For many politicians, limits on their power to incur debt are an obstacle to be evaded rather than a concept to be honored. This is why some Rhode Island politicians want Rhode Island taxpayers to honor and pay a moral obligation bond for 38 Studios. Presently, there is a debate about whether Rhode Island should pay the moral obligation bond issued by the R.I. Economic Development Corporation (EDC) for 38 Studios. Over the next eight years, Rhode Island would pay at least $90 million if it honors this moral obligation bond. However, Rhode Island is under no legal obligation to pay this bond. Rhode Island is only legally required to pay general obligation bonds, which have been approved by the voters in a referendum consistent with the state constitution.
View original post 963 more words