Governor Lincoln Chafee is winning a measure of plaudits for a budget with no new taxes and a proposed cut of the corporate tax from 9 percent to 7 percent over three years. But a tax initiative by Massachusetts Governor Deval Patrick is raising uncertainly about the net effect of Chafee's initiative.
After trying unsuccessfully for the last two years to get the General Assembly to go along with a series of tax proposals, Governor Lincoln Chafee goes in a very different direction with his proposal for the budget year starting July 1. The budget eschews tax hikes and proposes cutting Rhode Island's corporate tax from 9 percent to 7 percent over three years.
Making Rhode Island more competitive and getting Rhode Islanders back to work are central points of Governor Lincoln Chafee's State of the State address tonight.
Budget staffers and other members of the governor's administration held a background briefing for reporters a short time ago at the Department of Administration building on Smith Hill. The details are embargoed until Chafee begins his speech this evening in the House chamber.
But in addition to the points in the first sentence of the post, the Chafee administration also plans to emphasize:
(PROVIDENCE, RI) Gov. Lincoln Chafee gives his annual state-of-the-state speech Wednesday before a joint meeting of the General Assembly. The governor is expected to discuss the state’s stalled economy in his remarks.
Rhode Island Public Radio is airing the State of the Speech live along with analysis from the political team. Coverage starts at 7 p.m.
A pre-session House Finance Committee meeting this afternoon offered a mix of good news and bad news: a larger than expected current-year surplus of about $47 million will roughly cut in half the deficit for the budget year starting next July 1, from $130 million to $70 million.
But the state’s structural deficit could grow to about $400 million in five years, due in part to overspending in some state departments. In an interview following the meeting, House Finance chairman Helio Melo said the state needs to be more disciplined:
“It’s the holiday season,” as the song goes, and what’s December in Rhode Island without another Statehouse-tree related controversy? Mull that over along with my Friday column. Your thoughts and tips are welcome, as always at idonnis [at] ripr [dot] org.
The Board of Governors for Higher Education has just three full meetings left before it ceases to exist, at least in its current form.
The state is dissolving both the Board of Governors and the Board of Regents for Elementary and Secondary Education. Instead, a single board will oversee the state’s public schools and colleges and universities starting on January 1st, 2013. (No word yet, by the way, on when Governor Lincoln Chafee will announce his appointees for the new board)
Items the Board of Governors may address in its final days include:
The Board of Regents for Elementary and Secondary Education meets this week to consider a budget request for the coming fiscal year.
The Department of Education is preparing two scenarios: one for level-funding and one for a seven percent decrease.
This is one of just two meetings and two work sessions remaining before the board is dissolved in favor of a single Board of Education. The new board will oversee both elementary and secondary schools and Rhode Island’s three institutions of higher education.