NEW: Chafee ‘Disappointed’ in House Budget
Monday, June 20, 2011
Governor Lincoln Chafee today said he was “disappointed” that the House version of his budget did not include his plan to expand the sales tax.
“I am disappointed that the General Assembly chose not to modernize our sales tax system by broadening the number of items subject to the tax while lowering the overall rate from 7 percent to 6 percent,” Chafee said. “The General Assembly did broaden the sales tax base somewhat, but because the May revenue estimating conference forecast an additional $120 million in FY2011 and FY2012 revenues, they faced a smaller projected deficit than my budget team and I were expecting in February.”
Chafee also said he was disappointed that lawmakers did not ask state employees to contribute more to then pensions.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTBut, he added: “I am confident that this issue will be addressed in the fall when we come together in a special legislative session to achieve comprehensive pension reform once and for all.”
On the upside, Chafee applauded House leaders for preserving many of the key goals in his original proposal, which included: no structural deficits, full funding of the education funding formula, funding transportation projects without increasing debt, and supporting cities and towns through municipal aid.
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