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 Drug Overdose Deaths

Governor Chafee said today: “I am greatly concerned and saddened by this epidemic of drug overdose deaths that is happening in Rhode Island and around the country. I send my condolences to all the families and communities of those who have lost loved ones. The recent spike in deaths since the beginning of the year has been especially troubling.

“I see hope and progress coming from our families and communities, working with health and behavioral officials, law enforcement officials and faith leaders throughout the entire state to address both the response to the health issue and also the cause of the problem.

“Specifically, this coalition of health, treatment and law enforcement has:

Brought attention to the issue and increased general public awareness of drug overdose as a preventable public health problem;
Sounded the alarm to users and the public;
Strengthened statewide overdose surveillance mechanisms;
Increased the usage and effectiveness of the Prescription Monitoring Program;
Increased access to naloxone training and distribution programs;
Increased access to substance abuse treatment; and
Convened a statewide group of stakeholders to collaboratively address the epidemic.

“As we move forward as Rhode Islanders, let us mourn the victims, and work with their families to stop these needless, preventable deaths.”

Statement from Governor Chafee on Signing House Bill 7050 and Senate Bill 2008

Governor Lincoln D. Chafee said: “I wish to thank members of the General Assembly for their swift passage of this bill. I am grateful for their assistance, as this legislation will enable us to pursue our legal options to the best of our ability. The Governor’s Joint Tortfeasor Bill is geared toward facilitating a settlement of claims arising out of 38 Studios.In general, this kind of legislation addresses legal cases where there are multiple defendants. Similar measures were passed to deal with resolution of the Station Fire lawsuits, as well as claims made by DEPCO arising out of the RISDIC scandal. The statute is also consistent with the way the federal government handles the settlement of toxic tort cases.”

Statement from Governor Chafee and R.I. Director of Health Regarding CVS/Caremark’s Decision to Halt Tobacco Sales

Congratulations to CVS/Caremark for the courageous move to stop selling tobacco products in stores nationwide.

Governor Lincoln D. Chafee said, “This must have been a difficult decision for the corporation and the board to weigh the benefits of making the conscientious choice versus the possibility of jeopardizing the bottom line. I applaud CVS/Caremark for taking the right fork in the road.”

Director of Health Michael Fine, M.D., said, "In public health we know that the reduction of access to tobacco is the best way to reduce smoking. This may be the biggest advance in smoking cessation since the tobacco settlement in 1998, and we should be proud that a Rhode Island company is leading the way. The Department of Health calls on all Rhode Island retailers to follow this momentous effort by CVS/Caremark and put their customers’ health first.”

Governor Chafee Orders U.S. and State Flags to be Flown at Half-Staff in Remembrance for former South African President and Anti-Apartheid Leader Nelson Mandela

President Obama directs flags be lowered to half-staff immediately
 and until Sunset, Monday, December 9, 2013

Rhode Island joins the world in mourning the loss of a historic leader who spent his life fighting for freedom, social justice, and racial equality. He was a global icon of hope, sacrifice and understanding. His wisdom and foresight has been and will be an inspiration for generations to come. 

In his own words, Nelson Mandela said, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.” That is how Nelson Mandela lived his life and led his nation. 

Accordingly, in remembrance for Nelson Mandela, President Obama has directed that flags be lowered to half-staff beginning immediately and until sunset Monday, December 9, 2013. Governor Lincoln D. Chafee has directed that both the Rhode Island and U.S. flags on all public buildings, grounds, and naval vessels across the State be flown at half-staff during the day.

Please see the President’s proclamation, here.

Statement from Governor Lincoln D. Chafee Regarding RISD’s President John Maeda Accepting a Position in the Silicon Valley

The Rhode Island School of Design’s (RISD) President John Maeda has accepted a position as Design Partner at Kleiner Perkins Caufield & Byers in California. He will be leaving his position at the end of the fall semester.

The Presidents of all of Rhode Island’s stellar colleges and universities play a major role in shaping the State’s future. President Maeda certainly did that in a positive way during his six years here.

While at the helm of RISD, applications to the school and financial aid to students increased, which allowed the design school to boast of more diverse classes. He brought to our State an unyielding vision that “art and design transform our economy and bring meaning to our lives.” As the leader of the preeminent art and design institution of higher education, he was able to continue and enhance his forward-thinking work at how the intersection of design, technology, and business can benefit the human experience. He has led the charge to turn STEM (Science, Technology, Engineering and Math) into STEAM by adding an A for Art.

Under his watch, in late 2012, Business Insider named RISD the No. 1 design school in the world.  John Maeda leaves the school in good standing and a better place. Through his hard work, he has made RISD a more innovative and creative college. I personally wish him the very best in his new pursuit on the West Coast.

Statement from the Office of Governor Lincoln D. Chafee Regarding the Repercussions of Typhoon Haiyan (Yolanda) in the Philippines

In the aftermath of the powerful typhoon that devastated the Philippines, our thoughts and prayers are with the people of the Pacific island chain specifically in the hard hit Leyte region. Rhode Islanders have always come forward with compassion and generosity for those in need, especially following disasters not only here in Rhode Island but in other parts of the world. I am heartened by the numerous reports of our state's residents immediately seeking out opportunities to donate or volunteer to the relief effort, as well as assisting their Filipino-American neighbors and friends who are worried about loved ones back home. I urge you to continue your efforts and be mindful to donate to a reputable aid organization that you trust to deliver badly needed provisions and support to the displaced millions in the disaster zone.

On behalf of the State of Rhode Island, we stand ready to offer our support in any way possible as the people of the Philippines begin what will be a long and arduous recovery.

Statement from the Office of Governor Lincoln D. Chafee Regarding Completion of General Obligation Bond Offering for 2013

The state has completed its general obligation bond offering for 2013 and has sold $53.15 million of the bonds for various projects approved by Rhode Island voters in previous elections. The bond projects include the new Veterans Home in Bristol, affordable housing, building improvements at Rhode Island College, recreational facilities, open space acquisition, and clean water infrastructure. 

The issue was sold to a syndicate led by Citi and JP Morgan.  The following firms also served as co-managing underwriters: Bank of America Merrill Lynch, Janney Montgomery Scott, Oppenheimer, Raymond James and Roosevelt and Cross.

All three rating agencies affirmed the state’s ratings in connection with the sale: Aa2 from Moody’s, AA from Standard and Poor’s and AA from Fitch Ratings. The state’s strong fiscal management, positive trends in liquidity and a fully funded budget reserve fund were noted as strengths by the rating agencies in the reports released in connection with the bond issue.