Between the state’s 2014 and 2017 fiscal years, Rhode Island allocated $18-million through its Medicaid-funded Rite Care and Rite Share medical assistance programs to employees working at companies that simultaneously received more than $114-million in state subsidies designed to spur job growth and workforce development.
CVS Health topped the list for total Rite Care and Rite Share expenses, as well as total tax incentives received. According to Rhode Island Unified Economic Development Reports, CVS employees and their dependents utilized $5.7-million in medical assistance during the four-year period in which the Woonsocket-based company also received $63-million in tax benefits.
Since 2008, CVS has received more state subsidies than any other business: $175-million of the nearly $350-million disclosed in the Division of Taxation’s annual reports on tax credits and incentives.
The second and third highest totals for Medicaid-funded benefits were at jewelry maker Tiffany & Company, and submarine builder Electric Boat, with employees and their dependents receiving $4.5-million and $3-million in government-funded health insurance benefits, respectively. Continue reading In Four Years, Taxpayers Spent $18-Million On Medicaid Assistance For Workers at Rhode Island Companies Receiving Millions in Economic Development Tax ‘Incentives’
[NOTE: An audio version of this story aired on Rhode Island Public Radio.]
In 2013, Rhode Island lawmakers directed the state’s revenue department to analyze tax incentives created to spur economic development. The idea was to assess whether those incentives were actually working.
Linda Katz, co-founder and policy director of the non-profit Economic Progress Institute, was one of the people who supported the law.
“It’s the bang for the buck,” said Katz, whose organization advocates for policies that benefit lower-income Rhode Islanders. “We want to know if we’re giving away money in order to either attract a company here, keep a company here, try to ignite some activity, that we know that, at the end of getting that tax break, we’re actually better off than we were before the company got here.”
But there’s one key problem: the state has yet to produce a single evaluation required under the law. The first report was due last June. Continue reading Despite State Law, Rhode Island Has Never Evaluated Its Business Tax Incentives
[NOTE: This story is part of an ongoing reporting project being developed for Rhode Island Public Radio.]
Rhode Island appeared to be headed in the right direction in 2013 when it signed into law the Economic Development Tax Incentives Evaluation Act, officially requiring regular analysis of its many “business development” tax breaks to corporations.
But, more than four years on from its enactment, the Evaluation Act has yet to amount to much more than a symbolic victory for the advocates for government and corporate accountability who helped push it through.
Continue reading Rhode Island is Still Not Complying With Its Own Law on Evaluating Tax Incentives