Gov. Gina M. Raimondo has made it clear that Rhode Island needs a jump-start to get its economy rolling.
Of course, with a projected fiscal 2016 deficit of $190 million, there is no spare cash lying around to provide that boost. So the governor's budget is making significant cuts and/or reallocations of funds to create some modest economic-development tools.
One modest change – in terms of dollars – is the reallocation of the state's hotel tax revenue. The governor's team wants to increase the state's spending on tourism promotion and finds the current system of six regional tourism councils, which receive the bulk of the tax revenue, does not yield enough bang for the Rhody buck. The budget looks to keep funding for Discover Newport and the Providence-Warwick Convention & Visitors Bureau roughly intact, but puts in place significant cuts to the rest of the state's councils, redirecting the money for a more coordinated statewide marketing effort.
Three years ago the state pretty much came to the same conclusion, but no change was made because the individual councils argued that they were more effective on their own.
As the rest of the region continues to ramp up its spending – $15.9 million in Massachusetts, $12.7 million in Connecticut, even $3.1 million in Vermont, compared with $463,000 in Rhode Island this year – this approach is difficult to justify.
Change is neither easy, nor does it leave all existing structures and interests intact. But change must come, and this is a good place to start. •