Gina Talks Progressive Politics, But Not With RI


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One of the most interesting aspects of the Washington Post op/ed about Gina Raimondo is not that another fiscal conservative has lauded the pension-cutting treasurer for taking benefits away from retirees, it’s that Raimondo invoked progressive politics in her defense of balancing Rhode Island’s pension problems squarely on the backs of public sector retirees.

“That was my mantra the whole time: Progressives care about public services,” she is quoted as saying in the piece.

I certainly don’t recall that being Raimondo’s mantra the whole time. I recall her mantra being that she had to investigate the actuarial numbers closely before determining a policy proscription, and that she wanted to do what was fair.

Part of the progressive community’s mistrust of Raimondo stems from her penchant for tailoring her message to different constituencies. Last year, I witnessed first hand her tell a chamber of commerce crowd in the morning that Rhode Islanders needed them to lobby legislators to cut pensions because Rhode Island had the most unfunded system in the country. Later in the day, she told a union crowd at a Portuguese American Club that fairness was her top concern, and she still didn’t know what the reforms would look like.

To that end, I have been requesting an interview since the early spring about how Raimondo’s pension efforts fit with her assertion that she is a progressive and still haven’t heard back one way or another.

We’d like to hear more about Raimondo’s mantra about what progressives care about, and hope she agrees to talk to this organization about that topic.

I also found it interesting that Ted Nesi, who never misses an opportunity to talk up the treasurer, described the author of the piece as being “relentlessly centrist.”

This isn’t quite Fred Hiatt’s reputation. In 2009, Harper’s ran a story about Hyatt’s attempts to “push the WaPo editorial page to the Neocon right.” And in 2010, Media Matters (which, like this website, has a decidedly progressive bent) posted an article titled, “The myth of the ‘liberal’ Washington Post opinion pages.”

Here’s how that piece described Hiatt:

Finally, we come to Fred Hiatt, the so-called “traditional liberal in all matters domestic.” He’s the kind of “traditional liberal” who thinks health care reform is too expensive — all while disregarding liberal reform proposals that would reduce the cost. The kind who distorted Barack Obama’s comments while praising John McCain’s strongly held “principles” on issues on which McCain had shifted and displayed inconsistency. The kind who allows Will to mislead readers about climate change, over and over again. And Hiatt, of course, opposed a special prosecutor examination of Bush terror practices. (Argue, if you like, that applying the rule of law to government officials is not a domestic matter — but I don’t buy it.)

A few of the guest op-eds published by Hiatt are worthy of mention. Last summer, the Post published an op-ed in which Martin Feldstein falsely claimed that Barack Obama supported “a British-style ‘single payer’ system in which the government owns the hospitals and the doctors are salaried.” When the inaccuracy of Feldstein’s claim was pointed out by, among others, Jon Chait and Paul Krugman, Hiatt refused to run a correction. Instead, he has rewarded Feldstein by publishing two more of his op-eds attacking “Obamacare,” Feldstein’s opposition to which may have something to do with his .

Hiatt published two op-eds by Sarah Palin last year, one of which repeated several already-debunked claims about climate change. The Post dragged its feet in running a response to Palin, doing so only after running a Palin letter to the editor.

Last October, Hiatt handed insurance company lobbyist Karen Ignagni op-ed space to tout a deeply-flawed “study” her organization commissioned — a study the Post’s news pages had already debunked. In August, Hiatt ran an op-ed defending the “death panels” lie. Last spring, Hiatt published an op-ed by Charles Murray, darling of the “white nationalist” VDARE crowd. And just this month, the Post actually commissioned a column baselessly asserting that liberals are more condescending than conservatives.

It seems the real reason The Washington Times has never been able to make any money may be that its hard-right editorial stance is redundant in a city that already has Fred Hiatt’s Washington Post.

The Raimondo-Michael Nutter Connection


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I know this past week end Rhode Islanders were busy saying good bye to summer. Some shut down their beach houses for the last time while others prepare their children for pre-K, elementary and high school and still others made the trip to return their teens to college. So it is quite understandable that many missed this small paragraph about Gina Raimondo on Page A11 of Sunday’s Projo:

“one of her goals will be to seek out like minded Democrats such as Philadelphia Mayor Michael Nutter to swap ideas –how best to tackle pension overhaul for example.”

Let me explain to you who Michael Nutter is. He is the mayor of Philadelphia, a city whose state has an abundance of untested charters. Nutter recently said:

“He saw no difference between public, private and religious schools and thinks they should all be funded .”

This is the state where its Pennsylvania Governor Corbett and the Republican controlled legislature acted as fast as they could to slash $1 billion from public schools, install voucher-like tax credit programs, and privatize struggling districts, handing their schools over to corporations run by their largest campaign donors.

So why would Gina Raimondo want to associate herself with Pennsylvania’s ways unless she too, wants to follow the path of vouchers and privatization like PA does.

She may wish to join the municipal pension reform crowd as her outward agenda but then again she may be looking at possible future education changes since she does want to run for 2014 governor.

The facts show that Deborah Delisle, USDE Assistant Secretary noted that 30 states applied for NCLB waivers to gain some flexibility in dealing with its stringent requirements. However, Pennsylvania was not one of them.

Again I reiterate, I find it very curious that Raimondo wants to speak with Philly’s mayor on municipal pensions and who knows what other topics can crop up in discussion….

There was a White House Conference where many in the room expressed serious frustration with Governor Corbett’s apparent preference to have schools labeled failures and refusal to seek relief through the waiver program. The PA Department of Education declined to send anyone to this White House forum, but Students First PA was there.(Michelle Rhee, founded Students First in Florida-Rhee was DC school leader where rampant high stakes testing cheating took place under her so-called leadership ) This group funnels superPAC millions to the campaigns of lawmakers who promise to deliver vouchers and give away public funds to private and religious schools through tax credit schemes.

So again, I wonder why one of Gina Raimondo’s convention goals is to associate with Philly Mayor Nutter.

In this blog from Dr Diane Ravitch, historian and former Asst Sec of Education, she says this:

Philly Mayor: No Difference Among Public, Private, Religious Schools?

August 28, 2012

The mayor of Philadelphia says there is no difference among different kinds of schools, be they public, private, religious, charter, whatever.
He sees no special responsibility to support public education.

In a sense it is understandable since the people of Philadelphia lost control of their schools to the state years ago.
And the state imposed a massive privatization scheme, which failed.

And now the state control board for the public schools wants to try privatization again.

Parent activist Helen Gym explains to Mayor Michael Nutter why public education matters to the people of Philadelphia.

Investigative reporter Daniel Denvir followed the money trail and uncovered a reason for Mayor Nutter’s indifference to the powerless people of Philadelphia: the big money in the city and suburbs is betting on privatization. The campaign to privatize the schools of Philadelphia has raised $50 million, while the public schools are neglected.

PS  You might want to read this:
http://online.wsj.com/article/SB10000872396390444301704577629342468215790.html?mod=WSJ_Opinion_LEADTop

You see, I believe that who a person associates with, adds immeasurably to who they really are…Their persona, temperament,  belief system, views, character, personality and behavior create their image. It is this image we need to explore  to determine if we really want these people making important decisions for us if and when they decide to run for political office.

I will not vote for anyone who says one thing and does another. And I am sure the readers of this blog feel the same way. This is why we must be vigilant to the words and actions of potential candidates. If they turn out to be hypocrites, then you know they never had your personal interests in mind but their own agendas.

Progress Report: Chafee Not a Democrat, Nor Should He Be; WSJ Loves Raimondo, Bond Markets: 1, Central Falls: 0


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Downtown Providence from the Providence River. (Photo by Bob Plain)

The Democratic National Convention kicks off tonight and the question Rhode Island should be asking when will Gov. Chafee addresses the convention is not when will our independent governor become a Democrat; the question is why would he. Two reasons he won’t: Angel Taveras and Gina Raimondo. Great piece by Dan McGowan.

Speaking of the convention, here’s a link to the Democrats platform for 2012.

The Wall Street Journal editorial board, one of the most conservative groups of writers around, thinks more Democrats should act like Gina Raimondo. Or, in other words, they think more Democrats should act like Republicans. In other news, the editorial board at The Granma (the state run newspaper in Cuba) thinks Democrats should act more like Hugo Chavez.

Forget, for a moment, Paul Ryan’s draconian economic plan that would crush the middle class or his bigoted social policies, the worst thing about the GOP candidate for vice president is that he’s apparently a giant liar. Here’s a list of some of his bigger fibs from the convention.

How did Central Falls fare in bankruptcy? From Reuters: “…the plan for Central Falls reassured the credit markets, but scarred the city. The smallest city in Rhode Island and the only one ever to file for bankruptcy will emerge with powerless elected officials, property owners facing tax hikes every year and retired public employees irate about having their pensions slashed.” Bond investors 1, local residents 0.

More on the North Kingstown strike to fight for economic justice for the school janitors: “It’s an understatement to say that the pressure is building. But it’s hard to avoid the metaphor when you see the bursts of steam. You can still hear the lid rattling, and you know it’s going to erupt. The only question is when. That latest burst of steam in Rhode Island came on August 28, when North Kingstown Schools did not open on schedule.”

It’s organized labor vs. Super PACs in swing state Ohio. The presidency might hang in the balance.

On this day in 1886, Geronimo surrenders.

 

Progress Report: Accusations and Employment; Gemma’s Fake Followers; Gina’s Finance Friend; Paul Ryan


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Conservatives across Rhode Island are upset that a Warwick public works employee didn’t lose his job after being accused of stealing from the city. Accused, mind you, not convicted. Meanwhile, not a peep from the right about what WPRO should do with the state’s biggest blowhard John DePetro, who is accused of something far worse than property theft. He’s accused of sexual harassment, something that can cause serious emotional scars on another human being. But I suppose so long as it doesn’t cost them any money, conservatives just don’t care about who does what.

When we reported on Anthony Gemma’s suspicious social networking prowess way back in March, we just knew things didn’t seem right. WPRO actually put it to a test and found out as much as 79 percent of his Twitter followers might be fake. While having 80 percent of your followers might seem high, it actually might be low; if WPRO’s analysis is correct, he’d still have almost 200,000 real followers and I doubt he does.

GoLocal accuses Gina Raimondo of helping to funnel state work to a venture capitalist who donated to her campaign and helped launch her career in finance.

The Providence Journal editorial board seems to be the only ones in the nation who doubt Paul Ryan’s conservative credentials. They say not until Obama became president did “the deficit and Big Government suddenly became all-important to Mr. Ryan.”

Here’s more on his Medicare proposal.

And we meant to mention this one the other day … the Rhode Island Center for Freedom for the Prosperous got a half true from Politifact for its assertion that RI has the highest number of health insurance mandates in the country. It’s actually not true, but the Projo gave them half credit because they did read it somewhere.

On this day in history both Elvis Presley and Babe Ruth died. Conversely, Charles Bukowski and Madonna were born. By the way, Babe Ruth died when he was one year younger than Madonna is now. Elvis was only 42 when he left the building once and for all.

 

Progress Report: RI’s Bankruptcy Law Is Anti-Democratic


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Rhode Island’s bankruptcy law for municipalities is fundamentally anti-democratic, argues Carrol Andrew Morse, a conservative and regular Anchor Rising contributor, in an op-ed for WPRI today. “Rhode Island, for centuries a home to a special brand of strong belief in freedom, should be a place that steadfastly refuses to give ideas about undermining democracy any kind of a basic foothold,” he writes. “The governing and governed alike should reject the idea that democratic accountability must be sacrificed to solve problems over money.”

We could not agree more. It’s one of the reasons RI Future was so hard on Bob Flanders, the former Central Falls receiver – he should have been more contrite about the city’s unfortunate position; instead he joked about his power. It’s also why we took Woonsocket Reps. Jon Brien, Lisa Baldelli-Hunt and Bob Phillips to task when they pushed for a receiver – because they moved to strip their residents of their democratic rights to keep their taxes low.

Speaking of municipal bankruptcy, San Bernadino became the third California city in two weeks to seek financial help from the courts.

Rhode Island public sector retirees protested outside a DC fundraiser for Gina Raimondo yesterday … no surprise there. What I’d like to know is who was inside the Washington DC fundraiser for the smallest state’s general treasurer.

Great Mitt Romney jokes by Bob Kerr in today’s Projo: “Which brings us to Mitt Romney, who keeps his money and his sense of humor in places that are hard to find.” And: “To call Romney stiff as a board is an insult to lumber.”

Froma Harrop also pens an interesting piece, calling out conservatives for enjoying big government on vacation but not at the workplace. “Why do conservatives from elsewhere hang out in places that tax and regulate and do all kinds of other mean things to rich people like themselves? The reason is that these are nice places, and they are that way precisely because they tax and regulate. And these guys know it. If cooler summers were all they craved, they’d be partying in Upper Wisconsin.”

The Obama Administration on voter ID laws: “We call this a poll tax,” said Attorney General Eric Holder.

Looking for a fun and socially enlightening summertime activity? The class warfare comedic classic “9 to 5” opens at Theatre-by-the-Sea on July 18. For another all-time classic comedy on class warfare, try Caddyshack.

Progressives Should Care About Pension Security


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Gina Raimondo, Linc Chafee and Allan Fung, at  an event in 2011 to launch the campaign to decrease pension costs. Photo by Bob Plain, courtesy of WPRO.

I suspect if that if named a United States Senator tomorrow (might as well give the right-wing immediate heartburn at that prospect) my committee assignment of choice would be the Senate Committee on Health, Education, Labor and Pensions, the so-called, and when run correctly, aptly named HELP Committee. Putting four important issues so remarkably interlinked together was wise indeed, but those linkages are not always obvious to some who deem themselves progressives.

My progressive friends breathed a sigh of relief last week when the Supreme Court upheld the Affordable Care Act, appreciate the importance of a strong public education system, and usually understand the basics of workers having a voice at the table through collective bargaining rights. But last year, so many progressive legislators, despite making commitments to the contrary, often in writing to the groups that endorsed them, voted to implement some of the most draconian changes in the country to Rhode Island’s state-run public pension plans. And many of their progressive supporters seem to be equally confused by the issue or just wish it would go away. It will not, and should not.

The elected officials who broke their commitments know who they are. While, to the dismay of many, I remain personally fond of Rhode Island General Treasurer Gina Raimondo (who made no commitments on the issue), she essentially told the General Assembly that our unfunded pension liability was a “weapon of mass destruction,” and with remarkable haste in a virtually unprecedented special session, the Rhode Island Retirement Security Act of 2011 was enacted. And it was enacted with a lot of nominally progressive votes. I have more sympathy for elected officials willing to make amends, those who felt caught up in the same type of political tide that led federal elected officials to support the ill-advised war in Iraq (a vote which was at least a contributing factor to Hillary Clinton losing the Democratic Presidential nomination) and now acknowledge their errors in judgment, than for those who are angry they have been asked to account for their votes. I do give kudos to Providence Mayor Angel Taveras for negotiating a solution with active and retired employees as the state should have done and progressive legislators should have insisted they do.

All of that said, this article is not primarily directed at elected officials who need to reconsider their priorities, but at the progressive community in general. It is ironic that many of my more conservative acquaintances, while still maintaining their distaste for both unions and defined benefit pensions, confide in me their belief that the State of Rhode Island acted illegally in breaking the covenant it had with those workers and retirees. It pains me that some of the progressives with whom I have fought side by side in so many battles do not understand either the legal or moral obligation the State has to those workers, or that society should have to provide real retirement security to all workers. Worse are those that buy into, and repeat, the false choices argument – that if the state honors commitments to its public sector workers, it won’t be able to tighten the safety net for those most in need. Have the recent tax cuts for the wealthiest among us have been forgotten so quickly? False choices indeed!

Progressives believe that the entire arc of an individual’s life should be imbued with justice. That includes not only a world free from discrimination, a clean environment, the right to choose, the right to marry the partner of your choice and help for those who need it the most, but access to quality, affordable health care, an excellent public education, a good job with good wages where workers have a voice, and a secure retirement.

Apparently, one can still be a Democrat and ignore some of these issues – but you can’t claim to be a progressive.

Stark Contrast Between City, State Pension Efforts


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Providence Mayor Angel Taveras, right, and Treasurer Gina Raimondo at a recent panel on payday loan reform, an issue they both supported.

It’s striking the difference in how efforts to cut public sector pension benefits are playing out in Providence compared to the state level – as municipal retirees are agreeing to a compromise in the Capital City, state retirees are gearing up for a legal fight in court.

About 80 percent of Providence retirees voted in favor of a pension deal with Mayor Angel Taveras earlier this week. Meanwhile Bob Walsh, head of the NEARI, a local teachers’ union whose members are in the state system, was calling the Rhode Island’s reform efforts “a profoundly poorly-thought out solution,” to WPRI and penning op/eds on RI Future.

In part, it’s a telling testament to the different styles employed by those who led the efforts.

Providence Mayor Angel Taveras was understated yet adamant as he brought his ask to the table. Treasurer Gina Raimondo, on the other hand, went on more of a whistle-stop rally-for-reform tour of the state last year talking about truth in numbers more than compromise.

Of course, it’s also, in part, a telling testament to the need for reform – which explains a lot about the two different tacks too.

In Providence, the city was teetering on the verge of bankruptcy, and had made some pretty exorbitant post-employment promises to city staff over the years. At the state level, the only danger was staving off potentially-dismal future scenarios and the danger of paying for the government we already created.

To that end, it is little surprise that Taveras hasn’t achieved the kind of stardom as did Gina. Taveras merely responded to a crisis; Gina created one and then solved it by saving taxpayers money at the expense of public sector unions – of course such actions would win the praise of the ultra-conservative Manhattan Institute and ALEC, which in a recent report called RI’s pension cutting efforts a model for the rest of the country to follow.

On the other hand, Providence’s pension reform savings are already all-but in the bank. On the state-level, any savings to be had still rest in the hands of a judge.

Either way, expect to see many more comparisons between pension reform efforts between the city and state … in fact, at this early date at least, I’d bet it will be the basis for the 2014 Democratic primary campaign for governor between Gina Raimondo and Angel Taveras.

Progress Report: Local Health Care Reform; Purple Rhode Island; Payday Loans, Mother Jones and Diane Ravitch


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Congratulations to Christine Ferguson, who Gov. Chafee tapped to run the new Health Benefits Exchange. Rhode Island now has one of the sharpest minds in health care running one of the nation’s most innovative state-run systems. This is a phenomenon known as good news, Ocean State. Let’s do more stuff like that.

Some people call Rhode Island the most liberal state, which it isn’t (take it from someone who has lived in Oregon, Hawaii and Vermont). Nate Silver of the New York Times calls it the most elastic, or the state most “relatively sensitive or responsive to changes in political conditions.” Ted Nesi writes, “Silver’s conclusion fits with the long-running debate over whether Rhode Island is truly a blue state.”

Gina Raimondo might not like payday loans … but some of her political associates don’t seem to mind them all that much, reports Ian Donnis.

Mother Jones, the long-running lefty mag out of San Francisco, takes a look at our new Homeless Bill of Rights. It was sloppy and irresponsible of me not to include this on my recent list of progressive victories in this year’s legislative session.

Steve Brown, executive director of the local chapter of the ACLU, pens a blog post about the Pleau case and the feds decision to seek the death penalty for him on the ACLU’s Blog of Rights site. He writes, “We know that the death penalty is not a deterrent, that it is imposed in a discriminatory, arbitrary and irrational manner, and that it remains capable of convicting innocent people. Even more fundamentally, as part of a civilized society, it should be unacceptable for our government to respond to a heinous crime with another act of barbarism and violence.”

“Is Rhode Island the worst state,” asks nationally-renowned education expert Diane Ravitch on her blog. “I personally don’t think Rhode Island is the worst state, as compared to states like Louisiana, Ohio, Michigan, Florida, and Indiana,” she writes. “But it deserves credit for moving in the same direction and seeking to earn its spurs in the competition for worst.”

Progressives, for the record, have nothing against charter schools … it’s when charter schools and their advocates get all anti-union that they run afoul of the left.

Occupy Prov: Bail Out Workers, Not CEOs


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Note: This was written by Paul Hubbard, Chris Murphy and Jared Paul. It reflects  Occupy Providence’s position on the 38 Studios debacle. The die-in represents the destruction of jobs by trickle-down strategies not the workers who lost their jobs.

CHANTING “MONEY for jobs and a decent wage, not for bailouts and 38,” 75 members and supporters of Occupy Providence (OPVD) rallied and marched through the streets of Providence on June 9.

OPVD organized the protest around three demands: No bailout of Wall Street/38 Studios bondholders, tax the rich, and solidarity not austerity, locally, nationally and internationally.

Assembling outside the Rhode Island Convention Center where the liberal blogger conference Netroots was in progress, the crowd heard personal testimony from working people who described how the economic crises and austerity agenda of the 1 percent have impacted their lives.

OPVD then marched several blocks to the former headquarters of 38 Studios, which spoken-word artist Jared Paul, an organizer with OPVD, described as a “crime scene.” Dozens of marchers then laid on the ground and were outlined in chalk as they participated in the great RI Jobs Dead On Arrival “die-in.” The action was designed to dramatize the destruction of good jobs caused by the “trickle-down” policies of the 1 percent and evidenced by the 38 Studios debacle.

38 Studios, a video game company owned by former Red Sox baseball star Curt Schilling, was financed in 2010 with a $75 million loan from the RI Economic Development Corporation (EDC). Gambling on Schilling’s risky start-up with taxpayer funds, the quasi-public agency floated up to $125 million in “moral obligation” bonds on Wall Street to guarantee the deal.

Chris Mastrangelo, an organizer with OPVD, made the analogy of a gambler who goes “on the street” to a loan shark for money to bet on a horse. Schilling, for many years a right-wing proponent of “small government,” was only too happy to accept the EDC loan.

– – – – – – – – – – – – – – – –

NOW THAT 38 Studios has collapsed, laid off its entire workforce in three states (700 people) and filed for bankruptcy, the bondholders (sharks) on Wall Street still expect to be paid. Gov. Lincoln Chafee and the Rhode Island Legislature have promised full payment. This will cost Rhode Island’s taxpayers $112 million over the next 10 to 20 years.

Speaking at the die-in, Paul Hubbard of the International Socialist Organization said:

The austerity agenda of Rhode Island’s 1 percent, recently imposed by the governor and the Rhode Island legislature, means massive cuts to education, the developmentally disabled, state worker pensions, public transportation and Rhode Island’s poor. These are the real crimes, crimes perpetrated against Rhode Island’s working families, against the 99 percent, against humanity…Our sisters and brothers in Greece, Egypt, Spain and Quebec have risen up against the austerity agenda of the global 1 percent. Occupy Providence is proud to stand in solidarity with the global 99 percent.

OPVD then marched through the city of Providence to the State House, where dozens of protesters assembled in front of the building’s main entrance. Chalk outlines of dead bodies, representing another crime scene, were drawn on the plaza outside.

Marching back to the convention center, the site of OPVD’s four-day “sidewalk occupation,” dozens of protesters stopped by another crime scene–the tax-exempt Providence Place Mall. Sixty protesters marched through the first floor, chanting, “Tax the rich! Solidarity not austerity!”

Security guards appeared and began assaulting peaceful protesters at the front of the march, physically pushing them toward the middle exit. A large group of protesters easily avoided the guards and continued to the exit at the far end of the mall as planned. There, a “mic check” ensued as OPVD again started chanting.

Security guards called in the Providence police, who detained and handcuffed about a dozen protesters as they attempted to leave. An hour later, all were released after signing agreements to stay off the mall premises for one year.

OPVD then re-assembled and finished the march, returning to cheers from those at the sidewalk occupation as well as bystanders outside the convention center. Speaking to the media, organizer Mariah Burns said, “The police used handcuffs on peaceful protesters simply exercising their rights to assembly and free speech. These tactics were clearly designed to intimidate and were completely unnecessary.”

As the scandal surrounding 38 Studios continues to unfold, OPVD has pledged to continue its struggle for justice and against Wall Street bailouts.

RI Progress Report: Legislative Leadership and 38 Studios


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With regard to 38 Studios, the media has pointed its finger at Curt schilling, Keith Stokes, (Thanks) Don Carcieri, Linc Chafee and Gina Raimondo … but Dan McGowan is the first reporter to point towards legislative leadership. I asked Chafee about this yesterday: if the he wants all the EDC board members who supported the 38 Studios deal to step down, what have his conversations been like with House Speaker Gordon Fox, who also supported it. Being budget season, Chafee said, they haven’t had that discussion yet.

Just in case you thought the real estate crash was behind us, Ted Nesi reminds us that a third of homeowners in Providence and Kent County are still underwater on their mortgages.

Most obvious headline of the day: “R.I. seen trailing national recovery”

Scott MacKay pens a piece about the Projo’s love affair with Gina Raimondo … her office has often accused me of giving the treasurer bad press, and I’ve always countered that so glowing has most of the media coverage been about Raimondo that they may have lost touch with the difference between fair press and bad press.

Here’s the NY Times’ coverage of the “tentative” deal between Providence and its labor unions … By the way, a Times columnist is tentatively working on a piece about Woonsocket. Stay tuned…

If you look at what the Projo has been reporting the past few days and what we have been, at least we are both hearing the same stuff … whether any of it is true or not, remains to be seen.

Gina, Chafee Also at Odds on Muni Pension Bills


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38 Studios isn’t the only matter of public policy that Gov. Chafee and Treasurer Gina Raimondo disagree about. There’s also the governor’s hotly-debated municipal pension reform proposal that Raimondo has given the cold shoulder to publicly.

While she said much of her work has been behind the scenes, and with municipal finance directors rather than mayors, twice Raimondo dodged the question when I asked her on Friday if she endorsed the governor’s pension proposal. On my third try, she said:

“Here’s what I would say: I certainly endorse the concept of giving municipalities more tools to help them do their work. This particular legislation is making its way through the legislative process, and this is like a legal hornets’ nest. The General Assembly, they are going to have to figure out the legal issues and the language to try and do that.”

Chafee, for his part, wishes Raimondo would have use her pension cred to help his municipal reform efforts this session. In fact, he told me he wanted her to fight harder for them during last year’s special session devoted to pension reform.

“We had a special session, with total focus on pension reform,” he said. “What are we waiting for? It’s time we get some energy behind this important area moving the state forward.”

Legislative leadership didn’t want the municipal reforms in the landmark reform bill last year. Chafee fought for it to be included and Raimondo not so much.

When pressed, she said the it won’t withstand a court challenge.

“Listen, if we could have figured out a constitutional, financially sound way to pass a statute that reformed these independent pension plans last year we would have done it. I wish we could have, I really do but there is no solution like that.”

She added, “We have to respect collective bargaining.”

It’s a fair point, and one that organized labor certainly agrees with. Pat Crowley of the NEA-RI has described the governor’s municipal package as, “Wisconsin heavy, not even Wisconsin light.” The bill would freeze annual raises for communities with underfunded pension plans, lower disability pensions and prevent cities and towns from offering more generous benefits than the state plan.

But details aside, with both municipal and statewide pension reform efforts, inevitable lawsuits will hinge on whether or not a contract has been broken, and if so if a financial catastrophe can be averted by doing so. A ruling last fall said that state workers have an implied contract with the state.

“That was a summary judgment so it remains to be seen,” said Raimondo. “We’ll see where it goes.”

Another theory is that Raimondo doesn’t want to anger municipal unions, which could prove critical if she runs for governor in 2014.

She vehemently ruled out politics playing into her decision not to endorse the governor’s municipal package, saying, “No, of course not. That’s not how I think about it.”

But she wasn’t so adamant when I asked her if she was, in fact, thinking of running for governor.

“Never rule anything out,” she said, “but I’m not thinking about it.”

Meanwhile, the next governor won’t be chosen for another two years and the first lawsuits over pension reform won’t be filed until the July or perhaps January, depending on when the reforms first affect workers and retirees.

But it’s the final few days of the legislative session and Chafee’s municipal aid package, including the municipal pension reform proposal, rests in the hands of the House Finance Committee. The Committee heard the bills earlier in the session and held them for further study. It would need to vote them out in the coming days in order for them to take effect this year.

RI Progress Report: Schilling Speaks, Woonsocket Asks for State Help, Senator Kerry’s Yacht Back in Newport


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The Providence Journal wins the exclusive first interview with Curt Schilling … and guess what: 38 Studios’ collapse wasn’t his fault, it was Chafee’s fault for scaring away investors by telling the public that the company didn’t have any money. If only Chafee could have scared away the state from investing way back when….

And, finally, an editorial on 38 Studios from the ProJo.

It seems as if smaller companies that received small loan guarantees from the state are faring much better than did 38 Studios and its huge $75 million loan guarantee, reports PBN.

Meanwhile, the spat between Gov. Chafee and Gina Raimondo continued on Friday with Chafee telling me Raimondo was the only general officer not to make it to a briefing on 38 Studios. Joy Fox, a spokesperson for Raimondo, told Ted Nesi that the treasurer didn’t know about the meeting but a spokesperson for the governor said she worked with Raimondo’s office on scheduling the meeting.

Not confident the General Assembly will approve a supplemental tax increase, the Woonsocket City Council asked the state to appoint a budget commission on Sunday night … something tells us this story is about to make much bigger headlines. Stay tuned.

John Kerry’s controversial yacht was back in Newport recently, according to the Boston Herald … but no word on whether Rhode Island gave the Massachusetts senator a loan guarantee to dock it here.

Picking up on Tom Sgouros’ theme from last week that conservatives aren’t necessarily fiscally responsible, Paul Krugman calls Mitt Romney, Paul Ryan and Chris Christie “fake deficit hawks.”

 

Raimondo Advocates Against Tax Equity


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If you’re still looking for the evidence that likely 2014 gubernatorial candidate Gina Raimondo is a progressive Democrat, as she told many a union member during her push for pension reform last year, you won’t find it in local tax policy. Instead of advocating for more revenue, Treasurer Raimondo decided to again side with business interests and the right in calling tax equity measures the enemy of economic growth.

“Given Rhode Island’s current economic condition – with high unemployment and stagnant population growth – I have reservations about adopting policies that could put us at a competitive disadvantage when compared to other states,” she said in a prepared statement. “The best way to increase tax revenue is to grow our state’s overall economy so every Rhode Islander benefits from our success.”

Earlier this month, when I first asked Raimondo about the Miller-Cimini income tax bills, that would repeal the flat income tax and raise back the rates on Rhode Island’s richest residents to the where they were lowered from starting in 2007, she said she hadn’t heard of the effort – even though it had been covered by this news outlet, as well as the Providence Journal, WPRI and RI Public Radio, among others.

In her statement that her deputy chief of staff Joy Fox gave me more recently, Raimondo said: “Representative Cimini and Senator Miller should be commended for reminding all Rhode Islanders about the increasing levels of income inequality across our state, and by extension our country. I look forward to working with Representative Cimini and Senator Miller to actively pursue economic development policies and opportunities that improve our state for everyone.”

When asked about Raimondo’s position on the tax equity bills, George Nee, president of the local AFL-CIO, who has been helping to lead the charge for the bills passage, said, “I don’t know if I’m surprised but I’m certainly disappointed. I still don’t see the connection between jobs and taxes.”

Nee, and other supporters of the tax equity bills, have pointed to the fact that unemployment in Rhode Island has gone up as income tax rates for the affluent have gone down. The AFL-CIO also released poll results last week done by Flemming and Associates that indicates 68 percent of Rhode Islanders support the bills, which would raise the income tax rate on those who make more than $250,000 but subsequently lower it when the unemployment rate drops.

“We will continue to provide her with information to try to change her mind,” Nee said. “I was hoping she would see this as a necessary change in policy on both a state and federal level.”

RI Progress Report: ALEC, Kellogg, Zurier, Raimondo


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“Should Rhode Island taxpayers be footing the bill for lawmakers’ membership dues to the American Legislative Exchange Council, or ALEC, a national, business-backed conservative group that has come under fire this month?” asks the Providence Journal in its first print article on ALEC. On Friday, they reported on the web that Sen. Walter Felag, a Warren Democrat, wants out of ALEC.

A Portsmouth grocer has started a national movement against Kellogg and Kashi cereal, calling attention to the fact that the supposedly “all natural” cereal uses Round-Up ready soy, a Monsanto Frankestein-esque strain of soybean that, through genetic engineering, protects them from chemical weed killers.

How Providence City Councilor Sam Zurier netted an extra $6 million for the Capital City by taxing the rich.

Speaking of taxes, Treasurer Gina Raimondo paid a 24.5 percent tax rate on her and her husband’s $440,722 of income in 2011. But what if the Buffett Rule had passed? Would she be paying more if capital gains were taxed?

This page may be updated throughout the day. Click HERE for an archive of the RI Progress Report.

RI Progress Report: ALEC, Knuckleheads, ‘Legislation Last’


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The Projo editorial board weighs in on the ALEC controversy. Though they say nothing about the issue on a local level, they write: “The American Legislative Exchange Council (ALEC) offers a case study in how corporate money can be used to distort democracy.

Ted Nesi also chimes in saying that, despite his claims to the contrary, Rep. Jon Brien has in fact put forward ALEC model legislation.

And Ian Donnis writes that it’s one more piece of evidence that Rhode Island Democrats aren’t as liberal as some would claim.

WPRO has taken to defending a cross on a war memorial in Woonsocket and Mayor Leo Fontaine called the group leading the fight against the religious symbol on public property “knuckleheads.” There are sure to be no shortage of knuckleheads in this controversy as John DePetro has “volunteered to emcee” an upcoming rally and it’s hard to argue that those who don’t want a religious symbol on public property are more knuckle-headed than a mayor who insults people based on their beliefs.

I’ve never seen the State House as jam-packed as it was yesterday for a rally to restore cuts made to services for those with developmental disabilities.

There’s a great feud going on between Gina Raimondo and Gov. Linc Chafee over municipal pension fixes and Ed Fitzpatrick quotes the treasurer as passive aggressively saying, “It’s great the governor is continuing the work I started a year ago around pensions, and we absolutely can’t wait. That is why I’m spending time working hand-in-hand with municipal leaders with pension problems.” Okay, Gina … why don’t you try working with the governor, like he did with you? And keep in mind, for as much credit as you’ve received for your work on pension reform, having the weight of the governor’s office behind you was no small thing, as it’s a much bigger deal than the treasurer’s office. But she knows that…

Most Rhode Islanders Want Payday Loans Reformed


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More than 3/4 of Rhode Island wants the General Assembly to reform payday lending, according to a Public Policy Polling survey. And, according to Rep. Frank Ferri, sponsor of a bill that would reign in interest rates on such loans from 260 percent down to 36, so does a vast majority of the legislators.

“Now we just have to convince leadership that it is the right thing to do,” Ferri said at a roundtable discussion on the matter Tuesday.

He was joined by Sen Juan Pichardo, the sponsor of the similar bill in the Senate, Providence Mayor Angel Taveras and Treasurer Gina Raimondo, all of whom are adamant that payday lending be stopped.

“It’s a predatory product,” Raimondo said. “People need to know about the dangers of payday lending so they can take care of themselves. Everyone needs a loan once in a while and you ought to be able to do it in a way that is safe and reliable and doesn’t trap you.”

Raimondo said she plans to announce soon that she will be reaching out to banks and trying to incentive them to offer an alternative to payday loan shops.

“Soon we will be launching a press for information to all the banks that the state does business with and asking them to tell us about what products like this they do provide,” she said, referring to alternative loans to the predatory variety offered at payday loan shops. Once that is completed, she said, “I think you might see us giving a preference to banks that provide those kinds of services for Rhode Islanders.”

Payday loans are short-term loans secured by a post-dated check that can carry huge interest rates. Rhode Island is the only state in New England to allow the practice.

The reform proposal, which is opposed by former House Speaker Bill Murphy, has already been heard by both House and Senate committees. Here’s a video from the House hearing:

Promise Breakers: Taveras, Raimondo and Flanders


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Providence Mayor Angel Taveras from the State of the City speech.

Providence Mayor Angel Taveras now joins General Treasurer Gina Raimondo and Central Falls receiver Bob Flanders in a very exclusive group of Rhode Islanders. You’ve heard of the Promise Keepers, right? Well, these three are the promise breakers.

All three have asked retirees, in no uncertain terms, to give up a portion of the post-employment benefits that they previously negotiated for and agreed upon. They asked for a contractual mulligan, if you will.

Not that Taveras, Raimondo and Flanders don’t each have difficult situations to deal with – they do. But while fiscal health is important, so is being known as a community that keeps its word. And at this rate, Rhode Island is in grave danger of being known as the state where contracts are made to be broken.

This won’t serve the state well in any future negotiation, even if it’s with a big company looking for a tax incentive to relocate here. If we did it to the people who served and protected us, they might reason, why would they not also do it to us?

But on a more elemental level, faith in government is really all that holds us together as a civic community. Once we can’t trust our government to keep its word, all bets (and social contracts) are off. I’m not saying we’re there, or even close, but we should certainly do whatever we can do to avoid that path altogether.

Give Taveras credit here. Of the three promise breakers, he has leaned the least on the contractual mulligan strategy. Before going to the retirees, he raised taxes significantly and fought hard to raise revenue through other means, most notably by begging the colleges and hospitals to ante up as well.

And he has been pretty honest about his ask. When I asked him prior to Saturday how he felt about asking for such concessions, he was pretty blunt about it: “A lot of people have gone forward based on promises that have been made and most of them have kept their side of the bargain. Obviously the city is at this point saying we need to change our side of the bargain and that is always a difficult thing.”

At his plea to retirees on Saturday, he repeated several times, I’m told, that his ask was by no means fair. He repeated it to Ted Nesi later in the day.

Raimondo, on the other hand, sold her pension-cutting plan under the banner of being fair, that is when she wasn’t fist-pumping to the pro-business crowd. And Flanders … well, I’d be surprised if the concept of fair ever even occurred to him. He simply threatened to behead retirees if they didn’t agree to his pension-slashing terms. Seriously, he told them “a hair cut is better than a beheading.”

In the short term, Taveras’ more humanistic approach may save fewer dollars. But it’s little wonder he’s the most popular pol in the state. And in the long run, that kind of political capital can get you a lot more concessions than deception or decapitation.

Principles are Worth More than Political Awards


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You may have heard about our recent letter to General Treasurer Gina Raimondo requesting that she return an award from The Manhattan Institute, an extremist right wing group that promotes offensive, ignorant and hurtful positions towards the LGBTQI community, women, minorities, and our environment.

Marriage Equality Rhode Island was among a group of organizations that respectfully asked Treasurer Raimondo to return the award and condemn the hateful positions promoted by the Manhattan Institute. Instead of returning the award, she defended her association with the New York think tank by saying: “Accepting an award from any organization is never an across-the-board endorsement of its leanings.”  But that just misses our point.

Organizations like the Manhattan Institute use awards programs for many purposes, including raising money and validating their positions on a range issues to a broader, mainstream audience.  A cursory review of the Manhattan Institute’s website will, in fact, lead one to a number of articles and position papers that advance an anti-gay agenda and misogynistic agenda.

As LGBTQ people we know the power in who you will or won’t stand next to you. We know that standing for equality and fairness means refusing to stand next to ignorance and hatred. Raimondo’s close association with this organization could be interpreted by many as implicit acceptance of all their positions, not just those related to public pensions. We have advised the treasurer that those who aspire to political leadership are judged by the company they keep. Principles are worth far more than political accolades.

Former Employer of Treasurer’s Chief of Staff Wins


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This will probably get lost since it was passed the day before Thanksgiving.  But it does not look right when Fidelity Investments who  used to employ Joseph Pratt, Treasurer Raimondo’s Chief of Staff, is selected as the vendor for the Ocean State Investment Pool.  The State Investment Commission, chaired by Treasurer Raimondo, named Fidelity the vendor today.  Here is the PBN coverage:

PROVIDENCE – Fidelity Investments was selected Wednesday as the vendor of the Ocean State Investment Pool, an initiative passed in the General Assembly in June to help state and municipalities improve their liquid asset investments…

“In these challenging times, the Ocean State Investment Pool will help local government leaders across the state invest their cash and other liquid assets,” said General Treasurer Gina M. Raimondo, who chairs the State Investment Commission.

“This program will allow Treasury to extend its expertise to municipalities and improve investment returns by creating economies of scale,” she said.

The OSIP is slated to launch in the first quarter of 2012…

Conflict of Interest?  Maybe, Maybe not…  Let’s hope the awarding of the 401K vendor contracts under the new pension reform law remain conflict of interest free.


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