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

Fri, 30 Oct 2009

How many towns is the right number?

After years of talk, it seems like initiatives to consolidate municipal services and schools are actually moving, slowly, but perceptibly. The legislature has convened a commission to talk about it, which is interesting, though the kind of thing that only occasionally presages real action.

On the other hand, Senator Frank Ciccone, vice-chair of the Government Oversight committee, says he's going to introduce quite a dramatic bill in January, revoking all the city and town home rule charters in the state and creating five county-wide municipal and school administrations. I'm glad he's doing this, not so much because I agree with him that such a dramatic change is a good idea, but because change will only happen when someone proposes it. His efforts are far more likely to make a positive difference in your life than the commission's.

There are two reasons widely cited for consolidation. Actually, that's not quite true. There's one widely cited, but pretty questionable reason, and another seldom cited, but likely very important reason. They lead to very different conclusions about what needs doing, and I don't expect the commission to reach those conclusions.

See more ...

21:02 - 30 Oct 2009 [/y9/cols] link

Press!

Coverage of the book... Brown Daily Herald.

13:21 - 30 Oct 2009 [/y9/oc] link

Another take on binding arbitration

Read here

The rank and file rejection of the first contract proposal was a huge setback for school reform in Providence. It weakened the administration, helped trigger a decade long cycle of revolving door superintendencies, divided the union, and as the final contract included both a bigger pay raise and fewer concessions in work rules, reinforced the idea that intransigence by the union would be rewarded. Also, the entire conflict triggered a long period of "work to rule" right as a whole range of promising reform initiatives were ramping up.

If Rhode Island had binding arbitration in 2000, everything would have been different. No work to rule, and the orderly adoption of a contract that would have probably closely resembled the original agreement between administration and union leadership. This would have been followed by two more contracts that progressed in an orderly way toward more reasonable work rules, and we'd be working on the fourth in that series right now.

Contrary to conventional wisdom, a look at recent history confirms that binding arbitration would be good for school reform in Rhode Island.

13:04 - 30 Oct 2009 [/y9/oc] link

Fri, 23 Oct 2009

Why are people still losing their homes?

Reports out this month tell us that the foreclosure crisis facing our nation has not even peaked yet. Nationally, one property in every 136 were in some kind of foreclosure proceeding in July, August or September -- 937,840 properties. According to RealtyTrac, a private concern tracking them, foreclosures are up 5% from the spring quarter, and 23% from the same time last year.

The hardest hit places in the country are the places that have boomed the fastest over the past decade: Nevada leads the list with one foreclosed property for every 23. Arizona and California aren't far behind, with 53 in both.

To my great relief, our state appears to be bucking this trend, and foreclosures seem to be declining slightly in Rhode Island. We've seen the rate decline 6.3% since the spring, and about 2.75% since the same time last year. The rate here is still nothing to brag about: one foreclosure for every 290 properties, still high enough to be devastating to many neighborhoods.

In fact, the whole list is dismal, except way down on the bottom, one bright spot: Vermont. Last quarter, while Rhode Island was seeing 1,554 foreclosures, Vermont saw 62. This comes out to about one foreclosure for every 5,023 properties.

See more ...

21:55 - 23 Oct 2009 [/y9/cols] link

Fri, 16 Oct 2009

Book signing!

This coming Friday, October 23, I will give a talk and sign some books at Westerly's Other Tiger bookstore, 90 High Street, Westerly, from 5-7pm. Please come, and more important, tell anyone you know in Westerly. I don't know enough people there, so any help is welcome.

Also, I was on Channel 36's Lively Experiment last night. They re-broadcast it on Sunday at noon, so look for it this Sunday.

18:55 - 16 Oct 2009 [/y9/oc] link

Gambling with our future

I saw Michael Moore's new movie, Capitalism, A Love Story, a week ago. The movie was a little messy, but -- like his other movies -- is filled with interesting stories about our country that you never see on the news. For example, there were the companies run as cooperatives, like an industrial bakery in California and a robotics factory in Wisconsin. In those companies, decisions are made collectively, and both are profitable, despite decent pay for the workers, and relatively modest pay for the executives. There was the sheriff of Cook County, Illinois, announcing that he would no longer evict people because of foreclosure just on the say-so of the banks. (He said he would still evict people for whom the bank actually had the paperwork.)

It's a good movie, partly because it's funny and partly because it's really not that funny. There's a lot of human tragedy portrayed in it, which isn't too surprising, since that kind of thing is pretty much everywhere you look. For example, there's plenty of tragedy to be found in the boarded-up houses in South Providence, not very far from the homeless shelters bursting at the seams. There's tragedy in the way our manufacturing heritage has been systematically dismantled by the very people in charge of it. High wages so often get the blame, but the behavior of the executives who closed profitable factories in order to open more profitable factories elsewhere is routinely disappeared.

America today is a land of contrasts like this, brought to us by free enterprise, and our collective unwillingness to moderate it. Free enterprise is an amazing and efficient way to organize an economy to produce things we all need, but there are good things -- affordable housing, clean air and water, public transit -- it just does not or cannot provide. Of course, it does provides the opportunity for an individual to amass unimaginable wealth, at least in theory, presumably why lots of us put up with the contradictions.

See more ...

18:03 - 16 Oct 2009 [/y9/cols] link

Fri, 09 Oct 2009

Arbiting arbitration

When the legislature comes back into session later this month, rumor has it they may pass a law saying that when teachers and school committees can't come to an agreement through negotiation, they can submit their dispute to arbitrators for settlement. The arbitrator's decision would be legally binding on both the committee and the union, so it's called binding arbitration.

This would be a welcome development to many. Right now, when there is no agreement in a labor dispute like these, things enter a kind of legal limbo, where there are essentially no rules. Thus you have the East Providence school committee declaring that if they simply refuse to negotiate, they can let a contract expire and then ignore it entirely. On the other side of the coin you have the impasse with the Providence firefighters, whose contract terms remain in force until a new contract is signed, according to a clause in their old Cianci-era contract. They therefore have an incentive to stonewall negotiations. (I'm not saying they've done that -- I don't know -- but I am saying the deadlock isn't entirely to their disadvantage.) Neither outcome seems particularly beneficial to me.

See more ...

23:37 - 09 Oct 2009 [/y9/cols] link

Disclosure?

It seems the FTC intends that all bloggers disclose the products and services they get for free.

Seeking guideline clarification, blogger Edward Champion interviewed FTC spokesman Richard Cleland on Monday. In Cleland's view, a blogger who kept a free book that he reviewed on his site would have to disclose this "compensation."

"If there's an expectation that you're going to write a positive review," Cleland told Champion, "then there should be a disclosure."

This is an odd reading of how reviews work. That is, "expectation" is a funny word. "Hope", "chance", "prospect" all seem more apropos. Plus, I don't see newspapers running to mention this in their articles. Why might they be exempt?

But be that as it may, let this note serve as full disclosure to everyone who cares to know that some publishers are generous (perhaps some would say unwise) enough to provide me with free copies of their books to review.

12:07 - 09 Oct 2009 [/y9/oc] link

Mon, 05 Oct 2009

The House By the Side of the Road

by Sam Walter Foss

Let me live in a house by the side of the road,
Where the race of men go by -
The men who are good and the men who are bad,
As good and as bad as I.
I would not sit in the scorner's seat,
Or hurl the cynic's ban;
Let me live in a house by the side of the road
And be a friend to man.

I see from my house by the side of the road,
By the side of the highway of life,
The men who press with the ardor of hope,
The men who are faint with the strife.
But I turn not away from their smiles nor their tears -
Both parts of an infinite plan;
Let me live in my house by the side of the road
And be a friend to man.

I know there are brook-gladdened meadows ahead
And mountains of wearisome height;
And the road passes on through the long afternoon
And stretches away to the night.
But still I rejoice when the travelers rejoice,
And weep with the strangers that moan,
Nor live in my house by the side of the road
Like a man who dwells alone.

Let me live in my house by the side of the road
Where the race of men go by -
They are good, they are bad, they are weak, they are strong,
Wise, foolish - so am I.
Then why should I sit in the scorner's seat
Or hurl the cynic's ban?
Let me live in my house by the side of the road
And be a friend to man.

Foss was born in New Hampshire, but, a graduate of Brown, is interred in Providence's North Burial Ground.

14:15 - 05 Oct 2009 [/y9/oc] link

Fri, 02 Oct 2009

The Real Structural Deficit

As we teeter back and forth between layoffs and no layoffs of state employees, it gets hard to keep track. Last week, the AFSCME Council 94 local presidents who rejected the Governor's offer relented and agreed to put the Governor's offer before their memberships for a vote. To recap, this offer would have some unpaid work days this year and next, but would offer extra vacation days further down the line, or compensation days upon retirement, and it would put off a pay increase. The more controversial part of the proposal involves allowing managers to reassign employees to different state departments where the employees might be represented by a different union.

The AFSCME local members are voting on the proposal this week. While we wait to see how this turns out, I think it's worth looking at part of the "structural deficit" that plagues our budget.

The structural deficit is just the fancy term for the deficit next year (and the years after). It's an acknowledgement that revenues and expenses do not match, despite what we may have done or not done to patch it together for the current year.

Obviously, the structural deficit is due to the decline in tax revenue. I've written before that this decline was first self-inflicted, and then made worse by the tanking economy. But part of the structural deficit that gets no attention is even more important and that's the unwillingness of your leaders to say what, exactly, we are sacrificing. It's sort of a candor deficit.

See more ...

18:09 - 02 Oct 2009 [/y9/cols] link

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