Fogarty: In a state the size of Rhode Island, land use policies have extraordinary impact. To preserve the quality of life and quality of place that have been our heritage and at the same time grow in a sustainable and economically competitive manner, our land use policies must be thoughtfully developed and implemented. Land-Use 2025 presents a roadmap for such development. It describes the choices before us – to continue recent development trends that have resulted in scattered low intensity development, much of it disconnected from public infrastructure, or to pursue a new focused vision that will “shape future land use in Rhode Island to achieve vibrant community centers and neighborhoods, a pervasive greenspace network, revitalized urban centers, the containment of sprawl, quality design in development, and effective stewardship of all resources”. As Governor, I will make it a priority to work to implement Land-Use 2025 recommendations taking into consideration the need for strong coordination between state and local planning officials and integration of state and municipal planning systems.

Carcieri: I strongly support the Historic Preservation Investment Tax Credit, which has proven invaluable in our efforts to promote the continued revitalization of our historic cities and towns and to support economic development throughout the state. Not only does the tax credit assist municipalities with the preservation of historic structures, it also supports the creation of new housing units, thereby helping to address our shortage of affordable housing. The construction and revitalization of structures like the Masonic Temple demonstrate the success of this smart growth policy.

My support has also been evident in every budget proposal I have submitted to the legislature. With that in mind, I also believe that we must always be prepared to review every tax credit program from time to time to ensure that they are sufficiently targeted to provide Rhode Island taxpayers with the most effective benefit.

Fogarty: I am committed to keeping a strong Historic Preservation Investment Tax Credit program. A 2005 study commissioned by Grow Smart RI documented the significant contribution the historic tax credit program is having on economic development and neighborhood revitalization. The program is also helping to expand the number of affordable housing units, add millions of dollars to the property tax base of local communities and control sprawl and preserve our rural communities. The program’s return on investment and social benefits are impressive and clearly warrant its continuation.

Carcieri: Rhode Island’s high property taxes are becoming an unbearable burden for Ocean State families. I have supported a number of initiatives to reduce the burden of property taxes. Several years ago, I re-started the phase out of the motor vehicle excise tax. Last year, I proposed the largest increase in state aid to local schools in over six years.

I championed the historic reform of the state pension system for state employees and local teachers, which is projected to save Rhode Island taxpayers nearly $250 million over five years. Of the nearly $44 million in savings the first year, $18 million is saved in the school budgets of local cities and towns.

By renegotiating the state employee health care contract, I saved state taxpayers $25 million over three years. As part of the new contract, local cities and towns can piggyback on the state contract and thereby receive the same low administrative rates. This provision would help relieve the burden of local property taxes by enabling communities to save tens of millions of additional dollars.

This year, I signed into law a bill to reduce the cap on annual property tax increases. Because I believe that this reform will be implemented too slowly and will be too easily overturned by the legislature, I strongly support a constitutional cap on increases in local property taxes and in state spending. Unfortunately, the General Assembly blocked my attempt to place that question on the November 2006 ballot as a nonbinding referendum.

I agree that we need to determine a formula to guide the annual state funding for local schools. To that end, I proposed this year to distribute an historic increase in state aid to local schools by the amount that pension costs were expected to rise in each community. In doing so, my proposal would have built on last year’s reform of the pension system, while covering one of the most burdensome costs for local school districts.

While I agree that we must determine a more rational and predictable basis for funding local education costs, I believe that any funding formula must go beyond simply shifting the tax burden from one group of Rhode Islanders to another. The General Assembly is currently engaged in a study of this issue. As Governor, I am willing to work with the General Assembly to determine a funding formula that is fair to all Rhode Island taxpayers and which provides the resources to educate our children.

Fogarty: Rhode Island is a high tax state mainly due to our high property tax burden which is the 5th highest in country and 43% above the national average. Forty-two cents of every tax dollar in Rhode Island comes from the Property Tax and Rhode Island relies to a greater extent on property taxes to fund education than most states.

In 2004-2005, state funding supported just 36.7% of local education costs. This was the lowest ratio in New England and significantly lower than the national average of 48.6%. Reducing our property tax burden will be one of my highest priorities as Governor.

This year I actively supported passage of S3050Aa, a bill sponsored by Senate Majority Leader Teresa Paiva Weed, that I consider one of the most important tax reform bills of recent years. By gradually reducing the growth of the tax levy as well as controlling the rate of growth of local school spending, this legislation starts us on a path to Property Tax relief.

The next step must be to address education funding by reducing our reliance on local property taxes to support education. In September, I sponsored a Symposium on Property Taxes at which state Representative Edith Ajello, Co-Chair of the Joint Committee to Establish a Permanent Education Foundation Aid Formula for Rhode Island, described the work of this Commission and the inclusive process it is using to engage a broad section of stakeholders to address this important issue. I look forward to the Commission’s report, due in early 2007, and to working with the legislature to establish goals and a funding program to increase state support for local education. I also support and will work to put in place initiatives to gain greater efficiencies in education spending by promoting greater collaboration and exploring regionalization opportunities and the sharing of administrative, support and professional services among our communities.

A recent report published jointly by RIPEC and the RI Association of School Committees identified a potential for saving $83million to $100 million through such efforts. These are savings that could be used for property tax stabilization.

Fogarty: With the cost of housing in Rhode Island doubling in the last five years, addressing our residents’ needs for affordable housing is a major challenge facing state policymakers.

Addressing this issue is also a critical component of our economic development strategy as we attempt to attract and retain businesses and keep workers, especially our new college graduates, in the state. I actively advocated for the housing bond referendum – Question #9 on this year’s ballot -- and encourage all voters to approve this bond. If approved, the $50 Million in state bond money will leverage $450 million in additional investments and help increase the production of affordable houses and apartment units.

Even with increased production, the state Five-Year Strategic Housing Plan does not expect the State will meet its goal of ten percent affordable housing in each Rhode Island community for another twenty years.

To reach our affordable housing goal, it is important to identify a permanent funding stream for affordable housing. Activating and funding the Housing and Conservation Trust Fund passed in 1990 is a viable option to consider. Increasing the real estate transfer tax and dedicating the new revenue to fund the Housing and Conservation Trust Fund and local Housing Trust Funds is a funding alternative that should be considered. As Governor, I would work to explore this and other options to provide permanent funding to achieve the state’s affordable housing targets.

In addition, as strategic plans for the state do impact both our economics and our environment, it would be important that the interests of the business community and the environmental community be included in the council. Expanding the role of the council’s authority to include transportation initiatives should be considered in coordination with pertinent departments that currently oversee our transportation initiatives.

Fogarty: I support this recommendation to expand the authority of the State Planning Council (SPC) to assume duties previously assigned to the now dormant Governor’s Growth Council and to also oversee the implementation of strategic transportation initiatives.

The SPC was expanded in 2004 to include the Chair of the Housing Resources Commission and a representative of non-profit community development or housing corporations. These were important additions.

I support the recommendation for additional membership to include representatives of the business community, the Department of Environmental Management and the Economic Development Corporation. I would also recommend that a representative of the Rhode Island Public Transportation Authority be included in the SPC membership as transportation is such a vital component of state strategic planning.

I have supported additional funds for RIPTA for several years as that agency spent more than it budgeted. I have also worked closely with the board and its management to find additional efficiencies to save money without sacrificing services. In the wake of the approval of the Separation of Powers amendment to the constitution – which I strongly supported -- I have nominated a number of members to the RIPTA board of directors with the skills and experience necessary to help RIPTA provide better services to clients at a more efficient cost for taxpayers. Unfortunately, the Rhode Island Senate has declined for several years to even hold hearings to consider my nominations to the RIPTA board.

The responsibility for planning for the current and future operation resides with the RIPTA board of directors. The RIPTA board has been hamstrung for several years by the Senate’s failure to act on my nominations. I believe the RIPTA board of directors must be reconstituted and must have the opportunity to determine a plan for RIPTA’s current and future needs, including funding needs. I do not believe it would be prudent – or consistent with Separation of Powers – to allow the Senate and the RIPTA board of directors to continue to shirk their responsibilities.

Fogarty: RIPTA has to be a crucial component of any effort to improve the state’s economic development, workforce development, and quality of life. By providing almost 22 million passenger trips a year, RIPTA helps get Rhode Islanders to work, enables residents and tourists to patronize our businesses, and reduces congestion and improves air quality by keeping additional cars off of our roads and highways.

Unfortunately, for too long, the state has made short-term budget and management decisions regarding RIPTA that have failed to address the system’s long-term stability and service. For example, current state and federal regulations and labor agreements impair RIPTA’s ability to respond quickly to budget changes. Thus, if RIPTA’s budget is reduced in June, RIPTA cannot cut its operating costs until the following January, which means that RIPTA has to attempt to recoup a year’s worth of budget reductions within only half that time. Similarly, RIPTA’s reliance on gas tax funding to support substantial portions of its annual budget, operations, and maintenance means that as inflation erodes the buying power of those gas tax revenues over time, RIPTA has to cut back on operations or maintenance, which obviously impacts services.

In order for RIPTA to meet its full potential as a tool to improve economic development and our quality of life, Rhode Island has to examine all possible sources of revenue and opportunities to use current funding more efficiently and effectively. We should start by looking at dedicating a higher percentage of funds from the sale of additional excess roadway right-of-way property and motor vehicle licensing or registration fees to support RIPTA and other transportation purposes, rather than continue to depositing this revenue into the General Fund. We need to consider alternative pricing strategies that establish fares based on the actual miles traveled. We need to ensure that RIPTA is able to fully meet its matching fund obligations to maximize the amount of Federal revenues coming into the system. We should also explore public-private partnerships that can create additional revenues. And we must undertake a rigorous performance review of RIPTA administration, management, and operations to ensure that the organization is using every dollar wisely and efficiently.

Fogarty: With better planning and leadership, Rhode Island indeed can and must transform our water assets into a competitive and environmental advantage. As Governor, I will:

• Pursue Smarter Economic Development. Economic development must be pursued in coordination with available natural resources, in particular water supply, to avoid irresponsible development that exceeds the availability of future water supply.
• Address Fragmentation of Rhode Island’s Water Supply System. There is little coordination between most of the State’s 484 water suppliers, which inhibits the State’s response to emergencies or shortages. To reduce this fragmented approach to a vital state resource, I will work to create a regional or statewide water supply system.
• Develop a Comprehensive and Integrated Water Supply Plan. State Water Supply Plans must be consolidated and updated into a long range comprehensive, integrated plan that more accurately and responsibly reflects the state’s population growth and evolving demographic and economic development patterns.
• Enhance Water Conservation and Efficiency. While Rhode Island is blessed with abundant supplies of excellent surface and ground water, these supplies are not infinite. As Governor, I will direct the Water Resources Board to undertake an aggressive statewide public education program to encourage greater water efficiency.

Fogarty: Rhode Island is fortunate to have some 900 active farms, which are within a short drive for most of the state’s population. The state already ranks second in the country in direct marketing, due to our large number of farmers markets and roadside stands.

However, I believe much more can be done to support our local farmers. That is why as Chairman of the Small Business Advocacy Council, I have worked with Rhode Island farming advocates to support and promote our local farmers and agri- tourism.

As Governor, I will initiate a state public outreach effort to remind and encourage all Rhode Islanders to buy specially labeled locally-grown food and agricultural products. I would work to expand agri- tourism efforts to draw more Rhode Islanders and other visitors out of our cities and suburban communities to our farms. I enjoy this time of year in particular when I see so many visitors in northwestern Rhode Island where I live, visiting our pumpkin patches, farms, and produce stands. I also would love to see more visitors in all of our farming areas throughout the year. The state can and must do a better job of working with our farmers and local communities to market year-round agri-tourism.

In addition, I would like to see the state step up and do a far better job of procuring and using locally-produced food and agricultural products. The freshest produce usually is the healthiest produce. The state could do more to buy produce and other products and, in turn, better serve the health and nutritional needs of our schoolchildren, seniors, low- income families, and correctional populations.

Fogarty: Growing up in Glocester, I appreciate the need for open space preservation and how essential this is to a healthy economy and our quality of life. This is why I have advocated for bond proposals to preserve open space and develop public recreational areas, supported programs to bolster our farming economy, and promoted smart growth policies. I will continue these efforts as Governor by supporting state tax credits for permanent land conservation and ensuring that our transportation, land use and economic development strategies are better coordinated and supportive of smart growth goals.

The state can play a useful role in helping communities that already have enacted conservation development ordinances to transfer that knowledge and experience to those that do not.

The state ought to be helping local towns explore creative land conservation strategies, including transfer of development rights and better mixed-use planning. It also is important for the state to participate in and encourage smarter regional planning efforts and to disseminate information regarding their successful application to all Rhode Island communities and even neighboring states, as appropriate. To further encourage smarter regional planning and to help local communities in those efforts, I will seek to develop a statewide Geographic Information System center that can provide GIS services to support smarter local and regional planning.