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Gov. Lincoln Chafee, (I-RI), on concerns over the potential fiscal cliff on the Rhode Island government and the state’s defense industry.
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Event as -- -- the president to their various -- discussion dance on this governors are sprinting around trying to prepare for the inevitability.
That we -- go over the fiscal cliff -- Rhode Island for example it may be the smallest state in the union.
But it could potentially be facing the worst pain if congress can't make a deal why.
Because it relies on the federal government for a massive 13 of its budget funding.
It's day three of our governors on the edge series and we welcome Rhode Island governor Lincoln Chafee in a Fox Business exclusive welcome thank you so much for being here.
Thank you -- especially thank you for having on one Wall Street having a rally ahead in -- -- -- we want to hear from you guys because governor in figure and a unique but unenviable position here because of Rhode island's reliance on federal funding plus.
You've got massive exposure to defense contracts which could be cut first off.
What are you doing to prepare were asking all of our governors this week about what kind of war room they have that they're preparing one -- two budgets depending on what happens.
Well first well we hope the common sense prevails and we're working with a delegation.
To push that common sense forward and to get an agreement.
And certainly having that word optimism coming out of while Washington today is good -- so that's really a first preference that have through the right thing down Washington inside the beltway and avoid this fiscal cliff.
What are you doing though argue put up for example Tom Corbett of Pennsylvania told us he's almost -- -- -- -- to prepare to separate budgets.
One for if we go over the cliff and one -- if we don't know I know that you guys had prepared an eight point was it an eight point one billion dollar state budget.
What is we go over the fiscal cliff does that stand or do you have to redo it it to educate -- emanating about -- the stuff.
Well don't forget we've been through a difficult time all the states have since the crash the full low weight in deep deep cuts have already been put in place over the last number of years and our budgets and that same time had to dress revenue -- we've not had not want to in tough times.
So it's really -- not much left but left to.
To cut -- these would be just devastating any further.
Cuts that you just -- corrections departments very expensive how much more can we do there.
For the department of children youth and the families it's important areas that are very expensive state budgets.
So there's not much left to cut and we're really searching common sense out of Washington.
You've got the second highest unemployment rate in the nation just behind Nevada at about ten point 4%.
Now for people who don't understand.
Do you guys get a lot of defense contracts because you've got Raytheon -- general dynamics Lockheed Martin's working out of the state of Rhode Island not necessarily headquartered there but.
How many jobs would you lose if the sequestration.
Hits and the cuts come in for defense.
It it would can be just devastating on all levels so not only in defense which as you said Rhode -- has a big part of our.
Economy is based on the defense industries specially -- equipment found area of our state.
-- but all across all sectors should just be devastating we've had deep cuts over the last number of budgets and how much more we can do.
It just it would be unfathomable at this point in revenue that we have to Jeff to raise.
To -- to address that fiscal cliff we really just lurching.
Washington to do the right thing for the Simpson bolster.
Boehner and what do you bearing reserves and altogether would you be OK -- so yes.
General -- they worked hard on that they worked hard over.
Bipartisan.
Meetings to come up with not only revenue but also cuts that's the fair way to do it and let's get on -- it.
You don't you just got back up from a trip to Paris as I understand where you're trying to lure jobs from a company called Dassault systemic which is a software company any luck on that front.
Yes they already have a strong presence in -- around about 350 jobs -- company they quiet here in Rhode Island and we want them to stay here and to grow and is very very productive meeting a face to face -- the CEO.
-- -- -- -- That's always a good idea to have face to face meetings with top people well good for you for occurring in that it's definitely important I know we have to -- -- quick question here.
Are you preparing to separate budgets for the inevitability poorly over the cliff.
Yes of course and this has said over and over here that it just that those of the types of cuts -- we really -- or not they see it we can't afford them -- its.
We've been through tough times here in Rhode Island I know across the country the state budgets.
And of course with the loss of the stimulus money when I came in we had a big deficits we had to overcome but still climbing out the -- to have to get back deeper into that whole.
-- -- wouldn't be good for economy while fight the good fight governor thank you for joining us.
-- thank you for having me -- especially during a rally.
But it to listen what you thought we cancel you hope we like -- we -- -- governors of every state thank you know problem governor Lincoln Chafee.
-- Rhode Island he's an independent -- look they've got so many defense jobs could be at risk there our.
