Carol Anne Costa: The Devil is in the Details
Thursday, June 19, 2014
With a new leadership team in place, the House started the journey to craft a budget for Rhode Island with these marching orders: “Number 1 issue is jobs and the economy.” Pushing back with rhetorically rich words against the dismal rankings in unemployment and job growth, burdensome regulations for small business, those terrible tolls, the general malaise of the state and the widely noted unfriendly business climate a bouncing baby budget was born. It weighed in at a whopping 8.7 million dollars, thus making the labor and delivery process often filled with tension. The crowded waiting room held the anxiously pacing extended family including: 38 Studios bondholders, the Sakonnet Bridge contingent, lobbyists, watchdog groups, the Senate, the Governor, and let’s not forget the reluctant parents, the taxpayers. After all, it is they alone who are responsible for this bundle of “joy” from cradle to grave. Ultimately the budget arrived and they spanked that bad boy on the bottom and shipped it off to the Senate and Governor Chafee for the full family photo. Smiles everyone! But not everyone was sparking up a stogie.
Congrats! It is all ours now!
As a taxpayer, the scene from Rosemary's Baby came to mind as a pale and tired Rosemary Woodhouse exquisitely played by Mia Farrow approached the morbidly adorned bassinet to reveal the horror, as the grinning conspirators looked on in delight. Fear not, it’s not that bad. But it’s not rainbows and butterflies either. Our bouncing baby budget takes only teeny tiny steps in shifting the tide toward real reform. In my view it does little for the middle class, little to stimulate jobs, little to grow the economy, little to lower taxes in a bold way, nothing to streamline regulatory processes, saddles us with a hefty and premature appropriation for the 38 Studios debacle and yes, a parking garage. Basically, it lowers some taxes and raises some fees. Did you light your cigar yet?
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTWhile it helps certain constituencies by lowering certain corporate and estate taxes, this budget disregards the principle that a strong middle class helps raise the tide that will lift all boats. Reducing the corporate tax rate from 9% to 7% and switching to combined reporting and retooling the estate tax with a bigger exemption of 1.5 million are all good things, but they do little or nothing for the middle class and actually seem to grow the ranks of the working poor. It also increases out year structural deficits even more than the Chafee budget, just like the college bill every new parent dreads. It turns its back on the entrepreneurs and startups by not eliminating or reducing the $500.00 corporation fee that dissuades many from incorporating in RI. 92% of current RI businesses pay that fee. On this maternity ward the incubator is on the fritz.
The middle class was left out of the delivery room on these initiatives. As usual, they were left to peer through the window as everyone else got to hold, shape and mold the little rascal. But they will get to grab hold of it soon enough, caring for the future of RI with their hard earned money. Oh by the way dear Mr. and Mrs. Middle class don’t get any ideas about liquidating your biggest asset, the sale of your home, they got you there too! Seems increases in the conveyance tax are all swaddled in snugly as well, as sellers of homes or other real estate must pay at the transfer. Turns out this is a colicky baby.
The reflux is an adverse reaction to the holding the status quo on gas taxes, reduction of various fees, and honest and practical interpretation of the use tax, not to mention an overall reduction in sales taxes which would help everyone on every rung. Instead, we will ignore those while at the same time upping fees for auto inspections and hiking good driving court costs to battle traffic violations - you know when you are late for work. These fees and taxes will be visited primarily upon the middle class working men, women and families. And, this creates jobs...how? This uplifts all Rhode Islanders how? This gives a ray of hope to hang on to ….how? Vacant of a jobs plan or a forward thinking strategy this budget merely checks the box: X Budget Done.
I admit the path to reform begins with a step, but this was a stumble. A stumble we will live with, care for, nurture, and like any child embrace and often admonish. I am reminded of Governor Chafees’s melodious lullaby “lower and broaden”. Perhaps he was more honest in his approach to tackling the issues at hand. As I see it, we must raise the minimum wage just so the middle class and working poor can maybe break even.
The new leadership signaled loudly from the rostrum of the people’s house, “Business as usual is unacceptable.” Agreed, but the baby we just delivered looks a lot like the spawn of the usual suspects. Approach the bassinet with caution because the devil really is in the details.
Carol Costa is a public relations and community outreach specialist; she has experience in both the public and private sectors. She is the Chairwoman of the Scituate Democratic Town Committee and has extensive community affairs and public relations experience. She previously served in the Rhode Island Judiciary for nearly 17 years. Carol also enjoyed a successful development stint at the Diocese of Providence as Associate Director for Catholic Education and is currently the Executive Director of the Warren Housing Authority. Her work has been published in several local outlets including GoLocal, Valley Breeze, The Rhode Island Catholic, and Currents Magazine.
Related Slideshow: FY15 House Budget: Ten Important Issues to be Resolved
On June 5, the House Finance Committee approved an $8.7 billion Fiscal Year 2015 budget that "closes an unexpected $67 million gap, fully funds education aid while averting bridge tolls and tax increases, establishing a steady source for transportation funding, promoting economic development and reducing the corporate and death taxes".
As the full House and Senate prepare to take up the budget, below are ten provisions of importance to keep an eye on at the General Assembly.
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