Rhode Island

Rhode Island Gov. Donald Carcieri yesterday proposed a $7.5 billion fiscal 2011 all-funds budget that would close a $405 million budget deficit. The proposal would reduce local aid to municipalities sharply to $838.7 million from $1 billion in the enacted budget in the current fiscal year.

The Rhode Island General Assembly began its 2010 session yesterday, but tackling the state’s $218 million current fiscal year deficit was not on the agenda.

Standard & Poor's revised Newport Hospital's outlook to negative from stable last week, citing an unexpected increase in operating losses. The change affects $24.9 million of bonds issued in 1999 by the Rhode Island Health and Educational Building Corp. on behalf of the hospital. Standard & Poor's rates the debt A.

Providence would get a $76 million streetcar system to meet the city’s growing transit needs under recommendations in a report that was released by the Rhode Island Public Transit Authority last week.

Gov. Donald Carcieri last week appointed Ioanna Morfessis as executive director of the Rhode Island Economic Development Corp., subject to state Senate approval.

With a little help from the U.S. Treasury, the Rhode Island Housing and Mortgage Finance Corp. plans a return to the housing bond market today after a nearly 15 month hiatus.

Unemployment in Rhode Island hit a new record of 13% last month, according data released last week by the state’s Department of Labor and Training. The new rate, which rose from 12.8% in August, is the state’s highest since 1976 when it began using its current methodology.

The Landmark Medical Center in Woonsocket, R.I., defaulted on scheduled interest and principal payments on bonds maturing this month, triggering a payment by its insurer, according to a notice posted last week by its trustee.