House Speaker Nicholas Mattiello

June 13, 2016June 13, 2016

Mattiello’s budget helps insurance companies, underfunds health regulators

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Though Speaker Nicholas Mattiello refuses to call them budget cuts, OHIC, the Office of the Health Insurance Commissioner, will suffer a 75 percent reduction in staff under the new budget unveiled last week. One health care advocate called the reduction in staff “a complete surprise.”

These cuts will reduce the effectiveness of OHIC in advocating for lower rates for consumers in Rhode Island, and are seen as a major giveaway to the health insurance industry.

A letter being widely shared throughout the health and medical advocacy community has been shared with RI Future:

The budget passed by the House Finance Committee June 8^th cut 9 full-time staff from the Office of the Health Insurance Commissioner (OHIC), effective FY2017. This 75% cut in staffing leaves only the Commissioner, an administrative assistant, and one additional staff member to manage the functions of the office.

The 9 positions that have been cut are essential for OHIC to carry out health insurance premium rate review, which OHIC uses to protect consumers from excessive rate increases; health benefit plan form review, which ensures that mandated services are covered, including preventive services like cancer screening; market conduct examinations (for example, mental health parity); and addressing consumer and provider complaints.

Rate review alone has saved Rhode Island employers, employees, and consumers $196 million since 2012, including $40 million in 2015. These savings come from the Office’s review which can lower premium rates requested by insurers while ensuring that rates are based on sound actuarial standards.

OHIC also reviews rates for Medicare Supplement Plans, which saves money for Rhode Island’s seniors, Student Health Plans, which saves money for students, non-Affordable Care Act Health Insurance Plans, and Dental Plans.

“If these cuts remain:

OHIC will not have the staff to conduct adequate rate and form reviews, which will harm the state’s ability to protect consumers and employers from excessive premium rate increases.

OHIC’s capacity to address consumer and provider complaints about insurer business practices will be severely limited, since staff to manage these cases is cut in the proposed budget. This will negatively affect Rhode Islanders. For example, OHIC investigated a company issuing short term limited duration coverage. The investigation discovered improper denials by the insurance company and OHIC required the company to pay improperly denied claims totaling $36,697.

OHIC will not be able to adequately review health benefit plan forms. This means that there will be no watchdog to ensure that state mandated benefits are covered and covered fairly (parity), including services for mental health and substance abuse disorders, ensure that discrimination does not occur, and ensure that services are not unfairly excluded.

OHIC will no longer have adequate ability to protect consumers from unscrupulous companies issuing non-compliant and misleading insurance plans.

“Rate and form review is a key component of health reform. It must be carried out by state governments, because the federal government does not have the authority to deny or modify premium increases in the states. In recent years the federal government has provided start-up and development grants to states to build and enhance rate review and oversight initiatives as a means to protect consumers and improve insurance affordability, with the expectation that states would continue the work. Rhode Island’s grants have allowed us to maximize our statutory authority to review rates and forms and to build one of the most comprehensive health oversight agencies in the country – but no further grant opportunities are being made available by the federal government.

“The 9 positions sought by the Administration for OHIC are integral to having a well-resourced watchdog agency in place to protect and maximize savings for employers, employees, and consumers. Only a well-resourced OHIC can provide the necessary level of oversight to protect Rhode Island consumers and businesses.”

Last week Speaker Mattiello defended the cuts at the Budget Briefing under questioning from Representative Teresa Tanzi. Mattiello said that these jobs were only made to last as long as there was federal funding to support them.

May 9, 2016May 10, 2016

Safer Rhodes Coalition visits Mattiello’s parish advocating for driver’s licenses

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On Sunday, just days after celebrating Rhode Island’s independence, community members, students and undocumented workers part of the Coalition for Safer Rhodes went to the Mother’s Day service at Speaker Nicholas Mattiello’s Immaculate Conception Parish to reiterate the support of Bishop Tobin regarding House Bill 7610. The legislation would allow undocumented workers to obtain a limited driver’s license.

“Our Holy Father reminds us that he himself is the son of a immigrant family, and he has urged American’s to welcome immigrants into our midst.” –Bishop Tobin

Undocumented labor, faith and the student community called on parishioners of the parish and Speaker Mattiello to recognize the need for limited licenses for the undocumented community, and the need for the General Assembly to pass H7610. Flowers were delivered to all parishioners who are mothers as a sign of solidarity among every Rhode Island family, and as a wish that every family live in security and freedom.

From an RI Jobs with Justice press release

February 17, 2016February 17, 2016

Smith Hill hijinks of high hilarity

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With shocking regularity and little sanity, our grand spectator sport-cum-soap opera akin to professional wrestling that is the Rhode Island legislature has continued to pump out hilarious moments that should be making us weep if it were not for the fact this is oh-so-typical. Not since Gibbon profiled the latter days of Rome has a corrupt, bloated, under-financed and over-romanced city-state with delusions of grandeur produced this much copy.

First there was the news that Sen. James Sheehan, in a letter he wrote to Senate President Theresa Paiva Weed that he said was not meant to become public (gee I wonder who leaked it then?), expressed dismay that Speaker Nicholas Mattiello had called any effort to enact ethics reform “an act of war”. Within a few days of that, Mattiello allegedly reshuffled those reps who voted against the controversial RhodeWorks bill out of key committee appointments. Et tu Brute?

Then came the news that Republican Sen. Nicholas Kettle had submitted a bill to require photo identification with purchases using EBT Food Stamps cards. Obviously Kettle, who at age 26 probably feels like everyone else should be carded as he is when he goes to purchase a drink, may be a little wet behind the ears and has no grasp of how being poor works. But the reality is that this bill would be quite problematic not for “the illeegullz” he thinks are committing Food Stamp fraud but the thousands of Rhode Island-based homeless and impoverished who cannot afford to get such a picture ID easily. Getting to the DMV by bus is itself an act of gymnastics, thanks in no small part to the measly budget Kettle’s colleagues gave RIPTA this year, and then obtaining the ID can be time consuming and costly. It bears mentioning that the state merely administers the Food Stamps program that is funded by the federal government, which itself is one of the paltry few elements of a social safety net that is demonstrably the most miserly in the northern hemisphere.

It is likely that most of the Democrats on the Hill will find this bill tasteless even with their standards being what they are and our young Republican will find little to no support for this. As a result, he will have created what amounts to a glamour bill that gives him fifteen minutes of fame on talk radio and actually costs the taxpayers more for us to give this bill a hearing than is actually lost in this alleged Food Stamp fraud. It is worth nothing here that we tried to reach out to Kettle for comment several times by telephone and got no reply but that he was able to be heard the morning of February 16 on WPRO. In other words, the Kettle is calling the pot black.

Finally, the February 16 editorial page of the Providence Journal featured a letter from Jeremiah T. O’Grady where he explained the inner mechanics of the RhodeWorks bill. There are already some grumblings to be heard over the tolls bill due to the recent hirings of middle managers who materialized as quickly as the funding did. What struck me as so interesting, however, was how he framed the piece, using the pension heist that we have been covering here over the last few weeks as a frame of reference.

As I walked into the House chamber last Wednesday to vote on the revised RhodeWorks infrastructure funding bill, I was struck by a sense of déjà vu and transported back to November 2011 when I walked into that same chamber to vote on then-General Treasurer Gina Raimondo’s pension reform proposal. The similarities between the two issues, and the solutions proposed to address them, are striking.

This speaks further to my own theory, that there may be a few more politicians than Gina Raimondo who take a fall when the feds come knocking regarding the letter Ted Siedle sent them last month regarding the various criminal elements involved in the scheme. Would this perhaps be the thing an ethics bill would address, thereby terrifying Speaker Mattiello?

Knowing how the fireworks continue to be launched, all we can say is “stay tuned, sports fans!”

August 25, 2015

Speaker Mattiello swings early at Pawsox second pitch

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Perhaps there is something in the water on Smith Hill that infects speakers of the Rhode Island House with hubris. Perhaps it’s a side effect of suddenly being called, “The most powerful politician in Rhode Island.”

Keeping in mind that the speaker is not elected to his office by the citizens, but anointed by his peers, it is disturbing to read the news blips that report “progress” in the negotiations around a new PawSox stadium.

As we all know, the team, which has lost 80 of the 129 games it’s played (as of this writing), made a pitch to take over prime state-owned real estate in downtown Providence.

Claiming that McCoy Stadium, which was also subsidized by the citizens, was beyond repair, the Sox asked for an audacious blend of tax breaks, zoning variances and a huge subsidy—or else they might be forced leave Rhode Island.

This blend of corporate welfare and blackmail was greeted with loud disdain by voters on both sides of the (lopsided) aisle.

In short, the Sox struck out, and most of us went on vacation—although not on a paid junket to Durham —glad to see the end of the deal.

No Nicholas Mattiello — Why is this man speaker?

Now, House Speaker Nicholas Mattiello claims to be “very close” to an agreement—even though terms have not been publicly announced.

Really? Simply by making this announcement, Mattiello has lost an edge as a negotiator. So already, I can predict that no matter how much the terms of this “deal” have changed, it will still be sweet for the Sox.

The land that the speaker and the Sox want to blight is currently designated as open for space stormwater mitigation and parkland for citizens and taxpayers to enjoy.

The politicians are afraid that if they don’t “do something” then they will be excoriated for “losing the Sox” and faulted for not creating jobs.

But if it is bulldozed through the legislature, what will a stadium really offer Rhode Island? A short-term construction boom, a handful of seasonal minimum wage part time jobs, a seasonal sports and entertainment complex on prime real estate in the heart of the city, decreased parkland, increased traffic congestion and parking challenges on game days, and tax dollars funneled to a for-profit organization.

How is it possible that Mattiello and his happy team of yes-men-and-women forgot the last time that Rhode Island subsidized a baseball player’s dream?

It’s time to call game over at 38 Stadium on account of faulty rainmaking.

June 25, 2015

Toll bill unlikely to see House floor despite bridge closure

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The prospect of Governor Gina Raimondo’s Rhode Works legislation hitting the House floor before the end of this legislation is highly unlikely, Speaker Nicholas Mattiello said today.

“Right now, I’m not planning on it coming to the House floor by week’s end,” he said. “I have substantial concerns. I’ve indicated that the House is not going to act upon this bill until the concerns of our local business community are adequately addressed.”

Speaker Mattiello also said that he believes the proposal requires more analysis, so he is not comfortable introducing it in the House quite yet.

“It’s a big proposal, a big project, and I think the calls for it to move forward thoughtfully are probably the right calls and the right way to approach this. There’s no reason to rush this, there are reasons to do it in a timely manner, but there’s absolutely no reason to rush it,” he said.

This announcement comes a day after the Park Avenue bridge in Cranston was closed by RIDOT due to safety concerns. The bridge was suffering from severe deterioration and was “in imminent danger of collapse,” RIDOT Director Peter Alviti said in a letter to the Governor.

Speaker Mattiello finds the closure curious considering the bridge was examined nine months ago, and was deemed structurally deficient, but safe for travel.

“Where I call for an investigation is, you have the DOT making an assessment that it requires a high degree of corrective action in order to stay open, and no action is taken for nine months,” he said. His main concern is that Cranstonians, and especially safety vehicles, are now incredibly inconvenienced, because no steps were taken to prevent the closure.

“If they knew nine months ago that it was going to require a high priority of corrective action, why wasn’t any corrective action taken? That is something an investigation by DOT, I’d like to know what they’re doing.” he said.

Speaker Mattiello added that DOT is at fault for the closure, as they did not do what they are called to do for the community.

“You can’t just let a bridge go to the point of failure and say ‘Sorry, we’re shutting it down because we failed.’ That’s what they’re doing. They didn’t ask for anything, they didn’t tell us they had any concern.”

However, the Speaker did note that he agrees with RIDOT’s decision, but wishes that they take corrective action to have the bridge open back up as soon as possible.

Currently, there are nine bridges throughout the state undergoing investigations, and 17 that have been completed through RIDOT’s accelerated inspection program, which Alviti ordered in early May.

The timing of the closure did not work in Rhode Works’ favor. Minutes after the bridge was closed, Senate Finance unanimously approved the bill, and later that night it was approved on the Senate floor in a 33-4 vote. If the closure was a stunt to get Mattiello’s attention, he was not impressed.

“I can tell you it’s not going to force my hand on Rhode Works,” he said. “That’s not the right way to get my attention.”

June 24, 2015June 24, 2015

Cranston bridge closing colors debate on tolling truckers

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In an ironic twist of fate, the Rhode Island Department of Transportation closed the Park Avenue Bridge in Cranston the same day that the Senate Finance Committee and the Senate itself voted to uphold Governor Gina Raimondo’s ambitious Rhode Works legislation.

The $1.1 billion bill would be used to repair bridges and roads throughout Rhode Island, which have been ranked last in the country. Part of that money would come from a $500 million bond from the state to begin repairs on 17 proposed locations for tolls. RIDOT Director Peter Alviti has said in a House Finance Committee meeting earlier this week that the bond allows the department to use their own finances to begin repairing and reconstructing the rest of the bridges in the state.

The tolls, which would only charge tractor-trailer trucks, would reportedly make $60 million a year in revenue, which would also be used explicitly to repair roads. Opponents from the trucking industry and business community have railed against the tolls, saying that they will drive away business. Supporters have continually cited safety as their number one priority.

Safety was a particular issue today, as RIDOT closed the Park Avenue Bridge, even after being inspected in May, and several months prior to that.

“It is my professional opinion that this bridge is in imminent danger of collapse, and I am ordering its immediate closure,” Alviti wrote to the governor this morning, after it was found that the timber planks helping to hold the bridge up were “severely deteriorated and stressed from the weight of automobile traffic.”

Carlos Machado, the Division administrator for the Federal Highway Administration, concurred with RIDOT’s decision. House Speaker Nicholas Mattiello, however, called for an investigation of RIDOT and their decision to close the bridge, which is near Mattiello’s law office. He brought up questions regarding exactly who has been inspecting the bridges, and whether or not RIDOT has been doing their job effectively.

Speaker Mattiello has also not yet made a firm decision concerning the Rhode Works bill. While he has gone on record saying that he supports the bill as a whole, there are still portions of it that remain objectionable. Now that the Senate has voted to uphold the legislation in a 33-4 vote, the bill will move to the House, bringing Mattiello into center stage on the issue.

Even as the legislation moves forward, there are still those who continue to oppose Rhode Works with the hope that it will not go through this session. The National Federation of Independent Business expressed their opposition in a press release, calling on the General Assembly to “slow down” their toll proposal.

“Certainly Rhode Island’s roads and bridges are in need of repairs, however, thanks to the glaring lack of specifics regarding this toll plan, small businesses are left with concerns over the details,” NFIB Rhode Island State Director Bill Vernon said. “Until some of these questions are answered, it will be difficult for the small business community to have confidence that tolls are the right policy choice for Rhode Island’s economic future.”

The Rhode Island Republican Party has also gone on record saying that the governor’s plan lacks transparency, and is fiscally irresponsible.

“There are still many unanswered questions as to how this toll plan will impact Rhode Islanders, including the simplest of questions such as how much it will be or on what bridges it will be assessed. It is ridiculous to think politicians on Smith Hill would adopt a plan that calls for new tolls statewide and millions in debt with so little information,” state GOP Chairman Brandon Bell said.

These worries did not affect the Senate vote, though. After a unanimous vote in Senate Finance, discussion on did not take very long, as most lawmakers agreed that safety was their number one priority. Rhode Works was upheld in a 33-4 vote.

“I would hate if a member of any of our constituencies was a fatality or a casualty due to the atrocious conditions of our roads,” Senator Christopher Ottiano (R- District 11) said when showing his support for the bill.

After the vote, Senator Louis DiPalma, the first Vice Chairman on the Senate Finance Committee, gave details from his own personal experience about why the Rhode Works bill should pass.

“I’m originally from Connecticut, I’ve been here for about 30 years, and back in the 70’s, I believe it was, there was the Mianus River Bridge Collapse. We’re talking I-95, tractor-trailers, cars, over the edge. Many people died,” he said. DiPalma remembers that event and uses it to promote a preventative, rather than a reactionary, approach to the bill.

“I never do it from the perspective of ‘that could be us,’ I don’t look at it and say that’s going to happen here. I look at it from the perspective of ‘what can we do to act now so that never happens here,” he said. “It’s a safety issue. It’s an issue of money- we’ve gotten to this point because of lack of maintenance over decades. We didn’t get here overnight.”

DiPalma brings a second layer of fresh perspective to the bill’s consideration as an engineer.

“I try to look at things from a facts and data perspective. What’s given, what do I know, what are the facts, what can I infer, and how do I build from there,” he said. “I was confident with the facts and data that I read, with the presentations that were given, and how this proposal came together.”

The only remaining roadblock for the governor’s bill is the House, and Speaker Mattiello. Whether or not it can make it through before summer recess is the question on everyone’s mind, and a special fall session for the proposal becomes more and more likely as each day passes.

June 18, 2015June 18, 2015

Senate Finance approves budget while advocacy groups respond

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Much like its House counterpart, the Senate Finance Committee passed the FY16 budget bill unanimously with almost no discussion other than to speak on its merits.

“I would certainly characterize this budget as one that is not only ambitious, but one that makes a significant investment in areas that should have been invested in in the past,” Chairman Daniel DaPonte (D- District 14) said to begin the meeting. He added in a press release that the budget helps to put Rhode Island back on the right track economically.

“This is a budget that Rhode Island’s economy needs and through its passage will continue the economic stability and reform that delivers the message that Rhode Island’s economy is back and open for business.”

One of the short discussion points brought up during the meeting was whether or not the budget provided opportunities for youth.

“There have been some pockets that have been filled here, but I suggest that next year we consider providing more job opportunities for youth,” Senator Juan Pichardo (D- District 2) said.

DaPonte agreed with Pichardo, but also reminded the committee that there is no one specific way to keep youth working in the state.

“I think initiatives to focus on keeping young people here and getting them up and running are incorporated in the budget in a variety of different places and a variety of different ways,” he said. “I think the sum of all these parts is a statement to us not only wanting to keep these folks here, but increase the number of opportunities available.”

The night before, the House of Representatives was very kind to the bill as well, passing it through to the Senate after a swift three-hour session. Before its passage, many took the time to thank not only House Finance Committee Chairman Raymond Gallison (D- District 69), and Speaker Nicholas Mattiello, but the House Fiscal Advisory staff as well.

Other groups outside of the State House are also pleased with the budget. Planned Parenthood, which fought against the restrictive abortion insurance coverage in Article 18, said in a press release that they are pleased with the outcome of the bill.

“While we were disappointed the governor unnecessarily chose to widely expand the number of plans that do not cover abortion beyond federal minimum standards, the action by the General Assembly today ensures employers cannot unilaterally limit reproductive health care service coverage for their employers. This amendment will require employers and insurance carriers to clearly indicate when an employer is opting out of covering certain reproductive healthcare services, so that no one will be surprised by a lack of coverage for routine procedures.”

But, while many have championed the budget as a success story, there are still those that are dissatisfied. Common Cause Rhode Island, an advocacy and lobbyist group for transparent government, has expressed discontent with the budget’s provision for Governor Raimondo’s pension settlement.

“This extraordinary legislation, that will affect every Rhode Islander – and every Rhode Island state and municipal budget – for decades, should not be rolled into the annual budget as if it were just another article,” said executive director John Marion. “The budget debate that typically occurs in a single evening and includes debates on amendments concerning dozens of issues is not the place for this important legislation. It deserves special consideration so legislators, as much as they did in the special session in 2011, can take this up on the merits alone.”

June 17, 2015June 17, 2015

Budget bill passes House floor with almost no debate

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In what everyone thought would be a firestorm of debate, the RI House of Representatives unanimously passed the $8.7 billion FY 2016 budget with little to no discussion about many of the articles, including the much contested Medicaid cuts and pension settlement, as well as Governor Raimondo’s so called “job tools.” According to a House spokesperson, this is the fastest that the budget has gone through in nearly three decades.

The only budget articles that were seriously debated on the floor were numbers 11, which concerned taxes and revenues; and 18, which provided the funding to HealthSource RI, Rhode Island’s Affordable Care Act state exchange. There were two article introductions during the debate, one concerning the funding for the Rhode Island Public Transit Authority (RIPTA), and one simply to renumber the articles in the bill after its introduction. Representative Patricia Morgan (R-District 26), was going to introduce an article to fund bridge repairs, but recognized that she did not have the support to pass it.

Although discussion was sparse on the floor, Rep. Morgan was one of the few members who continually sparked debate, particularly over article 11, which had the longest discussion out of all of the sections voted upon. Amendments had already been proposed to the article, but had been struck down. Morgan proposed two amendments herself, the first of which would promote lean government standards for the state, and according to her, dramatically decrease costs for running state government.

“Many states at this point, have already started lean government initiatives, and it has given them a lot of fruit,” she said. “There are incredible efficiencies that have resulted from lean government.

Morgan planned to pay for the new service by taking $500,000 from the Newport Grand Casino and putting it towards creating a lean government initiative, which Governor Raimondo has already stated she supports. Her reasoning? That the casino was not in dire need of the funds.

“Last year, the new owner proposed $40 million for remodeling,” Morgan said. “If he has $40 million for that, I guess he can give up $500,000.”

The amendment saw staunch opposition, especially because, according to several representatives, 60 percent of the casino’s money goes directly back into the state.

“Just because Newport Grand may be part of corporate America, we are here to help businesses thrive in our economy,” Representative Dennis Canario (D-District 71) said.

“To take $500,000 out of Newport Grand would jeopardize the integrity of that business,” House Majority Leader John DeSimone (D-District 5), argued.

Although Morgan’s first amendment failed 71-4, she brought up another amendment immediately after that tried to use the same funds from Newport Grand to pay for a 38 Studios investigation.

“The people of this state deserve to know how it happened, why it happened, who did it, and try to keep it from ever happening again,” Morgan said.

Her second amendment did not even get the chance to go up for debate, as it was ruled not germane to the discussion. The ruling was met with cheers from other representatives.

Article 18 funded HealthSource RI, which has been hotly contested over the past few days due to restrictive abortion coverage language. However, Finance Committee Chairman Representative Raymond Gallison (D- District 69) introduced an amendment that would curb such restrictions, and allow access for those who require abortions even if their insurance plan has cited religious exemptions from covering them.

Surprisingly, the amendment passed with no discussion, but the article itself saw debate due to King V. Burwell, the current Supreme Court case determining whether or not states should receive tax subsidies from having their own healthcare exchanges. While some representatives thought that keeping the exchange would make Rhode Island less business friendly, it was upheld in the vote.

What is more striking than what was debated, though, is what was not. Cornerstone legislation in the bill went by without so much as a peep from representatives. Medicaid cuts, the pension settlement, Raimondo’s jobs initiative, professional licensing, all day kindergarten, school construction, and even appropriations of funds from FY 15 are just some of the examples of what saw next to no discussion. Even Gallison’s surprise article that raised RIPTA fares for the elderly and low income to $1, up from no cost at all, saw little debate.

After only three short hours, the budget was unanimously passed, with daylight still shining down on the State House.

“The House of Representatives is very committed to working together on behalf of the citizens of the state of Rhode Island,” Speaker Mattiello said of the speedy voting process. “That the House has worked very collaboratively with the Governor and the Senate President, and that there’s a focus on jobs and the economy. When we put out a pro-jobs budget, pro-economy budget, the members rallied around it and responded appropriately.”

Mattiello also did not rule out the option of a special fall session to handle Governor Raimondo’s proposed toll tax. It is actually very likely, he said.

As for Rep. Morgan, she believes that she was one of the only members of the House who actively stood up for what they believe in on the floor tonight.

“I’ll fight for the people of Rhode Island all day long. I’ll fight for better government in our state,” she said after the meeting. “But, I can’t do it alone. The people need to send me more support.”

“I don’t know why they didn’t speak up,” Morgan added. “There were things that should have been said. There was debate that should have gone on. There are things that are objectionable. I have no idea why people didn’t stand up and fight for the things that they believe in.”

But, even without the support for her amendments, Morgan still voted in favor of the budget because it was, for the most part, in line with her beliefs.

“I voted for the budget because there were a lot of really good Republican proposals in it, that I think will help Rhode Island, and I didn’t want to see them not get support.”

The bill will go to the Senate floor for hearing on Wednesday, where if approved, will become the official FY 16 budget for Rhode Island.

June 12, 2015June 12, 2015

Tanzi stumps for South County as budget cuts its tourism funding

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Just because House Finance passed the FY 2016 budget onto the House floor for next Tuesday, doesn’t mean the entire House of Representatives has to like it. In fact, much of the bill is contested – such as the tourism cuts that Representative Teresa Tanzi, Narragansett/South Kingstown, has voiced her opposition to.

“When I moved here from Utah, everyone said “Oh, Newport, Providence!” People already know about Newport and Providence and I would say “No, Narragansett,” and nobody would know what Narragansett was. I have a really difficult time turning a portion of our money over from South County to help promote more Providence and more Newport.” she said, citing that the South County tourism board works very hard to market their area of the state.”

In response House Speaker Nick Mattiello said, “Despite that wonderful job, everyone still talks about Providence and Newport. It’s the integrity of the entire system that we’re looking at, and you need a Rhode Island brand. It’s not about localities. The current system doesn’t work, and we cannot go back to a system that doesn’t work.”

Their disagreement stems from Governor Gina Raimondo’s idea to centralize state tourism spending. Currently, Rhode Island has no unified state marketing efforts and instead dives proceeds from hotel tax receipts between 8 regional tourism agencies. The money will now go more towards the state Commerce Corporation, rather than the tourism bureaus themselves. In the House version of the budget, $4.7 million goes straight to the Commerce Corporation, while less than a million goes to the actual tourism district. In Gov. Raimondo’s version, $6.4 million would go to the corporation, leaving the districts with $1.7 million.

Rep. Tanzi (D- District 34). Photo courtesy of http://www.rilin.state.ri.us/ — Rep. Tanzi (D- District 34)

After the hearing, Tanzi continued to express her concerns about the funding cuts, and how they will harm her district as a whole.

“I think that the way that the South County tourism board is run is actually very effective. We have been compliant, we turn in our reports when we’re supposed to, our production cost of our marketing materials, everything is done in house. We’re very conscientious about how the money is spent,” she said, especially in comparison to other tourism boards across the state. Tanzi believes that this will only disserve the southern portion of Rhode Island, especially because Newport and Providence, in her opinion, do not need more marketing.

“The beaches are their own unique part of it,” she said. “We need to have our own budget to market that appropriately. We’re competing with the Cape, we’re not competing with Massachusetts.”

As the budget is currently written, Tanzi stated that to “cannibalize” the smaller parts of the state in order to market Rhode Island as a whole is not the best use of money, and it will only show poorly within the coming years.

“My guess is that my businesses in South County, who have five months out of the year at most, to make their living to make it through the entire summer, are going to suffer as a result of this,” she said. Tanzi has spoken to many of the businesses in her district since the budget first came out in March, adding that such funds are always a concern for business owners in the area.

But, the prospect of Tanzi submitting a successful amendment to support her district is slim to none, in her view, calling South County the “small fish,” in comparison to Newport and Providence.

“Just the basic numbers of looking at it, you’re talking about a couple of South County people, versus the city folk and the Newport people, who outnumber us on the floor. So, my chances of an amendment passing are ridiculously infantile. They’re infinitesimal, they’re so small, so, no, I won’t,” she said.

Even without the hope of amending the budget, this year, though, Tanzi still holds out hope for next year, planning to bring forth data showing the exact effects of these cuts on South County tourism, and maybe even get to create a separate brand for her district in the process.

June 10, 2015

House Finance approves budget bill, full chamber to vote Tuesday

The House Finance Committee considers the FY 2016 budget.

After much deliberation, the House Finance Committee gave a unanimous 19-0 vote on the FY 2016 budget late on Tuesday night, which included $37.7 million more than the proposed budget given by Governor Gina Raimondo back in March. The legislative budget proposal is for $8.67 billion dollars, with $3.55 billion from general revenue contributing to that.

“We concur with many of the governor’s initiatives for economic development,” House Finance Chairman Raymond Gallison (D-District 69) said in a press briefing tonight.

According to Gallison, the committee, in large part, accepted Raimondo’s budget, but there were some key provisions that saw change, including Social Security, Medicaid, and sales taxes to businesses.

Those who made between $80,000 and $100,000 will be exempt from paying social security income tax. These tax cuts will give retired Rhode Islanders $9.3 million in tax relief. Businesses are also now exempt from paying the sales tax on corporate utilities. Governor Raimondo had originally proposed phasing it out over five years, but will instead be taken out all at once this year. The earned income tax credit for middle to low income households has also increased from 10 percent to 12.5 percent.

The budget outlines a 2.5 percent Medicaid cut for hospitals, and a 2 percent cut for nursing homes. Gallison said this provides more protection for nursing homes. The House budget cuts Medicaid roughly $67 million, a far cry from the $90 million that the governor had proposed, but the hospital license fee has been increased to 5.862 percent, which would bring in $13 million in additional revenue.

“Funding to maintain HealthSource RI is included in the budget,” Gallison said, outlining the distribution changes to its funding. Now, individuals will pay a surcharge of 2.86 percent on their monthly premiums, and businesses will pay a .59 percent surcharge. The budget allocates $2.6 million for HealthSource RI going into FY 2016. There is also no more additional surcharge for outpatient and imaging services.

Full-day kindergarten is another key provision, with the governor allocating $1.4 million from general revenue to fund programs in the seven communities that don’t offer full-day kindergarten yet. Educational aid was increased by $35.8 million in order to pour money into the educational funding formula. There was also $20 million added for school construction purposes.

Higher education saw an increase of $7 million. The Rhode Island Higher Education Assistance Authority is being downsized, with its responsibilities now being transferred to the Council of Post Secondary Education and the Office of the General Treasurer.

Other major provisions within the bill include cuts to all eight local tourism bureaus, a $2 million increase for RIPTA, and a $0.25 increase in the state sales tax on cigarettes, bringing it up to $3.75 per pack. The tax increase is estimated to bring in $1.7 million in revenue.

What is absent from the budget is just as significant as what is present.

“This budget does not contain anything whatsoever to do with a proposal for a stadium, or any tolls on trucks as proposed by the governor,” Gallison said during the hearing. Also notably absent is the “Taylor Swift tax” on million dollar homes in the state.

Speaker of the House Nicholas Mattiello has gone on the record saying that the proposed budget is business friendly, and will allow for economic development in the state.

“The budget that’s going to be voted on tonight is very pro-business, pro-economy. It’s going to serve as a catalyst for existing businesses as well as working to attract new businesses to the state of Rhode Island,” he told members of the media on Tuesday.

Gallison agreed with that sentiment, giving his own statement at the beginning of the hearing.

“We continue to move Rhode Island onto an economic path to enable businesses to continue to grow,” he said.

The bill is scheduled to go to the House of Representatives floor next Tuesday.

June 9, 2015June 9, 2015

House Finance considers state budget bill today

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Everyone’s eyes are on the State House as the budget for the next fiscal year is slated to be unveiled today. Governor Gina Raimondo released her proposed budget in March, and the legislative version will be introduced by the House Finance Committee today.

Based on what Speaker of the House Nicholas Mattiello (D-District 15), Senate President Teresa Paiva Weed (D-District 13), and Governor Raimondo have told media in recent weeks, a few things can be expected for the bill.

Raimondo’s tractor-trailer toll proposal will not be part of House budget proposal (at least not initially) but her Medicaid cuts will. Both Mattiello and President Paiva Weed have said that they have too many unanswered questions concerning the tolls for it to be implemented now. But, a special fall session to consider them is not out of the question.

Mattiello’s tax breaks on social security income will also be a key point of the budget. As it stands in Raimondo’s proposed budget, those who file as individuals with an income up to $50,000 are exempt from the income tax on their social security, and those who file jointly are exempt on incomes up to $60,000.

HealthSource RI will remain for another two years, with surcharges on individual’s monthly premiums averaging out at 2.86 percent, and .059 on small business’s monthly premiums.

Plans for economic development have also been interspersed throughout the bill, thanks to Raimondo’s proposed “jobs package.” Parts of this package includes tax breaks for businesses within the state, as well as a reallocation of taxes on hotels for tourism purposes. How the taxes are allocated is dependent on which one of Rhode Island’s 8 tourism districts the hotel is located in.

Money is also being allocated to the state’s environment, thanks to the Bays, Rivers, and Watersheds Fund. The language in the bill states that it will be used to “foster effective management, preservation, restoration, and monitoring of the bays, rivers, and watersheds.”

Higher education is seeing some changes as well. The “Best and Brightest” scholarship fund has been completely axed from the budget; the program gave scholarships to high school students going into college with hopes that they will stay in Rhode Island to teach in the public school system. The legislature also changes how students receive financial aid for college, giving more power to the office of the commissioner of postsecondary education, and creating a general allocation fund for higher education grants.