PROVIDENCE – A new $7.7 billion budget proposal, unveiled in the R.I. House late Friday for fiscal 2012, differs greatly from the one proposed by Gov. Lincoln D. Chafee earlier this year, The Associated Press reported.
Chafee would have lowered the sales tax to 6 percent from 7 percent while imposing a tax on numerous currently untaxed product and services, including: dry cleaning, taxi fares and movie tickets.
The House proposal would tax a few currently untaxed items, such as software downloads, non-prescription drugs and sightseeing tours. The new taxes, if approved, would go into effect Oct. 1 and would raise an estimated $17 million.
The proposal was endorsed by the House Finance Committee. The full House is expected to consider it as early as June 24, one week ahead of the start for the new fiscal year on July 1.
The House proposes eliminating giving state workers bonuses based on tenure and increasing Medicaid premiums. It also bars the construction of new schools for three years.
Of the recommendations that Chafee outlined, the House included increasing public education funding and parking fees at state beaches, but leaves out other measures, such as higher pension contributions for state workers and lower business taxes.
The House budget proposal promises to eliminate a deficit once pegged at $331 million, the AP said.
That’s more than a little light on details which is typical of RI budgets where details are often unknown till the budget is passed.