NEW: House GOP on Chafee's Budget: Start Over

Governor Lincoln Chafee’s budget is so bad, House Republicans say, that they are asking him to start over.

“We respectfully ask that instead of wasting further time trying to promote this budget, we should immediately get to work on a new plan that reduces state spending to sustainable levels and provides much more relief to the cities and towns that are facing a similar financial squeeze,” House Minority Leader Bob Watson wrote in an April 12 letter sent to Chafee.

Watson faulted the Chafee for closing the deficit with one-time fixes and tax increases—quoting an economist who says that Rhode Island, unlike most other states, is relying on taxes instead of spending cuts to deal with the budget shortfall.

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The combination of one-time fixes and spending outpacing revenues, Watson added, will cause the deficit to grow only larger. He cited analysis by the House fiscal staff showing that it will reach $480 million in five years.

Governor Chafee’s office did not immediately respond to a request for comment.

FULL TEXT

His Excellency Lincoln D. Chafee
Governor
Executive Chamber
222 State House
Providence, RI 02903

Dear Governor Chafee:

The Republican members of the RI House of Representatives had a number of immediate concerns when you introduced your budget in early March and the House fiscal staff promptly characterized it as resolving the budget gap “largely with increased revenues and one-time savings.” Five weeks of close study have revealed that this budget is even worse than we feared.

We agree with expert economist Gary Ciminero who writes: “Governor Chafee’s budget plan stands nearly alone among states in its almost exclusive reliance on new revenues to cope with a deficit. Most other states are focusing on spending cuts — even including the largest ones, such as New York, where Gov. Andrew Cuomo plans no new tax initiatives to close that state’s mammoth deficit” and, “No economist worth his salt would dismiss the braking effects on the economy of tax increases of such historic proportions, even if the economy were healthy.”

In addition to the harmful impact on fiscal 2012, the House fiscal staff has pointed out that between the use of one-time fixes and expenditures that grow faster than revenues, projected deficits in future years will continue to grow, reaching $480 million in five years. Even though the House Finance Committee faces several more weeks of hearings, we have seen enough to call upon our colleagues in the House to join us in sending this message back to your office: “This budget is simply not acceptable.”

We respectfully ask that instead of wasting further time trying to promote this budget, we should immediately get to work on a new plan that reduces state spending to sustainable levels and provides much more relief to the cities and towns that are facing a similar financial squeeze.

Sincerely,
Robert A. Watson
On behalf of the House Minority Caucus

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429 Too Many Requests

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