PROVIDENCE, R.I. — In a sit-down with reporters on Tuesday, Governor Raimondo acknowledged the state's new "budget reality" may force her to scale back — but definitely not withdraw — her high-profile call for two years of free state-college-tuition.

She called the state's newly projected $100 million revenue shortfall in the new budget year that begins on July 1 "a short-term revenue problem driven in large part by uncertainty out of Washington."

"I think we have to be careful in general right now about getting [out] over our skis on any new expenditures that are very large because ... I don't know where [President] Trump is going to come out on the Affordable Care Act. I don't know what's going to happen with federal tax policy. It is a period of uncertainty,'' Raimondo said.

"Does that mean it has to be phased in? It has to be started in a smaller way? I think we have to look at all of it because now isn't the time to take any measures that we might later say, oh, we should have gone slower,'' she said.

But she said it would be "a mistake" to withdraw the two years of free state college tuition she proposed in January — at a first-year cost of $10 million — when the revenue picture looked brighter.

Hammering a familiar theme, she said she hears "from people literally every single day who say to me, 'It's all about skills and education and being near a skilled-workforce.' ... If it has to be modified this year in light of the budget reality, then that's what we have to do because we have to be responsible ... But right now as I am looking at everything, I think it would be a mistake to back away from investing in job training and education because almost all good jobs we are creating require a degree past high school."

She acknowledged some cuts to her initial $9.2-billion state and federally financed spending plan will be necessary, however.

'You've got to look at everything. A third of the budget is basically health care, Medicaid, education funding. ... Look where the money is, obviously."

"I don't see how you get through this without some cuts to social services, just because that's so big [in] the budget, but we can't balance this budget exclusively on the backs of the most vulnerable."

"What would be a disastrous thing — and I think a major mistake — would be to cut in job-creating investments ... We can't go backwards. We lived for too long with the highest unemployment rate in America, and I don't want to go backward."

In a related development, the state budget office released a third-quarter report that essentially reaffirms the state's financial plight. The report projects a $13.7 million year-end surplus this year, instead of the $78 million surplus anticipated when Raimondo delivered her 2017-18 spending proposals to lawmakers in January. A smaller surplus this year means a smaller opening-balance for the state in the new budget year on July 1.

Asked if Providence Council President Luis Aponte should step down in light of his indictment last week on charges of embezzlement and misuse of campaign funds, Raimondo said yes.

She said "the whole situation'' — on the heels of a successful recall vote for another tarnished city councilman — "it's just so frustrating and upsetting and disappointing and unacceptable and just erodes the people's confidence in their government leaders."

"I do think he should step down ... as council president ... If it were me, I would probably resign" from the council,'' she said.

If he does not, "the voters of Luis' district should decide if they want to recall him. But there's just no place for it. It's inexcusable. It's got to stop."

She noted her attempts, this year, to convince state lawmakers to pass two bills they have been leery of passing in the past. One would require random audits of politicians' campaign fundraising-and-spending reports, and the other would bar candidates — including incumbents — with unpaid campaign finance fines from running for office.

"At some point we have to change the culture and the hope would be if anyone knows at any time they could be audited, there's an incentive to play by the rules."

While state election officials and others have raised questions in the past about erecting obstacles to candidates getting on the ballot, Raimondo said her State House lawyers have advised: "you can put limits on people's ability to stand for election."

The bills are pending.

kgregg@providencejournal.com

(401) 277-7078

On Twitter: @kathyprojo