RI Reconsiders Business Subsidies After Video-Game Maker Fails
Shoveling money to your buddies can be embarrassing
Rhode Island, famously burned when it issued $75 million in bonds supporting former Red Sox pitching ace Curt Schilling's failed video game company, is undertaking a study of tax incentives to see if they are worth it.
Gov. Lincoln Chafee signed the bill last week to provide a "systematic approach to evaluating whether the state's tax incentives are truly fulfilling their intended purpose in a cost-effective manner," according to a press release.
The study does not directly address bond issues such as the one to Schilling's "38 Studios" company, approved by the state Economic Development Corporation in 2010. Chafee earlier signed the state's budget, which includes $112.6 million to pay off the loan ($75 million) and interest ($37.6 million). Chafee, a Democrat, said at the time that to fail to do so would seriously injure the state's credit rating.