Governor Gina Raimondo on Tuesday said she'll continue to back a settlement to high-stakes pension litigation "on the right terms to the state."
As state treasurer, Raimondo spearheaded the 2011 overhaul of the state pension system that shaved about $4 billion from the state's long-term obligations., The savings were achieved by raising retirement ages, suspending cost of living adjustments and moving workers from a defined benefit plan to a hybrid defined contribution plan.
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Legislative leaders Thursday praised the first budget presented by Governor Gina Raimondo. House Speaker Nicholas Mattiello said the spending plan avoids broad-based tax increases while promoting economic development.
“I think the overall balance is good, even though some of the decisions within that balance – whether they’re on the revenue side or the cut side – is something that none of us want to consider,” said Mattiello.
Governor Gina Raimondo on Thursday touted her $8.6 billion budget for the fiscal year starting July 1 as a plan that will begin the rejuvenation of Rhode Island's economy.
At the same time, some parts of the spending plan rely on uncertainties, including $46 million in unspecified Medicaid savings and the wiping out of millions of dollars in un-budgeted pay hikes promised to state employees during the Chafee administration.
Rhode Island faces a big financial gap as Governor Gina Raimondo prepares to unveil her first budget Thursday. State law requires a balanced spending plan, and Raimondo has pledged to improve Rhode Island’s economy while wiping out the red ink. But that will be no easy task.