As Legislature Spends Money, Cities Feel Pinch


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Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)

I see from the Providence Journal that the new state-appointed budget commission has decided that the city council and Mayor Fontaine were exactly right to request permission from the state to impose a supplemental tax increase on their citizens.

Last week, after an impassioned speech by Rep. Lisa Baldelli-Hunt, the House rejected Woonsocket’s request.  This week, the state-appointed budget commission asked that the request be reconsidered.

For some reason state legislators seem to get this idea in their heads that though they were elected on promises of fiscal responsibility, and intend to carry through on them, city council members and mayors get elected by promising to spend like drunken sailors.

This is not only bizarre, but entirely backwards.

By almost any measurement you care to make, it’s the state that has been the fiscal problem child over the past couple of decades, not the cities and towns. The difference is that the state has power over the cities and towns: they have more money, and stand uphill in a legal and constitutional sense, too.  But the General Assembly continues to resist the appeals of the duly elected leaders of our cities and towns, feeling that they know better.

This year, Governor Chafee infuriated organized labor by offering several “tools” to municipal officials to help them control pension costs.  I tend to agree with the labor folks here, that the state should stay out of these issues, and that passing state laws to trump local bargaining agreements is only a good idea in a very limited short-term sense.  But the Assembly has shown no interest in believing Mayors when they complain about financial stress, so if you don’t want more bankrupt cities, what should you do?  It seems to me that Chafee wasn’t so much sticking his thumb in Labor’s eye as making a realistic assessment of the Assembly and acting accordingly.

Or maybe not.  It appears that the Assembly leadership isn’t interested in Chafee’s suggestions, and pretty much none of them were put into the House budget.  This reminds me of the time in 2005 when the Carcieri administration came up with some personnel reforms that might have saved around $32 million.  They were the usual sort of benefit cuts, limits on vacation time and sick time and an end to “statutory status” which is a kind of state employee tenure.

Whatever you think about the wisdom of those reforms, it’s hard to praise the Assembly for what happened next.  The legislature rejected the reforms — but left the $32 million in savings in the budget.  So the administration was faced with finding $32 million in savings, but without the law changes to do it.  How, exactly was that responsible?

So now the Assembly is poised to do the exact same thing, and act to increase the pressure on cities and towns — not enough money to support their commitments, but no relief from those commitments, either.  The only difference this year from previous years is that now we have some Assembly appointees joining the Mayors in the hot seat, begging that they not be put in the same position as the Mayor and City Council of Woonsocket.  Mayor Leo Fontaine and the Council have failed to keep Woonsocket solvent, but a new budget commission won’t do any better unless the conditions change.  Right now, the only way the conditions will change is through the bankruptcy court, so mark your calendars.  I simply can’t agree with the people who imagine that dragging each of our cities into bankruptcy is a sensible strategy — in either the long or short term — for our state.

The Assembly can act here.  Sensible options are available, that take into account the actual realities facing our cities.  But will it?  So far, it does not appear likely.

Netroots, Occupy Should Protest State Budget Bill


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Sometimes the stars align for good things to happen. Here’s hoping such is the case with the seemingly-destined convergence of progressive events to play out in Providence Thursday afternoon.

Netroots Nation will be in the middle of its first day inside the Convention Center. Occupy Providence will be protesting economic inequality outside on Sabin Street.

And, meanwhile, just up the hill at the State House, they will be ensconced in the biggest and most important night in local politics, debating the budget bill. This year’s spending plan – in spite of a high-profile campaign led by elected officials, organized labor and community activists – will likely not include income tax increases on Rhode Island’s richest residents.

It’s ironic to say the least. While literally thousands upon thousands of activists in and around the Convention Center will be pondering new ways to foster progressive change in America, less than a mile away local leaders will be ignoring calls for progressive change to Rhode Island’s tax code.

Imagine if Netroots and Occupy joined forces on Thursday and marched up to the State House to call upon the General Assembly to balance the state’s ailing budget by asking those who have benefited the most to pay their share?

Progressive legislators put forward bills this session that would have rolled back the tax cuts instituted under the previous governor Don Carcieri, a Tea Party supporter. But despite being supported by almost half of the House of Representatives, leadership didn’t like it and they never made it out of committee.

On Thursday, there will likely be tax-increase amendments proposed that will finally, if nothing else, force a floor debate on the issue. And given that very few politicians want to roll into election season saying they supported tax cuts to the top 2 percent of Rhode Islanders, a vote could be closer than otherwise expected.

Imagine if Netroots and Occupy could turn our State House into something like what happened in Wisconsin?

It would be a statement not just to the powers that be here in Rhode Island, but across the country. What media outlet could resist Occupy and Netroots in sleeping bags on the marble floors as the supposedly liberal legislature sided with the affluent?

The annual budget debate is famous for going all night. Reporters and legislators often see the sunrise on Smith Hill before the bill is finalized.  Tax equity will be one of the most hotly-debated topics of the night.

Imagine of Netroots and Occupy could work together to tip the scales towards a more progressive Rhode Island?

Occupy Providence Picks the Wrong Target


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Occupy-Providence
Occupy-Providence
Occupy Providence in Burnside Park last fall.

In case you haven’t noticed, there will be two different types of occupations in Providence this week. Netroots Nation will be inside the convention center and Occupy Providence will be outside.

David Segal has a piece on this site pointing out why that’s perfectly legal. And it’s good Providence has such a strong protection for protests.

Yet I have to disagree with Occupy Providence’s tactics here. Reading through the Occupy Providence Google group, you can see the ambivalence towards Netroots Nation displayed by Occupy Providence’s most vocal members. A few think it’s nothing more than establishment, Democratic Party hacks (in this telling, Sen. Sheldon Whitehouse is a “staunch militarist” and this article in the Phoenix is proffered as proof of Netroots Nation’s lack of ideological alignment.

Others believe that the bloggers attending will be more than neoliberal sheeple, capable of calling the President out on his failures over the past two years and supportive of fighting Wall Street.

Regardless of where you believe Netroots Nation falls on Occupy’s wonky sellout scale, the occupation’s location doesn’t connect well with the demands being made. They are as follows:

  1. No taxpayer bailout of 38 Studios.
  2. Tax the wealthiest in Rhode Island and nationally.
  3. Solidarity, not austerity, locally, nationally and internationally.

The attendees of Netroots Nation will be in a position to deliver a total of zero of those demands. The first is next to inapplicable to the vast majority of conference goers. Indeed, a taxpayer bailout of 38 Studios seems unlikely. Going into an election season, no RI politician wants to be seen as throwing more money into 38 Studios’ burning, sinking ship.

Congratulations Occupy Providence, your first demand is met.

The third seems intentionally vague. (Solidarity with what?) However, anti-austerity forces will find their man in Paul Krugman, though some in attendance might’ve moved passed him to Modern Monetary Theory which posits that national debts don’t matter (this school of economic thought seems to be strongest at the University of Missouri-Kansas City of all places).

So this leaves us with the second demand: tax the wealthiest. While a few of the politicians in attendance may have the chance to act on that demand come next January, for Rhode Island, the pressure needs to be applied Thursday at the State House. As the House of Representatives takes up the budget bill, a document which will impact the lives of all Rhode Islanders; Occupy Providence will be in the wrong place, protesting people who will only be impacted for a few days. Thursday, at least, should be devoted to the General Assembly. Then Occupy Providence can head over to Netroots Nation for a weekend protest of the convention’s enablement of the great Democratic Party sellout.

Progress Report: Woonsocket Needs Money, Not a Receiver


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The state budget commission appointed to help Woonsocket with its finances says it needs a supplemental property tax in order to make ends meet this year. Such a tax would need to be approved by the General Assembly, but the House won’t vote on it until it has the support of the Woonsocket delegation, which it doesn’t – local legislators would rather have a receiver appointed than add a new tax.

So, to make a long and politically complicated story short, three Woonsocket legislators hold the financial fate of the city in their hands – and there is nothing Mayor Leo Fontaine, the city council, the budget commission or to some degree even the governor can do about it … unless the House decides to vote for the tax over the objection of Reps. Lisa Baldelli-Hunt and Jon Brien.

Speaking of Woonsocket, Bill Sequino is an excellent choice to serve as chair of the budget commission … He’s the longest serving municipal manager in the state and knows the budget process backwards and forwards. East Greenwich, where he has served for more than 20 years, may be known as a haven of conservatism but its local pols actually spend public money like drunken sailors (EG is again raising property taxes this year to help pay off debt service on huge spending projects) and then look to Sequino and his staff to make it all work.

Interestingly enough, Sequino’s former adversary on the town council, Vince Bradley, is now serving on the West Warwick School Committee, reports EG Patch.

No wonder Curt Schilling’s $75 million loan guarantee was so easily approved by the EDC – he was doing business with one of the board members who voted in favor of the deal. The Projo reports this morning that when the EDC was voting on the Schilling deal, the ex-Red Sox was also developing board games for Hasbro, whose chairman of the board Al Verrecchia was one of the EDC board members who voted for the deal. Verrecchia is also a good friend and close ally of former Gov. Don Carcieri.

The Patriot Ledger takes RI to the proverbial woodshed for the 38 Studios deal.

Ian Donnis on the efforts to reform payday lending.

It was a bad day for organized labor across the country … not only did Wisc. Gov. Scott Walker survive the recall election waged against him, two California cities voted to cut pension benefits to public sector retirees.

The good news coming out of Wisconsin: Democrats regained control of the state senate.

 

 

Sheldon, Taveras, Cicilline Eagerly Await Netroots


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Senator Sheldon Whitehouse announced Netroots Nation 2012 would be held in Providence at the 2011 event In Minneapolis.

With literally thousands of progressives from across the country descending on Providence for Netroots Nation, it’s important to recognize the local progressives who brought the annual conference of lefty activists and journalists to the Ocean State: Sen. Sheldon Whitehouse and Mayor Angel Taveras.

The three lobbied hard to host the 2011 event in Providence. But Netroots felt it couldn’t come as employees of the Westin Hotel were mired in a contract dispute with management. But when the labor dispute was resolved, the conference agreed to pay Providence a visit.

“Providence is a beautiful city. It is as blue as the waters of Narragansett Bay,”Whitehouse said in announcing the news that Rhode Island would host the 2012 event at last year’s in Minneapolis. “You progressives will feel right at home.”

So far, so good. I met with Mary Rickles of Netroots on Tuesday and she said the city has been great to them so far, and the local amenities have been outstanding.

Taveras isn’t surprised the Netroots crowd is already enjoying the city. “Providence is the perfect place to host Netroots,” said the progressive mayor, noting that their stay will likely only get better.

“I can’t wait to see the bloggers reaction to Waterfire,” he said. “They are going to promote in nationally.”

Waterfire, for those new to the area, is a downtown tradition that centers around a series of seemingly floating fire pits in the Providence River.

Whitehouse agreed, saying Netroots is “a chance for Providence to come out as a hip, attractive destination.”

While both recognized it as a great opportunity for the city, they also said it is a great opportunity for local progressives.

Taveras, who will give a welcome address to the conference, called it an opportunity for “the great minds and great thinkers” from all over the country to co-mingle with us local progressives for “an opportunity to talk about the future of our city, our state and our country.”

Whitehouse said Netroots Nation is important too to his fight in Washington D.C.

“If you look at it from 50,000 feet when you look down what you see is immensely powerful special interests,” he said. “One of the most effective way of fighting those special interests is through the grassroots, internet community that Netroots represents.”

Whitehouse will speak on two panels at Netroots: one on tax fairness and another concerning Citizens United. Fitting, in that he authored the Buffett Rule bill in the Senate and is also sponsoring the DISCLOSE Act, which would require Super-PAC TV political ads to list those who paid for the message.

Another progressive Rhode Islander, Congressman David Cicilline, will also play a key role in Netroots Nation’s visit to Providence. He’s participating on two panels: one on gun safety and another on reinvigorating the manufacturing sector of the economy. He’s also giving the closing speech.

“I think it’s going to be a lot of good communication, incubating new ideas and learning how to challenge the staus quo,” he said. “The only thing better would be if everyone stayed here and became Rhode Islanders.”