|
Dear Advocacy
Solutions client,
Welcome
to our second newsletter of the 2007 Rhode Island General Assembly session.
This edition includes highlights of the Governor’s State of the State Address, the proposed FY08 Budget, as well
as key staff changes. We have also provided an update of how the 2007
session has progressed thus far.
We look
forward to continuing to work with you.
Sincerely,
Francis X. McMahon, Esq.
President, Advocacy Solutions
Jeffrey M. Taylor, Esq.
Managing Director of Government Relations
|
Governor Carcieri’s State of the State Address
|
|
|
|
On January 30th, Governor Carcieri
delivered his fifth State of the State Address, which focused on the
environment, education, and transportation.
The Governor discussed three major
challenges facing the state, including: (1) a reduction in government
expenditures; (2) economic growth; and (3) an improvement in the
education system.
Other key points of the speech included:
- A proposal entitled the “21st Century Education Plan” to improve student achievement through an
increased focus on finance, quality and compensation of educators,
as well as improvements in urban schools;
- A proposal to provide secondary and elementary
schools with an additional 46 Million Dollars in state aid;
- Legislation to remove the moratorium on charter
schools;
- A proposal to pursue renewable energy
resources, with the goal of having 20% of the state’s electricity
provided by such resources
within four years;
- A proposal to create the Rhode Island Power
Authority, to oversee the state’s renewable energy resources;
- An announcement that the state will join the
Regional Greenhouse Gas Initiative; and
- A proposal for a new 70 Million Dollar highway
investment plan, to be funded by a one-time revenue source;
Overall, the
Governor offered an optimistic outlook on the state, commenting: “I am pleased to say
tonight, that with much
effort, the Rhode Island ‘ship of state’ is turning and heading in a new and exciting direction. Steady
as she goes!”
To view a copy of the Governor’s State of the State address, please see: http://www.governor.ri.gov/documents/statemessage07.pdf
|
|
Governor’s
Proposed FY08 Budget
|
|
|
|
On January 31st, a day after his State
of the State address to the General Assembly, Governor Carcieri unveiled
his FY 2008 budget. He acknowledged that this budget was particularly difficult,
as “the combined, two-year projected
excess of expenditures
over revenues was almost $360 million.”
The proposed FY 2008 budget comes with a
price tag of $7.0 billion, which includes $3.4 billion of expenditures
funded from general revenues. Compared to the FY 2007 budget, this year’s budget reflects a
total expenditure increase of $352.4
million or 5.3 percent. Expenditures funded from general revenues will
increase $209.8 million, or 6.2 percent.
In order to support his education goals
for the state, the Governor is redirecting funding from many other
departments, most notably, DHS and DCYF. Child care programs are taking
the brunt of the reductions, as the eligibility for the child care
subsidy program is being reduced from 225 percent of the federal poverty
level to 150 percent. Additionally, the scheduled reimbursement rate
increase for child care providers is being delayed until July 1, 2008.
The Governor also proposes decreasing the age limit for those who receive
DCYF services, from 21 years to 17 years. In his budget press conference,
the Governor defended these difficult choices, stating that “We must target our
limited resources at those who most need
it. By limiting eligibility to those most in need, we can preserve the
core program.”
Other notable budget proposals include:
Additional and Increased Fees - The Governor proposes changes to numerous fees
levied by the state and the creation of some new ones to generate a total
of $7.1 million for FY 2008. These include professional licensing under
jurisdiction of Department of Health, health regulation, and motor
vehicles.
Health Insurer Assessment - The Governor proposes removing the insurance
gross premiums tax exemption from health maintenance organizations. The
HMOs would pay the lesser of 50 percent of the
difference between their medical loss ratios and 88 percent medical loss
ratio, or a gross premiums tax.
Provider Tax for Surgi-Centers and Imaging Centers - The Governor’s budget assumes $4.0 million in new revenues from a provider assessment on free standing
ambulatory surgery centers, physician ambulatory surgery centers and
podiatry ambulatory centers, as well as non-hospital imaging services
centers.
Tobacco Securitization - The Governor proposes selling the residual
portion of the 2002 tobacco securitization bonds and includes $20.0
million in FY 2007 from the proceeds. The 2002 bonds were based on 40
years of the state’s tobacco master settlement agreement payments; the payments would pay off the bonds in 22 to 25 years.
The balance is the residual portion.
To view the Governor’s proposed FY08
Budget, please see: http://www.budget.ri.gov/FY2008GovernorsBudget.php
To view
the House Fiscal Advisory Staff’s FY08
Budget at a Glance, please see: http://www.rilin.state.ri.us/HouseFinance/BudgetGlance.pdf
|
|
Governor’s Staff
Changes
|
|
|
|
Brian P. Stern to serve as Governor
Carcieri’s Chief of Staff
Governor Carcieri recently announced that, as of March 1st, Brian P.
Stern, Esq. will serve as his Chief of Staff. Stern will replace Jeff
Grybowski, who has been a member of the Governor's staff since his
inauguration in 2003, and served as his Chief of Staff since May 2006.
In a press release dated February 13th,
the Governor praised Stern, commenting: "Brian has repeatedly proved
himself as one of the most talented administrators in state government .
. . Brian understands how state government operates and how it can
operate better."
Stern has served as the Executive
Director of the Rhode Island Department of Administration since 2005.
Previously, he served as the Executive Counsel and the Administrator of
Legal Services for DOA. Prior to joining DOA, Stern served as the Deputy
Chief of Legal Services and Chief Securities Examiner at the Department
of Business Regulation. Outside of state service, Stern has served as an
Adjunct Professor at Roger Williams University
Law School,
and was a partner in a private law practice in New York City.
John R. “J.R.”
Pagliarini to serve as Governor Carcieri’s Deputy Chief of Staff
Governor Carcieri recently announced that J.R. Pagliarini will serve as
his Deputy Chief of Staff. J.R. began his position on February 12th.
He previously served as U.S. Senator
Lincoln D. Chafee’s State
Director/Deputy Chief of Staff. Prior to joining Senator Chafee’s staff, J.R. served
as Director of Government Relations for
United Healthcare of New England. He also previously worked for Chafee
when he was Mayor of Warwick, serving as Communications Director and
Community Development Coordinator. His career stints also include working
for Governor DiPrete, Bradford Gorham, as well as Strategy Corporation.
In a recent press release, Governor
Carcieri stated: "I am very pleased to bring someone of J.R.’s caliber to my staff. He has played an active role in government at the
local, state, and federal levels, and he has a thorough understanding of
how to get things accomplished."
J.R. replaces Clarke Green, who has
recently taken the position of Chief of Staff and Policy Director for the
state Department of Elementary and Secondary Education.
|
|
2007 General
Assembly Session Update
|
|
|
|
The 2007 General Assembly session has
been in full gear for nearly two months. Thus far, the Senate has
introduced 780 bills, while the House has introduced 430, for a total of
1210 bills. However, because the House of Representatives did not meet as
scheduled on February 14th (due to inclement weather) it is expected that
hundreds of bills will still be introduced when the General Assembly
reconvenes on February 27th. During the 2006 legislative session, 2811
bills were introduced.
The House Finance and Senate Finance
Sub-committee hearings on the FY08 State Departmental budgets and
individual Budget Articles are scheduled to begin on March 1st.
|
|
2007
Legislative Calendar
|
|
|
|
Winter Recess
February 19 - 23
Reconvene
Tuesday, February 27
Last Day for House Committee
Consideration of House Bills
Thursday, April 12
Last Day for Senate Committee
Consideration of Senate Bills
Thursday, April 12
Spring Recess
April 16 - 20
Reconvene
Tuesday, April 24
Ethics Commission Financial Statements
Due
On or before Friday, April 27
|
|
|
