Rhode Island faces important decision over state budget - ABC6 - Providence, RI and New Bedford, MA News, Weather

Rhode Island faces important decision over state budget

Posted: Updated:

By: The Associated Press

An $8.2 billion state budget proposal is facing its first major test in the Rhode Island General Assembly, and school funding, business tax cuts and a proposal to default on debt relating to 38 Studios could be riding on the outcome.

The House Finance Committee is scheduled to debate and vote on the budget proposal Tuesday.

Governor Lincoln Chafee's recommended budget includes $40 million more for public and higher education and a proposal to gradually reduces the corporate income tax from 9 to 7 percent.

Some of those details are bound to change as lawmakers put their mark on the budget.

The budget also includes a $2.5 million debt payment for the state's failed investment in 38 Studios. But some lawmakers want to default on the state's obligation.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow

10 Orms Street Providence, R.I. 02904
401-453-8000

All content © Copyright 2000 - 2014 WorldNow and WLNE.
All Rights Reserved.

For more information on this site, please read our Privacy Policy and Terms of Service.