On the master lever, I am a hypocrite


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ML pic pulledOn Monday morning, I argued that abolition of the single party option (SPO, better known as the so-called “master lever”) should fail, even though it’s good policy to abolish it. In it, I argue the opposite for what I’d argued about five months before: that regardless of the benefit abolition would accrue for proponents, it should be eliminated as a matter of good policy, and even as a matter of good politics for the establishment.

As Ken Block, the lead advocate for the abolition points out, that makes me a hypocrite. Block also points that I’m essentially advocating to keep voter confusion for the elderly, less educated and black until such a time as a larger reform can be passed so a better system can be created. Basically, even though we know the car of elections has a whole host of issues, I’m suggesting we don’t fix this one part now.

I can’t deny that this makes me hypocritical. The earlier post is right and the second post is wrong. But that doesn’t comfort me much.

Because now we’re in a discussion about tactics for long-term change. Winning a battle isn’t winning the war, and if your war is for greater representation in our democracy, then the master lever is a not particularly important battle and it absorbed far too many resources and far too much time. It’s a sideshow campaign; we know that early voting increases turnout. We know that first-past-the-post voting systems (where a candidate only needs a plurality to win) favor two-party systems with one or two exceptions in the world. And we know that Rhode Island’s electoral system is rigged (both presently and historically) to favor two parties, and usually the incumbent one at that. We also know that eliminating the master lever reduces the number of erroneously filled-out ballots. It’s not a sea-change issue.

It’s also an issue that, unfortunately, encompasses Ken Block.

And due to his advocacy it’s something that really can’t be divorced from him, and by extension, his political party. That’s probably why it’s pretty much dead at this point. Passing it would be a political win for the Moderate Party and they don’t even have an elected politician. The problem with Block is that he can’t recognize that his position as Moderate Party chair makes him a partisan (it’s literally is derived from a word for “defender of the party”). It means that everything he touches becomes tinged by politics. He says he’s a partisan “for non-ideologically based politics and governance” in which case he’s a partisan for unicorns. Politics without ideology is politics without politics. There is no such thing as a non-ideologically driven political actor and for Block to profess to be such an actor makes him either a liar or a fool.

Let’s get back to tactics, because talking about Block reminds me of a good comment Jason Becker made on Monday’s post; that it’s bad to throw out good policy because of the messenger. Block isn’t really the issue, he’s the quintessential do-gooder who does no good. I’m not worried about what happens when the master lever issue ends. Will that be it? We’ll hold a celebration, everyone will slap each other on the backs for a job well-done and they’ll all go home. Elections solved! Democracy free and fair!

A few people will make fewer mistakes. But the resources devoted to abolishing the master lever won’t return to advocate for the next issues in improving our elections. Higher turnout increases Democratic votes; so don’t expect the Moderates and Republicans to join in on anything that would do that. Campaign finance reform will help people who aren’t beholden to corporations or high-money players, so don’t expect businessmen concerned about “economic competitiveness” to start howling for that. This isn’t a bill in most of the advocates minds about helping the less educated, or elderly, or black. It’s a bill about breaking an institutional advantage for Democrats.

How do we know that? Because let’s look at the events that preceded John Marion’s piece in RI Future. The SPO abolition camp had never pointed to the seven-year-old study Marion cited until the Monday of the Boston Marathon. I applauded Marion for that piece at the time, because it rescued the SPO issue from Block’s poor shepherding of it.

When faced with the setback of the bill being held for further study, Block attacked Speaker Fox and Sen. Harold Metts as needing the SPO to win their races. And it stunk of politics. It reeked of political anger. Block had passed around erroneous ballots, but it wasn’t clear what that meant, whether they’d been scratched on purpose or whether they were the result of legitimate confusion. The problem with anonymous voting systems is you can’t ask people what they meant to do.

Marion saved the anti-SPO campaign from itself, in my view. I would never dream of speaking for him, because Common Cause is in it for the long haul and wants good government whether you’re Dem, GOP, Mod, Green, or Indy. Which is typical of an advocacy organization. When Marion writes, it’s from a place of deep expertise and understanding.

When I write, it’s from a place of passion, and often speculation. I warn readers about that pretty consistently. Push back, question me, etc. I enjoy the fight. I also enjoy watching the Moderate Party, because I enjoy watching fringe political movements. The Moderate Party is a fringe movement. It’s a fringe that claims to be in the center. But frankly, so what? Every fringe claims to be mainstream. There’s only one person in the Moderate Party who matters; Ken Block. Why does he want to abolish the SPO? He’s been quite forthcoming about it; potential Moderate Party candidates won’t run if the master lever bogeyman is out there. How was this issue not politicized and ideological?

Block’s mismanaged the master lever campaign. He made himself the face of it. And did he offer up a win to politicians? No. He didn’t bother. He didn’t bother doing the political part of politics. Contrast this with the marriage equality movement. Not only did the marriage equality forces offer up a real threat in the form of primary and general election challenges to anti-equality politicians, but they also offered support and publicity for pro-equality politicians. Marriage equality played a long-term game, they fought, and when they faced a setback they came back with a vengeance. And it worked.

Can Block offer this same combination of stick and carrot? No. He can’t even get more than a few people to stand up for their political beliefs (their ideology) and actually run. And he can’t offer politicians support, because none of them are Moderates; nor does Rhode Island have a system of electoral fusion to allow candidates to run under multiple party banners (another reform that could help). Instead, he’s focused on a paternalistic shame campaign targeting the House Speaker and Senate President. And the genuine mainstream responds to the fringe the way it generally does, with a shrug.

Some days I agree with Ken Block. I want SPO gone so more third parties can succeed. I want the Moderate Party developed so we can actually see it in action. And then I see what he does with any kind of press, and I hope he never has success because the Moderate Party under his leadership will try to save our social safety system by destroying it. That the Moderate Party in Rhode Island are just re-branded Rockefeller Republicans.

F. Scott Fitzgerald once wrote that “the test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function.” I would never profess to have a first-rate intelligence, but I can hold two opposing ideas in my mind. And I’m still functioning. Hypocrisy.

Raimondo pushes pension cuts to Bay Area CEO’s


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gina manhattan instituteThe Providence Journal reports that Gina Raimondo was in San Francisco recently selling her pension cutting playbook to a group of San Francisco business leaders.

The Bay Area Council, which bills itself on its website as a “a business-sponsored, public policy advocacy organization for the nine-county Bay Area. The Council proactively advocates for a strong economy, a vital business environment” and on its YouTube channel as a “CEO-led public policy and advocacy group working to improve the business climate and promote economic growth in the San Francisco/Silicon Valley Bay Area and California.”

The CEO advocacy group is led by the leaders of the biggest corporations in the Bay Area; it’s chairwoman is from Bank of America and its treasurer from Wells Fargo. Other companies represented by corporate bosses include accounting powerhouses, giant local real estate firms, the 49ers, the Giants, oil and gas conglomerates, communication giants like AT&T and credit card companies and tech giants.

The CEO advocacy group is probably best known for organizing and helping to fund Gov. Jerry Brown’s recent trip to China and pushing for greater trade with that country.  It boasts a pretty diverse list of issues it chimes in on – including climate change and healthcare. A big focus of the CEO advocacy group is in the area of “education reform.” Here’s how it describes this effort: “The Bay Area Council is working to reform California’s education system by creating a strategic plan to put in place a data system and reform finance and governance.”

According to the Providence Journal, Raimondo’s staff chose not to discuss who raised money for her.

38 Studios bonds: Don’t default and don’t repay


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lux burger schillingIn my last post I insisted that Rhode Island needed to keep its word and not default on the 38 Studios bonds. I know more now, and my conclusion has changed.

After much discussion with Randall Rose of Occupy Providence, who educated me quite a bit, and Sam Bell of RIPDA, I looked into the relevant documents in detail and rethought the 38 Studios bonds default/repayment issue. Most of what follows is derived from Randall’s research. I’m only going to cover the directly-relevant points of what convinced me to change my tune; I’ll leave the full story to Randall to write.

First, a little background on bonds. There are two basic types. General Obligation bonds are fully backed by the state, including use of its taxing authority to cover the bonds. In Rhode Island’s case the voters have to approve the bonds via a referendum.

Revenue bonds, the second type, are issued by non-state authorities who repay the bonds from income generated by the activity funded by the bonds in the first place. They are typically used to avoid getting the approval of the state’s voters for their issuance.

“Moral Obligation” bonds are Revenue bonds with perhaps a casual (or more rigorous) assurance by the state that it will repay the bonds if there is a default. HOWEVER: more often than not detailed or specific guarantees don’t appear in any document. Moral Obligation bonds are very fuzzy, seemingly used to make Revenue bonds be as safe as General Obligation bonds while providing a higher interest rate to the investors (bondholders).

The 38 Studios bonds are revenue bonds issued by the quasi-public RI Economic Development Corporation. BUT: are they moral obligation bonds? Is the situation just really a matter of keeping our word to cover them? No and no indeed.

The most important and telling documents in this case are the 38 Studios and EDC Loan and Trust Agreement and the RI law governing the rules of these specific loan guarantees. Let’s take a look….

In the Loan and Trust Agreement on page 9 is the text:

“This  Bond  is  issued pursuant  to  and  in  full  compliance  with the  Constitution  and  laws  of  the  State  of  Rhode  Island. This  Bond  is  a  special obligation  of  the  Corporation,  payable  solely out  of  the  revenues  or  other  receipts,  funds  or moneys  of  the  Corporation  pledged  under  the  Agreement  for  its  payment….

Neither the  State of  Rhode  Island nor  any  municipality  thereof shall be  obligated  to  pay  the  principal  of  the  Bonds, the  premium,  if  any,  the  Redemption  Price  or  the  interest thereon.  ….”

(Emphasis is mine.)

This seems pretty clear. In general, a moral obligation might influence the state to cover the bonds. However, no where in the document is the word “moral” much less the term “moral obligation.”

The law referred to above creates the “Job Creation Guaranty Program” for the EDC. This is the program that created the basis for the 38 Studios bonds and EDC guarantees. About halfway into the law is the text:

“During each January session of the general assembly, the governor shall submit to the general assembly, as part of the governor’s budget, the total of such sums, if any, required to pay any and all obligations of the corporation under such guarantees or bond obligations pursuant to the terms of this authorization. All sums appropriated by the general assembly for that purpose, and paid to the corporation, if any, shall be utilized by the corporation to make payments due on such guarantees or bond obligations.”
(The emphasis is mine.)

“Moral” does not appear anywhere in the law, and recall it’s not in the Loan and Trust Agreement. Nor could I find it in any of the other subsidiary documents on the EDC’s 38 Studios page.

The sum total of what all this means is that if the EDC doesn’t have the money to pay off the 38 Studios defaulted bonds, all that has to be done on the part of the state is:

  1. The Governor must ask for the EDC-desired funds in his/her budget presented in January of every year.
  2. The General Assembly is not required to honor that request; it can be removed from the final General Assembly-approved budget.

So, the law effectively states that RI doesn’t need to back up the EDC (for this program). Note that the state has NOT defaulted on any obligation; there is nothing to default on. Thus, the state does NOT need to repay the bonds.

There are, of course, other concerns, such as retaliation by the bond market against Rhode Island via lower bond ratings, etc. However, from other cases in the US, if there is an effect it will probably not be large nor last long.

My apologies for not knowing enough when I wrote my last post; “moral obligation bonds” are a cypher and intentionally vague and misleading. The more one learns the more one may need to modify his/her views. I still believe Rhode Island needs to stand behind its word; in this case it hadn’t given it.

What are your thoughts on the above? Please add any information in the comments you feel will help the discussion. Thank you.

Why master lever abolition should fail, for now


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ML pic pulledAbout a month ago, Common Cause RI Executive Director John Marion wrote a great piece here on RI Future explaining exactly why the single party option (aka the “master lever” or SPO) on Rhode Island’s voting ballots is a bad idea, citing a 2006 study by researchers at the Universities of Maryland and Rochester that demonstrated it produced confusion for voters over the age of 75, less educated voters, and black voters (the study was less confident in the assertion that SPO produces undervotes, where a person didn’t select a candidate for a race). It’s pretty clear that abolishing the single party option would end that confusion at the polls.

So why should the push to end this miserable state of affairs fail? Because it’s not about voter enfranchisement. Well, for Common Cause it is. If we really wanted voter enfranchisement, we’d talk about things like ending elections on a working Tuesday and moving them to the weekend or making Election Day a paid holiday. We’d see a push from the same forces howling about the “master lever” for early voting. Or automatic mail ballots. Or automatic voter registration. Perhaps they’d even being calling for campaign finance reform. Or instant run-off voting to end the first-past-the-post system that currently allows people who win only a third of the electorate to become governor. Or lowering the bar to become a political party.

Common Cause advocates for a lot of those things; but Common Cause isn’t necessarily making the headlines. We’ve seen Ken Block ask questions like “do we really want uninformed people voting?” Yes! The answer to that question is always an emphatic yes! Everyone should vote, and if you can’t get everyone, get most of the people. Right now, to win an election, you only have to win a plurality of a minority. We’re seeing pie-in-the-sky conservatives rally for this, even though it’s not going to solve their issue of being generally unelectable.

Abolishing a ballot option that causes voter confusion isn’t what makes good government. Good government is the kind of government that is responsive to people who don’t necessarily have the time to make the talk show circuits and write press releases. The master lever should be abolished when the issue is not just a vehicle for a single person to gain media coverage, but when it’s part of a full-scale overhaul of elections aimed at making this a government where all voices are heard.