Gencarella: To Use The Governor’s Own Phrase,“It’s A Nothing Burger”
Pam Gencarella, GoLocalProv MINDSETTER™
Gencarella: To Use The Governor’s Own Phrase,“It’s A Nothing Burger”
Back in 2014, RIMA (RI Manufacturing Association) told the Governor that the problem as they see it is many of our high school graduates are unemployable. That same year, CVS VP John Kennedy told our elected leaders that RI is not even on the radar of most businesses when it comes to considering where to move or expand (but he did provide a road map to change that). Very little has been done to address either RIMA’s concerns or CVS’ issues.
The pretense of rounding up the manufacturers yet again to get their opinion on improving the conditions for doing business in RI is just that, a pretense, a sham to look like the administration cares when in actuality it’s a Nothing Burger.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTGovernor Raimondo continues the corporate giveaways of millions of dollars in return for a few dozen jobs. Now she thinks that subsidizing some part of the $68 million cost of a new PawSox Stadium is a good idea when studies have shown over and over that spending money on local ballparks is not a good investment of your tax dollars. The PawSox good old boys asked for a lot of money last time we went through this, and chances are, they will be asking for at least the same amount again.
CVS’ Kennedy laid out the four critical areas RI needed to consider in order to fix the state’s economy. Instead, if you remember, what we got was RhodeMapRI, a ‘social equity’ plan, a plan that basically looks to redistribute wealth in the state rather than to create an economic landscape where businesses come and thrive. CVS emphasized their point by expanding in Massachusetts in 2015 rather than in RI.
So Governor, how about serving up a Big Mac? Create the economic landscape that Kennedy explained would put RI on the map - the basics that people have been clamoring for over the past 4 years - reduced regulation, a reduced and stabilized tax structure, reduced cost of energy and improved infrastructure. At the same time, serve up a BK Whopper. Address RIMA’s concern about unemployable high school graduates. Grab the Massachusetts education reform plan and duplicate it so we can be like our neighbor - number one in education results. Rhode Island does not need yet one more advisory council. Rather, it should propose policies that address the concerns of CVS and RIMA and use them as a model for its legislative agenda.
At first glance, the Nothing Burgers may sound appetizing but look at the price. The better value on the menu by far is the Bic Mac and the Whopper.
FY17 House Budget -- Winners and Losers
Winner
National Grid
When controversial Article 18 got pulled from the budget on Tuesday, critics had lauded the removal of the provision, which appeared to benefit a single wind farm - and the substantial political donor who owned it. But the real winner here is National Grid, the company owned by the British Energy Conglomerate, who would have had to force electric rate payers to pay millions more to connect renewable energy projects to the power grid and pay a greater share.
The battle is not over, however; Speaker Mattiello said that after having received feedback on Article18 and that he "reached the conclusion there are pieces of the article that do not need to be in the budget." Given the level of scrutiny is it highly unlikely the measure will see light of day as a stand-alone measure before the session adjourns, but it can't be ruled out.
Loser
Statewide Tourism Campaign
There was no last minute relief for the Commerce Corp. The often controversial agency is taking a cut.
Following the ill-fated rollout of the statewide tourism campaign this year, House Finance opted to give money back to the regional tourism bureaus that had been slated to go to the centralized effort.
Mattiello said that the House finance budget is taking $1 to $2 million from the $5 million for next year from the statewide tourism office and giving it back to the regional tourism bureaus. “We had a snafu in the effort. We’ll rely on the locals for the year, and then it will transfer back to state initiative,” said Mattiello.
Winner
Medical Marijuana Growers, Patients
One of the biggest battles of the 2016 General Assembly session started when Governor Raimondo proposed a tagging fee on medical marijuana plants -- to major pushback.
The tax as proposed in the Governor's 2017 budget would have imposed a $150 per plant charge on patients lawfully growing marijuana for medical purposes, and a $350 per plant charge for caregivers, for a projected total of $8.5 million in new revenue.
House finance scaled back the fee-per-plant to $25, to cover the costs of regulating the marketplace.
“Advocacy works. We listened to folks, no one really liked the proposal we received,” said Mattiello. “[As far as] the need of regulations, we’re probably on the low end of that. But we didn’t want to enhance revenues on prescription medications.”
Winner
ProvPort
A surprise amendment that resussciated a dead proposal.
A late session effort by the City of Providence to get a $20 million bond question on the ballot for ProvPort in November initiatially hadfallen flat as a line item in the budget.
Legislation introduced by Senate Majority Leader Dominick Ruggerio in late May and now a budget article add-on for a bond referendum of $20,000,000 to fund the acquisition, expansion and infrastructure improvement of up to approximately 25 acres of land and facilities located between Allens Avenue in Providence and the Providence River by ProvPort, Inc.
While it appears to be a House Finance budget “loser” the battle is not over yet for the year, as Mattiello said there is still ongoing discussions.
Winner
Business Owners
Mattiello touted in his “pro-business, pro-economy” budget lowering the minimum corporate tax from $450 to $400. This comes a year after the General Assembly lowered it from $500 to $450 last year, taking away at that time the dubious distinction for Rhode Island being the state with the highest corporate minimum tax.
“There are no new taxes or fees,” said Mattiello of the House Finance FY17 budget (apart from the $25 medical marijuana tax).
Loser
School Infrastructure
Raimondo had called for a $40 million school construction and renovation bond to be put on the November ballot, but Mattiello said during a media briefing that the state should wait for the completion of a study expected to show what exactly the construction needs are for the state’s schools.
Mattiello said that there is still funding in the budget for school construction needs, as Raimondo had also proposed an $80 million appropriation for construction and renovation, including of $9.1 million for the school building authority -- but the dedicated bond question that would have increased resources by 50% -- was off the table in the House Finance budget.
Winner
Smokers and Mini-Marts
After years of steady increases in the state’s cigarette tax, smokers got a reprieve in House Budget when the committee rejected Raimondo’s proposal to raise the cigarette tax twenty-five cents from $3.75 to $4 a pack.
Make no mistake about it, this is just as much about the convenience stores not wanting the additional tax on their golden goose - and New England Convenience Store Association lobbyist Brian Goldman just got vetted by Senate Judiciary for his nomination from Raimondo to replace Associate Judge Frank Cenerini, who retired in October 2014.
Loser
Raimondo’s Minimum Wage Hike
Governor Raimondo once again pushed for an increase in the state’s minimum wage, and it appears she will be once again denied by the legislature.
Speaker Mattiello said that Raimondo’s effort to boost the minimum wage from $9.60 to $10.10 an hour would be a no-go. So while it falls in the loss category for those who were pushing for it, it could have been labeled as a win for business owners who have said they couldn’t incur such a mandatory increase.
Winner
Retirees (Pensioners)
“We are giving pension relief to everyone who receives some type of pension income, whether it’s public employees, private, or veterans,” said Mattiello.
Mattiello noted that the tax deduction “will be income tested, [and] you have to be Social Security age to qualify.” The tax exemption is slated to apply to the first $15,000 in retirement income, for those qualifying individuals with incomes of $80,000 or less, and couples up to $100,000.
Loser
Solar and Wind
While the removal of Article 18 was championed as a win against crony capitalism, there was more at stake than just one developer with strong political ties. While the article appeared as of Tuesday looked to be gone from the budget, that did not mean the legislative proposal could not stand alone. EcoRI was quick to point out however all that the article did for provide for a number alternative energy incentives including:
Article 18...would allow loans for projects using net metering and virtual net metering, as well as those priced through the Renewable Energy Growth Program.
Article 18 also includes a five-year extension of the state Renewable Energy Fund, which provides grants for small- and medium-sized solar projects. The funds are collected through a monthly surcharge on electric bills and the pool of funds, currently about $6 million, is distributed to solar developers and installers through the Rhode Island Commerce Corporation.
Article 18 also exempts residential and commercial manufacturers from paying local property taxes. It also establishes a statewide property tax rate for commercial renewable-energy systems. The new tax rate will be determined by the Office of Energy Resources.
Winner
Beach Visitors
Beachgoers get a win.
Everyone who loves the beach gets a win with the the House budget. Speaker Mattiello touting that “beach fees are reduced to the 2011 level” for the coming year.
A season pass for residents would be slashed from $60 to $30, non-residents from $120 to $60, and Rhode Island senior citizens from $30 to $15. Plus, one-time entrance fees would be lowered for residents from $10 to $6 (and senior citizens, down to $3).
