Rhode Island Gov. Donald Carcieri proposed a series of cuts and revenue measures Wednesday to close a $357.4 million budget gap in the current fiscal year. In a televised speech, he said the state faces “extraordinary circumstances.”
Since the $6.92 billion fiscal 2009 budget was enacted on July 1, projected revenues have dropped off by $233.6 million, while Medicaid costs have risen by $68.1 million and other revenue assumptions have changed, mostly to the negative. Despite the gap-closing measures, the proposed modification would increase the current year budget by $62.2 million.