Projo Politics Blog

By Katherine Gregg
Journal State House Bureau

PROVIDENCE, R.I. -- Governor Carcieri has run up a potential $589,218 deficit in his own budget.

The deficit came to light in a quarterly spending report issued by the state budget office on May 15 that lifted the lid on an even bigger problem for state government that made big news: another $70-million sinkhole in the current year budget.

Instead of the $4.7 million budgeted for his office, Carcieri's spending out of his own accounts is approaching $5.3 million.

But spokeswoman Amy Kempe said Friday there is an explanation and probable solution that will save Carcieri from a year-end deficit, in a year when he has been hitting the cities and towns hard for not holding the line on their own expenses.

She said the projected hole is a result of two converging events: lawmakers' decision to strip $300,000 from his "contingency account'' as part of their deficit-avoidance plan for this year, and the reassignment to the governor's office -- before there was a guarantee of federal reimbursement -- of staffers from other agencies to help manage the influx of hundreds of millions of dollars in federal stimulus funds.

Kempe said the governor's staff only just recently got the go-ahead it was seeking to use some of the stimulus money to cover administrative expenses, such as the salaries of people assigned to the newly created office of economic recovery and investment since January.

They include Jamia McDonald, whose official title is associate director, Department of Mental Health, Retardation and Hospitals; Gail Theriault, administrative and legislative support services administrator, Executive Office of Health & Human Services (EOHSS), $118,075.75; Laurie Petrone, another associate director at MHRH who previously worked within the EOHHS, $107,331.55; Wayne Hannon, assistant director Rhode Island School for the deaf, $110,000; newly hired lawyer Christian Jenner, $53,849; and Alicia Pomfret, an assistant financial analyst at the Economic Development Corporation, $50,200.

Based on new information from the Obama administration, Kempe said, the administration is "anticipating we won't have a deficit.''

Stay tuned.

 Tags  budget deficit Carcieri economy

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