WPRO News and The Associated Press
Gov. Gina Raimondo is calling for greater spending on education, tax credits for businesses and other initiatives to create jobs.
The Democratic governor unveiled an $8.63 billion budget in her first budget address to lawmakers Thursday.
Her plan for the fiscal year beginning July 1 seeks to eliminate a $190 million deficit while implementing no new broad-based tax changes.
“It’s not time to be passive, or timid, or sit on our hands,” said Raimondo.
“We’re falling behind other states, and you know who’s bearing the brunt of it? Our families. The families that are underemployed and unemployed and working full time and barely making ends meet,” she said, as she outlined her proposal to increase the minimum wage further to $10.10 per hour by 2016.
Raimondo proposes closing the deficit largely through spending cuts. Health and Human Services faces the largest cut, at nearly $94 million.
Raimondo says nearly $12 million could be raised if Rhode Island implemented a statewide property tax on second homes worth more than $1 million, and another $7 million if the cigarette tax increased 25 cents.
Among the new initiatives, Raimondo wants to spend $20 million to rebuild and modernize schools.
She also proposed reducing personnel costs by working collaboratively with state employee unions to minimize disruption, avoid significant layoffs and “honors the pay increases of the most recent contract.”
“For my part, I’m going to begin by cutting my own pay by 5% this year,” Raimondo said.
Legislative leaders generally praised Raimondo’s budget.
“I believe that the Speaker, the Governor and I share a common vision to move Rhode Island forward,” said Senate President Teresa Paiva Weed (D-Newport). She said the three had worked collaboratively in developing the budget proposal.
“I think it’s a very good starting point,” said House Speaker Nicholas Mattiello, (D-Cranston) of the governor’s spending plant.
“I applaud her for producing a budget which I believe is pro-economy, and pro job growth, and we’ll use that to collaborate and come up with a great product for our citizens,” said Mattiello.
Senior Deputy Minority Leader Rep. Michael Chippendale, (R-Foster, Coventry and Glocester) also praised Raimondo, saying there were parts of her budget that Republicans can embrace, and other parts with which GOP members disagree.
“The Governor’s tone and pitch was extremely optimistic, which makes us extremely optimistic,” said Chippendale. “We look forward to working with the Governor. We look forward to working with the Speaker and the Senate as well.”
