Chafee calls for sales tax changes in budget proposal

PROVIDENCE, R.I. – Governor Lincoln Chafee made his first budget address Tuesday night. For fiscal year 2012, the governor proposed financial aid to cities and towns, supporting the school funding formula, and a boost in higher education.

But Chafee also called for cuts, specifically $60 million to Health and Human Services, which will make up some 40 percent of the next state budget.

"By reforming payment and service delivery, restructuring existing contracts, and improving oversight of our programs, we can cut spending by over $60 million in FY 2012," Chafee says.

On the revenue side, the governor's budget plan calls for lowering the sales tax from seven to six percent and broadening that six percent tax to include services such as dry cleaning, hair salons and landscaping.

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