Sustained effort will make us stronger

By Speaker Nicholas A. Mattiello
Posted 6/29/16

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

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Sustained effort will make us stronger

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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.

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.

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