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Rhode to prosperity

In Focus
NAME:Daniel McKee
COMPANY:Governor
POSITION:State of Rhode Island
LOCATION:Providence, US
Daniel McKee, Governor of Rhode Island, has some big ambitions for the smallest state in the United States, including investing in health, education and renewable energy, while building wealth for its citizens.

It may be the smallest state in size in the United States. Still, Rhode Island Governor Daniel McKee isn’t letting that get in the way of some big ambitions, particularly when it comes to going head-to-head with neighbor Massachusetts on the education ladder.

“Massachusetts has one of the top K–12 systems in the country,” McKee, who was sworn in as the 76th governor of the state in 2021, tells The CEO Magazine. “I’ve set a bold goal that we’ll either meet or exceed their levels by 2030.”

Driving that target is Learn365RI Municipal Compact, an initiative designed to change the mindset that learning only takes place during the 180 days of the school year.

“In every home, everyday learning matters,” he says.

With the initiative, McKee’s goal is to add one million hours of out-of-school learning per year. The Government of Rhode Island is harnessing partnerships between municipalities, local education agencies and community based organizations to improve student learning outcomes, particularly with regards to improving attendance, free application for federal student aid completion rates and academic proficiency.

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He says 38 of the 39 municipalities have signed the Learn365RI Municipal Compact to expand out-of-school learning opportunities. Grants of between US$40,000 and US$400,000 are being handed out to municipalities to support a range of efforts, including the creation of new jobs and the provision of academic support and tutoring.

Since Learn365RI’s launch in April 2023, McKee has already seen results, particularly in reducing chronic absenteeism. Figures published by the state reveal that, during the 2023–2024 school year, chronic absenteeism declined approximately 4.2 percent to 24.7 percent from 28.9 percent in the 2022–2023 school year (in the 2021–2022 school year, that figure was 34.1 percent). The reduction equates to more than 1.34 million additional learning hours.

The state’s efforts aren’t going unnoticed. In May this year, McKee was invited to participate in a White House summit on chronic absenteeism, alongside senior officials from the Biden–Harris administration.

“Improving student attendance is not only a key part of our administration’s Learn365RI initiative, but it’s crucial for our state’s economic growth and helping Rhode Islanders achieve a bright future,” McKee said at the summit.

Triple opportunity

Education is one of McKee’s three key priority areas as Governor, alongside building a healthier state and raising incomes and personal wealth. To bolster this tripod, as he describes his trio of priority areas, the state is investing more than US$80 million in community centers across Rhode Island. These cutting-edge facilities will offer programs aimed at enhancing educational outcomes and student achievement, assisting residents in managing their health and providing workforce training for higher-paying jobs.

McKee has stated a goal of increasing per capita income in the state by a minimum of US$20,000 by 2030 as he looks to steer Rhode Island towards a ‘Rhode to Prosperity’. If achieved, it would bring the state’s per capita income closer to its neighbors Massachusetts and Connecticut. To achieve this, he says, the state must upskill its workforce and encourage apprenticeships and work-based learning.

“Our plan is to have over a thousand students in that school, with 250 people graduating a year into six-figure jobs.”

Along with investing in areas of strength for the state, such as tourism, McKee has his eyes on new, innovative streams. Life sciences are one.

“We’ve created the Rhode Island Life Science Hub,” he says. With US$45 million to invest, the hub hopes to encourage the biotech industry to the state.

The state has also announced its intention to issue a US$80 million bond for a life science building at the University of Rhode Island, if approved by voters.

“That will allow us to develop the skill and talent into this life science industry,” he says.

Cybersecurity is another core opportunity; in November 2023, McKee launched the Institute for Cybersecurity and Emerging Technologies at Rhode Island College.

“Our plan is to have over a thousand students in that school, with 250 people graduating a year into six-figure jobs,” he says.

The blue economy

Given Rhode Island’s nickname, the Ocean State, comes from its over 644 kilometers of coastline, it’s also little surprise that the blue economy is a significant economic driver, worth US$5.3 billion. Boat building and servicing, including ship and submarine building for the defense industry, is one of the state’s primary maritime industries.

McKee believes that the state has plenty of opportunity to expand the blue economy’s potential. In October last year, Rhode Island received official federal designation as an Ocean Tech Hub, making it one of 31 inaugural Tech Hubs designated by the Biden administration across the country that show the real potential for growth in essential technology sectors.

Windy ambitions

McKee explains how the state is also harnessing a key natural resource: wind.

“We’re central to offshore wind in the entire country,” he explains.

In 2015, the country’s first offshore wind farm opened in the state, the Block Island Wind Farm. Now, another offshore wind project is under construction, called Revolution Wind. Once operational, it will electrify 350,000 homes across Rhode Island and Connecticut, or almost 25 percent of homes in the state, McKee says.

The investment feeds into the state’s renewable energy goals. “By 2033, we intend to have renewables fuel all of our electrification in the state,” he says.

The state is the first in the country to commit to 100 percent renewable energy by this date.

A new marine operations center facility currently being built at Naval Station Newport is set to become the home of the Department of Commerce’s National Oceanic and Atmospheric Administration Marine Operations Center-Atlantic when it’s completed in 2027.

“Defense is a big part of our economy,” he says. “This is an over a hundred million dollars facility that is going to employ hundreds of people in the blue economy.”

He predicts overall investments in the sector to generate just under 4,500 jobs. And, while the University of Rhode Island’s Graduate School of Oceanography is one of the top schools in oceanography in the country, further investment has been made to continue to give the institution the leading edge.

“We’re currently constructing a day campus to continue to invest on the education and training side,” he says.

“The blue economy is a big deal for us, and we’re just scratching the surface.”

A partner ecosystem

To boost earnings in the state, McKee knows that investment must also be made in the people who offer jobs.

“The private sector who provide the jobs that are going to create stronger communities is a clear part of our focus,” he says.

He appreciates that it takes time to build an ecosystem of partners who are invested in the state.

“It doesn’t happen overnight,” he notes.

After three years as Governor, he feels he is still building relationships and trust.

But examples like the partnership with Fidelity Investments show exactly what can be achieved when the public and private sectors come together.

“The company, which has a global footprint on business affairs, donated a building to one of our universities, Bryant University, one of the top international business schools in the country,” he says. “It is also adding around 800 well-paying jobs to our state.”

“The private sector who provide the jobs that are going to create stronger communities is a clear part of our focus.”

As Chair of the Board of Rhode Island Commerce, McKee is able to connect directly with the state’s private sector. Key partners include Providence-based marketing agency RDW Group and T.F. Green International Airport.

“We are fortunate in our state that there is an organization called the Partnership for Rhode Island, which is made up of the top CEOs of the blue chip companies that we talk with regularly,” he says.

This non-profit CEO roundtable with some of the state’s largest employers is designed to make the state a better place to live, work and learn through initiatives in education, infrastructure, workforce development and business attraction.

“Finding partners that are all-in on Rhode Island is a big deal to us,” he says.

But he knows the commitment needs to be reciprocated.

“They have got to feel as if you are listening to them and trying to help them. At the same time, it has to be a two way street,” he acknowledges.

“They need to be invested in our state so we can defend the positions that we take.”

Community spirit

There’s no doubt that McKee is setting the example when it comes to being invested in his home state.

“I’m from Cumberland, a town of about 36,000, and I’ve lived there my whole life,” he says. “I went to school there, where I met my wife Susan.”

Following the lead of his father, who with a group of friends founded the Cumberland Boys & Girls Club, McKee says he and his wife have always been very involved with community work, whether as president of the Boys & Girls Club or as basketball coach. He shifted into local government after three decades owning and operating small businesses, bringing with him not only the skills and experience gained in his community endeavors, but also the small business owner’s ability to handle anything that is thrown at him.

He spent 12 years as Mayor of Cumberland, during which time he also undertook a master’s degree in public administration from Harvard University’s Kennedy School of Government, before being elected Lieutenant Governor of the state in 2014. After becoming Governor in 2021, he was re-elected to office for a full term in 2022.

“Rhode Island is not part of Long Island, New York. We are an original state – and a beautiful one.”

One of the initiatives he is proudest of dates from his time as Lieutenant Governor. Started in 2019, the Rhode Island International Economic Ambassadors program draws upon the state’s diversity, by encouraging residents to engage their network abroad to drive economic development in the state.

“We have one of the largest Dominican communities in the country, we also have one of the largest Irish communities in our state,” he says. “We are very diverse, with multiple populations that represent communities from all over the world.”

It’s all part of the plan to spread the word about the small state with a rich history and bright future.

“Rhode Island is not part of Long Island, New York,” McKee says with a smile. “We are an original state – and a beautiful one.”

“Right now, we have one of the lowest unemployment rates in the history of the state of Rhode Island,” he says. “We also have more jobs and more people working today than ever in the history of the state, since they started tracking data in 1976.”

The unemployment rate in the state has dropped significantly from 17.9 percent at the start of the pandemic (April 2020).  Under the McKee administration, Rhode Island has experienced its the lowest recorded rate of 2.6 percent in 2023. The Rhode Island unemployment rate in July 2024 was 4.5 percent, however, the increase can be largely attributed to an increase in the labor force, McKee explains – in fact, in that same month, the state saw its greatest employment numbers and its greatest labor force participation in its history.

“We’re pretty proud of our state,” he continues.

“And I think other people will feel the same way if they get to know us.”

“Small businesses power Rhode Island’s economy, and as a former small business owner himself, Governor McKee has a deep understanding of the challenges they face each day. His commitment to our state’s long-term prosperity drives every decision he makes and working with him has been an invaluable experience.” – Liz Tanner, Secretary of Commerce, State of Rhode Island
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