Budget Bill Restores Previous Cuts, Adds Sales Taxes


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It’s been called the year of restoration, in part because this year’s proposed budget will restore cuts made last year to programs for the developmentally disabled and low-income dental insurance.

The “education funding formula will be fully funded for the second straight year,” House Finance Committee Chairman Helio Melo said, noting that $22 million is appropriated in the proposal.

The House’s proposal is $156.4 million more than the governor’s proposal and almost $400 million more than last year’s enacted budget.

Increases will be paid for by Chafee’s proposed luxury clothing tax, but instead of kicking in at articles that cost more than $175 as the governor proposed the House budget calls for taxing items that cost more than $250. This tax is expected to raise about $5.9 million. The governor’s proposal would have raised more than $11 million. A $.04 per pack cigarette tax is also called for and would raise an estimated $1.8 million.

Melo there will be $9.6 million for the developmentally disabled programs in this year’s budget, about half of which will come from the federal government in matching funds. Last year, $24 million was cut which resulted in some program cuts and pay cuts for low wage workers.

 

 

 

Creative Sector of RI Economy Is Growing


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Sure, unemployment is still high in Rhode Island and the state has roughly 280 less jobs in the video game sector, but it’s not all bad news out there in the local economy. In fact the “creative sector” of the economy grew by 6 percent last year, according to a study by the RI Citizens for the Arts.

The creative sector – which includes performing and visual arts, museums, film, radio, and TV, design and publishing and arts schools and services – added 770 jobs between 2011 and 2012, according to the report and 460 new businesses were created, for a 16 percent growth.

Since 2007, the creative sector has added 52 percent more businesses and overall job growth has grown by 13 percent.

“Anecdotally, we’ve long understood the creative industries as a strong and resilient sector, and a significant asset to RI’s economy,” said Libby Slader, the chairwoman of RI CFA who owns an interior design firm. “With these compiled figures, we now also have concrete evidence. This is truly a solid basis for more growth and makes for a wise investment in our state. In addition to providing core industry jobs, the creative sector feeds innovation and entrepreneurship.

According to the release, Senate President Teresa Paiva Weed agrees. In a statement provided by RI CFA, she said:

“Rhode Island’s creative industries play an important role in building and sustaining a strong economy. This annual report reinforces the importance of this vital sector to our overall economic health. Jobs are being created in the arts-related businesses, which are important to tourism and broader economic development efforts.”

RI Progress Report: Legislative Leadership and 38 Studios


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With regard to 38 Studios, the media has pointed its finger at Curt schilling, Keith Stokes, (Thanks) Don Carcieri, Linc Chafee and Gina Raimondo … but Dan McGowan is the first reporter to point towards legislative leadership. I asked Chafee about this yesterday: if the he wants all the EDC board members who supported the 38 Studios deal to step down, what have his conversations been like with House Speaker Gordon Fox, who also supported it. Being budget season, Chafee said, they haven’t had that discussion yet.

Just in case you thought the real estate crash was behind us, Ted Nesi reminds us that a third of homeowners in Providence and Kent County are still underwater on their mortgages.

Most obvious headline of the day: “R.I. seen trailing national recovery”

Scott MacKay pens a piece about the Projo’s love affair with Gina Raimondo … her office has often accused me of giving the treasurer bad press, and I’ve always countered that so glowing has most of the media coverage been about Raimondo that they may have lost touch with the difference between fair press and bad press.

Here’s the NY Times’ coverage of the “tentative” deal between Providence and its labor unions … By the way, a Times columnist is tentatively working on a piece about Woonsocket. Stay tuned…

If you look at what the Projo has been reporting the past few days and what we have been, at least we are both hearing the same stuff … whether any of it is true or not, remains to be seen.