Tanzi’s transparency bill passes House
STATE HOUSE – The House of Representatives today approved legislation sponsored by Rep. Teresa Tanzi to increase accountability and transparency in tax credit programs and state agency reports.
The legislation (2013-H 6066A) is one of the 18 bills backed by House leaders as
part of their effort to address economic development efforts in Rhode Island.
Under the bill, the Office of Revenue Analysis’ Unified Economic
Development Report would be required to include a costs/benefit analysis of
each of the state’s tax credit programs.
That element of the bill is part of a larger effort for which Representative Tanzi has been advocating for several years. Tax credits are among the tax expenditure programs that she would like to see regularly reviewed for their effectiveness.
“Increasing transparency and oversight of government programs, especially
programs that give some preferential tax treatment, is always an improvement.
It’s not only about keeping people honest; it’s also about providing regular
opportunities for lawmakers to evaluate whether these credits are accomplishing
the goals we set for them, and whether they could be improved to work better
for the state. We pass these credit programs with the intention that they’ll
reap economic development for our state. We should be able to check in
regularly to see how they’re doing,” said Representative Tanzi (D-Dist. 34,
South Kingstown, Narragansett).
Besides the annual tax credit cost/benefit analysis, the legislation also
requires the state Office of Management and Budget to inventory all reports
required across state agencies and include information on their status in the
annual budget bill submitted by the governor. The General Assembly often passes
laws requiring reports, generally either once by a certain date or annually,
from state agencies, but compliance is often spotty, late or not enforced. This
legislation would strengthen those requirements by providing legislators an
annual opportunity to see the status of all such reports.
“Again, if lawmakers ask for a report, it’s because we want to see how a
program or an agency is working so we know whether changes need to be made.
Transparency is about being able to see whether things are working out or
whether changes are necessary to ensure that government is performing
effectively and efficiently. These are taxpayer-funded programs, and it’s our
obligation to our constituents to find out how they’re working and make changes
if they’re not,” said Representative Tanzi.
The bill, which is cosponsored by Rep. Lisa P. Tomasso (D-Dist. 29,
Coventry, West Greenwich, Rep. Frank Ferri (D-Dist. 22, Warwick), Rep. Donna M.
Walsh (D-Dist. 36, Charlestown, Westerly, South Kingstown, New Shoreham) and
Rep. Michael J. Marcello (D-Dist. 41, Scituate, Cranston), will now be
transmitted to the Senate.