Under the legislation (2013-H 6070A), the Council of Economic Advisors would include five members of the public appointed by the governor based upon their experience in economics, research and related training. It would also include, as ex-officio members, the Secretary of Commerce – a cabinet-level appointment created by other legislation (2013-H 6063A) passed by the House today; the director of the Office of Management and Budget; a representative from the Office of Revenue Analysis; and the director of the state’s labor management information systems. The Secretary of Commerce would serve as chairperson and would select a vice chairperson from among the other members.
The bill is part of the 18-bill package supported by House leaders this year to address economic development issues in Rhode Island.
Representative Walsh (D-Dist. 36, Charlestown, Westerly, South Kingstown, New Shoreham) said she sponsored the bill because she believes all state policies relating to the economy and economic development should be informed by experts who are familiar both with sound economic policy generally and Rhode Island’s economy in particular.
“Our state’s economic decisions should be made based on the advice of experts who understand what works in economics now, and who are familiar with Rhode Island and the specific issues it faces. This council is intended to be those experts, a group that gives sound advice based on up-to-date information and real economic principles, not politics,” said Representative Walsh.
Under the legislation, the council is to serve as a collection point of data and information on the economy of Rhode Island; advise the governor and the Executive Office of Commerce on economic policy; prepare economic policy analysis on specific issues such as tax credits, tax expenditures and other related matters; publish reports and analyses as it sees fit to inform the state of the effect of economic activity and policy; establish a central repository of economic information in conjunction with the Department of Administration, the Department of Revenue and other state departments; prepare an annual report on the economy of Rhode Island; and review and advise on the strategic economic development plan for the state.
Before an overhaul at the state’s quasi-public Economic Development Corporation in 2009, a similar panel of experts had served that agency in the manner proposed in Representative Walsh’s bill. That panel was eliminated by the overhaul proposed by former governor Donald Carcieri that year, and Representative Walsh advocated then and in the time since then to reinstate such a council.
The legislation, which will now be forwarded to the Senate, is cosponsored by Rep. Lisa P. Tomasso (D-Dist. 29, Coventry, West Greenwich), Rep. Thomas Winfield (D-Dist.53, Smithfield, Glocester), Rep. Teresa Tanzi (D-Dist. 34, South Kingstown, Narragansett) and Rep. Larry Valencia (D-Dist. 39, Richmond, Hopkinton, Exeter).