War of the Roses Breaks Out Between Mattiello and Raimondo
Analysis
War of the Roses Breaks Out Between Mattiello and Raimondo
The uncharacteristic eruption seemed to be sparked by Raimondo going to the Cranston Herald and critiquing the Speaker over his opposition of her free college proposal and her alternative 30 percent car tax cut.
Taking the issue to the Speaker’s backyard is an unusual tactic and a, de facto, declaration of political war. The strategy is unusual. Even when speakers and governors were of different parties, public wars are unusual. It was rare for GOP Governors like Ed DiPrete, Lincoln Almond, or Don Carcieri to publicly chest thump speakers like Matty Smith Joe DeAngelis, John Harwood, Bill Murphy or Gordon Fox. However, the Mattiello and Raimondo tensions have been building for years.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAlmost two years ago to the day, Raimondo and Mattiello had a very public spat when Raimondo publicly criticized Mattiello’s budget process while she was attending the National Governor’s Association (NGA) meeting. At the conference in February 2015, Raimondo said that the General Assembly and lobbyists take the governor’s proposed budget and “hack it up every which way.” Ironically, she is attending the NGA this weekend.
Raimondo claimed in 2015 that her job as Governor is “to shine a light” on the process.
Mattiello fired back at the time that Raimondo’s criticism was an “inaccurate depiction” of the budget process. Within days she apologized to the Speaker.
Replay in 2017 — Two Years Later
According to State House sources, Speaker Mattiello was furious that Raimondo took their disagreements over the car tax and her free college proposal not only public, but directly to his district.
By Friday afternoon Mattiello responded and launched a series of four tweets calling Raimondo “tone deaf on the issue this issue (eliminating the car tax) and should start listening to the people of Rhode Island.”
Mattiello went on to critique Raimondo for offering a free college tuition plan, “truly unsustainable and fiscally irresponsible is her plan to make us the only state in... the nation to give away ‘free’ taxpayer-funded college tuition.”
I have heard from the citizens of the state and I understand they want the burdensome car tax eliminated. (1/4)
The Governor is tone deaf on this issue and should start listening to the people of Rhode Island. (2/4)
What is truly unsustainable and fiscally irresponsible is her plan to make us the only state in... (3/4)
the nation to give away ‘free’ taxpayer-funded college tuition. (4/4)
“Governor Raimondo is standing up for middle class families. Her car tax relief will put money back into Rhode Islanders’ pockets and her college proposal will make college a possibility for all Rhode Island students,” said Michael Raia, of Raimondo’s office. “The truth is, 70 percent of jobs coming to Rhode Island require a degree past high school and Governor Raimondo wants those jobs to be filled by Rhode Islanders. Governor Raimondo ran for office so that Rhode Island could be a leader and she’ll work with anyone who is willing to help propel Rhode Island forward.”
The very public battle is an indication of a frayed relationship between the two. Both Mattiello and Raimondo have chinks in their armor and see running "against" the other as a smart political strategy. Mattiello won re-election by under 100 votes and has overseen a House plagued by issues of malfeasance — see Ray Gallison and John Carnevale.
Correspondingly, Raimondo won the Democratic primary for Governor in 2014 with just 42.7 percent of the vote in a three way race against Angel Taveras and Clay Pell, then squeaked into the Governor’s office with just 40 percent of the vote in another three way race against GOP Allan Fung and the late Bob Healey.
Raimondo is facing a difficult re-election in 2018. With the Rhode Island economy still stagnant and major promises — drivers licenses for undocumented and Superman building — still vacant to name a few unfulfilled. Pressure is building for Raimondo.
What’s Next?
The now public battle is unlikely to subside and could spread beyond car tax and free college.
With Raimondo vulnerable on the failed UHIP program, she could face a far more aggressive House Oversight Committee. The Committee Chair Pat Serpa has called for the State Auditor to do an independent investigation. “This is a serious problem that has impacted all Rhode Islanders. UHIP’s failures had a dramatic effect on our recipients and providers who depended on these services, but the broken system has also impacted all of our state's taxpayers who must foot the bills for this botched effort,” said Representative Serpa.
UHIP’s failure plays on Raimondo’s Achille's heel — that she lacks compassion for average Rhode Islanders.
House leadership could also create greater restrictions on RI Commerce Corporation’s subsidies which were recently characterized by former Governor Lincoln Chafee as a “candy store.”
Winners and Losers in Raimondo's FY18 Budget Proposal
Winner
Criminal Justice Reform
Per recommendations from the Justice Reinvestment Working Group, the Governor is proposing nearly $1 million in investments such as the public defender mental health program ($185,000), improved mental health services at the ACI ($410,000), recovery housing ($200,000) and domestic violence intervention, in her FY18 budget.
Winner
English Language Learners
Under the heading of “promoting 3rd grade reading,” Raimondo proposed adding $2.5 million to make English Language Learning (ELL) K-12 funding permanent. The Governor’s office points out that RI is one of four states that doesn’t have permanent funding.
The suggestion was one made by the Funding Formula Working Group in January 2016, who said that “in the event that Rhode Island chooses to make an additional investment in ELLs, the funding should be calculated to be responsive to the number of ELLs in the system and based on reliable data, and include reasonable restrictions to ensure that the money is used to benefit ELLs — and promote the appropriate exiting of ELL students from services.”
Winner
Car Owners - and Drivers
Governor Raimondo wants to reduce assessed motor vehicle values by 30% - a change that would reduce total car tax bills by about $58 million in calendar year 2018. Speaker of the House Nicholas Mattiello, however, has indicated that he might want to go further in its repeal.
In her budget proposal, Raimondo also put forth adding 8 staffers to the the Department of Motor Vehicles to "address wait times."
Winner
T.F. Green
The “Air Services Development Fund” would get an influx of $500,000 to “provide incentives to airlines interested in launching new routes or increasing service to T.F. Green Airport.” The Commerce Corporation set the criteria at the end of 2016 for how to grant money through the new (at the time $1.5 million fund).
Also getting a shot in the arm is the I-195 development fund, which would receive $10.1 million from debt-service savings to “resupply” the Fund to “catalyze development & attract anchor employers.”
Tie
Minimum Wage Increase
An increase in the state minimum wage is part of Raimondo’s proposal, which would see it go from $9.60 an hour to $10.50 an hour. Raimondo was unsuccessful in her effort in 2016 to bring it up to $10.10 — it was June 2015 that she signed legislation into law that last raised Rhode Island’s minimum wage, from $9 to 9.60.
The state's minimum hourly wage has gone up from $6.75 in January 2004 to $7.75 in 2013, $8 in 2014, and $9 on Jan. 1, 2015. Business groups such as the National Federation of Independent Business however have historically been against such measures, citing a hamper on job creation.
Tie
Cigarette Tax
Like the minimum wage, Raimondo is looking for an increase - in this instance, the cigarette tax, and revenue to state coffers. Raimondo was unsuccessful in her effort to go from a tax of $3.75 to $4 last year. Now she is looking for an increase to $4.25 per pack, which the administration says would equate to $8.7 million in general revenue — and go in part towards outdoor recreation and smoking cessation programs.
The National Federation of Independent Business and other trade groups have historically been against such an increase, saying it will hurt small businesses - i.e. convenience stores. And clearly, if you’re a smoker, you’re likely to place this squarely in the loser category instead.
Loser
Hospitals
As often happens in the state budget, winner one year, loser the next. As GoLocal reported in 2016, “the Rhode Island Hospital Association immediately lauded the budget following its introduction, and addressed that while it is facing some reductions, that it "applauds" this years budget after landing on the "loser" list last year.”
This year, it falls back on the loser list, with a Medicaid rate freeze to hospitals, nursing homes, providers, and payers — at FY 2017 levels, with a 1% rate cut come January 1, 2018.
Loser
Online Shoppers
The taxman cometh — maybe. Raimondo proposed an “Internet Sales Tax Initiative” — which would purportedly equate to $34.7 million in revenues.
"Online sales and the fact that online sellers do not collect sales tax has created a structural problem for Rhode Island's budget — our sales taxes have been flat," said Director of Administration Michael DiBiase, of the tax that Amazon collects in 33 states, but not Rhode Island. "We think mostly due to online sales, we’re able to capture the growth. The revenue number is $35 million dollars — it improves our structural deficit problem. It’s an important fiscal development."
Loser
Long Term Care Funding
The Governor’s proposal recommends “redesigning the nature” of the State’s Integrated Care Initiative, by transferring long-term stay nursing home members from Neighborhood Health to Medicaid Fee-for-Service and repurposing a portion of the anticipated savings (from reduced administrative payments to Neighborhood Health) for “enhanced services in the community.” “The investments in home- and community-based care will help achieve the goal of rebalancing the long-term care system," states the Administration.
Cutting that program is tagged at saving $12.2 million; cuts and “restructuring” at Health and Human Services is slated to save $46.3 million.
