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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Budget Demystification!
Fiscal Derring-Do!
Economic Jiggery-Pokery!

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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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    Rhode Island Policy Reporter
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    Providence, RI 02903

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Creative Commons License Tom Sgouros

Tue, 28 Apr 2009

RI Budget Buzzword Bingo!

Fun for the whole family! Click on the card for details!

10:35 - 28 Apr 2009 [/y9/ap] link

Sat, 25 Apr 2009

Good news from the front, sort of

The annual fact book is out from Rhode Island Kids Count. This is sort of an almanac of child welfare, and covers everything from the number of kids in day care to the number of homeless children to the number who drop out from high school. (You can get the book yourself at rikidscount.org.) This week I'd like to focus on some of the good news, sort of.

Public school test scores are up. Did you know that? Fourth and eighth-grade reading and math scores are up in the last few years, both by the NECAP (RI, NH, VT) and the NAEP (national) tests. So celebrate!

In a way this is not terribly surprising. Education policy in our state (and nation) has become so focused on test test test TEST! that it would be shocking if there were not some positive result. I don't think many people without children in the schools are really aware of how many tests there are, and how much time is wasted on them. Gathering good data is important, and it's how public enterprises should be evaluated, but entire weeks of the school year are lost to testing, which is plainly ridiculous. Honestly, it's little more than a symptom of the mass hysteria about public education we suffer, and I and my children are more than ready for that ol' pendulum to swing back the other way a little bit.

See more ...

07:40 - 25 Apr 2009 [/y9/cols] link

Thu, 23 Apr 2009

Issue 36!

Issue 36 of the Rhode Island Policy Reporter is out:

  • A review of "cap and trade," the plan to control global carbon dioxide emissions. Did you know we have lots of experience with plans like this? Some lessons from that experience.
  • A closer look at the controversy over EFCA and secret ballot union elections. "Card-check" is not the provision large employers find most alarming, just the issue that polls better.
  • Book review of the final report of the Governor's blue-ribbon commission on tax reform. Summary: hackneyed plot, but interesting conflict.

Didn't you mean to subscribe already? Subscription details here.

08:10 - 23 Apr 2009 [/y9/ap] link

Wed, 22 Apr 2009

Mail bag

We get mail:

Dear RI Policy Reporter

I was at the "Tea Party" you wrote about on April 15th. I had a Giant poster of a Tea cup, labeled "Iraq - One big cup of tea. Stop big spending! $660 billion of our tax money spent." Funny thing is I was not made very welcome and had -"support the troops" and other comments spoken or occasionally shouted at me - the most disturbing one was an older man, well past the age of military service that shouted that I "should be ashamed of myself?" I am confused, I though I was protesting big wasteful spending of tax money handed out to the politically favored. Were did I go wrong? Help me RI Policy Reporter.

Confused in Providence

Some people are just trouble makers.

08:32 - 22 Apr 2009 [/y9/ap] link

Sun, 19 Apr 2009

Boston Tea Party a protest against corporate tax cuts

A funny piece points out that the East India Company was granted a huge tax break that threatened the livelihood of anyone in America who sold tea and that this was the real background to the tea party. Puts some of last week's tea-related festivities in perspective.

00:35 - 19 Apr 2009 [/y9/ap] link

Overrides

Here's a record of successful Prop 2½ override votes. It's an interesting list. Apparently summer communities do this pretty frequently, which is not terribly surprising. But some of the others aren't obvious candidates.

00:26 - 19 Apr 2009 [/y9/ap] link

Sat, 18 Apr 2009

Of taxes and tea bags

Last week was April 15, tax day. Celebrants gathered at the statehouse to applaud all the wonderful things your state and local governments do for you: pave your roads; educate your children; arrest, try and imprison criminals; put out fires; and keep poor people from dying in the streets. Because they are activists, they have taken the time to learn about some of the things your government does for you that don't always get a lot of attention: police insurance companies; deliver (and inspect) drinking water; maintain sewers; monitor beaches for water pollution; register vehicle and land titles; create and enforce land-use plans; provide care for long-term disabled people; run bus and train service; and much more.

Oh, sorry. Well a boy can dream, can't he? Actually, as anyone reading this well knows, the activists were at the statehouse yesterday not to applaud any of that, but to complain they wish it was cheaper. They brought tea bags with them, a cute touch meant to remind us of Sam Adams. The mystery, of course, is that they think there exist people who disagree. For example, I don't.

See more ...

17:44 - 18 Apr 2009 [/y9/cols] link

Sat, 11 Apr 2009

Who's making hard choices?

While debating the state budget last week, Senate Majority Leader Daniel Connors (D-Cumberland,Lincoln) said the budget "doesn't represent the hard choices we're going to have to make." He was apparently referring to the fact that the budget didn't cut enough. You hear this kind of talk about "hard choices" all the time. As if there's anything hard about sticking it to poor people and cities.

What's hard about it? Suburban legislators like Connors routinely get elected and re-elected by mouthing platitudes about hard choices, tsking piously about the problems of our cities, and by promising to get tough on unions. Legislators who vote for these things still get invited to good parties. They can still raise money for their re-elections and no one throws eggs at them when they speak in public. Life is good.

What's more, they routinely follow through on these promises, this year stripping cities and towns not only of the state aid promised them last June, but also most of the stimulus money promised by Congress and President Obama. In the last few years, the pensions and health benefits for state employees have been cut, teacher unions all across the state have given back health benefits, health care for poor people has been trimmed and cut and pruned. Did you know that the monthly cash benefit for welfare recipients is the same today as it was in 1989?

What provokes people to claim choices are hard is that occasionally they realize these policies may be popular, but are also shortsighted and, well, stupid.

See more ...

15:07 - 11 Apr 2009 [/y9/cols] link

The NCSL mistake rears its ugly head

In 2007, the National Conference of State Legislators made a terrible mistake about RI's budget, calling a tax that had been on the books for a dozen years a "$70 million tax increase." They were wrong, but the error lives on, most recently in the RI section of this document, brought to my attention by the organizers of the tea-bag rebellion business.

You can read the original column, or the followup regarding NCSL's use of copyright laws to prevent me from showing their errors to the reading public, such as it is.

13:32 - 11 Apr 2009 [/y9/ap] link

Sat, 04 Apr 2009

Keep Coastway Credit Union small: Vote NO!

Coastway Credit Union, based in Cranston, but with several branches around the state, is one of Rhode Island's unsung successes. A modest-sized community credit union with about $300 million in assets, it provides a good deal in bank services to its members. I haven't managed to see detailed financial reports, but from the accounts I have seen, they are a solid, well-run institution. This month they are asking their members' permission to convert from a credit union into a mutual bank. They are a credit to us all, and that's why I hope their members vote NO.

Among the first things I had to learn about in my career as a public policy nerd was credit unions. Only those who weren't here won't remember how some high-flying local banks and credit unions managed to bankrupt the meager resources of the local bank "insurance" scheme in 1990. Around a third of the state had money frozen in the collapse, and the economic devastation lasted years. Over the next decade, the state paid around a billion dollars -- an entire extra year's worth of taxes -- to make up for the idiocy of a relatively small number of bankers with ambition.

What else have the marvels of our financial sector done for us? We deregulated banks in the 1970's, savings and loans in the 1980's, insurance companies and commercial banks in the 1990's and investment banks in 2000. What did it get us? Huge bank fees and usurious credit card rates, the savings and loan crisis of the 1980's, the Rhode Island credit union fiasco of 1991, the current global credit meltdown, and more.

See more ...

11:43 - 04 Apr 2009 [/y9/cols] link

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