Rhode Island’s economic and fiscal situation – high unemployment, falling revenues and a collapsing housing market – has had, and will continue to have, a significant impact on the State’s ability to support government functions. The State’s projected out-year budget deficits bring into sharp focus the need to systematically address the structural imbalance in Rhode Island. The structural budget deficit has impaired the State’s ability to successfully compete for jobs and create long-term economic growth opportunities for its citizens. Unless something very dramatic happens to boost total income and/or wealth in this State over the next few years we simply can no longer sustain the level of State and municipal government that has been accumulating over the last few decades.

The RIPEC Board of Directors believes that it is time for Rhode Island to take the necessary steps towards fundamental and transformative, yet compassionate and affordable, change in the funding, provision and delivery of State and local services.

The problems we face cannot be solved through a business-as-usual approach, nor can they be achieved through a single entity acting alone. All levels of government must work in concert; expecting one to solve the problems of the other will not solve the problems we face in this State. Rhode Islanders must work together to build a solid financial foundation upon which our ability to make key investments for the future will depend.

RIPEC and the people and organizations we represent stand ready to help with a true reform effort. Since 1932, RIPEC has been the only non-profit organization that monitors State and local expenditures and revenues thanks to the generous support of businesses and institutions. Whether through behind-the-scenes work with public officials, or wellpublicized reports and media commentary, RIPEC continues to influence the public agenda for fiscal responsibility and effective government in Rhode Island.

Given the choices we as a state currently face, this is the time when RIPEC is most valuable to Rhode Island’s citizens. With your ongoing support I am confident that RIPEC will continue to serve the needs of its members and the residents of this State, and will remain an important part of the decision-making fabric of the Ocean State.

As always, and on behalf of the entire Board, I thank you for your invaluable investment in RIPEC.

Ronald K. Machtley

President