Rhode Island Economy

An Incorrect Mitigation of RI’s Gloom

By Justin Katz | October 29, 2008 |

This statement, from an article describing the abysmal state of RI’s economy, is incorrect in a very important way: Six months ago, those who gathered in the State House basement for the semiannual Revenue & Caseload Estimating Conference learned that Rhode Island was the only New England state “in recession,” and just one of nine…

Closer to the Mark

By Justin Katz | October 27, 2008 |

David Anderson, who’s running for the 4th representative district seat in the General Assembly is closer to the necessary strategy than Edward Mazze: If elected I will sponsor or support legislation aimed at: Lowering taxes on businesses and individuals. The state must spend less to lower taxes. Let’s cut unnecessary government activities while making essential…

Mazzey Fluff

By Justin Katz | October 26, 2008 |

Edward Mazze has a commentary piece in the Providence Journal business section today (that doesn’t appear to be online) that completely reverses the order and emphasis of the steps that Rhode Island must take: Here are 10 ideas for job creation our legislators should consider: Recruit Rhode Islanders, specifically business leaders, to serve as ambassadors…

Add One More Name to the Invite List of that Forum, Gov

By Monique Chartier | October 26, 2008 |

Jack Welch, former Chairman and CEO of General Electric was a guest this morning on ABC’s This Week. He describes his company’s first hand experience with Rhode Island’s anti-business climate and how it is the “Don’t” model for dealing with a financial crisis. [Commenter Mike points us to this item.] The New York Times this…

A CEO for Rhode Island

By Justin Katz | October 24, 2008 |

Eleven “business and community leaders,” and only one gives the right answer to the question of what ‘can be done in the next 90 days to turn” RI’s economy around. Here’s Strategic Point Investment Advisors President and CEO David Brochu (emphasis added): Governor Carcieri should announce the creation of a business advisory committee, made up…

Let’s Learn the Lesson Now

By Justin Katz | October 24, 2008 |

So in the spring, the General Assembly and the governor passed a smoke-and-mirrors budget, and we’re well on our way to the nine-digit midyear shortfall that was obvious from the moment the state’s finances were declared “balanced.” What’s the next grand illusion? A third of a billion dollars in tax anticipation notes to kick the…

Rhode Island: The Least Advisable Place to Go

By Justin Katz | October 22, 2008 |

If such a thing is possible, news that Rhode Island has — perhaps for the first time in history — the highest unemployment rate in the country is both stunning and unsurprising. With all of our assets and attractions our state’s leaders can’t even keep us ahead of a single other state, let alone in…

A Question on Public Contracts

By Justin Katz | October 20, 2008 |

I understand that arbitration is a wildcard that Rhode Island officials might not wish to risk, but something about the latest deal — as with previous deals — worked out with public sector union leadership brings into relief the practices that have gotten our state into its current difficulties: Council 94’s new agreement — like…

Explanations on the Other Side of the Coin

By Justin Katz | October 15, 2008 |

I caught a snippet of U.S. Senator Sheldon Whitehouse on WPRO this morning remarking on the great mystery of Rhode Island’s horrible economy. Paraphrasing: “I don’t think anybody knows why it’s so bad. We should be in the middle of the pack.” Well, perhaps such outcomes are puzzling when the actual explanation is ruled out…

Lessons in the Muck

By Justin Katz | October 8, 2008 |

To the surprise of few readers, I’m sure, after just the first quarter, Rhode Island is now more than $50 million behind its budget. (I’ll stick with my $150 million prediction for the mid-year review.) There is, however one interesting bit of information in the disheartening revenue picture (emphasis added): The state derives its revenues…