Rhode Island Tip Sheet: Chafee’s first budget

STATE OF THE STATE: In case you haven’t heard, Governor Lincoln Chafee presented his first budget yesterday evening. As with any state budget, this $7.6 billion colossus has elements that generally gain plaudits (education funding, cuts in business taxes); criticism (increased pension contributions for public sector employees, more bailout money for Central Falls); and a mixture of both (most notably, Chafee’s tweaking of the state’s sales tax). Chafee calls his spending plan part of initial steps to prosperity. The General Assembly will parse it in the months to come, ultimately deciding the state’s fiscal plan for the 2012 budget year.

REACTION-APALOOSA . . . .

REPUBLICANS: House Minority Leader Robert Watson (R-East Greenwich): “I don’t like that we are relying upon tax increases as a solution for the budget problems. I think we need to look deeply at the methods in which we deliver government product, government services, and find ways to contain costs there.” . . . . Ken McKay, aspiring state GOP chairman:  ”This is the real problem with tax and spend liberals, whether they are independents or Democrats.  Once they open the door on taking more of our money to solve their problem it is easy to take more and more from us — even while many of Rhode Island’s working families are one pink slip away from personal financial calamity.” . . . . Travis Rowley, chairman of the RI Young Republicans: “The man sitting at the helm of one of the highest taxed states in the country has just decided that the solution to our problems is more taxes . . . . Until progressives and Democrats decide to attack the state’s structural overspending habits, the root of Rhode Island’s problems, we will continue to sink further away from economic recovery.”

SENATE PRESIDENT TERESA PAIVA WEED: “I think the governor showed leadership and balance. He set the tone for the conversation that we need to have and the challenges we face. Certainly, as with any budget, it will be subject to hearings, and discussions and proposals, but what I think what was most important to me was the theme he established, and in particular, I was very happy with his commitment to education.” Asked whether she supports Chafee’s tax plan, Paiva Weed says, “Certainly, we need to talk about the revenue side of the equation, but until we’ve had an opportunity to examine the budget, it would be too early to discuss any of the specifics.”

THE RHODE ISLAND STATEWIDE COALITION: “RISC says the budget proposal put forth by Governor Chafee Tuesday does not represent a true ‘share the pain’ approach between taxpayers and public sector workers, and calls the proposed plan to create a whole array of new taxes on numerous everyday services and transactions a severely misguided approach in the midst of an ongoing recession. ‘To say this budget is way off the mark of what we needed to see is a gross understatement,’ remarks RISC Executive Director Harriet Lloyd. ‘There’s too much of an emphasis on new taxes and far too little of an attempt to address any real pension changes.’ ”

ECONOMIC DEVELOPMENT CORPORATION DIRECTOR KEITH STOKES: “Governor Chafee clearly recognized that the cost of doing business, which is equated to taxation, in Rhode Island has to be equal to or better than the other New England states. It’s not a Rhode Island economy, it’s a New England economy. So the governor’s putting forth a budget that begins to create a predictable, uniform, competitive tax structure, particularly the corporate tax rate, for Rhode Island to compete in a New England economy.”

PROVIDENCE MAYOR ANGEL TAVERAS: “In light of the serious financial crisis we have in Providence, I appreciate the Governor’s commitment to increase aid to distressed cities. We are also pleased that the Governor has implemented the new school funding formula, which will provide Rhode Island communities with the resources to give our kids the education they need and deserve. The economic recovery of Rhode Island is inextricably linked to the success and fiscal stability of Providence. With this budget, the Governor has made clear that he recognizes this connection and is committed to working collaboratively with us to move Providence and the State of Rhode Island forward.”

NATIONAL EDUCATION ASSOCIATION RHODE ISLAND PRESIDENT LARRY PURTILL: “I’m certainly happy [Governor Chafee's] looking at generating revenue, and there’s more money for higher ed, but in reaction to the pension, I’m obviously concerned. At three percent, it’s a huge hit for both state employees as teachers.”

M. CHARLES BAKST (via Ted Nesi): “I thought it was an excellent speech in that it distanced itself from ideology and divisiveness and sought to get all Rhode Islanders pulling in the same direction. Not that everyone will be happy. Labor, for one, will grumble. But no one can say he is trying to balance the budget on the backs of just one segment of society.”

LONG-TERM VIEW: State Budget Officer Thomas Mullaney, during a press briefing yesterday, outlined how Chafee’s budget will reduce the state’s structural deficit from previous estimates: from $416 million to $126 million for FY 2013; from $458 million to $200 million for FY 2014; and from $536 million to $296 million for FY 2015 . . . Chartmaster Nesi has a nice chart of this.

NPR PRESIDENT VIVIAN SCHILLER RESIGNS: Statement here from NPR’s board of directors . . . . This comes after a stormy six months . . . .  NPR listeners and journalists react . . . . The snap reaction from Dan Kennedy is good riddance. (FYI: WRNI and NPR are not one and the same. NPR is a national network based in Washington, DC. Providence-based WRNI is RI’s NPR station.)

R.I.P., DAVID BRODER: He was one of the great DC journalists.

COOL WORLD: Charles “Chip” Young, Phillipe of Phillipe & Jorge, splits his Phoenix column for GoLocal. As Chip’s former editor, I wish him well with the change.

CROWDSOURCING: We’re still seeking a new name for WRNI’s political blog. The winner gets an expense-paid lunch with me and Scott. E-mail me at the address below. 

BIRTHDAY: Scott Duhamel.

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