Paul Harrington, associate director of the Center for Labor Market Studies at Northeastern University, speaks about the labor force skills gap at yesterday’s forum called by Governor Carcieri to brainstorm solutions to improve Rhode Island’s economy.

The Providence Journal / Kathy Borchers

PROVIDENCE — It took Rhode Island’s worst financial crisis in two decades to bring them to the table.

More than 100 business leaders, academics and state officials gathered yesterday to brainstorm about the Ocean State’s ailing economy.

Few could remember a time when such a diverse group of power players had collaborated like this: Company executives facing poverty advocates, labor chiefs next to local economists.

Their task was colossal. But so was their inventory of ideas.

If the state is to permanently change the fiscal climate and prevent another recession of this magnitude, they concluded, it must revise its tax structure to offer better incentives to businesses and families; shore up its schools and universities at all levels; and streamline government, consolidating school districts and municipal services in the 39 cities and towns.

Above all else, it must pick an economic strategy to move forward and stick with it. That was the message that came from one of the dozen or so work groups lead by Chris Brown, CEO of Deepwater Wind, the developer of Rhode Island’s proposed offshore wind farm.

The summit, organized by Governor Carcieri late last month, was billed as a chance for state leaders to start a conversation about change.

“Put aside finger-pointing, put aside the blame game and come to the table and say ‘Let us move this process forward,’ ” facilitator Jill Schlesinger encouraged the group before sending them off into break-out sessions.

Several participants applauded the forum, saying it felt like a step forward.

“This might be the first time this broad-based group has been in a room together under the official color of government to focus on a common problem,” said Robert Walsh, director of the National Education Association, Rhode Island.

But a few questioned if the event arrived too late, given that Rhode Island’s unemployment rate has already risen to the highest in the country, at 8.8 percent as of September, and the state has now lost close to 16,000 payroll jobs since the first quarter of last year.

Carcieri promised to keep the search for solutions, synthesizing the long list of ideas into a formal report. “I don’t want anyone to leave here thinking, ‘OK, that was nice but that’s the end of it.’ It’s not the end of it,” he said. “I can assure you.”

But it remains uncertain how the ideas will translate into action.

Many of the proposals raised would require legislative approval, yet General Assembly leaders from the House and the Senate were absent from yesterday’s forum.

Through a spokesman, House Speaker William J. Murphy said by the time he received notice of Carcieri’s event he “had already committed months ago to serve as an instructor for a continuing legal education class with the Rhode Island Bar Association.”

“If the governor has developed some good ideas on economic development, I am always more than willing to listen,” the speaker said.

Other proposals drummed up in yesterday’s forum include:

•Offer tax breaks to workers who come to Rhode Island from out of state to take jobs in the technology industry.

•Eliminate bureaucratic infighting to ensure that infrastructure projects including expansion of T.F. Green Airport move forward.

•Create a tax redevelopment zone targeted to a particular industry.

•Improve the state’s marketing campaign, to remind outsiders of Rhode Island’s economic strengths, not its weaknesses.

•Expedite permitting processes around the state, so bureaucracy does not hamper businesses from building and expanding.

•Offer tax incentives to residents who pursue higher education degrees.

•Establish a predictable school funding formula so districts can focus on long-range planning.

•Invest more money in academic and research institutions.

Improving public education to make the state’s labor force more attractive to businesses is a must, according to presentations made to the group by a labor economist and a corporate relocation specialist earlier in the morning session.

Other states such as Colorado have invested more in their universities to keep tuition more affordable.

“They’ve figured out education is our pathway to economic prosperity,” said labor economist Paul Harrington, associate director of the Center for Labor Market Studies at Northeastern University.

Rhode Island also needs to consider refocusing its state colleges to better align its teaching with growth businesses. For example, he said, Rhode Island College, which is now primarily an educational training school, could be converted to a polytechnical and engineering or health services college.

That’s an investment that requires money at a time when the state is trying to cut spending.

The state may have to make a hard choice, Harrington said, between spending on short-term solutions such as increasing food stamps, versus longer term investments in education.

“If you’re prioritized towards long-term growth,” he said, “…these are the kinds of choices you’ve got to make.”

— With reports from staff writer Lynn Arditi.The solution

Reduce costs: Consolidate municipal governments and school systems.

The work force: Offer tax incentives to workers in the technology sector who relocate to Rhode Island.

Education: Mandate that the state offer education stipends to employees who improve their skills.

cneedham@projo.com