RI gov to sign budget closing massive deficit

PROVIDENCE, R.I.—Gov. Don Carcieri will soon sign a $6.9 billion budget plan that cuts spending to close a massive deficit.

Lawmakers adopted the plan last week to close a $422 million spending shortfall for the year starting in July. Carcieri plans to sign the budget Thursday afternoon at the Statehouse, making it law.

The Republican governor has praised Democratic lawmakers for closing the deficit without raising personal income, sales or business taxes.

Instead, the proposed budget will lower the limit on welfare payments from five years to four years, cut energy assistance for the poor, eliminate state-subsidized health care for about 1,000 adults and reduce state funding for cities and towns.

Rhode Island still faces hundreds of millions of dollars in spending shortfalls though 2013.