The federal government continues to dole out local pandemic relief, but spending it well still relies on the sound judgment of state and municipal leaders. And that, unfortunately, means politics and the 2022 statewide elections will never be far from the decision-making.
How else to explain recent decisions by Gov. Daniel J. McKee and the Democrat-controlled General Assembly on the taxation of Paycheck Protection Program loans and then a City Council finance panel’s initial omission of funding for WaterFire Providence?
The former is a blatant money grab [$47.8 million over two fiscal years] at the expense of businesses that must create the jobs needed to move this state out of the COVID-19-induced recession.
Not only did Rhode Island reverse course in instituting this tax but it’s in the clear minority nationwide. It’s even more of an outlier when you add a tax on full unemployment payments.
But taxing both [Rhode Island is one of three states to do so] helps deflect criticism and, more importantly for proponents, leaves untouched $1.1 billion in new pandemic relief. That deep pool of money puts elected state officials in powerful positions, with voting constituencies lining up for their share.
But PPP tax supporters don’t have any real idea how many businesses still finding their way through the pandemic will be affected.
Providence nearly made a similar mistake, initially leaving out tourist-draw WaterFire among $42 million doled out from pandemic aid before City Council leaders stepped in.
At this stage of the pandemic, the health of the economy must be on every elected official’s priority list.