Mattiello’s budget helps insurance companies, underfunds health regulators


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Budget BriefingThough Speaker Nicholas Mattiello refuses to call them budget cuts, OHIC, the Office of the Health Insurance Commissioner, will suffer a 75 percent reduction in staff under the new budget unveiled last week. One health care advocate called the reduction in staff “a complete surprise.”

These cuts will reduce the effectiveness of OHIC in advocating for lower rates for consumers in Rhode Island, and are seen as a major giveaway to the health insurance industry.

A letter being widely shared throughout the health and medical advocacy community has been shared with RI Future:

The budget passed by the House Finance Committee June 8th cut 9 full-time staff from the Office of the Health Insurance Commissioner (OHIC), effective FY2017. This 75% cut in staffing leaves only the Commissioner, an administrative assistant, and one additional staff member to manage the functions of the office.

  • The 9 positions that have been cut are essential for OHIC to carry out health insurance premium rate review, which OHIC uses to protect consumers from excessive rate increases; health benefit plan form review, which ensures that mandated services are covered, including preventive services like cancer screening; market conduct examinations (for example, mental health parity); and addressing consumer and provider complaints.
  • Rate review alone has saved Rhode Island employers, employees, and consumers $196 million since 2012, including $40 million in 2015.  These savings come from the Office’s review which can lower premium rates requested by insurers while ensuring that rates are based on sound actuarial standards.
  • OHIC also reviews rates for Medicare Supplement Plans, which saves money for Rhode Island’s seniors, Student Health Plans, which saves money for students, non-Affordable Care Act Health Insurance Plans, and Dental Plans.

“If these cuts remain:

  • OHIC will not have the staff to conduct adequate rate and form reviews, which will harm the state’s ability to protect consumers and employers from excessive premium rate increases.
  • OHIC’s capacity to address consumer and provider complaints about insurer business practices will be severely limited, since staff to manage these cases is cut in the proposed budget. This will negatively affect Rhode Islanders. For example, OHIC investigated a company issuing short term limited duration coverage. The investigation discovered improper denials by the insurance company and OHIC required the company to pay improperly denied claims totaling $36,697.
  • OHIC will not be able to adequately review health benefit plan forms. This means that there will be no watchdog to ensure that state mandated benefits are covered and covered fairly (parity), including services for mental health and substance abuse disorders, ensure that discrimination does not occur, and ensure that services are not unfairly excluded.
  • OHIC will no longer have adequate ability to protect consumers from unscrupulous companies issuing non-compliant and misleading insurance plans.

“Rate and form review is a key component of health reform. It must be carried out by state governments, because the federal government does not have the authority to deny or modify premium increases in the states. In recent years the federal government has provided start-up and development grants to states to build and enhance rate review and oversight initiatives as a means to protect consumers and improve insurance affordability, with the expectation that states would continue the work. Rhode Island’s grants have allowed us to maximize our statutory authority to review rates and forms and to build one of the most comprehensive health oversight agencies in the country – but no further grant opportunities are being made available by the federal government.

“The 9 positions sought by the Administration for OHIC are integral to having a well-resourced watchdog agency in place to protect and maximize savings for employers, employees, and consumers.  Only a well-resourced OHIC can provide the necessary level of oversight to protect Rhode Island consumers and businesses.”

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Last week Speaker Mattiello defended the cuts at the Budget Briefing under questioning from Representative Teresa Tanzi. Mattiello said that these jobs were only made to last as long as there was federal funding to support them.

How to stop the fare hikes on RI’s most vulnerable


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2016-05-23 RIPTA 006A devastating fare hike for Rhode Island’s most vulnerable seniors and disabled people is the focus of a new budget fight.  Although Rhode Island has long had a program where seniors and disabled people who have trouble affording bus trips ride free, the last year has seen efforts to end this program and charge more to those who can least afford it.

Things are now coming to a head.

The recently revealed House budget includes money to put off the fare increase for six months, until January, but doesn’t quite put in enough funds to stop the fare increase altogether. RIPTA Riders Alliance is working to fight this, and there are several easy things people can do to help.  When the budget comes up for a House vote Wednesday, there will be a proposed amendment to add a small amount of funds to RIPTA ($800,000) and stop the fare increase.  Many disabled people and seniors have said publicly in the past year that they cannot afford to pay what RIPTA wants on their limited income, and RIPTA admits that they expect steep drops in how many bus trips disabled and senior Rhode Islanders will take.  Fortunately, there are ways to make this better.

  1. One way people can help is by signing our online petition — it automatically sends messages to the State House when you sign. Please also share the petition link with others — we need people to respond quickly.
  2. Another thing you can do to help is to contact your state representative and state senator and ask them both to support budget amendments: $800,000 more for RIPTA to stop this attempt to squeeze more money from RI’s limited-income disabled and seniors who are already facing challenges.  Go to vote.ri.gov to find your elected officials’ contact info — you can call them and/or email. RIPTA Riders Alliance has been distributing a flyer about this.
  3. Finally, RIPTA Riders Alliance will hold an event at 1:30 this Tuesday at the State House to talk about how important this is. We are sending the message that if Rhode Island’s senior and disabled people can’t afford to travel, they will be stuck at home, less able to shop, volunteer and visit loved ones — and isolation is deadly for seniors and the disabled.  Protest makes a difference sometimes!  Please come at 1:30 on Tuesday at the State House — and let people know about the Facebook event page.

Ironically, we’re facing this terrible fare hike on the most vulnerable because of a sneaky General Assembly move last year.  When the House debated the budget last year, the House Finance Chair at the time, Raymond Gallison, put in a last-minute amendment to allow (that is, encourage) RIPTA to charge more to limited-income seniors and disabled people.  Since then Gallison has had to resign.  But it’s fitting that what began with one last-minute budget amendment is now leading to another, this time to save the most vulnerable who have been targeted as budget victims in the past.  An amendment will be proposed in the House for Wednesday’s debate, and we are hoping to get an amendment in the Senate, too.

More useful information is available on RIPTA Riders Alliance’s Facebook page.

Speaker explains reasoning behind Youth Pride RI funding cuts


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Budget BriefingMany worthwhile organizations doing important work found out that they had lost their grants when the budget was unveiled. Among those is Youth Pride Inc. (YPI). Having lost their Community Service Grant, the group now faces a $50 thousand shortfall. YPI is the only group in Rhode Island that specifically serves the needs of LGBTQ youth in the state.

YPI has sent an email to supporters, asking them to contact their legislators in the hope of having these funds restored.

We are asking our supporters to let the state know how valuable and important Youth Pride Inc.’s work with LGBTQQ youth is to our state and community. Let them know we are the only organization providing support and advocacy for LGBTQ youth in the state! Let them know that these youth need our organization!

“Please reach out to the Speaker of the House and Senate President immediately in support of YPI and the vital work that we do for LGBTQQ youth in Rhode Island TODAY. The Senate President can be contacted at: 401-222-6655 and the Speaker of the House can be reached at: 401-222-2466. Please reach out to your Representative as well.”

At yesterday’s House Budget briefing, I asked Speaker Nicholas Mattiello about the cuts to the program. He said that YPI serves a “very worthwhile purpose” but added, “Those services, needs, potentially are being serviced elsewhere.”

In the case of YPI, the Speaker said that he had heard the suggestion that, “guidance counselors in the school are in fact providing [these services]. Not specifically [for LGBTQ youth] but it’s something that is being addressed through other means.”

Given the range of services and programs YPI provides that specifically cater to the needs of LGBTQ youth in Rhode Island, it’s unlikely that guidance counselors are filling that need or have the time and ability to do so. That said, Mattiello, added towards the end of his statements, “We’ll take a look at [YPI] and we’ll see if it’s unique enough to fund.”

Representative Joseph Almeida entered the Budget Briefing late and asked about other worthwhile groups that have been denied funding, including the Opportunities Industrialization Center (OIC) which has provided employment training and placement opportunities since 2010 and the Institute for the Study and Practice of Nonviolence which works to reduce homicides and support victims of violence.

“It’s like all the poor people got cut, cut, cut,” said Almeida, who said afterwards that he was speaking from his heart, “Can’t you take money from Crossroads and give to people who really need it teaching peace in the streets and teaching people how to get jobs? I mean Crossraods? What? What do they do?”

Crossroads RI received $300,000 in the budget.

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House budget bill contains wins, losses for progressive left


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Mattiello 2The budget passed by the House Finance Committee last night, and slated to be vetted by the full chamber next Wednesday, contains some wins and some losses for the progressive left.

The budget bill contains some money to restore low-cost bus fare for indigent people – a social service that RIPTA cut earlier this year. The RIPTA Riders Alliance declined comment until more information is available. House Speaker Nick Mattiello told RI Future the funding for this program is temporary and said larger changes with RIPTA are afoot.

The proposed budget also includes new money to pay nursing home caregivers and those who works with the developmentally disabled. The investment would help raise wages for underpaid caregivers, many of whom work full time and still live in poverty. SEIU officials hailed the move as a step toward a $15 an hour minimum wage for front line caregivers.

It also preserves Governor Gina Raimondo’s increase to the Earned Income Tax Credit, and increased the investment in housing for the homeless proposed by Raimondo.

“We find it encouraging that the House Finance Committee showed their commitment and concern for Rhode Islanders experiencing housing insecurity by supporting the Governor’s budget proposal for affordable housing production and adding an additional $10 million for urban revitalization and blight remediation for a total $50 million Housing Opportunity Bond,” said Jim Ryczek, executive director of the RI Coalition for the Homeless. “We appreciate that the House Finance Committee ensured that this year’s budget invests in the long-term solutions to addressing homelessness and the lack of affordable housing in our state.”

But the House budget left out a proposed increase to the minimum wage that Raimondo included in her budget proposal. The current minimum wage in Rhode Island is $9.60 and Raimondo’s budget proposal would have raised it to $10.10. While the minimum wage does not have a fiscal effect on the budget, it is customary in Rhode Island to include policy changes in the state budget.

The House budget also nixed Raimondo’s proposal to increase investment in the school construction bond money. Many urban school buildings in Rhode Island are in dire need of repair.

It reduced Raimondo’s proposed fee on medical marijuana plants from $150 to $25. While the House measure exempts low income people from the fee, it still requires a new state tag for each plant – a move opposed by independent growers of medical marijuana.

While medical marijuana patients will pay more, beach goers will pay less under the proposed House budget. According to a news release from the House of Representatives, “Just in time for beach season, the Finance Committee slashed parking fees at state beaches — mostly in half — to better enable Rhode Islanders and visitors to enjoy one of the state’s greatest treasures. The cuts, effective July 1, eliminate hikes made in 2012, and apply to all types of passes: single-day weekend and weekday as well as season passes for residents, nonresidents and senior citizens. (Admission to state beaches themselves is free.)”

Charter school opponents should be even more pleased with the House budget proposal than with Raimondo’s version. According to the news release, “The [finance] committee moderated the governor’s proposal somewhat, allowing districts to reduce payments by either 7 percent of the per-pupil tuition cost or the average difference between per-pupil unique costs of the sending districts and those of the charter schools, whichever is greater. The committee also provided some temporary relief for districts with particularly high concentrations of students attending charter or vocational schools.”

And the House budget seems to make it easier for Rhode Islanders to generate more renewable energy. The proposal “expanded the state’s net metering program to allow “virtual” or off-site net metering by all customers, opening up access to renewable energy generation to more Rhode Islanders. Net metering is a practice that allows those who install renewable energy systems such as solar panels to connect them to the electric grid and receive credit on their bill for any excess energy they generate,” according to the House news release.

But a reader sent this comment: “The budget article 18 expands net metering, but it has a completely silly cap on it (major concession to Grid), and messes up the rates (another major concession). It will serve as a disincentive to net metering, not an incentive. The PUC is in the middle of considering the right net metering rate, and this is sort of like sticking a monkeywrench into their machinery. This is in no way a win, except superficially.”

The House is expected to vote on the budget bill next Wednesday.

Incoherent reasoning behind legislative grants


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Nicholas Mattiello

Compare the following two statements made by RI House Speaker Nicholas Mattiello near the beginning and end of Monday’s overlong press conference dealing with reforms to the legislative grants process. Mattiello early on suggests that these grants help fulfill the needs of Rhode Islanders in a way that delivers services cheaper, because we can avoid the cost of hiring state employees and giving these new employees benefits such as health care and retirement.

“There are vital citizenry needs that are being performed by community agencies that are not well performed by any other state department or state agencies,” says Mattiello, “And we’re able to address those citizens’ needs without having to hire additional state employees with all the benefits that that entails.”

About 30 minutes in, however, Mattiello bemoans the fact that there is no real way to know how effective these grants are because the legislature doesn’t have “direct control” over the entities receiving the money.

“It’s difficult… to give money to an agency that you don’t have direct control over. You don’t have the same safe guards and systems in place that you do with direct state departments. It’s easier to watch state dollars being administered by state departments so that was an inherent problem and it’s one that we were mindful of when we made the determination of eliminating the entire process.”

Mattiello’s take on legislative grants is incoherent. Since there is no oversight concerning the way much of this money is spent, it’s impossible to tell how effective these grants are. Our state may literally be throwing money away. However, if we demand a system of accountability we would have to fund and staff state employees to do this work, which means paying these employees, which we can’t afford to do, despite the “vital” needs of Rhode Islanders.

Mattiello’s contradictory statements confirm what many Rhode Islanders suspect: Either these grants don’t serve the needs of Rhode Islanders or Rhode Island’s needs are not truly being met by these grants. Worse, it seems that on some level, Mattiello is aware of this contradiction.

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Rhode Island’s economy needs a workers’ agenda


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This is a really important video.

The Economic Progress Institute‘s Douglas Hall does four things in the video below. First he gives us a basic, overall big picture economic context, then he “drills down further” into the economy of Rhode Island. Then we’ll see, in big pieces, what a “workers’ agenda” might look like before finally recapping some of the good things done in our state towards advancing a workers’ agenda.

Hall gave the talk as an introduction to The State of Working Rhode Island: Workers of Color, that “highlights the many challenges facing Rhode Island workers, showing the many areas where workers of color fare less well than others.” For more info see here.

Douglas Hall, Ph.D, is the Director of Economic and Fiscal Policy at the Economic Progress Institute. The video was prepared from the talk Hall gave at the 8th Annual Policy and Budget Conference on April 26, 2016, and the Powerpoint slides he prepared.

Rhode Island's economy needs a workers' agenda

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Time for progressives to Bern down Mattiello’s estate tax reform


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Mattiello at the Grange 001As the results of last Tuesday’s primary show, RI Speaker of the House Nicholas Mattiello is seriously out of step with Rhode Island voters. Progressives in this state demonstrated the kind of change they want, yet instead of course-correcting, the speaker is doubling down on policies Tuesday’s vote clearly rejected.

One key reform Mattiello has his eye on is lowering the estate tax, the tax levied exclusively on dead millionaires. In the ProJo, Mattiello said he is “‘hearing from successful folks in Rhode Island pretty regularly lately’ that, without assistance, ‘they will be forced to leave the state,’ adding that he is going to ‘work hard to get [this] done in the budget.’”

This isn’t a new idea for the Speaker. Back in January, at the 2016 Rhode Island Small Business Economic Summit, Grafton H. “Cap” Wiley IV told Governor Gina Raimondo, Speaker Mattiello and a room full of government officials and small business owners that “it would be great if we had enough revenue to get rid of the estate tax” or if we don’t have enough revenue, “look at an increase in the exemption.”

“That’s something I’ve got my eye on,” said Mattiello.

Here’s the problem: Lowering or eliminating the estate tax does nothing for the economy. It doesn’t lead to greater entrepreneurship, doesn’t create jobs and doesn’t put money back into the economy. It’s a straight up giveaway to the 1 percent. And lest we forget, the care and comfort of the 1 percent has always been Speaker Mattiello’s primary concern. Remember his comment last year that his “well-to-do” neighbors don’t see any tax relief?

The suggestion that “successful folks” are being “forced to leave the state” because of the estate tax is frankly idiotic. This economic hokum has been debunked time and again, yet our speaker clings to this lie to justify giving more money to the already rich.

To quote the speaker, “that discussion has to stop.”

Let your legislators know that you oppose these tax cuts for the rich. Tell them what their priorities should be. Remind them of the results of Tuesday’s primary, and let’s start using our newfound progressive political power to effect real, positive change.

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Increasing Rhode Island’s minimum wage and expanding the state Earned Income Tax Credit (EITC) boosts the economy, helps thousands of Ocean State families


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Figure 1_Declining 20th Percentile Wages

The Governor’s Budget Article 13 increases the minimum wage to $10.10 next year and expands the state earned income tax credit from 12.5 percent to 15 percent of the federal credit (the Governor indicated an interest in further expanding the EITC pending available resources following the mid-year revenue forecast). Senator Goldin and Representative Slater have each introduced bills ((S 2156 and H 7347, respectively) to further increase the EITC to 20 percent of the federal credit. Lawmakers have made real progress in these two areas over the past two years and we are pleased to see a commitment to raising the labor and living standards of our workers going forward.

These two measures are particularly important in light of the persistent decline in Rhode Island’s low wages since 2000, and the gap between low wages in Rhode Island and those in Connecticut and Massachusetts, evident in Figure 1.

Research shows that coupling an EITC increase with an increase in the minimum wage has a greater impact on reducing poverty than either does on its own. This finding contradicts those who point to one approach as superior to the other in helping low-wage workers make ends meet.  Both, together, have maximum beneficial impact. Using these policies together also requires that businesses and our government both play key roles in boosting incomes for workers in low-wage sectors, which is both fair and practical.

Today, minimum wage workers do not earn enough to meet basic needs.  The Rhode Island Standard of Need, a study that documents the cost of living in the Ocean State, shows that a single adult needed to earn $11.86 per hour in order to meet his or her most basic needs in 2014.

EITC Table 1

As seen in Table 1, Rhode Island currently significantly lags its neighbors, Massachusetts and Connecticut, in the size of state EITC, and will fall behind Connecticut (and even further behind Massachusetts) for the minimum wage, unless the Rhode Island minimum is increased to at least $10.10 in 2017. Both of our neighboring states have steadily increased their minimum wages in recent years.

EITC filers pay payroll taxes, sales and property taxes, the car tax, gas tax.  Even with the increase in the state EITC to 12.5%, Rhode Island still has one of the highest effective tax rates on low-income households, when looking at the combined state and local taxes – 7th highest among all states. The EITC is the best way to provide some targeted tax relief to those who need it most.

Compared to our neighboring states, families in the bottom quintile (bottom 20 percent of family income) pay 12.4 percent of their income in state and local taxes, compared with 10.0 percent in Massachusetts, and 10.6 percent in Connecticut. Increasing the RI EITC helps close this gap modestly – a 15 percent EITC in Rhode Island would lower bottom quintile taxes to 12.2 percent, and a 20 percent EITC would lower it to 12.0 percent, according to recent analysis by the Institute on Taxation and Economic Policy, evident in Figure 2. (Higher sales and excise taxes in RI account for much of the current gap).

Figure 2_RI EITC options vs MA CT

Putting more money in the pockets of workers will also put more money in the cash registers of local businesses. Raising the minimum wage to $10.10 would put nearly $27 million in the pockets of 78,000 Rhode Island workers in low-wage jobs, money that would flow quickly into the local economy.

Raising the minimum wage and the EITC are important steps that lawmakers can take to help ensure that workers are able to keep their heads above water in the Ocean State, and to keep the Rhode Island economy on a path to full economic recovery.

Medical marijuana tax opponents rally at State House


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2016-02-23 Med Marijuana Tax 006Opponents of Governor Gina Raimondo‘s proposed tax on medical marijuana gathered outside the State House Tuesday evening to raise awareness about what some have called “an absolutely cruel proposal” to tax medical marijuana.

There is no other proposal like it anywhere in the country, and under Raimondo’s proposal marijuana will be the only medicine taxed in this way. Since the proposal has been inserted into the budget, rather than submitted as a bill, there will be no opportunity for the public to comment on the idea in House or Senate committee meetings so the only route opponents can follow to stop this plan is to pressure their Representatives to remove the item from the budget or refuse to pass the budget if the tax is not removed.

2016-02-23 Med Marijuana Tax 010Almost more pernicious than the tax, though, are the other provisions included in what amounts to a complete restructuring of the way medical marijuana is done in our state. Those who grow their own marijuana will be forced to comply with a 75 percent reduction, six plants only, drastically reducing the amount of medicine available to patients.

Caregivers, those who grow marijuana for others may only posses 24 plants.

Opponents, such as Responsible Caregivers of Rhode Island, say this will not allow caregivers to provide an adequate amount of medicine for their patients.

2016-02-23 Med Marijuana Tax 017Then there is the financial devastation this plans wreaks upon caregivers. Purchase tags are now required for all plants. $150 per plant for patients who grow their own and $350 for each plant raised by caregivers for others. This makes the cost of farming marijuana prohibitive, and many will not be able to afford this. I earlier talked to a veteran who uses marijuana, legally, to keep himself from becoming re-addicted to opioids.

Since cultivating plants is essentially farming, a loss of a crop from infestation or power loss (marijuana is cultivated with grow lights) could mean that a person’s entire investment and crop will be lost. This will be a loss of money and vital medicine. Further, the process of farming marijuana is not an exact science. If the plants yield extra marijuana the law allows a grower to “gift” the excess to those in need. Raimondo has disallowed gifting in her proposal.

You can see Raimondo’s proposed changes to the law starting on page 194 of her proposed budget here. The reasoning behind this proposal is baffling. It is simply cruelty, and in truth, much damage has already been done to a community that uses medical marijuana to treat terrible illnesses and disabilities.

As Jared Moffat, executive director of Regulate RI said at the rally outside the State house today, rather than tax the medical marijuana that patients need, why not tax the use of recreational marijuana as is being done in Colorado with great success?

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Veterans worry about Raimondo’s proposed medical marijuana tax


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Steve VetAs I walked towards the State House on Tuesday for the Taxation Is Not Compassion event, I met Steve, a disabled veteran.

Steve served in Iraq in 2005. After he was injured, the Army gave him morphine and Oxy for his pain. That started a five year addiction to opioids. After cleaning himself up, Steve relapsed, but soon found that medical marijuana helped him deal with his medical issues without the need for opioids. Governor Gina Raimondo’s proposed tax on medical marijuana frightens Steve.

“22 vets commit suicide every day in this country,” said Steve, “but if they overdose on opioids their deaths are called accidental overdoses.”

This evening Steve will be meeting with fellow veterans to try and figure out how best to defeat Raimondo’s proposal.

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Patients poised to lose everything under Raimondo’s medical marijuana tax


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2016-02-11 ACLU Medical Marijuana TaxRhode Islanders who use medical marijuana to help manage chronic and debilitating medical conditions spoke out today against a proposal in Governor Gina Raimondo’s 2017 budget that would levy heavy taxes on medical marijuana plants grown by patients and caregivers.

At a news conference held by the American Civil Liberties Union of Rhode Island (ACLU) and the RI Patient Advocacy Coalition, patients said this “sick tax” on medical marijuana would be devastating to them and many other patients and caregivers, making it extremely difficult, if not impossible, for them to access the medicine they need to manage their pain and other medical symptoms. The proposed tax, the groups said, has generated a palpable fear in the patient community and should be struck from the proposed budget.

“If these changes become law, I will be effectively forced out of the medical marijuana program,” said Peter Benson, an East Greenwich resident and medical marijuana patient who is paraplegic and uses medical marijuana to control painful and persistent muscle spasms. Benson broke his neck in a bicycle accident when he was 17. He is confined to a wheelchair. Benson called the governor’s tax “an absolutely cruel proposal.”

“Medical marijuana gave me my life back and my relationship with my wife and daughter,” said Benson. Marijuana controls the painful spasms and allows him to hold his daughter in his lap.

According to a fact sheet prepared by the Governor’s office, the new tax would impose a $150 per plant charge on patients lawfully growing marijuana for medical purposes, and a $350 per plant charge for caregivers volunteering their time and energy to grow plants for sick patients. The proposal also reduces the number of plants that patients can grow.

Ellen Smith, from Scituate, is both a medical marijuana patient and a caregiver for five other patients. She said of the proposed tax: “It would add more than $8,000 a year to the cost of growing medicine for my patients. They can’t afford it and neither can I. It is breaking our hearts.”

Smith remembers meeting candidate Raimondo who promised that she supported the medical marijuana law. Voting for Raimondo is a vote she regrets. Under the Governor’s proposal “gifting” the donation of excess marijuana to those who cannot afford to purchase it, will be taken away. Smith does all she can to care for the patients she provides for, and gifts all excess marijuana to the needy. Now she literally fears for her life and the lives of her patients.

“I will not only lose my patients, I will lose my purpose in life,” said Smith, who says the anxiety over this proposal has contributed to her suffering. One night, during a particularly bad breathing episode, she comforted herself that perhaps her death might be used to convince the Governor to change her mind.

The Governor’s fact sheet claims that each marijuana plant is “estimated to generate an average of $17,280 of annual revenue for a caregiver,” and that therefore the tax “amounts to just 2 percent of the value of marijuana produced.” But JoAnne Leppanen, executive director of the RI Patient Advocacy Coalition, noted that patients and caregivers are growing the plants for medical purposes only and make no money from the plants. “These plants produce medicine, not money,” said Leppanen.

Leppanen pointed to the difficulties and costs patients already face in growing marijuana, and said: “This is a draconian proposal based on fictional numbers that undermines the purpose of the medical marijuana program. It will wreak havoc on the lives and health of thousands of Rhode Islanders.”

“If one marijuana plant was worth $17,000 we’d be having this meeting in Hawaii,” said Benson.

A plant big enough to be worth $17,000 would be the size of the State House Holiday Tree, said Leppanen.

Bobby Brady-Cataldo was the second patient in Rhode Island to be legally able to used medical marijuana. All the marijuana she gets to treat her symptoms of MS is gifted. 80 percent of my money goes to my mortgage, she said, and she would not be able to afford medical marijuana otherwise.

The Governor’s proposal means, “people can’t give me medicine that literally saved my life. Is this ignorance or cruelty?” asked Brady-Cataldo. “They’ll give me Vicodin or Oxy, they’ll give me a drug habit, but they won’t help me.”

Steven Brown, executive director of the ACLU of Rhode Island, added: “Having a medical marijuana program means little if the state makes it impossible for all but the wealthy to actually participate in it. The patients and caregivers affected by this proposal grow medical marijuana to ease their symptoms and to help others; they are not running a lucrative drug trade. The state should treat them just as they would any other patient using legal medication. Imagine charging sick patients prescribed codeine a special tax based on the street value of the medication if they illegally sold it. We fervently hope the Governor will take this troubling tax proposal off the table.”

The ACLU has long supported the availability of medical marijuana for patients who could benefit from its use.

Patreon

Fast tracking RhodeWorks: Passing unpopular legislation in an election year


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DSC_0914Ahead of yesterday’s finance committee votes in both houses of the General Assembly approving RhodeWorks, the truck toll plan, a press conference was held at the Greater Providence Chamber of Commerce (GPCC) featuring some of Rhode Island’s most powerful political, business and labor leaders. They were there to present a unified message in support of the tolls, despite vocal opposition.

One prominent Rhode Island business owner, whose business has “been a member of the Chamber for almost as long as there’s been a Chamber” told me that contrary to GPCC President Laurie White‘s claims that this issue has been discussed with membership, he was never consulted about the plan, despite his business’s dependence on trucks for shipping. In fact, he said, “I didn’t even hear about this meeting until I heard about it on the radio this morning!”

Gina RaimondoAs I said before, RhodeWorks is inevitable. The legislation has been fast tracked not because there is a sudden, urgent need to fix our roads and bridges; the need for this repair is decades old. The legislation is being fast tracked because the necessary arrangements between the various parties involved have been carefully worked out, but in an election year, meaning that the sooner elected officials put this issue in their rear view mirror the better. Several legislators are going to be challenged for their seats because of their votes on this.

Not that Republican challengers are offering anything better. As Sam Bell pointed out yesterday, the Republican plan seems to be privatization, which means private businesses will take over our roads and bridges and charge whatever tolls they want to for profit, or their plan is cutting the budget, denying important social services to families in need. (Not to worry, though: Senate President Paiva-Weed promises that she and Speaker Mattiello will continue to cut the budget, cut taxes and cut services. More on this in a future article.)

The cost of RhodeWorks will be passed onto consumers. Ocean State Job Lot raised a stink over the weekend when they put their expansion plans on hold, threatening as yet unrealized jobs, but after this all pans out, Job Lot will not lose out on any profits: They will simply raise the price of their goods. This means that we are not imposing a user fee on businesses as much as we are coming up with yet another regressive tax that will affect the poor and middle class more than the rich, which is just the way our political leaders like it.

The General Assembly is expected to pass RhodeWorks today, and Governor Raimondo will sign the legislation asap. In the meantime, you can watch the full press conference below.

Laurie White, Greater Providence Chamber of Commerce (GPCC) President

RI Governor Gina Raimondo

Providence Mayor Jorge Elorza

Peter Andruszkiewicz, Blue Cross & Blue Shield of Rhode Island CEO and President

Scott Wolf, Grow Smart Rhode Island Executive Director

Lloyd Albert, AAA of Southern New England Senior Vice President

Michael F. Sabitoni, Rhode Island Building and Construction Trades Council President

House Speaker Nicholas Mattiello

Senate President Teresa Paiva-Weed

Woonsocket Mayor Lisa Baldelli-Hunt,
Central Falls Mayor James Diossa and
Lt. Governor Dan McKee were in attendance but did not speak.

Patreon

Regulate RI responds to Raimondo’s proposed medical marijuana tax


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regulate riGovernor Gina Raimondo recently unveiled a proposal to create a “tagging” system to track medical marijuana plants in the state. Patients and caregivers who cultivate medical marijuana for patients will be required to pay $150 or $350 per plant for these tags. Polly Reynolds, a registered medical marijuana patient who cultivates marijuana to ease her muscle spasms and pain caused by multiple sclerosis, issued the following statement:

Instead of levying hefty fees from patients like me who have debilitating health conditions, Governor Raimondo and lawmakers should tax those who use marijuana for enjoyment. For us patients, marijuana is often the only thing that eases our suffering, and it is already difficult to afford because health insurance does not cover it. Raising revenue from seriously ill patients’ medicine is wrong, but taxing recreational consumers is appropriate and could help alleviate our state’s deficit.”

Jared Moffat, Director of Regulate Rhode Island, issued the following statement:

We tax alcohol, but not prescription medications. Similarly, it makes little sense to extract revenue from sick people who need marijuana as a medicine while keeping marijuana that is used for fun untaxed and in the illicit market. I suspect most recreational marijuana consumers would be happy to pay taxes if only the state would make it legal for them to do so. In addition to generating more revenue, regulating marijuana like alcohol would erode the illicit marijuana market and create new businesses and jobs all over the state. It’s time to get our head out of the sand and move forward like our neighbors in Massachusetts and Vermont.”

[From a press release]

RI political leaders ignore evidence, pursue failed economic policies


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2-3-16sfp-f1A new report calls into question many of the job growth strategies being pursued and implemented by our state leaders. “To create jobs and build strong economies,” say economists Michael Mazerov and Michael Leachman in their new report, “states should focus on producing more home-grown entrepreneurs and on helping startups and young, fast-growing firms already located in the state to survive and to grow ― not on cutting taxes and trying to lure businesses from other states.”

The report, State Job Creation Strategies Often Off Base takes advantage of new data accumulated over the last fifteen years “about which kinds of firms create jobs” and the data shows that the “vast majority of jobs are created by businesses that start up or are already present in a state — not by the relocation or branching into a state by out-of-state firms.”

The immediate takeaway from this report for Rhode Islanders is that Governor Gina Raimondo’s planned (yet not realized) trip to Davos and the time she spent trying to persuade General Electric (GE) to move to Rhode Island rather than to Massachusetts are wastes of time and money. Raimondo’s offer to GE was in the “same neighborhood” as Massachusett’s $140 million in state and city incentives and grants.  Given the conclusions in this report, Rhode Island dodged a bullet when GE turned Raimondo’s offer down.

I asked the authors of the piece directly about the governor’s plan to travel to the World Economic Summit in Davos and they told me, “That is not where state economic development comes from and that’s really not where policy makers should focus. They should focus on homegrown businesses and try to stimulate startups and helping their businesses that are already in the state to find customers and find the skilled workers they need. Business recruitment accounts for such a tiny share of job creation and that’s really a major point of this paper. It is not where the priority should be placed.”

In other words, we are, as a state, pursuing failed economic and job creation strategies, and we will continue to fail unless we take this new data seriously.

On average, 87 percent of new jobs are created by businesses already in the state. In the chart below, you can see that Rhode Island is no outlier in this department. The remaining 13 percent of jobs come from out of state businesses branching into the state (think of a restaurant chain in Boston adding a store in Providence) or a business actually relocating into the state, as GE recently did when they moved to Massachusetts.

vastmajorityofjobgrowthcomesfrominstatebus-rc_450

What kind of businesses stimulate job creation? The report stresses that “startups and young, fast-growing firms are the fundamental drivers of job creation when the U.S. economy is performing well.”

The report quotes economist John Haltiwanger and his colleagues as saying, “Overall, the evidence shows that most start-ups fail, and most that do survive do not grow. But among the surviving start-ups are high-growth firms that contribute disproportionately to job growth. These high-growth young firms yield the long-lasting contribution of start-ups to net job creation.”

The firms that take off are called “gazelles.” Think Google, Amazon, Tesla or Under Armour, or, in Rhode Island, think NuLabel. These kind of firms accounted for about 15 percent of all businesses, but were responsible for half of gross job creation from 1992-2011.

Failed Policies

In trying to create a “business friendly climate” that will lure small businesses to the state, our leaders, like leaders in many other states, have pursued strategies that are “bound to fail because they ignore the fundamental realities about job creation revealed by the new data and research discussed above.” A favorite failed strategy is tax cuts for “small businesses.”

These tax cuts are not properly aimed at young businesses, they are aimed at small businesses.  Most small businesses don’t have employees or plan to add employees. And targeting tax cuts to young businesses has little effect because most young businesses spend so much money on new equipment, product testing and marketing that they have little in the way of taxable income in the first place.

Tax cuts don’t help a state’s business climate, but they do hurt a government’s ability to do the important work of funding education and maintaining a top notch infrastructure. The report cites an Endeavor Insight study that showed that only 5 percent of entrepreneurs cited low tax rates as a factor in deciding where to locate their company, whereas 31 percent cited access to talent (education) and a city’s quality of life as a factor.

Offering tax breaks and non-tax incentives to lure out-of-state companies to our state is also a losing game. In Rhode Island we are addicted to TSAs, Tax Stabilization Agreements, which allow companies and developers to avoid paying their fair share of taxes and shifts the businesses’ tax burden onto the rest of the city or state taxpayers. As the report clearly shows, “jobs gained due to firm relocation are such trivial factors in a state’s overall job creation record that they should not be a consideration in formulating state tax policy or economic development policy more broadly.”

A look at statements made at the recent Greater Providence Chamber of Commerce luncheon reveals that our elected leaders haven’t gotten this message yet.

Here’s Senate President Teresa Paiva-Weed talking about the importance of tax cuts:

Here’s Senate Majority Leader Dominick Ruggerio talking about tax stabilization agreements to spur development:

Here’s Senate Minority Leader Dennis Algiers on “broad-based” tax cuts, which we’ve seen are not only not effective, they are counter-productive:

Here’s Speaker of the House Nicholas Mattiello talking about how “incentives” (i.e. tax breaks) “attract new people to our state.”

Continuing to pursue strategies that have been shown to hinder rather than help in job creation would be foolish in light of the data in this new report. Instead, “policy needs to focus on encouraging entrepreneurship generally, helping new businesses to survive, and enabling businesses with the potential to become high-growth firms to fulfill that potential.”

Patreon

Two protests rock State House during Governor’s budget address


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2016-02-02 State House 018
Jesus Holguin, EJLRI

As Governor Gina Raimondo presented her budget to the General Assembly and the television viewers at home, she was being simultaneously protested by two groups. The first was a coalition of environmental groups opposed to her support for the expansion of fossil fuel infrastructure in Rhode Island, and the second was made up of undocumented workers and their allies, there to hold the Governor to her promise to make driver’s licenses available to all.

The evening started with members of FANG (Fighting Against Natural Gas), BASE (Burrillville Against Spectra Expansion), Fossil Free Rhode Island and the Environmental Justice League of RI (EJLRI) coming together to protest the Governor’s support for three fracked gas projects in Rhode Island: Invenergy‘s planned fracked gas power plant, the Clear River Energy Center, to be built in Burillville; Spectra Energy‘s planned expansion of pipelines and a compressor station in Burrillville; and National Grid’s planned liquefaction plant at Field’s Point in South Providence.

2016-02-02 State House 024About five minutes before Senate President Teresa Paiva-Weed, as per tradition, lead Governor Raimondo to the House Chambers, English for Action, a group dedicated to improving the lives of immigrants and undocumented workers, entered the State House to stage their own protest. Candidate Raimondo had promised this group that she would issue an executive order, within her first year in office, allowing undocumented workers to get driver’s licenses.

The Governor has broken this campaign promise.

The two groups lost no time in joining forces and ascended the stairs to the second floor chanting and marching. They were kept from approaching the entrance to the House Chambers by Capitol and State Police who formed a line in front of them. The protests were loud, but completely peaceful.

2016-02-02 State House 021
Governor Raimondo

After the Governor entered the House Chambers to deliver her State of the State address, (successfully avoiding any contact with protesters) the two groups briefly separated before joining forces on opposite stairways in the main rotunda. Here they gave a series of short speeches explaining their positions and pledging to support each other’s efforts.

As EJLRI’s Jesus Holguin said to me afterwards, the two issues are actually more related than they might appear. The same forces that drive people from their home countries to seek work in the United States are working to keep the United States addicted to fossil fuels. During his address to the crowd, Nick Katkevich of FANG pointed out that English for Action is one of many groups that has signed onto FANG’s letter opposing the power plant.

The two groups pledged to support each other’s issues and future actions.

One thing that became abundantly clear is that the number of people who are willing to protest the Governor (and, as we saw yesterday, Senator Sheldon Whitehouse) is growing. Katkevich asked those present to join with FANG “everywhere the Governor goes” to call Raimondo out on her support for the power plant.

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Patreon

CFED Report: Rhode Islanders still struggling, especially with homeownership


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EPI LogoNew data released today by CFED (the Corporation for Enterprise Development), a national partner of Rhode Island’s Economic Progress Institute, shows that too many Rhode Island families remain economically vulnerable. Smart public policies that create opportunities for families to save and make investments in their future prosperity pay huge dividends for all of us. The Assets and Opportunity Scorecard, now published annually, shows Rhode Island ranked 35th overall in Outcomes, despite ranking 8th overall in the Scorecard’s Policy measures.

Doug Hall, Director of Economic and Fiscal Policy at the Economic Progress Institute isn’t surprised by these findings: “We see the economic vulnerability of Rhode Island families in wage and income data (as shown in our recent State of Working Rhode Island: Workers of Color report). Until Rhode Islanders have good jobs that pay economy-boosting wages, they won’t be able to set aside savings or invest in homes or businesses.”

Across five main issue areas, Rhode Island fares in the middle of the pack in four issue areas (Financial Assets and Income, Businesses and Jobs, Education, and Health Care) but nearly dead last for Housing and Homeownership.

Rhode Island’s outcome indicators point to a number of areas where improvements need to be made to improve the financial security of Ocean State families. Rhode Island scores very poorly (40th or worse) in 14 areas, including 8 indicators for housing/homeownership:

  • Income inequality (46th out of 50 states and the District of Columbia)
  • Business value by race (44th)
  • Underemployment Rate (40th)
  • Homeownership rate (46th)
  • Homeownership by race (50th)
  • Homeownership by income (51st)
  • Homeownership by family structure (50th)
  • Delinquent mortgage loans (49th)
  • Affordability of homes (43rd)
  • Housing cost burden – homeowners (46th)
  • Housing cost burden – renters (45th)
  • Uninsured by race (45th)
  • Uninsured by gender (49th)
  • Average college student debt (46th)

While Rhode Island’s poor performance on housing/homeownership outcomes in the Assets and Opportunities Scorecard is not new, it is striking. Jim Ryczek, Executive Director of the Rhode Island Coalition for the Homeless responds:

“While Rhode Island clearly has much work to do to meet the state’s housing needs, we have significantly increased funding of programs to solve homelessness. We need to match that progress with investments that provide housing options for all Rhode Islanders.”

It is also noteworthy that Rhode Island falls in the bottom 11 rankings in three of the six outcome measures that look at disparities by race/ethnicity. National data show stark disparities in wealth based on race and ethnicity. We know that here in Rhode Island, racial disparities in wages and income are significant. The lack of good state-based data on wealth prevents us from fully understanding these disparities, which in turn prevents us from addressing the challenges with the necessary urgency. Another new report released last week by the Annie E Casey Foundation addresses the need for better data:

“To properly gauge the effects of policies and practices on families’ ability to build assets, we must have the right tools. Data on family assets are meager and difficult to access, particularly for various racial and ethnic groups. The federal government should explore better mechanisms to track that information, such as representative surveys for national and state use with questions on savings behavior and asset holdings or additional questions in the U.S. Census Bureau’s American Community Survey.” Annie E Casey Foundation, Investing in Tomorrow: Helping Families Build Savings and Assets

CFED has been publishing the Asset and Opportunities Scorecard since 2002. It remains a key benchmark in tracking important policy and outcome measures, and highlighting best practices in state policies addressing these areas.

Key policies that Rhode Islanders can adopt to provide greater opportunities for Rhode Island families include:

  • Increasing the state Earned Income Tax Credit to 20 percent of the federal credit.
  • Further Increasing the minimum wage.
  • Providing protections from predatory lending such as payday loans.

These and other measures that boost family incomes will help families set aside savings while investing in assets such as a home.

[From a press release]

Business leaders decide issues elected officials will pursue at economic summit


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2016-01-08 Stefan Pryor RI Small Business Economic Summit
Stefan Pryor

“Today is about you putting your issues on the table and [about] how you can influence the decision making process that we have in this great state,” Mark Hayward, District Director of the Rhode Island Small Business Association (SBA) told an eager gathering of business owners, lobbyists and politicians, “Your participation at this Summit will essentially decide… the direction of [economic and business] issues that are going to be critical to you over the next year.”

The 2016 Rhode Island Small Business Economic Summit (Summit) is held at Bryant University and sponsored by the SBA and the Center for Women and Enterprise. A long list of state senators, representatives and gubernatorial staff come out to this event every year. Big names include Speaker Nicholas Mattiello, General Treasurer Seth Magaziner and Governor Gina Raimondo. It took Hayward two minutes to list the the government reps appearing, and he didn’t get them all. It’s the kind of political access social justice groups cannot imagine.

The point, says Hayward, “is to provide an opportunity for members of the small business community to have a discussion with members of the General Assembly and the [Governor’s] administration and,” he says, “over the years, we have succeeded because many of the issues that are being taken up today, derive from the Summit.”

2016-01-08 Economic Summit
The sold old Summit

Hayward introduced speaker Stefan Pryor, Rhode Island’s Secretary of Commerce. Pryor painted a rosy picture of Rhode Island’s economic future, saying, “We’re beginning to see the optimism lift, we’re beginning to see the unemployment drop, we are starting to see the new projects start, and we are starting to see the pessimism dissipate.”

Pryor did not mention the cruel poverty that affects nearly 1 in 5 children in our state, but he did mention that the state is “still suffering from unemployment. We still compete for the worst unemployment rate in New England.”

Pryor did not draw a connection between the high unemployment, high poverty and what he called a “favorable tax climate” for business. “We have the lowest corporate tax rate in the northeast, a hard-earned distinction at 7 percent. In the recent session we completely eliminated the sales tax on energy, the Business Energy Tax. It’s not an easy tax to eliminate a tax entirely but it’s gone. Gone forever.”

Pryor assured those in attendance that Rhode Island will not be raising taxes on business owners. “We have not raised a major tax, corporate, income or sales, in twenty years,” said the Secretary with pride, “Think about that relative to tax stability and at the same time we’re axing taxes.

“Why do we think we can maintain that kind of stability going forward? In this past session we put the final touches on and solidified pension reform that then General Treasurer Raimondo had begun. With all your help, Medicaid reform, in a substantial way, was undertaken.

“These structural reforms will save Rhode Islanders over $4 billion dollars over the next 20 years” and “this will ensure future retirement security and future budgetary stability, said Pryor, “That’s the platform we’re building. The hybrid of generations of discipline and not raising taxes, even when times were tough.

“These are the signs of responsible budgeting and sensible fiscal stewardship.”

You can watch all of Pryor’s remark Here:

Patreon

RIPTA Riders Alliance rallies against elderly/disabled fare increases


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2015-11-19 RIPTA Riders 006The RIPTA Riders Alliance held a rally and press conference outside the State House yesterday to call attention to the proposed increases in fares for elderly and disabled passengers. As has been reported here before, in order to close a budget gap, the General Assembly and Governor Gina Raimondo authorized RIPTA (Rhode Island Public Transportation Authority) to do away with free rides. In response, RIPTA is planning to charge, “all disabled people and seniors $1.00 per ride during peak AND off-peak hours, regardless of those passengers’ income levels.”

Other fare increases for monthly and weekly passes and transfers have been proposed, as well as eliminating discounts on multi-ride tickets.

Many seniors and disabled passengers live on fixed incomes and will be negatively impacted by this rate increase. Though the state will provide rides for scheduled doctor’s visits, free rides will not be provided for shopping, visits with friends and relatives, or attending political rallies. Those stuck at home will face isolation and declining health outcomes.

Balancing budgets on the backs of the most vulnerable populations in a state that continues to cut taxes on the wealthiest, is a moral outrage.

State Senator Harold Metts and Representative Aaron Regunberg both addressed the crowd and promised to revisit RIPTA funding when the new session of the General Assembly begins in January.

Here are RIPTA’s proposed fare hikes for early 2016, from the RIPTA Riders Alliance press release:

SENIORS AND DISABLED PEOPLE will be charged $1 per ride. Disabled people must go back and submit proof that they’re disabled again.

MONTHLY PASSES will go up from $62 to $70.  Weekly passes will go up from $23 to $25.  The 15-ride pass will be discontinued and replaced with a 10-ride ticket costing $20.

TRANSFERS, which now cost 50 cents, will double in price.  The new transfers will cost $1 for regular riders and are usable for travel anywhere in a 2-hour period.

SENIORS AND DISABLED PEOPLE will pay 50 cents per transfer.  If they want a monthly pass, that will be $35 per month. Weekly passes will be $12.50.

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Patreon

Gina Raimondo no champion of reproductive rights


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Raimondo
Gina Raimondo

When Governor Gina Raimondo signed the budget on Tuesday, she officially signed into law language that stands as the most extreme anti-abortion language passed in Rhode Island in two decades. And because it was slipped into the budget as part of the language that codifies HealthSource RI, the state’s highly successful Obamacare insurance exchange, and not submitted as a bill, this new law was passed with no legislative debate and no chance for any input from the public.

Shockingly, this end run around democracy and against reproductive rights came from Rhode Island’s first woman governor, Gina Raimondo, who sailed to victory with the endorsement of Emily’s List and Planned Parenthood, and with the help of a putatively Democratic majority legislature.

How did this happen?

In Rhode Island, support for the right to abortion polls at 71 percent, surprisingly high for a state that hosts by percentage the greatest number of Catholics in the country. Former Governor Lincoln Chafee, a stalwart defender of reproductive rights, vetoed a “Choose Life” license plate bill, a bill that would have split the money for the vanity plate between the state and right wing Christian “abortion counseling” centers that offer false hope to women dealing with crisis pregnancies. Rhode Island stands as one of the few states to have defeated these license plates.

Simply put, in Rhode Island, reproductive rights are only controversial among a small group of right wing activists, fronted by the Rhode Island State Right to Life Committee and the Roman Catholic Diocese of Providence, who use the issue to advance their narrow political objectives.

It was this small group of activists that helped concoct two lawsuits, with the help of the right wing religious advocacy group the Alliance Defending Freedom (ADF). Doe v Burwell  and Howe v Burwell were brought against HealthSource RI because there no plans offered on the state’s health exchange that did not cover abortion.

Doe, who chose to remain anonymous because of his HIV+ status, claimed that he was unable, due to his religious beliefs, to contribute money to any health plan that covered abortion, and that his needs as an HIV+ man meant that waiting until 2017 for the one plan that does not cover abortion mandated under Federal law was not practical. In addition to his health concerns, Doe claimed he was liable for fines fines levied against him for not selecting one of the plans currently available on the exchange.

The government’s reaction to the Doe lawsuit was swift: They completely caved. The state agreed to dismiss Doe’s fines, enroll him into a special plan that satisfied his moral objections to abortion, and require that the Rhode Island Office of Health Insurance Commissioner issue a mandate that there be a plan offered on the state’s health exchange that did not cover abortion at every tier of coverage.

In return, the ADF withdrew their lawsuit. Ten days later, on May 29, Governor Raimondo added the agreed upon language to her proposed budget as an amendment.

Under federal law, at least one plan that did not cover abortion had to be made available on all state exchanges by 2017. The settlement the state agreed to went far beyond that mandate.

In Rhode Island, adding new language through the budget process means that there will be no opportunity for public comment or meaningful public debate. The budget is submitted by the governor and re-crafted by the RI House of Representatives in a process that is conducted mostly behind the scenes. John Marion, executive director of Common Cause RI, a government accountability group, has called it “transactional politics.” When the budget comes to the House floor for a vote, specific parts can be debated by legislators, and amendments can be added, but the public gets no chance to directly comment.

The language Raimondo added is problematic for businesses. James Rhodes, director of public policy & government relations at Planned Parenthood Southern New England, asked, “How does a small employer, whether a religious organization or not, claim a religious exemption from covering abortion? Do they have a form to fill out to submit to the Office of Health Insurance Commissioner to declare their objection in order to get a new plan variation from an insurer? Is there any requirement to notify insured employees that their insurance does not cover this service, which is standard coverage in the small group market?”

The new language provided no process by which employers declared their objections and no process by which employees were to be notified of their employers decisions. This is important because a woman might think her health plan covers abortion, only to find out that her employer has decided, on personal religious grounds, not to cover the procedure without informing the employees.

“It is worth emphasizing that the federal health care law already imposes significant restrictions on abortion access through health care exchanges,” Steve Brown, executive director of the RI ACLU. “The additional burdens that passage of this budget article could impose, particularly on unwitting employees, is deeply troubling.”

As I tweeted at the time, “Gina Raimondo’s budget addition may allow a thousand Hobby Lobbies to bloom across Rhode Island.”

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Nicholas Mattiello

Immediately after Raimondo’s amendment was submitted, rumors began to swirl that the language was inserted as some sort of backroom deal to save HealthSource RI at the expense of women’s reproductive rights. Indeed, Speaker of the House and right wing Democrat Nicholas Mattiello had been vocal about his desire to turn the state health exchange over to the federal government.

Language that limited women’s access to abortion was rumored to be the price paid for keeping control of the health exchange in Rhode Island. However, it has been impossible to source this rumor. Rather than being concerned with limiting women’s abortion access, Mattiello’s public statements were all about the high cost of administering the health exchange on the state level.

For instance, Mattiello said that, “he would not have signed on [to including HealthSource RI in the budget] unless HealthSource administrators had significantly reduced their cost projections to the point where the surcharge could be “at or below” the level it would be if the state handed the exchange over to the federal government…”

On the House floor, during the strangely curtailed debate on the budget, an amendment was approved that somewhat mitigated the damage done by Raimondo’s abortion language. This new language, crafted with the help of Planned Parenthood and the ACLU, required any non-religious employer, as defined by the IRS, that elects to not include abortion coverage in their employee health plan, to allow employees to opt out of the company plan, and select any other plan, paying any additional costs.

This makes Rhode Island the first state to build language into its state exchange that protects those who want a health care plan that provides abortion coverage. A minor victory, considering that this imposes additional health care costs on women. If an employer elects not to cover abortion in their health plans, women pay additional fees out of pocket.

Additionally, women may find themselves in a difficult spot when it comes to dealing with employers who choose not to cover abortion. Opting out of the employer’s health plan may serve as a signal to employers that the employee is pro-choice. This may have an effect on a woman’s ability to secure raises, promotions or other workplace benefits if an employer chooses to act on this assumption in a biased or bigoted manner.

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Bernard Healey converses with Arthur Corvese on the House floor

The Planned Parenthood amendment was supported by an unlikely coalition of legislators, including long time pro-choice Representative Edie Ajello and long time abortion and LGBTQ rights foe Representative Arthur Corvese. But behind the scenes, no one was happy with the compromise. A source confided to me that Barth Bracy, executive director of RI Right to Life, Providence Catholic Diocese lobbyist Bernard Healey and conservative Democratic Representative John DeSimone, were railing against the compromise language during last minute backroom negotiations.

The amended amendment passed and the entire budget passed unanimously and in record time.

After the budget passed the House, both sides declared victory.

Bracy explained in a newsletter that the “victory” was “the fruit of six years of intense legislative, political, and legal battle.” (Bracy did not explain how the seeds of this victory were planted a year before Obamacare became law.) Bracy further explained, or rather, did not explain, that, “Due to the complexity of Obamacare, and its implementation in Rhode Island, neither the media nor our opponents at Planned Parenthood and in the pro-abortion caucus of the General Assembly, yet appear to understand the extent of our victory.”

Bracy promises to explain the completeness of his victory after the Governor signs the budget.

Meanwhile, James Rhodes of Planned Parenthood claimed partial victory, dinging Raimondo for choosing “to widely expand the number of plans that do not cover abortion beyond federal minimum standards” while doing “nothing to protect abortion access for employees of small businesses in Rhode Island.”

Rhodes went on to say, “In the wake of the Hobby Lobby Supreme Court decision, we were surprised the Governor did not seek protections for employee access to comprehensive reproductive health care. It is clear that leaders in the House and Senate recognized this budget loophole. The passed budget includes an invaluable amendment that will allow employees of small businesses that claim an objection to covering abortion, to enroll in the HealthSource RI Full Employee Choice program.”

In the end, the right of some women to access reproductive health care has been eroded in favor of the fake right of employers to not provide such healthcare on religious grounds. For her part, the Governor’s office has refused repeated requests for clarification.

Given the transactional and punitive nature of RI politics, no one in the legislature seems willing to go on record about this debacle.

This new assault on women’s rights is the spawn of the odious SCOTUS Hobby Lobby decision, based on the Religious Freedoms Restoration Act (RFRA), writ small a thousand times. I’ve argued before that it’s past time to repeal or at least seriously amend Rhode Island’s RFRA, and just recently the ACLU seems to have reached the same conclusion.

Meanwhile, those who supported Gina Raimondo’s bid for Governor of Rhode Island might want to seriously reconsider their support. She has revealed herself as no champion of reproductive rights.

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Senate Finance approves budget while advocacy groups respond


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Senate Finance beginning to discuss the FY16 budget
Senate Finance beginning to discuss the FY16 budget

Much like its House counterpart, the Senate Finance Committee passed the FY16 budget bill unanimously with almost no discussion other than to speak on its merits.

“I would certainly characterize this budget as one that is not only ambitious, but one that makes a significant investment in areas that should have been invested in in the past,” Chairman Daniel DaPonte (D- District 14) said to begin the meeting. He added in a press release that the budget helps to put Rhode Island back on the right track economically.

“This is a budget that Rhode Island’s economy needs and through its passage will continue the economic stability and reform that delivers the message that Rhode Island’s economy is back and open for business.”

One of the short discussion points brought up during the meeting was whether or not the budget provided opportunities for youth.

“There have been some pockets that have been filled here, but I suggest that next year we consider providing more job opportunities for youth,” Senator Juan Pichardo (D- District 2) said.

DaPonte agreed with Pichardo, but also reminded the committee that there is no one specific way to keep youth working in the state.

“I think initiatives to focus on keeping young people here and getting them up and running are incorporated in the budget in a variety of different places and a variety of different ways,” he said. “I think the sum of all these parts is a statement to us not only wanting to keep these folks here, but increase the number of opportunities available.”

The night before, the House of Representatives was very kind to the bill as well, passing it through to the Senate after a swift three-hour session. Before its passage, many took the time to thank not only House Finance Committee Chairman Raymond Gallison (D- District 69), and Speaker Nicholas Mattiello, but the House Fiscal Advisory staff as well.

Other groups outside of the State House are also pleased with the budget. Planned Parenthood, which fought against the restrictive abortion insurance coverage in Article 18, said in a press release that they are pleased with the outcome of the bill.

“While we were disappointed the governor unnecessarily chose to widely expand the number of plans that do not cover abortion beyond federal minimum standards, the action by the General Assembly today ensures employers cannot unilaterally limit reproductive health care service coverage for their employers. This amendment will require employers and insurance carriers to clearly indicate when an employer is opting out of covering certain reproductive healthcare services, so that no one will be surprised by a lack of coverage for routine procedures.”

But, while many have championed the budget as a success story, there are still those that are dissatisfied. Common Cause Rhode Island, an advocacy and lobbyist group for transparent government, has expressed discontent with the budget’s provision for Governor Raimondo’s pension settlement.

“This extraordinary legislation, that will affect every Rhode Islander – and every Rhode Island state and municipal budget – for decades, should not be rolled into the annual budget as if it were just another article,” said executive director John Marion. “The budget debate that typically occurs in a single evening and includes debates on amendments concerning dozens of issues is not the place for this important legislation. It deserves special consideration so legislators, as much as they did in the special session in 2011, can take this up on the merits alone.”


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