State faces $34.5 million budget shortfall
By The Associated Press
PROVIDENCE, R.I. (AP) _ A public policy group says Rhode Island’s new governor faces a $34.5 million shortfall for the current fiscal year instead of a surplus, and a deficit that will likely continue growing.
The Rhode Island Public Expenditure Council says in a report Wednesday the budget for the 2015 fiscal year projected a surplus of $500,000, but now the state faces a deficit.
Executive Director John Simmons says the current fiscal year is a challenge for Gov. Gina Raimondo because the state is spending more on Medicaid than expected and agencies are overspending.
The report says Medicaid expenditures are projected to be $118 million more than budgeted. It says state agencies are projected to overspend by a combined $42.2 million.
Simmons says total expenditures are expected to outpace general revenues through 2019.
(C) The Associated Press 2015
