Politics
House expected to vote today on $6.89 billion state budget
11:05 AM EDT on Wednesday, June 18, 2008
PROVIDENCE –– The House of Representatives will gather this afternoon and fight deep into the night to approve a state budget aimed at closing a massive deficit that Governor Carcieri says threatens Rhode Island’s economic future.
But yesterday, on the eve of what might be the most important vote the General Assembly will cast this year, some lawmakers complained that they would be asked to vote on key elements of the $6.89-billion tax-and-spend plan that they had never seen.
Indeed, part of the budget hadn’t yet been written, never mind released to rank-and-file members or the public.
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Further, tens of millions of dollars in savings hung on labor negotiations that hadn’t been finalized. And less than 20 of the House’s 74 members attended a budget briefing explaining efforts to close the $425-million shortfall for the budget year that begins in 13 days.
“I’m concerned with the fact that we have a document that’s not prepared, that you’re not going to have time to filter through, you’re not going to have time to study,” said Rep. Rene R. Menard, D-Lincoln. “This is probably the single biggest vote you’re going to have all year, and I think it’s unfair to the members to have to make those split-second decisions without really understanding what they’re doing.”
Lobbyists and elected officials alike scrambled yesterday to push for eleventh-hour changes to the budget proposal that transforms the state’s long-term care system for the elderly and disabled, institutes more than $20 million in new fees and targeted tax changes, and cuts hundreds of thousands of dollars from community service organizations such as Meals on Wheels and the Rhode Island Food Bank.
The House Finance Committee last week released the budget proposal, but acknowledged that major provisions –– including $67 million in reductions to the state’s Medicaid programs –– would be changed before today’s vote.
“I’ve never seen this happen this way,” said longtime lobbyist and former state official Susan L. Sweet, a lobbyist for nonprofit senior centers whose state financing is being cut in half in the budget proposal.
At an unrelated news conference, the governor acknowledged that details on labor negotiations and Medicaid changes were still being worked out.
“From my perspective, there’s a lot of work [that’s] been going on for the last couple of days and, as we speak, still going on,” he said, adding that some things were starting to fall into place.
Ultimately, the governor said the state must cut its costs or jeopardize economic development with the prospect of higher taxes.
The budget proposal includes $90 million in personnel savings, through a combination of state employee benefit reductions that are being negotiated and unfilled vacancies created by retirements.
Carcieri refused to release details being negotiated, but said the agreement probably wouldn’t include unpaid work days for the coming year, which he had hoped would save taxpayers $26 million.
Would he pursue layoffs to make up the difference?
“At the moment, as we stand here, no,” the governor said, adding that he would instead depend on leaving open as many as 700 to 800 vacancies created by retirements. Labor leaders said a deal was “imminent,” and expected to have something in writing within 24 to 48 hours, according to Robert A. Walsh, executive director of the National Education Association of Rhode Island.
Meanwhile, while House leaders would not release written copies of sweeping changes to Medicaid and welfare programs, Finance Committee Chairman Steven M. Costantino held an open briefing for legislators yesterday afternoon. Less than 20 elected officials attended.
Costantino said he would introduce a budget amendment later today –– one of approximately 70 amendments drafted by members –– cutting eligibility for cash assistance, known as welfare, from a five-year lifetime limit to four years. Under the amendment, recipients would be allowed only two consecutive years of welfare in any five-year period.
The governor’s office reports that 9,950 families currently receive cash assistance, with an average monthly benefit of $440. The average family receives payments for 37 consecutive months.
Additionally, Costantino reported that the budget would give Carcieri the broad authority known as a “global Medicaid wavier” to reshape programs for elderly, sick and disabled residents. The plan would include, however, oversight provisions giving the Assembly 30 days to block any proposed changes.
Plans to cut funding for families of disabled children, known as the “Katie Beckett” program, are off the table, Costantino said. But the budget would cut 1,000 low-income adults from the state’s subsidized health-care program and around 250 children from the early childhood program Head Start.
Costantino acknowledged that it would be difficult to achieve all the savings listed in the budget –– especially from the Medicaid changes, which must be balanced in accordance with the state Constitution.
“We expect some slippage … that the savings won’t be met,” he said. “What’s my option if these don’t happen? To go deeper in cuts? I don’t want to go deeper in cuts if I can get these reforms through. We need these things to happen.”
Rep. Edwin R. Pacheco, D-Glocester, was among the rank-and-file members searching for answers yesterday.
“I think there are some very responsible changes that are being made. At the same time, assumed savings are a scary thing,” he said. “We don’t know fully if we’re going to save that money. And I’d hate to see us next year coming back and making these adjustments again and again and again.”
The Senate, which has already negotiated key budget provisions with House leaders, is scheduled to vote on the state budget Friday. It would then become law, barring a veto from the governor, which is not expected.
The Assembly is tentatively scheduled to recess for the summer Friday.
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