PROVIDENCE – The Rhode Island Health and Educational Building Corp. has generated $2.4 billion in economic impacts and created 3,200 jobs based on the $1.5 billion in bonds it has issued over the last seven years, according to a new report.
The economic analysis of the state’s quasi-public agency, which offers low-cost financing to educational and health care organizations, reflects the economic impact of bonds issued between 2016 and 2022.
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According to consultant FXM Associates, the agency’s bonds resulted in $2.4 billion in direct, indirect and induced spending within the state economy – more than 1.5 times the amount of money issued in bonds during that time. This included $1.5 billion in spending for the construction industry, $197 million in spending for the finance and insurance industry, and $119 million in spending on professional and business services, according to the report.
The projects funded through these bonds also created 3,200 new jobs (direct, indirect and induced), which is more than 50% of the 5,710 net job gains statewide during this time.
“Clearly, the expenditures resulting from RIHEBC bond issues had a significant positive effect on the Rhode Island economy over this difficult period,” the report stated.
Projects financed with RIHEBC bonds also contributed more than $100 million in state and local property taxes (split evenly between state and local), as well as $226.6 million in federal taxes, the report stated.
“RIHEBC is very proud to help Rhode Island’s health and educational institutions meet their mission-critical capital needs, even more so when we see the dramatic impact these financings have on the state economy,” Kim Mooers, executive director of RIHEBC, said in a statement. “This is powerful evidence that supporting our health and education sectors is an economic and job creation engine for Rhode Island. You can see this firsthand when visiting project sites teeming with construction workers; projects that were made possible by RIHEBC’s low-cost financing programs.”
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
