Rhode Island facing budget deficit of more than $800M
Rhode Island’s elected leaders are staring at a sudden coronavirus-fueled budget gap of more than $800 million for the year ahead, according to official estimates finalized Friday.
The COVID-19 health emergency and near shutdown of the economy has eroded state tax collections, gambling profits and other revenue for this year and next by a combined $797 million from the projections in Gov. Gina Raimondo’s January budget proposal. The shortfall is made up of a $280.9 million gap in the current year ending June 30 and $515.8 million in the year beginning July 1.
On top of that, state spending over the two years is now projected to rise, on net, $53.9 million over the previous estimates from November, according to analysts figures released Tuesday.
That leaves state lawmakers with as much as $850 million to backfill when they return to finalize an annual budget over the next month, although the spending numbers do not take into account some Medicaid savings proposals in Raimondo’s budget.
Read more: https://www.providencejournal.com/news/20200508/ri-facing-budget-deficit-of-more-than-800m