Governor hopefuls square off in first TV debate

Daniel Kittredge
Posted 10/23/14

Cranston Mayor Allan Fung and General Treasurer Gina Raimondo went on the offensive in their first televised gubernatorial debate this week, sparring over each other’s record, leadership style, …

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Governor hopefuls square off in first TV debate

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Cranston Mayor Allan Fung and General Treasurer Gina Raimondo went on the offensive in their first televised gubernatorial debate this week, sparring over each other’s record, leadership style, approach to the economy and stance on the repayment of 38 Studios bonds.

The Republican and Democratic hopefuls, along with Moderate Party candidate Robert Healey, appeared at the Providence Performing Arts Center for the Tuesday night forum hosted by WPRI 12 and the Providence Journal.

Polls have shown a close race, with Raimondo holding a slight lead over Fung and Healey nearing double-digit support. Held just two weeks before election night, the forum provided a key opportunity for the hopefuls to get their message out to voters.

Fung and Raimondo each presented themselves as the right choice to lead an economic revival in the Ocean State. Fung spoke of his record as mayor, pointing to three consecutive years without a property tax increase and successful commercial development.

“I think the Cranston taxpayers know and trust what I’ve done,” he said.

Fung also highlighted his $200 million tax reduction plan, which he said would “make our state one of the most competitive in the Northeast” and has been backed by experts.

Questioned regarding the feasibility of such cuts in the face of major projected state budget deficits in the coming years, the mayor again pointed to his record of finding “operational efficiencies” and cost-saving arrangements with other municipalities. He also held up New Hampshire as an example of a state with a comparable population to Rhode Island but a significantly higher budget.

“This is where the Rhode Island taxpayers have to put their trust in me – the experience that I have as the mayor of Cranston innovating, making sure that we’re working together, consolidating,” he said.

Raimondo criticized Fung’s tax proposal – “He knows it’s unrealistic,” she said, citing local tax increases earlier in the mayor’s tenure – while acknowledging the need for an “affordable, competitive tax structure.” She pointed to the 2011 pension reform law she championed as having already saved taxpayers millions and said her approach is centered on controlling spending while making targeted investments.

Chief among those would be a collaborative effort between universities and industry to create an advanced manufacturing institute, which Raimondo envisions being housed on the now-open land formerly housing Route 195.

“That’s the kind of game changer that we need,” she said, adding that her plan would “fundamentally recreate our economy in industries we can be great at.” She specifically mentioned marine science, medical science and industrial design.

Raimondo pointed to the example of neighboring Massachusetts, which positioned itself to excel in the information technology and biotechnology fields following the departure of manufacturing jobs.

“For too long in Rhode Island, we’ve been short-sighted,” she said. “They are thriving, and we’ve been left behind.”

Questioned regarding the potential costs of investing in such an institute, Raimondo said she would look to give the land away and pointed to the future benefits as the paramount consideration.

“Over time, it’ll save money through economic growth,” she said. “You have to think of it as a smart investment…we’re not going to cut our way out of this.”

Healey said the state is “overregulated,” and he said steps must be taken to lower property taxes as a way to ease the housing burden and foster economic growth. He suggested moving teacher contracts from the municipal level to a single state contract as a possible means of achieving that goal. Healey strongly questioned whether investing in or cutting taxes for businesses would result in sustainable prosperity.

“Businesses come in, take the money, and after they’re done with the state of Rhode Island they leave,” he said.

The situation surrounding 38 Studios – the failed video game company of former Boston Red Sox pitcher Curt Schilling, for which the state is now responsible for tens of millions of dollars in payments to investors – drew spirited discussion. Fung and Raimondo questioned the timing and sincerity of each other’s opposition to the initial deal and disagreed strongly over how to approach the bond payments. Fung has opposed the payments, calling for a full investigation of the situation – and a determination over potential wrongdoing – before the state fulfills its so-called “moral obligation” to repay investors. He brushed aside the assertion that not paying would damage the state’s debt rating.

“I would never play politics with the state’s bond rating,” he said. “The taxpayers of Rhode Island deserve to know the truth before they make any commitment…This is too critical of a decision.”

Raimondo said Fung’s opposition to the payments is “the easy political thing” and said not repaying would be a “huge black eye” to the state.

“The experts have told us if we don’t repay it, it’s going to cost twice as much. That’s a fact,” she said.

Healey said he supports a full investigation and seemed to support Fung’s position.

“A moral obligation is certainly not, in my opinion, an obligation of the state of Rhode Island,” he said.

The most contentious portion of the evening came during discussion of the situation surrounding the Cranston Police Department and the ticketing scandal that emerged late last year. In recent days, groups not connected to Raimondo’s campaign have begun airing television ads critical of Fung’s handling of police affairs. Raimondo said Fung’s “handling of the police department is a red flag about his leadership” and asserted that the mayor allowed “abuse of power [and] a culture of favoring insiders” that resulted in “scandal after scandal after scandal.”

Regarding the ticketing specifically, she said Fung “fumbled it and mismanaged it for months” before finally calling in Rhode Island State Police. Fung said he asked state police to conduct a “top-to-bottom” review of the department in addition to investigating the ticketing allegations, and he said a comprehensive report remains pending.

He characterized his administration’s handling of the situation as “decisive” and said there is a “new day” in the police department, which recently welcomed a new chief after months under the temporary leadership of state police.

“I’m tired of having your Wall Street interests, your outside millionaires, funding these attack ads…distorting the truth and the record,” Fung said in response to Raimondo.

Healey, for his part, painted the back-and-forth between Fung and Raimondo as a distraction.

“It’s all being played out on a stage where campaign funding is really forcing all these issues. We’re not talking about the future of Rhode Island,” he said. “We’re bickering between people who have problems with each other over certain matters of management style.”

The 2011 pension reform – as well as the legal challenge it is facing following the failure of a proposed settlement – also came up during the debate.

Raimondo, who championed the law and shepherded it through the General Assembly, said she “inherited a system in crisis.”

“I worked with the General Assembly, brought everybody together and solved the problem,” she said. “The system is healthier than it’s ever been…That’s leadership.”

Fung, who was sharply critical of the proposed settlement, said he believes “all Rhode Islanders recognize that pension reform had to be taken on the state and local level.” He pointed to an agreement reached with police and fire unions in Cranston and targeted the treasurer’s handling of the state pension fund.

“We’re in a lawsuit right now, and we have to just wait and see what happens,” he said.

Healey suggested the constitutionality of the 2011 reform could and should have been determined at the outset of the process.

“We have a problem there. It’s not over yet,” he said.

He also more broadly criticized the law.

“We have moral obligations to people on Wall Street, and yet we have no problem saying we have no moral obligation to people who actually worked for our state…I find that to be far out of the realm of reality,” he said.

Healey, who has run for statewide office on multiple occasions under the Cool Moose banner, additionally made an appeal to voters who may not view his candidate as a serious one.

“I’m only relying on the people and free media to get my message out…as governor, I would only answer to one boss, and that boss being you, the people,” he said. “You might say that you’re wasting your vote if you vote for me, but if you don’t vote for the person who best represents you, you’re wasting your vote then.”

Tuesday’s forum was moderated by WPRI’s Tim White, with Ted Nisi of WPRI and Ed Fitzpatrick of the Providence Journal serving as panelists.

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