http://www.boston.com

House would cut aid to immigrant kids in $6.66 billion budget
By M.L. Johnson, Associated Press Writer | June 13, 2006

PROVIDENCE, R.I. --Fewer immigrant children and low-income adults would receive health care and other aid from the state under a budget proposal put forward Tuesday by House leaders that also includes an income tax option that would benefit the state's top earners.

Under the plan, immigrant children would have to enroll in the state's health insurance program for the poor by the end of the year. After that, no new non-citizens would be allowed to enroll, even if they are in the United States legally.

The plan also would reduce health insurance for people getting off welfare from 18 to 12 months and eliminate child care for families that have more than $10,000 in assets.

Still, the cuts are less than what was proposed by Gov. Don Carcieri in February. At the time, the state was facing a $300 million budget deficit by the end of next year.

He proposed cutting welfare benefits in half, eliminating health insurance for thousands of low-income adults and children of illegal immigrants and reducing other social service programs.

Since then, the state's financial picture has improved. Budget officials announced in May that the state had $57 million more than expected.

House Finance Committee Chairman Steven Costantino said lawmakers want to use that money to help the state's poorest families and provide property tax relief.

"Children first was kind of our theme as we went through these cuts," Costantino said.

The committee approved the $6.66 billion budget plan Tuesday. It must be approved by the full House and Senate before going to Carcieri for his signature.

Carcieri proposed eliminating health insurance for children of illegal immigrants. The House plan would let those children and others enrolled in RIte Care, the state's health insurance program for the poor, keep their benefits. But children who aren't citizens would not be able to enroll in the program after Dec. 31.

Rep. Elizabeth Dennigan, D-East Providence, spoke against the enrollment deadline, saying it will result in greater costs down the road.

"What the state is doing now is not allowing children to receive preventive care and immunizations," she said before the committee approved the proposal.

The House plan would continue to provide health insurance to low-income adults who would have lost those benefits under Carcieri's plan.

It also preserves most benefits for welfare recipients. Carcieri had proposed reducing the time on welfare from 60 to 30 months. The House would not reduce the total time, but would count time spent on other state's welfare programs toward the 60 month cap. The plan would allow welfare recipients to count some education and training toward their work requirements.

"Training is important in terms of getting people into the work force," Costantino said.

Both the governor's and the House budget plans include some tax relief, such as a lowering of the car tax.

The House plan includes a flat income tax that would benefit the state's richest residents. Rhode Island now taxes people in the highest income bracket at 9.9 percent after deductions. Under the plan, taxpayers would have the option of paying an 8 percent flat tax that allows no deductions.

Carcieri has been pushing the General Assembly to lower taxes for the state's top earners to compete with Massachusetts, which has a flat income tax of 5.3 percent. He says executives and entrepreneurs contribute to the state's economic growth by bringing jobs with them.