House Speaker K. Joseph Shekarchi’s Jan. 8 address at the Northern Rhode Island Chamber of Commerce’s Eggs & Issues Breakfast
“Shekarchi: No money for new programs, tax cuts” highlighted the stark reality Rhode Island faces in the 2026 fiscal year budget: no new programs and no tax cuts. While this news may frustrate business owners and advocates for new initiatives, it’s worth reflecting on how budget shortfalls have been managed in the past and what lessons they offer for navigating today’s fiscal constraints.
Historically, both state and federal governments have relied on specific strategies during times of budget deficits to avoid drastic measures like cutting vital programs or raising taxes significantly. One key tactic has been employment freezes in the public sector. These freezes often required existing employees to do more with less, reallocating workloads and finding efficiencies to maintain essential services. While such approaches have sometimes led to overburdened staff and delayed projects, they also underscored the importance of preserving critical programs without resorting to layoffs or severe cuts.
Another common approach during fiscal crises has been targeted spending cuts coupled with revenue-neutral initiatives. This strategy emphasized trimming waste, streamlining operations and making incremental improvements to maintain core services. The success of these measures has often depended on strong leadership, innovative problem-solving and robust communication between public and private stakeholders.
Did these strategies work? The answer varies. Employment freezes and spending cuts often succeeded in staving off immediate financial crises, but their long-term impact depended on whether they were paired with structural reforms. For instance, when followed by investments in efficiency and workforce training, these measures sometimes laid the groundwork for economic recovery. However, without follow-up efforts, they risked eroding public trust and diminishing service quality.
As Speaker Shekarchi urged, now is the time for the business community to step up and make their voices heard. Businesses must engage with their representatives and senators, sharing how legislative decisions will impact their operations. The Rhode Island Manufacturers Association’s initiative to match members with their legislators is an excellent resource. A personal call or email to your representative can have a profound impact, especially when paired with clear examples of how proposed policies, like minimum wage increases or decarbonization mandates, might affect your business.
Let’s take inspiration from past strategies, learn from their successes and shortcomings, and apply those lessons to ensure a balanced approach to today’s fiscal challenges.
(Karl Wadensten is CEO and president of industrial vibrator manufacturer VIBCO Inc. and a board member at R.I. Commerce Corp.)