HEADLINES : Rhode Island
RI Senate passes $7.7 billion state budget
PROVIDENCE, R.I.-The Rhode Island Senate on Wednesday passed a $7.7 billion state budget, sending the bill to Gov. Lincoln Chafee's desk just two days before the new spending plan would take effect.State senators voted 30-7 for passage. Chafee is expected to sign the budget into law, and it will take effect Friday, the first day of the new fiscal year.
The new budget will impose a sales tax on the purchase of non-prescription drugs, smartphone applications, software and videogame downloads and sightseeing tours. The proposal also cuts more than $100 million in state spending and increases the monthly premiums paid by some families on Medicaid.
The budget eliminates an estimated deficit of $186 million, most of which was prompted by the end of federal stimulus money. The shortfall had been pegged as high as $331 million until last month, when state finance analysts projected new, higher revenue numbers.
"What I think this budget really does is represent an overall strategy to address this state's structural and operating deficits, which have existed for a long time," said Sen. Daniel DaPonte, D-East Providence, chairman of the Senate Finance Committee. "While the cuts in this budget are difficult, they certainly could be a lot worse."

