Raimondo presents budget plan, keys on business tax cuts and education spending
PROVIDENCE — As she gave her second State of State Address in the House chamber Tuesday evening Gov. Gina Raimondo pointed to work already done showing Rhode Islanders working together can improve their state and its economy.
State leaders in Rhode Island have cooperated on key issues to move the economy forward and that is a break from the national trend of political leaders “shouting past each other” to pursue their own agendas, according to Raimondo.
“Here in Rhode Island, we are showing that we can forge consensus and that we are working together to achieve progress through collaboration and compromise,” Raimondo said.
To that end, Raimondo thanked the General Assembly’s membership for “your partnership and commitment to Rhode Island’’ offering that “together we are improving the lives of Rhode Islanders.’’
As she related anecdotes of Rhode Islanders she has met that are still struggling in the current economy and still looking for enough work to pay their bills, Raimondo
suggested there is still work to be done to improve the economy and provide the state’s residents the jobs they need.
As result of those experiences, Raimondo said the goal of creating jobs and growing the state’s economy remains on her mind from “the time I wake up in the morning, to the time I put my kids to bed at night.’’
“I know that Rhode Islanders are frustrated,” Raimondo said while noting the state’s residents are “frustrated because there are too many potholes in our roads and they are frustrated because our bridges are crumbling,” a clear reference to her plans to fix that issue with a new highway tolling system.
But Rhode Islanders are also concerned with a lack of pay raises and unemployment, and Raimondo said “the good news is that our state is making progress,” and its economy is getting stronger.
Last year, the Governor said, the state’s housing market had the strongest year it has had since 2004 and at the same time the economy created 8,000 more jobs, the biggest increase since 2000. The state’s unemployment rate also dropped last year, a drop “more than any other state in the union,” the Governor said.
“Let me say that again, Rhode Island had a larger drop in its unemployment rate last year than any other state in the nation, and we’re now at 5.1 percent,” Raimondo said.
The successes also include new development plans for a life sciences complex on the former Route 195 land in the downtown, a move proving that “I’ll talk to anyone, anywhere to bring jobs to Rhode Island,” the Governor said.
She also pointed the “economic tools” the General Assembly put in place as a “big part of the reason” the new development proposals were surfacing.
“That is the kind of partnership that works for all of Rhode Island,” Raimondo said.
The Governor also noted a local manufacturer, Greystone, a company making automotive and aerospace products has also decided to expand in Rhode Island instead of at another out-of-state location because of the job creating tool passed by the General Assembly last year. “Now 25 good-paying, advanced manufacturing jobs are being created in Rhode Island,” the Governor said.
“That means 25 more Rhode Islanders will be able to go off to work in the morning and come home at night feeling a little more secure,” Raimondo said. That success also shows the state’s commitment to rebuild its economy “one good job at a time,” Raimondo said.
The state also moved last year to expand the Earned Income Tax Credit helping families to keep more of the money that they earned and approved increases to the minimum wage.
Raimondo said she was also asking the General Assembly to increase the minimum wage again, this time to $10.10, and noting the General Assembly also helped seniors last year when it acted to reduce the taxes on Social Security benefits.
“I’m excited about the progress we’ve made but there is more to do and we need to just keep going,” she said.
The Governor outlined her goals to seek more advanced industry jobs for Rhode Islanders and to encourage businesses to invest in research and development in conjunction with the state’s universities and colleges.
“Everyday businesses are investing in new, cool products and I want them doing that here in Rhode Island,” she said.
To help that occur, Raimondo said she was proposing a major expansion of the state’s Research and Development tax credit to encourage businesses and individuals to make their cutting edge products in Rhode Island.
She is also proposing expanding a program to assist college students in repaying their college loans if they graduate from a Rhode Island institution with a B+ or higher. “We need those graduates to stay here in Rhode Island and be a part of our economy,” she said.
The governor also outlined proposals for improving education in the state while citing the work of Central Falls High School student Katherine Carrillo in working part-time to help her family while also playing soccer and taking four college courses in preparation for her college career.
The state has also launched the R.I. Promise Fund, which has made it possible for 6,000 students in the state to attend college.
“The budget I present tonight continues funding for this scholarship program, and it also ensures that we won’t have to raise tuition at URI, RIC or CCRI,” she said.
She also addressed what she called the “crisis of overdose deaths” in the state while relating the story of a Pawtucket couple who lost two sons to fatal drug overdoses.
“Elise from Pawtucket and her husband are here in the chamber with us tonight,” she said.
The couple had two adult sons: Teddy, age 30 and Paul, age 22, who both died of drug overdoses.
“As parents, Andy and I can’t imagine your pain. Elise is courageously telling their story, and fighting to reassure other families that they aren’t alone,” Raimondo said.
She advocated dealing with the issue in four areas: treatment, overdose reversals, prevention and recovery.
The Governor said her proposed budget, which was just submitted to Legislative leaders on Tuesday, also proposes investing “another $50 million” to rebuild school buildings across the state and also includes proposed changes for funding charter schools that were recommended by the working group reviewing the state’s education funding formula.
The changes will continue the process of funding following the child but also levels the playing field for public school districts by retaining certain funding for their costs.
“As a result, our public schools will see new investments, and every school district in Rhode Island will be better off than it was before these changes,” Raimondo said.
The Governor’s remarks came during a joint session of the House and Senate that was convened by House Speaker Nicholas Mattiello, who then turned over the podium to Senate President M. Teresa Paiva Weed who then hosted the session. The state’s judiciary, state officers, college presidents, state directors and law enforcement and guests preceded the Governor’s arrival in the chamber.
Also attending were municipal leaders such Town Administrator T. Joseph Almond from Lincoln, North Smithfield Town Administrator Paulette Hamilton, Mayors William Murray of Cumberland, James Diossa of Central Falls, and Lisa BaldelliHunt of Woonsocket.
Baldelli-Hunt said she planned to listen to Raimondo for word on what "plans she has for Rhode Island and in particular her plans for the urban distressed communities."
The General Assembly has been consistently funding the state's Aid to Education Formula over its 7-year phase in "and Woonsocket is on the receiving end of that each year," the Mayor said.
The General Assembly also put a grant program in place last year that helped municipalities improve their downtown areas and she believes is important for municipal leaders to stay tuned into what the Governor is proposing to continue such support.
“I would say she wants to us to succeed because she wants the state to succeed,” Baldelli-Hunt said. “You are only as a strong as your weakness community and so you need to make sure the support for all of your communities is in place,” she said.
State Rep. James McLaughlin from Cumberland said, he hoped to hear more about the Governor’s proposed changes to the state school funding formula and noted that is a very important issue to public districts that have charter schools serving their communities.