How Woonsocket Ended Up in Fiscal Trouble


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In the proposed budget Woonsocket advertised to its citizens, the city says it expects to spend $122,095,051. But the actual number, said Budget Commission Chair Bill Sequino, will likely be at least $6 or 7 million more than that because of a deficit on the school side of the ledger that was just discovered several months ago.

“We know the ad is inaccurate,” said Sequino, noting that his budget commission and the town council have until July 1 to make the numbers work. “At some point there could be some draconian cuts.”

He said people have talked about lay-offs, pension cuts and across the board pay cuts.

While whatever cuts occur will likely affect the entire city, the deficits are on the school side of the ledger.

“On the city side, they may not have been okay by much,” said Sequino, “but they were in the black.”

In last year’s budget, the school district planned to spend about $59 million. Sequino and others expect they will spend closer to $66 million, if not more.

How the schools ended up spending so much more than they expected is a question Sequino said the budget commission is eagerly anticipating an answer to.

Property taxes were kept low in Woonsocket when Susan Menard was mayor and state aid was plentiful. Then, according to Woonsocket teachers’ union president Jeffrey Partington, then-Governor Don Carcieri threw a money-wrench into the system.

“He gave a tax break to everyone making more than $250,000 and off-set that by taking money away from cities and towns,” Partington said.

Since then, according to information from current-Gov. Linc Chafee, who has recently railed against Carcieri cutting money to struggling cities, Woonsocket has lost out on some $12 million.

For the past several years, the city has been raising property taxes at or close to the maximum amount allowed under state law, but it wasn’t enough to make up for the loss from the state. Meanwhile, the schools kept expecting more education aid from the state. They’ll get an additional $6 million under the new funding formula that goes into effect this year, but the additional money isn’t expected to be fully phased in for at least another seven budget cycles. Woonsocket and Pawtucket are currently suing the state saying that isn’t soon enough.

Partington said the schools initially used ARRA funds to mask the ensuing deficits. This proved to exacerbate the problem.

“We were running expenses higher but we didn’t know it yet,” he said.

In 2011, the town council called for an audit of the school department’s budget and investigators identified a $2.7 million hole.

The newly-hired business manager Stacey Busby convinced the council auditors were seeing something that didn’t exist. But a closer look this year proved her wrong, and the deficit was said to be as high as $7.3 million. In March, the she was fired though the school committee voted against pursuing a criminal investigation.

“I guess she misrepresented what was there,” Partington said. “Everyone is interested in having a balanced budget. Sometimes you just put something down and pray it works out.”

RIDE: Woonsocket School Takeover Not Imminent


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“There’s a lot of legal steps that we would have to go through” before the state department of education would take control of the school system in Woonsocket, said RIDE spokesman Elliot Krieger this morning.

“There has to be a determination that there is a fiscal crisis,” he said. “We would not be the agency to do that.”

Krieger added, “It’s a pretty extreme step. But the state has gone that route before.”

In the early 1990’s, responding a fiscal crisis in the Central Falls school system, the legislature passed a law that allowed for the department of education to take over funding and management of the schools there. In that instance, Central Falls – like Woonosocket did last night – asked the state for help.

Below is the state law that would determine how – and if – a state take over would happen. It says a school committee “may … request the department of elementary and secondary education to assume the supervision, control, and management of the public schools. Upon receiving the request the department, if it is satisfied that the request is warranted and that the best interests of the public schools would be served, may assume supervision, control, and management.”

16-1-10  Assumption of control of city or town schools by department – School lunch program. – (a) The school committee of any city or town in which the taxable property is not adequate, at the average rate of taxation for public school support throughout the state, to provide with the money that may be apportioned from the general treasury an amount sufficient to provide and maintain public schools of a high standard, may at a regular meeting held before the first day of July in any year request the department of elementary and secondary education to assume the supervision, control, and management of the public schools of the city or town for the ensuing year; provided that the city or town has appropriated for the support of public schools for the year a sum equivalent to thirty cents (30¢) on each one hundred dollars ($100) of the assessed valuation of the city or town. Upon receiving the request the department, if it is satisfied that the request is warranted and that the best interests of the public schools would be served, may assume supervision, control, and management.

Krieger said Education Commissioner Deborah Gist has been in touch with Woonsocket officials and RIDE’s finance director has spoken with the state-appointed budget commission.

“There are other things we can do to provide help and assistance,” Krieger said, “like helping to design a budget. It’s not like there is a pot of money but we do have some expertise and technical support.”

 

 

 

Progress Report: Woonsocket Asks State To Take Over Local Education, Pot Decrim, So Long Bob Watson


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Forget receivership – for now, anyway – the Woonsocket School Committee has another idea to solve the struggling city’s budget crisis. The school committee last night voted 4 to 1 to have the state take over the local schools. More later this morning on what happens next.

The Projo has two great pieces of journalism on Woonsocket today … one is a profile of the now-infamous Rep. Lisa Baldelli-Hunt (link not available from Projo) and another on how the local talk radio network factors into Woonsocket politics.

Ted Nesi falls into the old trap of tacitly blaming municipal financial issues on employee benefit packages. He rightly points out that the city failed to put some $6 million into its pension fund since 2008, but neglects to mention that during that same time period Woonsocket lost more than $12 million in state aid.

That said, Woonsocket’s main fiscal problem is a $10 million school deficit, ostensibly a result of bad book keeping by management. But watch how hard the media and others try to pin the problem on public sector unions … maybe Tim White can even find a lazy city employee to follow around.

For the time being, though, Woonsocket teachers won’t lose their jobs. But definitely stay tuned…

Rhode Island is now the 15th state to decriminalize possession of less than an ounce of pot, a move that will save tens of millions of dollars.

No one made covering the State House more entertaining than Bob Watson. He will be missed…

One question every reporter in Rhode Island should be asking: how did Bank RI make a loan to 38 Studios based on collateral that didn’t exist yet.

Johnson & Johnson is dropping out of ALEC, joining Walmart, Coke, Pepsi and the Bill and Melina Gates Foundation and about 20 other well-known major corporations.

Need a little summer? Then watch this video of a deer smelling me I got last night where the Maskerchugg River flows into Greenwich Cove:

Feds v. States: Who Decides Death Penalty Fight


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Can the Feds order a state to execute a man?  This is the question that the Supreme Court may ultimately answer regarding Jason Pleau, arrested last year for killing a man during a robbery.  What appeared to be a routine case in Rhode Island, a state of one million people that averages about 30 murders per year, has turned into a legal battle about state’s rights, the 10th Amendment, and the Death Penalty.  And the question of whether a Governor can ever defy a President.

The federal death penalty is legal in every state in America.  There are over 30 federal statutes authorizing the death penalty for any American, including a generic 1st Degree Murder, and it would be difficult to imagine a case that would not qualify under federal law.  Certainly when the people of Rhode Island eliminated the death penalty, they did not consider it would be alright if a courthouse bearing the “United States” logo rather than the Rhode Island “Hope” motto, could sentence a man to die.  The same jury pool of Rhode Islanders would be drawn upon, yet anyone with an objection to the death penalty would be barred from serving on the jury.

Attorney General Eric Holder amended the Federal Death Penalty Protocol (DPP) last year, in an attempt to assist Attorneys General such as Peter Neronha (District of RI) regarding when to seek this punishment.  There is no regard as to whether a state has abolished the death penalty or not, but states that the Feds should only take the case from a state when “the Federal interest in the prosecution is more substantial than the state or local authorities.”  Here, the only factor that seems to apply is the vague “ability and willingness for the state to obtain an appropriate punishment upon conviction.”  Perhaps this is a snub at RI State Attorney General Peter Kilmartin, a career police officer who apparently never handled a felony case.

The DPP guidelines do suggest that victims’ family members be consulted, yet this is a quandry in prosecutions: whether the government stands in for a particular victim, or an entire state.  A victim’s family in Mississippi tried to stop the execution of Henry Curtis Jackson.  He was instead killed by lethal injection yesterday.

After sentencing Jason Pleau to 18 years in state prison for parole and probation violations, a federal grand jury indicted him.  The U.S. Attorney then put in a request to take him into custody under the Interstate Agreement on Detainers Act (IAD).   Governor Lincoln Chaffee (known as the Republican who opposed President Bush on the Iraq war and domestic wiretapping) denied the request under Article IV of the IAD.  The feds then tried to evade this federal Act with a second type of request.  The state asserts that once the federal government puts in a “hold” under the IAD, all future requests to produce Pleau are covered by the provisions of the IAD- no matter what you name it.  This is how it played out, and a three-judge panel of the First Circuit agreed (2 to 1) with Gov. Chaffee, who believes the only reason the federal government would want Jason Pleau is to execute him.  Particularly after Pleau agreed to serve Life Without Parole in state prison.  This is known as the Other Death Penalty.

The Obama Administration, however, asserts that their request was not covered by the IAD for two reasons: (1) the Habeas Corpus ad Prosequendum they filed is outside of the IAD procedures, and (2) the federal government reigns supreme (as laid out in the Supremacy Clause of the constitution) and a governor cannot refuse the request.  The problem with the Feds’ first issue is that the traditional method of transferring prisoners between jurisdictions has been supplanted by the IAD, and they did in fact begin IAD procedures prior to the traditional Habeas.  The title of the paperwork is irrelevant, and the First Circuit agrees.  As for the Supremacy Clause argument, it is difficult for the United States to say they do not need to obey the IAD when they are listed as a party, along with 50 states, D.C., Puerto Rico, and others.  If they have some special status, why bother writing rules that apply to the United States at all?

The First Circuit Court of Appeals, however, credits the United States with the trump card: the Supremacy Clause.  Three judges interpreted a key case to mean the U.S. is above the limitations of the IAD.  Two judges, in their scathing dissent, took the majority to task for what they feel was an “unprincipled” misreading of the key case, U.S. v. Mauro, 436 U.S. 340 (1978).  The dissenting two justices called the ruling “unwarranted and unprecedented,” and “fails the test of common sense.”  As it stands, the split opinions of five judges are the difference between putting the executioner’s hood over the heads of a Rhode Island jury.

It was only a year ago that I, and about a dozen others, testified in the Rhode Island legislature’s bill to posthumously pardon the last man murdered by the People.  Historians testified about the malice of a vindictive crowd, and the racist furor that suspended rational judgment: someone had to pay.  In 1844 it was John Gordon, and seven years later this punishment was abolished for it.  The Public Defender spoke about the current need for best practices in eye-witness identifications and the necessity of videotaped confessions (two reforms advancing in RI).  I spoke about how a similar pair of Irish scapegoats, the Brennan brothers, were railroaded in 1984 for the murder of an Italian landlord in Providence.  They are still in prison.  Here, nobody has argued that Jason Pleau, who was once the catcher on my softball team, is innocent.  However, death penalty supporters are just as certain of guilt when a convicted person is later exonerated.

Rhode Island has filed a petition for certiorari, seeking review in the U.S. Supreme Court.  Justices may find their ideologies torn, such as Antonin Scalia who often speaks of states’ rights in the face of an overbearing federal government, yet he rarely finds a wrong when it comes to the power of the government to exert police powers, and administer the death penalty.  Some say that judges take a moral position, and then manipulate the law to reach it.  Yet as to whether the IAD applies to the federal government, it will be difficult to get around Article II, which reads “(a) ‘State’ shall mean a State of the United States; the United States of America; a territory or possession …”    It will also be difficult to affirm the First Circuit’s belief that Governor Chaffee can’t deny the federal government, where the Act reads “the Governor of the sending State may disapprove the request for temporary custody.”

To do so, the Court might have to say Congress lacked the authority to grant a Governor power over the federal government.  Yet the federal government signed onto this agreement, and now they want out.  Those who advocate for States Rights use it to define marriage, gun laws, and many other issues (it once was a code word for allowing Jim Crow laws), including the Death Penalty.  This legal battle will cost the taxpayers about a million dollars, just to see what will happen to Jason Pleau, a man that none of them likely care an iota about.  Sometimes I wonder what gets people up in the morning.