In the wake of Governor Donald L. Carcieri’s last State of the State, everyone seemed to agree on one major point: that state government needs to do more for small businesses.

Interviews with state and local leaders, who were looking for specific details on how to make that goal a reality, were left wanting more.

Carcieri’s touched on many of the major hallmarks of his seven years in office—low taxes, an easier regulatory environment for businesses and structural changes to the way government does business, thus making it easier for entrepreneurs.

Although they did not agree with Carcieri’s position on municipal finance, Mayors Scott Avedisian and Daniel McKee of Cumberland agreed with the governor’s statements on small businesses fueling Rhode Island’s economy.

Avedisian said Carcieri was a “good cheerleader” for the state in his speech, and that he thought he did an admirable job of “boosting morale.”

“The business growth I see is not from major corporations. It’s small businesses that are really driving the economy,” said Avedisian. “Access to capital is incredibly important to the success of small business.”

Mckee went further.

“I think that the small business is probably the most underserved community in the country,” he said.

“Anything that helps small business gain access to capital is a major step to economic recovery.”

State Treasurer Frank Caprio agreed. Caprio, who has committed to run for Governor this year, issued a statement through his spokesman Margie O’Brien with respect to the speech calling for help for small businesses.

"Our state needs to work quickly to lend small businesses the capital and help they need to create jobs, a message the governor carried in his speech, and one which the treasurer hopes he will execute."

Attorney General Patrick Lynch, Caprio’s Democratic opponent in the race for Governor, also issued a statement, which like some of the local legislators, took issue with the speech’s lack of detail but conceptually agreed with the idea of helping small businesses.

“I look forward to seeing the specifics of the governor’s budget and his proposed small business tax cuts,” said Lynch. “Unfortunately, this speech was the same rhetoric we’ve heard the past seven years. Hopefully his proposals will embody the change his speech lacked tonight. We need to change the way we do business as a state if we are going to strengthen small businesses and create jobs for Rhode Islanders.”

Secretary of State Ralph Mollis, who is seeking re-election this year, also supports helping small businesses. Mollis said he’s used his office to further that cause in the past, and will do so going forward.

“Last year my office helped 6,900 small businesses get started in Rhode Island,” said Mollis. “We already cut red tape, offer e-commerce tools and help companies connect with government services. Next month we will launch an initiative that will make it easier to start new businesses.”

Details wanting

Several state and local politicians interviewed yesterday said they enjoyed Carcieri’s rallying cry, but still need more detailed plans to get behind.

“There were not that many details,” said Senator Leonidas Raptakis (D-West Warwick, Coventry, Warwick), who is running for Secretary of State.

“Unless they’re in the budget, we don’t have any details as to what he’s going to do…I would like to see some, because I would like to get behind them.”

Raptakis, who signed a “no tax” pledge last year, said he appreciated the fact that Governor Carcieri pledged to submit a balanced budget that won’t increase taxes.

“A week from today, I will submit my budget for fiscal year 2011, and it will be balanced without raising taxes,” said Governor Carcieri.

Raptakis, who is concerned about a proposal to raise taxes on workers in order to make the unemployment trust fund solvent, said that additional strains on the economy could very well be the state’s deathblow.

“I’m against raising any taxes,” said Raptakis.

Regardless of what the governor said, Raptakis said the onus is on the General Assembly to make courageous decisions that protect the taxpayers.

“If my colleagues in the General Assembly don’t balance the budget, the voters will balance it at the ballot box this November,” said Raptakis.

“We need to have the courage to say ‘move away special interest groups, move to the side,’ because we’re not going to raise taxes.”

Like Raptakis, Senator Joshua Miller (D-Cranston, Warwick) is also looking for more specifics.

“You really can’t disagree with what he said, but so much depends on the details and whether they will actually do something that has a positive effect on small businesses,” said Miller.

As an example, Miller pointed out that Carcieri talked about giving cities and towns more direct control over school department spending. The current governance structure in Rhode Island basically allows school committees to spend what they deem necessary and then bill the town accordingly - a process that leaves city officials scratching their heads sometimes, and disgusts others.

According to Miller, that may or may not be a good reform, but either way, he said it wouldn’t help Rhode Island balance its budget deficit in the short-term.

Eileen Naughton (D-Warwick), when interviewed yesterday, said she was glad the governor, at points throughout his speech, moved beyond the incessant budget and economy talk and brought up the issues of health and wellness.

In the midst of his speech, Carcieri plugged the fact that Rhode Island was the first state to be designated as a Well State, largely because so many employers have instituted wellness programs for their employees.

“Several employees have reported that this program saved their lives by detecting diseases early,” said Carcieri.

Naughton said that credit was well deserved.

“I loved the fact that the governor mentioned that. With only a short amount of time he singled that out, which was impressive. Dr. David Gifford (the director of the department of health) did such a wonderful job, especially with how he handled the H1N1 situation, he deserved to be recognized,” said Naughton.

“The governor mentioned many of the things that I talk about - prevention, becoming the first wellness state in the country, keeping people out of emergency rooms, all of those things save money.”

Local Aid Cuts Protested

Much to the ire of Rhode Island’s mayors and city and town administrators, Carcieri once again singled out municipalities, saying they need to make structural changes that ultimately cut costs.

“Make no mistake about it; we are going to have to find more structural ways to reduce spending at the municipal level. We cannot sustain the present level of spending; we simply do not have the revenues,” said Carcieri.

Carcieri also called upon municipal employees to take pay cuts to help with the deficit. Responding to arguments that cuts to state aid amount to property tax increases, Carcieri said that if every city and town employee agreed to take a pay cut, there would be no need for any property tax increase in Rhode Island.

But municipal leaders vehemently oppose that argument. They argue municipalities are not responsible for the state’s estimated $219 million deficit.

“It’s intellectually dishonest to connect city budgets to a state deficit,” said McKee. “The money is not flowing into the cities and towns.”

Avedisian agreed.

“Over the last eight years state spending has increased 45 percent while city spending over the last six years has increased only 12.4 percent,” said Avedisian. “I don’t think you can say the state has done what it should and cities and towns haven’t.”

In a press release issued on Tuesday afternoon—before Carcieri’s speech—a coalition made up of mayors and town officials in Rhode Island announced that they planned to protest the State of the State address.

In that press release, McKee echoed Avedisian’s comment about state and local spending comparisons.

Avedisian, however, took some issue with the press release issued by the Coalition of Mayors and Town Officials, saying “protest” might have been too strong of a word.

“It was never organized as a protest,” said Avedisian.

McKee had a different take.

“Protest was the correct choice of words. In fact if we don’t speak up, our argument will be framed by the governor,” said the Cumberland Mayor.

“I’m protesting because I’m in an everyday battle to protect the taxpayers in my community.”