5 Danger Areas for Raimondo’s Budget
Friday, January 19, 2018
Budgets are part art and part science. The budgeting process is additionally complex when Washington, D.C. fiscal policies are in a state of transformation. Then, add to the mix that this year is an election year and you get an extraordinary collection of factors that make Governor Gina Raimondo's budget one that faces multiple dangers in approval and execution.
To set the stage, this fiscal year has a $60 million shortfall that needs to be closed in the next five months.
Next fiscal year, the budget shortfall is anticipated to exceed $200 million.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“This is a difficult budget environment,” said Michael DiBiase, the director of the Department of Administration who managed Raimondo’s proposal forwarded at Thursday’s budget briefing. “We have a lot of uncertainty in Washington.”
Certainly, Washington seems to be in a consistent state of flux. Despite GOP control of both chambers of Congress and the presidency, every day seems to offer a new fiscal policy.
However, no one seems sure if Rhode Island will realize a windfall via the implementation of the newly adopted federal tax reform package or if the state will be adversely impacted.
In an interview with GoLocalProv, John Buhl manager of media relations at the Tax Foundation, said there are numerous factors that could impact Rhode Island. Other states will realize a boon to their budgets.
The Raimondo Administration’s FY19 budget expects to resolve the anticipated deficit with adjustments to Medicaid budgets, increased taxes on cigarettes and tobacco and a possible revenue boost of $23.5 million from sports betting, which is dependent on the Supreme Court striking down a federal law that prohibits states from running sports betting games. A ruling in Christie v. NCAA is not expected until May.
Here are five issues the makes this budget process very complex.
Related Slideshow: 5 Danger Areas for Raimondo’s Budget - January, 2018
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