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Hey Look We're Doing Something About the Economy!


When I was considered for appointment to the Joint Legislative Committee on Economic Development last year, I jumped at the chance. Given Rhode Island's high unemployment rates, fiscal duress, and a general failure to thrive, it seemed like a very important assignment. It hasn't been. The Committee has met only three times over the past two years and produced no legislation or recommendations, even as Rhode Island's economic and jobs performance remain amongst the worst in the nation. Taken together with the Majority's legislative program during the term, it is clear that creating an employment friendly environment in our state was not a priority. 

This afternoon, five weeks before the election, the Committee will convene at the State House. Ostensibly, the purpose of today's meeting is to receive a report just prepared by RIPEC addressing Rhode Island's economic development function. To a political observer however, the purpose seems a bit less sincere: with an election at hand, we must be seen as doing "something" about our economy.  

The Providence Journal has already recieved the report, and the headline this morning says it all: "Rhode Island lacks clear vision for growth." The story is all too familiar, and immediately brought to mind an email that I sent to my campaign supporters on August 28:  

"Yesterday’s Providence Journal featured a front page profile of the RI Economic Development Corporation, emphasizing its dysfunctional history and the failed taxpayer investment in 38 Studios.  The picture emerging from that article matches up with what I observed at the General Assembly during my first term:  failed leadership, lack of vision, and zero urgency to address Rhode Island’s extremely high unemployment.  As the article makes clear, legislative power brokers are content to carry on business as usual, completely out of touch from the needs of this state and the circumstances of the unconnected."

I'll try to remain optimistic that this afternoon's hearing produces meaningful discussion about serious issues, and is not simply an opportunity for political grandstanding.  More importantly however, I sincerely hope that the the leadership's new focus on our economy lasts longer than the next five weeks. 

Anthony Giarrusso

5:04 pm on Tuesday, September 25, 2012

Dawson, I share your concern. It has taken RI government far too long to figure out that what those who have been running businesses in RI have been saying for years is on the mark.

I would be cautiously optimistic about the RIPEC report. I am hopeful that the message, if even only in part, will trigger substantive discussion of the issue. Rhode Island has been playing catch up with our New England neighbors for years, and one of our basic problems has been that we – unlike so many other states – have simply never taken economic development and the health of the business environment seriously.

We have an opportunity here to get involved in a deep conversation about the future of Rhode Island, a future that will be dictated significantly by its economic health. I hope this report will be taken seriously by the Governor and the General Assembly.

I'll do my part to keep this issue on the front burner, and I hope that every resident of the state will - rather than being turned off by the political climate - jump in and keep the pressure on those making the decisions. We are all in this together, remember?

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Govstench

8:51 pm on Wednesday, September 26, 2012

As a life long resident of this berg, I have heard these initiatives being made over and over with no results. Yes, I am not optimistic with this one either. The EDC should have been disbanded years ago as it was loaded with political hacks. Sure, there were some business leaders mixed in but the results were always the same. This legislature will sit and come up with yet another commitee or two to study the problem, come back with a plan to implement only to run into a stone wall in the union dominated legislature. One thing you don't need is another state agency. That only expands an already bloated budget. You want to encourage business back to this state? CUT THE TAXES, FEES and repeal the overbearing regulations that are driving business out of this state. You also have to cut spending. $8.1 Billion dollar budget is ridiculous in this economy, especially when RI hardly has one left. The more you tax the economy it only slows it down. Where is our economy now? Slowing down.....why? More taxes. Gov. Gump has no idea how to get this economy started up. Remember, no politician can create jobs! It is impossible for them to do it in the private sector. You don't want more public jobs because that is expanding the government further. Lower the taxes and cut the spending - period! Everything else is just a bag of hot air, which we all have had enough of.

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Maxin

12:14 pm on Thursday, September 27, 2012

True you really do not want more government jobs even though they are the most stable jobs in the U.S.A. They cost tax payers because, unlike the private sector jobs that have not kept up with the cost of living in over the past 30 years. Government wages have a cost of living raze and security. If over the year’s corporations and companies kept up with the cost of living we would have never had this contraction. So I say it is the private sector greed that has brought this country down and will continue if we do not do something about it. I know the poor rich job creators income would only has resin 75 % instead of 271%. Then the say give them more tax cuts so it can trickle down and I do believe it dose trickle down to the CEO but the bucks stop there. American Greed Exceptionalism

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katherine

1:27 pm on Thursday, September 27, 2012

The only way the government can pay a worker is to take money from someone else. Private companies pay their workers with private money. The government pays people with tax money taken from the working population.

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Robert E

2:40 pm on Thursday, September 27, 2012

Katherine Private companies pay their workers with money takenform someone else they just take it in a different way. Private money just does not appear they take the cost of an item add a huge price increase then sell it to you where they take your money. The Government is providing a service and that costs money sometimes more then what you are paying for it but what they don't do is make huge profits.

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katherine

2:52 pm on Thursday, September 27, 2012

When you give a private company your money you get a product in return. You get to decide weather or not you want that product or a different one. You pay your money and you get something in return. When you give your money to the government there is no choice about how it is spent. Yes, you do receive services, but you also receive waste and fraud. Just try driving on the wonderful rhode island roads. Your tax dollars at work. The government does not make anything. Private business does. I am long gone from rhode island in both time and distance. I just like to check in with the patch now and then to remind myself why I left.

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Govstench

9:44 pm on Friday, September 28, 2012

@Maxin; the private sector was gutted out because of government overbearing regulations, taxes and high labor rates. You are forgeting that this is free enterprise and those people who have started small businesses and manage to enlarge them with prudent investment, a quality product and service will succeed. All government will do is try to regulate it, which is exactly why these businesses have chosen to close down and move overseas. Labor rates are cheaper and government regulations are far less. The far east is taking many jobs away from this country and this state because of these regulations and high taxes. There are over 1,600 state regulations that small business has to deal with. There are also unknown numbers of federal regulations to deal with as well. These regulations did not exist twenty or thirty years ago. This country is approaching a cross-road - whether it proceeds as a capitalist free economy or join europe as a socialist country. We are rapidly heading down that road and may be soon known as the United Socialist States of America. We are rapidly heading down the road to ruin because of over taxation and excessive spending. We are 16+Trillion dollars in debt nationally and over 15.5 Billion in debt in RI. How do you expect to pay for all of this debt? Without a vibrante economy, it just isn't going to happen.

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Nate

9:39 pm on Saturday, September 29, 2012

So, how does a private sector job "keep up with the costs of living"? The argument makes no sense to me. A private company should just dish out extra money to employees because general costs of living go up? How about the company creates values and an environment to be competitive and successful then when they have more market share - because their product or service is better than the rest - they can afford to pass some more along to the people who busted their *sses to be better.

You have a big assumption in there... that everyone is entitled to more money... correction: everyone is entitled to work hard and do teh best they can for themselves... granted in some cases people need help to do that or to get on their feet. But, I firmly believe that many people just aren't living to their full potential... look at what matters to most people in our country today: entertainment, overeating, over indulgence in sex/drugs/etc.

We've lost our ethic, our drive, and our passion to be the best... well... not all of us... but feels like the minority these days.

Rags 1

1:32 pm on Thursday, September 27, 2012

Wrong definitions. Businesses don't run out and hire people because govenment suddenly cuts taxes. They hire people to make a profit or keep making a profit. The lack of disposable income and jobs shipped overseas helped cause a serious slowdown of the economy.
Fiscal responsibility and accountability is not "cutting"; rather, its spending wisely and responseably for gov services desired and the amount of that service.
Gov is not a business, it is a service.
Wall St was de-regulated and see where we are.

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Ted Geisel

2:36 pm on Thursday, September 27, 2012

Hi Rags, You're right that they don't run out and hire people but taxes do figure into the long term economic strategy of the state. If I told you to setup your our new New England branch would you do it in RI, with a tax rate of 9%, CT with a rate of 7.5%, or MA with a rate of 8%. It's just common sense not to start a big business in RI when you can go a few miles north or west and save yourself a lot of money in the long run. Unless of course you are big enough to play the politics game and get a special deal that they can brag about cause it created jobs.

RI just isn't as competitive as it's neighbors in New England. That's who we are really competing against for jobs.

We've ranked dead last two years in a row for business friendliness. Why would anyone want to start a business here if they had a choice? http://www.cnbc.com/id/46413845/

That said, we keep electing the same people that have gotten us here. The last time the Democrats didn't control at least one chamber, Hitler was still ruling Germany (39-40). The last time they didn't control both was in 1958. They've had plenty of time to implement their vision of RI and this is what it is. 44 years of control, who else can you really blame when you have that much control for so long?

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no regr allia b

7:20 pm on Thursday, September 27, 2012

Just to add Ted. There are also over 30 other taxes a Company that sells and manufactures a product has to deal with in this State.

The permits and legal hoops and of course pay off cost are enormous. There is a good reasonwe are last and it would take pages to list them. By the way it has been 78 years of single party control in this State. Governors Don't count as tey have mostly figure head power and the R.I. Constitution gives the GA more power than the Governor. These are well known facts for the nay sayers.

9% of the GA currently is the other party. Think about that people. Those who critize the current stagnation in Washington should look to RI when it is all one party.

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katherine

10:32 pm on Thursday, September 27, 2012

I would not come back for anything. It is fun to watch you all stew in your own mess though:)

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Leave RI

12:33 pm on Friday, September 28, 2012

I'd like to agree with some of that. Government is a paid-for service. It's paid for by all people who work and pay taxes PLUS all of the business and property owners regardless what the business is. Now to the 47%..well government isn't anything but an ATM and cheese machine to take take take. I'm retired military and I've paid state and federal tax all my life except for the 4yrs on and off deployed overseas. The state still taxes my military retirement as if it was just another job. There are maybe 3 or 4 states that will steal your money a second time around like RI does. The rest of the states either don't tax military retirements (because they've already collected off them for 30 years) or pro-rate a type of tax break with a cap. This is all in, as much as I hate to type it, M S N.com not the thug cable news msnbc. I don't do any one elses homework for them. On my way out of the corrupt little state in the union, but not there yet and not for lack of trying.

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katherine

2:27 pm on Friday, September 28, 2012

Leaveri...I encourage you to get out. Nothing will change there because the people keep voting for the same people no matter how bad it gets. Don't even bother with staying anywhere in new England. I won't say where I am, but it is a dark red state where people have some common sense. The unemployment rate is very low and even the gravel roads here are better than the paved roads in rhode island. If you can, get out before it really hits the fan. You will never regret it.

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Leave RI

2:45 pm on Friday, September 28, 2012

katherine thanks. It's not for any other reason I'm not gone other than my wifes job offer is still pending...and it's in Texas..I'm not afraid to say that..there was an offer for me to teach military in SC, however, I already work outside of RI and that would just make too many moving parts and frankly more of a pain than a gain..enjoy

Joe Sousa

2:51 pm on Thursday, September 27, 2012

Until the Federal Courts see RI in for Bankruptcy it will be a downward spiral. Pension reform was a bandage on an open wound. Businesses are leaving every day as statistics show. Revenue will continue to drop as expenses grow. Property taxes will crush home owners as the State reduces aid again and again. The next decade for RI will be it's worst. The ride down will cost many their homes and businesses. Have a nice day!

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Realistic voter

10:13 pm on Thursday, September 27, 2012

Joe Sousa...Sounds just like chicken little " The sky is falling, the sky is falling. Get a life dude!

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Govstench

7:27 am on Friday, September 28, 2012

I have done some research on this budget mess and in looking back ten years, the state budget has increased 85%. Not once, in that time interval has there been a cut in spending! In 2008, they moved all the department figures into 2009. No cutting. This budget went up 6% to a record breaking $8.1 Billion dollars. Where is the economy to support this kind of budget load? It will come crashing down in the end.

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Tom

12:05 pm on Friday, September 28, 2012

RI had a hundred million dollar surplus last year. Revenue exceeded expectations. What are you talking about Joe? Does this have anything to do with the 12 teachers?

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Govstench

9:47 pm on Friday, September 28, 2012

@Joe: The federal courts will never see RI into bankruptcy because it is a sovereign state. Municipalities can go into bankruptcy but the states have to dig themselves out, either through higher taxation or less spending. It's that simple.

Joe Sousa

3:32 pm on Thursday, September 27, 2012

They raised taxes and fees. The income tax revenue went down. Try to pay attention Richard.

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Naome Lixes

6:31 am on Friday, September 28, 2012

Cite your sources, if you can.

This sounds like a bold, baseless claim.
Again.

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Ted Geisel

9:35 am on Friday, September 28, 2012

http://www.dor.ri.gov/Reports/RI%20Revenue%20Changes%202011%20Session%20with%20Table.pdf

Increased Business taxes by $794,250 in FY12. Page 4.
New tax on Insurance Proeeds, $776,903. Page 6
New tax on Computer Software, $6,668,600. Page 6
New tax on OTC Drugs, $7,765,808. Page 7
New tax on Sightseeing tours, $1,050,000 Page 8.
Business Regulation License Fees went up, $1,193,440, Page 9
Beach Parking Fees went up, $1468,978, Page 10

I could go on but you get the picture. Taxes and fees are up. See Page 17. Total General Revenue Tax Changes are up $21,586,058 for FY 2012. Fees are up even more! $148,143,141 for FY12.

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Ted Geisel

9:47 am on Friday, September 28, 2012

That said I couldn't find anything that Personal income tax revenue went down. The newest numbers I could find were FY11 vs FY12. Personal Income Tax revenue increased 1.4% or $14,654,533. Corporate Income tax did fall 6.4%.

http://www.dor.ri.gov/Revenue%20Briefs/FYE%202012%20Revenue%20Assessments/CORRECTED%20FY%202012%20Special%20Report%20on%20Preliminary%20Revenues%20June%202.pdf

Jim L

9:39 am on Friday, September 28, 2012

I can cure all this we out tolls on rt 24 to increase business in Newport county, Don't you guys know how fixing things works

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Just Another Taxpayer

10:49 am on Friday, September 28, 2012

Jim L, too bad you did not attend last night's No Toll Meeting which was held at the Tiverton Hall. I thought you would be there since you are so adamantly opposed to the tolls.

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Jim L

12:03 pm on Friday, September 28, 2012

Jat just so you know I was asked more than once to go by alot of folks , I spend about 41/2 days a week driving around Tiverton , LC Bristol Portsmouth Middletown and Newport, I. m paying for my own petition copies and gas, so i think other folks can handle the heavy lifting, i,m find just getting folks to help each other stop us from being the ATM of the state and killing busineeses and our indy park Did you go, are you helping?

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Tom

12:09 pm on Friday, September 28, 2012

Jim, with all the driving your doing, you should watch out for drunk drivers. Statistically you more likely to get into an accident when you drive as much as you do.

Govstench

9:58 pm on Friday, September 28, 2012

The toll issue is really starting to heat up with people in the East Bay. Again, another fee or tax on a stalled economy. The state is still trying to figure out how to pay to fix all of these roads that are falling down. What happened to all that bond money that voters approved for the past twenty years? That was suppose to keep everything in great shape. If we approve this DOT bond, it will give us access to 80% of the federal money to do these projects. How has that worked out for us? No good you say? Well, now the piper is here and he wants to get paid the debt service on those bonds. Guess what? That debt service is eating up better than one-third of that DOT budget. Oh, and those bonds we kept approving? We were actually paying the debt of one bond with the issuance of another. Like rolling credit cards! The state is awash in debt and is spending money at $8.1 Billion dollars. You have more bond issues coming up in November to authorize a total (including debt service) of over $307.5 Million dollars. If you are not aware of this, you need to read that little paper from the Sec. of State's office being mailed to everyone. This state only knows one thing - keep spending money like drunk sailors and stick the bill on the taxpayers. Businesses are leaving. Staples announced store closing yesterday. No customers. Skilled labor are leaving - no work. Oh don't forget, new sales taxes start on October 1st. Thank governor Gump for that move.

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Lorraine F

10:24 am on Saturday, September 29, 2012

We can debate all we want, but it boils down to plain old common sense.

Anyone who works in the private sector knows that when times are good and things are running smoothly, we take our regular vacations, leave at 5, chat on the phone a little longer (disclaimer, I did not work in the private sector).

When times are lean, we stay til 9, make an extra effort to take on extra assignments, put off vacation time. In short we act differently to adjust to the world around us.

Bureaucrats haven't figured this out. Consider RI Housing which only recently have I begun to read about this thing called "affordable housing" (thanks to many in the blogs).

This policy seems little more than an environmental disaster, doesn't effectively promote home ownership, and is a money pit paid for by taxpayers. They want another $25 million in the next election in a voter approved bond.

Have they not read the papers that show every week that we have lots and lots of affordable housing right now in RI.

"Common sense" and "state agency" need to become complimentary terms, not direct opposites.

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OldTownie

11:09 am on Saturday, September 29, 2012

Lorraine,
Please cite some statistics for your claim or "lots and lots of affordable housing right now in RI". Last time I checked, Portsmouth needed another 500 units to meet ferderal requirements for Affordable housing.

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Lorraine F

12:36 pm on Saturday, September 29, 2012

OldTownie

Glad you asked! From what I've read in the blogs which appear to have credible citations, the issue of the feds counting homes has to do with funding of projects, not statutory compliance to affordable housing laws here in RI.

The way things are counted is that RI housing will only count homes with affordable deed restrictions. Blogger John Harker gave a great explanation on this in:

http://barrington.patch.com/articles/affordable-housing-meeting-cancelled#comments

Here is an example. One house is selling for $250,000 and another for $150,000 in the same town. Which one is affordable? Let me add, the one for $150,000 does not have an affordable deed restriction so it won't count, where as the one for $250,000 does and will count.

Hense the numbers are being rigged to promote government involvement and oversight, not because there is an actual shortage of affordable homes.

While this may be a fine public policy when money is freely flowing, it is insanity when times are lean.

You may actually find that Portsmouth has lots of actual homes that are affordable, but are simply not being counted by Big Government as being affordable in order to promote expanded government oversight of a phantom problem.

That is my point. You don't leave at 5pm every day on your job when you know layoffs are coming, and you don't enforce rigged public policy when you are borrowing to run government year after year.
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Former Ports resident

11:56 am on Saturday, September 29, 2012

I vote that if the Sakonnet bridge ends up without tolls they rename it the Jim L bridge

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Rags 1

12:45 pm on Saturday, September 29, 2012

If all you conservatives belive in the "free market"--why do we regulate insurance companies, utilities, stocks, bonds, investment brokers etc. etc.--both political parties vote to keep them regulated. I wonder why government has to play a role?
Society is responsible for its own delinquency.
Free market and tax reduction without meaning is a joke.
Fiscal accountability is not just cutting--it is in reality "wise spending" for core services that people expect. Even the 47%.

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Jim L

1:06 pm on Saturday, September 29, 2012

When tolls are stopped the Bridge will always be the sakonett river bridge, but should be nicknamed the American bridge, Why because we stop tolls the American way , With A petition, With a letter campaige coming soon fronm STOP and donttoll, and last with our votes, If even ONE of our reps on this island would have voted no just to toss the people who elected them a biscuit then the other 6 would have had to follow just to cya, They stood right next to Paiva Weed and bagged us all, change must come, and it must come from us now to send the same folks back is to place the tools in place for sure

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Just Another Taxpayer

3:33 pm on Saturday, September 29, 2012

Why didn't you attend the the No Tolls meeting that was held last Thursday evening at the Tiverton Town Hall. I guess your handler(David Nelson) wouldn't let you attend?

Jim L

1:24 pm on Saturday, September 29, 2012

I vote we call it The American Way bridge if no tolls comes about it's because this is America and we will stop this the American way, with our votes, also a major part off the effort is Nov 6 to, that voting day, so we all get to fight to stop these tolls 3 times, the petion, the Letter stop and donttoll are coming out with and on election day, If the folks that let this happen go back in office then nothing changes. Where are ours Reps, ?Right now?

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Tom

3:31 pm on Saturday, September 29, 2012

I vote we call it the Coulter Expressway to free garbage disposal at work.

Remember the slogan: pay as you through unless your a coulter.

Jim L

5:09 pm on Saturday, September 29, 2012

Perhaps the Tiverton Patch editor could explain why this comment about what? is on here

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Powerful Forces

5:24 pm on Saturday, September 29, 2012

Perhaps it's about you, Fake Jim. Perhaps you can finagle away around the tolls too and let us "little people" foot the bill.

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Tom

5:31 pm on Saturday, September 29, 2012

Hi Fake Jim L. I think we all know why you were offended because I wanted to use the name Coulter. The real Jim L. wanted to call it the American Way Bridge, I want to call it the Coulter Expressway. Wink wink!

You post above gets nothing on the burp o meter because you are the fake Jim L.

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RI Teabagger

6:10 pm on Saturday, September 29, 2012

Might I suggest the PCC/TCC Patriot's TOLL-FREE Bridge to Freedom and Prosperity?

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Renee Cwiek

6:22 pm on Saturday, September 29, 2012

Did you guys even understand that post at all? I was so confused.

Jim L

7:16 pm on Saturday, September 29, 2012

Mrs Santini i believe it deals with the hawian good luck sign if you know what that is!

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Renee Cwiek

7:44 pm on Saturday, September 29, 2012

You spelled it wrong, and I'm not easily intimidated. Nice try though.

scott d. awg

9:30 pm on Saturday, September 29, 2012

I don't even think that this is the right forum to be discussing any politics but patch doesn't seem to have any guidelines or moral responsibilities anymore ,according to all of the dickheads that I have talked to.& yes its ok to call someone a dickhead but not a beotch!!

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Renee Cwiek

9:32 pm on Saturday, September 29, 2012

How is that okay, but I get in trouble or waving my my finger. Very frustrating.

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Renee Cwiek

9:40 pm on Saturday, September 29, 2012

The editor of the SK/Narragansett Patch seems to have a different opinion than the Tiverton Patch:

Stephen Greenwell
4:38 pm on Tuesday, September 25, 2012
We don't allow Carlin's seven, but everything else is usually fine. It's not the Sunday comics page.

I just found this to be interesting.

Leave RI

9:42 pm on Sunday, September 30, 2012

PolitiCrap rates all the southern RI politicians "pants on fire"....it's like a SAWNA in here.

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Leave RI

10:39 pm on Sunday, September 30, 2012

wait..grammar police..I already know sauna is the correct spelling..it was a line from a commercial I spelled phonetically to make the point

Jim L

7:57 am on Wednesday, October 10, 2012

it's beyond me how the Governor of RI can be on Tv saying we must protect the money coming to state coffers from Newport Grand and still want to place a toll on any one who goes there. Haveing to drive around the island 2 or 3 times a week for the last 5 months or so i gotten to see and notice alot Brick Market is still semi crowded, but most of the cars are from RI or from the south, Conn. NY, Fl,, most Ma. cars and trucks seem to be folks working, and having lunch in local spots, you can park down lower Thames just about anywhere, The Island is alot less crowded, just local and folks here for work, THATS the PROBLEM, ALL of them if from off the Island will be paying a TOLL, and LOcal leaving to work off the island will do the same, NOT TOURISTS!!! LOCALS Of course come the weekend it gets busy, but start looking around at where the cars are from, Lots of MA, and RI folks, Folks who will have to by a transponder to pay $1.66 to come and go, or $8.00 or even $10.00 now, This will effect the bottom line of ever bussiness in Newport county, TOLLS on the Sakonett River Bridge are just a job killing money draining bad idea, This was as well thought out as the Studio 38 brainstorm..NO TOLLS, get on BOARD Save Newport County, no one Else will, Join Stop

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