NEW: Block Urges RI House Democrats To Stop 38 Studios Payment
Tuesday, June 25, 2013
Gubernatorial candidate Ken Block issued a statement today urging Democrats in the House to oppose the initial payment on the 38 Studios bonds.
"Democrats in the House should join their Republican colleagues in opposing the initial $2.5 million payment," Block said. "Rhode Island should not pay back these moral obligation bonds until the state's lawsuit has been resolved."
Block also raised doubts about the decision-making process in the General Assembly surrounding the decision to repay.
"Speaker Fox and President Paiva-Weed made representations to the bond ratings agencies that Rhode Island taxpayers would make good on the 38 Studios moral obligations bonds - and they had no legal authority to make those promises," Block said. "The only mechanism that obligates taxpayers to a bond is a general obligation bond that is approved by voters in a referendum."
Certain Democrats in the House have already signaled their intention to oppose the 38 Studios alongside the House Republican caucus.
"Rhode Island needs House Democrats to defy Speaker Fox and President Paiva-Weed and oppose this payment. I applaud Representative MacBeth and other Democrats for their efforts so far."
Block suggested that the decision on the $2.5 million payment was a way for the legislature to finally take responsibility for a situation it created.
"We are witnessing a legislature run amok. This is where the awful consequences of insider deals come home to roost. Hopefully our legislature now agrees to take responsibility and send a strong message of disapproval over backroom deals that burn the taxpayers. The legislature should not pay these bonds at this time."
On June 4, Block issued a statement urging lawmakers to oppose the initial payment until the lawsuit has been resolved.
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