Diversion of Education Funds up to Assembly (RI)
September 2, 2010
Governor Carcieri’s plan to use $32.9 million in federal education dollars to plug a $38-million budget deficit isn’t his decision to make.
The General Assembly must approve the rerouting of the money, Carcieri’s spokeswoman acknowledged Wednesday, and the two top legislative leaders were noncommittal about what lawmakers intend to do.
“I recognize the governor’s concerns,” said House Speaker Gordon D. Fox in a statement. “Any decision on the use of these funds is premature, pending further discussions I will be having with the governor, the Senate leadership and my fellow House members.”
A statement from Senate President M. Teresa Paiva Weed echoed Fox’s comments.
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Fox also said he does not intend to call House legislators back to the State House to vote on the matter this fall, indicating that a new governor and some new state lawmakers will hash this out in 2011. Carcieri’s term expires in January and he cannot run for reelection. The state’s budget for 2010-’11 relied on about $107 million from the federal government for Medicaid reimbursements but, in the end, the state will receive $70 million for Medicaid and nearly $33 million dedicated to schools.
Carcieri says he wants the entire $103 million to flow to Medicaid, a stance that has drawn the ire of school advocates. They point out that Carcieri and the General Assembly cut state education aid to schools by $29 million this year, and that President Obama earmarked the federal money specifically for education jobs.
Education Commissioner Deborah A. Gist took the unusual step of criticizing the governor’s proposal, saying Tuesday she “strongly advocated” for the $32.9 million to be sent to schools.
Carcieri’s plan to divert the federal education jobs money also drew disapproval from a host of Rhode Island politicians, including U.S. Sen. Sheldon Whitehouse, who urged Rhode Island leaders to use the money to “preserve teachers’ jobs, enable the hiring of new teachers and reduce class sizes.”
Providence Mayor David N. Cicilline, who is running for Congress, said he was disappointed the governor wanted to divert the money. State Treasurer Frank T. Caprio, who is running for governor, asked Carcieri to reconsider.
“We need innovative solutions to fix our public education system and structural reforms to balance the state’s budget,” Caprio said. “The decision to bail out a broken budget by using federal funds awarded to help our struggling schools could not be more irresponsible.”
But Carcieri stuck to his guns, even when it came to light Wednesday afternoon that the state has a $17.7-million surplus from last year that could, potentially, reduce this year’s deficit.
“Yes, there is an approximately $18-million surplus from last year, but the governor does not think that should be used to offset the Medicaid [reimbursements],” said Amy Kempe, Carcieri’s spokeswoman. “We have to stick to the enacted 2011 budget and carry that surplus forward.”
Kempe said the state is projecting a far bigger deficit in fiscal year 2012 –– about $320 million — and will need any surplus money the state can find.
“He wants to leave the state in the best position possible at the end of his term,” she said.
Steven M. Costantino, House Finance Committee chairman and a candidate for Providence mayor, said he wants the education money to go to “its intended purpose” to prevent layoffs.
He also questioned why the governor is discussing how the money should be used when the state’s financial outlook is in flux, as illustrated by Wednesday’s announcement of the surplus.
“The timing of this is a little bit off,” Costantino said. “If there is a surplus, it will be the decision of the legislature how that money should be used.”