New Fung Ad Criticizes Raimondo over 38 Studios

 Twitter:  @markcurtisABC6  

email: mcurtis@abc6.com 

A new campaign ad targets Democratic nominee for Governor, Gina Raimondo.

She supports repaying the “38 Studios” bondholders, who lost money when the Rhode Island taxpayer-backed video company went bankrupt.

Her Republican opponent is behind the ad.

“I don’t support paying that bond and she does. And this is taxpayer dollars that we are talking about; millions, multi–million dollars of taxpayer dollars that could be invested more wisely on other services,” said Mayor Allan Fun g, (R), Nominee for Rhode Island Governor.

ABC6 Chief Political Reporter Mark Curtis, “Even those 38 Studios went bankrupt and closed its doors 2 and a half years ago, the aftermath remains one of the sorest points in modern Rhode Island politics.”

Gina Raimondo – who did not respond to our requests for comment – opposed the 38 Studios deal in the first place.

But she has said the state should pay back those failed bond investors.

In May 2014 Raimondo said:

“Political grandstanding and urging default will hurt Rhode Island‘s credibility in the bond markets over the long term.”

Some leading lawmakers agreed.

“If we are going to have any negative ratings, or if our ratings are going to drop, what’s it going to cost us in the long run,” said State Rep. Ray Gallison, (D) Chairman, Finance Committee.

But the Moderate Party candidate disagrees, and says state pensioners should have their reduced benefits reinstated, before 38 Studios investors are paid back.

“If we have to pay bonds to Wall Street insiders, we have a greater moral obligation to pay the pension funds to the people who earned those plans, years ago,” said Robert Healey, (M) Nominee for Rhode Island Governor.

Estimates suggest Rhode Island taxpayers may lose 100 million dollars because of “38 Studios.”