RI State Report: Minimum Wage, Woonsocket + Cutting School Days
Saturday, May 25, 2013
This week’s State Report centers on the House’s passage of a $2.5 million supplemental tax bill that aims to help the cash-strapped city of Woonsocket. Also on the docket are a pair of newly passed bills designed to aid the state’s workforce: one that raises the state’s minimum wage and another that intends to get Rhode Islanders back to work. We’ll also examine a government transparency bill, and a piece of legislation that lets school districts decrease the number of required school days per year.
House passes Woonsocket tax bills
The House of Representatives passed a $2.5 million supplemental tax package on Wednesday designed to help the city of Woonsocket balance its 2012-2013 budget.
“We understand that the residents of the city are struggling. That’s why we are also sponsoring the legislation to move larger rental properties to the commercial tax, because it would mean lightening the load on a great many homeowners and small businesses,” said Rep. Lisa Baldelli Hunt, the lead sponsor of both bills.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTUnder the legislation, the state-appointed Budget Commission—which is running the city—would raise $1 million via a residential real estate tax bill and another $1.5 million with a special motor vehicle tax. Owner-occupied houses and condominiums would be exempted from the supplemental tax.
According to Hunt, increasing the number of properties paying a higher commercial rate would reduce both commercial and residential rates, while raising the same amount of revenue.
Similar legislation has already passed the Senate. Unlike the House bill, the Senate version would raise $1.5 million via residential property taxes and $1 million through car taxes.
Senate passes ‘Back to Work RI’ bill
The Senate approved legislation on Wednesday that would allow job seekers to collect unemployment if they are participating in job training at companies looking to hire.
“This legislation provides valuable on-the-job training for unemployed workers who need new skills and a chance to prove themselves,” said Sen. Erin P. Lynch, the bill’s sponsor. “Job-seekers get a chance to assess the company, gain valuable skills, fill in gaps of inactivity in their work history, and demonstrate what they can do for prospective employers. Ideally, they are a good match and they find long-term employment. In any event, they gain valuable skills training which will help them in their job search.”
Under the bill—which is entitled the Back to Work Rhode Island Program—businesses agree to provide up to six weeks of training through “trial” employment at no cost to the employer. During this time, workers continue to receive their unemployment benefits. After six weeks, the employer decides whether to hire the employee.
The program is a win-win for employers and job seekers because it encourages employers to offer training and helps prospective employees obtain the skills they need to succeed, said Lynch.
A similar bill is currently before the House Committee on Finance.
Senate approves minimum wage increase
The Senate passed legislation on Thursday that will raise the state’s minimum wage from $7.75 per hour to $8 per hour, starting January 1.
“Individuals working minimum wage jobs in the state, jobs that are absolutely vital to keep our economy running and many businesses functioning, need to earn a fair, living wage,” said Sen. Erin P. Lynch , the bill’s sponsor. “Despite the increase proposed in this bill, it will still be difficult for someone working full-time to support a family on $8 an hour. What this increase is intended to do is make it just a little easier for these folks to make ends meet in a state and a region of the country that we all know has a high cost of living.”
The state’s current minimum wage of $7.75 went into effect this January, as a result of legislation enacted by the General Assembly last session, which was also sponsored by Lynch.
The $8 minimum wage will make Rhode Island’s wage the third-highest in New England, tied with Massachusetts at $8, but less than Vermont at $8.60 and Connecticut at $8.25. The minimum wage is $7.50 in Maine and $7.25 in New Hampshire. The federal minimum wage is $7.25.
The bill now goes to the House for consideration. Rep. David A. Bennett has introduced a similar bill in the House.
House passes accountability and transparency bill
The House approved legislation on Thursday that looks to increase accountability and transparency in tax credit programs and state agency reports. The bill—which was sponsored by Rep. Teresa Tanzi—is one of 18 House-backed bills aiming to address economic development efforts in Rhode Island.
“Increasing transparency and oversight of government programs, especially programs that give some preferential tax treatment, is always an improvement,” said Tanzi. “It’s not only about keeping people honest; it’s also about providing regular opportunities for lawmakers to evaluate whether these credits are accomplishing the goals we set for them, and whether they could be improved to work better for the state. We pass these credit programs with the intention that they’ll reap economic development for our state. We should be able to check in regularly to see how they’re doing.”
The bill would require that the Office of Revenue Analysis’ Unified Economic Development Report include a costs/benefit analysis of each of the state’s tax credit programs. Additionally, Tanzi’s bill requires the state Office of Management and Budget to inventory all reports required across state agencies and provide information on their status in the governor’s annual budget bill.
The bill will now make its way to the Senate for consideration.
Senate passes bill giving school district flexibility in scheduling school days
On Tuesday, the Senate approved a bill that lets school districts schedule less than 180 school days per year as long as they still provide students with 1,080 annual hours of instruction. The bill, sponsored by Sen. Roger Picard, would give school districts the opportunity to save money by staying open fewer days a year, while still educating students the required number of hours.
“We all know the budget difficulties that school districts face today,” said Picard. “My bill gives schools more flexibility, as long as they maintain students’ total learning time. If they find a creative way to save money while providing excellent education, such as longer but fewer school days, or scheduling breaks at times that let them save on heat, under this bill, they would be able to pursue that idea.”
Current law states that Rhode Island public school must be open for a minimum of 180 days in a school year. Based on an average six-hour school day, this equals 1,080 hours per year.
Under Picard’s bill, any school district can propose a decrease in the number of school days per year, as long as the required 1,080 hours are met. The commissioner of elementary and secondary education would then review the plan to ensure that it’s financially and academically feasible, and then approve or deny the proposal.Montana passed a similar law in 2005 with bipartisan approval. The Iowa House of Representatives also recently passed legislation that would allow their public schools to schedule 1,080 hours in less than 180 days.
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