Archive 2009
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Push on to drop cap on film tax credit (Providence Business News, 11.30.09)
For a state to break even, studies have shown that film productions must stimulate more than three times the amount of each credit in additional economic activity – “an unheard-of” factor in state economics, [Kate Brewster]said. So, for instance, a film that received a $1 million tax credit would have to generate more than $3 million in new business for the state to avoid a loss.
Tax Collections Plunge in RI (Providence Journal, 11.5.09)
"Russell Dannecker, former state Senate fiscal advisor, who attended Thursday’s meeting, said that, overall, state tax revenue figures are “down considerably” compared with a year ago...As a result, 'You’re obviously going to have more pressure on [the state] budget. There’ll be more pressure to cut. There’ll be more pressure to raise taxes,' he said."
Op-Ed: Federal stimulus sending big benefits to R.I. (by Kate Brewster, Providence Journal 11.3.09)
“It could have been worse” might not be an inspirational slogan, but it aptly describes the situation in Rhode Island and other states thanks to unprecedented federal efforts to fight back against one of the worst recessions in memory.
Rhode Island can’t see if its tax breaks are doing their job (Providence Journal 10.20.09)
Kate Brewster, the institute’s executive director, said that the accountability report is especially important now, as the state struggles with another budget deficit. “Reviewing [tax credits and other such incentives] is just as important as reviewing direct spending, and this is a vital piece of the state budget puzzle,” she said. “Without information about job retention or creation, it is impossible to know whether the state is getting a good return on its investment,” Brewster said.
Letter to the Editor: Linda Katz: Shrinking R.I. coverage calls for reform (Providence Journal, 10.5.09)
The health-insurance data recently released by the Census Bureau highlights the need for comprehensive national health-care reform. Just over 11 percent of Rhode Islanders, some 123,000 residents, lacked health coverage in 2007-08 compared with 7 percent at the beginning of the decade.
Study finds poverty on the rise in South County (Westerly Sun, October 4, 2009)
“If unemployment [is not] extended… and we continue to have high unemployment, certainly those folks [will lose] their income and that will plunge them, no doubt, into the ranks of those living in poverty,” Brewster said.
Officials wary poverty data not reflective of conditions (Warwick Beacon, October 1, 2009)
Brewster sees education as the means to reducing poverty levels.“We really need to skill up workers,” she said. Brewster said there are 150,000 people in the state in need of adult basic education.
Providence county poverty rate at 14% (Providence Journal, September 30, 2009)
“For those laid-off workers who are actually eligible for unemployment insurance, the benefits have helped protect them from plummeting into poverty in this harsh economy,” said Rachel Flum, a policy analyst at The Poverty Institute.
Poverty and income inequality (RIfuture Blog, September 29, 2009)
Data by the Poverty Institute tell a different story. In their 2008 Standard of Need, they determine that it costs $52,188 for a family of four to meet basic needs in Rhode Island (housing, food, transportation, child care, medical, etc.). A single adult would need to earn $20,280 to meet basic needs. These numbers better reflect what’s necessary to “live” in Rhode Island, and are 200-250% higher than the federal poverty level.
New Census numbers show poverty steady in R.I. (ProJo 7to7 News Blog, September 29, 2009)
Study ranks R.I.’s tax climate 44th (Providence Journal 9.23.09)
“Surveys of business executives routinely rank factors such as work-force skills and highway access as more important than tax rates,” [Brewster] said. “This is not surprising, given that state and local taxes paid by businesses represent, on average, less than 3 percent of their total expenses.”
Businesses get $33 million in R.I. tax breaks (Providence Journal 9.13.09)
“The Poverty Institute is very concerned that, if we’re spending this kind of money, that we’re getting a good return on the dollar,” Russell Dannecker said. “We’d like to know that [the tax credits and other incentives] are working and can be verified.”
Tiny Rhode Island has been buffeted by a huge fiscal hurricane that’s far from over (State Legislators Magazine, 9.2.09)
“We can’t continue to cut our revenue stream at the top,” [Russell] Dannecker says, “and continue to cut programs we need for economic development. We have to have a sufficient, fair and equitable revenue stream.”
Amazon law gets support (Providence Journal 7.25.09)
Kate Brewster, executive director of The Poverty Institute...said Friday that “Amazon’s reaction to Rhode Island’s law is a good indication of how dearly it holds the unfair price advantage that it has over Main Street retailers in our state. Our hope is that other states will get on board and make it more difficult for Internet retailers to drop affiliates.”
The Pulse: Double-header, with a tennis visionary and the state’s public benefits system (WBRU FM, 7.12.09)
Linda Katz, Policy Director of The Poverty Institute, was interviewed about the ACLU food stamp suit: “Rhode Island has seen a significant decline in the number of staff at state agencies to administer these programs, and what we really need now is quality leadership from the state, along with members of the public, to figure out how we have the right number of people to deliver benefits that a large number of Rhode Islanders rely on – whether that’s for health care, for childcare assistance, or for food stamps."
Click here to listen to the full segment
America's Two-Headed Dog: Layoffs and Cuts to Social Programs (Huffington Post 7.3.09)
America is now wrestling with its own real-life Orthrus in the shape of mass layoffs and simultaneous cuts to social welfare programs. It seems like common sense that the government should increase social spending when people are losing their jobs, but Republicans and Blue Dog Democrats don't see it that way.
Only a well-to-do few file flat-tax returns in R.I. (Providence Journal 6.24.09)
Kate Brewster, executive director of The Poverty Institute, favors repealing the flat tax, saying it is “a very expensive tax policy that was enacted based on the fallacy that cutting income taxes for high-income taxpayers would attract and retain individuals capable of creating jobs.”
Reaction muted to state budget plan (Providence Journal 6.19.09)
“They’re cut beyond the bone in terms of delivering services. It’s not fair to the people who rely on those services and it’s not fair to the staff,” said Linda Katz, policy director for the Poverty Institute, based at Rhode Island College. “It could be your neighbor that needs medical coverage tomorrow, who’s going to be shocked to find out there’s a significant delay in accessing that service.”
Rhode Island's Budget: A most delicate balance (Providence Journal 6.18.09)
“I think it shows a lot of heart,” said Linda Katz, policy director for Rhode Island College’s Poverty Institute.
State boosts unemployment benefits by $18 (Providence Journal 6.17.09)
Kate Brewster, executive director of The Poverty Institute, at the Rhode Island College School of Social Work, which analyzes tax and budget policies on behalf of low-income people, said the increase will come in handy. “Every dollar is important in these harsh economic times,” she said.
Bad economy may blunt effort to ease death taxes (Providence Journal 6.8.09)
Kate Brewster...said “We don’t think any tax cuts that reduce revenues are a good idea in this difficult fiscal climate. However, we understand the desire to update the estate-tax exemption given the appreciation of assets like real estate.”
Rhode Island Business Lobby Moves to Defend Flat Tax Option (Tax Analysts, 6.4.09)
[Kate Brewster] said "Policymakers would be right to repeal what has been a very expensive tax policy that was enacted based on the fallacy that cutting income taxes for high-income taxpayers would attract and retain individuals capable of creating jobs."
The Education Exchange to Host Graduation Ceremony (Providence Business News 5.22.09)
The Graduation Ceremony, which will begin at 7:00PM, will feature Heidi Collins, Director of Public Education at The Poverty Institute, as the keynote speaker.
Hearings set on Carcieri’s budget plan (Providence Journal 5.19.09)
Carcieri’s plan “will cause the state to lose significant amounts of revenue, is unlikely to be a cost-effective strategy for growing jobs and would present significant fiscal challenges as the changes are scheduled to take effect in 2011 — the same year federal stimulus funds are set to expire,” [The Poverty Institute] said.
R.I. food stamp use ranks near bottom (Providence Business News 5.11.09)
Katz said the state’s welfare program – which used to be called the Family Independence Program but was renamed the Rhode Island Works program last year – provides $554 a month to a family of three. “As small as that is, that may be the slender thread that’s helping a family stay in their home,” she said.
Economic Decline in RI expected to Continue (Providence Journal 5.8.09)
“I think we know now about when the end may be,” Russell Dannecker, a fiscal policy analyst for Rhode Island College’s Poverty Institute, said of Rhode Island’s recession. “But I’m not sure if there’s a great deal of light at the end of the tunnel.”
States Target Cuts to Social Services (transcript from "All Things Considered" NPR 4.27.09)
Linda Katz of the Poverty Institute at Rhode Island College says 3,000 more needy families are losing cash assistance, and many of them have no job prospects in the current economy. "So we're very fearful that these are parents who will show up in the homeless shelters, which are already overwhelmed," she says. "They're people that will really swamp the social safety net in the community."
Link to audio on NPR site (click "Listen Now" to hear full segment)
Combined reporting will establish fair business taxing (Opinion column by Kate Brewster, Providence Business News 4.27.09)
If you own a small business and feel like you are competing with big businesses on a playing field that is not level, one reason could be that many of Rhode Island’s large, multistate corporations aren’t paying their fair share in taxes.
3,000 Families to be cut from welfare (Providence Journal 4.23.09)
“This is in an economy in which [welfare recipients] are competing with people with much higher skills to get the limited jobs that are out there. They will also lose the opportunity to get any assistance in finding work or training,” said Linda Katz, policy director for Rhode Island College’s Poverty Institute. “We cannot let these 3,000 families become homeless and hungry.”
Think tank: R.I. tax reporting among worst in U.S. (Providence Business News 4.9.09)
“Rhode Island faces very difficult choices to balance its budget and at the very least, policymakers and residents should know where the state’s money is going in order to prioritize and decide which sacrifices to make,” said Kate Brewster, Poverty Institute’s executive director.
Groups seek improved reports on R.I. tax-breaks (Providence Journal 4.10.09)
The Poverty Institute, a think tank at the Rhode Island College School of Social Work, said on Thursday that the state’s tax expenditure report “has long been recognized as ineffective in accurately defining how much tax exemptions and preferential rates cost the state.”
Fund for Community Progress to honor Reed, Katz at May 4 awards breakfast (Providence Business News 4.8.09)
The Fund for Community Progress has named U.S. Sen. Jack Reed and Poverty Institute co-founder Linda Katz to receive its 2009 Profile in Change Awards.They will be honored at the fund’s annual awards breakfast on May 4 at Waterplace Park, which also will celebrate the winners of the Changemakers Awards and the completion of the fund’s 2008 Campaign.
Getting Ready for the Budget Fight (RI Future 4.4.09)
As the FY 2010 budget debate gets closer the Poverty Institute is gearing up for a fight...Here are some highlights from the latest fact sheet on the Governor's proposed corporate tax elimination.
Study says Carcieri's tax plan would boost RI ranking (Tax Analyst 3.31.09 and Providence Journal 4.1.09)
So if tax rates were to go down, 'it's no surprise' that Rhode Island's ranking would rise, Brewster said. But she said that the Tax Foundation does not measure its rankings against economic activity. In other words, the group does not test its highest-ranking states to see if the tax structures in those states are generating comparably higher economic activity.
Legislators, advocates rally for ‘Cover the Uninsured Week’(Woonsocket Call 3.27.09)
“Rhode Island has the opportunity to use new federal dollars to provide Rite Care coverage to currently uninsured children,” Katz said. “These are federal funds that will continue beyond the economic stimulus, and will ensure that more children are able to access primary and preventive health care services so critical to their healthy development.”
Study suggests eliminating RI's capital gains tax break (Providence Journal, 3.20.09)
Kate Brewster, executive director of the Poverty Institute...said, “Rhode Island’s capital gains preferential tax rates deprive the state of millions of dollars in needed funds, benefit almost exclusively the very wealthiest members of our communities and fail to promote economic growth.”
Governor's Budget Sparks Criticism (Brown Daily Herald 3.17.09)
"Whenever we get into these types of (economic) situations, the budgets are always difficult," [Russell] Dannecker [Fiscal Policy Analyst of The Poverty Institute] said. "This time there was enough advanced notice of the federal aid that was coming in but it does raise issues in the long term about what to do when the money disappears."
Changing Sales Tax Could Open 'Pandora's Box' (Providence Business News 3.17.09)
"The phasing out of the corporate tax and other proposals represents a continuation of a decade of failed tax policies that cut taxes for wealthy individuals and businesses in the name of economic development", Kate Brewster, executive director of the Poverty Institute.
Unemployed could get break on RI taxes (Providence Journal 3.11.09)
No, $450 is not exactly a jackpot. But when you’re out of work, every little bit helps, said Kate Brewster, executive director of the Poverty Institute at the Rhode Island College School of Social Work, which analyzes tax and budget policies on behalf of low-income people.
House Finance Committee hears testimony on proposals to change Rhode Island's tax structure (Providence Journal 3.12.09)
The estate tax "must be preserved to maintain a progressive and balanced tax structure," she told the committee. Increasing the threshold to $3.5 million would make Rhode Island stand out among its neighbors — the Massachusetts threshold is $1 million, Connecticut’s $2 million, [Kate Brewster] said. "This proposal is unaffordable and fiscally irresponsible, especially given the lack of evidence that it will provide an incentive for people to stay or locate in the Ocean State," Brewster said.
Corporate tax would fade away by 2014 (Providence Journal 3.11.09)
"Reducing corporate income taxes without closing corporate tax loopholes is double jeopardy for small businesses in Rhode Island," [Brewster] said. Small businesses "will find themselves competing on an even more un-level playing field" than they do now, as they watch big businesses obtain tax relief, she said.
Budget includes tax cuts, uses stimulus funds to trim deficit (Providence Journal 3.11.09)
"I can’t think of a more irresponsible use of the federal stimulus funds … than to cut taxes for corporations," said Kate Brewster, executive director of Rhode Island College’s Poverty Institute.
Carcieri to unveil state budget plan today (Providence Journal 3.10.09)
"We cannot continue the failed tax policies from the last decade that cut taxes for wealthy individuals and businesses in the name of economic development," said Kate Brewster, executive director of The Poverty Institute at Rhode Island College.
Tax Policy Workgroup Recommends Cutting Taxes (RIfuture.org 3.9.09)
Panel says plan would make RI more competitive (Providence Journal 2.5.09)
Kate Brewster, executive director of The Poverty Institute, a nonpartisan think tank at the Rhode Island College School of Social Work, said there is no concrete evidence suggesting that eliminating the tax would affect job creation. “Overall, this proposal is a huge gamble of taxpayer dollars … and a gamble is not something the state can afford to take,” she said.
Governor's Panel: Lower Income Tax Rates (WJAR Channel 10 NBC 2.4.09)
“These proposals are a huge gamble of taxpayer dollars. The ante, the cost of the tax cuts is extremely high and the odds of a payout are very slim to none.” (Kate Brewster, executive director, The Poverty Institute)
RI may lack personnel to redo Medicaid (Providence Journal 2.2.09)
“It does raise concerns about the capacity to implement huge changes,” said Linda Katz, policy director of The Poverty Institute. “If you try calling in to the Department of Human Services, the workers’ mailboxes are full. We’re hearing people are having a hard time getting through to their workers already.”
Waiver may cut share of stimulus (Providence Journal 1.29.09)
“That’s the problem with having a cap at all. You can’t predict things like this,” said Linda Katz, policy director at [The] Poverty Institute. “This is what we warned of. We’re on the brink of a new administration with clearly some federal fiscal relief coming to the states. Why would we want to tie our hands at this point?”
Institute provides road map for RI's state budget (RI Catholic, 1.22.09)
"Lawmakers will need to make tough decisions in the upcoming months in order to close the budget deficit, and these decisions could affect many Rhode Islanders. Therefore, it is crucial that people become informed participants in the budget debate, and urge their legislators to take a balanced approach to solving our state's budget problems,” [executive director Kate] Brewster said.
Conference draw hundreds (Providence Journal Political Blog, 1.15.09)
"The fight to stir people's conscience begins with facts, the kind of ammunition you have been gathering this morning," [Charlie] Bakst [luncheon keynote speaker] said in prepared remarks. "It continues by speaking truth to power."
News from the Budget Conference (RIfuture.org, 1.15.09)
Pat Crowley reports on highlights from The Poverty Institute's Budget Rhode Map Conference.
Carcieri urges lawmakers to approval Medicaid overhaul (WJAR 1.9.09)
Channel 10 interviews Linda Katz after day 1 of the Global Medicaid hearings. "It’s as if we have a business partner that is willing to match dollar for dollar what we put on the table and now that business partner is going to limit what they spend on this business."
Governor wants Medicaid overhaul approved (WPRI 1.9.09)
Channel 12 interviews Linda Katz after day 1 of the Global Medicaid hearings. "We can achieve all of those changes without selling our soul in terms of capping federal dollars with existing authority that we have from the federal government."
Sides line up over governor’s bid to cap Medicaid spending (Providence Journal 1.9.09)
The Poverty Institute's policy director Linda Katz said it’s a mistake to agree to a five-year spending cap without knowing what the state’s needs could be.“No one can see into the future,” she said.
Lining up for a share of stimulus aid (Providence Business News 1.9.09)
Linda Katz, policy director of The Poverty Institute located at Rhode Island College, said the federal government probably would increase the share of the Medicaid budget that it pays for, with the potential to save the state hundreds of millions of dollars over the next year or two.
Preview: Global Medicaid Waiver (WRNI 1.9.09)
WRNI's health care reporter Megan Hall speaks with Linda Katz, and sorts through what's known and not known about the global Medicaid waiver, as touted by Governor Carcieri in his address to the state Wednesday night.
Protect the shrinking safety net (Op-ed by Kate Brewster, appeared in Narragansett Times, South County Independent and Kent County Daily News)
"We can’t leave any member of our community behind. In these tough economic times, let’s make it a priority to protect the work supports that keep low-wage workers adults working, their children safe and healthy, and make our economy strong."
10 News Conference with Jim Taricani (WJAR Channel 10 1.4.09)
The Poverty Institute’s Kate Brewster and Linda Katz speak with Jim Taricani about the Medicaid Global Waiver, the Rhode Island Standard of Need report, and the upcoming legislative session.
The Tax Mire (Rhode Island Monthly 1.09)
The Poverty Institute’s Russell Dannecker, who attended the meetings as a member of the public, says the discussions have been too narrowly focused...“There are so many services needed for good economic advantage: good roads, skilled workers, schools, healthcare, affordable housing. How do you economically develop strictly by making the tax structure more competitive?”
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