It is clear what vision of Rhode Island the General Assembly has.
Rather than slowing down the elimination of the state’s car tax, the fiscal 2020 budget approved by the House Finance Committee keeps the expected timetable in place.
The removal of the car tax is the signature issue for House Speaker Nicholas A. Mattiello, and he is determined to make it happen.
In the budget supported by House Democratic leaders, the payments to municipalities by the state for the ever-declining amount of car tax receipts they collect will increase to $94.3 million, resulting in a $38 million increase in state spending compared with last year.
In the same budget, the House retroactively decreases state spending on the Real Jobs Rhode Island program, Gov. Gina M. Raimondo’s signature workforce-development initiative, by $1.5 million. In the last few years it has placed 3,106 new hires and improved the job skills of 2,946 incumbent workers.
This is an investment that works, and its cost in fiscal years 2016 through 2019 [not including the proposed retroactive cut]: $26.9 million in state money. Its per worker cost: $4,447.32, for positions and skills that will remain in place for years.
Do we know how many jobs the elimination of the car tax created or how many people were retrained? Well, so far, no report from Speaker Mattiello provides any data on that point.
The difference between the approach of the governor and the speaker has to do with perspective. One looks forward and one looks backward. You decide which is better for Rhode Island.