Where are the Big Ideas to Fix Rhode Island’s Economy?
Monday, March 30, 2015
Where are the big ideas to fix RI's economy? From the Governor, to business and political experts, perspectives vary.
"Where are the big ideas to fix the economy, you ask? Back there during the campaign," said Roger Williams University Professor of Political Science June Speakman. "Political scientists and other observers of politics have long noticed that campaigning and governing are not the same, despite the efforts of the most well-intentioned candidates. On the stump, candidates can promise anything. They articulate their vision, free of the multiple and cross-cutting demands placed on those in government. Once elected, of course, candidates come face-to-face with the harsh realities of other people's plans and ambitions, of the tight calendars of the budget cycle, and of the persistent lack of resources."
Governor Gina Raimondo introduced her budget proposal to mixed reaction on March 12.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"Rhode Island’s economic engine is stalled, and we need bold action to spark an economic recovery and put people back to work. That's why Governor Raimondo introduced a forward-looking, balanced budget proposal rooted in the belief that every hardworking person deserves the chance to make it in Rhode Island," said Raimondo press secretary Marie Aberger. "The Governor's JOBS Budget proposes significant investments to build the skills our students and workers need to succeed in the 21st century, attract new businesses and help our existing business grow, and foster innovation in government to deliver better value to taxpayers. The Governor's budget makes these investments while setting our state on a fiscally responsible path - closing an inherited $190 million shortfall without cuts in education spending that would threaten our future or any broad-based tax increases that would threaten our competitiveness."
URI Distinguished Professor of Business Edward Mazze, however, saw a lack of "big ideas" in the state.
"No big ideas have been presented to fix Rhode Island's economy and create jobs. To date, the only new jobs created in Rhode Island have been in the executive branch of government," said Mazze. "Three big ideas that could move the state forward immediately are (1) more support for existing businesses, specifically small businesses and downtown business centers, (2) less regulation for existing businesses and (3) a focused economic development program that attracts businesses that can take advantage of Rhode Island's current strategic assets."
Business, Innovation Leaders Offer Thoughts
"There probably isn't one big idea that will turn things around fast. The Governor and General Assembly must continue to solve all the niggling issues that frustrate existing small business including regulatory blockages, the skills mismatch and the general lack of demand due to weak employment," said Greater Providence Chamber of Commerce President Chamber of Commerce. "Having said that, my hypothetical big idea would be for the state's leaders to aggressively recruit two mega employers: a 500+ tech employer and 500+ advanced manufacturing employer. An influx of 1000 new high wage high skilled jobs would solve a multitude of problems for talented young people and established workers with a manufacturing background. It would also set off supply chain reverberations for existing local businesses."
While the development of the 195 land has been in the works for years, the current discussions regarding the Pawtucket Red Sox possibly moving to Providence have been the focal point until now.
"The best evidence that Rhode Island is willing and able to transform its economy would be a game changing development deal for the 195 relocation parcels to catalyze a higher wage economy based on innovation and entrepreneurship," said Saul Kaplan with the Business Innovation Factory. "We need to punch above our fight weight. It will require Rhode Island's leading private sector institutions to collaborate in an unprecedented way to aggregate existing demand combined with smart public incentives (also unprecedented) to convince a major national developer to bring their know-how and significant capital to the Ocean State to help us do something transformational."
Would the PawSox moving to Providence be a game changer?
"It would be good to keep the Paw Sox in Rhode Island if the cost to taxpayers is zero and the property that the stadium is located is the best use for the land. This is an example of where a cost-benefit analysis would make sense. It is time for the state to adopt 'modern management' ideas - a robust ethics policy for public officials and a scorecard to measure and report on the progress of any economic incentives so that we can measure if new jobs are being created rather than shuffled around," said Mazze. "These are things that would turn around Rhode Island's reputation as the 'Let's make a Deal State.' Where are the big ideas to fix Rhode Island's economy? They should be coming from the private sector."
Real-World Perspective?
"The Governor knows we need a comprehensive approach - in the short, medium, and long term - to tackle the challenges we face," said Aberger. "Her proposals will boost the economy in the near term by raising the minimum wage, expanding the Earned Income Tax Credit, and putting construction crews back to work modernizing our schools. Her policies will strengthen the economy in the medium-term by making the state a better place to do business, removing regulatory burdens and creating a robust and aggressive set of economic development tools. And her proposals invest in our state's long-term economic development, funding full-day kindergarten across the state, making record investments in K-12 education, and laying the foundation to reinvent Medicaid. At the root of each of these proposals is the Governor's unwavering focus on creating jobs and expanding opportunity. "
Rhode Island College Profressor of Communications Valere Endress noted that the "honeymoon" phase would have to pass to have a clearer view of the Governor's agenda - and the public might be wary of any "big idea" type of fix.
"Conventional wisdom would tell you that Governor Raimondo's honeymoon with the public has a limited shelf life, and would normally be defined as that period prior to which the first budget is submitted If he or she hasn't make the big moves by then, much of the attention then focuses upon the General Assembly's reaction and response to the Governor's proposals and, in that context, we're reminded of the limits of gubernatorial powers," said Endress. "But, the problems Rhode Island faces are deeply embedded and long lasting. The Governor wisely stated that the state's climb toward recovery would take time and patience. I would guess that most in the electorate understand that there is no magic bullet in the offing, and would be suspicious of such claims--especially considering the history of the 38 Studios fiasco. Given the public's understanding of some of the seemingly intractable problems with Rhode Island's economy, I would guess that her constituents will wait well beyond the normal "honeymoon" before passing judgment upon the Governor's ability to turn the corner on Rhode Island's economic recovery.
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