RI faces revenue shortfall of almost $100 million
By Alana Cerrone
@Alana_Cerrone
With less than two months to go, the current fiscal year is coming to a close $60 million under its anticipated revenue.
That puts the state in a bad spot for negotiating Governor Gina Raimondo’s $9.2 billion budget for next year.
The estimated revenue for next year is already almost $40 million short, making the combined shortfall $99.6 million dollars, a situation Governor Raimondo calls not easy, but also not surprising
"It’s what states all across the country are seeing – but it presents very difficult decisions."
Those decisions, she says, might include nixing her college tuition plan. "Certainly when you have that type of shortfall you have to do what you have to do."
A major contributor? According to Raimondo, it’s President Trump. "Companies are not paying their taxes because they’re waiting to see what’s going to happen with potential tax reform at the national level."
The numbers would seem to support that – at least in part. The last fiscal year brought in almost $135 million in corporate taxes. This year that’s estimated to drop to $125 million.
But in a statement, Speaker Nicholas Mattiello points to other factors…saying in part…
"it is frustrating to me that a lot of the budget problems are due to not achieving budget savings or revenue initiatives the Administration proposed last year. State government must be managed better so that it works more cost effectively for the taxpayers."
© WLNE-TV 2017
