Grow Smart RI Defends RhodeMap RI

Thursday, November 20, 2014

 

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The non-profit, Grow Smart RI has come out with a point-by-point response to the criticism to the RhodeMap RI plan and its policies.

The following is Grow Smarts's response:

Setting the Record Straight 
 
On Thursday, November 20, the Rhode Island State Planning Council is scheduled (editor's note: this has been rescheduled to December) to vote on a draft Economic Development Plan for the State of Rhode Island.  The draft plan, which has been under development for more than two years as part of an initiative known as Rhode Map RI, emphasizes the very unradical notion of building on our strengths.   In recent weeks, critics of the plan have put forward a great deal of misinformation and misinterpretation that has threatened to undermine public confidence in this forward-looking and sorely needed economic development plan.
 
Grow Smart is proud to have been a member of the consortium of state agencies and public and private organizations that guided the development of the Economic Development Plan now under consideration.  We strongly support its adoption by the State Planning Council. We believe that the Council, Rhode Island's elected officials and the people of Rhode Island can have full confidence in the transparent and open public process through which the plan was developed, the extensive research on which the plan is based, and  the recommendations that the plan makes. We are writing to set the record straight on some of the misinformation that has been presented as fact.
 

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False Assertion: The plan would amount to "ceding (Rhode Island's) sovereignty to federal government agencies."
 
Fact:  The plan reflects the thinking of public and private Rhode Island interests. The extent to which it is implemented and what specific strategies will be used will be decided by the Governor, the General Assembly, municipal governments and private businesses and organizations.  Rhode Island did not have the resources to undertake a planning process of this magnitude.  Therefore, the state applied to the US Department of Housing and Urban Development's Sustainable Communities grant program to secure the funding required for the research, writing and coordination of the public outreach effort that went into the preparation of the economic development plan. However, that research, writing and public outreach was managed by the Rhode Island Division of Planning and guided by a Consortium made up of representatives from Rhode Island state agencies and private organizations. 
 
Furthermore, it is critical to remember that this is a plan.  The fact that it was produced with the assistance of Federal funds in no way enables Federal interests to insert themselves in decisions as to how the various strategies contained in the plan will be implemented.  Those decisions rest with the State Executive and Legislative Branches, with municipal governments and with private businesses and organizations.
 
False Assertion:  The plan is not an economic development plan.
 
Fact:  The draft plan was written to comply with a mandate from the General Assembly which directed the economic development corporation and the division of planning to produce a strategic plan that would include:
    1.    A unified economic development strategy for the state that integrates business growth with land use and transportation choices;
    2.    An analysis of how the state's infrastructure can best support this unified economic development strategy;
    3.    A focus and prioritization that the outcomes of the economic development strategy be equitable for all Rhode Islanders;
    4.    Reliance on comprehensive economic data and analysis relating to Rhode Island's economic competitiveness, business climate, national and regional reputation, and present economic development resources;
    5.    Suggestions for improving and expanding the skills, abilities, and resources of state agencies, municipalities, and community partners to speed implementation of the plan's recommendations; and
    6.    The inclusion of detailed implementation plans, including stated goals, specific performance measures and indicators.
The plan, which was written with input from business leaders around the state, outlines six goals for strengthening our economy: provide educational and training opportunities to activate a 21st-century workforce; foster an inclusive economy that targets opportunity to typically underserved populations; support industries and investments that play to Rhode Island's strengths; create great places by coordinating economic, housing and transportation investments; create a stronger and more resilient Rhode Island; and make Rhode Island a state where companies, workers, and the state as a whole can develop a competitive advantage.
 

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It advocates strengthening the state historic tax credit program; supporting industries and investments that play to Rhode Island's strengths including the marine, defense, arts and food sectors; better marketing of our tourism brand and assets; regulatory reform / streamlining; and "...setting fair tax policies consistent with those of other states." The plan also asserts that expanded workforce training and a better education system are important to ensure that Rhode Island's workforce meets the needs of employers and that the growing minority population in RI is as economically productive and self sufficient as possible.  This call for social equity has especially inflamed the most vocal critics of the plan, even though it is in the enlightened economic self interest of all Rhode Islanders.
 
False Assertion: The plan is an "extreme social engineering scheme" that would "block paths to property ownership and infringe on rights of property owners.
 
Fact:  As noted above, the General Assembly directed that the economic development strategy should "integrate business growth with land use and transportation choices," and should include "a focus and prioritization that the outcomes of the economic development strategy be equitable for all Rhode Islanders.  Responding to those directions, the plan recommends  location of housing and businesses that will promote access to work opportunities.  These recommendations do not infringe on the rights of property owners. 
 
False Assertion: The plan's development process did not provide the public and the business community with an opportunity for input. 
 
Fact: From the beginning Rhode Map RI has been characterized by extensive public outreach and many opportunities for public input. Over the last year and a half, public input sessions have been held in every corner of the state.  The public input phase launched with coverage in the Providence Journal, and all sessions were publicized through press releases and social media.  Opportunities for electronic input were also provided. The research and drafting of the economic development plan was guided by a diverse Economic Development Committee with representation from such strongly pro-business and pro growth organizations as the Greater Providence Chamber of Commerce, the Rhode Island Builders Association, the Rhode Island Nursery and Landscape Association, and the business funded Providence Foundation. In addition, the Rhode Island Foundation and Commerce RI co-hosted a series of workshops during which over 300 business leaders discussed their needs and identified ways to work together with the state to build on Rhode Island's strengths.  The State Planning Council held public hearings for the draft Economic Development Plan on October 27 and 28 at which 62 individuals testified. In all, more than 1,000 people have contributed their input.
 
False Assertion: There is no reason not to delay passage of the Plan in order to allow for further discussion.
 
Fact:  The draft Economic Development Plan has been developed to comply with legislation passed by the General Assembly requiring that such a plan be developed and that it be submitted on or before October 31, 2014.   In 2013, the RI General Assembly passed a law directing that, "(a) The economic development corporation and the division of planning shall develop a written long-term economic development vision and policy for the state of Rhode Island and a strategic plan for implementing this policy. . . (b) On or before October 31, 2014, the economic development corporation and the division of planning shall submit the written long-term economic development vision and policy and implementation plan to the governor, the senate and the house of representatives."  The Division of Planning's standard practice is to submit plans to the State Planning Council for approval and to have the Council hold public hearings on proposed plans. In keeping with that practice, public hearings were held and the State Planning Council vote was scheduled so that the Plan would be ready for submission to the governor, the senate and the house or representatives as close to the October 31, 2014 deadline as possible. 
 
The RhodeMap RI Consortium signed off on the plan last week and it now goes to the State Planning Council for final adoption on November 20th. 
 

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Related Slideshow: RI Business Rankings in US

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WalletHub

Rhode Island is 2015's 4th Worst State to be a taxpayer, according to a recent WalletHub report. 

Rhode Island ranks 48th of 51 with an average state and local tax price of $7,159 which is good for a 27% difference from the national average. 

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WalletHub

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WalletHub

WalletHub has ranked Rhode Island as the 7th worst state to be rich in in a recent in depth analysis of 2015's Best States to be Rich or Poor From a Tax Perspective

On a scale with 1 being the best, and 25 being average, Rhode Island ranks 37th in low income earners, 42 in middle income earners and 45th in high income earners. 

To see the full report, click here. 

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Gallup

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Gallup gives the Prov-metro area an index score of 23, the lowest score is the New York- New Jersey area with 20. 

Salt Lake City, Utah and Austin-round Rock, Texas rank the highest with a score of 37. 

See the rest of the rankings here. 

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Forbes

The 2014 state rankings by Forbes has just been released and Rhode Island moved up two spots from #48 in 2013 to #46 in 2014.

What does Forbes say about RI's business environment"

After Michigan and Illinois, Rhode Island has experienced the third worst net migration out of its state in the country over the past five years. With a recent unemployment rate of 7.6%—lower than only Georgia and Mississippi—residents are leaving the state in search of jobs. Rhode Island has been stuck in the bottom five overall for six straight years. One plus: labor costs are 5% below the national average, which stands out in the expensive Northeast.

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Tax Foundation

Findings from The State Business Tax Climate Index were released this morning by Tax Foundation which found Rhode Island to have the 45th best tax climate for businesses for 2015. The state's rank has not changed since last year after The Index analyzed 100 different tax variables in multiple categories. 

Read more about the report here

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WalletHub

After conducting an online suvery consisting of 1,050 individuals from both parties across the nation, WalletHub ranked Rhode Island as having America's 33rd fairest tax system.

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CNBC

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Forbes

Forbes ranks each state in business costs, economic climate, and growth prospects. RI is third worst in 2013.

The most damning in the commentary:

After Michigan, Rhode Island has experienced the second worst net migration in the country over the past five years.

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ChiefExecutive.net

#39 ChiefExecutive.net

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The most damning in the commentary:

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Tax Foundation

#46 Tax Foundation

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Rhode Island and the other states in the bottom ten suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates.

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Wallet Hub

#24 Wallet Hub

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ALEC

#47 ALEC

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Kauffman Foundation

#50 Kauffman Foundation

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Entrepreneurial activity generally is highest in Western and Southern states
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Free Enterprise

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The Pew Charitable Trusts

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Gallup

10th Worst in Gallup's Annual Ranking of State Job Markets 2014

Rhode Island has been ranked 10th worst for job creation in Gallup's annual ranking of state job markets in 2014 with a job creation index number of 21

Rhode Island is one of two (Connecticut) states to rank in the bottom ten each year since 2008.

The 2014 State level findings have were drawn from 201,254 interviews with employed adults across the nation. 

See the full list of rankings here. 

 
 

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