State Continues to Face Growing Budget Deficits
Rhode Island continues to face worsening budget deficits for the next five years. That’s according to new information from the state budget office. The red ink could cause cutbacks in government programs.
The budget office says lawmakers face a $150 million deficit for the fiscal year starting in July 2014. As it stands, the budget hole is set to keep growing,until it tops $400 million for fiscal 2018.
The budget enacted by the General Assembly in June made some relatively minor reductions in the state’s long-term deficits.
Yet the growing amount of red ink will put pressure on lawmakers to close the worsening budget holes. State revenue is expected to take a hit due to growing casino competition from Massachusetts, and a settlement in a lawsuit over the state pension overhaul of 2011 could potentially increase expenses for taxpayers.
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