The Public Education / Transportation Challenge


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I’ve found a way for the Providence Public School System to save more than $400,000 annually in transportation costs.

Every month, the School Department buys thousands of RIPTA bus passes, which it distributes to high school students from low income families or who live more than three miles from their school. In May of 2012, according to RIPTA, the School Department purchased around 2,000 bus passes.

How much does the city pay for these? Full price: $62 per pass.

After making several phone calls, I learned that RISD and Brown University, which issue passes to their students and faculty, pay $1.15 per ride, if the number of rides exceeds 500,000.

If the Providence Public School system used this model, the savings to the schools would be more than $400,000 annually. The savings actually increases because this year, the school is giving out more bus passes to ninth graders.

The School Department’s goal is to get students from their homes to their classrooms. If “giving” them a bus pass makes that happen, then they believe it’s money well spent. At the same time, someone needs to use the power of those numbers negotiate a better deal for Providence.

The downside, of course is that this means a $400,000 annual cut to RIPTA.

What is a supporter of both public schools and public transportation to do?

Imagine abundance and pleasure in public transportation

Last week, while the Republicans were busy in Tampa imagining a future with no taxes, smaller government, no unions and a plethora of jobs and millionaires, was  dreaming about how we can get around our small state for the next 50 or so years.

I call for Rhode Island to become a leader in public transportation for the 21st century. Through an integrated system of trolley, bus, light rail, and commuter rail, citizens will be able to quickly and efficiently get to work, market, other cities and towns, and even to the beach. They’ll even be able to ride home after a late movie or show. (Currently RIPTA service ends around midnight.)

A high quality public transportation system will change the demographics of Rhode Island. It will encourage smart growth and eliminate sprawl.

I call for a system that can elegantly handle a tenfold increase in ridership within the next 10 years, reducing the need for one car per resident, reducing wear and tear on the roads and highways, and decreasing pollution and carbon waste.

Riding the bus doesn’t need to be free, but it does need to cost less, become more efficient and get you where you need to go when you need to go there.

We need a public transit authority whose goal is to maximize and increase ridership. As citizens we need to find a different model to fund it.

Current RIPTA funding is based on a fixed percentage of the tax on gasoline. This means that every time the price of gas goes up and people drive less, revenue for RIPTA goes down at the same time that the bus company is paying more for fuel and the ridership increases. This leaves RIPTA with less money to provide more services.

If we are determined to fund RIPTA through a gasoline tax, then it must be a percentage of the cost of gas, and a higher one at that – except that won’t work because people will drive out of state to buy gas. If we fund RIPTA through automobile registration, we must plan for a time when there are fewer automobiles registered. We must explore other options—public/private cooperatives, trolleys systems, jitney buses and so on.

Ultimately, to create a 21st century public transportation system, we must decouple RIPTA and the automobile. The goal of public transportation ought not to be just to provide free transportation to seniors , students and the disabled, but to reduce the need for and impact of cars on our cities and towns.

The Numbers

Approximate number of High School Students receiving bus passes in May 2012: 2,000
Number of days in the school year: 180
Cost of 2,000 bus passes per month for September-June: $1.24 Million
Maximum number of rides for those students during that time: 720,000
Cost of 720,000 rides @$1.15 per ride: $828,000
Minimum estimated annual savings to School Department: $412,000
Dollars cut from RIPTA, if these savings are implemented: $412,000

 

Many Unemployed, Fewer DLT Equals Big Problems


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Governor Chafee (Photo by Bob Plain)

So Governor Chafee has justified the reduction in key staff of the Unemployment Insurance and Workforce Development sectors of the Department of Labor & Training by saying that our economy is improving sufficiently enough to justify the layoffs.

In a June 7th interview with WPRO, the Governor stated:

“Well, the DLT is the opposite of the economy. When the economy is bad they are hiring to deal with the unemployment insurance issues and as the economy stabilized, unfortunately, it goes the other way. They start to layoff those employees that they had to hire during the glut of unemployment insurance requests.”

Realistically speaking, this means a reduction in service center employees from around 90 to around 35. So Rhode Islands’s economy, by gubernatorial logic, has improved over 65%. When did that happen? Where were we? Didn’t 38 Studios just take a flaming nose dive into bankruptcy, crashing into Narragansett Bay in spectacular fashion? Didn’t Blue Cross just let over 40 employees go? Is there a secret, hidden construction boom going on? Is manufacturing on the rise? Does Mr. Chaffee realize that having the second highest levels of unemployment in the country is not worthy of a silver medal? Or is he simply not satisfied until Rhode Island wins first place at something?

Or is it something else?

Changes in Rhode Island laws are a matter of public record, but not often a matter of public knowledge. As of July 1st 2012, Rhode Island Labor Law 28-44-6 has undergone a fairly drastic change that will significantly reduce the means by which unemployment insurance weekly benefit rates are calculated. Without going into the formulaic details of the change, it is enough to say that it will reduce the weekly benefit rate in almost all cases. Come this time next year, the weekly benefit rate reduces again and as of July 1st, 2014, it reduces once more. In a state where over ten percent of claims include out of state wages (primarily due to the small geographic size of RI and it’s proximity to CT and MA), this reduces the incentive for claimants to choose Rhode Island as the state where they would receive a benefit rate most comparable to the income they were receiving prior to layoff.

Maybe. But not necessarily. Previously, Rhode Island was often the obvious choice when given the option to request the combination of out of state and Rhode Island taxed wages because of the generous means by which our weekly benefit rate was calculated. Now it will be comparable in many cases. But not significantly reduced. The more likely incentive will be for businesses who will be able to lay workers off with less of a payroll tax rating percentage increase. Good for “job creators” when they choose to be “job eliminators.”

Another change in the Labor Laws is the means by which a disqualification can be overcome. Previously, if a claimant was determined to be separated from an employer for disqualifying reasons – getting fired for wilfull misconduct or quitting without good cause – one needed only to return to work after the date of disqualifying separation for eight weeks and earn twenty times Rhode Island’s minimum wage for each of those weeks (8X$148) to overcome the prior disqualification and be allowed to collect on subsequent separation from employment. Now one must return to work for at least eight weeks and earn at least his or her weekly benefit rate for the disqualification to be overcome. This will prevent many from being able to collect after a single disqualification, even after redeeming themselves by returning to work and being separated again through no fault of their own.

Rhode Island has the right to know about changes that will affect the safety net of over eleven percent of it’s people. These same citizens also have the right to know that, while these changes – the reduction of key workforce at the DLT, the reduction of benefits, the increase in difficulty of overcoming disqualification of receipt of said benefits – may benefit the few (the job creators who create no jobs), they disenfranchise the many.

These decisions are not math, they are politics and, in spite of the deliberate confusion on the part of many politicians, there is a difference. The workload at the DLT has not reduced. The wait times for incoming calls to the call center have routineley exceeded one hundred minutes over the past few weeks. The back office functions and specialized  are falling far behind and work is piling up. After the two thirds reduction in front-line employees and the eliminations of entire sub-sections of specialization, things will not get more efficient. I will reiterate, this is math. Politics can not change math no matter how hard it tries.

Eleven percent unemployment. Insufficient training for a struggling workforce. Second highest unemployment rate in the country. 65% reduction in front line workforce on the front lines at the Department of Labor & Training. That is the math problem. Solve for X using politics.

Summer Is Here and So Are the Sailboats

Right on cue, Summer Solstice arrived on June 20 and ushered in temps well into the 90’s, providing the first blast of real heat for Southern New England this year. It was about time too, the choruses of “When is it going to warm up?” were getting a little stale.

Well, warm up it did. With schools out and summer vacation just getting into full swing, the shoreline beaches were packed today and the roadways leading to them were clogged starting early in the morning. Routes 4, 1 and 102 were at near standstills around noon today and the traffic was sustained well into the afternoon as those who couldn’t get to the beach early,  made their way down later in the day.

Across the bay in Newport, the situation was much the same, except in the case of the City by the Sea, there is a cruise ship anchored offshore and plenty of tourists were on hand in the city’s shopping and tourist areas, spending money and providing a much-needed boost to the state’s economy.

The tourists in Newport also got to see a real show today, as the eight teams vying in the America’s Cup Race Series were all in the water today, testing the carbon fiber hulls and various sails in advance of next week’s races, scheduled to kick off on Thursday.For those unfamiliar with America’s Cup racing, the ships have evolved over the years but the premise is the same; just think of it as NASCAR, for the very rich.

The RIEDC has done a fantastic job putting this event together, partnering with America’s Cup Race Management and NBC Sports, among others. Unlike America’s Cup races here in years past, these races will be visible from shore and the base at Fort Adams will provide spectacular views of the action from very close in-shore. There will be plenty of other activities on site with action taking place from 11 am – 7 pm from June 28-July 1. Prior to the 28th, entrance to Fort Adams and the racing facilities will be free, anyone wishing to attend on race days will have to purchase tickets and pay to park.

Layoffs Could Cause Crisis for Unemployed Rhode Islanders


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Recently, the DLT has been informed of an unprecedented reduction in workforce. Up to sixty-nine employees are scheduled to lose their jobs on July 28th, 70 percent of these are to come from the Unemployment Insurance sector. The irony of going from working to serve unemployed citizens in their time of need, to being one of those in need of such assistance is not lost on us. This layoff is guaranteed to significantly decrease the department’s ability to provide the necessary level of customer service.

The bottom line is this: Rhode Island’s employment situation is not improving quickly and this mass layoff of frontline workers is going make more acute the pain unemployed Rhode Islanders are already feeling.
At 11% unemployment Rhode Island already has the second highest jobless rate in the country. The Rhode Island Department of Labor & Training provides that assistance with its divisions of Income Support and Workforce Development for the approximately 62,000 Rhode Islanders out of work.

At its current staffing levels, DLT is already it struggling to keep up with the demand for services. I know this because I work as a Senior Employment & Training Interviewer with Unemployment Insurance. I am one of the many representatives that work hard to ensure fair and timely processing of payments within the increasingly complex system of jobless benefits.

The cutback in staff will exponentially delay benefits payments to those facing extreme hardship. It will hold back dollars from flowing into economically starved local economies. Entire specialized sectors of benefits specialists could be eliminated, including but not limited to the already challenged office dedicated to processing military claims. This will lead to extremely long delays in benefits to those men and women in uniform, returning from service. Our veterans have honorably served our country and are owed the highest quality of service the state can provide.

Finally, the State of Rhode Island is a direct reimbursable employer. This means that they are responsible to pay the employees that they lay off dollar for dollar when these employees file for Unemployment Insurance. This burden falls ultimately to the taxpayer. Therefore, Rhode Island’s taxpayers will be on the hook for upwards of one million dollars in benefits paid out to laid off DLT staff to perform no services to Rhode Island citizens. This estimation does not include subsidizing health insurance for the out of work employees and their families. I know, personally, my wife and infant daughter will be forced to seek public assistance to help pay the high costs of staying insured.

Is there a solution? I think so. The state of Rhode Island needs to create a plan to find and allocate funds to maintain appropriate staff levels at the DLT. When a house is on fire one does not take the firefighter’s hose and replace it with a watering can. Rhode Island is our house and it is burning. Rather than reducing the economic stream that can help contain this fire and eventually extinguish the blaze, the state needs to locate the funds and allow them to flow to where the fire burns brightest: the people who need it most.

An Autopsy of RIEDC


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As the dust slowly settles on the carcass of 38 Studios, plenty of questions remain, and you can bet the entrails will be picked over thoroughly. Some of the most entertaining questions are about how the debacle happened, since it’s such a delicious tale of arrogant insiders getting their comeuppance. (Of course it would be more delicious if we weren’t on the hook to pay for it.)  But there are also dull questions about important matters: what to do with the state’s economic development apparatus, the Rhode Island Economic Development Corporation.

RIEDC was formed under the Almond administration, when the Department of Economic Development was closed and those responsibilities moved over to the Port Authority, which was renamed. The Port Authority was chosen because of its unlimited bonding authority, a fluke of legislative drafting when that agency was originally created. As of 1995, when this happened, the only other agency with this kind of authority, the Public Building Authority, was discredited by DiPrete-era abuses and on the way out. In other words EDC was born with extraordinary powers and has used them extensively, which is partly why the state’s debt nearly doubled during the Carcieri administration.

In the 17 years since then, RIEDC has been through more directors than I can count. Some have been widely admired, and some just looked good. Keith Stokes, the current most recent director has, I believe, set a longevity record by lasting three years, though I welcome reader corrections to my director timetable. He is widely held in high regard, but the agency has a vague and difficult set of goals, so no one should be surprised when the failures are legion and the successes short-lived.

The 38 Studios debacle reminds longtime observers of previous ones, like Alpha-Beta, and the Wyatt jail in Central Falls. And just as the debacles recur, so do the ensuing reports. We’re all looking forward now to a report from the RI Public Expenditure Council about how to shake up EDC.  But that’s nothing new, either.

Three years ago there was a report about EDC from a panel of worthies headed by Al Verrecchia, chairman and former CEO of Hasbro. The panel suggested that EDC needed shaking up, but their report ultimately contained precious little of use about how to do that. For example, the report said the agency was without focus and alternately complained they didn’t spend enough time working with already-existing local companies and that they didn’t have a good marketing approach to attract companies from elsewhere. Both might be true, but was the report’s suggestion that EDC concentrate on both really the best way to improve the focus?  The report was too easily interpreted as an endorsement of what EDC was already doing. Essentially, the message was “keep it up, but do it better,” even if some of the report text struggled to say something else.

What to do

It’s possible to see the agency’s discredit as an advantage. Might it be possible to dream that we can discard the destructive and expensive things the agency does and replace them with activities that actually help the economy? My vote for what’s really needed around here? Information.

EDC could usefully refashion itself into a research agency. If agency staff actually spent significant time studying the economy and the local markets in an intellectually honest and rigorous way, some practically useful recommendations for action would be bound to arise from that work. This is the kind of thing that no individual company can take on, but an agency like EDC could produce information vital to all of them.

Perusing the EDC web site, there is a lot of information available, but it’s all the kind of thing you can get from the PBN book of lists or from Census Department or BLS web sites. They provide a handy list of tax incentives and programs, but what do they provide to help people make business decisions?  That is, beyond “what government program should I apply for?”

On the EDC web site, I can learn which are the top employers in the state, and I can learn which economic sectors employ the most people, but there is precious little one might use to make important decisions. Where can I learn whether there is a shortage of machinists?  Who do I ask about unmet credit demand?  Is it banks or family and friends who finance most new RI businesses?  What proportion of venture-backed businesses survive five years?  What stage businesses have the most trouble getting credit?  What are the important barriers to export markets for RI businesses?

Who needs this information?  Someone who aspires to be a machinist would, of course. Someone who wants to start a business, or a bank interested in expanding its business lending portfolio, might also find it useful. A business contemplating expansion, perhaps. Oh, and General Assembly members who routinely assert that this or that would be good for the economy without any idea whether it’s really true could benefit. But most of all, the people who craft economic development policy would find real information vital. Or they should.

EDC is in a unique position that could allow it to gather — and analyze — useful data about the local economy. They could be doing business surveys, worker surveys, surveys of bankers and investors, analyses of credit markets, classifying foreclosures. They could be hosting conferences of academics to present research about these topics, or offering research fellowships at Brown or URI for economists willing to spend time looking at the RI economy. They could present a public lecture series on the subjects important to the state’s economy, modeled after the Geek Dinners (that a previous EDC director helped begin). In short, they could actually present valuable information to help people make important economic decisions.  Would it be expensive?  Not compared to the status quo.

Research doesn’t just mean accumulating information in a single place, even if that’s a handy service. It means analysis: counting things, classifying them, and coming to conclusions about them. It means tracking events and interpreting them. It means finding information that isn’t already available and creating the tools necessary to anticipate events and follow trends. It means cultivating a staff able to do these analyses and with the intellectual confidence to follow where the data lead, and whomever they offend.

This, of course, is not the path we’ve taken. What we have now is an agency that does some good service and quite a bit of harm. We have some important programs housed in an agency that frequently acts like nothing so much as a state-funded corporate lobbyist. Our state deserves better and wouldn’t it be nice to have an agency that tells us all what’s going on around us instead of hiding it?

Creative Sector of RI Economy Is Growing


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Sure, unemployment is still high in Rhode Island and the state has roughly 280 less jobs in the video game sector, but it’s not all bad news out there in the local economy. In fact the “creative sector” of the economy grew by 6 percent last year, according to a study by the RI Citizens for the Arts.

The creative sector – which includes performing and visual arts, museums, film, radio, and TV, design and publishing and arts schools and services – added 770 jobs between 2011 and 2012, according to the report and 460 new businesses were created, for a 16 percent growth.

Since 2007, the creative sector has added 52 percent more businesses and overall job growth has grown by 13 percent.

“Anecdotally, we’ve long understood the creative industries as a strong and resilient sector, and a significant asset to RI’s economy,” said Libby Slader, the chairwoman of RI CFA who owns an interior design firm. “With these compiled figures, we now also have concrete evidence. This is truly a solid basis for more growth and makes for a wise investment in our state. In addition to providing core industry jobs, the creative sector feeds innovation and entrepreneurship.

According to the release, Senate President Teresa Paiva Weed agrees. In a statement provided by RI CFA, she said:

“Rhode Island’s creative industries play an important role in building and sustaining a strong economy. This annual report reinforces the importance of this vital sector to our overall economic health. Jobs are being created in the arts-related businesses, which are important to tourism and broader economic development efforts.”

Governor Should Appoint Brian Hull to EDC Board


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It was good timing for me that former RI Future owner Brian Hull had to focus on finishing his studies at Harvard University earlier this year, giving me an opportunity to take over this site from him. Now it’s good timing for Rhode Island.

Hull just graduated from Harvard’s prestigious Kennedy School of Government with a Masters Degree in Public Policy focusing on economic development and social and urban policy and he would make an excellent and logical appointment to the state Economic Development Board.

In the wake of the 38 Studios fallout, there are currently as many as five vacancies on the EDC board. Instead of filling all those slots with the same type of local business leaders that typically inhabit the seats at the EDC table, Gov. Chafee should consider naming at least one person – and probably more – who understands economic development from a systematic perspective.

“The structure of the RIEDC lacks a presence of a theoretical understanding of economic development planning and that’s something I could bring to the table,” Hull told me, when I told him about my idea for this post the other day. “Rather than looking for the next best ‘deal’ which is how things are currently done, RIEDC really needs to focus on the larger picture of the state’s economy in relation to the region, play on its assets and strengths, and think about a long-term growth strategy that targets resources in focused way.”

Hull, who lives in Providence with his wife and plans to stay in the home they own, tried to get a job in economic development in Rhode Island. Instead, he landed a job as a senior policy analyst with the Initiative for a Competitive Inner City, a Boston-based “nonprofit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there.”

While he’ll be working with cities all across the country, he’s also looking for a way to stay involved with economic development here in Rhode Island, too.

I asked Hull what kind of experience he has successfully implementing economic development plans, and he sent me this list:

Rethinking Workforce Development for Providence’s Labor Force: A skills gap analysis for Providence’s labor force, review of the workforce development system servicing Providence residents, and a comprehensive actionable list of recommendations and implementation procedures to modify the current training system in order to improve service delivery, achieve better employment outcomes for Providence residents, and better engage low-income and low-literacy populations in job training programs to facilitate their employment.

City of Worcester Economic Development Plan: Formulate an economic development plan for the City of Worcester by undertaking four-part strategic assessment of the local economy to understand its strengths, weaknesses, and opportunities for leveraging additional economic development through a baseline analysis, development agenda, strategic focus on key areas, and detailed research and analysis.  The report (1) identifies key economic development opportunities and challenges in Worcester, (2) offers a strategy of proactive change to overcome those challenges and capitalize on opportunities, and (3) provides first steps to prioritize, target, and implement the strategy. The strategy synthesizes a variety of economic development approaches, and is rooted in Worcester’s context – inherent assets, established partnerships, existing business support capacity, and common goals for the City’s future.

City of Miami Transportation and Logistics Business Cluster Analysis: This report analyzes on the competitiveness of Miami’s transportation and logistics cluster, with a focus on marine transportation, by identifying the strengths and weaknesses of the Port of Miami in relation to other ports in the state, in the country, and in the world.  It also recommends specific changes to ensure that the Port of Miami retains and grows its current market share in the transportation of high-value added goods and the global cruise industry.

New Orleans Broad Street Four Corners: This report proposes a strategic partnership in New Orleans, LA between Broad Community Connections, a nonprofit that focuses on revitalizing a section of the Broad Street corridor, and the Crescent City Community Land Trust, a new land trust in New Orleans that will focus on commercial and residential redevelopment. As part of the analysis, we examined current models of community land trusts in the United States that have experience with commercial properties.

Typically, people are appointed to the Economic Development Corporation’s board because they have been successful in business. Hull has been successful in economic development. The two are not the same thing. We ought to have people who have succeeded in business on that board, but we ought to also have people who have succeeded in economic development.

Hull has done both, having also run a successful photography shop, more akin to the kind of businesses that are the back bone of the Ocean State, for 15 years before going to Harvard.

If you agree that Hull should be appointed to the EDC board, tweet this article to @LincolnChafee or send the governor’s office an email: governor@governor.ri.gov.

 

 

Forget About Schilling, Stokes; Let’s Rethink EDC


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As we think about the potential debacle that 38 Studios represents, it’s worth putting a quarter into the time machine and revisiting some great moments in EDC history.

This is from a 2009 column I wrote about EDC (link – scroll down to “EDC: What’s the point?”).  A report had just come out scolding EDC’s performance, and this was my review of that report.

But what of EDC itself? The panel complained they were without focus, and alternately complained they didn’t spend enough time working with already-existing local companies and that they don’t have a good marketing approach to attract companies from elsewhere. So which one should the refocused EDC take on? Both, says the panel. That will sure improve the focus, won’t it?

Some background you might not remember: Back in the misty dawn of time, EDC was born as the RI Port Authority and tasked with issuing bonds to develop and preserve the Port of Providence. When the Navy pulled out of Quonset, the Authority’s authority expanded there. Then, in 1995, when Governor Almond decided that the state’s economic development apparatus should no longer be a department of the state, he laid off the entire department, and transformed the Port Authority into EDC.

Why the Port Authority? Simple. Almost alone among state agencies the Port Authority had been granted unlimited borrowing authority when it was formed, which EDC inherited. And borrow they have, for good and for, well, less good. They blew $30 million on Alpha-Beta, a bio-tech flop, and EDC’s authority was a pivotal part of the deal that allowed state debt to balloon in order to pay for the I-boondoggle rearrangement of Route 195. There’s plenty more, including $14 million for the Masonic Temple hotel project, and $30 million for the troubled Wyatt jail in Central Falls.

What’s more, freed from the state personnel system, EDC was free to pay its executives whatever they please, and to conduct their business however they pleased. Their executives could wear good suits, house their operation in first-class office space, and generally conduct themselves just like the overpaid CEOs they spend their time with.

This isn’t to say EDC hasn’t done some good. I’ve written approvingly about the geek dinners they promoted under Saul Kaplan, its last director, and there have been other networking initiatives that bore some fruit, too. But let’s be honest. What’s the point of EDC at all? In large part, the best things the state can do for the state’s economy have to do with those essential things that the private sector can’t (or won’t) do: universal public education; maintaining roads, bridges, water lines and the like; policing the marketplace; protecting the environment; facilitating grant-funded research. These are the factors that could make ours a stronger economy. What an EDC can do will only ever be a minor effect compared to these others.

This, of course, is a political problem for the agency because expectations are so much higher than can be achieved.

What happens at an agency with such an ill-defined and difficult role? Failure, that’s what. Over the years, EDC has seen some good people come through its doors (along with the inevitable few who only look good in a suit) but they’ve been tasked with the impossible. Their mission has been to make our state’s economy bloom despite the fact that we are shrinking our investments in our infrastructure, our workforce and our environment. And what have we seen? Tremendous pressure to do something has produced ill-considered loans, and nebulous and occasionally laughable plans.

A future EDC or something like it could play a useful part in monitoring the state’s economy, and in technology transfer, trying to push new technologies into the market to advantage local businesses. They could be useful promoting networking and centralizing some information businesses need. But our EDC has served mostly as an ATM for corporations, and as a state-paid corporate lobbyist, pushing tax cuts in the legislature, oblivious to the effects these cuts have had on permitting delays, to say nothing of education and bridge maintenance. The agency needs to be rethought, but the changes must go a lot farther than this panel envisions.

A correction is in order: the Alpha-Beta deal only cost the state $4.5 million in the end, since the building was resold.  You could argue that the investment worked in that case, since Dow Biopharmaceutical used that space, and has expanded since.  The dozen neighbors we displaced through eminent domain on Dow’s behalf might differ, but the real point is that the occasional winner doesn’t prove that a lottery ticket is a good investment.  There are investments that will produce a return and investments that might.  Which one would you rather bet on?

Ontario Poses Conflict for Conservative Ideology


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OK, I recently spent some time in Ontario.

Which, is part of Canada, but it’s only a part. I cannot speak about Canada as a whole, but I can speak about Ontario.

Ontario has a much higher tax burden than any state (including RI and NJ) in the USofA.  Gas costs more than $5 per gallon. It has universal health care. The minimum wage is $10.25 per hour.  Union density remains very high. Factory jobs pay well. The regulatory environment makes California look like a Libertarian paradise.

IOW, it’s a socialist heck-hole.

If one listens to RW ‘economists’, these conditions mean that the economy of Ontario has to–HAS TO!!–be in the tank, right? According to every RW pundit and crank and know-nothing, all of those conditions mean that the economy has to–HAS TO!!–be creeping along at a negative growth rate. It’s a law of nature. Taxes, regulation, unions, high minimum wage, any one of these are job killers. The whole group of them must be–MUST BE!!–Economy Killers.

Right? Right! Ayn Rand said so!

Guess what? The economy of Ontario is booming. There was no financial crisis. Why not? The regulatory environment didn’t allow the banking system (or shadow banking system, which pretty much doesn’t exist north of the border) to play Russian Roulette the way banks here did.

The high minimum wage means that even people working low-end service jobs have money to spend. And they spend it. Which stimulates the economy. Just like Henry Ford said would happen.

The universal health care means less time is lost to sickness, and that sick people get care before they end up in the emergency room, and cost 5-6 times what it should cost to treat them. Costs which uninsured people pass on to the rest of us. So their health care system produces comparable results at about half the cost.

(Ah, I can hear it: but but but you have to wait six months for a hip replacement!! Yeah. What’s the point? Hip replacements are elective. Yes, they make people’s lives better, but they aren’t generally a matter of life and death. And, who gets most hip replacements in the US? Folks with single-payer health insurance. Except here we call it “Medicare”.)

My point is that, according to Ayn Rand, and Paul Ryan, Charles Krauthammer and the WSJ (and too many others to name), the economy of Ontari0 has to–HAS TO!!– be dismal. In fact, it’s great.

How is that possible? Could it be (gasp!) that RW ‘economics’ is actually an ideological position, completely divorced from the way the real world actually works?

That’s exactly what it means. The stuff that RW ‘economists’ claim is actually an ideological belief that has nothing to do with how the economy in the real world actually works.

Don’t believe me? Go to Ontario. Look at the cranes in Toronto, the spanking-new factories along the highway, the huge numbers of houses being built in London, the industry in Sarnia.

Cassie Tharinger Returns Cider to Rhode Island


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Cassie Tharinger and John Bunker
Cassie Tharinger and John Bunker
Cassie Tharinger (L) and John Bunker (R) under a Black Oxford apple tree (courtesy C. Tharinger)

Hard cider was once the Drink of Americans. Every farm produced it. John Adams drank a tankard of it every morning. Children drank a drink called ciderkin. And the famous apples of the Johnny Appleseed legend? Apples intended to be turned into hard cider.

Even Prohibition, which utilized the destruction of apple trees as a symbol of temperance, included a passage in the Volstead Act explicitly allowing farmers to make cider while the rest of the country went dry. That proved to be its undoing, decentralized as it was, America’s large industrial brewers quickly pumped beer into throats of the newly-populated cities, and cider’s popularity plummeted.

But Rhode Islander Cassie Tharinger sees fresh life in it; in the last 5-10 years, cider has been returning to the American drink list. Just as the craft brewing industry has revitalized American beer, the craft cider industry has an opening. Perhaps one better than the craft brewing industry, as no single cidery dominates the market as Anheuser-Busch InBev and MillerCoors do among breweries.

Ms. Tharinger, raised in Vermont, moved to Rhode Island about twelve years ago and worked at the Rhode Island State Council on the Arts, while hobby fermenting cider on her own time. She also became the fruit coordinator for Urban Greens, a harder task back before farmers’ markets began to spring up. It required her to take trips to Hill Orchards in Johnston, RI, where the owner, Allan Hill, taught her more and more about growing apples. With her hobby cider-fermenting on one hand, and this newfound passion for apples on the other, “I saw my interests dovetailing,” she says.

But most of Johnny Appleseed’s hard cider apple nurseries have long ago been cut down, despite what tales will tell you. So Ms. Tharinger moved to Maine for a year and a half to study under John Bunker of Fedco Trees, a large tree nursery that propagates old apple varieties. According to Ms. Tharinger, Mr. Bunker’s philosophy is that the study of apples is worthless without propagation.

At this point, it’s good to understand how apples spread. “Each new seed produces a new variety, your Granny Smith seed does not equal a Granny Smith apple tree,” she says. Instead, branches of one tree are grafted onto another tree, so on one tree, many varieties of apple might grow. Fedco Trees has a research nursery, which Ms. Tharinger runs. “It’s a repository of varieties,” she says. A living library of apples.

Now she had a plan: “to root cider in good orchard growing.” Armed with both an understanding of apple-growing and cider-brewing, she returned to Rhode Island to create a cidery based around an orchard. With American hard cider apple varieties hard to come by while demand is growing; and no existing importation trade for English, French, and Spanish cider apples; the potential cidery needs to grow its own cider apples, she reasoned. For the last six to nine months, Ms. Tharinger has been pursuing her dream; putting together a business plan, networking, and doing outreach for the cidery.*

Hard Cider
A couple of glasses of cider (via Mother Earth News)

But it’s never just that simple. With cider (except for that dark brown liquid previously known as “apple juice”) out of the American drinking landscape for the last 90 years, cidermakers have had to start pushing for better rules about what constitutes cider. The dream, pushed for by cider advocate Steve Wood of Farnum Hill Ciders, is a cider section in your local liquor store. The Cidermakers’ Conference, which recently held its second annual meeting, is pushing for a legal definition and regulation. While there is a federal license, few state ones exist; Massachusetts and Vermont are exceptions. Rhode Island has nothing about cider anywhere. Indeed, its laws aren’t conducive to starting a cidery.

“I’ve thought about going somewhere else, but this is home,” says Ms. Tharinger, visibly troubled. She says that not only is land expensive, but the poor small business environment is daunting.

A bill introduced by Representatives Teresa Tanzi (D – Narragansett, Peace Dale, Wakefield) and Jared Nunes (D – Coventry, W. Warwick) would allow farm wineries to sell at farmers’ markets. But the liquor lobby has come down hard against it, and Ms. Tharinger says that it’s hard to get farm wineries to advocate for the law; angering distributors could impact whether their products make it to shop shelves. But Ms. Tharinger thinks it’s a good move. She’s spoken to other cider start-ups, and selling at farmers’ markets is a way many get started, it’s where most of their selling happens.

Despite the obstacles, Cassie Tharinger sees the potential in starting a cidery here in Rhode Island. And after nearly a century of its absence, Rhode Islanders might just be a thirsty for a little cider.

______________________________

*Previously, this article incorrectly referred to the process of cidermaking as “brewing” rather than “fermenting” and in one instance referred to a “brewery” rather than a “cidery”. I have also corrected a mistake which claimed that European apple varieties were expensive to import; rather trade is non-existent.

Tedx Conference Comes to Providence on April 15

TedxProvidence co-founders, Tino Chow (left) and Peter Haas (right).

Tedx is coming to Providence on April 15. I recently met with one of its co-founders, Peter Haas, to discuss the upcoming event.

What is TEDX?

TEDx is an independently organized TED style event operated under a license from TED.  According to TED:

“TEDx was created in the spirit of TED’s mission, “ideas worth spreading.” The program is designed to give communities, organizations and individuals the opportunity to stimulate dialogue through TED-like experiences at the local level.  At TEDx events, a screening of TEDTalks videos — or a combination of live presenters and TEDTalks videos — sparks deep conversation and connections. TEDx events are fully planned and coordinated independently, on a community-by-community basis.”

What impact will having TEDXProvidence have? What do you hope to achieve by bringing it here?

The first TEDXProvidence event is scheduled for April 15, 2012 and has been sold-out for weeks. Providence already has a few fantastic ideas conferences, such as: Business Innovation Factory’s Summit on Collaboration (now in its 8th season; aka, BIF-8), the Brown and RISD student-led conference on socially conscious design, A Better World by Design (celebrating it’s 5th year in 2012), and the recently sold-out SEEED, a national summit on building and strengthening social enterprise ecosystems and communities; and TEDXProvidence will allow us to explore in depth the great work that is going on, specifically, in this city. TEDxProvidence aims to highlight the fantastic and inspirational stories coming out of Providence. We want to be the local ideas festival for the city, and builds on our city’s reputation as a global leader for being able to coalesce student and professional populations in order to both celebrate and create real change.

Like all of the other conferences previously mentioned, TEDXProvidence plans on serving as a platform for bringing students, academics and professionals from the private and public sectors together.

Please check out our web site, www.tedxprovidence.com. And follow us on Twitter at @TEDxProvidence or through our Twitter hashtag to follow the stream of dialogue coming out of the upcoming conference at #tedxpvd.

Who are the other players involved in TEDXProvidence?

The organizers are myself, Tino Chow, Caroline Mailloux, and Catherine Laine. We have a number of volunteers. We’ve gotten a lot of the support from our community from local food trucks (e.g., Fancheezical, Rocket Fine Streetfood and Mijos Tacos); Twobolt our printing sponsor; Providence Monthly our advertising sponsor; and VideoZ Corporate Film & Video Productions is doing our filming.

How did you get involved in the TED Movement?

I am a TED Senior Fellow, so I have been going to TED for several years on that fellowship. TED fellows have specific projects they are doing to make the world a better place. For example, my senior fellowship project has been training masons how to build earthquake resistant construction in Haiti. To date we’ve trained over 4000 masons.

Outpost of Design, Culture: A Talk with Manya Kay


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In a day and age when newspapers and magazines are going out of business at a record pace, Providence is home to a new magazine created by Manya Kay called Outpost Journal. You don’t have to look very far on the Internet to find web sites to the death of both newspapers and magazines; sites, such as www.magazinedeathpool.com/ and newspaperdeathwatch.com/ have tracked these developments closely.

But what some see as adversity others, like Manya, see the opportunity. Outpost Journal personifies simple elegance in its look and feel with a healthy blend of citizen journalism mixed in. If there ever was such a thing as a magazine made to be in plain view on your coffee table, this is the one!

The following is an interview I recently had with Manya regarding the launch of her new venture and what it means to Rhode Island and beyond.

1) Can you speak about the origins of Outpost Journal and recent decision to launch the publication?

We’ve been kicking around the idea for Outpost in various formats for almost a decade, but started working earnestly on getting it together in its magazine format in the summer of 2010 with my NYC-based co-founder Pete Oyler. My husband, Clay, works on the publication formally as a photographer and informally in too many ways to count.
The idea for Outpost came about because we are obsessed with creative living and change-making, and because we know a couple of simple things:
1) People in Providence inspire us! The artists living and working here are producing some really interesting, top notch work and the sense of community is incredible. There are also lots of great creative collaborative efforts.
2) People outside Providence don’t always immediately understand what is so great about living here. Again, we are inspired every day by individuals living and working in Rhode Island, and recognize the importance of ambassadorship (in representing our city and state’s unique and innovative qualities) beyond our borders.
3) Whenever we visit other cities, which we really like to do, we discover people and projects that also inspire us- both by reminding us of stuff in Providence, and showing us how we could do better/might do things differently.

2) Why this venture (and why now)?

Because we feel that no one else is covering this subject matter in such a multidimensional way. We thought it was really important to embody what we were talking about by creating each issue as a work of art in itself, essentially, an interpretive snapshot of art and change in smaller urban centers across the nation.

3) What do you hope to get out of this experience?

One of the most enjoyable parts for us is making connections with folks in other cities- we get really energized by discovering new projects and meeting new people. It’s also really interesting to gain an understanding of how the arts ecologies of different cities function (in what ways are local institutions supportive or not supportive, where does the funding comes from, how do artists live in that particular place, what kind of work do they make, who participates in public projects, what does the face of the city looks like both in public and private spaces, etc.).

4) Assistance you may need?

We need help raising funds to print issue 2, as well as to commission a public art installation (for Issue 1, we commissioned an artist to knit a giant cardigan for an 11-ft statue of hometown hero Mr. Rogers in Pittsburgh). We are currently in the process of obtaining our 501c(3) [Subsequent to this interview, Outpost Journal received its 501c(3) designation] and until we receive it are umbrellaed under the amazing AS220. We accept donations and pre-orders of the issue, and will be running a Kickstarter campaign in May that we will need help promoting. We need help organizing our launch party in Providence for the second issue (next fall). We need people to like us on facebook, follow us on twitter, and generally spread the word!

5) How people can subscribe to the publication?

Go to www.outpostjournal.org/#shop and you can purchase Issue 1, and pre-order issue 2 (scroll down for Issue 2).

6) Who are you engaging to help you in these efforts (i.e., interns, where they are from)?

We have had two great interns from Brown- Sophie Soloway, who also helped organize A Better World by Design conference, and now Maggie Lange, who recently graduated and has been helping out on the editorial side. Our Design Director lives in the South Bronx but is a RISD grad and would love to come back here and teach someday. We also have a great group of supporters and contributors and contributing editors and artists, many of whom are from Providence.  Putting the publication together is a true team effort and we are forever grateful to everyone that has made Outpost possible!

This column is as much about civicism than anything else; a word, which looks and sounds a lot like its nemesis, cynicism (the scourge which inhibits our creative actions, evolutionary change, and ultimately our own economic and cultural sustainability). So let’s hear it for our civicism!

RI Progress Report: Reinvent RI, Receivers and OccupyURI


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The Providence Journal kicked off a great new series on Sunday called Reinvent RI in which the paper does a great job analyzing and identifying the problems with our economy. The Projo says the state’s downturn is a result of a slumping housing economy coupled with a transition away from manufacturing – not high taxes or union dominance as some would have you believe.

Kate Bramson details five priorities for Rhode Island, including taking better advantage of our ports, keeping our college graduates here in state, retraining our workforce and taking advantage of what Allen Tear of Betaspring called our “unfair lifestyle advantage, an unfair cool advantage.”

Of course, Rhode Island’s business climate was also cited as a priority, but Bramson keeps great perspective writing that RI must, “reach out to help traditional small companies and the innovative start-ups that are developing new technologies and will be future job creators.”

— Meanwhile, over on the editorial page, Darth Flanders penned an op/ed with Gary Sasse extolling the benefits of municipal bankruptcy. It read as if Flanders and Sasse were selling the idea of municipal receivers to mayors and managers across the state, even though they led off by saying, “If the reader takes one thing from this article, it is that only after exhausting all other options should financially troubled Rhode Island municipalities” consider bankruptcy. Of course the next sentence started with a big giant, “But…”

— In other financial news from this weekend, Ted Nesi made a great observation about Rhode Island’s economy. Namely that public sector unions aren’t nearly as powerful as people think, and Wall Street is much more so.

“For all the talk about labor unions’ power in Rhode Island, their influence over political leaders is still trumped by the might of another formidable institution: Wall Street. When Rhode Island’s leaders are faced with a choice between investors and public-sector union members, they consistently side with the former. The bondholders law, which explicitly protects creditors over pensioners, is one example of that; the suspension of democracy in Central Falls is another.”

— Economic inequality has become such the debate dejour that they are even talking about it in East Greenwich, home of Rhode Island’s largest concentration of the 1%. Lisa Sussman wrote a great piece for EG Patch about why this upscale suburban enclave really shouldn’t complain about Chafee’s municipal plan. Read the comments to see me get beat up for sticking my nose into the fray!

— Given all this gloomy news about the state of the state, what are we to do about it? Well, Occupy URI will be protesting at the Board of Governors for Higher Education meeting today at 5:30 at the URI Bay Campus “to object to the unrelenting diversion of funds from public education in Rhode Island, and to bring to the Board’s attention grave concerns regarding the constitutionality of those diversions,” according to a press release, which also says:

“In addition to being patently unconstitutional, the diversion of funds from education is morally reprehensible. Nevertheless, The RI Board of Governors, continuing a trend spanning decades, approved an explosive 9.5% tuition increase for the University of Rhode Island for the 2012-13 academic term. This has led to an unconscionable burden on those seeking the opportunities guaranteed to them in the RI Constitution.”

 

Chafee: State Aid Cuts Put Poor Towns in Peril


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Governor Chafee said state aid cuts to cities and towns is a primary reason Rhode Island's poorest communities are struggling.

Governor Chafee said former Governor Don Carcieri and the General Assembly put struggling communities in peril when they cut some $195 million in state aid to cities and towns.

“It’s no wonder Providence is in trouble, it’s no wonder Pawtucket is having a trouble making payroll, it’s no wonder Central Falls went into bankruptcy,”  he said after speaking at a conference on the state’s economy at Bryant University today. “They just couldn’t sustain those kinds of cuts. There is no property tax base to transfer those kinds of cuts onto.”

Chafee said Carcieri and the General Assembly essentially balanced the state’s budget by taking money away from cities and towns – a move that he said the state’s wealthy communities could withstand but the poorer communities could not.

“I thought it was the path of least resistance,” he said. “That way they could go and say we didn’t raise taxes but at the same time they did raise taxes on the property tax payers of those communities. It was a little disingenuous to say we’re not raising taxes when you are passing it down to the property tax payers of the distressed communities.”

He said he would be unveiling a bill “later this week” that will help Rhode Island’s cities and towns. In addition to including enabling legislation that will allow cities and towns to rework annual pension increases as well as addition funding for local school districts. The additional school spending, he hopes, will be paid for by his proposed increase in the meals and beverage tax.

His bill will also include, he said, relief from state mandates for some of the state’s poorest communities, such as Providence, Pawtucket, Woonsocket and West Warwick. Other communities could be included as well, but he indicated it would not provide mandate relief for every community in the state.

He wouldn’t say which mandates would be included.

“It’s the usual suspects,” he said. “They are the ones that many of the town managers and mayors have been talking about for decades.”

Could Rhode Island Build a State-Owned Bank?


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BND

A state-owned bank. Essentially, a Bank of Rhode Island. This is the proposal floated by ecoRI News’ Kyle Hence in a January article about how the state sends its revenues out of state, where they go to improve the economies of other regions in the country, and indeed, the world. All this despite the fact that the state claims to be placing them in “local banks.”

The local banks? Citizens Bank, BankRI, Bank of America, Sovereign Bank, Washington Trust, and Webster Bank. The intriguing idea is that by creating a state-owned bank, Rhode Island would amplify its spending power (since banks have a special ability to loan out nine dollars for every dollar placed in their coffers) while creating an institution that could assist with handing out loans where the standard corporate bank is unable or unwilling to enter the market.

Ellen Brown
Ms. Brown (image: Ellen Brown)

The greatest national proponent of the idea is Ellen Brown, a former Los Angeles civil litigation attorney, natural medicine advocate, and author of Web of Debt (her website is available here). Ms. Brown has written vociferously about the issue, advocating for a model based off the only state-owned bank in the United States, the Bank of North Dakota (Puerto Rico also owns its own bank, the Government Development Bank, created by New Dealer Rexford Tugwell). North Dakota has almost entirely avoided the economic recession, and is running a surplus.

The Bank of North Dakota (BND) is an anomaly in the U.S. financial system. Formed by the Nonpartisan League, a socialist-started faction of the Republican Party (yes, you read that right), its goal was to assist farmers in getting loans. Assisted by a state run mill (North Dakota Mill and Elevator, still in existence as the nation’s largest flour mill) as well as a prohibition against corporate ownership of farmland, North Dakotans have functioned with the BND for years. Its former governor and sitting U.S. Senator (Republican John Hoeven) is a former BND president.

BND essentially acts as the state’s coffers, instead of various national or multinational banks. As a result, it is not covered by the Federal Deposit Insurance Corporation (FDIC), because FDIC only insures up to $250,000, and the State of North Dakota deposits far more. This lack of FDIC coverage also means BND is outside of the regulatory burdens of the system. Because it didn’t do any subprime lending, BND was shielded from the subprime collapse. It also avoided credit default swaps and derivatives and all of the other various market instruments that we’ve heard so much about since the collapse.

This works largely because the bank is run by conservative bankers, who, according to their president, Eric Hardmeyer, follow “a Warren Buffett mentality–if we don’t understand it, we’re not going to jump into it.” The bank is also a partner to large banks, working instead to amplify the strength of credit unions.

Ms. Brown’s ideas of taking the North Dakota model have been an appealing idea in Great Recession America, especially as states faced high unemployment and reluctant lenders, problems still found in Rhode Island. Discussion of the idea seems to be largely cyclical, happening around this time each year. Multiple states have had legislation come up about it; and the Democratic candidate for Governor of Michigan made it part of his campaign in 2010. Small business owners and farmers in Oregon have banded together for the idea.

But there’s a hitch. A study for the state of Massachusetts by the Boston Federal Reserve found that the situation of the BND just isn’t replicable in most states, nor does it do what most advocates say it does. North Dakota’s economic situation is largely due to its energy sector (based on oil) and agricultural sector. Traditionally, North Dakota has a lower unemployment rate than the nation at all times. Furthermore, South Dakota does too, and lacks any such bank; South Dakota’s economic situation is comparable to North Dakota’s. Even worse, North Dakota has an extremely volatile economy, since it is largely based on agricultural prices, causing average income to leap across the charts.

BND
Bank of North Dakota branch (image: Bank of North Dakota)

But BND never steps in to stabilize the state’s economy (again, it is a conservative institution). Furthermore, while BND is a non-competitor to other banks in North Dakota, this is largely due to the fact that it mostly handles the state accounts and buys loans issues by local credit unions. Since North Dakota has one of the largest proportions of credit unions in its banking industry (a reflection on the state’s rural nature), it is thus a great boon to the state’s economy. But highly urbanized and dense states like Rhode Island have less than 10% of our banks as credit unions. Thus, a Bank of Rhode Island would most likely be a direct competitor to banks in Rhode Island, and possibly cause a banking crisis with its creation as it pulled state deposits out of the other banks.

The issue is largely that the conditions of North Dakota cannot be replicated in Rhode Island. BND President Hardmeyer stresses that the bank is run by bankers, not economic development people. He also is very timid about suggesting for other states, since BND is aimed specifically at issues that North Dakota faces.

Indeed, the creation of a BRI would have to follow along similar lines as the formation of a currently unpopular financial institution, the Federal Reserve. U.S. Senator Nelson Aldrich, a Republican Senator who served Rhode Island from 1881 to 1911, had long been an opponent of a national bank before he toured those of Europe.* Convinced of its importance, he returned to the U.S. and designed what became the Federal Reserve with much input from the nation’s bankers.

A BRI would have to not be in competition with private banks, and wresting the state deposits from private hands would be the most important hurdle to overcome. Any partnership involved in creating it would have to involve bankers, economic priorities and niches where the existing banks aren’t reaching would have to be identified, and an understanding of the goals of such a bank would also need be reached.

The state certainly should step in to do what private business can’t accomplish. But improperly executed, a Bank of Rhode Island would be a disaster and discredit state intervention. As an issue, its importance is in highlighting where our economy isn’t functioning properly, a conversation necessary during these times.

__________________________________________

*Correction: An earlier version of this sentence said that Sen. Aldrich served from 1841-1915, which are in fact the years of his birth and death.

OP protests Pfizer, ALEC joining 7 N.E. Occupies


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Members of Occupy Providence protest Pfizer in Groton, Conn. on Wednesday.

Despite the cold rainy weather, about a half a dozen Occupy Providence members took part in the #F29 Shut Down the Corporations at Pfizer in Groton, CT. The national action was called by Occupy Portland to protest members of ALEC, the American Legislative Exchange Council, a front group that writes model pro-corporate legislation.

The coordinated inter-occupy direct action against ALEC and Pfizer in Groton resulted in a civil disobedience where 8 people were arrested after Pfizer refused to send a representative out to discuss their ALEC initiatives. It was a success by any standard. The coalition, which consisted of occupiers from Occupy New London, Occupy Shoreline (CT), Occupy Hartford, Occupy Worcester, Occupy New Haven, Occupy Boston, Occupy Providence and more, gathered in Groton to march to the Pfizer facility, and then participated in a dynamic teach-in to work on ways to build non-violent protest in the Occupy movement.

Occupy Providence’s Susan Walker said, “We couldn’t believe how many police cars and officers were there. It was a little intimidating at first. But we walked right up to the crowd and joined about 100 other protesters in mike checks about Pfizer and ALEC. The energy was great. The costumes and signs were creative- an activist costumed as Big Bird with a sign ‘Hey Pfizer, Test This Bird’ was my favorite.”

CT residents were angry because Pfizer negotiated $161 million in tax incentives to build the facility, bulldozed a residential neighborhood, and then laid off 1500 local workers once the tax incentives abated. Not only that, but they resented that Pfizer is a heavy hitter with ALEC in legislating for corporate greed.

The march ended back at the main gate where access was denied. Several Occupiers approached the gatehouse and asked for a representative to come out and speak to us as was requested in an advance letter that was sent. They were denied.  The group decided to march around the facility and approach all the gates and ask to speak to a Pfizer representative.

The police had painted a blue line demarcating a boundary protesters weren’t supposed to cross. One protester later mused “blue line from the blue pill (Viagra) company- did Pfizer plan it that way?”

In unified action of civil disobedience, the whole group crossed the line, and got within 20 feet of the heavily guarded gate. Eight protesters then walked straight up to the gate house, linked arms, refused to leave, and were arrested one by one.

Civil Disobedience arrestees were singing Solidarity Forever as the paddy wagon hauled them away. Occupiers chanted and mike checked for a little longer.

Walker noted, “I found the vibe of the police presence really interesting. It was intimidating at first.  I think it was almost a 1:1 ratio of officers to occupiers. Early on occupiers had chanted, “The Police Need a Raise! The Police Need a Raise!” which was a pressing local issue.  The officers were respectful and seemed to have our safety in mind.”

As the march around the facility continued, police made sure we stayed on the sidewalk, that traffic could flow, and even blocked traffic so we could cross streets.

Walker continued, “I’m willing to bet some of the officers know families who were hurt by Pfizer’s layoffs, or who were displaced when they built the facility in the first place.  But these are guesses, not facts.  It’s a fact that those arrested were treated well and released promptly. I really got the feeling some of the officers felt like they were marching with us.”

After a break, the group reconvened at the New London All Souls Unitarian Church for a teach-in by a War Resisters League member from Voluntown, CT.  In the workshop,  an energized 30-40 people from over 7 different occupations worked together to develop a stronger, more effective movement.  It included 3 first time occupiers whose excitement was palpable, one commented, “This is the most empowering day of my life.”

After protesters introduced themselves, CT Brian led the group reading off  #F29 highlights from around the country from Twitter, starting with a report from Tucson, where they forced a G4S prison deportation bus to cut a hole in their own fence to get the deportees on the road.

This an interesting snapshot video of a twitter reading at 3:15 ET.

#F29-#CT #OP-Snapshot-3:15 National Actions http://youtu.be/1cC4BhIpFxQ

The facilitator broke down the elements of successful activism into 8 components- constructive work/alternatives, common understanding, non-violence discipline, demonstrations, allies, negotiation, research/Info gathering, and legislative/electoral reform and let the participants break into groups to work on the aspect most resonant to them.

Then each study group was given a list of questions, like for the demonstrations sub-group focused on “how we can best demonstrate our concern”.

Each small group reported back to the whole group their observations. The demonstration group reported that they felt the ALEC protester was a good model as it was focused on a key issue that connected with the central messages of Occupy.  A person from one of the last standing of the New England encampment, Occupy New Haven camp resident Danielle DiGirolamo, reported on Alternatives- that much of this has started with natural medicine and alternative energy becoming more mainstream and Susan Walker added that “basically we feel there are a lot of alternatives to what the corporations are spoon feeding us.”

Then the group was asked to order the different parts of a campaign with respect to the sequence they should occur in. They selected- Common understanding, Research, Allies, combined Training/Education, create Constructive alternatives, Negotiation, Non Violent Discipline, Legislative Action, to which the facilitator commented, not the usual order but  “I’d say that’s perfect.” At the end materials on non-violent training were distributed.

Protesters nationally were successful in raising awareness about ALEC a legislative shadow organization as Occupies around the world united for systemic change.

Check out the embedded video from the Occupy Portand Video Collective.

The large  Anti-Corporate greed protest in LA included masked Anarchists and possible young actress marching behind a banner of People  Over Profits in the middle of a large crowd. One tweet reported that- when the March arrived at Walmart, many workers from WalMart stepped outside. The police responded by telling them to go back to work or risk arrest.  An interesting accidental exposure of the Police bias to protect corporate property before people.

Perhaps the management had called.  A t that time the LAPD was not threatening the protesters with arrest, only the Walmart workers, seeming to be more of an  attempt to suppress worker solidarity with any movement that dares to unite people behind pro-worker programs- living wage, right to organize, right to strike to name a few. Had Walmart succeeded in forming the Grass Roots Union they sought, management wouldn’t have been so quick to suppress what could have been interpreted as a walkout.

Walker summed up her experience this way. ” It’s inspirational that Occupy Providence got to participate in a national coordinated day of action against ALEC. The bottom line: retailers, for-profit prisons and pharmaceuticals are writing legislation, and paying legislators to get it passed. The prisons are writing the laws? Really?  It’s not OK. “

By Robert Malin & Susan Walker

Conley’s Pier Sold


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Proposed Redevelopment for Conley Piers

Proposed Redevelopment for Conley PiersPBN reported last week on the sale of Conley’s Pier along Allens Avenue. Under Cicilline, the city had sought to rezone the hospital adjacent section of Allens Avenue to mixed-use, to allow developments like the one pictured with plans for a hotel, office building, private marina, cruise ship terminal, retail, a floating restaurant, and public walkways for visitors.

The development would create 2,000 permanent jobs and help redefine an industrial area into a waterfront attraction, according to Rhode Island Medical Arts. Its managing director, Stanton Shifman, said the project would cost between $350 million and $400 million to develop and that the site’s existing building would remain.

“We like the location, which is in easy proximity to the hospitals,” Shifman told PBN. “We like the idea that we can [utilize] the water, which is certainly an attractive area.”

Problem was, industry lobbyists had other ideas, and with the election of Mayor Taveras the proposed zoning changes never happened. At the time we were told that with Providence’s deepwater slips, maritime uses needed to be the only uses for those waterfront lots. So who bought the property? Offshore windmill turbine construction? Short-sea shipping? Nope… National Grid?!

Power utility National Grid has purchased Conley’s Pier on Allens Avenue for $4 million, former owner Patrick T. Conley said Tuesday.

National Grid plans to clean up the 4.25 acre waterfront property, which was once a manufactured gas plant, and then return it to “productive use,” company spokesman David Graves said Tuesday.

Asked what that productive use would be, Graves said the utility has not identified one yet.

It’s certainly not clear what connection National Grid has to the “working waterfront” (read polluting industry legacy uses). Don’t get me wrong, the clean up is good news and at least it’s not another scrapyard. But it’s likely we can look forward to the tax revenue generated by low density use like another parking lot. Taxpayers can only wonder what kind of revenue a mixed-use would have generated.

“I am profoundly disheartened,” Conley said in a statement about the sale. “If you spent over $8 million attempting to implement the city’s expensively-produced Providence 2020 plan for the Allens Avenue waterfront, a $4 million forced sale brings no joy, especially when much of that sum was paid to a bank in the form of interest and penalties.”

Yes, in Providence everyone’s making sacrifices… public employees, nonprofits, businesses, homeowners. But a deal to expand the tax base at the expense of the polluting lobby? Fuhgeddaboudit.

Dr. Supply-Side, or: How We Learned to Stop Worrying and Love the Stimulus


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Some people — including a Presidential front-runner and many leading Democrats in the RI General Assembly — love to insist that government spending does not create jobs, and that therefore we should continue cutting taxes for the wealthy in order to generate economic growth. The problem with the trickle-down argument, other than the fact that there is little evidence to support it, is that the opposite is actually true – especially when it comes to getting out of a recession. In fact, history shows us that:

when economic times are bleak, there are doable steps that a government can take that make a difference to get the economy back on a path of growth and job creation.

For a really good example of exactly how this works, we don’t even have to go back to the Great Depression, nor do we have to travel to Detroit (even though I really love cars and trees that are the right height). Here’s a personal story from right here in Rhode Island — my own.

In the fall of 2009, we bought our first home — a small bungalow that was built in the 1920s. We got an FHA-insured mortgage, and we knew that when we filed our taxes for that year, we would be eligible for a first-time home-buyers’ tax credit of $8,000. With a baby on the way, we were motivated to buy a home — but if the tax credit hadn’t been offered, I doubt we would have been able to do it as quickly. It took some Keynes to help get our keys on closing day.

During the run-up to closing, we hired a home inspector and a lead inspector. When it came time to move, we needed movers to carry most of the big stuff (and I won’t lie, they carried plenty of the small and medium stuff, too). We called the cable company and got our new house wired up. We installed a new stove, and a washer & dryer — and had the broken-down old ones removed.

We had to buy furniture to prepare a room for our daughter, as well as one for visiting grandparents. Got a good price on a truckload of wood for the fireplace which we planned — and still plan someday — on converting to wood-stove insert. Not to mention countless trips to the hardware store for tools and materials for DIY projects (and as big as my tool set has grown, it still feels like the tool I use the most is my wallet). Suffice to say, the $8,000 credit meant a lot that first year.

Our house still had some of its original windows, with layers of lead paint and and potentially dangerous friction zones. So we just kept those windows shut until the spring of 2011, when we looked into finding a lead-safe contractor to replace them. We learned about an energy efficiency tax credit that reimbursed some of the cost of new windows – and so we got the work done.

Then in the late summer, we saw some news about a Home Energy Audit that we could get — for free — to determine what areas of our home need more insulation and where we could stop air from leaking out/in. If we decided to contract with someone to do the work, not only would we save on future energy bills, but about 75% of the total cost of insulation work and air leakage sealing would be paid for. (The program also replaced — at no cost to us — our old incandescent bulbs with CFL bulbs, saving us more money.)

During the energy audit, the inspector also discovered some old knob and tube wiring that would become a fire hazard, were we to cover it with insulation. Before we could proceed with the insulation work, we had to replace that wiring. Now we have hired a licensed electrician to do this work — because while I like to keep up with current events, I don’t want to become one.

And with every check we wrote, and with every swipe of the debit (and occasionally the credit) card, knowing that tax credits were coming or that we were only paying a fraction of the cost made it easier to make the purchase. Each time we did — SURPRISE! — there were actual workers with actual jobs getting actual paychecks who did the work.  And though I can’t tell you exactly where each of them spent their money, I’m fairly certain it was a lot closer to Broad St. than it was to Wall St. – creating ripple effect throughout our state’s economy.

(As a side note: in addition to the broader economic benefits that our spending generated, from a purely selfish standpoint, these home upgrades have helped protect my family’s health and safety, and they will save us money in the long run, too.  So thanks, Uncle Sam!)

Ours is just one example, but there are many other families and individuals in Rhode Island that have been making made similar decisions. And I’m willing to bet that our actions — spurred by government policies and investments — have actually created more jobs and economic growth in our state than all of the recent tax cuts that the richest Rhode Islanders received from the General Assembly or the ones that they got from Bush.

You won’t create jobs or growth by cutting spending. The best way to create jobs is, quite simply, to create jobs — like  our grandparents did with the Works Progress Administration.  So instead of continuing to ride Dr. Supply-Side’s bomb, our elected leaders ought to learn from history, and choose policies and investments that help bring us out of our own Great Depression.

I’ll bet you $10,000 it will work.

Payday Reform and Policy Change: A Recent Conversation on Sonic Watermelons on BSR


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PROVIDENCE, RI – Are Rhode Islanders paying fees for loans that are higher than what residents in other states are paying? The answer in some cases is yes – 260% versus 36%. Learn more about the type of loans that charge these rates, the impact of these loans on RI families, and what you can do to stop the practice in this excerpt from my interview with Margaux Morriseau and Nick Figueroa of the RI Coalition for Payday Reform.

It’s from the February 8, 2012 edition of Sonic Watermelons on BSR (Brown Student and Community Radio) – a show I produce as part of my work on VenusSings.com and with Isis Storm, a collective of artists, writers, and educators who empower women and underserved communities through performances, workshops, and media projects.

For more information on the topic, click here to listen to the full interview or click on the handouts provided below by the RI Coalition for Payday Reform.

FYI:  Hear Sonic Watermelons live every Wednesday, from 6:00-8:00 PM…

Presented by Venus Sings and Isis Storm
Because the World is a Big Place
With Big Ideas and Lots and Lots of Music

Live or archived: bsrlive.com
Studio phonelines: 401-863-9277
Contact: IsisStorm.com, VenusSings.com

TOMORROW: 5th Annual Budget Rhode Map Conference


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Register now for The Poverty Institute‘s 5th Annual Budget Rhode Map Conference “From Poverty to Progress” to hear from leading experts about the economic vitality of Rhode Island and its residents.

Thursday, February 16, 2012

8:30 am: Registration and Continental Breakfast
9:00 am – 12:30 pm: Conference
Rhodes on the Pawtuxet
60 Rhodes Place, Cranston, RI 02905

$35 per person

Featuring keynote speaker Jared Bernstein 

Senior Fellow, Center on Budget and Policy Priorities

Former Chief Economist and Economic Advisor to Vice President Biden and member of President Obama’s economic team.

Additional Presentations Include: 

A Skilled Workforce: Meeting the Demands of the Innovation Economy

  • Julian L. Alssid, Executive Director, Workforce Strategies Center
  • Rick Brooks, Executive Director, Governor’s Workforce Board
  • Keith Stokes, Executive Director, RI Economic Development Corporation
  • Adriana Dawson, State Director, RI Small Business Development Center

Rhode Island’s Human Service Budget: The Story Behind the Headlines

  • Elena Nicolella, Rhode Island Medicaid Director
  • Linda Katz, Policy Director, The Poverty Institute

 


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