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."
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
Governor Lincoln D. Chafee today said: “We mourn the loss of former United States Congressman Fernand J. St Germain, who left a lasting impression on Rhode Island. He was a life-long Democrat who fiercely fought for the rights of the working and middle classes. From 1961 to 1989, he served Rhode Island’s First Congressional District in the U.S. Congress, and one of his accomplishments was a stint as the Chairman of the Committee on Banking, Finance, and Urban Affairs. Before representing Rhode Island in Washington, he was a valuable member of Rhode Island’s General Assembly where he became a respected and revered politician. On behalf of the State of Rhode Island, I send condolences to his family.”
Governor Lincoln D. Chafee said today: “Rhode Island State Police officials have briefed me and continue to keep me apprised of the law enforcement agency’s active investigation into the contract for the concessions at three Rhode Island State Beaches.”
According to Governor Chafee’s Director of Communications Faye Zuckerman, state law provides in the Access to Public Records Act (APRA) a clear mandate that state agencies and the Office of the Governor do not release documents or information that might potentially adversely impact an ongoing investigation. The State Police determines what information can and cannot be released, and no state agency or the Governor’s Office will take action during any inquiries.
Governor Lincoln D. Chafee said:“During a conference call between the federal government and the country’s governors yesterday, officials for the United States Departments of Homeland Security and Health and Human Services reported that the number of unaccompanied children coming across the border has tapered off. The need for large facilities has dissipated, and the officials added that they will notify the governors if and when an assessment of possible settings is required in the future. To date, no federal entity has reached out to the State of Rhode Island regarding housing the unaccompanied children. The Department of Health and Human Services said that most of the children have found shelter with relatives or family friends.”
With the latest employment metrics showing a decline in the unemployment rate for five consecutive months and an increase in the number of employed Rhode Island residents and labor force for four consecutive months, Governor Lincoln D. Chafee said today, “The latest numbers are the best we have seen. When I took office in January of 2011, the unemployment rate was 11.4 percent and now it’s 8.3 percent. Rhode Island’s approach to economic development continues to pay dividends. Through investments in education, infrastructure and workforce development, we are building our state’s economy in the right manner and creating a solid foundation for the future.”
Governor Chafee is heartened that Rhode Island’s seasonally adjusted unemployment rate continues to drop precipitously and is at its lowest level since August 2008. Among the highlights from the latest metrics:
- The April drop of 2,300 in the number of unemployed marks the ninth consecutive month the number has fallen and is the largest one-month decrease on record.
- The number of employed Rhode Island residents increased by 3,600 over the month, the largest one-month increase on record.
- Rhode Island-based jobs were up 4,100 during the first quarter of 2014 the largest first quarter job gain since 1992. In April, another 700 jobs were added.
- Since the recession ended, we have regained 50.5 percent, or 20,100, of the total jobs lost during the recession.
- Rhode Island has also regained 59.2 percent, or 21,500, of the private sector jobs lost during that same time.
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.”
"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 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.”
