In a state where the lieutenant governor has little sway over public policy, officeholders have historically used the position to shed light on issues of personal importance.
Lt. Gov. Daniel McKee has dedicated much of his time spotlighting issues impacting small businesses.
“There’s an acknowledgement that the blue-chip companies are important to our economy, but small businesses are equally important, maybe more so, if you put them together, and they just want a level playing field,” he said.
McKee’s hyperfocus on small business differentiates him somewhat from Gov. Gina M. Raimondo.
The governor, in her first term, has spent much of her focus and political power thus far making it easier for big-name companies, such as General Electric Co., to set up shop in Rhode Island. In consecutive years, she’s included in her budget millions of dollars for tax incentives to lure new building and to spur job growth, largely benefiting bigger companies.
While McKee sees the value in attracting big companies to the Ocean State, he says there should be comparable strategies to create a more business-friendly environment for small businesses. He recognizes some progress, but says those efforts have fallen short.
“It hasn’t happened enough over the years, otherwise we’d have a better business climate,” he said.
For McKee, it’s personal.
The Cumberland native, also in his first term, comes from a family of small-business owners. His grandfather founded a local ice company in 1900. By the 1940s, the company started supplying electric refrigeration. McKee and his brothers took over in the 1980s.
McKee ultimately entered politics, and served six terms as the Cumberland mayor. The business, now McKee Bros. Oil Corp., is run by his brothers. The experience of being around business, however, taught McKee how difficult it can be to run a small business, he said.
“When we were growing up, we knew where our bread was buttered,” he said. “We knew how hard a small-business owner works.”
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So, what’s he doing to help the small-business owner now?
The lieutenant governor is keen on protecting ratepayers, and has filed testimony to try and persuade regulators to keep electricity costs stable.
McKee has traveled to every community in the state on listening tours, meeting business owners at coffee shops and holding town hall events. He started a cable TV show highlighting business owners called “
Advance RI,” which airs weekly at 7 p.m. on local access.
McKee also chairs the Small Business Advocacy Council, giving him an official advocacy arm. The council, established by law, was created to make recommendations to the governor’s office and the General Assembly “to maintain and encourage the continued viability of small business in the state,” according to the law.
McKee says his traveling around the state has shown him trends.
“When you travel all over the state and start to hear similar stories in Westerly and Woonsocket, that means it’s happening everywhere,” he said.
Specific issues, he said, relate to the possibility of a minimum-wage increase and mandatory paid sick leave. For the minimum wage, currently $9.60 per hour, any sharp increase would make it incredibly difficult for many small businesses to absorb such costs, he said.
“If you have a major spike in costs for a business with less than 10 employees, where does the money come from?” he asked, hypothetically. “Are you, as the owner, going to go down to half a paycheck?”
McKee says the state should take note from other states, and look to gradually increase the rate to $12 by 2020. On the issue of paid sick leave, there’s currently a bill in both the House and Senate that would mandate paid sick leave for all Rhode Island workers for up to seven days per year.
McKee says he’s not opposed to the bill, but wants to see it tied to revenue and number of employees.
“Differentiate big businesses from businesses with less than 50 employees, and then less than 10 employees,” he said. “That’s not being reflected in the legislation, and it’s a misunderstanding that every small business is making a lot of money.”
How these issues progress through the legislative session will likely show how much influence McKee has on public policy. Lieutenant governors had more power prior to 2003, when the position also served as Senate president. Starting in 2003, however, the Senate could elect its own president, according to changes in the state constitution.
Nonetheless, McKee is committed to finding ways to effectuate change through advocacy, any way possible.
“We need to continue to provide a voice for the small-business community and level the playing field,” he said.
