PROVIDENCE – The state’s $6.89 billion budget plan for fiscal 2009 zipped through the Senate in a single day, winning approval last night by a vote of 36 to 2.
The chamber’s swift action – on a measure approved by the House only Wednesday (READ MORE) – was praised by Gov. Donald L. Carcieri.
“Working together over the last six months, we have successfully resolved a nearly half-a-billion dollar budget deficit without raising broad-based taxes,” he said in a statement last night. “That is a major accomplishment by any standard. But by contrast with past years, this budget plan represents a completely new way of doing in business in state government.
“I am particularly pleased that this budget will drive major structural reforms that will reduce projected deficits in future years,” Carcieri said. “I’m also excited that the General Assembly approved my proposals to reform both the welfare and state Medicaid systems.”
The Assembly budget for the fiscal year that begins July 1 calls for deep cuts for health, welfare and education, as well as state personnel costs. But it softens the blow for several key programs – including RIte Care, the state Medicaid program for needy families; the Head Start program for at-risk children; and the school breakfast program – cutting far less than the governor’s initial budget suggested. (READ MORE)
It has drawn praise from local business leaders for its avoidance of broad-based tax increases, though the plan will raise the tax on health and dental insurers by 40 percent, to 1.4 percent of premiums, and will increase fines for traffic violations.
“Everyone on Smith Hill deserves credit for this accomplishment,” Carcieri said last night. “The House and Senate, Democrats and Republicans all worked together to deal with the crisis that was confronting our state.
“I look forward to signing this budget plan into law,” possibly as early as today, he said.
The latest news and information from the R.I. General Assembly are available at www.rilin.state.ri.us. News from the R.I. Governor’s Office is available at www.ri.gov/governor.
