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CARCIERI UNVEILS BUDGET AMENDMENTS

Governor Vows To Redouble His Efforts to Bring Fiscal Responsibility to the State's Budget

Wearing an orange lobbyist's badge to make the point that he is the "lobbyist for all the people," Governor Donald L. Carcieri today outlined a series of budget amendments that his Administration will take to the House floor on Friday as part of an ongoing effort to confront the state's long-term structural issues.

"My budget priorities are fair, straightforward and consistent," said the Governor. "Eliminate state subsidies for the dogs. Eliminate the meals tax. Eliminate the salt water fishing license fees. Get the state's spiraling pension costs under control. Save for a rainy day. These are just some of the aspects of the budget that need revisiting." Amendments reflecting the Governor's priorities were drafted today for introduction on Friday by House Republicans during floor debate.

The Governor reinforced the urgency of solving the state's fiscal crisis. "Essentially, taxes are being raised to feed the dogs," said the Governor. "My proposed budget calls for the complete elimination of this nonsensical taxpayer subsidy. I was elected to get our house financially under control, to get this budget in balance without raising taxes, and to lower the rate of increase. Until we do that, we are just papering over a problem."

Governor Carcieri also submitted a budget amendment that would reverse the General Assembly's slashing of the state's water pollution control program, calling such a move a "bottleneck to responsible business development and a threat to Narragansett Bay."

"Let me be emphatic. I care about the future and where this state is going. It has been poorly managed. The revenue picture continues to deteriorate, while costs are escalating at extraordinary rates. This is an exercise that demands courage and leadership, but the legislature is failing to make the tough decisions necessary to set Rhode Island on the road to fiscal recovery. The General Assembly is raising taxes, ratcheting up spending and catering to special interests. I am profoundly disappointed, but newly energized to press on with our issues. And I will do so with great vigor, determination and candor," said Governor Carcieri.

Challenging comments made by General Assembly leaders, Carcieri emphasized that his proposal to require state employees and teachers to contribute an additional two percent of their salaries to fund their own pensions is fair and reasonable and, most certainly, is not a tax. "Make no mistake about it. Rhode Island retirees have one of the most generous plans in the nation. The pay-out, plus the guaranteed three percent annual cost-of-living adjustment and the no-cost health insurance benefit, are wildly out-of-sync with the real world and unaffordable to taxpayers.

The Governor pointed to an analysis of state budgets published in USA Today revealing that Rhode Island ranks among the worst states in the nation in its fiscal management practices. The analysis cites excessive spending as the state's largest money management problem. (http://www.usatoday.com/news/nation/2003-06-22-state-by-state_x.htm)

"Rhode Island has long faced very serious budget woes," said Governor Carcieri. "State and municipal government spending has risen dramatically in the last ten years, far outstripping the rate of inflation. For many of those years, the national and regional economies were humming along, thus camouflaging Rhode Island's aggressive spending patterns. Because this issue continually has been swept under the rug, many Rhode Islanders don't seem to realize just how serious a problem we confront. I am working to change that dynamic and I won't relent."

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