Governor Lincoln D. Chafee today thanked the Rhode Island Public Expenditure Council (RIPEC) and its staff for working expeditiously to produce its just-released report, Defining Government's Role in Economic Development in the Ocean State.
"38 Studios was and remains an economic development crisis for the State of Rhode Island," Governor Chafee said. "But it is indicative of the broader challenges that have plagued our state's approach to creating a fruitful business climate conducive to job creation. With that in mind, and to ensure that we never encounter a 38 Studios situation again, I asked RIPEC to take a thorough look at the RIEDC, particularly its distribution of loans, and make recommendations for a better path."
"I want to thank John Simmons and the entire RIPEC staff for the hard work they have done over the past several months," Governor Chafee continued. "I appreciate it and I know the people of Rhode Island join me in that appreciation. This is a substantial report. Its recommendations are neither simple nor easy -- nor should they be. I will continue to digest the report over the coming weeks as my Administration works to put in place the best structure for sustained and long-term business growth in Rhode Island. We need to make sure that the next incarnation of the RIEDC cannot make a similar mistake."
In May, following the dissolution of 38 Studios, Governor Chafee asked RIPEC to conduct an analysis of the structure and operations of the Rhode Island Economic Development Corporation (RIEDC), with particular emphasis on the agency's loan processes and philosophy.