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?