(Editor’s note: This is the second in an occasional series of stories speaking with this year’s gubernatorial candidates about their economic vision for Rhode Island. You can read the first installment here.)
PROVIDENCE – The daughter of a single parent who started a physical therapy staffing agency, Ashley Kalus followed in her mother’s footsteps to become a businesswoman in her own right, first as a business consultant for Accenture and most recently running a Chicago-based company called Doctors Test Centers that administered COVID-19 tests and vaccinations across Rhode Island.
Now she’s running as a Republican candidate for governor of the state in her first ever campaign for elected office.
It’s not, however, her first foray into politics. Kalus was director of public engagement for former Illinois Gov. Bruce Rauner, a Republican, from January 2015 to November 2016, and she was coalitions coordinator for his campaign from 2014 to 2015.
Kalus, 39, and fellow GOP candidate Rey Herrera, challenge a field of five Democrats, including incumbent Gov. Daniel J. McKee, Secretary of State Nellie M. Gorbea, former Secretary of State Matt Brown, Dr. Luis Daniel Muñoz, and another businesswoman, former CVS executive Helena Foulkes.
A Newport resident since last year, a married mother to three children and a former New England Golden Gloves boxing champion, Kalus describes herself as a “political outsider” who is “all-in” on the race for governor. She recently announced that she put $500,000 into her campaign account and that she would “raise and write whatever amount is necessary to make this a competitive” election.
- What is your economic vision for the state – meaning what would be your plans as governor to grow the state’s economy?
We need to turn Rhode Island into the economic gateway to New England. We have everything – interstates, rail, an international airport, a deep water port and 400 miles of coastline. We need to leverage our assets, and, also, really fix our problems. One of the things we’re talkin about is we need to improve the business environment, which means we need to stop bribing businesses to come here [with tax credits], and instead create the environment for businesses to want to be here. To do that we need to reduce regulation and reduce the overall tax burden. [Tax credits] are short-term fixes. It doesn’t change the structural problems. Two other issues that are talked often as separate, but are tied to economic growth: Education. If we have the brain power, companies will come here. We need to fix our education system. Also, housing. If people can’t stay here, and people can’t move here, we can’t have growth. We spend the most per student with the least amount of return. If we were No. 1 in the country for education and spending, we’d be having a different conversation. But right now, we’re not getting a return on public education, and we need to fix it.
- How do you foresee building a better business climate in the state? What actions will you take?
As governor, you can definitely have an impact on regulations through the agencies. Also, you can create a different way that businesses are approached. A facilitative approach, more than a punitive one. Also, we’ll work together, and reduce the overall tax burden. You can do that through the annual budget proposal. The priorities will be there.
- What strategy or plans would you have for working on the state’s economic development with the R.I. Commerce Corp.?
The first thing we need to do is look to other states to see what’s worked. We need to look to Massachusetts, to solve our education crisis. Tennessee and Georgia, to lower our cost of living. Florida, for our state and local taxes to be competitive. Virginia and North Carolina, to be more business friendly. Ohio and Pennsylvania, to increase our affordable housing. Massachusetts, to drive innovation and access to capital. Illinois, so we can build and maintain the best infrastructure in the country. And again to Florida, so our grandparents and seniors can retire here based on affordability, quality of life and health care. A state that finds a better way of doing something for their own people can be a model for a state facing similar challenges.
- What’s your vision on tax policies impacting businesses throughout Rhode Island? Will you be trying to make any changes or adjustments to Rhode Island’s corporate income tax?
We have to be competitive with our neighbors in the region, and we’re not competitive right now. We’re looking at [lowering the corporate income tax] right now. We’re going to look at everything. We need a global view to see how we can make ourselves more competitive. We really need to look at revenue, to make sure the cuts are equal. Whatever we cut we need to make sure it’s fair and balanced. We’re not going to cut from agencies, especially those that deliver services to our most vulnerable citizens, DCYF, veterans. We’re just not going to do that.
- What can Rhode Island do to help attract businesses to relocate to the state?
We have to do all the things I’ve mentioned in the vision. We have to become more competitive. We have to create a better business environment. We have to make sure we’re offering a world class education to every student regardless of zip code. We need to leverage our assets. We’re a great state. The vision I have creates a better environment for everyone. Businesses should want to come to the state.
- How does your own experience as the daughter of someone who built her own physical therapy staffing agency business, in order to support you and your family, influence the decisions you would make when it comes to the intersection of Rhode Island government and the businesses in the state?
My mother built her own business and it taught me a lot about grit, hope and determination. I also think – I’ve built businesses myself – that you’re a different type of leader when you build a business from nothing, growing that business and helping others achieve success. I’ve stayed up at night trying to get things done. I’ve worried about making payroll and I’ve dealt with government regulations. When you’ve had a business of your own, you really understand the issues facing the business community.
- Now that the hospital merger between Lifespan and Care New England was rejected, how would you like the state to guide its hospital systems forward in order to make sure they’re as successful as possible while best serving patients from the state?
We need to lead and make sure there’s competition. You can’t have one operator that’s 80% of the market. That’s not good for health care workers. It’s not good for controlling costs, and it’s not good for the overall community. Competition is great in the health care market. I have a lot of experience with delivery and provision of health care services. That’s the industry I was in before. We can reduce regulations in a safe way that allows more competition.
- You talked in your initial campaign ad about gas prices and heating costs being high. Is there anything you could do as governor to alleviate gas prices, or heating costs, or is that something that would be out of your hands as governor?
Suspend the gas tax. That would help for short-term relief. We need to find a way to help people right now. They’re struggling, especially those making the least amount of money. People are making real tradeoffs. Groceries are expensive. With [the rising price of gas], getting kids to sports or wherever they need to go is really a struggle.
- What have you heard from small-business owners during your campaign thus far about what needs to change in Rhode Island law for them to be more successful?
They’re getting rushed. There was no relief during COVID. Recovering is difficult. Getting shut down was just devastating to the whole community. Business owners have had a really, really tough time. Some had to close their doors and let go of staff. Now they’re having problems restaffing. It’s really a challenging environment. This is happening in contrast to big box stores that were able to stay open. The experience of a small-business owner is really different from a large corporation. That disparity is not fair and hurt a lot of people in the state. You have to remember the mom and pop dollars stay in Rhode Island. The money from the big box doesn’t. Businesses in Rhode Island need a champion, someone who understands what they are going through, and someone who wants to fight for them.
- What’s your view on Rhode Island’s manufacturing economy and what could you do to support it?
We need to bring it back and have advanced manufacturing, which we can do through workforce development education and making sure we have the environment where manufacturers can stay and want to be here. … We need to make sure we have an environment that allows for growth. It all starts with education, which is part of workforce development. … We need to do this for the next generation. … We need to address our larger issues, rather than short-term fixes. Our biggest export should not be our kids. We need to make sure we have an environment where people can stay. We have great colleges. Let’s make it so graduates can stay and don’t have to go somewhere else.
- What do you think of the beverage tax that’s been proposed in the General Assembly that would create a 1.5 cent per ounce tax in Rhode Island, and what would you do about it?
I don’t support it. We don’t need more taxes. We have a spending problem, not a revenue problem.
(Update: Corrects fourth paragraph that a second Republican candidate, Rey Herrera, is also in race.)
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
