Jessica Ahlquist featured in PBS show on Constitution

Constitution USAAt 9pm on Thursday evening, May 16th, the second episode of Constitution USA with Peter Sagal will premiere on channel 36, Rhode Island’s PBS affiliate. This episode prominently features the Cranston West Prayer Banner case and interviews both Jessica Ahlquist (my niece), the high school student who successfully had the banner removed, and David Bradley, the man who was the student in 1963 who wrote the prayer.

The show also features footage shot by yours truly during the Cranston School Committee meetings held to discuss the prayer banner.

If you don’t want to wait, you can watch the show right here.

Watch It’s a Free Country on PBS. See more from Constitution USA with Peter Sagal.

May 2: ‘Day of Reason’ in RI

sca.ri.logoLost in the mad dash to pass marriage equality in our state was the official announcement that Thursday, May 2nd was the “Day of Reason” here in Rhode Island.

From the press release:

The Humanists of RI and The Secular Coalition for RI are pleased to announce, pursuant to their request, that on April 30, 2013 Governor Lincoln D. Chafee issued a State of Rhode Island Gubernatorial Proclamation officially declaring May 2 the Day of Reason in Rhode Island. In doing this, Governor Chafee helps raise awareness throughout the State of Rhode Island of the importance of Reason as a guiding principle of our secular democracy. (See signed Proclamation below.)

Humanists of RI and the Secular Coalition of RI join with The National Day of Reason, a consortium of leaders from within the community of reason endorsing the idea of a National Day of Reason. This observance is held in parallel with the National Day of Prayer, on the first Thursday in May each year. The goal of this effort is to celebrate reason—a concept all Americans can support—and to raise public awareness about the persistent threat to religious liberty posed by government intrusion into the private sphere of worship.

This is the first effort of The Secular Coalition for Rhode Island, a group that will be advocating on issues of importance to the local secular community.

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

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

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.