Raimondo’s Beach Fee Increase Is a “Regressive Tax on the Poor” Say Politicians and Economists
Thursday, February 21, 2019
Governor Gina Raimondo’s push to increase fees at Rhode Island’s beaches and campgrounds is being widely criticized. Some beach fees will increase by as much as 33 percent.
“Make no mistake -- beach fees are nothing less than the institution of a regressive tax on the poor, for whom public parks and beaches have represented an affordable, family-friendly escape from the inner city,” said Pat Ford, of the Libertarian Party of Rhode Island.
The University of Rhode Island’s top economist Len Lardaro that the fee increase could be scooped and used for other budget needs. “But the Rhode Island economy is slowing down. If the tax revenue disappoints and they need more money, I doubt they'll keep this just for beaches and campgrounds. This will be another money grab by the general fund,” said Lardaro.
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“If you raise [the fees] by a flat amount, that's a regressive tax. It's the lower income [residents] who are hardest hit. And as the economy slows -- raising the fees for these kinds of things, they might not get the revenues they're assuming they'll get. There could be some blowback,” said Lardaro.
Raimondo and Legislature Cut Beach Fees in 2016
In 2016, Raimondo and the legislature slashed beach and park fees back to 2011 and called it a win for the average Rhode Islander.
Now, Raimondo is pushing increases in beach fees through an administrative process at the Rhode Island Department of Environmental Management — the fee increase is not a budget item and legislators won’t be asked to vote on the issue.
Legislative leaders said in 2016 about the cuts in a joint press release, "Just in time for beach season, the House slashed parking fees at state beaches — mostly in half — to better enable Rhode Islanders and visitors to enjoy one of the state’s greatest treasures. The cuts, effective July 1, eliminate hikes made in 2011, and apply to all types of passes: single-day weekend and weekday, as well as season, passes for residents, nonresidents and senior citizens. (Admission to state beaches themselves is free.) Those who have already purchased season passes will be eligible for a credit for the difference."
Ruggerio and Mattiello, Wait and See, Filippi Criticizes Raimondo’s Proposal
Legislative leaders who took great pride in cutting beach fees in 2016 are not making any commitments this year.
Speaker Nick Mattiello tells GoLocal, “DEM’s regulatory process will allow the public to weigh in and let their feelings be known. I expect the outcome will be responsive to that input.”
And Senate President Dominick Ruggerio’s office says, “The Senate President will await the committee review and public hearing process before making a determination about this proposal.”
But, House Minority Leader Blake Filippi ridiculed the proposed beach fee increase.
“Sound economic policy would be a balanced budget in the middle of an economic boom, without having to further nickel and dime Rhode Island families. Government’s failure to address its spending sets our state up for immense pain when another recession hits,” said Filippi.
“No, it is not [fair]. We are the Ocean State and should be able to access our state beaches for free,” he added.
Sasse Supports, But Worries About Impact on the Poor
The one voice of support for Raimondo's plan is Gary Sasse, GoLocal LIVE regular and head of the Hassenfeld Institute at Bryant University. "Increasing the beach parking fees should have zero impact on economic development. As for the impact on out state tourists, Rhode Island beaches are a bargain. I would have considered even a greater increase," said Sasse.
"The fairness of increasing beach fee for Rhode Island working families is of concern when coupled with the myriad of other revenue increases recommended in the Governor’s FY 20 budget. The question is why so many revenue enhancers in the budget. The number of tax and fee increase in good economic times suggests that the fiscal plan is a throwback to the tax and spend paradigm that did not serve the State’s economic interests in the past," Sasse added.
Fiscal Conservative Issue Warnings
Pro-business advocate and Raimondo critic Mike Stenhouse said, "This is] yet another blatant money grab by an out of control state government, seeking to fund an out of control state budget. This new government scam of raising money under some false pretense and then scooping it into the general budget must come to an end."
And Republican Ed Tarnowski warned that this is just the latest state fiscal grab. "Tourism is also such an important part of our economy, and an increase in fees like this one sends the wrong message to tourists considering Rhode Island as their next travel destination," said Taranowski.
"Rhode Islanders should be skeptical of how (or if) such a hike in fees would be used for 'improvements' to our beaches as Governor Raimondo has claimed. The question we should all be asking is whether or not the new revenue would be specifically allocated for such a project or if the revenue would go straight into the general fund. As we learned with the 911 fees, the state government does not have the best track record on issues similar to this one," added Tarnowski who is Chair of the College Republican Federation of Rhode Island and attends the University of Rhode Island.
