Clothing, Cigarette Taxes Considered for Budget


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With the proposed budget expected to restore some funds cut last year, several revenue sources first identified in Gov. Chafee’s budget proposal may be used to pay for them.

House Finance Committee Chairman Helio Melo, who has been tight-lipped about the budget he has been crafting with staff for the last several weeks, said, “Revenues are always a good way to pay for expenditures.”

He added, “We’re still working on it.”

But lawmakers from both the House and Senate said ideas being strongly considered include: a new tax on expensive clothing, an increase in the cigarette tax and a tax amnesty proposal. All three proposals were first identified in Chafee’s budget proposal released much earlier this year.

The proposed tobacco tax increase of $.04 per tax could generate more than $4 million, according to Chafee’s budget. A tax amnesty is when people who owe back taxes are allowed to pay their delinquent bills without penalty.

Chafee proposed the tax on high-end clothing kick in at any item over $175 and is expected to generate more than $11 million. The House is inclined to start the tax at $175 or $200. Senators would rather see it start higher; one mentioned $250.

After a meeting with Speaker Gordon Fox late in the day Wednesday, Senate President Teresa Paiva Weed said a clothing tax would benefit big box stores that could avoid paying it. She also said it would take away Rhode Island’s competitive advatage over Massachusetts, which already taxes clothing more expensive than $175.

“Whatever we do in the budget on any area of revenue needs to maintain our competitive advantage,” she said. “It’s important that we remain competitive with our neighbors in Massachusetts.”

Governor Should Appoint Brian Hull to EDC Board


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It was good timing for me that former RI Future owner Brian Hull had to focus on finishing his studies at Harvard University earlier this year, giving me an opportunity to take over this site from him. Now it’s good timing for Rhode Island.

Hull just graduated from Harvard’s prestigious Kennedy School of Government with a Masters Degree in Public Policy focusing on economic development and social and urban policy and he would make an excellent and logical appointment to the state Economic Development Board.

In the wake of the 38 Studios fallout, there are currently as many as five vacancies on the EDC board. Instead of filling all those slots with the same type of local business leaders that typically inhabit the seats at the EDC table, Gov. Chafee should consider naming at least one person – and probably more – who understands economic development from a systematic perspective.

“The structure of the RIEDC lacks a presence of a theoretical understanding of economic development planning and that’s something I could bring to the table,” Hull told me, when I told him about my idea for this post the other day. “Rather than looking for the next best ‘deal’ which is how things are currently done, RIEDC really needs to focus on the larger picture of the state’s economy in relation to the region, play on its assets and strengths, and think about a long-term growth strategy that targets resources in focused way.”

Hull, who lives in Providence with his wife and plans to stay in the home they own, tried to get a job in economic development in Rhode Island. Instead, he landed a job as a senior policy analyst with the Initiative for a Competitive Inner City, a Boston-based “nonprofit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there.”

While he’ll be working with cities all across the country, he’s also looking for a way to stay involved with economic development here in Rhode Island, too.

I asked Hull what kind of experience he has successfully implementing economic development plans, and he sent me this list:

Rethinking Workforce Development for Providence’s Labor Force: A skills gap analysis for Providence’s labor force, review of the workforce development system servicing Providence residents, and a comprehensive actionable list of recommendations and implementation procedures to modify the current training system in order to improve service delivery, achieve better employment outcomes for Providence residents, and better engage low-income and low-literacy populations in job training programs to facilitate their employment.

City of Worcester Economic Development Plan: Formulate an economic development plan for the City of Worcester by undertaking four-part strategic assessment of the local economy to understand its strengths, weaknesses, and opportunities for leveraging additional economic development through a baseline analysis, development agenda, strategic focus on key areas, and detailed research and analysis.  The report (1) identifies key economic development opportunities and challenges in Worcester, (2) offers a strategy of proactive change to overcome those challenges and capitalize on opportunities, and (3) provides first steps to prioritize, target, and implement the strategy. The strategy synthesizes a variety of economic development approaches, and is rooted in Worcester’s context – inherent assets, established partnerships, existing business support capacity, and common goals for the City’s future.

City of Miami Transportation and Logistics Business Cluster Analysis: This report analyzes on the competitiveness of Miami’s transportation and logistics cluster, with a focus on marine transportation, by identifying the strengths and weaknesses of the Port of Miami in relation to other ports in the state, in the country, and in the world.  It also recommends specific changes to ensure that the Port of Miami retains and grows its current market share in the transportation of high-value added goods and the global cruise industry.

New Orleans Broad Street Four Corners: This report proposes a strategic partnership in New Orleans, LA between Broad Community Connections, a nonprofit that focuses on revitalizing a section of the Broad Street corridor, and the Crescent City Community Land Trust, a new land trust in New Orleans that will focus on commercial and residential redevelopment. As part of the analysis, we examined current models of community land trusts in the United States that have experience with commercial properties.

Typically, people are appointed to the Economic Development Corporation’s board because they have been successful in business. Hull has been successful in economic development. The two are not the same thing. We ought to have people who have succeeded in business on that board, but we ought to also have people who have succeeded in economic development.

Hull has done both, having also run a successful photography shop, more akin to the kind of businesses that are the back bone of the Ocean State, for 15 years before going to Harvard.

If you agree that Hull should be appointed to the EDC board, tweet this article to @LincolnChafee or send the governor’s office an email: governor@governor.ri.gov.

 

 

RI Progress Report: Marijuana Decriminalization, Brien Defends ALEC, Doherty Distances Self From Norquist


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Two legislative committees last night passed a bill that would make possession of less than an ounce of marijuana punishable by a ticket rather than potential jail time. The bills now head the floors of the Senate and the House. Decriminalization of marijuana makes a lot of sense as it would save taxpayers money and resources without any real downsides.

Rep. Jon Brien, a conservative Democrat from Woonsocket who is also a member of ALEC’s board of directors, has a letter to the editor about how the conservative group has been treated in the media as of late. He writes, “The attacks on the American Legislative Exchange Council have grown louder over the past few months, and even more so over the past few weeks. The real reason ALEC is under attack is because liberal front groups are attempting to completely silence our organization. This was never about the way we operate or a few pieces of legislation. It’s about the fact that they vehemently disagree with our free-market, limited-government principles.”

We applaud Republican congressional candidate Brendan Doherty’s decision not to sign Grover Norquist’s anti-tax pledge but suspect it has more to do with running for office in generally-liberal Rhode Island than it does with his ideas on how to fund government.

Telling headline of the day: “Over 50% of Dropouts Come From Just 12 RI Schools”

Equally telling lede: “The Providence schools are not meeting the needs of its English-language learners, even though they make up 15 percent of the district’s 22,000 students.”

Why isn’t the national media covering Florida’s attempts to purge registered voters from its books?

Rest in peace, Doc Watson.