Outrage!

RIFuture is running the story of how the Dept. of Edc. is planning a small salary raise for the new Commissioner:

"Pay Grade: F00-F56 base salary rate adjustment - flat rate ($135,516) to ($203,000)"

"On Friday, March 27, 2009 at 9:00 A.M. in the Executive Dining Room, Ground Floor, William E. Powers Building (Department of Administration), One Capitol Hill, Providence, Rhode Island 02908-5890, the Director of the Department of Administration, Gary S. Sasse, will hold a public hearing in accordance with the provisions of Sections 36-4-16 and 36-4-16.2 of the General Laws of 1956, as amended, to consider revisions to the Unclassified Service Classification and Pay Plan."

No wonder the State has $ problems. What an insult not only to our current teachers facing major layoffs, but $ cuts. And since we all help finance ALL of this (remember, we the people), I'm once again reminded of not only how stupid they believe all of us are, but how stupid they are.

We're Gonna Be in Pictures!

Bet you didn't know that the title is the name of a famous Daffy Duck, and Porky Pig cartoon. Appropriate, perhaps. I can't say it better than Tom Sgouros ( although I wish that I could).

This is not economic development. This is a combination of desperation and intoxication. Desperation that no one in a position of power has any better ideas, and intoxication with something as glamorous as movies.

The result is that we'll spend $1.25 million in state money, in exchange for around $50,000 in new tax revenue and almost a million dollars in economic benefit to the state. What a bargain.

But, but, I could be an extra. This could be my big break. I oughta be in pictures! "And all I got to do is act naturally "

We're the only state to ever think of this. Well, no, maybe, unless you count: New York City, New York State, Milwaukee, Louisiana, Penn., Texas , NM , North Carolina, Washington, Oregon, Baltimore, MD, Tennessee, CT , Las Vegas, NV, Detroit, Illinois, Hawaii, Mass., etc. etc. You get the idea. How many also offer studios with the same tax credit deal? Many.

The state of Louisiana is taking a second look at the tax incentives it has granted movie producers after state lawmakers determined that some of the productions have cost the state more than what it received. (link)

But, but, I LIKE the movies & this is a really good idea.
The result is that so many states (not to mention other countries) offering tax incentives now must cut each other's throat to offer the "better deal" with no real evidence that lost monies (OUR money that has been given away), results in any real economic growth. Umm, isn't this like, kinda important?

There is an actual 2006 report on this precise topic published by the New England Public Policy Center at the Federal Reserve Bank of Boston.

And, when film tax credits do hit their mark and induce more local film production, the resulting stimulus to overall economic activity appears to be rather modest.

And, analysts estimate that for every dollar of revenue lost to film tax credits, between 15 cents and 20 cents of revenue would be recovered from tax receipts generated by stimulated economic activity.

So for every buck we lose we see a return of 15-20 cents? And any jobs tend to be temporary and often unskilled, except for the few requiring Union membership?

“What is the state getting for its money and could we be spending this money on more productive ventures?” said Ellen Frank, senior economist at the Poverty Institute at Rhode Island College.

Gary S. Sasse, executive director of the Rhode Island Public Expenditure Council, a business-backed [emphasis mine] research group, added: “We are concerned that the film tax credit is not creating permanent jobs and investment in Rhode Island.” ( link-Scott Mayerowitz)

Well, duh. You mean we could, like, be doing other things with proven economic benefits?

RIPEC’s Sasse said preferential tax treatment should be given only to industries with “permanent and tangible investments and job creation.” He said there might be more efficient ways to grow the economy, such as more higher education spending. (Projo- above).

You don't say! Well, yeah. Kind of seems like a no-brainer to me. Am I lacking all the details? Could be. I want guarantees. I want clawbacks.

This company, Pacifica Ventures, is proposing exactly the same projects in N.Y., Pa., & L.A., Kiev, etc. Hal Katersky, chairman of Pacifica Ventures, has been the target of lawsuits alleging fraud and mismanagement (RICO).

Katersky (Tiverton native) has been sued dozens of times. Dana Arnold (partner) has no movie experience at all. He has set up at least 30 different companies with "Pacifica" in the title all with a history degree. With Katersky, many different companies have been set up in the past 18 yrs. They have used non-existent ownership of one company to leverage deals to do exactly what they are proposing here. This business is the focus of a 4-part expose by The Citizen Media Group- a non-profit group out of New Mexico. Has anyone read this????

Between 2000 to 2004, Katersky was head of InterGlobal Waste Management, acompany that was supposed to manufacture a computer-based animal waste treatment system called Bio-Loc. The process was supposed to purify run-off contaminated by animals...
The Oklahoma Department of Securities sued the company and Katersky personally, along with other defendants, alleging that Katersky “engaged in an act, practice or course of business that operated as a fraud or deceit upon investors,” according to court documents. He reached a settlement with the department in January 2005.

Katersky has been sued at least 30 times & filed for bankruptcy in 1997. This is a website detailing the world-wide insurance scam he operated out of Australia & Louisiana.

Local filmmakers in N.M. were upset that none of the tax credits actually applied to them. Go figure. Hello! So whaddaya got? Maybe I should have entitled this, "Promises, promises."

Rep. Kennedy Concerned with Lost Federal Funding in State Budget

**Update: The Jan. 23 requested response date is history. So where is the response on the amount of federal funding our State will be throwing away? It is our money, after all. Funny, I never saw Projo or any other newspaper cover this.

On Dec. 17 Rep. Patrick Kennedy (our Rep) forwarded a letter to Governor Carcieri. Odd that the Guv has not yet released it. In it Kennedy expresses that one of the "most rewarding parts of his job" has been securing federal funding....for so many projects and programs that directly effect the quality offor our constituents." He has worked "diligently... to secure signifiant Federal funds to support quality public health, safety, education, transportation, and human service programs..."
He then continues:

It has recently come to my attention, that the state's current budget deficit and proposed budget cuts may force Rhode Island to forfeit important federal funding directed at services, programs, and staffing. As such I respectfully request a report that outlines all Federal funds the state is unable to match, or is otherwise unable to utilize, under the current enacted state budget.

I am commited to working in partnership with you to serve the best interests of the people of Rhode Island. I look forward to a response by January 23, 2008. Please contact my office if you have any questions or suggestions on the best way to move forward on this matter.

Sue Carcieri's Thinking

Generally I pay little attention to the antics of those related to elected officials. It's just not relevant. Sue Carcieri, though, is an exception. She frequently inserts herself into political scenery with the religious feverence of a crusader. She is a strong vocal advocate against womens' reproduction rights & will seemingly go to any lengths to ensure that all conceptions result in births. There seems to end most of her concern- and Projo's Charlie Bakst has it on tape.
Sue Carcieri needs to go back & read her New Testament thoughtfully. She might especially want to pay attention to the meaning of Matthews' Sermon on the Mount with the eight beatitudes. Sue speaks as a woman so immersed in her virtual reality of country clubs, wealth, and comfort that she has formed her own virtual country. In this world top-notch health care is available on demand, services are provided with no thought to those providing them, cars are new, Florida beachfront condos are de rigeur, and some R.I. young people:

...have mentors who are much older than them who are training them up. You know — how those terrorists have kids blow up, you know, Benazir Bhutto and so forth?
You think the kids thought of it? I don’t think so.”

What on earth is she talking about?
I've never met her, but did suffer through the arduous task of listening to her attempt to make a speech to a group of Chamber of Commerce women a few years ago (link). She made absolutely no sense then, and has not improved in her well-intention, narrow world.

I get the distinct impression that Sue (who doesn't get older, just blonder), along with her progeny, have never actually conversed with a "poor" person, much less developed any kind of relationship with anyone outside of her comfort zone.

... I do relate to having children, because we raise children. You cannot always say, ‘Yes, yes, yes, yes.’ I mean there are those curfews and there are those restrictions on the allowance. Or, ‘You don’t get a new car because…’ ”She said someone tough-minded must be in charge.
“We have a lot of soft hearts but not people with tough minds.”

Cars? Allowances? I think that she has a soft head. She hasn't met the people that I have that live in our own district. Seniors who count on Meals on Wheels not only for nourishment 5 times/week, but for outside contact. Seniors and those who have chronic illness who have to decide between eating, paying rent & bills, and meds.

I've met working families who worry constantly about illness as they have no health insurance for their families. Parents who now have their meager paychecks garnished as they've had to be hospitalized or have expensive testing done for sick kids or themselves. Bankruptcy is a constant spectre. Families who ran out of money by Christmas (end of the month) and had no food, let alone presents. Not because of poor budgeting, but because they had so little to being with. Car repairs soaked up what little reserves they had and they found themselves relying "on the kindness of strangers."

The mother who has never had a school picture of her children because there is no extra money. The kid who had no winter coat and shoes that no longer fit. The debt-ridden college grads struggling as "interns" or working as baristas at Starbucks while wondering what happened to those good jobs, but still hoping.

She hasn't met the landscaper who is hoping to sell the home he purchased a year ago before the bank takes it. The house is no longer worth what he paid for it. End of his "American dream." Yeah, sell your home in a dead market. And let me assure you, much of the market here is dead. And the top level of million-dollar homes/condos soon will be.


She speaks of immigrants as if they are all illegals & waiting to blow us up. We have a LOT of immigrants in our County and they are the hardest working people that I have ever met. Yeah, they look different & they have accents, but they are the hardest working people that I have ever met. Most of them do back-breaking low-skilled work for low wages. You probably don't take the time to really know them. My husband does. He knows what it's like to be from an immigrant family.



I recall attending a meeting at the library in May of 2006, "The Emergency Campaign for R.I.'s Priorities." The Guv was once again targeting various social programs in his budget. Not one of his minions was present, but Sen. Paiva-Weed & Levesque were present- and it wasn't even their District. I heard story after story of exactly how people's lives would be affected with his budget cuts. Those with mental health problems who rely on services like housing, therapy, & meds and worry everytime social service cuts are mentioned (and rightly so). With over 125 present (no press coverage), they not only listened, but pledged their support for restoring cuts.

Too bad Sue wasn't there. Tough-minded. Yeah. As long as it's someone else on the other end shouldering the load to keep your world pleasant. Didn't much like living/working in Jamaica, did you? That poverty stuff is hard to stomach on a daily basis.

Republicans Plan URI Tuition Increases

While listening to "A Lively Experiment" I heard the NEA's Bob Walsh bring up the Republican's Jelly Doughnut Solution as his "weekly outrage." BTW- my weekly outrage was no women on this program. He mentioned that since URI receives 15% (actually it's 14%, Bob, but close enough) of the State budget for funding, the Republican solution would mean that in two years it would only receive 5% funding. Uh-oh. Since my son is now a frosh at URI, I decided to follow up on this.

This from the URI Foundation website:

The State of Rhode Island contributes just 14 percent of URI’s operating budget, compared with 24 percent a decade ago.
To help make up this shortfall, URI has increased tuition an average of 7.5 percent each year over the past five years. These increases have made it more challenging for students with limited financial resources to pursue URI degrees.

What does this mean? My son attends URI & annually pays tuition $6400 & fees $2200 ( health insurance can add another $1000 unless you can prove in a timely fashion that you have it- I was not quick enough) amounting to appx. $8700. Of course, this does not include books, transportation, or housing/food. Campus housing (if you can get it & he could not) is $2751 per semester ($400 less for a triple) & food (many diff't options)- appx. $2000 per semester.


Now if they increase tuition 7.5% each year with 14% funding, let's extrapolate that. With 4% State funding, tuition will be increased 30% over a two year period & then 7.5% thereafter. This translates into appx. $550-600 increase each year after the initial $1800 increase. So in 3 years my son's tuition will be $9000 (quite a jump from the initial $6400) plus fees (no choice here & I figured in no increase) =$11,200. Throw in housing, & food (with no increases) and it's now over $20,000/yr. Not such a great buy now.

How does one justify this in an age demanding an educated force? Oh, I know how they do it. We fool everyone into thinking we're reducing taxes while what they are really doing is increasing tuition, fees, etc. so that the rich get richer and the rest of us ...well, who really cares. Only those who can afford it (rich) should be in college anyway. Isn't this the point of the new "ownership society?" A few have everything while everyone else is on "their own" with no social support whatsoever? But, wait, we're the everyone. We're "the people." When does government start remembering that? Maybe when we do & vote/act accordingly. Forget the "Jelly Doughnut Solution." It's just not worth if for what will only be a fleeting, momentary delight with rather unpleasant consequences.

Republicans' Jelly Doughnut Solution

This is the Republican six point plan from Not for Nothing. Funny, no one sent me their press release.

This be it:

1. 10% cuts in the ’09 budget for all departments in the first 10 days. Saving $310 million (from usable revenue)
2. 5% cuts in the current year for all departments in 20 days. Saving $180 million (from usable revenue)
3. Have all legislators pay 10% of health insurance costs in 60 days. ? Savings

4· Fully implement Separation of Powers in 30 days - Honoring the Constitution - no savings
5. Find real property tax relief in 40 days - ? Savings
6· Free local school departments from unfunded mandates in 50 days - Savings vary from community to community
7· Have all legislators pay 10% of health insurance costs in 60 days - ? Savings

This is a plan? Not a whole lot of thought here methinks. No indications of any ways to increase revenues. Doesn't bode well for us here on the island with the Bridge Authority already planning on raising tolls - and that's before any 10% cut.

More hard numbers would have been appreciated - even estimates. Since the Guv is already making massive staffing cuts, the only thing left for dept. cutting is ceasing programs &/or impossing fees. Yeah, fees. Screw taxes & kill 'em with fees. And then say that it wasn't OUR idea- it was theirs. Let the buck stop with someone else. Oh, & forget a local Dept. of Motor Vehicles - gone.

School mandates -gone. We don't really need sports, bus monitors, or even busses. Heck, we don't need all those public schools either which are a real drain. Cut that funding. Go to a public college/univ? Raise those tuitions by at least 10% and don't forget those fees either. Counting on a new improved school funding formula? LOL. Meals on Wheels - eating well once/wk. should do it for those complaining seniors.

Social programs- let 'em eat cake. No tax on that. Sounds good, but then these simplistic plans always do. Let's not too specific here because then we might realize that we're talking about real people here- students, handicapped, those who are ill, kids, seniors, all of "we the people" in fact.

#4 & 5 seems to indicate that the unwritten part of the plan is to decrease local funding while making up for it with ? non-specific funding. Yeah, non-specifics. Let's leave it to those Democrats to actually look closely at specifics & then we can blame them.

Reminds me of a jelly doughnut. Love 'em. Until I'm done. It's mostly air, doesn't really fill me up, gives me only a moment of sweetness, & then I'm stuck with the thought of all those wasted calories, the work I'll have to do to burn them all, and the real bummer- an empty belly. Back to a healthy diet which I know is good for me but which isn't nearly as much fun as a junk food binge. Yeah, I'm a sucker for one almost everytime. Hmmm, that's why I think I'll call it- the Jelly Doughnut Plan. Oh so easy going down, but a real bummer afterwards.

State Republicans' Plan Reducing Spending

Not for Nothing, one of my fav state blogs, has the news that there is a 3:30 State House news conference this afternoon in which House Minority Leader Watson will introduce the Republican Caucus’ six-point plan to rein in state spending.


Since I'm here & not there, I'd be most appreciative for a plan copy if someone out there would care to send it. Thanks.

RI Budget Conference Jan. 10 in Warwick

This is hosted by the Poverty Institute.
January 10th from 8:30-1:30 ~ Crowne Plaza Hotel, Warwick
A conference to provide practical information about a number of important topics related to the state's finances including:
Influencing the state budget debate
Overview of trends in revenues and spending: Ellen Frank, Sr. Economist, Poverty Institute
Challenges and opportunities in state finances: Russell Dannecker, Senate Fiscal Advisor, & Michael Mazerov, Center on Budget and Policy Priorities
Tax subsidies and economic development: Greg Leroy, Good Jobs First (Washington, DC)

Here is the invite. Cost is $20 for breakfast & lunch. My husband & I are attending. E-mail me if you'd like a ride.

Revenue Director Finally Appointed

** UPDATE: Just picked this interesting tidbit up from Matt at R.I.'s Future who in turn got it from the Warren Beacon:

Steve Kass, Carcieri’s communications director, said the governor has no intention of implementing the positions to study the state’s tax breaks.
Kass said many of the tax breaks are like the sales tax breaks A. Duie Pyle didn’t receive. Unless the company moves to the state, the state doesn’t see any enhanced revenue. The breaks are usually used to lure new companies to Rhode Island, Kass said.
Kass said there are more than enough people in state government’s budget offices to study the tax breaks. He also pointed out that the General Assembly is supposed to study the tax breaks before they pass them. “Why doesn’t the General Assembly have some of their budget people, who work six months of the year study them…instead of going out there improving their golf handicaps,” said Kass.

Uh, this makes no sense at all. This is the Communications Dir. for the Guv? He was unaware of the oncoming Sasse appointment? Has Kass been out-of-touch trying to improve HIS golf handicap??? Let's see - the Lege are low-paid part-timers & the Guv & his staff are WELL-PAID fulltimers. So where does the buck stop again?
As I've said before, it's the Guv's job to present a balanced budget each year. The Lege's job, then, is basically to tweak. And we could have had Charlie Fogarty..


The Guv finally got around to appointing a Director to the new Office of Revenue at $130,000. Sorry, the wage seems high when he's also eliminating 1000 State jobs, many (most?) which pay a LOT less than this. I also believe that this is a department of ONE.

That said I look forward to this new deparment created in 2006 by the Lege. "...an amalgam of three existing revenue-raising agencies - taxation, motor vehicles and the Lottery that each have their own directors; a new property-valuation division and a new office of revenue analysis. Among its missions: to analyze whether tax credits are accomplishing the goals for which they were created, such as economic development..."

The latter mission is of especial interest & is long in coming. Do these tax incentives that we grant to some but not others work? Or do they cost us? And what do they cost us? Yes, kind of important to know.

Sasse, an East Greenwich resident, is former director of RIPEC and has "a Masters Degree in public administration from the University of Missouri-Columbia and B.A. in political science from Florida State University."

It's a heckuva raise, I reckon , & it will be interesting to see what he makes of this potentially important & relevant position. The new director will be a "key advisor to the Governor on issues related to tax strategy, tax policy and revenue....[with a]clear focus on revenue analysis and enhancement for the State.’’

Thanks to Projo reporter, Katherine Gregg.

The Guv's Budget Plan

The Guv spoke to the "Newport Daily News" about his plan to cut $200 mil from the State budget in his "Media Tour" to bolster support for this. He plans to cut 1000 workers from the State payroll as follows: 150 temps, 500 from leavings or jobs not filled, "125 from the administrative workforce within the five state departments providing human service assistance, because the five have been combined under one overall director: the newly created health and human service secretariat," and the rest (225 by my count) layoffs (which will take at least 5 mos.). He's looking to save a mil here.
He hopes to achieve another $50 mil in Union concessions (I'm sure he's got his fingers crossed), and another $50 mil in program cuts slicing welfare benefits by raising the threshold & decreasing time length. Stupid you for being poor (or jobless). Plenty of jobs at McDonald's or Tim Horton's.
He also encourages departments not under his authority to cut costs. "Carcieri ruled out raising revenue through taxes, but did say the Rhode Island Turnpike and Bridge Authority has talked about possibly raising the toll to cross the Pell Bridge." Yes, that's great news for those who have no choice but to use it daily, inc. URI students.
He will not increase revenues. Uh, that's why he's vetoed Newport's bill to increase property taxes on time shares 3x. However, the Lege recently overrode this one (about time, too). Wonder how our Rep. delegation voted? Sen. Gibbs has voted for it & against it. Guess this was just one of the times she couldn 't make up her mind. Perhaps the Lege will even update its site to include a journal for Oct. 30 so that we can find out.
Regarding raises in his office, "(Salaries of $100,000) sounds like a lot of money to the average Rhode Islander ... but it's not," Let's see, the average household income in Middletown is slightly over $50,000, $40,000 in Newport, $55,000 in Little Compton, and slightly over $50,000 in Tiverton. Yeah, one salary over $100,000 not only SOUNDS like a lot of dough, IT IS!
Regarding the flap over his criticism of State interpreters, his thoughts now are that in non-court areas, "We need to have people come here and learn the language," he said. "We don't want to provide them a crutch by providing those services." Nope, especially if they're entitled to those services.
No problemo with virtual blackjack video games at Newport Grand. "But he said he would not support 24-hour gambling at the two slot halls unless the local community supported it." Hey, the line of an anti-casino Guv needs to be drawn someplace. He's done more to advance gambling in this state than anyone. File this under, "don't make me laugh."
I'm still wondering what happened to all those "Big Audit" savings? Yes, indeedy, the coming Lege session should prove quite entertaining. And we could have had Charlie Fogarty.
And thanks, to the "Daily News" for endorsing this man & giving us 3 more wonderful years.

Thanks to reporter Joe Baker & other Daily News staffers for the article.

Schools Open Again in Tiverton

It's back to school Wed. for everyone after a judge's consent decreet and a state mediator is finally on the job. The agreement ordered that a majority of the school committee be present for the negotiations, including the Chair/Vice Chair. Pretty sad when a judge has to order a school committee to negotiate. Why it took so long for the mediator to get on the job is beyond understanding.
The consent decree means that both sides agreed to it with the judge enforcing it. The School Committee agrees to show up & negotiate, the Union agrees to return to work, a mediatior will be present, and the towns gets its school opened. A fair deal all around. Too bad it could not have effectively done a lot soon without the judge.
The Guv finally woke up & is now meeting with the Dept. of Labor & Training to see what the glitch wash that held up these negotiations with no mediator. "From the governor's point of view, it is a shame that the situation got so far down the road that contract negotiations are allowed to affect the education of Rhode Island students," said Neal [his spokesman]. Duh, where the devil has he been all these years? He's just figured out there is a problem? Dynamic leadership involving education ain't ever been his forte. But he sure does like charter schools. And dislike unions.
This year provided the perfect storm for school funding problems by communities with the lege's basically freezing aid (instead of the guv for a change) while contemplating the results of the report that the State should better fund education which they paid for. This was also the first yr. that property tax caps kicked in. Thank the lege & the guv for all this "wind." Next year may well be better - it's an election year.
Here is the take on the Republican chair on all this: " [strikes are] nothing but an organized effort by the unions to break the law, and the unions have to be held accountable.” "The U.S. Attorney should consider a RICO Act investigation against the NEA, Rhode Island, which is authorizing, and has authorized in the past, illegal strikes by teachers unions. The NEA involvement in these local teachers union strikes amounts to extortion, which is an explicit RICO violation.”
BTW, declaring a strike is not illegal. Actually performing it is AFTER a judge reviews it. Why any teacher is a Republican escapes me. A RICO investigation??
These teachers are asking for raises that don't even cover cost-of-living increases here. They want quality health care. Book 'em, Dano, and ready the noose! I'm reminded of a Molly Ivins quote (boy, do I miss that woman), " It's like, duh. Just when you thought there wasn't a dime's worth of difference between the two parties, the Republicans go and prove you're wrong. "
Let's get these communities who are without contracts, back to work. Let's end this yearly nonsense. And, most of all, let's not forget next Nov. (unfortunately, the guv's got another 3 yrs.)

Charlie, Where Are You When We Need You?

We could have had Charlie Fogarty for Guv. Another 1% would have done it. Fie!

Instead we got the "Fiscal Fitness" promoter. The former CEO. The idea behind the "Big Audit." Gee, what happened to those plans?? As my youngest would say, "Blah, blah, blah; yackety, smackety."

I've been following the guv's protestations regarding the requests of chair Sen. Lenihan in requesting the guv's office to supply certain documents. These have to do with the outsourcing of jobs. The guv's first reaction was to attack like a bulldog (actually, I think this may be a slur on bulldogs) and then to distract. The next day he rethought - good move.

Now he's getting more serious and REALLY looking into it. A clerk making 40K while the employment agency makes more than she does does cause eyebrows to raise.

So I just found this in my mailbox:

FOR IMMEDIATE RELEASE: Contact: Bill Lynch

Specifically, Lynch is requesting the names, positions, salaries and overhead mark-ups covered in such contracts dating back to 2003. "It's time for the governor and his staff to come clean. Everyday the administration's story seems to change a little more, and I think it's about time the people of Rhode Island learned how the governor has been spending their money," said Lynch.

Lynch also noted that Karenlee Bernardo, the Department of Transportation typist whose job costs the state more than $102 thousand annually, was a Ward Three Republican candidate for the Warwick City Council in 2002. "It begs the question: How many other GOP candidates were rewarded with state contract jobs for agreeing to run on the Republican ticket?" Lynch asked.

"Maybe we need a REALLY BIG audit?" he asked.

Ya' think?? What happened to the buck stops here? It's called the sidestep. He learned it from Sen. Gibbs.

What are your Priorities?

Speak Out! Join Campaign Members at a Community Forum!

The Campaign for Rhode Island’s Priorities will host a community forum for Rhode Island constituents to speak out about the Rhode Island state budget and the impact of budget cuts on workers, families, and our most vulnerable children, disabled and elderly.

Aquidneck Island Community Forum: Monday, April 30, 6:30 pm - 7:45 pm Middletown Public Library, 700 West Main Road, Middletown

This group held a meeting last here. There were so many there, that many stood outside. Sen. Paiva-Weed & Sen. Levesque attended. The "Daily News" was a no show.

Remember, if you don't speak up, then who will? "If government is not good perhaps it is because the "good" refuse to participate and so we get the government that we deserve."-Mark Twain

Please try to attend.

Fair Taxation Could Give Money to Poor Kids

Today I rec'd 2 interesting e-mails. One was out of Sen. Gibbs' office (as Chair/Co-chair?) of the Joint Child Care Commission requesting members to attend a May meeting on a presentation on "child care cuts and child care in general." Members are urged to attend 3 rallies (none here) to influence the leg to restore $ to the guv's budget. These are good things. However, the IRONY is that Sen. Gibbs' good buddy is the one who made the cuts.

Who will change the budget is Democrats. Her campaigning (as our Sen.) one way or the other is practically meaningless. That's why she encourages her committee to do it.We elect June Knows Best each year because....we do. As much as I applaud these efforts, I wonder where the extra $ will materialize from? Is she advocating other budget cuts or is she asking for additional funds to be raised.

Ah, but Ocean State Action (the other e-mail) and I have a suggestion. There is a new report out from the Campaign for R.I.'s Priorities, "Tax Tricks: Corporate Income Tax Evasion in R.I." "...[Large] corporations, many of them based out of state, avoid paying an estimated $12 million annually in Rhode Island state income tax through the use of just two corporate income tax loopholes.

“It is time for large, multi-state corporations that do business in Rhode Island to pay their fair share in taxes,” said Karen Malcolm, Executive Director of Ocean State Action, which coordinates the campaign. “Businesses like Wal-Mart and Toys ‘R’ Us benefit from our state’s public, yet they are taking advantage of loopholes and forcing a greater share of the taxes onto the rest of us – pay Rhode Island families and small businesses.”

As a small business owner, I certainly agree. I didn't pay like Wal-Mart "...just 2.0 percent of its Rhode Island income in state taxes in 2005, while middle-income Rhode Islanders paid 10.7 percent of their income, and low-income residents paid 11.5 percent of their income." Did you?

"The report outlines the impact of two “tax tricks” – the Passive Investment Corporation (PIC) loophole and the “Nowhere Income” loophole." We are one of the few states offering these tax incentives. These are NOT available to small business owners.

There are three bills out there winding their way through the lege:

1. House Bills 5618, 5619, and 5756, Rep. Edith Ajello (D-Providence)

2. Senate Bills 401 and 437, Sen. Steven Alves (D-West Warwick) and Senate Bill 583, Sen. Charles Levesque (D-Portsmouth).

These bills eliminate the tax loopholes. Good bills. Fair taxation. Let your leges know where you stand. Maybe closing these holes would help fund the child care cuts (among others) the the guv sliced from the budget. Sen. Gibbs, where do you stand? It doesn't say anything on your blog/website????

"Members of the Campaign will team up with Rhode Island Jobs with Justice for an action outside the Providence Post Office on tax day, next Tuesday, April 17, at 3:45pm, to talk to fellow Rhode Islanders who are submitting their taxes about Wal-Mart’s tax avoidance strategies."

Guv Carcieri's Budget Follies

I actually had some time today to ready the latest issue of the "Rhode Island Policy Reporter." This issue focuses on the current budget and has excellent, readable, and understandable info. Tom Sgouros is an excellent writer. He is also an excellent speaker. I heard him speak this Fall in Newport about public education. He did an outstanding job and also brought a copy of his education report.

Reading it brings to mind reporter Joe Baker's recent weekly column in "The Newport Daily News." "Don't Let Facts Get in the Way" in which he examines the Guv's and the Republicans' mantra of "let people keep more of their money," and that R.I. is a magnet state for the poorest who flock here to take advantage of our "overly-generous" benefits.

This reminds me of the "shared decision making" which was the all the rage in schools a few years ago (the fads are never-ending in education, each one promising that it has "The Answer"). My friend, Newporter Eileen Brown referred to it as "They make the decisions and then they share it with us." It's all just conversation mimicking as irrefutable fact.

While the Guv has no proof of the "magnet" label, nor does anyone else, the part about keeping more of your money sounds attractive, doesn't it? But how it really translates (and there is proof of this) is that the rich get to keep more of their money while the rest of us are lucky to see a few hundred bucks, if anything.

Joe uses an opposing argument (actually far more valid) that all these budget crunches across our district, state, & country are the result of a carefully crafted Republican plan. You know it. The "starve the beast" crap. Cut federal funding/responsibility so that government services just no longer exist. Privatize schools and everything else. Eliminate those bad Unions and keep that cheap immigrant labor coming in.

"What's good for business is good for America." Free markets, capitalism reigns uninhibited & unregulated (history evidently taught us nothing here), and less government is better. Oh, and keep us at war constantly (distract like crazy), side-track us on religious issues, and "spin" like there's no tomorrow.

"So with even less money coming in to state coffers, something has to go. And when you have to go about cutting back on programs that help the poor, it's a much easier sell if you paint it in such a way that makes those folks look like leeches living off the blood of hard-working taxpayers."

Those poor people, immigrants, Union people are the real cause of ALL our problems. Hey, I thought that the "Big Audit" was going to put us back on track and save us all millions, billions, trillions. "... almost all stories about government should begin: "Look out! They're about to smack you around again!" (Molly Ivins) Cut taxes for the rich & screw everyone else - that's what it's all about, Alfie. "He might be a lousy but photographic guv, but he's OUR lousy and photographic guv." (Eileen) And, don't I know it, there have been plenty of Dems to help him out.

But read Joe's article - he's a better writer. You have less than a week, though, before it disappears.

Erin Go Bragh!

Governor's Budget Disses State Workers

In Texas [or Rhode Island], we do not hold high expectations for the [governor's] office; it's mostly been occupied by crooks, dorks and the comatose. Molly Ivins.

Newport Daily News columnist Joe Baker slams the Guv's budget balancing plan calling for state workers to take pay cuts. He points out that the pay cut for this year would take place not spread out over a year, but only a few months (for this year) if the Lege approves it.

"But what about average state workers, most of whom got a 3 percent pay raise this year? A person making $35,000 would lose $350, spread out over a couple of paychecks. That could mean real hardship. Some actually may have trouble covering their bills.

He also questions about the Guv granting large pay raises to his recent appointees. Doesn't seem quite fair, does it ? Do as I say, not as I do.

Joe takes issue with the so-called "progressive" nature of the pay-cut.

" But I don't think I'm going out on a limb by saying a 1 percent cut has a more significant real impact on people making $30,000 a year than those making more than $100,000. We sometimes hear how difficult it is to attract and keep upper-level management types in state government unless we're willing to pay them. Last year, we also were treated to the argument that unless we cut taxes for the wealthiest among us, they would flee Rhode Island like rats from a sinking ship. Hey, here's an idea. Let 'em go. Whatever happened to the idea of community, anyway? Shouldn't those at the very top recognize that when the water's rising, it is those on the lowest decks who are likely to have to start treading water first?"

I publicly stated that I would support getting rid of the tax break for the wealthiest. It's just plain stupid when the state is facing such large deficeits. And where is the follow-up legislation overseeing that the tax break actually delivers what it says it will? There are no studies proving such policies actually work, and the info that I've read indicates the opposite. Remember, every time that a tax break is given, somebody has to pay for the lost income. Guess who that would be?

"And this doesn't even touch on the question of how this would impact union contracts - and future negotiations. Even if the General Assembly doesn't go along with Carcieri's plan, will unions be forced to include provisions in future contracts protecting the raises they get in those negotiations? A contract is a legal handshake. Carcieri is apparently now saying to unions, 'Sorry, I had my fingers crossed.'

"If the governor wanted to exert real leadership, he would get his department directors into a room and tell them they weren't getting any pay raise next year. Then he could look union leaders in the eye when he asked them to take one for the team."

You tell 'em, Joe. And we elected this Guv for 4 more years. Why? He has yet to submit to the Lege a budget plan which is actually workable. Every year he counts on one-time fixes or Unions agreeing to negate their contracts & take less. Smart enough politically, though. He then leaves it up to the part-time Lege to take any political fall-out with the real work of budgeting. The Guv is all talk with little action. Not much imagination here. It's all about public image.

The link is only good for a week.