May 3rd, 2008
Governor Donald L. Carcieri today signed into law the FY 2008 supplemental budget plan that was approved by the General Assembly.
“I’m pleased that both the House and the Senate have acted on this important fiscal austerity measure,” Governor Carcieri said. “Approving the revised budget for the current fiscal year is the first step to solving the state’s fiscal crisis.”
“Unfortunately, we have much more work ahead of us,” the Governor said. “In fact, next year’s budget problems will likely be even more difficult to resolve. I look forward to working with the legislature to enact the spending reductions necessary to eliminate the projected budget deficit for the fiscal year that starts in July. Working together, I believe we can build on the progress made today by addressing next year’s projected spending shortfall without raising broad-based taxes.”
The only question that really remains is whether the tax and spend crowd will learn to face reality. If we can’t afford certain programs, they are going to get cut. You can do one of two things: you can a) seek to increase revenue streams as the House did earlier this week by approving 24-hour gaming or b) reduce spending, which is what happened through the passage of this budget.
I prefer the latter in most instances and especially when the increase in revenue comes (again) from gaming. We’re becoming way too reliant upon gaming and gambling is a zero-sum game…for as many winners there are countless more losers. It builds up a culture - in my opinion - of ‘luck’ versus working hard. Don’t get me wrong, not everyone who goes to Twin River is a gambling addict but my point is that the underlying morality we’re building, explicitly or otherwise, is one wherein we look to luck and the quick hit versus day to day hard work in order to achieve success. I think that sets us up for failure and also creates a situation where we’re gluttons for gaming. And in the end, we’re going to end up with nausea.
Now that I’m getting off my gaming soapbox, I’ll get back to the point of this press release. Yes, the supplemental budget has passed and yes the governor is praising the assembly for coming to their senses with respect to the real shortfalls, but why didn’t we do this in year’s past. The governor would probably state he had too much opposition in the General Assembly. While that might be true, the governor is Mr. Fiscal Fitness and it should not have taken so long to get a budget done that addresses the real fiscal issues facing our state because the issues we’re dealing with now were identified long ago. On the flip side, maybe the real problem was the General Assembly who continually balked at the governor’s reduced spending proposals and they are the ones waking up and smelling the deficit coffee. Whatever the case may be, as Rhode Islanders we should be wary about two things:
- We have a Fiscal Fitness governor but it took him what, 5-6 budgets to really take a bite out of the deficit. That’s not good news in terms of his power of persuasion or truly being fiscally sound.
- We have a General Assembly that reacted (finally) to reality. Next budget we face an even more daunting task. I doubt the governor would approve raising taxes but the GA might override his veto if they put forth a significant tax increase. Still, we need to hold our elected officials more accountable to their actions and our state’s fiscal health. We need a GA that will be proactive in addressing problems not reactive. But how much faith do you have that this GA will become just that?
In the end Rhode Island, we need to be more attune to what’s going on and more equipped to battle the fiscal problems facing our state. This supplemental budget was a good first step, but we’ve got many, many, many more to go.
Posted in Rhode Island, Rhode Island Budget | 1 Comment »