ABC6 Breaks Down Chafee’s Proposed Budget

Governor Lincoln Chafee addressed the General Assembly this evening, outlining his proposed budget designed to close a $300 million shortfall.

Chafee's primary method to close that gap is expanding the tax base by imposing a 1% sales tax on many items that have been exempt from sales tax, such as haircuts and home heating oil.  Meanwhile, he proposes that the sales tax on existing taxable items is reduced from 7% to 6%.

ABC6 Reporter Erin Logan has the specifics on the Governor's proposed budget, which now starts on a lengthy process of review and approval by the General Assembly.

ABC6 Reporter Erica Ricci was at the State House getting reaction from some of Rhode Island's top officials.