2/3/10

What a Hole We're In!

Governor Carcieri's fiscal 2010-2011 budget recommendations are a lot to swallow. Under his budget proposals RI's cities and towns, as well as our public schools, will take a beating. I am not sure some of our municipalities will stay afloat financially should the General Assembly subsequently endorse the Governor's request for wholesale cuts of $135 million. Don't count on the legislature to go all the way with the Governor on this; however, they too will have to cut local aid substantially.

The Governor's budget also wants to swipe some $95 million in Medicaid funding to balance next year's budget. This is desperate stuff and shows how dire the state's fiscal situation is going forward.

When we read that RI will fall almost $2 billion in the red in the period 2012-2016, does anyone think we can grow - or even reform - our way out of this deep hole? I do not see how it can be done - do you?

3 comments:

  1. If the local governments try to raise taxes to cover what they will lose to the state, we're in for a tax revolt. I'm surprised the RI Tea Party hasn't been heard from on this issue. Raising property taxes will result in wholesale abandonment of homes, major loss of revenue and a whole lot of lawsuits that will jam the courts for years.

    People just cannot afford to live in RI anymore.

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  2. We're screwed. There's no way we can climb out if this hole. Dealing with deficits in the millions is bad enough for a state our size, but an accumulated deficit reaching $2 billion in five years is impossible. We can't cut so much or grow fast enough. It looks impossible.

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  3. This is really a turning point for all Rhode Islanders. Life as we know it is going to change. Pensions are going to be lost, state agencies are going to have to disappear, and local roads are going to crumble. The local towns and city look to the state and the state looks to the feds.
    I will bet that the state is going to get more aid from the feds. We will not be able to repay the loan or the interest, and oh yeah the feds are borrowing the money to lend to us from China.
    THE SOLUTION HAS TO START HERE. Either taxes go up or we have to be smart. Point out corruption and wasteful spending in the state. It is up to every individual to be honest and trustworthy. If we can't maybe we deserve to fail!

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