Trucking Toll Alternative Proposed for RI
GoLocalProv Politics Team
Trucking Toll Alternative Proposed for RI
On Monday, members of the Rhode Island House Republican Caucus unveiled their proposal calling for $60 million dedicated to bridge restoration in the current budget -- which currently does not address Raimondo's toll plan.
The proposal rejects Raimondo's call for $900 million in borrowing as "too costly".
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"The interest on that large sum is between $35 million and $45 million annually," explained Representative Patricia Morgan. "Additionally, the fees for bond counsel and underwriters will consume more money that can be used to put people to work, buy construction materials, and fix our bridges. In total, we will spend more on interest to banks, lawyers and Wall Street than we will on actual bridge construction."
The House Republican Caucus contends that it can eliminate tolls and see that the bridges will be fixed and "not hurt the economy."
"We recognize that our bridges need immediate first aid," said Minority Leader Brian Newberry. "As a result, we have crafted a funding stream that begins the restoration of the most structurally deficient without delay and in a fiscally prudent manner."
Impact Outlined
"We are concerned about the impact taking $100 million a year from our trucking industry will have on consumer prices and on our economy as a whole," said Representative Robert Lancia. "No one can claim that it won't cause significant damage."
"Let's not forget the Quonset Point Business Park," said Representative Justin Price. "Quonset Point has been a strong contributor to our economy's well-being. Over 200 companies in diverse industries depend on reliable and low cost trucking. The automobile storage and transfer facilities, which taxpayers captured by supplying dredging of the Bay, may no longer find it profitable to remain in that location. We want to make sure that our policies are truly pro-business. It is foolhardy to ignore the very real potential for damage."
Morgan noted the Assembly would have to commit to an annual appropriation to make the proposal work.
"Our proposal allows us to begin the work immediately and get our construction trades back to work in a fiscally responsible way. Of course, the legislature will need to commit to continued funding at this or higher levels for the next 10-12 years, but the deficient state of our infrastructure demands that sustained commitment," said Morgan. "We hope our House colleagues will concur and vote to include this Article amendment in this budget. There is little time to lose."
FY 2016 House Budget Winners and Losers
Winner
All Day Kindergarten
The new law of the land will make all-day kindergarten the standard for both wealthy communities and economically under-performing.
This was a campaign promise of Governor Gina Raimondo and has long been advocated by education reform advocates.
Loser
Superman Building and Job Creation in Providence
The effort to rehab the vacant Superman building and lure Citizens Bank to relocate's post-IPO corporate HQ to the City of Providence's Financial District took a big hit with the House Budget capping the real estate tax credit at $15 million per project.
Will this spark Citizens to move to Boston or Hartford?
Loser
Regional Tourism Councils
The budget strips the regional tourism councils of their state funding and consolidates the dollars at the state level with the Commerce Corp. For Discover Newport and Providence-Warwick Convention and Visitor's Bureau will take massive budget cuts (as will the smaller regional groups).
Winner
HealthSource
Rhode Island's Obamacare state health exchange looked dead back in January. Speaker Mattiello hinted that he wanted to disband the new structure, but like Houdini the health insurance program received funding from a new employer tax and state funding.
HealthSource lives.
Winner
Small Businesses
The House budget reduces the corporate minimum tax from $500 to $450, making Rhode Island "now between Massachusetts and Connecticut," said Mattiello.
The Finance Committee also sped up the Raimondo’s proposal to phase out the sales tax that all nonmanufacturing businesses pay on their electric, natural gas and heating fuel bills. The original proposal would have phased out the tax over a five-year period, but the committee chose to eliminate the tax all in one year. The cost to the state will be $20 million in FY 2016 instead of $4.9 million as originally proposed.
Winner
Working Families
The Earned Income Tax Credit was increased to 12% from 10.5% of the federal poverty level. .
The issues was a major focal point of the Economic Progress Institute.
Winner
195 Commission
Governor's Raimondo got her wish for $25 million to develop 195 land in Providence as it was fully funded. This is a win for the new Governor and her newly appointed members of the Commission.
This funding will allow the Commission the flexibility to support proposed projects and potential tenants.
Loser
Smokers
The budget raises the per pack tax by $0.25. The tax is now $3.75 per pack and it is anticipated to generate $7.1 million in new revenue.
Rhode Island's tax will be the second highest in the United States - behind only New York.
Loser
Budget Process
Despite promises by Governor Raimondo and Speaker Mattiello, the budget process is as cloaked and chaotic as ever.
Documents not printed.
Lack of commitment to timelines.
Little opportunity for review and discuss.
The salvation was the budget bill has the full support of both Democrats and Republicans on the House Finance Committee.
