1. STORY OF THE WEEK: Gov. Dan McKee had a high-profile platform last Tuesday, using his State of the State speech to assert that Rhode Island is “flipping the script” from some of the less flattering narratives of yesteryear. McKee was right to point to an all-time high in the state’s labor force on his watch. But although Rhode Island’s labor force participation rate hit 65.2% last July — the highest level since 2014 — that was still below a number of past peaks.
   
   So whether the economic glass is half-full or half-empty in the Ocean State remains subjective, depending on the relative experience of different individuals. McKee seemed more comfortable in delivering his upbeat address, celebrating various elements of good news -- ranging from a successful first-season for the Rhode Island FC soccer team to how Regent Craft is adding jobs at Quonset. The governor’s message competed, however, with how TV cameras were kept out of the House chamber, Harrison Tuttle of BLM RI was led away by the arm by a plainclothes officer, and protesters were restricted to a small area on the first floor of the Statehouse.
   
   In the view of Phil Eil, “the governor’s actions toward the press and protestors, which would have been ill-advised at any time, were especially tone-deaf at our current moment,” with Donald Trump poised to return to the White House. During the GOP response, RI Senate Republican Leader Jessica de la Cruz of North Smithfield pointed to familiar problems -- the Washington Bridge, the recent cyber-breach, under-performing schools, and so on -- in arguing that Democrats have the state headed in the wrong direction. All this takes place as Rhode Island is once again facing worsening budget deficits in future years. McKee’s budget includes efforts meant to stimulate economic growth and to cut spending over time. But while unemployment in the state remains low, the quest to build a stronger, more diverse economy very much remains a work in progress. Voters will have their say next year.

2. GUN BAN: McKee used the platform of the State of the State to place a marker -- his inclusion in the budget of a ban on assault weapons. This attracted a positive response in the House chamber and the proposal appears to have significant support in Rhode Island. But Republicans are not alone in calling the budget the wrong place for a contentious gun-limiting proposal, and it’s unlikely to remain there ahead of what is certain to be a sharp Statehouse debate on the pros and cons. As House Speaker Joe Shekarchi tells me in a statement, “I don’t think it is appropriate to have an important gun issue considered as part of the budget. Social issues that bring out strong passions on both sides should be considered on their merits as stand-alone legislation. In the four years I have been Speaker, I am proud to have strong bipartisan support for every budget, and I don’t want members to vote one way or another on a budget based on their feelings about a social issue.”

3. LOOKING AHEAD: Although McKee has a modest +4 approval rating in a new survey from DC-based Morning Consult, the governor’s campaign said it was encouraged by the findings. Campaign spokesman Mike Trainor said the rating compares favorably with how former Gov. Gina Raimondo was rated at a similar point in her tenure. “And this December poll was taken amidst continued focus on the 195 Bridge and the RI Bridges data breach,” Trainor added. “Even more encouraging, this result for the Governor implies an even stronger level of support for him among Democrat primary voters.” Jon Romano, campaign spokesman for Helena Foulkes, responded on X, “LOL.”

4. SEEING RED: With the end of federal COVID aid, Rhode Island is once again facing a string of future deficits. The red ink has to be cleared by the end of the fiscal year, but an imbalance between the growth of revenue and expenditures -- mostly education and health and human services -- makes for a structural imbalance. Over the next four years, the deficit is projected to grow to about $400 million, down from $683.5 million, if the changes proposed in McKee’s budget are approved by the legislature.

5. TROUBLED PROSPECT: The bankruptcy filing of California-based Prospect Medical Holdings, owner of Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence, has raised concern about the future of those institutions. It has also focused the attention of more elected officials on the situation, even though the threat to the local hospitals has been visible for years. The hospitals are among the largest employers and biggest taxpayers in their respective communities. What happens next is unclear. Gov. McKee is hopeful that the local hospitals can be carved out from the bankruptcy, making it easier to complete their acquisition by the Centurion Foundation, a nonprofit in Atlanta. However, as I’ve reported, Roger Williams and Fatima face more uncertainty even under that scenario.

6. TRUMP NOMINEES: U.S. Sen. Jack Reed, a former Army Ranger, was among the Democrats front and center in calling Pete Hegseth unqualified to lead the U.S. Defense Department.

7. CHANGE IN DC: With Donald Trump returning to the White House on Monday, Climate Action RI and a host of progressive co-sponsors planned a “rally for the planet” on the Statehouse lawn from 2 to 4 pm on Inauguration Day. The speaking program included Darrell Brown, VP of Conservation Law Foundation, Providence Councilor Sue AnderBois, Sen. Meghan Kallman (D-Pawtucket), Reps Jen Stewart (D-Pawtucket) and David Morales (D-Providence), and Aaron Regunberg, director of the Climate Accountability Project for Public Citizen. “This is our moment to create lasting change,” Jeff Migneault, co-president of Climate Action RI, said in a statement. “It's clear that climate change is impacting our families, our communities, and our way of life. We're seeing it in hotter summers, stronger storms, and even the food we grow. While the incoming administration will try to deny or even accelerate the problem, Rhode Islanders know we can't afford to wait. We need bold action now to protect our environment and build a better future for everyone.”

8. GOING FEDERAL: U.S. Attorney Zachary Cunha, who is facing the end of his tenure due to the incoming GOP administration in Washington, is not directly addressing the question of whether he will run for attorney general next year. But Cunha, who has spent most of his career with the Justice Department, sounds like he may not be done with public service. During an exit interview this week, he said, “Whatever comes next, I hope I have some opportunity in the future to continue to be of service and of use to the community.”

9. GINAWORLD: U.S. Commerce Secretary Gina Raimondo is among the Democratic appointees about to leave office. In an exit interview with Kai Ryssdal on MarketPlace, she expressed satisfaction with her record. Excerpt: “Under the president’s leadership we have, you know — the Commerce Department, under my leadership here, we will have invested $90 billion into infrastructure, internet, manufacturing and chips. I could never have imagined the scale of it. That being said, when the president hired me for this job, he asked me to take the job to help rebuild American manufacturing. And so certainly that’s why I did it. And I am a strong believer — you know, when I hear President Trump say we’re just going to tariff our way to a revitalization of American manufacturing, I don’t believe that. You know you need to make investments, and that’s what I’m proud of, that we’ve done.” 

10. BUSINESS PERSPECTIVE: Laurie White, president of the Greater Providence Chamber of Commerce, was my guest this week on Political Roundtable. Here’s part of her response on what she called the top obstacle to improving Rhode Island’s economy: “We’ve seen 30 of the state’s largest employers over the last three or four months. And their feedback is essentially the same, which is we are having trouble finding and recruiting people, retaining people, because of a number of factors, particularly the inability to get people that are skilled in the jobs that are being created today, populated today that do require some advanced education. So we are working very closely with our colleges, our universities to say, Hey, if we make a bridge, if we create a better bridge, a more tightly wound bridge between what our employers are asking in terms of skill sets and training opportunities and tapping into what the University of Rhode Island is offering, what Providence College, Johnson and Wales, Bryant University, and setting up real specific training programs like certificate programs that’s not going to take forever and ever to complete, but you can do these stackable certificates in a matter of weeks and months. Rhode Island College is a perfect example of that. We need to make those linkages tighter.”

11. RI POLI-MEDIA PEOPLE ON THE MOVE: James Kwon is signing off as the DC-based comms director for U.S. Rep. Seth Magaziner to take a similar role with the Congressional Asian Pacific American Caucus and a related PAC …. Kristen Haffenreffer, previously development director for RI PBS, is signing on as VP of philanthropy for Family Service of Rhode Island …. Amy Moses, a former Raimondo staffer and head of the Conservation Law Foundation in RI, has been named a federal magistrate judge for RI … The RI Community Food Bank is searching for a new CEO … Last but certainly not least, longtime RI poli staffer J.R. Pagliarini is the Rhode Island business development executive for Machado, a Worcester-based cybersecurity/IT company.

12. PINBALL: Take a visit to the Electromagnetic Pinball Museum in the Woodlawn section of Pawtucket, which features more than 70 working machines at any given time. “We love pinball because it’s real,” said Emily Rose, one of the co-founders. “Underneath there, it’s real. A digital pinball machine isn’t going to give you the same experience.” 

13. SEXUAL ASSAULT: A woman invented the rape kit. So why was a man given credit for it? Via NPR Fresh Air.

14. KICKER: The Old Canteen is an iconic Providence restaurant, so it seems just wrong that it’s going to close and become a purveyor of wieners, as Gail Ciampa reports in the ProJo. The Canteen is where Buddy Cianci had his first Rhode Island meal after getting out of a Boston halfway house in 2007. It’s where Nick Mattiello made calls as he put together his support for the speakership after the fall of Gordon Fox in 2014. A little more of old Rhode Island is slipping away, joining Benny’s and the Follies in the collective memory of the past.