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 Republican governor has already sought to reduce local aid in a supplemental budget proposal — introduced but not enacted by the Democratic-led General Assembly — to close an existing $218 million deficit in the current fiscal year.

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