Governor Carcieri Comments on Council 94 Vote

10-06-2009

Governor Carcieri today thanked Council 94 members for voting to ratify his job saving proposal. “I realize this was a difficult decision, and I appreciate the willingness and understanding of the state employees for choosing to be partners in managing our way through this economic crisis,” said Governor Carcieri. “Because of the cooperation of Council 94, and the many other state employee unions that have already ratified the agreement, we will save $36 million in personnel costs over the next two years, keep people working, and preserve state services.”

With the ratification by Council 94 members, virtually all union and non-union state employees are participating in the job saving plan, including the General Officers, the Judiciary, and the Legislature. The Administration continues to meet with the remaining employee unions, including RIBCO and Higher Education. “I remain committed to having all state employees participate,” continued Carcieri. “The most equitable plan is for every state employee to share the burden.”

In August, the Governor released a plan to achieve the $67.8 million in unspecified savings in the FY 2010 budget. With the $18 million in personnel cost savings in FY 2010, coupled with the $17.1 million in estimated operational savings, the Administration is seeking an additional $32.5 million by withholding the 4th quarter vehicle excise tax payment to towns and cities.

“In order to achieve this final piece of the savings, we need the support of the General Assembly, and the cooperation from the cities and towns to do their part and find cost savings on the local level,” continued Carcieri. “According to the latest report by the Tax Foundation, Rhode Island carries one of the heaviest property tax burdens in the country. Our cities and towns should follow the State’s lead to control spending without raising property taxes. I have proposed a package of municipal savings ideas that could save up to $130 million annually, but it is up to the cities and towns to advocate before the General Assembly to approve those measures.”