RI House approves $7.8 billion budget

PROVIDENCE, R.I. (WPRI) - The House of Representatives has approved a $7.8 billion budget proposal that increases the gas tax, and cuts millions from state pensions and offices.

Lawmakers passed the budget 69 to 5 just before 2:00 Thursday morning. It aims to close a projected $660 million deficit for the 2010 fiscal year.

The proposal includes $58 million in cuts for state office budgets, and $60 million shaved from state pensions. It also slashes millions in state aid to cities and towns.

Under the House's budget, the gas tax would go up by 2 cents, but the flat tax would stay the same. It also restores the state's Health Insurance Commissioner.

The proposal heads to the Senate, which could vote on it Thursday. Governor Don Carcieri has criticized the budget plan, but Democrats hold a veto-proof majority.