- Associated Press - Wednesday, April 26, 2017

PROVIDENCE, R.I. (AP) - Rhode Island’s state revenue collections are sagging, complicating negotiations between state leaders over proposed tax cuts and spending priorities.

The state Department of Revenue says new revenue collection numbers from March show revenues are $43 million lower than forecast for the first nine months of the budget year. That’s 1.8 percent less than what was projected.

Sales tax revenue is below forecast, as is revenue from income taxes, estate taxes and general business taxes.

Lawmakers are expected to pass a budget before the new fiscal year begins on July 1. The official revenue numbers used to write the budget will be released next month.

Also complicating budget deliberations this year is higher-than-expected Medicaid spending, in part because of problems with a new computer system for distributing benefits.

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