Statement from Governor Chafee Regarding the Bankruptcy Filing for Central Coventry Fire District

Governor Lincoln D. Chafee said today that a state-appointed lawyer, Robert Flanders, and the Receiver for the Central Coventry Fire District, Steven Hartford, filed a petition in the United States Federal Bankruptcy Court to start Chapter 9 restructuring proceedings in regards to the fire district.

Governor Chafee continued: “This is an unfortunate step. Short of an agreement with the Firefighters Union and restructuring the district’s other debts, bankruptcy is the only tool left to us to finally set the fiscal ship of the Central Coventry Fire District on the right course. I fully expect the district to emerge from the bankruptcy with a reorganized and downsized operation that can pay back its debts and maintain a proper fire and rescue service, as well as assure tax stabilization for the residents.

“For about a year and a half, we have brought both sides – the Central Coventry Fire District and firefighting staff members – together to reconcile their differences. My administration has offered assistance, initiated back-and-forth discussion, and suggested and requested options. I have instructed members of my administration to continue the negotiations in hopes of working toward a resolution. The cost of the fire district has risen beyond the willingness of the taxpayers to pay, and now bankruptcy is the only means available to restructure the district's operations and obligations to restore it to fiscal solvency and stability for the future. While we are unable to predict how long the bankruptcy will take, our objective is to conclude it as soon as possible and obtain a confirmed plan to provide the district with a balanced budget for the next five to six years.

“Throughout my career as a mayor, senator and governor, I have been sensitive to striking the balance between the voice of the local taxpayers and the employees who work in our cities and towns."

Statement from the Office of Governor Chafee Regarding Data Sharing with the National Counterterrorism Center

A recent press release from the American Civil Liberties Union of Rhode Island reports that the Rhode Island Division of Motor Vehicles is one of 15 states sharing biometric data from drivers’ licenses with the National Counterterrorism Center (NCTC).

In regards to this allegation, Governor Lincoln D. Chafee said: “On August 20, 2014, Anthony Silva, the Administrator for the DMV, received a letter inquiring about the reported transfer of data to NCTC. Since the receipt of the letter, my administration has done an investigation and has found no evidence of the proactive sharing of information with the NCTC. I look forward to working with the Rhode Island ACLU on this issue.”

For more information, contact: Anthony Silva, Administrator, Rhode Island DMV, 401-462-5705 or anthony.silva@dmv.ri.gov

Statement from Governor Chafee Regarding the Results of the Primary

Governor Chafee tonight said: “This primary season was particularly hard fought, and I want to congratulate the candidates for their hard work on the campaign trail. I am supporting all of the Democratic Party’s nominees, and regardless of party affiliation, I look forward to working with the new General Officers on their transition following the November election. I want to ensure that our State continues moving in the right direction by investing in education, infrastructure and workforce development, as well as ensuring the health of our cities and towns – the basic building blocks of a strong economy.”

Statement from Governor Chafee Relating to the Passing of Legendary Vermont Senator James Jeffords

Governor Lincoln D. Chafee today said: “On Behalf of the State of Rhode Island, I join the nation, along with Vermont, in mourning the loss of Jim Jeffords. Jim Jeffords made history in the spring of 2001 with his bold move out of the Republication Party. He will be remembered for sending a message to the rest of the country that he was not going to put partisan politics before his work in Washington, D.C. Throughout his distinguished and lengthy career, Jim cared deeply about our environment. He displayed fiscal common sense, and he developed government programs that build a strong middle class. He was also one of the 23 senators to have the courage and foresight to vote against the Iraq War Resolution. He was revered by all who knew him.”

Statement from Governor Chafee Regarding Unaccompanied Children in the Southwest

Governor Lincoln D. Chafee today said: “The State of Rhode Island has not been officially contacted by any federal entity regarding either services or sheltering unaccompanied children who have crossed the U.S. border in the Southwest. If and when there is a request from the federal government, I will share it publicly.”

Statement Regarding the Budget Announcement by the House Committee on Finance

Governor Lincoln D. Chafee said tonight: “My administration and I will evaluate the budget presented to the House Committee on Finance. I understand that the budgeting process is an exercise in compromise, collaboration and cooperation, and I hope that this budget will move Rhode Island forward.

"Since my first budget, I have proposed and been a proponent of lowering the corporate tax from 9 percent to 7 percent. I applaud the General Assembly for taking this important step to making us more competitive.

"I have been adamant that a reasonable alternative to tolling be reached. The reality is that road and bridge infrastructure needs a consistent funding stream and the money must come from somewhere. Nobody wants to see another bridge completely replaced – at great cost to taxpayers – because of a lack of maintenance. Good transportation infrastructure is closely aligned with building a strong economy. I look forward to examining the plan put forth by the House Committee on Finance.”

Statement from the Office of Governor Chafee Regarding Rhode Island Housing’s Agreement to Reinstate Gayle Corrigan as Deputy Director

Governor Lincoln D. Chafee said today: “I support this resolution, and I am glad the matter has been settled. I think highly of Gayle Corrigan. Her success in Central Falls speaks for itself, and I know that having all of the parties working together toward Rhode Island Housing’s mission is what is best.

“I want to thank Board Chair Andrew Cortes, Executive Director Richard Godfrey and the leadership at Rhode Island Housing for getting this done. From the outset I have raised concerns about the cost of ongoing litigation and the potential for this to distract from the agency’s important work. This will bring closure to a difficult chapter.”

Statement: Governor Chafee Blasts Advocates of Default on 38 Studios Bonds

Governor Chafee today defended the necessity of paying the 38 Studios debt as essential for Rhode Island to continue its recovery from the recession and recoup taxpayers’ money through legal efforts.

Governor Chafee said, “The candidates who can’t understand these two obvious truths are unfit to be Governor. The consequences of default would place Rhode Island as one of the lowest state bond ratings in the nation, and the industry would reduce Rhode Island to ‘junk bond’ status. We have been told in no uncertain terms that the reaction to not paying our debt obligations will be severe and have an adverse impact on Rhode Island. In addition, failure to honor our obligations could have harmful effects on the pending lawsuit.”

Governor Chafee added, “The push by Allan Fung and Ken Block to default is disheartening. We hear from them populist rhetoric that lacks any empirical research or credible support. Common sense dictates that you pay your debts however distasteful.

“From the beginning, I have been the most vocal and strongest opponent of the 38 Studios deal. In the summer of 2010, I was denied access to a Rhode Island Economic Development Corporation (now called Commerce RI) meeting where I hoped to speak and state the case on behalf of Rhode Islanders on why this was a bad investment.”

Governor Chafee also pointed out that default may undo all our hard work to recover from 2008’s major economic downturn. With the latest employment metrics showing an increase in the number of employed Rhode Island residents and the largest one month drop of unemployed in 30 years, Rhode Island’s current approach to economic development is paying dividends. Through investments in education, infrastructure and workforce development, we are building our state’s economy and reputation in the right manner and creating a solid foundation for years and decades to come.


“As we look to continue this positive momentum, candidates for Governor should be espousing positions that take into account our state’s long-term future, not the instant gratification of appealing to primary voters.” 

Statement from the Office of Governor Lincoln D. Chafee Regarding 195 Commission

Governor Chafee said today:  “In regards to the development of the 195 land, we are striving to strike the proper balance between the public’s right to know and the success of a project that is vital to Rhode Island. It is our job to create an environment where we can obtain bids from the best companies to ensure the delivery of successful, quality ventures.

            “I fully support the work of the 195 Commission, a board of responsible, civic-minded professionals. They are attempting to do the right thing for the future of our State."

Statement from the Office of Governor Lincoln D. Chafee

Governor Chafee said: “I was saddened to learn of the passing of Nuala Pell, the devoted wife of Senator Claiborne Pell, a loving mother, grandmother and great grandmother and well-respected advocate for education, women’s health issues and the arts. 

Nuala Pell was ever present on the political campaign trail and her opinion was valued by many. Her passion for scholarship and the humanities led to a decades-long advocacy of public service and philanthropy.

My sincere condolences to the Pell Family as we celebrate the many accomplishments of this remarkably talented and caring woman who has left her mark throughout our state.”

GOVERNOR, TREASURER ISSUE JOINT STATEMENT REGARDING PENSION LAWSUIT

Governor Lincoln D. Chafee and General Treasurer Gina M. Raimondo today released the following statement:

“More than one year ago, Superior Court Judge Sarah Taft-Carter ordered the parties involved in numerous pension lawsuits from 2009, 2010 and 2011 into mediation. With the help of the Federal Mediation and Conciliation Service, the parties to this litigation worked collaboratively on a proposed settlement.

The proposal announced on February 14 retained the structural elements of the Rhode Island Retirement Security Act of 2011, and maintained 95 percent of the necessary savings for taxpayers. It also offered immediate benefits, certainty and predictability for our public employees and retirees. We believe this proposal was fair for our public employees, retirees, taxpayers and cities and towns. It was also well-received by the various rating agencies.

We would like to commend and thank the plaintiff union leaders that worked closely with us over the last year to reach this settlement. And we would like to thank the large majority of their members who were willing to go forward with us to avoid lengthy and costly litigation.

Due to a small group of union members the settlement agreement has failed and the mediation process has ended. We find this disappointing and frustrating.

While we are disappointed this settlement was not ultimately able to come to fruition, we continue to believe that the pension changes enacted by our General Assembly are constitutional, the State has strong legal arguments to support its positions and will begin to prepare for litigation.”


Background on RIRSA:

The Rhode Island Retirement Security Act was enacted in November of 2011 by a vote of 52 to 15 in House of Representatives and by a vote of 36 to 2 in the Senate and moves the state forward by:

- Allowing us to honestly tell our public employees that their retirement is secure
- Immediately reducing the unfunded liability by about $3 billion
- Saving Rhode Island taxpayers; $4 billion over the next two decades
- Saving cities and towns $1 billion over the next two decades
- Ensuring that future pension costs are predictable and sustainable

Statement from the Office of Governor Lincoln D. Chafee Regarding the New Speaker and Leadership for the House of Representatives

"After the vote, I offered my congratulations to Speaker Nicholas A. Mattiello, and told him that I look forward to working with him, the new Majority Leader, the leadership team as well as the General Assembly on initiatives and issues that are important to Rhode Islanders. I commend the Rhode Island House of Representatives for ensuring that government continues to move forward and remains focused on key issues. By persisting in our efforts to support education and workforce development, build infrastructure, help cities and towns, and lower energy costs, together we have developed the necessary momentum for Rhode Island’s recovery."

Governor, Treasurer, Plaintiffs Issue Joint Statement Regarding Pension Lawsuit

Governor Lincoln D. Chafee, General Treasurer Gina M. Raimondo and plaintiffs challenging changes to Rhode Island’s state-administered pension system today issued the following joint statement:

“More than one year ago, Superior Court Judge Sarah Taft-Carter ordered the parties involved in numerous pension lawsuits into mediation. With the help of the Federal Mediation and Conciliation Service, the parties to this litigation have worked collaboratively on a proposed resolution.

“The settlement agreement marks an important first step forward, and the beginning of a process that will benefit all Rhode Islanders. It is a proposal that we all support and jointly offer to the General Assembly, members of the retirement system, and to the public.

“Government cannot work without committed and dedicated public servants. Whether they serve our state by keeping us safe, teaching our children, repairing our roads, or in so many of the unheralded roles that keep our government running, they command our respect, and deserve a dignified and secure retirement. At the same time, too many of our cities and towns continue to face financial challenges. The proposal we jointly offer provides certainty and predictability for our public servants and municipalities to appropriately plan for the future.

“This proposal should not be perceived as a victory by one side over another, rather it is a positive first step forward providing for the continued stability and predictability of the retirement system for decades to come. Crucially, this proposal does more than end the risks associated with a costly and protracted litigation. This settlement proposal would resolve six pending lawsuits contesting changes made in 2009, 2010 and 2011. It also demonstrates that our small state can lead the rest of the nation and come together to solve big problems.

“We believe this proposal is fair for our public employees, retirees, taxpayers and cities and towns. We look forward to working together with all concerned as we begin this process.

“We would like to thank the Court and the Federal Mediation and Conciliation Service for all their efforts in helping the parties to achieve this result.”

Statement from Director Licht of the Department of Administration Regarding the Relocation of the Providence Office of Probation and Parole

Richard A. Licht, Director of the Department of Administration, said today, “Out of respect for the concerns raised by the downtown business community, the Department of Administration (DOA) has decided to again seek proposals for space for the Providence Office of Probation and Parole. The DOA previously had conducted an open competitive bid process during the summer of 2013 and only received one response from the Urban League, which is the existing landlord. Recently, the Urban League has entered into an agreement to sell its property, and the facility is no longer available. Due to the lack of bids, the DOA and the Department of Corrections proposed to relocate these offices in an existing building that houses other State of Rhode Island functions.

“I want to mention the misconception that the rent was ‘tripling.’ The Fountain Street location would have provided much needed additional office space, and the rent was only $707 per year more than the Urban League Proposal. Additionally, the Division of Probation and Parole has nine other offices in the State of Rhode Island, two of which are located in downtown Providence. The police in Pawtucket, Providence, Cranston and Woonsocket have indicated that probation and parole offices do not pose any concerns for public safety.

“In addition, Director Wall and I will meet with Providence business leaders and elected officials to discuss this matter and enlist their support in locating this essential core function of government to a viable location."

New England Governors Sign Energy Statement Committing Region to Cooperation on Infrastructure

NEW ENGLAND GOVERNORS’ COMMITMENT TO REGIONAL COOPERATION ON
ENERGY INFRASTRUCTURE ISSUES

Securing the future of the New England economy and environment requires strategic investments in our region’s energy resources and infrastructure. These investments will provide affordable, clean, and reliable energy to power our homes and businesses; make our region more competitive by reducing energy costs; attract more investment to the region; and protect our quality of life and environment.

As the region’s electric and natural gas systems have become increasingly interdependent, ensuring that we are efficiently using existing resources and securing additional clean energy supplies will be critical to New England’s economic future. To ensure a reliable, affordable and diverse energy system, we need investments in additional energy efficiency, renewable generation, natural gas pipelines, and electric transmission. These investments will also serve to balance intermittent generation, reduce peak demand, and displace some of the least efficient and most polluting fossil fuel generation, enabling the states to meet clean energy and greenhouse gas reduction goals while improving the economic competitiveness of our region.

New England ratepayers can benefit if the states collaborate to advance our common goals. The Governors therefore commit to continue to work together, in coordination with ISO-New England and through the New England States Committee on Electricity (NESCOE), to advance a regional energy infrastructure initiative that diversifies our energy supply portfolio while ensuring that the benefits and costs of transmission and pipeline investments are shared appropriately among the New England States. At the same time, we must respect individual state perspectives, particularly those of host states, as well as the natural resources, environment, and economy of the States, and ensure that the citizens and other stakeholders of our region, including NEPOOL, are involved in the process. The Governors are committed to achieving consensus as we move forward, consistent with laws and policies across the region.

The New England States believe that investments in local renewable generation, combined heat and power, and renewable and competitively-priced heating for buildings will support local markets and result in additional cost savings, new jobs and economic opportunities, and environmental gains. The New England States further believe that these investments must be advanced in a coordinated approach in order to maximize ratepayer savings and system integrity. We will continue to advocate at ISO-New England, NEPOOL, and elsewhere for greater integration and utilization of renewable generation; development of new natural gas pipeline infrastructure; maximizing the use of existing transmission infrastructure; investment, where appropriate, in new transmission infrastructure; and continuation of the inclusion of energy efficiency – and the addition of distributed generation – in load forecasting and transmission planning.
New England Governors’ Commitment to Regional Cooperation on Energy Infrastructure Issues

We have directed our appropriate staff to work together with NESCOE to ensure that we are
taking all necessary steps to meet our common needs and goals. Our commitment to work
together on energy infrastructure issues will be informed by recent regional energy infrastructure
studies conducted by the States, ISO-New England, and other regional organizations. We
believe that by working together we can expand economic development, promote job growth,
improve the competitiveness of our industries, enhance system reliability, and protect and
increase the quality of life of our citizens. Expanding our existing efforts will ensure that we are
on a course toward a transformed energy, environment, and economic future for our region that
offers a model for the nation.

Signed,