House Leadership Scrambles for Budget Vote on 38 Studios Provision
Monday, June 24, 2013
Members of the House Leadership were scrambling over the weekend, making one-on-one calls to legislators trying to secure support for the budget which is scheduled to come before the full House of Representatives on Tuesday.
The most controversial provision in the budget is the payment for the 38 Studios bonds -- and it appears that many House members are now reluctant to have to vote yet again for Speaker Gordon Fox' 38 Studios. "I think some Reps might be saying, "We don't want to do this, don't ask us to do this," to leadership. There's very much a concern as to how it will look for their next election," Representative Spencer Dickinson told GoLocalProv Sunday night.
According to a number of Representatives, House Majority Whip Stephen Ucci and Deputy Majority Whip Chris Blazejewski were making calls to Representatives who they saw as undecided on the budget. The budget includes a $2.5 million payment for the interest on the 38 Studios bonds.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST38 Studios Bonds
As GoLocalProv reported last week, Rhode Island had previously defaulted on moral obligation loans:
State officials have warned of potentially dire consequences if Rhode Island becomes the first state in modern memory to deliberately default on moral obligation debt—except that Rhode Island has done so before, as recently as 2006, GoLocalProv has learned.
“The issue of the state of Rhode Island having one of its quasi-public agencies issue bonds and [those] bonds running into a problem and not being fully repaid has happened in the past,” former state treasurer Frank Caprio said in an interview yesterday.
"I don't think we'd technically be in default if the budget gets recommitted and a new budget emerges with the money for 38 Studios not in there. There's enough in the reserve fund to cover the first payment due in November, but not next May. However, it does send a signal, and it's one I think we want to send. We need to hear from Assured Guaranty, since they'd come in and start investigating," said Dickinson.
Related Articles
- 38 Studios Insiders Have Been Connected Since May 2009
- Carcieri Accepts Responsibility for Approving Failed 38 Studios Deal
- EDC Buried in Legal Fees over 38 Studios
- GoLocalTV: Medieval Weapons and Software Auctioned off from Curt Schilling’s 38 Studios
- LISTEN: Insurance Covers 38 Studios Bonds + Who’s Hot & Who’s Not
- NEW: Binder Rips Fox on 38 Studios; Taveras Endorses Fox
- NEW: Lawmakers Refute Speaker Fox’s Claims on 38 Studios
- NEW: Schilling’s 38 Studios is Bankrupt
- Russell Moore: Don’t Pay 38 Studios Bonds
- State Report: 38 Studios Debacle, Unemployment Dips & Pot Dispensaries
- Who Created the 38 Studios Deal?
- 38 Studios Bankruptcy Hearing Begins Today: Company Owes $150 Million
- 38 Studios Relocates Ahead of Schedule
- EDC Never Discussed 38 Studios After September 2010
- GoLocalTV: Sen. DaPonte Says Senate Did Not Know About 38 Studios
- LISTEN: O’Neill Says Fox Lied About 38 Studios
- NEW: Block Says Superman Building Has All the Makings of 38 Studios
- NEW: Preview to 38 Studios $50 Million Game Released
- NEW: Schilling’s 38 Studios to Owe $395,000 Tax Bill in Providence
- Schilling Claimed 38 Studios Would Create Over 1,500 Jobs
- State Report: 38 Studios, Legislative Raises & Casino Gaming
- Who Fought Against the 38 Studios Deal?
- 38 Studios Bankruptcy: Executives Say Tax Credits Could have Saved Company
- 38 Studios Scandal Could Spell Trouble for Incumbents
- Dan Lawlor: The Political 1% Need to be Held Accountable for 38 Studios
- EXCLUSIVE: O’Neill Says Fox Lied About 38 Studios
- Guest MINDSETTER™ Dr. Edward Mazze: 10 Questions for 38 Studios
- Lawmakers Feel Duped by Schilling’s 38 Studios Deal
- NEW: Brien Rips Speaker Fox on 38 Studios
- NEW: RIEDC Statement on 38 Studios
- NEW: Speaker Fox Backtracks on 38 Studios Comments
- Schilling has Invested ‘Majority of Money I’ve Earned in My Life’ in 38 Studios
- State Report: Gemma’s Investigation, Governor Carcieri & a 38 Studios Lawsuit
- Who Has Been Effective Responding to 38 Studios Crisis?
- 38 Studios Company-wide Layoff
- 38 Studios Secret Documents - See Copies
- De Ramel Blasts Pacheco on 38 Studios
- EXCLUSIVE: U.S. Attorney Investigating Curt Schilling’s 38 Studios
- INVESTIGATION: Secret Documents Reveal True Risks of 38 Studios
- Momentum Builds For 38 Studios Anti-Bailout Plan
- NEW: Chafee Releases Video on 38 Studios Lawsuit
- NEW: RISC Opposes Any Bailout for 38 Studios
- PolitiFact Fraud - Projo Changes Its Truth-O-Meter Score on 38 Studios
- Schilling’s 38 Studios Deal Hatched Earlier than Disclosed
- State Report: Hurricane Aftermath, the 38 Studios Lawsuit & House Oversight
- 38 Studios Debacle - A Timeline
- 38 Studios Tried to Keep Public in the Dark, E-Mails Say
- Defaulting on 38 Studios Bonds May Not Hurt State Finances
- EXPERTS: State Should Consider Defaulting on 38 Studios Bonds
- Insider Lawyer Paid $232,000 as 38 Studios Went Belly Up
- NEW: 38 Studios Assets to Be Sold at Two Auctions
- NEW: Curt Schilling’s 38 Studios has Insufficient Funds in Bank Account
- NEW: Rhode Island Gets Back $713K from 38 Studios Video Game Sales
- Questions Surround Speaker Fox’s Relationship with 38 Studios Insider
- Schilling’s 38 Studios Lays Off Entire Staff—Taxpayers May Be Stiffed
- State Report: Problem Gambling, 38 Studios & Millions for Medicare
- 38 Studios Debacle: Top Stories in RI in 2012
- 38 Studios: The More We Learn the Worse it Gets
- Don Roach: 38 Studios Was Never a Good Investment
- Few Lawmakers Voted Against Deal that Paved Way for 38 Studios
- Insiders Had Hands All Over Schilling’s 38 Studios Deal
- NEW: 38 Studios Auction Brings in $650k
- NEW: EDC takes No Action on 38 Studios
- NEW: Richard J. Land Named 38 Studios Receiver
- RICO, Fraud & Negligence Claimed in 38 Studios Lawsuit
- Special 920 WHJJ Radio Report: 38 Studios
- State Report: Speaker Fox’s Battle, Tax Amnesty & the 38 Studios Debacle
- 38 Studios Fallout—What Next?
- BREAKING: Governor Chafee to Return Campaign Contributions from Defendants in 38 Studios Suit
- E-Mails Reveal 38 Studios’ Desperate Attempts to Secure Tax Credits
- Future Remains Uncertain for Schilling’s 38 Studios
- Insurance Policy Would Pay Back 38 Studios Bonds
- NEW: 38 Studios Bankruptcy Case Moving to RI
- NEW: Feds No Longer Investigating 38 Studios
- NEW: Sasse Says ‘Zero Evidence’ 38 Studios Default Would Have Long-Term Harm
- Rep O’Neill Criticizes Fox & Superman Plan - Similar to 38 Studios
- Special Report 38 Studios: GoLocal on WHJJ Podcast
- State Sues Key 38 Studios Players—See the Complaint
- 38 Studios Insider Gets $625k in New Film Tax Credits
- Bonds Sold for 38 Studios Deal
- EDC Buried in Legal Fees over 38 Studios
- GoLocal’s Coverage of 38 Studios is Featured on CBS Radio - Listen
- Is Curt Schilling’s 38 Studios Going Broke?
- NEW: 38 Studios Defaulted on $1.125 Million
- NEW: Hinckley Rips 38 Studios Deal
- NEW: Schilling’s 38 Studios Makes $1.125 Million Payment to EDC
- Russell Moore: 38 Studios Taints RI House Budget
- State House Report: Death Penalty, Chafee’s Son & 38 Studios
- Wells Fargo Refuses to Discuss ‘Secret’ Cash from Curt Schilling’s 38 Studios