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Carcieri: ‘Hard choices’ needed to right budget

01:00 AM EST on Tuesday, January 6, 2009

By Cynthia Needham

Journal State House Bureau

PROVIDENCE — Governor Carcieri will take to the airwaves tomorrow evening, delivering a budget address that will outline a dramatic midyear rewrite of the state’s budget in an effort to close a $357-million deficit.

All three local network television stations and WPRO-AM radio have agreed to air the 7 p.m. speech live.

While Carcieri regularly issues his annual State of the State speech on television, tomorrow marks the first time in his six-year administration that the governor will employ it for a major budget address.

It is also the first time the administration will lay out a budget correction plan –– known as a supplemental budget –– to close a shortfall brought on by a drop in revenues and departmental overspending, as well as the delayed approval of a plan to overhaul the state’s Medicaid system.

“These are truly extraordinary times. Rhode Island is facing unprecedented budget challenges that will require many difficult decisions to resolve,” Carcieri said in a statement. “My supplemental budget plan will include many hard choices necessary to bring the budget back into balance and to put the state back on the right path.”

Municipal leaders fear that he may take a bite out of one or more of the state aid programs, totaling $233 million, that include revenue sharing and reimbursements for reducing local car taxes.

Carcieri’s plan could also reduce spending across state government. Just yesterday, the administration invited proposals from outside consultants to review state employees’ benefits.

“The state is interested in a qualified firm capable of taking a creative, innovative approach to the rising costs of health care and employee benefits while maintaining fiscal responsibility,” the request for proposals reads.

The governor’s office has declined to share any details of its mid-year budget plan before tomorrow’s address.

Taking his message straight to constituents is not new for Carcieri, a frequent presence on local conservative talk radio programs.

“It’s a variation on that strategy of going straight to the people. It’s direct, it’s live and it’s not going to be mediated,” said University of Rhode Island political science professor Maureen Moakley. “I have a feeling he’ll get a good audience. It’s a prime time [slot] and everyone is curious about what’s going to happen.”

“This gives the governor an opportunity to set the record straight, right from the proverbial horse’s mouth,” said fellow Republican and incoming House Minority Whip John Loughlin, R-Tiverton. “There is a great philosophy to blame the governor for everything bad in this state and, quite often, there is not a counter point of view accessible to the people of Rhode Island.”

State House insiders were abuzz yesterday with questions and guesses about what the governor’s plan will entail.

Carcieri spokeswoman Amy Kempe said the administration had no plans to formally unveil the proposal to the legislature — which starts its 2009 session this afternoon after a six-month hiatus –– before the address.

But, said Kempe: “The governor and his staff have continued to meet with the leadership as the supplemental budget was developed, and will provide them with an in-depth briefing when the supplemental budget is complete.”

As of last night, legislative leaders had not yet been briefed, according to spokesmen for the House and the Senate.

— With reports from Katherine Gregg

cneedham@projo.com

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