GARY S. SASSE

The Providence Journal / Connie Grosch

PROVIDENCE — A Senate committee yesterday unanimously endorsed Governor Carcieri’s choice of Gary S. Sasse to head the state’s new $256.4-million Department of Revenue.

The nomination now goes to the full Senate for an anticipated vote next Wednesday.

Yesterday’s brief confirmation hearing by the Senate Finance Committee began with Senate Finance Chairman Stephen Alves, a Democrat, praising Republican Carcieri’s choice of “someone of [Sasse’s] caliber” to serve as the first $130,000-a-year head of the agency.

In his previous role as executive director since 1978 of the business-financed Rhode Island Public Expenditure Council, Sasse was a familiar face at the State House. Governors, mayors and legislators of both parties sought his views on tax, spending and bonding issues. Tim Duffy, director of the Rhode Island Association of School Superintendents, described Sasse as the “fourth branch of government.” Henry Sharpe, the retired head of Brown & Sharpe, and Shivan S. Subramaniam, the chairman and chief executive officer of FM Global, also sang his praises.

Created by lawmakers last year, the 475-job Department of Revenue is an amalgam of three existing revenue-raising agencies — taxation, motor vehicles and the Lottery — that each have their own directors; a new property-valuation division; and a new office of revenue analysis. Among its missions: to analyze whether targeted tax credits are accomplishing the goals for which they were created, such as new-job creation.

Sasse, 65, of East Greenwich, assured the senators that the new department would provide both the executive and legislative branches with “objective, non-partisan analysis and information.”

Several senators asked if he intended to delve into how much “bang for the buck” Rhode Island is getting from its much-ballyhooed tax credit for television and movie productions. For every dollar they spend on food, lodging, equipment rental and salaries — including those of the stars — the producers get a 25-percent tax credit. They in turn typically sell those credits, at a discount, to wealthy individuals who use the credit to reduce their Rhode Island personal income taxes.

The state has awarded an estimated $37 million in tax credits while refusing to make public any of the expenses that each production must submit to the Rhode Island Film & Television Office to qualify for the credits, or to demonstrate how much local business are benefiting.

In his previous role as head of RIPEC, Sasse said, “We are concerned that the film tax credit is not creating permanent jobs and investment in Rhode Island.” Yesterday, he assured Sen. June Gibbs, R-Middletown, he would inquire. He also promised to develop a first-ever “strategic tax policy” so Rhode Island is less susceptible to the yearly clamor for special company or industry-specific tax breaks.

kgregg@projo.com