CARCIERI ADMINISTRATION TO SUBMIT FY 2008 SUPPLEMENTAL BUDGET PROPOSAL TOMORROW

01-16-2008

Governor Donald L. Carcieri will submit to the General Assembly tomorrow his FY 2008 supplemental budget proposal. The Governor’s plan is designed to cover the projected $151 million budget shortfall in the current fiscal year, which ends in June.

“With less than six months left in the current fiscal year, we are required to take some difficult steps to quickly resolve a projected $151 million budget shortfall,” Governor Carcieri said. “In budget terms, $151 million is a very large problem to solve in a very short amount of time. My supplemental budget plan for the current year will include the difficult decisions necessary to bring this year’s state budget back into balance.”

“My staff has already reached out to both the Democratic and Republican leadership of the General Assembly to discuss our options and some of the plans we are considering,” the Governor said. “Based on those meetings, I believe that the General Assembly recognizes the severity of the budget problem and is willing to work with my administration to craft a solution. With that in mind, I hope the legislature will have the opportunity to act quickly on my supplemental budget plan because time is of the essence.”

In November 2007, state officials determined that state government would run a deficit of approximately $151 million if no changes were made to the spending plan originally approved by the General Assembly in June. The shortfall largely resulted from a fall-off in state revenues such as taxes and lottery proceeds, as well as higher than projected caseloads in certain state funded programs.

The Governor’s plan to resolve this shortfall, which he presents tomorrow, will rely largely on spending reductions in eight specific areas.