Guest MINDSETTER™ Speaker Mattiello: Sustained Effort Will Make us Stronger

Tuesday, June 14, 2016

 

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Speaker Mattiello

Rhode Island has struggled to emerge from the Great Recession. Yet, through sustained efforts to improve our business climate, invest in education and raise the quality of life for our residents, we are putting Rhode Island on a path to recovery.

The House Finance Committee recently approved a spending plan that includes no broad-based tax increases, provides tax relief to retirees, enhances our state’s economic development toolkit, fully funds our education formula and cuts state beach fees in half.

The House proposal, a product of collaboration with the Senate and Governor Raimondo, also assists working families and small businesses. 

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Rhode Islanders endured tough economic times in recent years. With summer right around the corner, working families deserve to enjoy our beautiful coastline. I encourage residents to take advantage of the reduced fees and relax at our wonderful beaches.

We also cut the fees in half for out-of-state residents whom we hope will take day trips and visit many of our great restaurants after enjoying the beach. This is a sensible way to reinvigorate regional tourism. Our budget also provides necessary funding at the state level, and restores previous cuts to regional tourism boards, to market our state in a professional and appealing manner.

Rhode Island must be more than attractive place to visit. Our state must be an attractive place to raise children, earn a good living, grow a business and retire comfortably.

Our budget fully funds the state’s education funding formula for the sixth straight year. Cities and towns will see an additional $49 million due to this increase. We also fund a one-year pilot program to provide additional resources to schools with high numbers of English language learners.

The House budget also freezes tuition at our public colleges and the University of Rhode Island to provide residents with the educational support necessary to achieve success in the 21st century economy. We are also asking voters to approve borrowing $20 million for the creation of an innovation center at URI to create competitive jobs for this new economy by supporting joint ventures between academia, hospitals and businesses.

Our budget also recognizes that improving our business climate is about more than investing in new companies. We realize that we must also provide assistance to the businesses and job creators already here. We have not only held the line on taxes – we have reduced them. For the second year in a row, we have decreased the minimum corporate tax to help small businesses, going from $500 in 2015 to $400 in 2017. Business of all sizes will also see a total savings of about $30 million from a restructuring of unemployment insurance taxes.

Our budget proposal continues a commitment to economic development initiatives that have already enticed such as companies as General Electric to invest in Rhode Island. We are confident that our tax credit and job incentive programs will attract many more businesses to Rhode Island in the near future.

To put more money back into the pockets of 80,000 working families, we have raised the earned income tax credit for a second consecutive year.

Some of the most dedicated workers on the front lines in the health care industry will also be helped. Money has been set aside to raise the wages of nursing facility workers and those caring for the developmentally disabled.

We have also continued our efforts to keep retirees in our state. We have included a $15,000 state income tax exemption for all retirees who have reached full Social Security retirement age and earn less than $80,000 as single tax filers and $100,000 as joint filers. This builds on last year’s state income tax exemption of Social Security benefits, and now applies to other types of retirement income, including public and private pensions.

Undoubtedly, more work remains to alleviate the impact of the recession. But through sustained effort, we are moving Rhode Island forward with improved tax policies and appropriate investments in economic development, education and quality of life that all Rhode Islanders deserve.

 

Nicholas A. Mattiello, a Democrat, represents District 15 in Cranston and serves as the Speaker of the House.

 

Related Slideshow: FY17 House Budget—Winners and Losers

The House Budget is passed and there were some last minute and controversial surprises.

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Winner

National Grid

When controversial Article 18 got pulled from the budget on Tuesday, critics had lauded the removal of the provision, which appeared to benefit a single wind farm - and the substantial political donor who owned it. But the real winner here is National Grid, the company owned by the British Energy Conglomerate, who would have had to force electric rate payers to pay millions more to connect renewable energy projects to the power grid and pay a greater share.

The battle is not over, however; Speaker Mattiello said that after having received feedback on Article18 and that he "reached the conclusion there are pieces of the article that do not need to be in the budget."  Given the level of scrutiny is it highly unlikely the measure will see light of day as a stand-alone measure before the session adjourns, but it can't be ruled out. 
 

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Loser

Statewide Tourism Campaign

There was no last minute relief for the Commerce Corp. The often controversial agency is taking a cut.

Following the ill-fated rollout of the statewide tourism campaign this year, House Finance opted to give money back to the regional tourism bureaus that had been slated to go to the centralized effort.

Mattiello said that the House finance budget is taking $1 to $2 million from the $5 million for next year from the statewide tourism office and giving it back to the regional tourism bureaus. “We had a snafu in the effort. We’ll rely on the locals for the year, and then it will transfer back to state initiative,” said Mattiello. 

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Winner

Medical Marijuana Growers, Patients

One of the biggest battles of the 2016 General Assembly session started when Governor Raimondo proposed a tagging fee on medical marijuana plants -- to major pushback. 

The tax as proposed in the Governor's 2017 budget would have imposed a $150 per plant charge on patients lawfully growing marijuana for medical purposes, and a $350 per plant charge for caregivers, for a projected total of $8.5 million in new revenue. 

House finance scaled back the fee-per-plant to $25, to cover the costs of regulating the marketplace. 

“Advocacy works. We listened to folks, no one really liked the proposal we received,” said Mattiello. “[As far as] the need of regulations, we’re probably on the low end of that. But we didn’t want to enhance revenues on prescription medications.”

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Winner

ProvPort

A surprise amendment that resussciated a dead proposal.

A late session effort by the City of Providence to get a $20 million bond question on the ballot for ProvPort in November initiatially hadfallen flat as a line item in the budget. 

Legislation introduced by Senate Majority Leader Dominick Ruggerio in late May and now a budget article add-on for a bond referendum of $20,000,000 to fund the acquisition, expansion and infrastructure improvement of up to approximately 25 acres of land and facilities located between Allens Avenue in Providence and the Providence River by ProvPort, Inc. 

While it appears to be a House Finance budget “loser” the battle is not over yet for the year, as Mattiello said there is still ongoing discussions. 

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Winner

Business Owners

Mattiello touted in his “pro-business, pro-economy” budget lowering the minimum corporate tax from $450 to $400. This comes a year after the General Assembly lowered it from $500 to $450 last year, taking away at that time the dubious distinction for Rhode Island being the state with the highest corporate minimum tax.  

“There are no new taxes or fees,” said Mattiello of the House Finance FY17 budget (apart from the $25 medical marijuana tax).

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Loser

School Infrastructure

Raimondo had called for a $40 million school construction and renovation bond to be put on the November ballot, but Mattiello said during a media briefing that the state should wait for the completion of a study expected to show what exactly the construction needs are for the state’s schools.

Mattiello said that there is still funding in the budget for school construction needs, as Raimondo had also proposed an $80 million appropriation for construction and renovation, including of $9.1 million for the school building authority -- but the dedicated bond question that would have increased resources by 50% -- was off the table in the House Finance budget. 

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Winner

Smokers and Mini-Marts

After years of steady increases in the state’s cigarette tax, smokers got a reprieve in House Budget when the committee rejected Raimondo’s proposal to raise the cigarette tax twenty-five cents from $3.75 to $4 a pack.

Make no mistake about it, this is just as much about the convenience stores not wanting the additional tax on their golden goose -  and New England Convenience Store Association lobbyist Brian Goldman just got vetted by Senate Judiciary for his nomination from Raimondo to replace Associate Judge Frank Cenerini, who retired in October 2014.

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Loser

Raimondo’s Minimum Wage Hike

Governor Raimondo once again pushed for an increase in the state’s minimum wage, and it appears she will be once again denied by the legislature.

Speaker Mattiello said that Raimondo’s effort to boost the minimum wage from $9.60 to $10.10 an hour would be a no-go. So while it falls in the loss category for those who were pushing for it, it could have been labeled as a win for business owners who have said they couldn’t incur such a mandatory increase. 

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Winner

Retirees (Pensioners)

“We are giving pension relief to everyone who receives some type of pension income, whether it’s public employees, private, or veterans,” said Mattiello.

Mattiello noted that the tax deduction “will be income tested, [and] you have to be Social Security age to qualify.” The tax exemption is slated to apply to the first $15,000 in retirement income, for those qualifying individuals with incomes of $80,000 or less, and couples up to $100,000.

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Loser

Solar and Wind

While the removal of Article 18 was championed as a win against crony capitalism, there was more at stake than just one developer with strong political ties.  While the article appeared as of Tuesday looked to be gone from the budget, that did not mean the legislative proposal could not stand alone. EcoRI was quick to point out however all that the article did for provide for a number alternative energy incentives including: 
Article 18...would allow loans for projects using net metering and virtual net metering, as well as those priced through the Renewable Energy Growth Program.

Article 18 also includes a five-year extension of the state Renewable Energy Fund, which provides grants for small- and medium-sized solar projects. The funds are collected through a monthly surcharge on electric bills and the pool of funds, currently about $6 million, is distributed to solar developers and installers through the Rhode Island Commerce Corporation.


Article 18 also exempts residential and commercial manufacturers from paying local property taxes. It also establishes a statewide property tax rate for commercial renewable-energy systems. The new tax rate will be determined by the Office of Energy Resources.
 

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Winner

Beach Visitors

Beachgoers get a win.

Everyone who loves the beach gets a win with the the House budget. Speaker Mattiello touting that “beach fees are reduced to the 2011 level” for the coming year.

A season pass for residents would be slashed from $60 to $30, non-residents from $120 to $60, and Rhode Island senior citizens from $30 to $15. Plus,  one-time entrance fees would be lowered for residents from $10 to $6 (and senior citizens, down to $3).

 
 

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