Joint Economic
Development Committee eager to study RIPEC’s proposals
STATE HOUSE – The leaders of the
Permanent Joint Committee on Economic Development said today they will
seriously consider the proposals made by an independent evaluation of the
state’s economic development efforts, with an eye toward vetting legislation in
the upcoming session.
The Rhode Island Public Expenditure
Council issued a report yesterday recommending systematic changes in the way Rhode Island pursues
economic growth, and gave a presentation yesterday on its findings to the joint
committee, which is co-chaired by Rep. Donna M. Walsh and Sen. James C.
Sheehan.
Gov. Lincoln D. Chafee asked the
nonprofit, independent RIPEC to review the Rhode Island Economic Development
Corporation (EDC) following the collapse of Curt Shilling’s 38 Studios. In
2010, RIEDC backed $75 million in loans for the video game company as part of a
deal in which the company would move from Massachusetts
to Rhode Island .
After struggling with payments on the loan, the company declared bankruptcy
earlier this year.
“The saying is, from crisis comes
opportunity. The anger and disappointment that followed the 38 Studios has
opened the door to an honest discussion about how the state sets its economic
development strategy, how the EDC or any successor organization fits into that
strategy, and how we position the state for the greatest recovery in the
shortest amount of time,” said Senator Sheehan (D-Dist. 36, North
Kingstown , Narragansett).
Said Representative Walsh (D-Dist.
36, Charlestown, New Shoreham, South Kingstown, Westerly), “We’re very grateful
to RIPEC for making such an in-depth, independent study of our state’s approach
to economic development. We all want to see businesses succeed in our state.
Our committee is eager to examine these proposals and to effect the changes
necessary to improve the climate for businesses in Rhode Island .”
RIPEC’s 135-page report focused not just on
EDC, the quasi-public corporation responsible for the state’s economic development
efforts, but also all state activities and structures related to business.
The report recommends the
appointment of a state commerce secretary who would help shape the state’s
business policies and oversee a new Executive Office of Commerce.
It also recommends renaming EDC as the Rhode Island
Commerce Corporation, which would carry out the secretary’s business policies
and concentrate on serving the state’s businesses.
Additionally, RIPEC
recommends the creation of the Council of Economic Advisors to analyze data and
make policy recommendations; and the creation of the Commerce Coordinating
Council, comprised of state department heads, to coordinate so that businesses’
needs are considered in development of policies affecting them, such as
transportation, insurance, housing and education.
RIPEC’s leaders indicated that they
will be working on developing legislation that can be introduced to help
implement its proposals.