I voted for Don Carcieri twice, and I consider myself a Carcieri supporter, but next year's budget is a mess.  As regular readers know, I was strongly opposed to the federal stimulus bill.  There were many reasons for my opposition, but one big reason was the potential for states like Rhode Island to use it as a way of putting off the tough decisions.  The budget has so many problems, I don't know where to start.  Here are some points I found troubling:

*  $431.5 million dollars will be used from the stimulus for medicaid over the next two years.  What happens in two year?  Officials will probably hope for more revenue, but that's not a guarantee.  If we have a liberal as Governor, they'll just raise taxes and blame Carcieri's past budgets for the increase.

*  State spending rose 10% at a time when revenue is down.  State spending should not exceed inflation.

*  The Governor wants to use $10 million dollars to pay the settlement for the Station Fire.  How will this stimulate the economy?  Just one more reason I opposed the stimulus.  Another example of plugging budget holes and ignoring the tough decision.

*  110,179 middle class citizens making less that $75,000 per year will be paying an average of $1,261 more each year in taxes.  This is idiotic and indefensible.

*  Next, I see this item: "...the governor wants to provide state-subsidized medical coverage — not currently available — to the parents of children removed from their homes by the state, on the theory that mental health and addiction counseling might reunite the family."  OK, let me get this straight.  If you are abusive or too incompetent to take care of your children, we'll reward you with free health coverage?  This is just one of the things that will be paid for from the $1,261 in the additional taxes I may have to pay.

     Ideally, the amount of state spending should have been reduced, not increased by 10%, and stimulus money shouldn't be used to put off tough decisions.  There's also a chance that this money can't even be used for some of the Governor's proposed uses!  The Governor's desire to cut taxes is commendable, but also misplaced.  Rather than cut the corporate tax and increase the earned income credit, he should focus on phasing out the income tax, initially focusing on the lowest bracket then expanding to higher brackets.  It would be a tough sell, but I'm sure it would be an easier sell than cutting the corporate tax, and it would put more money into people's pockets.

     This budget will face major revisions in the General Assembly.  I'm just hoping they don't make a bad budget worse.  Although, I have a feeling they will.


http://www.projo.com/news/content/CARCIERI_BUDGET_03-11-09_HADK53O_v29.3941ef7.html