Gov. Lincoln Chafee ’75 P’14 P’17 delivered the annual State of the State and budget address last week, marking the beginning of his fourth and final year as the Ocean State’s governor. Focusing on the fundamental factors that will drive economic growth and prosperity in Rhode Island, Chafee’s address touched on a wide variety of topics, ranging from creative arts to tax breaks.
One of Chafee’s leading points concerned the income and opportunity disparity that exists around the country, including in Rhode Island. Such an imbalance is not conducive to the state’s growth, he said, adding that it is important to “ensure that all Rhode Islanders have access to quality public education.”
Chafee said he plans to continue the investment in workforce training and development he began last year, combining state money with federal funds to support this initiative. With a narrowing skills gap, Rhode Island’s workforce can take full advantage of the positions that employers are seeking to fill, Chafee said.
Drawing on Rhode Island’s history — specifically of maritime commerce and immigrant populations — Chafee emphasized the important role of the state’s natural and human resources. Acknowledging the state’s growing diversity, Chafee recommended the creation of a new executive division of state government dedicated to diversity. “Our government should reflect the diversity ... of the state,” he said.
Creating opportunities in an inclusive manner will help everyone, Chafee said, citing a PolicyLink study that found that regions with greater equality of opportunity across different races and ethnicities experience more economic success.
The protection and responsible use of Rhode Island’s natural resources will remain a priority of the administration, Chafee said. Some funding will be dedicated to improving local “water and water-waste systems.” He also proposed $10 million to support the construction and development of an events center in Fort Adams State Park in Newport to allow Rhode Island to “host large-scale, world-class sailing events.”
To further the development of his environmental initiatives and to combat the rising costs of commercial energy, Chafee said he hopes to embrace clean power sources such as hydropower and wind energy.
“We know (climate change) is happening, and humans are causing it with emissions from burning high-carbon fossil fuels,” Chafee said. But, he said, by investing in clean energy infrastructure, “we do have the potential to make this region the low-cost, green energy capital of North America.”
Stressing the economic importance of Rhode Island’s arts and culture sector, Chafee said he seeks to bolster the industry, which he credited with supporting 5,200 jobs and generating $324 million in economic activity in one year alone. He called on Rhode Islanders to support $35 million in funding through a bond referendum to further the sector’s development. Chafee also proposed incorporating the State Council of the Arts and the State Film Office into the Commerce Corporation to “synergize and enliven the state’s creative operatus.”
“Rhode Island’s infrastructure is more than roads and bridges,” Chafee said, citing his proposal to invest in upgrading state university campuses. Specifically, Chafee is putting “a $125 million bond issue to the voters” to support construction projects for the University of Rhode Island’s College of Engineering.
To address Rhode Island’s worsening congestion and gridlock, Chafee announced a $40 million bond issue to help outline mass transit hub systems at key locations in the state. An additional $250,000 from the Rhode Island Capital Fund Plan would facilitate the early design of this new hub strategy. “Good mass transit will spur economic growth,” Chafee said, adding that runway expansion at T.F. Green Airport remains a priority.
“The thoughtful development of the 195 land in the heart of Providence also continues,” Chafee said, adding that the General Dynamics Electric Boat’s recent signing of a 25-year lease agreement to expand its presence in Quonset Point is an achievement worth celebrating.
Describing last year’s rebirth of Rhode Island’s tax credit program, Chafee proposed an additional $50 million in funding. This would help meet the tax credit demand, which exeeded last year’s $35 million in funding.
Chafee advocated for the passage of the federal Marketplace Fairness Act, which would have several economic implications for the state. Though the proposed legislation focuses on leveling the playing field between online retailers and business owners with physical shops, it would also facilitate Chafee’s proposal to reduce the state’s corporate income tax from 9 to 6 percent, the Providence Journal previously reported.
But, he warned, the passage of the act would likely allow other states, such as Massachussetts and Connecticut, to gain similar revenue streams
to “make their tax structures more competitive.” Chafee urged legislators to resist the temptation to spend any subsequent revenue on short-term fixes if the House of Representatives passes the legislation. Instead, legislators should focus on investing in Rhode Island’s long-term competitiveness, he said.
Citing the 11,100 Rhode Island-based jobs created since Chafee took office in January 2011, Chafee said he is hopeful for the future. “We are moving in the right direction,” he said. “We are poised to emerge from (the recession) more resilient than before.”
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