Governor Carcieri’s Big Proposal, Cntd.
Governor Carcieri being interviewed by Dan Yorke (WPRO 630 AM)…
The Governor says that the legislature’s plan to use tobacco money to plug the deficit is bad for 2 reasons…
- Using a one-time windfall for operating expenses leaves you with the same problem again next year.
- The original plan for the tobacco funds (highway, I think) brings in a 4 to 1 Federal match. The legislature’s plan brings in nothing.
The Governor is not sure if the leadership in the legislature will buy into his plan or not. He doesn’t know if they have the courage to defy the unions.
The state has a contractual right to re-open negotiations on certain aspects of state employee benefit strcture (but not salaries). If no agreement is reached, it goes to arbitration.
The Governor says that up until a week ago, the legislative leadership was telling him that they wouldn’t be using the tobacco money to cover operating expenses. Apparently, they changed their minds.