April 15, 2010

Favor Factory Skullduggery

Justin Katz

I'm of the opinion that Rhode Island doesn't need to spend any public dollars on economic expansion — unless you're one of those who calls it "spending" when the government doesn't take as much from other people's earnings. Cut taxes; eliminate mandates; lighten regulations. Even from that position, though, it seems as if there must be something more to this:

Over the strenuous objections from some Republicans, the House approved the creation of a $125-million state-backed loan-guarantee program within the state's Economic Development Corporation.

The legislation is aimed at projects that create permanent, full-time jobs that pay at least two-and-a-half times the minimum wage, with priority going to entities that "expand high-wage jobs in knowledge industry growth clusters."

While it was described by House Finance Chairman Costantino as a jobs-guarantee program, it was denounced by House Minority Leader Watson as a scandal waiting to happen.

"If you don't want it to be a favor factory, kill the article," Watson, R-East Greenwich, said. "This is like an attractive nuisance for all sorts of skullduggery."

Rep. Charlene Lima, D-Cranston, sought disclosure of the "name, and the office, held, by any elected official who contacts the RIEDC in support of a business seeking monies" under a facet of the new program, but the proposal went down 46 to 25.

Of course, "a favor factory" is precisely what the General Assembly wishes to be. What's the point of being a part-time legislator in New England's hub of political corruption unless one can transform political clout into economic reward by way of dispensing favors? I'd say that Rhode Islanders will have to keep a close watch on this program, but lawmakers have created such a plentiful field of dark corners that concerned residents are apt to go cross-eyed trying to keep track of questionable activities.

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Does ANYONE believe that this will improve RI's economy or raise its bottom of the barrel rankings in comparisons of business attractiveness?

How much, or how little, of this new entities activities will be covered by (rather than exempted) under the Access to Public Records Act?

What requirements will be in place forcing the use of union labor (e.g., project labor agreements, prevailing wage) and/or acquiescence to union organizing of a participants workforce (e.g., requirements for "card check" and "neutrality")?

Probably the only thing missing is that they didn't slap a "green project" label on it.

If it walks like a political slush fund, and quacks like a political slush fund ...

Posted by: Ragin' Rhode Islander at April 15, 2010 2:30 PM