Another Direction for Wealth Redistribution
This has to stick in the craw of anybody who’s struggling to make monthly housing payments and considers continued employment to be a month-to-month thing (emphasis added):
Carcieri immediately put legislative leaders on notice of the likely need to borrow from the state-run disability-insurance fund earlier in the state’s budget year than anyone could recall. In one such letter to Senate Minority Leader Dennis Algiere, the governor noted that he can only do so when: “All cash in the General Fund, including the payroll clearing account has been or is about to be, exhausted.” …
Approximately 420,000 private-sector employees in Rhode Island, and some municipal employees, pay 1.3 percent of their gross wages — up to a maximum wage base of $54,400 — into the TDI trust fund.
When it comes to government-run insurance, everything is ultimately part of the general fund, and it’s clear, when push comes to shove, where the government’s priorities lie.
… the state is lurching from pay period to pay period in an atmosphere of increasing uncertainty about the state’s ability to raise the revenue that the governor and legislative budget-writers anticipated when they cobbled together this year’s budget.
It’s time to cut expenditures and shrink the size of Rhode Island’s government. Any other solution will only exacerbate the problem.