Too much to hope for

Posted 6/4/15

Indicators suggest Rhode Island’s economy is finally pulling out of its prolonged slump, although it’s been so long that we dare not say brighter days are here.

So, without any definitive …

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Too much to hope for

Posted

Indicators suggest Rhode Island’s economy is finally pulling out of its prolonged slump, although it’s been so long that we dare not say brighter days are here.

So, without any definitive declaration of what it all means, here are a few of the positive signs we’ve seen in recent months – along with some revealing comments to suggest even optimists are doubtful.

The state’s unemployment rate, which put Rhode Island at the bottom of the heap at 13 percent in 2009, has improved to the point where the numbers are better than some other states and at levels close to what they were before the Great Recession. Some say it’s all because many people have given up looking for a job.

Then there are revenue projections showing the state will collect about $100 million more in the upcoming fiscal year and an additional $50 million in the year to follow. This is welcome news to the governor and legislators, who were already wringing their hands over bigger deficits and how to balance the budget. Yet the governor’s focus on the economy and jobs hasn’t changed, which is a bit of a broken record but, as she has pointed out, is going to take time to happen. There’s some movement. She gave up on the so-called Taylor Swift tax, so rich people with second homes valued at more than $1 million won’t be paying premiums to be in Rhode Island.

On a local level, we’re seeing several single-home construction projects that will add about 150 units on the tax rolls. This is the first significant home construction in years, although we’re reminded it is just a dent in all the houses lost to the airport.

And speaking of the airport, Rhode Island Airport Corporation President and CEO Kelly Fredericks predicted this week that the May traffic counts should show an improvement over last May, and with the introduction of international flights to Cabo Verde and Germany this month he’s hopeful of continued upward trends in June and the months to follow. Yet even Fredericks is cautious, a sign he’s starting to think like a Rhode Islander. He says the problem isn’t the demand but capacity. One would think the airlines would see an opportunity and increase service, but we guess they don’t want to make money.

And then there are the numbers for hotels and meals and beverages. They’ve been going up, too. Hotel occupancy rates are up across the state, as are meal and beverage tax receipts – even in March, when it looked like winter would never end. What is going on?

We got some interesting answers, including that people were so beaten up by the snow and cold that they took “stay-cations” rather than vacations to get out of the house.

So, there are a few indicators, although we dare not risk any conclusion.

You know it’s June, but it could always snow.

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