Addressing a Democratic-controlled Legislature Jan. 22, Gov. Donald Carcieri (R) said Rhode Island was at a “tipping point” because of an uncertain economy and budget crisis. He proposed to reduce spending by $300 million by making cuts in three areas: social services, employee salaries and benefits and payments to cities and towns.
The governor told lawmakers he wants to shrink the period that people can receive welfare services from five years to two years. He also wants to change Medicaid so that more senior citizens receive long-term care at home instead of in a nursing home.
He plans to cut 1,000 state jobs and change public employees’ pay and benefits so they are more in line with those of private-sector employees. For example, Carcieri proposed to drop the state’s “overly generous” retiree health plan and move to a 401(k) pension plan.
He suggested forcing municipal governments to make similar personnel changes as he proposed for the state, and recommended the jurisdictions consolidate services and reduce overhead costs, especially in school systems.
Carcieri said his plan would result in no new taxes.
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