RI gov proposes cuts to balance budget

PROVIDENCE, R.I. (AP) - Republican Gov. Don Carcieri has proposed a $7.5 billion state budget that would make big cuts in funding for local governments to close a massive budget deficit.

Carcieri also wants to offer $10 million in tax credits that he hopes will encourage firms to hire workers in a state with nearly 13 percent unemployment.

The spending plan unveiled Tuesday would set state spending for the financial year starting in July. A deep recession has severely cut the state's tax income.

Carcieri's plan would eliminate $135 million for municipal governments and millions more in school funding. Those figures don't include major cuts that Carcieri proposed for the current budget year.

Democrats hold a veto-proof majority in the Legislature and frequently rewrite Carcieri's plans.