RI House lawmakers hold budget talks

PROVIDENCE, R.I. (WPRI) - House Democrats held closed-door budget talks at the Rhode Island State House Tuesday, as they get ready to unveil their plan to eliminate an estimated $186 million deficit.

Two key questions are in play: How much to cut spending, and whether to raise taxes.

In March, Governor Lincoln Chafee proposed balancing the budget through a mix of spending cuts and tax and fee increases, including a controversial plan to reform and expand the state sales tax.

"Anything can happen," House Speaker Gordon Fox told reporters Tuesday after being asked if tax increases were still on the table.

"Obviously you have to keep talking about taxes."

Governor Lincoln Chafee argues that raising taxes amounts to an investment in Rhode Island's future.

"I feel very, very strongly that a big part of economic growth in Rhode Island is a good budget and so I'm firmly committed to making sure we get a good honest budget."

• From Our News Partners at the Providence Journal: If Assembly wants cuts, everything is on table - Chafee

The General Assembly must approve a new budget before the next fiscal year begins on July 1.