Rhode Island's key social programs -- the state's progressive approach to welfare reform, its low-income health insurance program, and subsidized childcare for working parents -- are largely preserved in the new state budget. Still, poor and moderate-income residents saw some negative changes, and observers say there has been real damage to some programs.

"It's kind of mixed," said Henry Shelton, the former priest and a leading state advocate for the poor, in summing up the new budget. "Basically, low-income and workers got the shaft."

Says Nancy H. Gewirtz, head of The Poverty Institute at the Rhode Island College of Social work: "We took some hits that are of great concern. People are always saying to me that it could have been worse. That's true. But when you look at some of the things that didn't get cut, the decisions are problematic."

Here are some changes:

* Health insurance premiums hiked. Most families eligible for RIte Care, the state's progressive health insurance plan, don't pay premiums, but about 4100 families at the plan's upper income limits are billed for co-payments. These co-payments will now increase to between $74 and $99 a month. Earlier this year, first-ever monthly co-payments of between $43 and $58 resulted in 700 families dropping RIte Care. Linda Katz of The Poverty Institute fears 2000 families will be unable to pay the higher amounts.

* $100 supplement canceled. For a number of years, welfare families have received a $100 "weatherization" supplement, nominally meant to help with winter heating bills. This will be eliminated next year. While the amount is small, Shelton and others say it hits a vulnerable group, which already lives below the federal poverty line.

* Cigarette tax. It increases 32 cents per pack (up from $1 per pack). Many advocates favor the levy because it curbs smoking. But this type of tax is known as a "regressive" tax, because people with little money have to shell out a higher percentage of their income than the wealthy. (By contrast, the state's graduated income tax is considered "progressive" because the rich pay a bigger share.)

* Gasoline tax. It increases by two cents a gallon -- another regressive tax.

On the positive side, a move to eliminate immigrant -- legal and undocumented -- children from medical assistance was reversed, says Marti Rosenberg, of Ocean State Action, the liberal policy group. In an unusual move that followed intense lobbying, the cut was canceled on the House floor. Rosenberg says this showed the responsiveness of legislators to the plight of 2500 vulnerable children, and to the increasing political strength of the immigrant community.

Issue Date: June 7 - 13, 2002