Governor Lincoln Chafee. WPRO file photo by Steve Klamkin.
WPRO Newsroom
“It’s that time of year.”
Governor Lincoln Chafee is right: it’s budget season.
On Tuesday, the House Finance Committee is slated to take up the fiscal year 2014 budget, and Chafee told WPRO they’ll have to figure out how to overcome a multi-million-dollar shortfall.
“The legislature has a little less money, about $30 million less than I had in my budget, as it worked out,” he said. “In the previous two years they’ve had a lot more money.”
Chafee’s proposed budget calls for a lowering of the corporate tax rate from 9 to 7 percent, a plan that may end up on the cutting room floor. He said the state would make up the difference by eliminating a “job development act” tax credit, but he is concerned the General Assembly won’t approve it.
“I’m afraid we’re not going to be able to go forward with [that] this year,” he said.
Additionally, Chafee has made it clear that he is opposed to defaulting on the 38 Studios loans, and has allocated an initial repayment of $2.5 million in his proposal.
“I’m very committed to paying it back,” he said. “It sends a good signal to investors.”
He also said the state needs to focus on “investing in education, investing in our cities and towns, workforce development and infrastructure.”
“Those are the keys to growing the economy,” he said.
The House’s amended budget has not yet been released.
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