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R.I. House rejects plan to move $12.9 million from pension fund to budget

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By Philip Marcelo

PROVIDENCE, R.I. -- In a rare move, House lawmakers defeated a budget provision that would have eliminated an expected $12.9 million special payment into the pension fund.

The failure, by a vote of 36 to 39, was the first of a budget article during the marathon Tuesday debate in the state House of Representatives.

It came after hours of debate, two initial attempts to call for a vote, a couple of failed budget amendments by opponents and a last minute revision by Democratic leaders to preserve the provision, which was critical to closing a state budget shortfall of about $30 million.

House Finance Committee Chairman Helio Melo, D-East Providence, said Democratic leaders would amend the proposal to essentially say the non-payment into the fund would be for one budget year only.

Critics said the provision, as originally written, would have effectively prevented the payments -- which would come on top of the state's annual required contribution into the system -- for all future years as well.

House Majority Whip Stephen Ucci, D-Johnston, said the provision had become a "political football."

He said voting it down in protest would be a "feel good vote" that ultimately would not mean anything.

"Everyone is equally disappointed in this budget because they didn't get everything they wanted," Ucci said. "Because there is no money."

State Rep. Joseph Trillo, R-Warwick, a frequent critic of the Democratic leadership, credited them with coming up with a reasonable compromise.

But state Rep. Scott Guthrie, D-Coventry, said the proposal would only delay the fight until the next budget, when lawmakers would again have to consider the question.

"This article simply needs to go away," he said. "This does not belong in the budget."

Labor unions have said agreement to regular, additional payments toward the retirement system was a critical part of the 2011 pension overhaul agreement.

But House leaders did not include the payment as they worked to close a deficit of about $30 million.


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