Gov. Raimondo unveils $8.63 billion state budget plan

By: Samantha Lavien
Slavien@abc6.com
Twitter: @SLavienABC6

Governor Gina Raimondo outlined her $8.6 billion budget proposal to the General Assembly Thursday night.

The message and the focus of the Governor’s first address was all about jobs. She started off her address by saying that everyone who works hard deserves to make it in Rhode Island.

“All most people want is a chance to earn a decent living that lets them provide for their families,” said Raimondo.

Raimondo’s plan revolves around three themes: building, innovating and attracting. She says her budget is balanced and makes significant progress towards eliminating the nearly $200 million dollar budget deficit facing the state next year.

“It is time to break this downward spiral and set in motion a virtuous cycle of progress and momentum driven by economic growth,” said Raimondo.

One of the biggest areas to see cuts is in Medicaid, where the Governor is calling for a 9% cut in expansion this year..

The budget does not call for any broad based tax increases, but does call for some tax increases including 25 cents a pack more on cigarettes, millionaire’s vacation homes and a fee for Health Source RI users.

The last portion something Rep Chippendale says he’s very opposed to.

“It’s just the type of thing that goes against everything that we want and hope to do to move Rhode Island in the right direction,” said Chippendale.

The budget eliminates the state’s taxes on social security benefits for low and middle income seniors, something Speaker Nick Mattiello has been pushing for.

“I think it sends the right message to our citizens that we care about you and after you’ve invested in our state your entire life, you’ve raised a family here and so forth when you’re income capacity goes down that we will encourage you to stay here we’re not going to charge you tax on that income,” said Mattiello.

Another major area of emphasis is on education. The Governor saying the budget invests record amounts in K through 12 schools.

“The emphasis on our schools is something that I think every city and town is going to benefit from,” said Providence Mayor Jorge Elorza.

Another topic mentioned, raising the minimum wage to $10.10 an hour.

Now the real work begins with the budget going to the House Finance Committee. An end result sometime in late May or June.

(C) WLNE 2015