NEW: Fox and Raimondo Team Up on Legislation on “Economic Growth”
Wednesday, March 20, 2013
Speaker of the House Gordon Fox and General Treasurer Gina M. Raimondo are teaming up on a legislative package that they claim will "spur economic growth, while improving Rhode Island’s locally-maintained roads and bridges."
The news conference is scheduled for the House Lounge of the State House at 11:30 a.m.
Beyond Fox and Raimondo, President of the Senate M. Teresa Paiva Weed and Dan Beardsley, executive director of the Rhode Island League of Cities and Towns will also attend.
“This strategic policy proposal links proven, smart financing for infrastructure with an opportunity for steady growth and job creation,” said Speaker Fox. “By establishing a sustainable funding stream, municipalities will be able to make long-term plans separate from the uncertainty of the annual budget appropriations process. It will also help the construction trades plan for steady work, keeping projects more cost-effective.”
“As leaders, our top priority is getting our economy moving again by taking action and creating opportunities for growth and job creation,” said General Treasurer Raimondo. “Establishing a predictable, innovative alternative for cities and towns to finance their road and bridge improvements is an important cornerstone to building a vibrant economy for our state.”
The proposed Municipal Road and Bridge Revolving Fund calls for the program to be administered by the AAA-rated Rhode Island Clean Water Finance Authority. Funding this initiative requires a long-term investment commitment from the state which would enable municipalities to borrow a steady, discounted stream of funds in perpetuity.
The legislation that will be formally submitted in the coming weeks:
· Builds on the success of the Rhode Island Clean Water Finance Authority, an expansion modeled after other states
· Improves municipal access to capital at lower-rates for long-range planning and infrastructure investment
· Provides local budget relief by lowering annual debt service payments
· Creates economic opportunities for the construction trades and their suppliers
