CLICK HERE. / " title="RHODE ISLAND ELECTED OFFICIALS will need to make bold choices in the coming years to rein in projected state deficits and create jobs, two university professors said in a report released Wednesday.For a larger version of this image, CLICK HERE. /"/>PROVIDENCE – Rhode Island elected officials will need to make bold choices in the coming years to rein in projected state deficits and create jobs, two university professors said in a report released Wednesday.
Written by University of Rhode Island business administration professor Edward Mazze and Bryant University economics assistant professor Edinaldo Tebaldi, the report paints a gloomy view of the local economy.
“In the last three years, Rhode Island has seen virtually no new jobs created, a higher than national unemployment rate, home prices declining with homeowners having less equity and borrowing power, sources of revenue from gambling decreasing, property taxes increasing and growing underfunded public pension funds,” the report says. “And, the outlook moving forward is not bright.”
The authors anticipate that Rhode Island’s unemployment rate will drop, but at a rate slower than its New England peers and the national average. The report anticipates unemployment will fall from the current 11.5 percent to 11 percent next year and 7.4 percent by 2014.
On the state budget side, the authors anticipate the state will face a more then $350 million shortfall next fiscal year and gaps of more than $400 million in the next two years.
Past deficits have often been closed through one-time fixes such as money from legal settlements, funds from the federal stimulus or postponing funding the pension system. Such approaches are unlikely to be sustainable, according to the report entitled “Rhode Island Economic Outlook and Forecast: A strategy for reducing the state budget deficit.”
The deficits, the authors predicted, could lead to the elimination of government programs, less support for education, less state aid for municipalities and the trimming of public employee benefits.
Tight budget times may also force higher property taxes, the introduction of the sales tax on some currently exempt items and a jump in government fees, the report warns.
Mazze and Tebaldi called for government leaders to recognize the importance of a balanced budget, to create a more business friendly environment and to support education. Those steps, they said, would help attract businesses and jobs to the state and put Rhode Island on a path to recovery.
“Rhode Island can no longer afford to operate as an unfriendly business state,” the report says.” Jobs must be created and new sources of revenue identified. Rhode Island’s economic outlook will improve once the state solves it fiscal and regulatory problems.”
To download the full report click here.
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So TRUE, however what political leaderwill drink the Kool-Aid ,to his own political suicide!