Former Governor Lincoln Chafee is criticizing the Raimondo administration’s plans to use millions in tax incentives to promote development in the I-195 District.
“Several years ago the New York Times studied taxpayer incentives used to attract companies to communities,” Chafee wrote in a letter to board members of the state Commerce Corporation. “The Times conclusion, summed up in the editorial below, was that this strategy is, “foolhardy”, “shortsighted”, and “senseless”.”
The Raimondo administration has targeted a total of a little under $40 million in incentives for Wexford Science & Technology’s envisioned $160 million development in the I-195 District.
Governor Gina Raimondo has called incentives part of what is necessary to make Rhode Island more economically competitive and to spark job growth.
During a news conference last December, she labeled Wexford’s project an economic-game changer for the state.
“No one is more focused on being a steward for taxpayer dollars than I am,” Raimondo said at the time. “Our goal is, use as little subsidy as possible to create the most number of jobs. …. This was negotiated. We were tough negotiators, as hard as we could be, over a period of months, to stick up for the taxpayer and make sure that we did a good deal.”
Yet Chafee, who has declined to say whether he might run for political office next year, argues otherwise in his letter to the Commerce board: “The NY Times study said that, ‘…improving education, transportation and other public services.. would have a far better shot at promoting real economic growth.’
“The Commerce Corporation would be wise to heed this advice and suggest redirecting the $40,000,000 to substitution of the anti-business truck tolls, or for lowering state college tuitions, or for helping the cities and towns lower the car tax,” Chafee wrote.
The Commerce board on Monday approved $13.5 million in Rebuild RI tax incentives as part of the total of $40 million in incentives for the project. Construction is expected to start this year.
Chafee, a former Warwick mayor and U.S. senator, preceded Raimondo as governor. After winning office in 2010, he decided against seeking re-election while facing low approval ratings.
