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January 31, 2007

Governor unveils proposed $7 billion state budget

PROVIDENCE -- Calling it a time for “sacrifices,” Governor Carcieri this afternoon unveiled a $7 billion state budget that would shut most of state government down periodically to save money, lay off several hundred state workers and knock thousands off the state subsidized child care and health insurance rolls.

While there are no major increases in taxes, SUV owners and the scores of others who do business at the registry of motor vehicles would pay higher fees.

Carcieri relies on several accounting tricks, one-time sources of revenue and other gimmicks to balance his tax and spending plan.

They include raiding the state’s rainy-day fund for the first time in memory, selling the state’s future payments from a settlement with major cigarette manufacturers and selling state-owned land from Providence to Charlestown to Woonsocket.

Carcieri also ignores a projected $7.3 million deficit at the Rhode Island Public Transit Authority in his budget, essentially saying he will leave it up to RIPTA to figure out how to keep the buses running.

Overall, the proposed budget for the fiscal year starting July 1 raises spending by 5.3 percent. The budget draws on $3.2 billion in state revenues.

Examine the governor’s executive summary of the budget.

-- Journal State House Bureau reporters Scott Mayerowitz and Katherine Gregg

Posted by Kate Bramson  at 2:00 PM | Permalink

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