In these times of budget shortfalls, state governments across the nation have been forced to lay off workers and cut back vital services to their residents. Contributing to the fiscal crises is a deepening recession that has left millions unemployed. As a result, state revenues from sales and personal income taxes are down sharply.

The loss in revenue means the actions states take to close the gap in their budgets will have adverse consequences for their residents, especially the most vulnerable among them. The impact of cuts in jobs and human services only worsens a faltering economy while simultaneously puncturing gaping holes in the social safety net.

Jobless workers don’t contribute income taxes, do collect unemployment benefits- that is, if they qualify- eventually will lack health insurance coverage, and do less consumer spending. Reduced social services, such as in health care, means many won’t be eligible for those services at a time when there is an increased need for them.

Further complicating matters for working families and individuals are state proposals to tax previously exempt items, removing thousands off Medicaid, decreased funding for elderly services, and raising public college tuition.

In order to pull themselves out of this fiscal crisis and avoid these harmful actions to their residents, states will need help in the form of a federal fiscal aid package. President-elect Obama has indicated his economic stimulus plan will include billions in aid to financially strapped states. Hopefully, it will be given immediate priority in his domestic agenda.

I like Elizabeth Roberts. Some people think the only solution to our state’s current economic crisis is to rile up anti-immigrant sentiments and chat on talk radio about how much he would love to eliminate the state income tax. It’s nice to see someone up top paying attention to real solutions for building Rhode Island’s economy.

The Lt. Gov. is doing just that with a new “Buy Local RI” campaign to support locally-owned businesses.

From the press release:

“The economy in Rhode Island is struggling,” Roberts said. “As we look at our economy turning down, we need to invest our dollars here in Rhode Island. One of the best things we can do is to support local businesses. We know that Rhode Island is home to thousands of unique artists, artisans, retailers, manufacturers, cafes, restaurants and farmers whose small businesses are locally owned and crucial to our neighborhoods, our quality of life, and Rhode Island’s overall economy.”

In the works for the Buy Local RI campaign are a few “Main Street” events in Westerly, Greenville, Wickford, Warren, Newport, and even our little village of Providence.

Roberts wants to encourage folks to shop at local businesses for their holiday gift shopping. So, yes, skip that sterile shopping mall and buy your grandma a bag of coffee from White Electric or a trinket from Oop!