(Updated, 12:45 p.m.)
PROVIDENCE – The House of Representatives has approved a plan to close Rhode Island’s $220 million budget shortfall for the fiscal year that ends June 30 by reducing state aid to cities and towns, cutting public-employee pensions and borrowing from the rainy day fund.
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After hours of debate, the House voted 56-15 early Wednesday morning to pass the supplemental budget for fiscal 2010, The Associated Press reported. The measure now moves to the Senate.
Key provisions of House Democrats’ supplemental budget include:
The legislation would create a new $125 million loan guarantee program through the R.I. Economic Development Corporation to help knowledge-economy businesses hire additional workers. It also lifts the requirement for the Twin River casino to offer greyhound racing.
In radio interviews on Wednesday, Gov. Donald L. Carcieri said he would veto the supplemental budget unless some parts of it were altered. He called for eliminating COLAs altogether and said the state should not refinance its long-term pension debt to push costs further into the future.
Democrats’ majorities in both chambers of the General Assembly are so large they could override his veto if most party members backed the budget.
Once they finish closing the hole in this year’s budget, lawmakers will have to turn to eliminating the shortfall in next year’s.
In February, Carcieri released a $7.5 billion state budget blueprint for 2010-11 that would make further cuts to local aid, eliminate the film tax credit and use more federal stimulus dollars to close a shortfall estimated at $427 million.
Additional information is available at rilin.state.ri.us.
