Winners and Losers -- The 2023 General Assembly Session

Winner

Shekarchi’s Housing Package

Speaker Joe Shekarchi pitched his package of housing legislation as having a major impact on Rhode Island’s housing crisis. He made similar claims about legislation he sponsored last year.

While a "win" for the Speaker, the package does not do two things.

One, it does not create a substantial reoccurring funding source. Two years ago a small funding source was generated -- that has generated less than $5 million a year.

Secondly, it does not address the challenges of local zoning and obstructionism. There were minor procedural changes, but if Barrington, Exeter or Richmond don't want a project there is little the state can do about it.

Winner

iGaming is Law, Bally's Big Expansion

There is a new way to bet in Rhode Island.  iGaming allows Rhode Islanders over the age of 21 to access existing table games remotely, via a computer or a mobile app. Players would have to be located within the state of Rhode Island.

According to the legislature, "Addressing concerns raised during the committee hearing process regarding Bally’s initial proposal, the amended legislation requires a live dealer be in place. A similar approach has been taken in many places around the country, including in New Jersey, where their law requires bets to be wagered in Atlantic City. A miniature casino is constructed, much like a television studio, and the games are simulcast to people playing through their mobile devices."

Senate President Dominick Ruggerio was the big pusher of the bill.

Some argue that expanding gaming will expand the problem of problem gambling.

Winner

House Republicans

Under House Minority Leader Michael Chippendale, the GOP played ball with Speaker Shekarchi and got a slew of bills passed, and they played ball on the budget. 

In contrast, the Senate GOP blasted the budget's growth and size.

Senate Minority Leader Jessica de la Cruz rose in opposition, stating, “Rhode Island has the highest per capita spending in New England.  New Hampshire has a larger population and more land mass yet their state budget is just over $15 billion for two years, and no one complains about their roads.”

“The record spending in this budget sets a dangerous precedent, particularly with little relief in sight for high inflation and the potential of a looming recession,” added de la Cruz.  “We had a rare opportunity to use surpluses and federal funds to supplement our budget, decrease spending, and send money back to taxpayers – like other states have done.  Instead, the budget increased to a new historic high.”

Winner

Improved Coastal Access

The General Assembly on Thursday approved legislation sponsored by Rep. Terri Cortvriend and Sen. Mark P. McKenney to establish that the public area of the shoreline is 10 feet landward of the recognizable high tide line.

The bill is intended to finally provide a clear delineation of where the public area of the shoreline ends and private property begins.

The right of Rhode Islanders to access the shoreline was written into the state constitution when it was adopted in 1843, and further delineated after the 1986 constitutional convention. Yet exactly where public area ends remained a debated issue that has intensified with development of the shoreline over the last century.

A 1982 state Supreme Court case, State vs. Ibbison, established the boundary of the public’s shore access at the mean high tide line, defined as the average of high tides over an 18.6-year cycle, which continually changes with the shifting sands of the coast. The Supreme Court’s decision has led to much conflict because it is impossible for anyone walking along the shore to know where that shifting line is. 

In recent years, coastal access advocates have pushed for a better solution, including by getting arrested in a contested waterfront area.

PHOTO: CRMC

Winner

Small Boost for Small Business

The General Assembly approved Rep. Brandon T. Voas’ legislation which would provide significant relief for Rhode Island’s small businesses from the municipal tangible tax. The legislation was also included in the recently approved FY 2024 state budget.

Sen. Melissa A. Murray also has a similar bill.

The legislation creates a $50,000 exemption for all businesses subject to the tangible tax. The exemption completely wipes out the tangible tax — viewed as an administrative burden for small businesses and for the municipalities that collect it— for 75 percent of Rhode Island businesses.

The tangible personal property tax is paid by businesses on property other than real estate that has value by itself, such as computer equipment, furnishings and fixtures.

Since the tangible tax is a municipal-level tax rather than a state one, the state would reimburse each city, town and fire district annually for their lost revenue, just as it does for revenue they lost from the phased-out vehicle excise tax.

LOSER

Gun Control Advocates

Despite the legislature being dominated by Democrats, 2023 being on a record pace for mass shootings and strong advocacy from President Joe Biden, the General Assembly rejected two major bills to tighten gun controls.

One bill banned assault rifles and the other required strict gun storage. Both bills died.

Speaker Joe Shekarchi and Senate President Dominick Ruggerio had little interest. They were all about housing and gaming bills.

LOSER

Governor McKee's Cut to the Sales Tax

Governor Dan McKee included a major proposal to cut the sales tax to bring Rhode Island to be more competitive with Massachusetts. 

Speaker Joe Shekarchi and House Finance Chair Marvin Abney killed the proposal.

LOSER

Environmental Justice Act

Senator Dawn Euer's bill went down quietly.

The Senate in early May passed a bill sponsored by to create environmental justice zones throughout the state. Such zones would have an additional layer of protection from new, polluting developments.

“Far too often, polluting industries choose to set up shop in neighborhoods that are already home to other sources of air, water and ground contamination,” said Senator Euer (D-Dist. 13, Newport, Jamestown), who chairs the Senate Committee on Judiciary. “The concentration of health and environmental risks in these communities is an environmental injustice, sacrificing their well-being in service to wealthier and more powerful interests. These communities need more tools to be able to assert their right to clean air and water and self-determine their future.”

A growing body of evidence has found low-income neighborhoods and neighborhoods with more people of color have borne greater environmental and health risks than the society at large in their homes, workplace, and playgrounds. Often, that is because polluting industries are concentrated in these neighborhoods and residents are less empowered to push back against new development.

LOSER

Budget

Serious questions arose about the growth rate in the General Assembly's spending. Rhode Island spends 50% more per capita than across the border in MA.

The spending bill is now at record levels -- nearly a 50% increase in spending in five years.

While the House leadership celebrated the spending package, the Rhode Island Public Expenditure Council (RIPEC) has raised concerns about the growth of the size of the state budget.

“[The] FY 2024 budget appears to be the last of a series of flush state budgets fueled by enormous allocations of federal pandemic funding and very large general revenue surpluses,” said RIPEC President and CEO Michael DiBiase two weeks ago.

What will happen to the safety nets as the federal dollars evaporate?

LOSER

Big Projects

No additional money for Superman Building rehab. In federal, state and local subsidies and tax breaks, the project already receives nearly $100 million.

No additional money for Brett Johnson's minor league soccer stadium. The west coast investor has missed nearly every deadline and made a number of misleading statements.  He is yet to raise the private capital he previously claimed.

PHOTO: David Sweetser, developer of the Superman Building at a press conference in April of 2022 - GoLocal