Gary Sasse: As Goes Providence, So Does the State

Thursday, September 11, 2014

 

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After the Governor, Speaker and Senate President, the next most influential Rhode Island elected official may be the Mayor of Providence.

One hundred years ago, Rhode Island’s capital city had a dynamic and prosperous economy. Providence was the home to state-of-the-art textile, machine tool, rubber production and jewelry industries. In many respects it may have been the Silicon Valley of the early Twentieth Century.

Today, Providence can be described as an economically challenged city. The number of persons living below the poverty level is over two times greater than the statewide percentage.  Both per capita income and median household income are approximately 30% below the state’s income levels. Rhode Island’s unemployment rate is one of the highest in the nation, but the percentage of unemployed Providence residents is even higher. If the city’s unemployment, income and poverty rates paralleled the state's, our economic outlook would be considerably brighter.

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While the Taveras Administration has made great strides in putting the city’s fiscal house in order, Providence is not yet out of the financial woods. The city’s Internal Auditor is projecting a $17.5 million budget deficit for the fiscal year beginning in July 2015. Given unaffordable property taxes and the city’s uncompetitive business tax climate, this budget shortfall should not be solved simply by increasing property taxes paid by hard- working families and local businesses.

A chain is no stronger than its weakest link, and state and local governments in Rhode Island are a chain.  As a result, the Ocean State’s economic future is linked to the health of its capital city. The unavoidable fact is that Providence’s next Mayor will have a huge impact on Rhode Island’s economic revival.

Addressing Providence’s economic, social and fiscal challenges is critically important to all citizens for the following reasons. First, urban decay threatens existing economic and physical assets and discourages needed private investments and job creation. Second, there is a well-established connection between Rhode Island’s future economic competitiveness and the skill levels of city residents. Finally, the cost of Providence’s problems falls on taxpayers throughout the entire state.

To be a partner in implementing a competitiveness strategy Providence’s next chief executive must have the confidence of other public officials as well as private interests. This growth strategy should be aimed at achieving the following: creating an environment to attract private investment; enhancing job skills to better utilize the human potential within Providence’s immigrant neighborhoods; using tax dollars to leverage private investments; and providing essential municipal services in the most performance based, economical and user friendly manner.

These lofty goals will only be realized if extraordinary leadership emanates from the Mayor’s Office. Providence’s next Mayor must recognize that Erskine Bowls was on target when he said “Leadership is the key to 99% of all successful efforts.”

Effective and successful mayors are dependent on the goodwill of others. These mayors show respect for all and establish positive working relationships with stakeholders. Conflicting ideas and viewpoints are inevitable and healthy in forging sound public policies. How a mayor manages these conflicts determines if he is an effective chief executive and leader. History is replete with examples of mayors who fought the good fight and skillfully created win-win situations for their residents and businesses as well as the entire state. One example close to home was the administration of former Boston Mayor Thomas Menino.

Presidents, governors and mayors have long recognized that “personnel is policy”. Peter Drucker observed that “no executive has ever suffered because his subordinates were strong and effective.” Successful leaders implement a transparent process to select staff that meets the highest standards of integrity, ethics and professional competence. Each candidate should tell voters the process that they will employ in selecting agency heads and staff.

Effective leaders are effective communicators. Influential chief executives guide public opinion; they do not react to it. When a mayor ineffectively uses the bully pulpit it is a serious detriment to promoting the city’s interests and building strong and viable coalitions. During the campaign voters should pay particular attention to how clearly each candidate articulates a vision and specific initiatives to improve Providence. Think about which candidate does the best job in telling you what the City needs, how his administration will respond and how success will be measured.

Rhode Island will not realize its economic potential if Providence flounders. The person who is elected to succeed Mayor Taveras will have a lot to say about the future of the Ocean State.

Gary Sasse is Founding Director of the Hassenfeld Institute for Public Leadership at Bryant University. He is the former Executive Director Rhode Island Public Expenditure and Director of the Departments of Administration and Revenue.

 
 

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