Truck-tolling plan would harm, drive away local businesses

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I am a long-time business owner and resident of the city of Cranston. I am writing to express my concern about the recent discussion and the pending decision to initiate tolls throughout the state of Rhode Island. I understand that the decision is being considered to enable bridge and road reconstruction that will ensure safer traveling. However, I do not believe that tolling trucking companies is a solution to the reconstruction of bridges and roads in the state. Consider: These tolls will result in multiple trucking companies avoiding travel through the state. Any company located south of Rhode Island can easily eliminate traveling through the state via interstate 395, and would save money by doing so.

On Jan. 7, 2016, the Providence Journal released a compelling article regarding a trucker trade group survey. This article stated that “just under 77 percent of those who responded said they would ‘always’ alter their route to avoid tolls in Rhode Island. 21.7 percent said they would sometimes alter their route to avoid tolls and 1.6 percent said they would never change their route.”

This becomes a growing problem for an already business defunct state, as we would lose revenue, and thus the purpose for the tolls would be lost.

We would be the first state to begin the introductory taxes on only trucks. As a benchmark proposal, I do not believe that Rhode Island is inclined to lose multiple business opportunities, as well as the rise of unemployment. Other states have considered similar proposals, however, due to the deficits that this proposal would cause, the ideas had been retracted.

In addition, as a company who adjusts to adversity, we have recently learned that Governor Raimondo released the tentative list of toll locations. Without specific toll locations, we would be unable to determine the deficit of fiscal impact. With these locations being tentative, it still leaves many unanswered questions. There have been multiple instances of hearsay, and the bill is being rushed far too quickly. My company, Greylawn Foods, will be affected by these implemented tolls. For example, the summation of tolls from just the past six months of our company estimates to be around $50,261.58, with the added tolls that are being proposed, our company could potentially lose an estimated $280,000 out of pocket. These costs cannot be passed on to our customers as our competitors do not reside in our state and can avoid the additional costs without concern.

Unfortunately, these types of increases have caused apprehension. We have regretfully been considering moving our business elsewhere, and many other companies will be following suit. I have recently been contacting many companies located in Rhode Island that we have established a long-lasting relationship with. Sadly, they too have been considering closing their doors due to these implemented tolls.

We established our footprint in Rhode Island in 1900, and the company has been run by four generations of my family. This business has progressed from a small poultry business to a refrigerated LTL transportation company. In result, Greylawn, does very little business in Rhode Island, and there are becoming seldom few reasons that we stay. Both myself and my son, whom is also an owner, were born and raised in Rhode Island. We have established our roots here, our families, our homes, and our businesses.

Recently, our company was looking to invest $300,000 on a new refrigeration system at our Plainfield Pike location. Our numbers had been finalized and financing had been arranged. Then came the tolling proposal. The bank has already had a quarter-point increase on the money we were to borrow due to this toll issue. Based on some numbers that have been circulating, Greylawn will potentially have to move its location, if an equitable arrangement is not presented shortly. It saddens me that we may have to end this long-lasting relationship because of this unprecedented proposal.

I believe that there are alternate options that would benefit the reconstruction of the roads and bridges in the state without such a detriment to the trucking industry. The Rhode Island Trucking Association has developed an alternative solution to the ambiguous Rhode Works proposal by increasing diesel taxes and registration fees, in order to address the problems.

It would seem that tolling the trucking industry would lead to improved roadways and bridges, but at what cost? We are already the 46th of the list of states to do business in, according to a Forbes article as of October of 2015:

“Rhode Island ranks fifth worst on net migration out of its state over the past five years. With the third worst average unemployment rate over the past five years, residents are leaving the state in search of jobs. Rhode Island has been stuck in the bottom five overall for seven straight years.”

I am sure a ruling like this will not improve our standing, and will certainly not accumulate businesses to lay their foundations in our crumbling state. Yes, there would be improved roads and bridges with the proposed toll stops, however, we would in turn witness some companies going bankrupt, as well as other companies selling their land, and moving to other states. There would be a rise in unemployment, and a loss of business within the state. Is this the footprint we would like to leave on our state? As Harry W. Kentworthy recently stated in his three-page discussion regarding the states economics, “Is this how Rhode Island is ‘open for business?” Please consider my letter, and what a few changes could do.

Sidney Goldman is the owner of Greylawn Foods on Plainfield Pike, and a longtime resident of Cranston.

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