Judge to Gina: Negotiate Pension Reform Law


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Gina Raimondo didn’t want to come to the negotiating table voluntarily, but now thanks to a court order she will have to sit down with organized labor and Gov. Linc Chafee to try to hammer out a compromise on Rhode Island’s landmark pension reform law, according to a story first reported by WPRI.

Chafee has already been meeting with union leaders and Raimondo said she didn’t want to join those talks. Judge Sarah Taft-Carter’s ruling today means she has to. Raimondo has said if a court ordered her to negotiate that she would do so in good faith.

NEA-RI Executive Director Bob Walsh, who has been involved in the talks with Chafee, said he thinks a compromise can be worked out by February.

“I expect we will have a busy month of January,” said a very pleased Bob Walsh today. “We’ll have a big group, as we should, because everybody has different issues to bring forward.”

Here’s what I expect labor to be asking the state to budge on behind closed doors this January:

  • Set a less stringent retirement age, which was unilaterally raised in the reform legislation
  • Reduce the amount of time the annual cost of living increase to pensions will be suspended
  • Make the new system less reliant on a 401k-style, or defined contribution, plan

If the parties aren’t able to reach an agreement, a trial could still start as soon as early May.

ProJo Stories Show Where Gina Values Transparency


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There was an interesting juxtaposition of articles relating to pension politics and Raimondomania stripped across the top of A1 of the Providence Journal this morning; one was about the outside money coming into the Ocean State, and the other was about local money leaving.

In the first article, about pension reform politics being funded in no small part by a Texas hedge fund billionaire who used to trade for Enron, Mike Stanton writes, “Raimondo has said she sees no problem with the law that EngageRI doesn’t have to reveal its donors.” (Read our post on this from yesterday)

In the second article, about all the time and money Raimondo has spent outside of Rhode Island, Kathy Gregg reports that Raimondo tells her, “…it is more important than ever that [a] treasurer bend over backwards to be transparent and open with our investors…”

This, in a nutshell, is what most frightens progressives about Gina Raimondo: she so often seems more aligned with the interests of Wall Street than Main Street.

“Raimondo talks about ‘truth in numbers’ — she should tell the truth about who her financial backers are,” said Mike Downey, president of Rhode Island’s largest public sector union, to the Providence Journal.

We ought to be as open with our citizens as we are with our investors. In fact, we ought to be even more open with our citizens than we are with our investors! Any politician would certainly agree with this premise, if asked the question outright. But actions always speak louder than words, and thanks to some good reporting by the ProJo, we now see that Gina doesn’t seem to place the same kind of value on political transparency as she does financial transparency.

The EngageRI, Pension Reform, Enron Connection


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Rhode Island has long worried that its oft-lauded efforts to reduce public sector pensions was being secretly funded by Wall Street fat cats. Well, it turns out that one of the biggest financial supporters of pension reform is a former Enron energy trader who went on to make billions as a hedge fund manager.

John Arnold, a 38-year-old Houston man worth more than $3 billion, donated something less than a half million dollars to EngageRI, the shadowy non-profit that paid for much of the advertising pushing for pension cuts, the Wall Street Journal reported yesterday.

“…a key player in the campaign to curtail pension costs in Rhode Island was financed, in large part, by a Houston billionaire who sees the state as an opening salvo in a quest to transform retirement systems nationwide,” according to the WSJ.

In 2009, Fortune Magazine called him “the second-youngest self-made multibillionaire in the U.S. — behind Facebook’s Mark Zuckerberg.”

Arnold, through the non-profit he started to affect pension politics across the country, has given more than $7 million to various efforts nationally, according to the WSJ. He may have funded well more than half of the anti-public sector pension ad campaign in Rhode Island all by himself, according to WPRI’s Ted Nesi, who pick up on the story last night.

According to Fortune article, Arnold and his wife have also “donated $700 million to a family foundation that gives money to charter schools run by an organization called the Kipp Academy, on whose board Arnold serves.”

A spokesman described he and his wife to the WSJ as being an “independent-minded Democrats” and said he has no financial interest in pension reform efforts. But it certainly wouldn’t be the first time he made money on the misfortune of others. Here’s how the Fortune article described him:

Arnold has the brain of an economist, the experience of a veteran gas man, and the iron stomach of a riverboat gambler. Perhaps most notable, though, is his uncanny ability to extract colossal profits from catastrophic circumstances.

He began his career as a wunderkind twentysomething trader at Enron — and escaped that disaster not only with his reputation intact but also with the biggest bonus given to any employee, which he used to seed a new fund.

A few years later he earned $1 billion betting that natural-gas prices would go down just as a reputedly brilliant gas trader at Amaranth made a spectacularly disastrous bet in the opposite direction. More recently, as the commodities bubble burst in 2008, taking even more fund managers with it, Arnold foresaw the looming collapse and once again nearly doubled his money.

 

Reuters Blog Blasts Raimondo’s Actuarial Acumen


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(Editor’s note: when I originally posted this item, I mistakenly thought the Muniland post was from this week. It’s actually a year old! But since we posted a similar piece earlier today that spoke to the same issue, I amended it and left it posted. Sorry for any confusion.)

The squeaky clean shine seems to be fading on Raimondomania, in some circles.

The rock star treasurer, hailed for pairing down the retirement benefits of public employees, took a few bruises locally this week for declining to sit down with labor leaders who suing the state over her pension reform efforts. And she’ll take a few more if and when Judge Sarah Taft-Carter asks the two parties to try to work it out among themselves.

She’s taken some in the national media too.

Cate Long, who covers public sector finance for Reuters, wrote on her Muniland blog, “It’s getting a little tiresome to hear all the adulation that’s being heaped on Gina Raimondo…”

Long writes in a post from last December (not this week, as I initially reported):

…the problems Raimondo addressed were not the biggest that the state faced. The main problem with Rhode Island’s pension system is that it has very poor investment returns on its $6.5 billion portfolio of assets. Over the past ten years the state’s  compared with the national median of 3.4 percent (page 6). These returns are in the lowest tier of state pension plans, and this chronic underperformance is causing a substantial shortage of assets to pay retirees.

I’m withholding my praise for Gina Raimondo until the investment returns of the Rhode Island pension plan move closer to the national median. Then state workers won’t have to bear the entire burden.

Here’s what Ted Nesi wrote about it in January.

Greg Gerritt of the Green Party makes a similar point in a post published today on RI Future. Raimondo led efforts in 2011 to lower the expected rate of return from around 8 percent annually to 7.5 percent. In the last fiscal year, Gerritt reports, the return was 1.5 percent.

So maybe I spoke too soon when I said I trusted Gina Raimondo’s actuarial acumen earlier this week. But, way more importantly, shouldn’t this be what the former venture capital millionaire is good at – investing the state’s money?

Long, who focuses on the last ten years of data to make her point, reports that the “major source of pension plan funding, investment returns on plan assets, has been terrible in Rhode Island. I’m not aware of any discussion or changes in the law to address this issue.”

Perhaps pension reform efforts focused too much on contract rights, and not enough on money management. After all, you don’t get taken to court for simply making smart investments.

Pension Reform Goes to Court


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Much will be said, written, ranted, argued, distorted and down-right lied about as Rhode Island’s landmark pension reform law heads to court today. But if there is one thing that everyone from David Boies to Bob Walsh can agree on it’s that the case hinges on whether or not the courts think public employees have a right to the retirement plan that was offered to them.

Here’s how Mike Stanton said it in today’s ProJo: “The pension suits boil down to two critical issues –– do the unions and retirees have an implied contract right, and if so, are the benefits cuts a permissible impairment to achieve a compelling public purpose?”

And for those of you handicapping at home, keep in mind Judge Sarah Taft-Carter has already ruled in a real similar case that they do. Here’s an excerpt from Ted Nesi’s conversation with Boies about just that:

Nesi: Judge Taft-Carter says employees and retirees have an implied contract right to their promised pension benefits. You think she’s wrong.

Boies: Yes. I think there’s a difference between a statute and a contract. But obviously my view doesn’t control; I’m just an advocate for one particular party. What matters is what the courts ultimately decide.

All of a sudden Rhode Island’s landmark pension reform law doesn’t seem like the same slam dunk it did when Raimondomania was bragging about it to the likes of the Manhattan Institute and others.

This is precisely why sitting down and talking it out makes sense. In fact, Dan McGowan calls out the governor not for coming to the table, but for not doing so sooner! McGowan wrote a great overview of the ongoing pension drama under the headline: “Does Rhode Island’s Pension Reform Law Have Any Chance of Survival?”

While the headline may say more about GoLocal than it does pension reform, all the players knew labor leaders thought the bill as written was unconstitutional, and that they could and would put together a couple bucks to fight it in court. Indeed, several of them testified to as much during legislative hearings at the State House.

And now here we are. It may seem like a pivotal day in the process of pension reform but this one – just like the many others that have come before it – is really just another baby step in determining if the government has the legal right to break a promise because it didn’t take the steps necessary to keep it.

Is Ted Nesi Biased on Pension Reform?


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Ted Nesi is easily the most knowledgeable and well-respected local reporter on the pension beat. As such, it’s not easy to call him out for what I think is some bias in his pension reporting as of late.

Today on Twitter I asked him why he didn’t include either Angel Taveras or Ernie Almonte’s perspective when he reported that Gina Raimondo, Gordon Fox and EngageRI all disagree with the governor’s tack.

Yes, Raimondo, Fox and EngageRI are important players in this debate. But so are Almonte and Taveras, both of who had publicly weighed in defending Chafee by the time Nesi posted on the issue. WPRO had Almonte on Wednesday morning and RI Public Radio had a post on Monday saying Taveras thought, “the state should seek a settlement to a challenge by a series of unions to last year’s pension overhaul,” wrote Ian Donnis for RIPR.

Here’s the exchange we had on Twitter:

Story Isn’t Whether to Sit Down, But Who’s At Table


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Sorry, Providence Journal, much as you might not like it, we are no longer debating whether or not the state should be negotiating pension reform with organized labor as your over-hyped headline and otherwise great long-form story on the drama this morning suggests.

Remember, after all, on Tuesday when you broke the news that the governor is, in fact, talking with union leaders about this very topic?

As a point of fact, the executive branch is already at the table. The question at this point is whether or not treasury wants a seat there too.

My guess is Raimondo will eventually join the talks. In fact, Chafee ought to request her presence at the next meeting between he, and labor leaders Bob Walsh and George Nee.

I’m sure all three of these players believe she’d be a valuable voice in those discussions. And, more importantly, our elected leaders shouldn’t shy away from engaging with their adversaries. Remember, talking doesn’t equal acquiescing. Or, sitting down and holding your ground are not mutually exclusive.

As much as EngageRI might not want her to give labor any credence, she ought to listen to the more politically viable advice coming from the likes of Mayors Angel Taveras and Allen Fung, who both told WPRO this morning they would sit down too.

In the meantime,the one thing you can take to the bank is that the local mainstream media will tie itself in knots trying to defend Gina and disparage Linc.

Chafee on Pension Talks: Keep Options Open


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After a day of various politicians and special interests volleying back and forth about whether or not the state should negotiate with organized labor while its appeal of the pension reform law is making its way through the courts, Gov. Linc Chafee released this statement on why he thinks it’s smart to keep talks open:

I have confidence in the state’s legal case. But a strong case does not guarantee a win. I am therefore reluctant to rely exclusively on the uncertain outcomes of litigation. The most prudent approach is to continue to aggressively press the state’s case in court while, at the same time, exploring reasonable settlement options that could yield favorable alternatives in the best interest of the taxpayers. Engaging in settlement discussions is a near-universal practice during high-stakes litigation.

Some have said that now is not the time for negotiation. I disagree. The state has leverage only so long as there is still uncertainty as to the outcome of this case – a time period that grows shorter with each passing day.

I have great respect for the judicial system. Indeed, thoughtful discussions and settlement negotiations are an integral part of that system. All or nothing is not the only course, as any judge will tell you.

I have been disappointed that state leaders in a position to engage in reasonable discussions have chosen not to do so. There is no harm in talking, but the consequences of failing to talk could be tremendous, in a case where a loss – in the Treasurer’s own words – would be a “fiscal calamity.” It is my continued hope that other state leaders will join me in working to find common ground to protect the interests of Rhode Island taxpayers and the retirement security of all public employees.

And read our full coverage of this issue here.

Dueling Letters: Chafee to Raimondo and Her Reply


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Gov. Linc Chafee first floated to Treasurer Gina Raimondo the idea of negotiating with labor on pension reform just three days after the November election, over a pastrami sandwich, during a working lunch between the two political leaders.

A letter from the governor to Raimondo dated November 13 thanks her for joining him for lunch on Friday and asked her to discuss with him further the idea of negotiating a settlement with the unions whose current and past members were hurt by cuts to their retirement plans.

Here is Linc’s letter to Gina:

Dear Treasurer Raimondo (Chafee crossed this out and wrote in “Gina”)

Thank you for lunch Friday. My pastramì hit the spot. And our conversation on current events was lively.  One issue l would like to explore further than our brief discussion at lunch is pursuing the possibility of a  negotiated settlement to the Rhode Island Retirement Security Act litigation pending before the Rhode island Superior Court.

It is common practice for settlement discussions to be held while litigation is proceeding. l would not make this suggestion if I did not believe the result could be favorable to the Rhode isiand taxpayers. And l also  believe I can answer in greater detail some of the concerns you raised on Friday. All litigation has chances of  success and failure and it would be beneficial to our economic standing to have the major court cases associated with pension reform resolved amicably.

I look forward to exploring this further with you and labor leaders when appropriate.

Best Wishes,

Lincoln D. Chafee

Raimondo replied 15 days later. Here is her response:

Dear Governor Chafee,

Thank you for your letter of November l3, 2012. On advice from our counsel, it is not  appropriate to pursue the matters you raised. The legislation passed by the General Assembly represented the culmination of ll months of thoughtful, fact-based analysis and input input  retirees, employees and taxpayers.

As we agree, it would be devastating to the state and the fiscal health of mnany municipalities if  the Rhode îsland Retirement Security Act of 2011 was overturned. And perhaps most importantly, the retirement security of our public employees would again be in jeopardy.

I look forward to conitinuing to work diligently together to defend this important piece of legislation to protect Rhode IslaI1d’s future.

Best Wishes for a happy holiday season.

Sincerely,

Gina M. Raimondo
General Treasurer

Providence Journal reporter Mike Stanton referenced the letters in his piece on Chafee and Raimondo’s disagreement in today’s paper. You can read both letters here.

And here’s the rest of our coverage on this:

Gina Raimondo Should Be at Pension Talk Table


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I don’t doubt Gina Raimondo’s actuarial acumen. But oftentimes I think her political instincts leave much to be desired. The general treasurer/gubernatorial candidate-in-waiting might be the Democratic darling to the budget-cutting crowd for shepherding pension cuts through the legislature, but there’s a political side to the court challenge too and she has chosen not to participate.

And so as Act 2 of the pension reform drama heats up, Raimondo finds herself on the wrong side of cooperation – as well as political and legal logic – as she effectively argues against keeping open lines of communication with organized labor over the pension war she stoked with its members. That’s not only a bad tack to winning over hearts and minds, it’s at best a counter-intuitive way to kick of a campaign for governor in Rhode Island.

(Read our post from Tuesday about the brewing disagreement over pension reform talks between Chafee and Raimondo)

According to an informative Mike Stanton piece in today’s Providence Journal, Chafee suggested to Raimondo on November 13 that the state try to negotiate a settlement with labor. According to Stanton, Raimondo replied, more than two weeks later, ““On advice from our counsel, it is not appropriate to pursue the matters you raised.”

Chafee, and many others, disagree.

The governor told Stanton, “I don’t see any downside to talking.”

Here’s a potential downside for Raimondo: the folks over at EngageRI wouldn’t like it very much, and it is these upper income corporate sympathizers who can help a rookie general treasurer amass over a $1 million in her campaign coffers two years prior to the election.

Still, it seems most of the other 2014 gubernatorial candidates agree with Chafee. Ernie Almonte told WPRO this morning he thought the state should be talking to labor and Angel Taveras had similar words for RIPR yesterday.  Anyone want to see what Mayor Allen Fung thinks? Oh yeah, that’s right, he’s busy … negotiating pension reforms with organized labor.

Raimondomania, as the adoring media has dubbed Gina’s phenomenal rise, certainly started off with a giant political victory by many accounts. But the legislative process was only the opening act in the effort to reform public sector pension benefits in Rhode Island. The legal obstacles continue to come into sharper focus on Friday. And, evidently, negotiations continued between the executive branch and the pensioners.

Raimondo has chosen not to come to the table.

Almonte: State Should Negotiate With Labor


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Ernie Almonte – former auditor general, a candidate for governor and a member of the 2011 pension reform panel – told WPRO this morning that the state should be negotiating a settlement to the landmark pension law and subsequent lawsuit with leaders of organized labor.

He said the specifics of the legislation were never debated by the pension panel assembled by Gov. Chafee and General Treasurer Gina Raimondo to spearhead the issue.

“I actually think it’s imprudent not to do that,” he told Tara Granahan and Andrew Gobeil on the WPRO Morning News Show. “The law wasn’t perfect … maybe a negotiation could come up with a better plan.”

Almonte said it’s unwise to put all the state’s chips, if you will, in the hands of the legal system. “It’s so complex and such a big pubic policy issue it’s not a slam dunk. Its probably the equivalent of betting it all on red or black.”

Listen to the full interview on WPRO here.

Almonte said the pension reform panel that he and other stake holders, including four union leaders, participated in did not have a say in the pension reform legislation that was passed in late 2011 and goes to court on Friday.

“I don’t believe there was ever negotiations going on prior to the bill being passes,” Almonte told WPRO this morning. “We were making recommendations, those were not negotiations. They were just talking about suggestion. In the end when the bill that was passed, most of the people on the committee were not involved with that.”

Chafee has opened talks with labor leaders on the landmark pension reform bill, stoking another feud between he and Raimondo. He told WPRI negotiations were a good idea earlier this week and labor leaders Bob Walsh, of the NEA-RI and George Nee, of the AFL_CIO, were seen leaving his office last night.

Meanwhile, the New York Times runs a piece today on the potential conflicts of interest for Judge Sarah Taft Carter, who has family members who get public pensions.

Linc, Gina At Odds Again


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Gina Raimondo, Linc Chafee and Allan Fung, at an event to launch the campaign to cut pensions in 2011. (Photo by Bob Plain, courtesy of WPRO.)

It’s interesting that both Gov. Linc Chafee and General Treasurer Gina Raimondo will be far flung tomorrow, talking about Rhode Island’s success in slashing public sector pensions.

For one thing, the issue is far from resolved. In fact, the courts only begin to consider the matter this Friday. And if precedent from other states is any indication, the matter of pension reform is still far from resolved.

And for another, Chafee and Raimondo are far from being on the same page on the matter. Shocker, I know.

I got an email from Gina the other day saying the public sector pension system had been “fixed … once and for all.”

Then Tim White reported last night that Chafee wants to work on a compromise with labor as the issue winds its way through the court system.

“In any litigation it’s common practice to have negotiations,” Chafee told WPRI. “I’m in favor of that: of having negotiation as litigation goes forward.”

To recap: as far as Gina is concerned, the issue has been put to bed. Linc, on the other hand, prefers the more proactive approach. And, just in case you were wondering, these two oft-adversaries probably aren’t playing good cop/bad cop with the unions.

Speaker of the House Gordon Fox is so far siding with Raimondo. His spokesperson Larry Berman sent me the same exact statement he gave to WPRI a day earlier.

“I am extremely proud of the process which led to the historic enactment of comprehensive pension reform that I sponsored in the House of Representatives.  After months of review, which included 30 hours of open public testimony, we enacted a bill that we believe will withstand the challenge currently pending in our courts.”

Which was one better than what I got from Senate President Teresa Paiva Weed’s spokesperson, who didn’t get back to me.

Providence Mayor Angel Taveras weighed in on the issue, seeming to suggest the state should negotiate while it’s still in the driver’s seat.

“A loss in the litigation will eliminate any leverage that the state has to negotiate,” Taveras told Ian Donnis of RIPR. “And it’s going to require negotiation if you lose, but you’re going to be negotiating without leverage so I think it’s important to be doing it from a position of strength.”

As far as organized labor is concerned, they are pleased Chafee hasn’t closed the door on their interests.

“If the treasurer doesn’t want to talk and the governor does, we’ll sit down with anyone in the executive branch who is willing to sit down,” said Bob Walsh, the executive director of NEA-RI, the state’s largest teachers’ union. “The governor has the right to lead those talks.”

Progress Report: Homeless Families ‘Flood’ RI; Israel v. Palestinians; Caramadre as Robin Hood; Driver’s Licenses


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Ft. Wetherill in Jamestown at dawn last week. (Photo by Bob Plain)

The number of Rhode Island families that have stayed in homeless shelters so far this year has increased by more than 30 percent, reports the Providence Journal this morning. If that isn’t startling enough, some 60 percent of the families staying in shelters aren’t even unemployed. That’s right, they have jobs but still can’t afford or can’t find housing.

As Crossroads President Anne Nolan told the ProJo, “It’s trickle-down economics. The people at the bottom have been pushed out and are continuing to be pushed out.” And Nolan is  not to be confused with a strict Keynesian.

Meanwhile, the AP reports this sad news: “Police believe a Warwick man barricaded himself in his home and then killed himself after being served with foreclosure papers.”

And as Rhode Island continues to crumble from the bottom up, the Middle East continues to tear itself apart. Let’s hope lame duck Secretary of State Hillary Clinton can inject some peace into the escalating crisis between Israel and the Palestinians.

I really don’t have a good sense of what Rhode Island, or the local progressive community, thinks of this situation. Is Hamas engaging in terrorism, or is Israel engaging in apartheid? Of course, these two loaded terms are in no way mutually exclusive of each other and we like our geopolitical strife to be much more black and white than this conflict is. Unfortunately, it seems it’s not something we debate on the local level. To that end, I’d like to invite a wide variety of voices to share their thoughts on the Israeli-Palestinian conflict.

Joe Caramadre may have pleaded guilty to fraud, but I’m not convinced it’s entirely accurate to say he “preyed on terminally ill people.” ProPublica wrote in August that it can be argued he was a Robin Hood-like character, who stole from insurance companies and split the ill-gotten gains with those on or near their deathbeds. I certainly can’t fault him for taking a bigger slice of the take, as he bore a lot more of the risk than did his elderly clients, but they bore some and there’s no evidence he apprised anyone that what he was doing could be construed to be illegal. and given how clever Caramadre seems to be, I’m guessing that at least occurred to him…

I think it’s ridiculous to think that a judge can’t be impartial because a couple of her family members have financial stakes in the case. Though I should add I don’t think it’s unreasonable that the case be delayed until that question is reasonably flushed out. I should also add that it’s very reasonable for the state to delay the cuts until their legality is reasonably flushed out. Besides, won’t all judges have a direct financial stake in the case?

Gov. Chafee met yesterday with activists who say driver’s licenses should be given based on the ability to drive, not where one was born.

The Hollywood Reporter addresses its dark past in blacklisting communist sympathizers.

I second Ian Donnis’ call for more tweeting by elected officials … politicians, I promise your constituents will think better of you for doing this, whether they tweet themselves or not.

I also second Dan Lawlor’s call for mandatory press conferences by legislative leaders. Seriously, it’s comical what reporters sometimes have to do to get a quick quote from either the Senate President of Speaker of the House after the session. In fact, in addition to cars, they also each have security guards whose sole job sometimes is making sure I can’t ask them a question or two.

On this day in 1962, President Kennedy banned discrimination in federal housing programs … 50 years later we’re still trying to implement the spirit of this executive order

Progress Report: RI Tops Region in Food Insecurity; Pension Compromise Talk; Roger Williams and Thanksgiving


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URI gave a great effort against Ohio St. on Saturday before falling to the 4th-ranked team in the country. (Photo by Bob Plain)

We’re now the number one state in New England for food insecurity, reports the ProJo this morning. 15 percent of households in the state can’t afford the food it needs. This is a crisis of epic proportions that goes largely unaddressed because the influential class doesn’t tend to know many people that are affected by it.

To that end, kudos to these Providence College students who helped deliver leftover cafeteria food to some of the most needy people in our community.

Scott MacKay, who knows how local politics works as well as any Rhode Islander, suggests its time for the state and labor unions to strike a deal on pension reform … letting the legal system work it out, he argues is potentially very expensive and at the least very risky for taxpayers. Plus, Providence and Mayor Taveras has shown that this is a far better option politically, as well.

Speaking of pension reform, not one of the 17 state legislators who voted against it lost in the election for doing so, reports GoLocal.

And back to RIPR for a moment … Ian Donnis seems irked that I’m still irked that WPRI kept Abel Collins out of a televised debate! Interestingly, I actually think WPRI did Collins an electoral favor by snubbing him – he got more earned media by not being included than he would have had he debated, which wasn’t his strong suit as a candidate in the first place. That said, I don’t think affect on outcome is the standard by which media organizations should determine who should and should not be included in debates. I think it should be based on what potential voters should know about their options … news coverage doesn’t exist for candidates to benefit from, it exists for consumers to learn from.

The Boston Globe reports America owes Thanksgiving to Rhode Island’s own Roger Williams, not the Puritans who are often giving the credit.

Whose at fault for Hostess filing for bankruptcy? Labor, which didn’t agree to an 8 percent pay cut, or the CEO who took a 80 percent pay increase before asking employees to make a sacrifice? Either way, that’s no way to come to the negotiating table.

Progress Report: Tax Capacity and Our Failing Cities; Chafee Speculation; Ucci and Blazejewski; Stripped Bass; Burnside


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Ambrose Burnside

Regardless of where you sit on the political spectrum, most agree that Rhode Island’s biggest concern should be the failing finances of our urban communities. GoLocal reports this morning in a piece on which local communities have the highest tax rates: “Some of the most dramatic increases are in urban communities facing financial distress. They also happen to be the places where taxpayers can at least afford the hikes.” This point, as well as those making it in the GoLocal piece, should be very familiar to our readers.

When Don Carcieri and the General Assembly cut income taxes for the affluent and state aid to cities and towns, it was like pouring gasoline on the smoldering fire that is Rhode Island’s regressive reliance on property taxes to fund public services. Gov Chafee and the 2013 legislature would do very well to address this.

That is, if Chafee doesn’t take a job in the Obama administration, as I’m hoping happens. Chafee would be a great Obama appointment and it would give him a classy exit from his unpopular reign as governor … it would also give Rhode Island a progressive governor in Lt. Gov. Elizabeth Roberts. This good idea came courtesy of Dee DeQuattro’s blog, which always has interesting stuff like this in it.

Much has been made about the legislature’s shift to the left, but one way the House will move right is with the promotion of Rep. Stephen Ucci, who is expected to replace Rep. Paddy O’Neil on Gordon Fox’s leadership team. Ucci is a nice enough guy, but he’s an anti-choice Democrat. This effect will hopefully be mitigated if Rep. Christopher Blazejewski moves up to be Deputy Majority Whip.

Is Gina Raimondo less confident in pension cuts prevailing in court than she once was? Seems like it…

Today’s hero: Nick Gibbs catches a 58-pound stripped bass from a Narragansett Bay beach and donates the giant catch to the Amos House in Providence “where it was made into fish chowder to feed hundreds of people in need.” I’m sure we’d all love to know where he caught it but the article doesn’t say…

Former PC hoops star God Shammgod deserves the award too!

Wow … what a great passage in this ProJo editorial about the insurance lobby, climate change and how hurricanes affect the affluent coastal land owners the most: “Contrary to the clichés about ‘welfare queens’ and so on, federal programs skew heavily in favor of middle- and upper-income people.”

So long Tea Party, don’t let the door hit you on your way out!!

Thanks to Dan McGowan for recognizing the RI future crystal ball … but we supported plenty of people who didn’t win, most notably Abel Collins.

On this day in 1862, General Ambrose Burnside, a Rhode Islander for whom the downtown Providence park is named, took command of the Union Army.

Thank the Working Class for Storm Safety, Cleanup


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Remember that fire fighter who climbed up a telephone pole to work on a damaged transformer at the height of Hurricane Sandy’s winds on Monday afternoon? Or what about the local public works employee who spent more than 14 hours laying sandbags, digging trenches and helping out residents? Or the cop who risked his life to save someone else?

Those are the people who Rhode Islanders think enjoy too much retirement security. In other words, many of the people who will be most hurt by pension reform and the same exact people who save our asses when natural disasters strike.

One public works employee I saw during the storm did dangerous labor all Monday and well into Tuesday morning for the town he serves; he lives in a neighboring town because, despite growing up there, he could never afford real estate there on a public sector salary. Years ago, he left a better paying job at Electric Boat for the pension benefits he was promised by the town. We’ll see how that goes.

I didn’t get any footage of that guy (mostly because he literally may have crushed my iPhone in his bare hand had I tried!!) but I did get some video of the tree crew I worked with yesterday clearing this pretty big snagged limb that was still hanging in the tree when we got there Tuesday afternoon:

Progress Report: Pension Politics; Transparency’s Liberal Bias; ProJo for Sheldon; Meatloaf for Mitt; Microwaves


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Autumn foliage is reflected in the waters of Greenwich Cove. (Photo by Bob Plain)

The Atlantic may think Gina Raimondo is a brave thinker for slashing the retirement security of state workers, but it seems to me the political popularity of pension reform is waning  … consider this page A1 quote  in today’s Projo on Cranston Mayor Allan Fung’s attempts to cut local pension benefits: “This problem was created by the city, not by the retirees.”

And consider also that both David Cicilline AND Brendan Doherty both said the state would have done well to negotiate pension reform rather than act unilaterally … but then again Doherty is a pension recipient, reports RIPR. The state pays him $97,859.44 annually to be a retired cop.

On Smith Hill, it turns out, transparency and open government tend to have a liberal bias. I’m not surprised.

Speaking of government secrecy, Bob Kerr offers some sage words for any public official who wants to keep something on the quiet: “…as long as the details are kept under wraps, questions will remain. And those questions will be answered at the bar and on the radio and in all kinds of places where people have nothing to go on but their belief of how things work in Rhode Island.”

Again, the typically conservative ProJo editorial board endorses a progressive for U.S. Senate; today it’s Rhode Island’s own Sheldon Whitehouse.

FYI: the bear seen in Cranston probably wasn’t the same one that was seen in the EG/NK area. For one thing, there is virtually no way for wildlife to commute between the two areas in question. For another, it’s not like we are talking about a singular Sasquatch here folks. It’s a bear, they live here and look for food this time of year. Secure your garbage cans, be prepared to take their picture from a safe distance and get on with life…

Things are looking pretty good for Democrats’ chances of taking control of the Senate, says the NYTimes … but native Rhode Islander Jennifer Duffy is quoted as saying not to count out the GOP yet…

I have to disagree with the Romney logic that microwave ownership is a sign of wealth … to the contrary, I’d argue that microwave ownership is a sign of poverty.

And here’s an indicator in the presidential campaign: Bruce Springsteen endorsed Obama in Ohio this week while Mitt Romney won the coveted endorsement of Meatloaf. In case you’re keeping score at home, Springsteen is famous for singing about the plight of the working class … Meatloaf, on the other hand, is best remembered for signing about indiscretion and regret.

Today in 2001, George W. Bush signs the Patriot Act into law.

Taubman Center Picks Biased Pension Panel


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First Brown University’s Taubman Center put out this push poll on pensions, then it stacked its panel discussion on the subject with some of the most conservative voices on pension politics available.

On Thursday afternoon the Center will host a discussion called Pensions in Peril: How Municipalities Are Defusing This Fiscal Time Bomb. Slated to speak are Eileen Norcross, Joshua Rauh and Robert Clark; all are very well-known for taking a very hard line on the dangers posed by public sector pension plans.

One local pension expert said the Center could have fostered a more balanced conversation had it invited the likes of Dean Baker, of the Center for Economic and Policy Research, or Diane Oakley, of the National Institute on Retirement Security, instead of just the three pension skeptics.

Norcross works for the Mercatus Center, a right-wing think tank at George Mason University financed by the Koch Brothers and big oil, among others.

Here’s what she had to say to Fox News about Central Falls’ pension problems:

The second panel discussion has a more balanced panel, including mayors Scott Avedesian of Warwick and Don Grebien of Pawtucket. Other panelists are: Gayle Corrigan, Chief of Staff, City of Central Falls; Dennis Hoyle, Auditor General of Rhode Island; and Susanne Greschner, Chief, Municipal Finance Department, State of Rhode Island.

Progress Report: More Mike Riley Lies; Flu Shots and Libertarians, 10 States with Fierce Pension Politics


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If campaigns were all about which candidate could create the most intellectually dishonest advertisements, Mike Riley would be leading in a landslide. His latest ad blames Jim Langevin for high gas prices. I wouldn’t be surprised if the next one tries to link him to the 38 Studios debacle – or worse, Bobby Valentine!

On a serious note – not that anything about Mike Riley’s campaign should be taken serious – his ads should disturb all Rhode Islanders regardless of where one falls on the political spectrum. They are blatantly either untrue or misleading and often both. One admonished Langevin for accepting a salary. Forget about how politically out-of-touch this ultra-conservative Wall Street apologist is with regular Rhode Islanders, he seems like an all-round bad person too.

Rhode Island is the first and only state in the nation to require health care workers to get flu shots. Can we hear from the local libertarians on this one, or are Rhode Island libertarians only libertarians when it comes to tax policy??

Smithfield might change the name of a local road named after a former KKK leader. Might? If they don’t change the name, it would be interesting to know why…

Progressives could lose a couple General Assembly seats this November, according to a list compiled by Dan McGowan.

LaSalle Bakery is doing a presidential poll … based on whether customers buy a Obama or Romney cookie. We’ve all got our systems.

The AP lists the states with the fiercest pension politics … remember way back when the ProJo did sky-is-falling front page story comparing our pension system to New York state’s? The Associated Press says New York boasts “has one of the healthier state pension systems in the country.”

A great Political Scene column in the ProJo this morning … many interesting tidbits. Same holds true for Ian Donnis’ new Friday feature.

I don’t often have opportunity to write this, but I find myself in agreement with the Journal’s editorial this morning … they are calling for hearings on the 38 Studios debacle.

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.


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