“Good afternoon,” said a male voice on his voicemail. “I’m a representative of Senator Walaska. We’re looking for some support this election if you go out and vote in the primary we would greatly appreciate it. Thank you.”
After hearing the call, and believing the use of state phones for partisan campaign calls to be against the law, the Warwick resident, who asked not to be identified, contacted the Attorney General‘s office. They told him that the AG’s office is only interested in issues of campaign fraud. He was referred to the Secretary of State‘s office. The Secretary of State’s office was similarly disinterested, and referred him to the Board of Elections. According to the resident who sent me the call, the person from the Board of Elections searched through the relevant statutes in vain before giving up and telling the resident that he should call back when he learned exactly what law is being broken.
For future reference, that law seems to be:
§ 36-4-52. Restrictions on political activities of classified employees
No classified employee shall during working hours engage to any extent in any form of partisan politics except that he or she may attend and vote at any party caucus, primary, or election held during working hours. Outside of working hours a classified employee may attend any partisan political rally, club, or gathering and privately express his or her partisan political views but any further partisan political activity on his or her part shall be engaged in only in accordance with the personnel rules. A classified employee violating the provisions of § § 36-4-50–36-4-54, or of the personnel rules shall for a first offense be either demoted or dismissed and for a second offense dismissed. All charges of these violations shall be publicly heard by the personnel appeal board.
Robert Kando executive director of the Board of Elections could not be reached for comment.
John Marion of Common Cause said that the issue appears reminiscent of an ethics complaint against Susan Cicilline Buonanno when she ran for the House District 33 seat that Narragansett Democrat Donald Lally resigned. Buonanno, principal of Gladstone Elementary School in Cranston was accused of using school email and phones to advance her political campaign.
This case is different because it’s not the candidate, but someone claiming to represent the candidate who appears to be using state resources for partisan political purposes.
“As you might expect, using state work telephones for campaigning is forbidden, and so we would want to know if this sort of thing was taking place so that the charges could be investigated and suitable disciplinary action taken if warranted,” said Fred Sneesby, an administrator at Children’s & Family Services. The Warwick resident who sent me the call has been put in contact with Sneesby.
Contacted by phone, Senator Walaska, after I identified myself but before I could fully explain what I was calling about, said, “I know you don’t support me. I have no idea. I don’t know what you’re talking about.”
Jeanine Calkin, a progressive Democrat who is running against the 22-year incumbent, said that her husband, Daniel Calkin, received a similar call. A photo of her husband’s phone is on the left. Daniel Calkin, listening to the audio above, said he was “pretty sure it’s the same guy.”
“This looks like a very clear-cut violation,” said Sam Bell, executive director of the RI Progressive Democrats.”Campaign calls should not be made from state numbers. Being able to direct state workers to campaign for a candidate gives an enormously unfair advantage to powerful incumbents.”
Requests for comment from Representative Joseph McNamara and Brandon Bell, respective chairs for the Democratic and Republican parties in Rhode Island have gone unanswered.
As for the Warwick resident and doctor who sent me the call, he says that he is “disinclined to vote for Walaska.”
The RI State Investment Commission voted to invest $20 million with GEM Realty Capital, despite the company’s claim that the health and safety of employees at the Sofitel Los Angeles Hotel in Los Angeles, one of the many properties owned by the company, is not something they can have any affect on.
GEM Realty describes itself as a real estate investment company that invests in “private-market real estate assets and publicly traded real estate securities”. At the meeting on Wednesday morning, two GEM Realty representatives admitted that there were problems at the Sofitel Los Angeles Hotel, but said that as they are not the majority investor in the enterprise or involved in the day-to-day management of the business, there is little they can do to effect positive change in the way workers are being treated at the properties they invest in.
Treasurer Seth Magaziner lead the questioning of the company reps about the allegations of unsafe and un-sanitary labor conditions at the hotel and Commission member Marcia Reback asked about the use of a firm known for union busting to prevent workers from unionizing. The GEM Realty reps assured the Commission that the union-busting firm was no longer employed by the hotel and that the health and safety issues were in the process of being resolved via the National Labor Relations Board (NLRB).
On April 25 employees filed a complaint with the CA Division of Occupational Safety and Health complaining about the hotel’s failure to provide safety equipment to employees charged with cleaning medical waste from Sofitel Los Angeles Hotel rooms. Many guests receive treatment at a nearby hospital and leave medical waste behind. Though management shows an instructional video every year about the proper disposal of needles and bloodied linens, employees say “the hotel does not provide the safety equipment shown in the video”.
The Sofitel LA Hotel has also drawn “multiple Unfair Labor Practice charges that are currently being investigated by the regional office of the NLRB alleging that since employees raised the health and safety issues, hotel management has responded by threatening and surveilling employees and in one case illegally firing one of the employee leaders,” says Jim Baker coordinator for Unite Here. These case can be accessed here.
Then there’s the class action lawsuit seven employees have brought against the hotel alleging wage theft. Business Wire reports, “Six of the plaintiffs allege being paid less than the minimum wage while working at the Sofitel Los Angeles at Beverly Hills. A former barback, as well as three housekeeping workers, a banquet worker, and a restaurant server, allege that management underpaid or have been underpaying them by up to $5.37 per hour.”
Aside from the allegations of deplorable labor practices, there may be sound financial reasons to avoid investing in GEM Realty, says Sam Bell, executive director of the Rhode Island Progressive Democrats of America, has concerns about the very idea of private equity investments for our pension funds.
“With their high fees, private equity investments are a bad deal for our pension fund,” says Bell, “As Treasurer, Gina Raimondo, who made her fortune in this controversial industry, made a big move into high-fee funds, and that decision continues to drive our pension fund’s poor performance. Seth Magaziner campaigned on a new kind of politics. Expanding private equity investments, while other funds are pulling out of high fee options, would represent a move back to the aggressively pro-Wall St. policies of the previous Treasurer.
“Real estate private equity funds are especially poor choices, given their distinctive record of pushing policies that hurt American families,” says Bell, ” In the case of GEM Realty Capital, it is aggressive violations of workers’ rights that stand out, but across the real estate investment industry in general there is a serious and pervasive culture of immorality.”
Though the GEM Realty reps were asking for a $30 million investment from the state, the board seemed to feel that a $20 million investment was more in line with their investment strategy.
Despite the NRA paying a record fine for making illegal campaign donations to Rhode Island politicians, to date, not one current office holder in the state has seen fit to return the money.
The National Rifle Association (NRA) was fined by the RI Board of Elections for funneling illegal donations to RI politicians, including House Speaker Nicholas Mattiello and Senate President M Teresa Paiva-Weed. One estimate puts the total amount of contributions at over $160,000, over a 10 year period from 2004 to 2014. Due to the detective work of Sam Bell, executive director of the Rhode Island Progressive Democrats of America, the NRA was fined $63,000 and the NRA’s Rhode Island PAC was formally dissolved.
Technically, any money received by any candidate in Rhode Island that comes from the NRA Political Victory Fund PAC before January 2014 was illegal. That doesn’t mean that it’s a crime to keep the money after the fact, and it’s likely that the politicians did not know that the campaign donations were illegal before Bell made his case.
That said, the bottom line is that the money these politicians accepted from the NRA is tainted, and the influence this money has on our General Assembly can be felt acutely when observing the legislature in action.
Are you still wondering why our General Assembly can’t seem to pass common sense gun control legislation?
Between 2004 and 2014, House Speaker Nick Mattiello received $2,975 from the NRA. All these donations appear to be illegal, tainted contributions. The Speaker has kept every penny. Seventeen other representatives have also taken thousands of dollars.
Joseph McNamara is the head of the RI Democratic Party, the same party whose national platform calls for banning assault weapons and strengthening gun laws to prevent violence. McNamara accepted $700 in illegal NRA contributions over the years.
During the same 10 year period, Senate President M Teresa Paiva-Weed has accepted, and kept, what appears to be $6,075 in illegal contributions from the NRA. Seventeen other senators took illegal NRA cash, including Senate Majority Leader Domenic Ruggerio, who raked in $3350 and Senate Judiciary Chair Michael McCaffrey, whose committee handles every bill about guns that comes to the Senate, to the tune of$3500.
Rep Jan Malik, who was recently challenged by his primary opponent Jason Knight to return his illegal donations, took $1075. On the last day of the most recent legislative session, Rep Malik voted for a House bill that would have made it easier to get concealed carry permits in RI before changing his vote after the fact.
I went through the campaign finance reports available here, and carefully made a list of all incumbents who have accepted NRA money between 2004 and 2014.
Here’s the list:
In addition to Representatives and Senators, Attorney General Peter Kilmartin has accepted $1150 in illegal donations.
Attorney General KILMARTIN, PETER F 03/30/2004 $200.00
Attorney General KILMARTIN, PETER F 03/07/2006 $250.00
Attorney General KILMARTIN, PETER F 04/27/2007 $200.00
Attorney General KILMARTIN, PETER F 12/31/2009 $200.00
Attorney General KILMARTIN, PETER F 03/04/2009 $300.00
Former Speaker of the House, William Murphy, now a lobbyist, raked in a series of illegal NRA contributions. He now rakes in even more as a lobbyist for gun interests.
Lobbyist MURPHY, WILLIAM J 02/05/2004 $500.00
Lobbyist MURPHY, WILLIAM J 02/05/2004 $500.00
Lobbyist MURPHY, WILLIAM J 04/14/2006 $350.00
Lobbyist MURPHY, WILLIAM J 04/27/2007 $1,000.00
Lobbyist MURPHY, WILLIAM J 03/31/2005 $875.00
Lobbyist MURPHY, WILLIAM J 02/22/2009 $1,000.00
Lobbyist MURPHY, WILLIAM J 01/31/2008 $1,000.00
Representative MATTIELLO, NICHOLAS 11/05/2006 $250.00
Representative MATTIELLO, NICHOLAS 04/27/2007 $150.00
Representative MATTIELLO, NICHOLAS 04/01/2008 $150.00
Representative MATTIELLO, NICHOLAS 07/06/2010 $450.00
Representative MATTIELLO, NICHOLAS 04/04/2011 $450.00
Representative MATTIELLO, NICHOLAS 06/06/2012 $450.00
Representative MATTIELLO, NICHOLAS 02/13/2013 $800.00
Representative MATTIELLO, NICHOLAS 05/28/2009 $225.00
Representative CARNEVALE, JOHN M 06/05/2010 $200.00
Representative CARNEVALE, JOHN M 04/12/2011 $200.00
Representative CHIPPENDALE, MICHAEL W 10/15/2012 $500.00
Representative CORVESE, ARTHUR J 05/08/2004 $300.00
Representative CORVESE, ARTHUR J 05/16/2005 $300.00
Representative CORVESE, ARTHUR J 07/11/2006 $300.00
Representative COSTA, DOREEN MARIE 10/15/2012 $500.00
Representative DESIMONE, JOHN J 07/08/2004 $150.00
Representative FELLELA, DEBORAH A 08/20/2006 $250.00
Representative FELLELA, DEBORAH A 04/27/2007 $100.00
Representative FELLELA, DEBORAH A 01/12/2010 $150.00
Representative FELLELA, DEBORAH A 04/12/2011 $200.00
Representative JACQUARD, ROBERT B 07/19/2004 $300.00
Representative JACQUARD, ROBERT B 10/20/2004 $500.00
Representative JACQUARD, ROBERT B 10/12/2006 $350.00
Representative JACQUARD, ROBERT B 04/12/2011 $200.00
Representative KENNEDY, BRIAN PATRICK 07/19/2004 $400.00
Representative KENNEDY, BRIAN PATRICK 08/02/2006 $400.00
Representative KENNEDY, BRIAN PATRICK 06/11/2009 $400.00
Representative KENNEDY, BRIAN PATRICK 06/05/2010 $375.00
Representative KENNEDY, BRIAN PATRICK 04/12/2011 $375.00
Representative LIMA, CHARLENE 04/06/2004 $300.00
Representative MACBETH, KAREN 11/01/2009 $100.00
Representative MACBETH, KAREN 05/27/2010 $200.00
Representative MACBETH, KAREN 12/08/2011 $200.00
Representative MALIK, JAN 08/18/2004 $200.00
Representative MALIK, JAN 11/19/2004 $250.00
Representative MALIK, JAN 06/29/2005 $225.00
Representative MALIK, JAN 09/06/2006 $300.00
Representative MALIK, JAN 06/05/2010 $300.00
Representative MCNAMARA, JOSEPH 05/26/2004 $200.00
Representative MCNAMARA, JOSEPH 05/25/2005 $300.00
Representative MCNAMARA, JOSEPH 06/16/2011 $200.00
Representative MELO, HELIO 03/10/2010 $225.00
Representative MELO, HELIO 04/12/2011 $200.00
Representative NEWBERRY, BRIAN C 11/03/2006 $300.00
Representative NEWBERRY, BRIAN C 05/29/2009 $150.00
Representative NEWBERRY, BRIAN C 02/24/2010 $150.00
Representative NEWBERRY, BRIAN C 06/29/2011 $200.00
Representative NEWBERRY, BRIAN C 04/15/2013 $250.00
Representative TRILLO, JOSEPH A 04/02/2004 $100.00
Representative TRILLO, JOSEPH A 04/05/2004 $500.00
Representative TRILLO, JOSEPH A 04/06/2004 $200.00
Representative TRILLO, JOSEPH A 04/07/2004 $100.00
Representative TRILLO, JOSEPH A 04/22/2004 $150.00
Representative TRILLO, JOSEPH A 06/29/2005 $200.00
Representative TRILLO, JOSEPH A 06/15/2006 $300.00
Representative TRILLO, JOSEPH A 07/24/2007 $300.00
Representative TRILLO, JOSEPH A 05/17/2008 $300.00
Representative TRILLO, JOSEPH A 05/29/2009 $300.00
Representative TRILLO, JOSEPH A 06/05/2010 $300.00
Representative TRILLO, JOSEPH A 04/12/2011 $200.00
Representative UCCI, STEPHEN R 11/19/2004 $500.00
Representative UCCI, STEPHEN R 08/21/2006 $250.00
Representative UCCI, STEPHEN R 11/02/2006 $200.00
Representative UCCI, STEPHEN R 07/27/2007 $300.00
Representative UCCI, STEPHEN R 06/29/2009 $200.00
Representative UCCI, STEPHEN R 06/29/2009 $200.00
Representative UCCI, STEPHEN R 06/25/2011 $200.00
Representative UCCI, STEPHEN R 06/15/2010 $200.00
Representative WINFIELD, THOMAS J 08/22/2004 $200.00
Representative WINFIELD, THOMAS J 06/15/2006 $200.00
Representative WINFIELD, THOMAS J 11/06/2006 $90.00
Representative WINFIELD, THOMAS J 08/10/2007 $225.00
Senator PAIVA WEED, M TERESA 02/24/2011 $1,000.00
Senator PAIVA WEED, M TERESA 02/02/2012 $1,000.00
Senator PAIVA WEED, M TERESA 08/12/2013 $800.00
Senator PAIVA WEED, M TERESA 04/22/2004 $375.00
Senator PAIVA WEED, M TERESA 05/14/2007 $500.00
Senator PAIVA WEED, M TERESA 05/17/2008 $400.00
Senator PAIVA WEED, M TERESA 02/11/2009 $1,000.00
Senator PAIVA WEED, M TERESA 02/24/2010 $1,000.00
Senator CICCONE III, FRANK A 07/10/2004 $150.00
Senator CICCONE III, FRANK A 05/25/2005 $225.00
Senator CICCONE III, FRANK A 06/21/2006 $300.00
Senator CICCONE III, FRANK A 11/03/2006 $300.00
Senator CICCONE III, FRANK A 05/07/2007 $300.00
Senator CICCONE III, FRANK A 04/15/2008 $300.00
Senator CICCONE III, FRANK A 06/03/2009 $300.00
Senator CICCONE III, FRANK A 06/12/2010 $300.00
Senator CICCONE III, FRANK A 06/21/2013 $400.00
Senator COTE, MARC A 03/23/2004 $200.00
Senator COTE, MARC A 05/16/2005 $200.00
Senator COTE, MARC A 06/15/2006 $200.00
Senator COTE, MARC A 04/16/2008 $200.00
Senator COTE, MARC A 04/06/2010 $200.00
Senator DAPONTE, DANIEL 02/24/2010 $200.00
Senator DAPONTE, DANIEL 04/12/2011 $200.00
Senator DOYLE II, JAMES E 06/17/2006 $150.00
Senator DOYLE II, JAMES E 03/31/2008 $300.00
Senator FELAG JR, WALTER S 07/04/2004 $200.00
Senator FELAG JR, WALTER S 09/01/2006 $300.00
Senator FELAG JR, WALTER S 06/15/2008 $300.00
Senator FELAG JR, WALTER S 03/03/2010 $300.00
Senator FELAG JR, WALTER S 04/12/2011 $300.00
Senator FOGARTY, PAUL W 05/13/2004 $100.00
Senator FOGARTY, PAUL W 07/01/2005 $150.00
Senator FOGARTY, PAUL W 09/21/2007 $150.00
Senator FOGARTY, PAUL W 01/10/2008 $150.00
Senator FOGARTY, PAUL W 06/11/2009 $200.00
Senator GALLO, HANNA M 06/01/2004 $150.00
Senator GALLO, HANNA M 05/24/2005 $150.00
Senator GALLO, HANNA M 05/17/2008 $150.00
Senator GALLO, HANNA M 08/05/2009 $200.00
Senator GALLO, HANNA M 04/28/2011 $200.00
Senator GALLO, HANNA M 04/12/2011 $200.00
Senator GOODWIN, MARYELLEN 08/16/2004 $150.00
Senator GOODWIN, MARYELLEN 07/09/2010 $200.00
Senator GOODWIN, MARYELLEN 05/13/2011 $200.00
Senator LYNCH PRATA, ERIN P 06/08/2009 $200.00
Senator LYNCH PRATA, ERIN P 06/10/2010 $200.00
Senator LYNCH PRATA, ERIN P 04/12/2011 $200.00
Senator MCCAFFREY, MICHAEL J 07/21/2004 $500.00
Senator MCCAFFREY, MICHAEL J 07/21/2005 $750.00
Senator MCCAFFREY, MICHAEL J 08/06/2006 $750.00
Senator MCCAFFREY, MICHAEL J 08/07/2007 $750.00
Senator MCCAFFREY, MICHAEL J 06/24/2008 $750.00
Senator MCCAFFREY, MICHAEL J 06/05/2009 $750.00
Senator MCCAFFREY, MICHAEL J 06/15/2010 $750.00
Senator MCCAFFREY, MICHAEL J 05/20/2011 $750.00
Senator MCCAFFREY, MICHAEL J 06/28/2013 $400.00
Senator PICARD, ROGER A 07/19/2004 $200.00
Senator PICARD, ROGER A 08/03/2005 $200.00
Senator PICARD, ROGER A 05/15/2006 $250.00
Senator PICARD, ROGER A 06/20/2009 $300.00
Senator PICARD, ROGER A 06/12/2010 $150.00
Senator RAPTAKIS, LEONIDAS P 05/10/2006 $300.00
Senator RAPTAKIS, LEONIDAS P 07/24/2007 $300.00
Senator RAPTAKIS, LEONIDAS P 06/30/2008 $300.00
Senator RAPTAKIS, LEONIDAS P 02/26/2013 $250.00
Senator RAPTAKIS, LEONIDAS P 07/19/2004 $300.00
Senator RUGGERIO, DOMINICK J 05/19/2004 $300.00
Senator RUGGERIO, DOMINICK J 05/25/2005 $300.00
Senator RUGGERIO, DOMINICK J 05/10/2006 $300.00
Senator RUGGERIO, DOMINICK J 04/27/2007 $300.00
Senator RUGGERIO, DOMINICK J 05/17/2008 $300.00
Senator RUGGERIO, DOMINICK J 02/21/2013 $500.00
Senator RUGGERIO, DOMINICK J 05/29/2009 $300.00
Senator RUGGERIO, DOMINICK J 02/24/2011 $450.00
Senator RUGGERIO, DOMINICK J 02/08/2012 $500.00
Senator SERPA, PATRICIA A 07/01/2009 $150.00
Senator SERPA, PATRICIA A 06/05/2010 $150.00
Senator SERPA, PATRICIA A 07/18/2011 $200.00
Senator SERPA, PATRICIA A 03/30/2013 $250.00
Senator SHEEHAN, JAMES C 05/04/2004 $150.00
Senator SHEEHAN, JAMES C 07/08/2005 $150.00
Senator SHEEHAN, JAMES C 07/24/2007 $100.00
Senator SOSNOWSKI, V SUSAN 07/28/2004 $200.00
Senator SOSNOWSKI, V SUSAN 10/18/2004 $100.00
Senator SOSNOWSKI, V SUSAN 04/08/2008 $200.00
Senator SOSNOWSKI, V SUSAN 03/02/2010 $200.00
Senator SOSNOWSKI, V SUSAN 06/16/2011 $200.00
Senator WALASKA, WILLIAM A 04/26/2004 $300.00
Senator WALASKA, WILLIAM A 04/05/2005 $300.00
Senator WALASKA, WILLIAM A 09/01/2006 $300.00
Senator WALASKA, WILLIAM A 05/02/2007 $300.00
Senator WALASKA, WILLIAM A 05/17/2008 $300.00
Senator WALASKA, WILLIAM A 06/07/2009 $300.00
Senator WALASKA, WILLIAM A 06/05/2010 $300.00
Senator WALASKA, WILLIAM A 04/12/2011 $300.00
RI HOUSE DEMOCRATIC LEADERSHIP COMMITTEE 04/29/2004 $300.00
RI HOUSE DEMOCRATIC LEADERSHIP COMMITTEE 09/15/2005 $300.00
RI HOUSE DEMOCRATIC LEADERSHIP COMMITTEE 04/06/2006 $200.00
SENATE DEMOCRATIC LEADERSHIP COMMITTEE 04/21/2004 $625.00
SENATE DEMOCRATS 2004 PAC 08/16/2004 $600.00
Sam Bell, state coordinator of the Rhode Island Progressive Democrats of America (RIPDA), filed an ethics complaint against Representative William O’Brien (District 54) last week. Bell alleges that when O’Brien ran for office in 2009 and 2011, he failed to file his first two required financial disclosure statements. Candidates are required to file financial disclosure statement for the preceding year.
A conservative Democrat from North Providence, Bill O’Brien was found to have plagiarized large portions of his website. Currently, O’Brien is facing a primary challenge from Democrat Bill Deware, a progressive and labor activist.
“Financial disclosure forms are vitally important,” said Bell in a statement, “Without them, we have no idea where politicians receive their income. Given that the [Raymond] Gallison scandal seems to be related to lawmakers’ income, tracking where politicians make their money is especially important.”
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Hello RI Future! Here’s a podcast I recorded recently with Sam Bell. I’ve been doing this weekly for a few months now and have finally caved to public pressure to make it available here to all of you! I hope you enjoy it! New podcasts will be up every week. Just so you know, the overarching theme of the podcast is that we’re going to give you insights into the nature of existence that will depress you. As it happens, we seem to spend a lot of time talking about RI politics, because it’s such an insightful and depressing topic. Set your expectations accordingly…
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Ahead of yesterday’s finance committee votes in both houses of the General Assembly approving RhodeWorks, the truck toll plan, a press conference was held at the Greater Providence Chamber of Commerce (GPCC) featuring some of Rhode Island’s most powerful political, business and labor leaders. They were there to present a unified message in support of the tolls, despite vocal opposition.
One prominent Rhode Island business owner, whose business has “been a member of the Chamber for almost as long as there’s been a Chamber” told me that contrary to GPCC President Laurie White‘s claims that this issue has been discussed with membership, he was never consulted about the plan, despite his business’s dependence on trucks for shipping. In fact, he said, “I didn’t even hear about this meeting until I heard about it on the radio this morning!”
As I said before, RhodeWorks is inevitable. The legislation has been fast tracked not because there is a sudden, urgent need to fix our roads and bridges; the need for this repair is decades old. The legislation is being fast tracked because the necessary arrangements between the various parties involved have been carefully worked out, but in an election year, meaning that the sooner elected officials put this issue in their rear view mirror the better. Several legislators are going to be challenged for their seats because of their votes on this.
Not that Republican challengers are offering anything better. As Sam Bell pointed out yesterday, the Republican plan seems to be privatization, which means private businesses will take over our roads and bridges and charge whatever tolls they want to for profit, or their plan is cutting the budget, denying important social services to families in need. (Not to worry, though: Senate President Paiva-Weed promises that she and Speaker Mattiello will continue to cut the budget, cut taxes and cut services. More on this in a future article.)
The cost of RhodeWorks will be passed onto consumers. Ocean State Job Lot raised a stink over the weekend when they put their expansion plans on hold, threatening as yet unrealized jobs, but after this all pans out, Job Lot will not lose out on any profits: They will simply raise the price of their goods. This means that we are not imposing a user fee on businesses as much as we are coming up with yet another regressive tax that will affect the poor and middle class more than the rich, which is just the way our political leaders like it.
The General Assembly is expected to pass RhodeWorks today, and Governor Raimondo will sign the legislation asap. In the meantime, you can watch the full press conference below.
Laurie White, Greater Providence Chamber of Commerce (GPCC) President
RI Governor Gina Raimondo
Providence Mayor Jorge Elorza
Peter Andruszkiewicz, Blue Cross & Blue Shield of Rhode Island CEO and President
Scott Wolf, Grow Smart Rhode Island Executive Director
Lloyd Albert, AAA of Southern New England Senior Vice President
Michael F. Sabitoni, Rhode Island Building and Construction Trades Council President
House Speaker Nicholas Mattiello
Senate President Teresa Paiva-Weed
Woonsocket Mayor Lisa Baldelli-Hunt,
Central Falls Mayor James Diossa and
Lt. Governor Dan McKee were in attendance but did not speak.
The Providence City Council Finance Committee unanimously rejected the proposed extension of the tax stabilization agreement (TSA) for the property at 100 Fountain St last night. The meeting, rescheduled after the unexpected death of former Mayor Vincent “Buddy” Cianci last week was on the same night and time as Governor Gina Raimondo’s State of the State address, so I had to access the recording of the meeting here.
During the brief discussion, Councillor Carmen Castillo noted that granting this TSA at a time when the City is facing an economic shortfall and planning to raise taxes on homeowners seems wrong.
Councillor Kevin Jackson proposed rejecting the TSA, pointing out that the agreement was granted to improve the condition of inactive buildings and not intended to be a lifetime grant.
Finance Chair John J. Igliozzi condemned the extension, saying, “The contract has been fulfilled. It’s become a high income subsidy.”
City Council President Luis Aponte, who is not on the Finance Committee, addressed the room, and said, “It’s the right signal that the [Finance] Committee is sending to the public and to the [City] Council.”
“Most tax treaties that have been approved in Providence have been beneficial to local development and have improved both new businesses and encouraged new housing,” said City Councillor Terrence M. Hassett in a statement, “However, the agreements have a shelf life and eventually expire. Extending them for a longer period, places other taxpayers in the position of paying more and that is coming to an end.”
The proposed TSA would have allowed the property owners to pay only 25 percent of their assessed taxes in the first year, with a 15 percent increase each year thereafter until year five, when the owners would have paid 95 percent of their assessed taxes. The owners stood to save hundreds of thousands of dollars, but as the STEP Coalition (Stop Tax Evasion in Providence) has pointed out, “[t]he construction jobs are long gone and these buildings have been occupied for quite some time.”
Mayor Jorge Elorza supported these tax deals, despite his earlier campaign promises to not give out TSAs “unless Providence could profit from the deal in some way.”
Sam Bell, a member of the STEP coalition who is also the executive director of the Rhode Island Progressive Democrats of America, said, “This was a huge win for Providence taxpayers! It shows that, when we work hard, we can defeat the most powerful corporate interests in the City of Providence.”
The Finance Committee still has to decide on three other, similar TSAs in the near future.
A petition signed by nearly 400 Providence residents was delivered to City Hall Thursday night by STEP (Stop Tax Evasion in Providence) calling on Mayor Jorge Elorza and the City Council to reject four ordinances that would authorize $3 million in tax breaks to connected developers.
Details on Elorza’s tax breaks for existing properties
Mayor Elorza offering tax breaks Candidate Elorza opposed
The Extraordinary Rendition Band played outside City Hall in support of the protest and then lead a march inside, up the stairs and eventually into the City Council chambers. Seven police officers were on the scene.
At the same time the protesters arrived, people were arriving for the Bike the Night with Mayor Elorza event. The STEP protesters were eager to engage with the Mayor about the proposed tax breaks, but Mayor Elorza did not make it to the bike event that bore his name, citing a conflict.
City Council President Luis Aponte told me that the Council is “taking a real hard look” at the proposed tax breaks, noting that there is some affordable housing in the mix of properties under discussion, and these may need to be subsidized. Aponte also said that he’s “not sure” if the tax breaks amount to $3 million, assuring me that the actual number will come out as the City Council examines the proposals.
Sam Bell, executive director of the RI Progressive Democrats of America and STEP member called the proposed tax breaks “corporate welfare.” The tax breaks are to be awarded to a bunch of very well-off people who don’t want to pay their fair share in taxes, says Bell. These properties have already had over a decade of tax breaks, he said, and if they can’t get the numbers to work, they need to go to the banks and refinance. Otherwise, these tax breaks amount to a “bank bailout.”
John Jacobson, who organized the petition delivery, arrived in a Santa suit and called the proposed deal corporate welfare and “crony capitalism.”
“We shouldn’t live in a city where if you have the right last name or are connected you don’t have to pay taxes,” said Jacobson. He spoke to the crowd gathered outside the Counicl chambers for some time, explaining the background of the tax breaks connected developers have come to expect in the city.
The STEP coalition also includes Unite Here Local 217 and organizers Jenna Karlin and Heather Nichols-Haining attended the protest.
Candidate Elorza told the RIPDA that he was opposed to granting tax breaks to developers that didn’t generate positive revenue for the city. Mayor Elorza has yet to explain why he changed his mind on this issue.
As a candidate, Jorge Elorza promised that tax deals would not be given out unless Providence could profit from the deal in some way. Mayor Elorza, however, seems intent on perpetuating the kinds of bad practices that lead inevitably to higher tax rates for home owners.
When the RI Progressive Democrats of America (RIPDA) were in the process of interviewing candidates for Mayor of Providence in search of the group’s endorsement, they took the liberty of recording the interviews. One of the questions that the group posed to then candidate Elorza was about Tax Stabilization Agreements (TSAs) which are essentially massive tax breaks given by the city to what it considers to be worthy investments. The idea behind TSAs is that a company might want to build in Providence, and in order to lure the company here, a tax break is given. This might spur building and development, and if used properly, is arguably a good idea.
However, in practice, these tax breaks are not doled out in ways that might spur growth or development, but are given out to developers who have back room connections to City Hall. It’s cronyism at its worst, and it costs Providence home owners directly, as their taxes are raised to cover the breaks given to insiders.
According to the Progressive Democrats, “The deals pending before the city right now are even more egregious than usual. That’s because the development has already happened. There’s no question of encouraging development–the developers want their special tax deals to continue. This is just giving the city’s limited tax dollars to big developers. Pure and simple.”
Sam Bell, executive director of the RIPDA, said, “One of the things that really inspired us about Elorza when he was running was his commitment to crack down on the abusive culture of corporate welfare. It’s very sad to see him change his tune now that he’s won.”
You can watch Elorza answer the question about TSAs below.
See more here: Details on Elorza’s tax breaks for existing properties
While it’s been widely reported that PawSox ownership’s dream of playing in a riverfront stadium on I-195 redevelopment lands in downtown Providence is dead, the Providence City Council may still get to drive the final – and conclusive – stake through its heart. The Stop the Stadium Deal group announced today in a press release that it will file with the city the necessary paperwork to compel the City Council to consider an anti-stadium ordinance.
“The intent of the filing is to compel the City Council to bring the stadium issue to a public referendum,” said the press release, “and allow the voters of Providence to determine its outcome.”
Sam Bell, president of the Stop the Stadium Deal group, said more than 1,500 signatures were collected. He said 1,000 are needed to compel the City Council to consider a specific ordinance.
“If the Council doesn’t pass the ordinance unamended by that point, we will be able to force it onto the ballot by gathering signatures from five percent of Providence voters,” Bell said. “However, given the strong public pressure, we are confident this won’t be necessary.”
The ordinance would forbid a “stadium” or “athletic facility” on the PawSox preferred parcel, and would mandate to all new stadiums to “pay property tax at the full commercial rate” and that “No public money from the City of Providence shall be used directly or indirectly to subsidize or otherwise provide any financial benefit to any new stadium.”
Said Bell, “For years, wealthy owners of professional sports teams throughout the country have been using public monies to increase the value of their private investments. The voters in Providence want the opportunity to express a resounding ‘NO’ to such an irresponsible use of public monies.”
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