Rhode Island Policy Reporter

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A look at the lousy situation Rhode Island is in, how we got here, and how we might be able to get out.

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RIPR is a (paper) newsletter and a weekly column appearing in ten of Rhode Island's finer newspapers. The goal is to look at local, state and federal policy issues that affect life here in the Ocean State, concentrating on action, not intentions or talk.

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whole site RIPR back issues

Available Back Issues:

  • Aug 09 (38) - How your government's economic policies have worked against you. What a fake nineteenth century nun can teach us about the tea party protests.
  • Jun 09 (37) - Statistics of optimism, the real cost of your government. Judith Reilly on renewable tax credits. Review of Akerlof and Shiller on behavioral economics.
  • Apr 09 (36) - Cap and trade, the truth behind the card check controversy, review of Governor's tax policy workgroup final report.
  • Feb 09 (35) - The many varieties of market failures, and what classic economics has to say about them, review of Nixonland by Rick Perlstein.
  • Dec 08 (34) - Can "Housing First" end homelessness? The perils of TIF. Review of You Can't Be President by John MacArthur.
  • Oct 08 (33) - Wage stagnation, financial innovation and deregulation: creating the financial crisis, the political rhetoric of the Medicaid waiver.
  • Jul 08 (32) - Where has the money gone? Could suburban sprawl be part of our fiscal problem? Review of Bad Money by Kevin Phillips, news trivia or trivial news.
  • Apr 08 (31) - Understanding homelessness in RI, by Eric Hirsch, market segmentation and the housing market, the economics of irrationality.
  • Feb 08 (30) - IRS migration data, and what it says about RI, a close look at "entitlements", historic credit taxonomy, an investment banking sub-primer.
  • Dec 07 (29) - A look at the state's underinsured, economic geography with IRS data.
  • Oct 07 (28) - Choosing the most expensive ways to fight crime, bait and switch tax cuts, review of Against Prediction, about the perils of using statistics to fight crime.
  • Aug 07 (27) - Sub-prime mortgages fall heaviest on some neighborhoods, biotech patents in decline, no photo IDs for voting, review of Al Gore's Against Reason
  • Jun 07 (26) - Education funding, budget secrecy, book review of Boomsday and the Social Security Trustees' Report
  • May 07 (25) - Municipal finance: could citizen mobility cause high property taxes? What some Depression-era economists had to say on investment, and why it's relevant today, again.
  • Mar 07 (24) - The state budget disaster and how we got here. Structural deficit, health care, borrowing, unfunded liabilities, the works.
  • Jan 07 (23) - The impact of real estate speculation on housing prices, reshaping the electoral college. Book review of Blocking the Courthouse Door on tort "reform."
  • Dec 06 (22) - State deficit: What's so responsible about this? DOT bonding madness, Quonset, again, Massachusetts budget comparison.
  • Oct 06 (21) - Book review: Out of Iraq by Geo. McGovern and William Polk, New rules about supervisors undercut unions, New Hampshire comparisons, and November referenda guide.
  • Aug 06 (20) - Measuring teacher quality, anti-planning referenda and the conspiracy to promote them, affordable housing in the suburbs, union elections v. card checks.
  • Jun 06 (19) - Education report, Do tax cut really shrink government?, Casinos and constitutions, State historic tax credit: who uses it.
  • May 06 (18) - Distribution analysis of property taxes by town, critique of RIEDC statistics, how to reform health care, and how not to.
  • Mar 06 (17) - Critique of commonly used statistics: RI/MA rich people disparity, median income, etc. Our economic dependence on high health care spending. Review of Crashing the Gate
  • Feb 06 (16) - Unnecessary accounting changes mean disaster ahead for state and towns, reforming property tax assessment, random state budget notes.
  • Jan 06 (15) - Educational equity, estimating the amount of real estate speculation in Rhode Island, interview with Thom Deller, Providence's chief planner.
  • Nov 05 (14) - The distribution of affordable houses and people who need them, a look at RI's affordable housing laws.
  • Sep 05 (13) - A solution to pension strife, review of J.K. Galbraith biography and why we should care.
  • Jul 05 (12) - Kelo v. New London: Eminent Domain, and what's between the lines in New London.
  • Jun 05 (11) - Teacher salaries, Veterinarian salaries and the minimum wage. Book review: Confessions of an Economic Hit Man
  • Apr 05 (10) - Choosing a crisis: Tax fairness and school funding, suggestions for reform. Book review: business location and tax incentives.
  • Feb 05 (9) - State and teacher pension costs kept artificially high. Miscellaneous tax suggestions for balancing the state budget.
  • Dec 04 (8) - Welfare applications and the iconography of welfare department logos. The reality of the Social Security trust fund.
  • Oct 04 (7) - RIPTA and DOT, who's really in crisis?
  • Aug 04 (6) - MTBE and well pollution, Mathematical problems with property taxes
  • May 04 (5) - A look at food-safety issues: mad cows, genetic engineering, disappearing farmland.
  • Mar 04 (4) - FY05 RI State Budget Critique.
  • Feb 04 (3) - A close look at the Blue Cross of RI annual statement.
  • Oct 03 (2) - Taxing matters, a historical overview of tax burdens in Rhode Island
  • Oct 03 Appendix - Methodology notes and sources for October issue
  • Apr 03 (1) - FY04 RI State Budget critique
Issues are issued in paper. They are archived irregularly here.

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Creative Commons License Tom Sgouros

Sat, 27 Dec 2008

A Standard of Need

How much does it cost to live in Rhode Island? That's a hard question to answer, so here's another: how much do you have to earn so that you're not poor in Rhode Island?

Since it was first developed (by Mollie Orshansky, a researcher at the Social Security Administration, in 1963), the federal poverty level has been controversial, subject to misinterpretation and manipulation. Originally based on typical food budgets, the poverty level has crept up with food prices over the years, but not with the changes in the way we spend money, leaving it a poor measure of being poor.

See more ...

14:09 - 27 Dec 2008 [/y8/cols] link

Sat, 20 Dec 2008

Stimulating Conversation

I got a press release last week from the Governor's office. It seems that he's organized what they're calling a small business stimulus package. Well that's the kind of thing we need right now, so I clicked right over and looked for the details.

Sadly, what was on offer was something else entirely: a package of measures intended to make it more likely that Rhode Island businesses who need credit will get it. Apparently the Governor's office organized a bunch of local banks to pledge specific dollar amounts in local business credit and a variety of other ways to get credit to small businesses. This is a good thing, and I'm glad it's happening. The measures, all told, are cheap ways to use the government's power to get things to happen. Credit is the life blood of many businesses, and current events in the financial markets have jeopardized it, even for businesses in no danger of default.

But what of this word, "stimulus?" I'm afraid it's become a little overused, sort of cheapened by wide use this year. What is stimulus?

See more ...

15:57 - 20 Dec 2008 [/y8/cols] link

Sun, 14 Dec 2008

More taxing matters

Last week the Governor's "Blue-Ribbon Panel on Transportation Funding" issued its draft report about how we're supposed to pay for rebuilding our roads and bridges. The report says we need $639 million a year to rebuild our roads and bridges and to put RIPTA on a solid footing over the next ten years. This is about $285 million more than is going to come from the federal government or the existing array of taxes. This is a lot of money, even in these days of hundred-billion-dollar bailouts. It's enough dollar bills to blanket our sections of I-95 and 295 with them, including the breakdown lanes and bridge abutments.

The report isn't shy about revenue, which is a refreshing change -- not because I welcome paying more money, but because I welcome honesty from my public officials. It suggests a variety of tolls, taxes and fees to pay for the maintenance and reconstruction of what we've got. More about them in a moment.

The report recommendations are separated into the more frugal "Scenario 1" and the more expensive "Scenario 2". I gather that the intent is that we find some happy compromise between the two, but as I perused the report and its findings, I found it hard to imagine finding contentment anywhere between these two.

See more ...

15:01 - 14 Dec 2008 [/y8/cols] link

Sat, 06 Dec 2008

Issue 34 out

Missed today's mail pickup, so it will be in Monday's.

  • Housing First, a new approach to homelessness (that appears to be working), by Eric Hirsch
  • A look at the proposed ALCO TIF deal, by Judith Reilly
  • Book review: You Can't Be President: The Outrageous Barriers to Democracy in America by John MacArthur

Didn't you mean to subscribe already?

18:30 - 06 Dec 2008 [/y8/de] link

Affordable housing is still a problem

I was looking over some data about homelessness last week. It seems that the number of homeless people using shelters from July 2006 to June 2007 was about the same as the year, before, which seems like good news only until you compare it to the years before that. Shelter nights in 2006-2007 were up over 70% from 2000. The most recent year's data is still being compiled, but with unemployment up and rents not down, there's no obvious reason to think things have improved.

Homelessness is a complicated thing, with many reasons behind it, but high rents are a principal cause. Right now, the median rent for a one-bedroom apartment is about four times what a disabled person receiving Social Security (SSI) support receives. Sure, those people aren't necessarily shopping for median apartments, but show me the units that rent for $200 a month, which is about what they can afford. And that isn't the only problem.

See more ...

18:26 - 06 Dec 2008 [/y8/cols] link

Mon, 01 Dec 2008

The Jevons Paradox

Via a friend, here's a provocative look at the Jevons paradox. What's that? It's the propensity for the economy to use more of a resource once the consumption of that resource is made more efficient. For example, when James Watt made steam engines more efficient, consumption of coal in 19th century Britain went up, not down, because the efficiency gains were offset by increased use. To draw out a comparison that should be obvious, there is no real reason to expect that the development of green technologies alone will inevitably lead to a cleaner and cooler planet.

Along with the Jevons paradox, there is this other economics sucker bet that says that long-term the price of oil is not going to go up. That is, the history of pretty much every commodity out there is that long-term, the price declines. Now oil plays such a central part in the economy that it might be the first commodity to break the rule, so I wouldn't go too far out on a limb with this, but what it tells me is that the people who say our salvation will be that peak oil will mean a rising price of oil which then provokes increasing use of green technologies which will then reduce warming and pollution are probably wrong in multiple ways.

We're not going to get a cooler planet without green technology, but we're also not going to get it if we rely only on technology to save us.

09:17 - 01 Dec 2008 [/y8/de] link

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