Bottom line up front.
a. Article 20 does not solve the problem.
b. House Bill 7432 and Senate Bill 2335 are an innovative, statewide solution to a statewide problem which addresses the infrastructure in the entire state and does it in a fair and equitable manner.
c. The bills simply ask to spend $100 out of $7800 per resident per year in a different manner.
d. And there is a way to free up more money without new and/or more taxes and fees to the residents..
1. If Article 20 were allowed to go through as planned….
a. $20-25 million in annual toll revenue per Jacobs/RITBA
b. Estimate a range of $10-30 million in lost state tax revenue due to lost tourism and losses at the Newport Grand Casino. I can go into detail on these if you like.
c. East Bay Infrastructure Fund – all four bridges to Aquidneck Island and all East Bay roads in great shape,
d. But, RIDOT still has bucket slides and debt.
e. No money for rest of state bridges and infrastructure.
f. In a few years, right back here looking for money for the rest of the State infrastructure.
2. If tolls were good for business, we would ask for them.
a. Governor Chafee’s report from the Fourth Economy.
b. Senator Paiva-Weed’s report Moving the Needle”
c. Speaker Fox and your own 18 bill House Economic Package
d. All say economy is most important, but tolls will hurt the economies of the East Bay and Aquidneck Island.
3. Let’s look at the numbers in a new manner.
a. RI residents pay federal and state taxes. All tax money flows to the state budget.
b. RI State budget is $8.5 billion.
d. RI residents from 2011 census is 1,050,000
d. So, the state spends $7831 per person per year
e. By comparison, Mass spends $5267
f. The national average is $5297
g. The state is spending 48% more money per person than Mass.
4. We believe we are paying enough in taxes for health, education, environment, and safety.
a. The state has obviously not been spending enough on infrastructure.
b. Now the state is asking for even more money for infrastructure which is one of the fundamental areas that governments should spend money.
5. Again, the state is spending $7831 per state resident.
a. Every resident uses the infrastructure in some capacity.
b. The infrastructure problem has now been defined as $1 billion or $100 million a year for the next 10 years.
c. 100 million a year divided by 1 million residents is $100 per person per year.
d. Therefore, we ask, that from the $7831 per person per year spending which is 48% higher than the national average, that you spend $100 per person per year (1.2%) in a different manner.
e. Do not take more new money from the taxpayers who are already maxed out and are rebelling. Just spend $100 of the $7831 in a different manner.
f. Whether you ask for $100 more from me, or spend $100 less on me – the effect is the same.
g. Arguably, it is better psychologically, economically and politically to re-direct spending than to tax more.
6. That is what House Bill 7432 and Senate Bill 2335 will do.
a. Re-direct spending at $100 per resident per year to fund the infrastructure.
b. There is only 1.65% new money embedded in the funding.
c. It is a statewide solution to a statewide problem.
d. It shares the burden equally and fairly. Everyone uses the state infrastructure.
e. It arguably would put $100 million a year into the part of the economy that creates jobs and hopefully all the contractors would be from RI. A lot of that money would be re-spent.
f. The re-directed funds do not come from benefit programs only. The state spends money on buildings, utilities, cars, gasoline, insurance and more.
g. Money is fungible in the state budget.
7. At the Senate Bill 2335 hearing on March 6th, Mr. Lewis said he was concerned about not enough new revenue.
a. Where is the state going to get $100 million of NEW dollars a year?
b. Multiply the Article 20 toll figures on the Sakonnet by 5?
c. Send all residents a bill for $100 a year?
d. Raise taxes and fees or create new taxes and fees?
e. Or,perhaps the Inspector General could help find it?
f. It is time for governments to put effort into becoming more efficient at spending rather than continuing to hammer the taxpayers.
g. If you want to find money to spend that does not hurt any other program, create an Inspector General System. They will find areas of fraud, waste, abuse and inefficiencies.
8. Take a look at the Massachusetts Inspector General.
a. Their website is easy to find and use.
b. Their mission and history explain how the IG operates in the area between the Attorney General and the Auditor General.
c. Annual IG operating budget is $2.3 million.
d. 2012 annual report showed the state received $12.6 million in fines and returned money.
e. The IG helped return $13 million the year prior.
f. And in 2012, the IG gave the State of Mass - a series of recommendations, if implemented, could save the state $233 million. Just from their work in 2012.
g. They have been around since 1981, 33 years, and they are still finding money in Mass. Maybe that is why Mass spends less per person than the national average?
9. In conclusion,
d. And if implemented, the IG could find even more money.
10. If 7432 and 2335 both passed and the IG system was implemented; after infrastructure, the resulting funds could be used to:
a. Help the economy,
b. Reduce debt
c. Help the pension
d. Give back to towns for schools
e. Help get this state get going in the right direction.
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