Although investors in 38 Studios were promised prior to the closing of a $75 million state loan guaranty in 2010 that IBM would offer independent third-party monitoring of the company and its performance, IBM didn't sign a contract to provide that monitoring and independent oversight was never put in place, according to testimony presented last week to a legislative committee.
Moderate Party gubernatorial candidate Ken Block says the speed with which the House Finance Committee votes on an $8.2 billion budget -- just hours after learning the details -- is a backwards way of doing things.
As Block notes in a news release, Tuesday's committee vote on the budget stands in contrast to the typical hearing process:
The Young Democrats of Rhode Island are slapping the older Democrats in their party who run the Statehouse. In a statement, the Young Democrats take issue with the proposed state budget for the fiscal year that begins July 1 that won House Finance Committee approval.
While the group ``commended’’ the Assembly for adding money for the state’s school funding formula and restoring funding for developmentally disabled citizens, the Young Democrats skewered other budget priorities.
Moody’s Investors Service has downgraded the state’s bonds for its failed deal with 38 Studios. Moody’s has put those and other state bonds under review for possible additional downgrades.
In explaining the move, Moody’s points to uncertainty in the General Assembly about whether to allocate money for paying back the 38 Studios’ bonds. The investors’ service downgraded the 38 Studios bonds from a low credit risk to a moderate risk.
House Minority Leader Brian Newberry (R-North Smithfield) joins the Roundtable this week to discuss his expectations on the budget; whether the state should pay back moral obligation bonds related to 38 Studios; what the General Assembly will accomplish this year to boost the economy; and more.
Residents and merchants in the East Bay are sharply opposing tolls on the Sakonnet River Bridge. Local lawmakers have joined them in asserting the tolls will hurt the economy in communities near the bridge.
Providence Business News Editor Mark Murphy joins Rhode Island Public Radio's Dave Fallon for a weekly business segment we're calling "The Bottom Line." Each Friday they look at business news and themes that affect local business and the public.