EDITORIAL

Bad for business?

Posted 7/19/16

Rhode Island has found itself back in the headlines, but not for a reason anyone who cares about the Ocean State would hope.

CNBC last week released its list of 2016’s “Top States for …

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EDITORIAL

Bad for business?

Posted

Rhode Island has found itself back in the headlines, but not for a reason anyone who cares about the Ocean State would hope.

CNBC last week released its list of 2016’s “Top States for Business,” and Little Rhody for the fourth time ranked dead last. The state had move up to 48th place last year – the highest spot it has achieved since CNBC began the rankings in 2007.

The business news network described the state as “overflowing with issues, including poor infrastructure and a weak economy.” Infrastructure is the only one of 10 categories used in the overall ranking in which Rhode Island ranked 50th, although the state is toward the bottom in CNBC’s assessment of the economy, the cost of doing business, cost of living, and access to capital.

The state’s best category was education, where it ranked 20th. Rhode Island also fared better in quality of life, workforce, and technology and innovation.

That the Ocean State continues to grapple with economic woes is certainly not news to the million-plus people who call it home. Like the rest of the country, the Great Recession hit us hard, and we had been struggling to forge a 21st-century economic identity in the decades before that.

Gov. Gina Raimondo, in a rebuttal op-ed published by CNBC, points out that the state was more deeply impacted by, and slower to react to, the decline of manufacturing than other parts of the nation. That led to “an unfortunate reputation as a bad place for business,” she writes.

While acknowledging there is “no silver bullet to solving our challenges,” Raimondo touts a number of initiatives – from the RhodeWorks infrastructure plan and a computer science teaching partnership with Microsoft to Medicaid reform and a set of economic development programs – as “bold recent moves” that are aimed at turning the state’s fortunes around. She also points to General Electric’s recent decision to bring part of its digital operation to the state, and writes, “businesses are taking at fresh look at Rhode Island.”

The gap between CNBC’s dismal outlook and the governor’s optimism is admittedly wide, and our perspective on Rhode Island’s overall climate – including for business – falls somewhere within that range.

For CNBC, we understand the appeal of compiling such a list. It spurs discussion and debate, and generates viewership and online traffic. It also leads to coverage from countless other media outlets across the U.S., this one included.

Without delving too deeply into the methodology used, we do harbor a healthy skepticism of any list that claims to provide such a definitive judgment as CNBC’s. Subjectivity most certainly plays some role in formulating the rankings. Rhode Islanders well know the self-fulfilling power that perception can have.

That, of course, does not mean the perception of the state’s economy and business climate is unfounded. As the governor notes, Rhode Island has been slow to adapt to a fast-changing world. All of its wounds are not self-inflicted, but it is clear that too little was done for too long to address major challenges.

In particular, CNBC’s criticism of Rhode Island’s infrastructure is on point. We wait to see whether Raimondo’s RhodeWorks initiative will prove as fruitful as she claims, and whether a shakeup at the Department of Transportation will lead to better results going forward. In this, too, we remain somewhat skeptical – although we hope to be proven wrong.

Is Rhode Island bad for business? Perhaps. The state is certainly a long way from where we want and need it to be economically.

We are more interested in another question: Can Rhode Island forge a new way forward? That may not be quantifiable, at least in a manner that easily lends itself to a ranking system.

Knowing the Ocean State and its people as we do, we have no doubt the desire and the ability exists. We now hope the hard lessons of the past give us new wisdom moving ahead.

Comments

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  • richardcorrente

    Governor Raimondo hit the nail on the head when she said that Rhode Island had an "unfortunate reputation as a bad place for business". No where is it more obvious than here in Warwick where Mayor Avedisian has caused 5,800 taxpayers and 4,666 businesses leave our city in the last 10 years alone (according to the U.S. census and the R.I. Secretary of State). That's what happens when you raise taxes every year for 16 years in a row! I have an absolute commitment to "cut taxes, cut spending".

    Visit my website at www.correntemayorwarwick.com for the details. I have a plan to reverse Avedisians trend and repopulate Warwick with new home buyers, new businesses, and new construction. If we keep going Avedisians way we will drop to the number 3 city behind Cranston for the first time in history. They are cutting taxes and gaining (our) taxpayers. It's time for a change. It's time to cut taxes. It's time to cut spending. It's time to stop paying more taxes. It's time to attract more taxpayers!

    Please vote for me.

    Thank you.

    Richard Corrente

    Endorsed Democrat for Mayor

    Tuesday, July 19, 2016 Report this

  • JohnStark

    Mr. Corrente, It's time to get down to some brass tacks.

    1. Warwick's current tax rate on residential property is $20.24 per $1000 of assessed value, and $30.36 on commercial property. In terms of "cutting taxes", how much would you reduce these rates.

    2. Warwick currently spends about $18,000 per student in public education. Would you support a plan by which high school-aged students were given a voucher valued at the current tuition of whatever public, private, or parochial school would accept the student? Under the plan, if a student chose to attend, say, LaSalle Academy ($14,500), the city would retain the $3500 difference. Anything more than the $18k would be on the parent. This would force local public schools to compete for top students (enhancing quality), while simultaneously forcing them to keep an eye on spending.

    3. Employees in the private sector are paid commensurate to their value in their organization. Would you endorse merit pay for teachers, whereby evaluations and classroom effectiveness would play a part in compensation?

    4. Which specific regulations in the city would you revise or eliminate to make the city more receptive to business?

    Warwick citizens have a multitude of additional questions, but this is a start.

    Sunday, July 24, 2016 Report this

  • georgecarver

    Hello Mr. Corrente, Any answers or response to the questions previously posed? We need to know (or at least get an idea) as to how things get fixed and what will then be impacted. Clearly we have school committee issues ranging from an extremely costly and over inflated capacity to an inherent "old system" that doesn't really permit our kids to get the most competitive educational opportunities Warwick can provide. While Im not really aligned with any party, perhaps responding to some legitimate questions might be a good start.

    Thanks

    George Carver

    Tuesday, July 26, 2016 Report this

  • richardcorrente

    Dear JohnStark,

    You are clearly trying to "brass tacks" me into an e-mail confrontation.

    As far as the "cut taxes" statement I repeatedly make, it doesn't effect any one area. Politicians, (perhaps like you) for decades have been playing games with "the tax rate" or "the percentage of assessed value" or "the assessed value" itself. Here is my pledge. The amount, however calculated, will be less to the taxpayer, because, let's be honest; you can decrease two out of the three categories and still get a tax increase. That's why I won't let people try to get me to discuss just one. (like you just did).

    Your #2. question is easier. I would not support a plan that credits $18,000 to LaSalle because that would take $18,000 out of the school budget without taking out $18,000 out of the off-setting expenses. As far as merit pay I am a huge fan of rewarding extra effort and penalizing a lack thereof. I think the reward part should be voted on by everyone including the students, the parents and the teachers. Merit pay and maybe even awards presented in a public forum, (like a School Committee meeting) should motivate others to strive for excellence. You and I are on the same page on that one!

    As far as which regulation I would "revise or eliminate", please read my website. (www.correntemayorwarwick.com) One idea is to eliminate building permit fees for two years. This will stimulate construction which increases real estate taxes forever. I have heard the short-sided argument that says "Where will we get the lost revenue?" My answer is "If we lose $1,500 in 2016 and gain an extra $700 every year FOREVER, we can find a way to repay the permit fees." That amount of bookkeeping is simple. (Avedisian has countered my plan with a 1% reduction in building permit fees to "stimulate construction". Not surprisingly, it did nothing!) Whose plan do you favor?

    Thank you for warning me that you will have a "multitude of additional questions" claiming they are coming from "Warwick citizens" when they really are coming solely from you. I look forward to your next e-mail unless you would like to come out from anonymity and call me at 401-338-9900. We could meet for coffee and I will be happy to answer your (and your friends) hard questions. Please bring your "Warwick citizens" with you. I'll buy.

    Monday, August 1, 2016 Report this

  • richardcorrente

    Dear Georgecarver,

    I completely agree with everything you said and I appreciate the respect you showed me in you comments.

    We have a broken school system; no question. We taxpayers have spent OVER A BILLION DOLLARS since 2009 and today we have

    1. teachers with no contracts

    2. students with no Chromebooks (or similar tablets)

    3. buildings that are literally falling down and

    4. a Mayor who refuses to get involved! He has said many times that he has a "hands off policy". I believe that contributed to the David LaPlante and the Mario Atoyan tragedies. I will replace his policy with a "I care policy". I plan on giving my total support to the teachers because they are willing to sit down and negotiate and the School Committee refuses. In the court of public opinion the teachers win hands down! They occupy the moral high ground. I will help as much as the law and the Warwick Teachers Union will allow.

    George, I am having a fundraiser at Lemongrass at 1138 Post Rd. from 5:30 to 8 P.M. on August 8th. Please come as my guest. No check; no wallet, just you. I would like to meet you face to face and later, sit with you and a select group of your friends (a week or so later) for a meet and greet. I'll get into greater depth then and answer any of your hard questions. As for now, let's just have dinner.

    Looking forward to meeting you.

    Richard Corrente

    Endorsed Democrat for Mayor

    Monday, August 1, 2016 Report this