Business lobby prepares aggressive legislative agenda

In fact, as local chambers of commerce begin to put together their legislative agendas for the upcoming session, health care and taxes remain at the top despite the apparent obstacles.

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“It’s obviously going to be a tough time for the state,” said Jason Martiesian, vice president of government affairs for the Northern Rhode Island Chamber of Commerce. “I think it’s going to be one of those years that it’s important to make sure the positives, already put in place, aren’t impacted.”

Of great concern to may local business owners, Martiesian said, is the continuation of tax programs like the phase out of the motor vehicle tax and capital gains tax that have been put into place in recent sessions of the General Assembly.

”We want to make sure that those initiatives go forward in times like these that are difficult,” he said. “We think that the General Assembly and the governor have put us in a better position than we were 10 years ago. Now we need to continue that.”

Some chambers, like the Greater Providence Chamber of Commerce, are looking for additional tax cuts this session – specifically in the manufacturing sector.

”The first issues, and a clear priority for us is changing the corporate tax structure for manufacturers,” said Laurie White, senior vice president of operations at the chamber. “We worked on it last year and weren’t able to push over the hump. If passed, the new tax structure would be incentive for Rhode Island manufacturers, it would make them more competitive.”

The other major issue for the chambers and their membership is health care.

”I think that the number one priority is small business,” said Keith Stokes, executive director of the Newport County Chamber of Commerce. “I am talking about the micro-businesses, those with under 50 employees. They are making it very clear that the cost of health care premiums are almost too much for them to bear.”

And while the general assembly thought that they had begun to handle the issue with the passage of the Small Group Health Reform last year, many in the business community agree that the topic needs to be re-addressed this year.

“Health care issues are the number one or number two priorities of our members,” Martiesian said. “The cost of health care is a difficult one to tackle for them and we are beginning to think that modifications might need to be made to the small business health care reforms already in place.”

White agreed.

”Employers are continuing to experience double-digit rate increases each year,” she said. “I think that we definitely need to look at the small group format and find out what impact it is having. What we are finding is that for many employers the benefit packages they offer their employees could at some point in the near future equal the salaries they provide. It’s a question of how much the small business employer can absorb, especially in this business climate.”

Both health care and tax reform are expensive items that according to Darryl West, a political science professor at Brown University, could be difficult to tackle during the upcoming session.

”I think the General Assembly faces a very ambitious agenda with redistricting, the budget, and gambling,” he said. “I am honestly not sure how many things they will end up addressing.”

Furthermore, he said, the current economic conditions could force legislators to look at issues that appear to be already settled, like taxes.

”I expect everything to be on the table,” he said. “Even if it has been resolved in the past that doesn’t mean that it won’t be reopened this session. Recessions are very difficult for politicians because it forces them into tough choices.”

Still, according to Stokes, this is not a time to steer away from economic development initiatives, especially when it comes to Newport County.

”From our chamber’s perspective one of the most important things is to retain and grow the defense industry,” he said. “With base closures deferred from 2003 to 2005, we have to work very hard to make sure Washington, and our local government understands what having the defense industry in Rhode Island means. From Electric Boat to the Naval Warfare College in Newport to Raytheon, and including the 50 or 60 private firms contracting with these companies, this could have a huge impact. We are watching it very carefully and taking a leadership position in maintaining the defense industry in the state.”

What ever happens, West said, it’s important that the General Assembly deal with these issues in a timely manner.

”My hope is that the General Assembly won’t wait until the last minute,” he said. “It is my thought that we need to be very careful and thoughtful about deciding these issues.”