Issues

Economy of Rhode Island
There are three steps that need to be addressed in order to move Rhode Island forward: 

1. The state must control government spending and be more efficient. As Governor I will be a visible and vital force at all the departments and agencies of the state.  I did this as Mayor and believe it is essential for a leader of any organization to hear first hand from the people who are on the front lines. I believe in hands on management, and I believe our state needs that kind of leadership, and needs it now.
2. Protect the property taxpayer. The insidious property tax dampens exactly what we want to encourage - good schools, home ownership and business growth.  I will be a partner with our mayors and town managers as we work together with the General Assembly, to repeal many of the costly state mandates on cities and towns.  We cannot reduce state aid to our local communities without reforming these mandates.  We need a new partnership between state government and cities and towns in Rhode Island.  As a former councilman and mayor I understand how to make that new partnership work.
   
3. Create new revenue through increased sales from economic growth, and not raise taxes and fees.  We have to honestly confront the immediate gap between the revenue we take in as a state government, and what we need to spend to support the services we provide, particularly our schools and state colleges. First I will oppose any changes to our taxes without first reforming our spending, particularly the mandates. However, the path we are on today has led us to our current budget crisis and we need new leadership and new ideas.  One idea that may help move Rhode Island forward is studying the broad list of sales tax exemptions that the state currently has.  There are a number of items that are currently exempt from the sales tax and the total dollar amount of these exempt items is $9 billion a year.  These exemptions include everyday items such as food, clothing, over the counter drugs, even newspapers and magazines. We have to make choices if we are going to be the master of our economic destiny in this state.  Rather than forcing our property taxes to rise across Rhode Island, we should carefully examine a two-tier sales tax. Other states have this system and it is working. Illinois has a 6.25% sales tax but a separate 1% tax on food and over the counter drugs. Tennessee has a 7% sales tax but a 5.5% tax on groceries. Working together, we can find the right formula for Rhode Island, one that provides the revenue we need to spare property taxpayers an ever-increasing burden, while taking into account the strain that families already feel from taxes. I want to again point out that I will oppose any increases to our taxes without first reforming our spending, particularly the costly, and unfunded mandates on cities and towns. After we work to address the mandates, and cut government spending, then I suggest we review the idea of a two-tier sales tax if needed to close the budget gap. I suggested a 1% tax on currently exempt items. Therefore if a person spends $50 on food or clothing the tax would be fifty cents.  If a person spends $100 the tax would be one dollar. Something needs to be done to address the budget gap and this is just one idea I feel we should carefully examine. Currently all exempt items total $8,936,785,714 in untaxed revenue. If we were to tax these items at 1% the state would receive an additional $89,376,857.  This money plus reforming the mandates on cities and towns and continuing to cut government spending could help us be the master of our economic destiny in this state. To view the full list of exempt items please go to the bottom of this page and click continue reading.    

Education
As Governor, I will make education a centerpiece of our economic strategy, so that we can train our children to succeed in an increasingly competitive global economy. It is the role of government to provide a first class public education, and we must all work together to ensure that Rhode Island's children have the resources necessary to thrive in primary, secondary, and post-secondary education.    

Rhode Island needs a state education formula that ensures quality, predictability and fairness to cities and towns, school districts, taxpayers and students.  Rhode Island's elementary and secondary education systems are primarily funded through property taxes, therefore local cities and towns must be afforded the opportunity to weigh in on public education topics when policies are being considered.  Realistic revenue estimates are the key to any state education formula.  In the past, funding for schools and the state budget as a whole, were based on unrealistic revenue estimates, which created unfunded mandates for the local community.  Any new education formula must provide predictability. Districts will then have a true understanding of how much state aid they can expect when crafting their own individual budgets.

Governor Rell of Connecticut has proposed a merger of her state's vo-tech high school and community college systems. This Middle College System is an innovative way for the state to be intimately involved in creating a skilled workforce.  I like this idea and will follow the progress across our border.

We also need to make higher education available to all citizens of Rhode Island.  Skyrocketing tuition and fees at our public colleges has an adverse effect on our State.  The way out of poverty is education, therefore we must work to ensure that the State's poor and middle-class families have access to our higher education institutions.


Environment
During my time as Mayor and as a United States Senator I worked for environmental protections that encourage economic development and alternative energy solutions because these assets can transform our economy into one that can sustain our prosperity and quality of life for future generations.

As a United States Senator I authored one of the most important environmental bills in a generation, the Brownfields Act.  This bill has enabled thousands of older properties to be returned to the tax rolls or converted to green space here in Rhode Island and across the United States. A local example of the impact this legislation had can be seen at Johnson and Wales, where a grant was provided to redevelop a contaminated site into student housing.  Redeveloping these "Brownfield" sites continues to provide positive effects on the environment, while also offering new opportunities for economic growth by creating a path to productive use.

We must all work together to produce clean, renewable and alternative energy.  Use of renewable energy will reduce some of the damage to our environment that has been occurring for decades.  A combination of focus on renewable energy, recycling and re-connecting businesses with sustainability will not only benefit the environment but the economy as well. 

I have a record that demonstrates independence and leadership on environmental issues ranging from mercury pollution, fuel emissions, greenhouse gases, global warming and protecting special regions and wildlife. Examples of legislation I supported include urging the EPA to support stronger mercury regulations, voting to reduce oil usage by 40% by 2025, instead of the originally proposed 5% reduction, supporting immediate reductions in greenhouse gases, and fighting to protect the Arctic National Wildlife Refuge.

Our nation's energy crisis has been building for over thirty years; therefore we must acknowledge that there is no single policy option.  We must continue to address our environmental issues so that future generations of Rhode Islanders can enjoy the splendor of the Ocean State.

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Lincoln Chafee has forged a path of independence and he is now prepared, with your support, to bring his unquestioned integrity, proven record of working together for the common good, and ability to represent our state at the highest levels of business and government to the Governor's Office.