Rhode Island Policy Reporter

RIPR is a (paper) newsletter that looks at local, state and federal policy issues that affect life here in the Ocean State. Each issue focuses on particular policy areas of interest. Future issues will examine controversial aspects of environmental policy, health care, state tax reform, and education spending. The intention is to look at action rather than talk.

RIPR also issues a weekly column about public policy, carried by ten of Rhode Island's finer newspapers. See here for an archive of recent columns.

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Available Back Issues:

  • 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

Mon, 26 Nov 2007

What you didn't know about welfare.

[From the Woonsocket Call and Pawtucket Times, etc.]

The Governor made it clear last week that he wants to include discussions about welfare in the debates over the state budget crisis, again. Fair enough, I suppose. No budget item is sacred. But let's make sure we know the facts first.

How much don't you know about welfare? Like many people you might have heard that Rhode Island is a "welfare magnet," attracting welfare recipients from other states by our lax rules. Did you know that the actual data show exactly the opposite?


Did you also know that the cash benefits to welfare recipients haven't gone up since 1989? How about that about a third of welfare recipients leave the program each year for work? Or that by every measure, the cost of the program has gone down dramatically since 1997, though the savings have been put into child care and other non-cash benefits. In other words, the Department of Human Services' annual report about the "Family Independence Program" (FIP) is a fascinating read, mostly for the contrast between what it shows and what is widely believed. (Don't take my word for it; it's readily available at www.dhs.ri.gov.)

I read the report this morning, and learned that in 1996, 1225 families joined the program when they moved here from other states. In 2006, the number was 721. These data are self-reported, on the welfare application, so perhaps are not terribly reliable. However, there are three reasons to believe them. First, there are no penalties either way, so there is no incentive to lie on the application. Second, the data was collected precisely the same way in 1996 as in 2006. Third, there are no other data on the subject.

What's more, since 2001, more welfare recipients have moved away from Rhode Island each year than new ones arrived. Despite this, you hear this "welfare magnet" thing all the time, on the editorial pages of newspapers, on talk radio, and in speeches by politicians, including Governor Carcieri (an example). But it's not just that the balance of facts don't support it; no facts support it. When I asked him the source of his assertion when he cited the cost of our kindness in a column, Ed Achorn, the Providence Journal columnist, told me only, "I am citing common sense there." But I know of no definition of common sense that implies I'm supposed to believe things uninformed people made up just because they assume them to be true.

Besides, we're not even all that kind. This part of the welfare magnet fiction is only empty self-congratulation. Welfare benefits here are skimpy and the rules restrictive, just like in other states. Even with the non-cash benefits like food stamps and rent vouchers, this is not a program you can use to support a family for long -- and people don't.

In December 2006, there were 10,755 families on welfare (down from 19,000 in 1997) but this is only an end-of-year snapshot. During the year, there were 6,885 families that joined the program and about 7,855 left it. A bit under half of them left because they got a job. The others moved, or were cut off. Also, notice that there were a thousand fewer people getting assistance in 2006 than at the same time in 2005, and this was before the latest round of "welfare reform", enacted last year with the 2007 budget.

As we look forward once again to balancing the budget by denying help to our friends, neighbors and relatives who need it, let's remember the purpose of welfare: it's to help people with children out of a bad situation. It's a program for temporary assistance, and the evidence shows that people use it temporarily. Remember, three quarters of the people who were receiving welfare in December 2005 stopped getting it in the next twelve months.

Here's another widely ignored fact, worth remembering in a week of Thanksgiving. Even for people in the middle of some family crisis, welfare is a choice. This means there's a limit to how restrictive you can make the program if you truly want it to be useful. No one is forced to apply for welfare benefits. That is, you can always eat dog food. And it's fairly dry under most of our bridges. Or you could just decide to stay with the abusive husband. The point of having a program like FIP is to prevent parents and children from having to face situations like these. If the program doesn't prevent that, then what's the point of even pretending to help?

23:08 - 26 Nov 2007 [/y7/cols] link

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