Category Archives for Rhode Island General Assembly

Olon Reeder’s Fix for an Ailing State Economy

Published on RIfutures.org, July 11, 2014

Olon Reeder, a slight-figured, unassuming, behind-the-scenes kinda guy, has been quietly improving the quality of life in northern Rhode Island for decades as a public affair adviser for the Blackstone Valley Tourism Council.  With his years of working in the public sector, as legislative assistant with the Rhode Island General Assembly in the mid-to-late 1970s, with the Garrahy administration, state agencies and with small businesses, he’s authored a nontraditional economic development policy paper he hopes will be considered in next year’s Rhode Island General Assembly debate as to how to create a more vibrant business environment in the Ocean State.

Over the years, Reeder, President of Reeder Associates, a Southern New England-based public relations and multi-media communications company, has seen state lawmakers and its economic development agency attempt to compete with surrounding states, just going after “larger, trendy, projects to turn the economy around. “Smaller companies would always get the short end of the stick, because they were not seen as a viable economic generator,” he says, stressing that this perception is inaccurate.

In recent years economic development solutions to fix the state’s ailing economy have been floated for public debate by lawmakers, economic development professionals or by large corporations. Today, Reeder, with almost 40 years of in the public and private sectors, calls on state lawmakers to consider his proposal when they focus on economic reform in next year’s session. More needs to be done, says the small businessperson who is a Native Rhode islander.

It’s almost like Mr. Reeder goes to Smith Hill, to take on the establishment to be heard.

“We are at a critical crossroads where we must overcome our negatives attitudes and start taking actions ourselves if we all want our state and our lives to become successful,” Reeder wrote in a recently released policy statement detailing his suggested economic development action agenda, as how to improve the state’s long term quality of life, through investing in people, communities and small businesses.

He calls for tying lifelong education to grow the economy. “Brain power is a key element driving worldwide demands and economic activity today, through the convergence of non stop knowledge, creative economy, enterprise and innovation, art-design connections, which all start with lifelong learning,” he says.

He says personal empowerment creates the environment for change “Empowerment encourages, and develops the skills for, self-sufficiency, giving people the abilities and knowledge that will allow them to overcome obstacles in life or work environment and ultimately, help them develop within themselves or in the society,” he says.

Companies are constantly replacing full-time employees, he said, and now relying upon independent contractors, where people who once counted on a steady pay check are now being left to fend for themselves in a hyper-competitive self-employed market. These individuals are oftentimes forgotten by policy makers.

Based on 2011 figures from the US Bureau of Labor Statistics, in Rhode Island, there re over 73 thousand self-employed contributing over $3 billion annually to the state’s economy. Most self-employed are hired out of necessity, are done so locally and through word of mouth. Because freelancers depend so much on self promotion to get their jobs, they must focus on the local markets, along with showcasing their diverse personal talents, marketing their skills to business owners in their community, along trying to compete with others for opportunities.

Reeder recognizes the importance of valuing our places, spaces and communities, to grow business. “More than ever, people must be connected to where we live, work, play, stay and travel. People expect places and spaces they interact with daily to be vibrant, active, socially appealing, culturally stimulating and help them in improving their quality of life, especially with their physical and mental health,” he says.

Reeder notes active living communities provide opportunities for people of all ages and abilities to engage in routine daily physical activity, he says, like pedestrian and bicycle friendly design, access to intermodal transportation, mixed use development, ample recreation, walkable neighborhoods, access to fresh and healthy foods and commerce centers. This philosophy must be included in any state economic development plan.

“Our economic revitalization is relevant to healthy and sustainable communities because active living communities encourage individuals to be more physically active, improving health by lowering citizens’ risk for health conditions, adds Reeder. “Active living communities create enhance quality of life, attract business and knowledge workers, and contribute to ongoing economic development,” he says.

Reeder stresses that technology is a must, as people are now “required” to have 24/7 365 access to the Internet and must now communicate through social media to live, work, and transact personal activity, he calls for providing everyone with free online access “as a necessity of our 21st century lifestyles.”  Finally, Reeder thinks “Demand Driven Experiences” are necessary for not only reinventing our state’s manufacturing, but in changing our self attitudes about how Rhode Islanders see themselves, ultimately affecting expectations others may have about the perception of Rhode Island as the worst place for business.

“Because people no longer buy things for their personal benefit, they want enhancements to fulfill missing elements of their lives,” adds Reeder, noting that experiences are crucial for businesses and locations as a branding and marketing tool, especially with efforts in Rhode Island attracting people to live and travel here for our entertainment, food and lifestyles.”  “Using our experiences to effectively promote market and give an iconic brand, we must also stay true to the “real Rhode Island,” to our proud independent and working class heritage, the ethnic and cultural diversity in our state, and preserving our unique natural resources,” he says.
State lawmakers are moving in the right direction to make Rhode Island a more business-friendly place to operate. Reeder continues his efforts to get his voice heard by General Assembly leadership, state policy makers, business groups, even gubernatorial candidates. Hopefully, they will choose to closely listen to Reeder’s nontraditional approach to economic development and to small business owners who know their specific needs to operate successfully.

– See more at: http://www.rifuture.org/olon-reeders-fix-for-the-states-ailing-economy.html#sthash.86LrWZAH.dpuf

Herb Weiss, “LRI ’12, is a Pawtucket-writer covering aging, health care, medical, and business issues.  He can be reached at hweissri@aol.com.

Fund the Historic Tax Credit Program

Published in Pawtucket Times, June 13, 2014

With November’s election cycle looming, state lawmakers are moving quickly to finish the people’s business. Once the session ends they will begin their political campaigns to garner votes to retain their seats. .Yesterday evening the House began its floor debate on the House Finance Committee’s $8.7 billion 2015 budget proposal. At press time, this columnist has no knowledge of the outcome. But, when the dust settles late Thursday evening, if a budget amendment to fund the HTC program is defeated or even if supporters are successful in getting one passed, the Senate chamber becomes the next battle ground to fund the tax credit program.

Last week, the House Finance Committee declined to recommend funding for this program, despite Governor Chafee’s inclusion of $52 million for the Historic Tax Credit (HTC) program in his FY 2015 Budget proposal. As a result, Grow Smart Executive Director Scott Wolf and his fellow Historic Tax Credit advocates are running a full court press to push House and Senate leadership to include funding for the popular economic-development and neighborhood-revitalization program in the 2015 Budget.

In the lobbying blitz, Wolf is telling lawmakers and everyone who will listen that the HTC program has successfully transform older cities and towns in the Ocean State, by spurring reinvestment, revitalization, and job generation. These programs provide an incentive in the form of a tax credit, to property owners to renovate old historic buildings. These state credits can be and often are paired with the federal historic preservation tax credit to renovate commercial properties.

Historic Tax Credit – Great Economic Development Tool

It’s a success in the Ocean State, too, notes Wolfe. Rhode Island’s HTC program has stimulated more than $1.6 billion of investment in more than 250 projects within less than 7 years. For every dollar the state invests, there is a more than five dollar return in economic activity based on a study Wolf’s organization, Grow Smart Rhode Island, commissioned several years ago.

Wolf adds, “The evidence that the historic tax credit makes a real positive difference can be seen on the ground in communities throughout the state – in bustling commercial properties like Hope Artiste Village in Pawtucket and along Westminster Street in Providence, in new apartments for urban workers and new affordable housing units. It can be seen in increased property tax revenues from rehabbed buildings. It can be seen in neighborhoods that have been rescued from the blight of vacant, derelict buildings.”

According to a media release issued jointly by Grow Smart Rhode Island and Preserve Rhode Island, $52 million in bond authorization remains in reserve from the total bond authorization approved in 2008 by the General Assembly for the original HTC program, which was discontinued in 2008 for any new projects but maintained for many other projects already under way at that time.

The General Assembly in 2013 reinstated the program, using $34.5 million in unclaimed tax credits from the prior program and, Wolf says, “The new program has ignited 26 new projects that will pump nearly $180 million into the Rhode Island economy, but 27 additional projects are waitlisted and in jeopardy if additional funding is not provided to sustain the program. By not including an extension of historic tax credit funding in the upcoming budget, the state risks forgoing up to $160 million in construction activity alone. Significant sales and employment taxes also will be lost.”

Preserve Rhode Island Executive Director Valerie Talmage says, “Our Historic Tax Credit program has an outstanding track record. From 2002 to 2008, it generated $1.3 billion in new private investment in Rhode Island’s real-estate economy, which resulted in 22,000 construction jobs, 6,000 permanent jobs, and total wages of more than $800 million. Our state cannot afford to shut this program down.”

Wolf added that suspending the HTC program again would be harmful because “We’d be ceding the competitive advantage provided by our world-renowned collection of distinctive historic buildings and neighborhoods to nearby states such as Connecticut, Massachusetts, Maine, and New York, each of which has ongoing and robust state historic tax credit programs.”

Finally, Wolf emphasized that another HTC program suspension would “Send a bad signal to investors and entrepreneurs about Rhode Island’s business climate and economic development credibility.”

Wolf and Talmage, together with their organization members, partners, and fellow advocates are calling on the General Assembly to “Continue the Historic Tax Credit program because it is a sound and critical investment in Rhode Island’s cities and towns and a proven job-generator and revenue producer, which our state sorely needs.”

In their lobbying Wolf, Talmage and their network of approximately 90 organizations who support the HTC program are quick to identify its positive impact. State officials will see higher state revenues through construction and other jobs generated by the HTC projects. In addition, job creation and increased employment taxes are derived years in advance of any outlay of state funding because Historic Tax Credits are not released for any enrolled project until the project is completed. Sales-tax revenues result from construction materials and other goods purchased for HTC projects also benefit the state in advance of any outlay.

Wolf and others also note that The Budget Office forecasts no fiscal impact to the state budget from the proposed $52 Million in debt service until FY ’19 because bonds won’t need to be issued until the projects have been completed and the tax credits have been claimed.

In an Op Ed in the Providence Journal, Pawtucket’s Mayor Donald R. Grebien and Central Fall’s Mayor James Diossa, support Wolf’s assessment of its impact in the state’s cities and towns. The Mayors say that their fiscally stressed communities benefit from Historic Tax Credits through increased property assessments.

Developing an Old Mill in Pawtucket

Antique Dealer and entrepreneur Scott Davis knows a good program when he sees one. The Eastside resident is planning to develop his old Fuller manufacturing mill on Exchange Street into a combination of commercial and residential space, but any state backpedaling of funding the HTC program will make it difficult to get his project off the ground.

An inquiry by Davis to Chairman Raymond Gallison of the House Committee on Finance, about the suspending of funding for HTC program resulted in an email explaining the decision. The chairman noted that a primary reason for rejecting Governor Chafee’s proposed additional $52 million HTC funding was based on the assertion that there were already sufficient funds in place in the existing program to meet current demand.

Davis disagrees. “My project, which is a rare and historically significant wooden mill built in a prominent Pawtucket city location alongside the Blackstone River is Number 65 in the queue,” he says, noting that he believes that none of the current funds in place will ever be allocated to his project.

“Financial assistance is essentially the only way that my mill project will ever be able to developed, says Davis, who notes that the cost to restore the historic structure versus the prevailing rental rate for space in Pawtucket simply doesn’t work out.

Chairman Gallison also noted that issues with tax credit brokers are a stumbling block for the program,” says Davis. “It is unimaginable that the resulting (legislative) decision] would be akin to ‘throwing out the baby with the bathwater”. If there is a problem with the brokers, Davis calls on lawmakers to fix it, but threatening so many important buildings, jobs, and resulting tax revenues in the process just doesn’t make sense to him.

Davis says that previous HTC funds have made 8 major Pawtucket projects possible. According to the Pawtucket Foundation, the tax incentives were the catalyst for $150 million in local investments that increased property values by 728 % and increased Pawtucket tax revenues by over $1 million annually.

“Keeping these historic buildings intact while awaiting funding assistance is extremely expensive and no doubt we will lose many of them if we can’t save them promptly,” predicts Davis. “ I can tell you from personal experience that just keeping my small 26,000 sq. ft. mill ‘on hold’ costs me several thousand dollars per month just for taxes, insurance, utilities, fire safety, security and basic upkeep,” he says.

HTC is No 38 Studios

Some speculate that recent headlines about 38 Studios and tax credits in general may have spooked House and Senate Leadership to back away from funding the HTC program. Ultimately, the ball is in the court of Senate leadership who must respond to the budget proposal submitted by the House. How can lawmakers fear another 38 Studio debacle when the Historic Tax Credits are only issued upon completion of the project? In other words, after construction workers have laid the last brick – only after new residential and office space is actually available.

But, Gregg Paré, the Rhode Island’s Director of Communication, says don’t expect any action in the Senate to fund the state’s HTC program this year if the House fails to act. “The Senate is in agreement on the budget with the House,” he says, noting that Senate leadership usually iron out any differences before the budget reaches the House floor.

Paré says that the Senate has only once modified the House budget proposal in decades. But, now it’s time for this legislative action to happen again this year especially if the House budget does not include funding for the HTC program.

To Wolf, Talmage, and Davis, and to municipal leaders in a number of Rhode Island’s cities and towns, it is obvious that the program works and serves as an important tool for community revitalization and economic development.

For this columnist, funding the HTC program is just the right thing to do, for the economy and most importantly, for the tax payer.
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Herb Weiss is a writer covering health care, aging, medical issues and the economy. He can be reached at hweissri@aol.com.

Rhode Island General Assembly Tackles Senior Issues

Published in Pawtucket Times, July 19, 2013

At the end of June, Rhode Island lawmakers passed the state’s $8.2-billion FY 2014 state budget bill, sending it to Governor Lincoln D. Chafee’s desk for his signature. Even with $ 30 million ultimately slashed from the state’s fiscal blueprint because of lower-than-anticipated revenues, cash strapped taxpayers were happy to learn that they will not see any state tax or fee increases.

            Political correspondents in print, electronic media and in web site blogs zeroed in on specific items in the state’s enacted budget plan, those that they judged as weighty and newsworthy to be detailed to their audience.  Like the phoenix rising from the ashes, the FY 2014 state budget brought back to life the state’s historic tax credit (through the efforts of Executive Director Scott Wolf, of Grow Smart and a broad based coalition of over 100 groups), also putting dollars into workforce development, even helping the Ocean State’s burgeoning artist community by enacting a state-wide sales tax exemption on specific types of art purchased.  With the budget now signed into law, Rhode Island liquor retailers are able to compete against competitors in nearby Massachusetts because of a new 16-month trial period for tax-free wine and liquor sales.  

            One of the more controversial items in the FY 2014 state budget that fueled heated discussions on WPRO and WHJJ radio talk shows was putting funds in the state budget to pay the first installment payment of $2.5 million on the bonds issued to the now bankrupt 38 Studios. 

 

Funding Programs and Services for Seniors

            Although not widely reported in many media outlets, Rhode Island lawmakers did not turn their back on aging baby boomers or seniors.   

            The FY 2014 budget provides $1.0 million in Community Service Grants to organizations serving the elderly, including $200,000 for meals on wheels, $25,000 for Home and Hospice Care and level funding for Senior Centers across the state.

            It also consolidates funding for care for the elderly, consistent with the Integrated Care Initiative.  This initiative will coordinate care of the elderly, many of whom are eligible for both Medicare and Medicaid and who navigate disjointed payment and delivery systems.  With the state’s enacted budget, there will be a single funding and delivery system that integrates long term, acute and primary care to dually-eligible individuals.

            Also, the state’s budget plan maintains the Rhode Island Pharmaceutical Assistance to the Elderly program (RIPAE), coordinating with benefits provided through the Affordable Care Act and ensuring no gaps in coverage for low income seniors.

            It also directs funding for programs and personnel within the state’s Office of Health and Human Services to combat waste, fraud and abuse, including the new Medicaid Fraud Control Unit, to ensure Medicaid dollars return as much value for participants as possible.

            The enacted budget also establishes $80,000 for the Emergency and Public Communications Access Fund to improve emergency communication and to support emergency responder training for the deaf and hard of hearing population in the State.

TDI Expansion Becomes Law

            Meanwhile, on July 3rd, Rhode Island lawmakers approved legislation (S 231 B, 5889A), sponsored by Sen. Gayle Goldin (D-District 3, Providence) and Rep. Elaine Coderre, (D-District 60, Pawtucket) to expand temporary disability insurance to employees who must take time out of work to care for a family member or bond with a new child in their home (see my May 17 issue of the Pawtucket Times, May 19 issue of Woonsocket Call).

            Women’s Fund of Rhode Island CEO Marcia Conė and the WE Care for RI coalition, consisting of over 40 groups, brought in national politico operative, Steve Gerencser, who consulted and developed the game plan and messaging needed to get the TDI legislation passed and onto the Governor’s desk for signature.  Rhode Island becomes the third state in the nation to pass a paid family leave law.

            Signed by Democratic Governor Chafee, the new law will increase the state’s TDI program to cover up to four weeks of wage replacement for workers who take time off to care for a seriously ill child, spouse, domestic partner, parent, parent-in-law or grandparent or to bond with a new child, whether through birth, adoption or foster care. Temporary caregiver benefits would be limited to those who are the caregiver of their sick or injured family member, and the program would require documentation from a licensed health care provider.

            “The most important reason for this legislation is to provide support to help families in times of need, but it has many good ripple effects for Rhode Islanders,” noted Coderre. This includes saving on avoidable medical costs for people who will be able to stay home with a family member instead of needing to admit their family member to an expensive medical facility. It can mean that someone keeps their job.

            Adds Senator Goldin, unpaid leave isn’t always an option, and it’s a very difficult option for most families. “Paid caregiver leave is a cost-effective way to keep people from losing their jobs, jeopardizing their financial security or risking their family’s well-being when a family member needs care,” she said.

            The expansion would be funded through employee contributions, just as the rest of the TDI program is currently funded. In order to support the expanded benefits, employees would contribute another 0.075 percent of their income to TDI. For a worker earning about $40,000 a year, this would mean he or she would pay an additional 64 cents a week for the expanded benefit.

Also Becoming Law…

            Governor Chafee has also signed the Family Caregivers Support Act of 2013 passed by the Rhode Island General Assembly.    

            Aiming to improve the quality of life for the elderly and the disabled in the comfort of their own homes, an approved  legislative proposal requires the Executive Office of Health and Human Services to develop evidence-based caregiver assessments and referral tools for family caregivers providing long-term care services.

            Sponsored by Rep. Eileen S. Naughton (D-Dist. 21, Warwick) and Senate Majority Whip Maryellen Goodwin (D-Dist.1, Providence), the legislation calls for an assessment that would identify specific problems caregivers or recipients might have, carefully evaluate how those situations should be handled and come up with effective solutions.

            The legislation defines “family caregiver” as “any relative, partner, friend or neighbor who has a significant relationship with, and who provides a broad range of assistance for, an older adult” or an adult or child “with chronic or disabling conditions.” Rep. Naughton said people should be aware that there are support systems and an abundance of resources available for home care before deciding to put an elderly person in a nursing home or an expensive facility.

            Senator Goodwin added that without the proper support, the current system can place an unnecessary burden on both facilities and caregivers.

            “We want fewer individuals going into nursing homes and similar facilities if we can help it,” says Rep. Naughton. “It’s upsetting for an elderly or disabled individual to have to trade the comfort of his or her home for an unfamiliar place. Family caregivers not only know the medical needs of these individuals, but are often aware of their emotional needs, too,” she said.

            The comprehensive assessment required as part of Medicaid long-term service reform is meant to provide assistance with activities of daily living needs and would serve as a basis for development and provision of an appropriate plan for caregiver information, referral and support services. Information about available respite programs, caregiver training, education programs, support groups and community support services is required to be included as part of the plan for each family caregiver.

Addressing Long Term Care Needs

            Other approved legislative proposals, supported by the state’s nursing facility industry, were also signed by Governor Chafee.  

            Lawmakers passed and the Governor signed legislation to permit pharmacies that sell medications to nursing homes to buy them back, with a “restocking” fee.  Under the new law, medications that are individually packaged, unopened, and meet other safety requirements as determined by a pharmacist can be used rather than being discarded.

            Also signed into law were measures that promote “aging in place” and direct the state’s Department of Health to review regulations to permit this.

            Finally, the Governor signed the Palliative Care and Quality of Life Act, which establishes an advisory council and program within the Department of Health. Also, beginning in 2015, every health care facility must establish a system for identifying patients or residents who would benefit from palliative care and provide information and assistance to access such care.

             Virginia Burke, CEO and President of the Rhode Island Health Care Association (RIHCA), observed that this year’s legislative session had mixed results for nursing home residents.  Most of the bills that the group supported did pass, which “should lead to enhanced care for our residents,” she says. 

            According to Burke, “Unfortunately, providers were anticipating an adjustment to their rates this fall to address price increases in things like insurance, food, and utilities and that was taken away due to the budget deficit.  We’re very lucky that Rhode Island providers are known throughout the nation for their delivery of quality care, but quality begins to suffer when providers don’t have adequate resources to do the job.”

            This year difficult budgetary choices were made to balance the state’s budget.  Although aging advocates did not get everything they pushed for, Governor Chafee and the Rhode Island General Assembly did fund programs and services that are sorely needed by the state’s growing senior population.  I urge lawmakers to continue these efforts in the next legislative session.  

            Herb Weiss LRI ’12 is a Pawtucket-based writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com