On Wednesday night, Rhode Island's budget crisis came to Brown - for a couple of hours, at least. The Taubman Center for Public Policy held a panel discussion in front of about 50 people in MacMillan 117 that examined strategy for reducing the Ocean State's deficit, which is projected to be nearly $400 million by the end of the 2009 fiscal year. The panel was divided about how the state government should lower this amount, with speakers issuing strong arguments about the merits of Gov. Donald Carcieri's '65 proposal to balance the state budget.
Political Science Professor Darrell West moderated the panel, which consisted of Gary Sasse, the director of the state's Department of Revenue, Linda Katz, the policy director of Rhode Island College's Poverty Institute, Paul Choquette Jr., the chairman of Gilbane Inc. and Bob Walsh, the executive director of the National Education Association. Panel members each made remarks before opening up the floor for questions.
West introduced the topic by saying that "three-quarters of the people in the state believe Rhode Island is headed in the wrong direction."
Panel members agreed that Rhode Island's current budget was on the wrong route, but differed on finding a plan that reduced the deficit and also promoted social programs and a healthy business atmosphere. Sasse argued that Carcieri's plan would be effective in balancing the budget, even if its implementation would mean less funding for social programs like Medicaid. Katz advocated for higher taxes in some areas and for the state government and local communities to work together to address social needs. Chouquette proposed that the state's economy would be best served by promoting in-state commerce and cutting taxes. Walsh spoke out against cutting taxes and certain social programs, including health care for children.
Sasse, whose expertise was praised by panel members throughout the night, said that Carcieri's plan was fiscally sound in general for the long term, arguing, "I think the direction is right. I think as the legislature debates the governor's proposals, the devil will be in the details."
Though he said he was in favor of promoting social programs and business opportunities, Sasse argued that neither of these would be possible before balancing the budget. "Until we solve this structural problem, we will not have the resources to make these investments," he said.
Katz argued for tax raises despite Rhode Island having income tax rates that are already among the highest in the country. She said that under Carcieri's plan, 7,400 people would lose health care and up to 10,000 could lose health insurance. Katz said she welcomed a "balanced approach to solving the deficit," but didn't give a detailed plan besides her advocacy for increased communication between government and local community.
In the question-and-answer portion of the discussion, several members of the audience scoffed aloud when Katz said, "You can't tax your way out of this problem, and you can't cut your way out of this problem."
Chouquette argued for new business opportunities in Rhode Island, a state that young citizens no longer wished to live in, he said. "We are now faced with an economy that is flat and declining," Chouquette said. "This puts us in a precarious position not just for now but for our future and children. I only have one child out of all five living in Rhode Island."
Specifically, Chouquette promoted tax cuts for the wealthy, and said their presence in the state contributes to strong business and philanthropy. "Philanthropy could be a real loser if we see some of these high-income taxpayers move out of state," he said.
Walsh countered Chouquette's position, saying, "I don't see how giving a tax break to people who are already here makes incentives for new jobs." He argued against tax cuts and for increased education funding, but agreed with Chouquette that "spending has exceeded revenues." While he did not explicitly promote raising taxes to the extent that Katz did, Walsh told the audience half-jokingly, "We've become very funny as Americans. ... Paying taxes to me is a patriotic thing."
Few Brown students attended the event. Jonathan Bogard '09 was in favor of raising taxes to balance the budget, saying Rhode Island's "marginal tax rate is not outlandish." Libby Kimzey '09.5 said she "didn't really expect quick answers" from the panel.
There weren't many quick answers Wednesday night, and as the discussion came to a close, Sasse reminded the crowd that the process of balancing the budget would be arduous.
"We'll know who's right in six or eight months," he said. "There's no reason to be optimistic that we're going to find more resources for some of the programs and some of the cuts."
