee members Constantino and Fox will assure us that their decisions have nothing to do with the fact that unemployed people don’t make campaign contributions, and unions like AFSCME do. Apparently, the desires of the few outweigh the needs of the many.
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STOP RAISES TAXES! We are already the fifth most taxed state in the nation; I don't want the dubious distinction of being number one. We don't have a revenue issue; rather we have a spending problem. FIT THE SPENDING PROBLEM. Cutting municipal aid just kicks the can to the towns and cities but does not solve the problem. STOP KICKING THE CAN; it is time to cut expenditures not raise taxes.
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why would anybody want to be a teacher or state worker. your benefits and pension is on etch and sketch and can be shook and clear every year
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