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RIPR is a (paper) newsletter
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- 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
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Responsibility:
Tom Sgouros
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Tue, 18 Dec 2007
Troubled bridges over water
[Appeared last week in the Woonsocket Call, the Pawtucket Times and
other fine RIMG papers.]
An interesting fall: One week we open a stylish new bridge, and the
next week, one of the most important bridges in the state is found to
be unsafe for anything as heavy as, say, a truck. The Department of
Transportation says they can't afford to fix the I-95 bridge in
Pawtucket any time soon. But it would be cheap to build in a slightly
greater upslope on either side of the bridge. That way, you can gun
your engine as you approach the bridge, and soar across the weakened
span without having to worry about whether there is more rust or steel
beneath your wheels. Detours are for sissies.
But wait a minute. It can't just be cost, because at the same time
DOT says they can't do anything about the Pawtucket Bridge, they just
finished a new bridge in Providence and they're about to begin
construction on a replacement for the Sakonnet River Bridge. They
have money for new construction, but not for repairs?
As usual, we're at the end of a tale that only makes sense when you
begin at the beginning. So here it is: sometime back in the 1970's --
it's a little hard to be precise from the documents I've seen -- the
Assembly and the Governor decided to borrow several million dollars,
not for any specific project, but just to keep the rivers of federal
highway money flowing down the corridors of the state house. The
interstate highways were almost done, and who'd want to dam that
torrent? That money required a state match, and, well, why not borrow
to match it?
Of course borrowed money isn't free, and you do have to pay it back,
with interest. They borrowed it anyway, and simply took the interest
payments out of the maintenance budget, and no one was the wiser.
This created a budget hole, but who would miss a year's worth of
bridge-painting? Besides, it's more fun to ask for a bond issue to
build a bunch of new stuff than it is to admit to the House Finance
chair that you're over budget.
But the next year the budget hole was still there, and the additional
debt service only made it deeper. Unfortunately, no one had the guts
to say this was a problem, that year, or the next, or any year since.
As long as DOT could keep borrowing and new roads keep getting built,
then everyone was happy, even if the maintenance situation got worse
each year. And now the detour signs in Pawtucket tell you how bad it
is.
In fact, the debt problem is so bad that a few years ago, those debt
payments were moved out of DOT's budget and into the Department of
Administration. This was a meaningless accounting change, but again
it avoided the shame of having to admit they were spending way beyond
their means. This coming year, DOT will borrow about $40 million,
just about the same amount they pay in debt service. Does it sound
like using one credit card to pay the minimum balance on another? It
is. Other states don't borrow like we do; they reserve borrowing for
special big projects, not the routine stuff we use it for here.
This is a crazy way to run the state's finances, and I haven't even
gotten to the hundreds of millions in off-books, no-referendum
borrowing of the past three years and the resulting $49 million in
additional debt payments this year. The cost of DOT borrowing is a
major contributor to the disaster of our state budget, but the blame
is shared so widely that no one wants to talk about it because who
could they accuse?
Another legacy of these bad decisions is that we don't fix roads and
bridges; we replace them, since you can get federal money for new
construction, but not maintenance. The old Jamestown Bridge didn't
have the capacity of the new bridge, but its replacement was dictated
by department finances, as much as by anything else. They didn't have
money to do anything else. The current DOT Chief Engineer has already
spoken about "replacing" the Pawtucket bridge. The grand new
I-boondoggle over the Providence River, which will cost us upwards of
$610 million before it's done, was originally proposed as a $150
million alternative to $50 million in bridge repairs. (In what I'm
sure is nothing more than an alarming coincidence, the Sakonnet
River Bridge replacement project is now said to be a $144 million
alternative to $70 million in repairs.)
As the experience of tens of thousands of drivers can already attest,
the I-boondoggle will do just about nothing to improve traffic, but by
the time we count all the debt service, we'll have spent around a
billion dollars on it. That's about one entire year's worth of state
income taxes, in case you're wondering. DOT doesn't want you to think
of that when you're next stuck in traffic there, and that's why
they've paid almost $200,000 to the Providence PR firm, Duffy and
Shanley, whose job it is to make you think about the bridge's stylish
design instead. And it is stylish, isn't it?
The Governor doesn't want you to think about wrong-headed
billion-dollar spending decisions, either. He wants you to ignore
those little details and blame the state budget crisis on welfare
recipients and interpreters on the state payroll. Will we let him?
11:11 - 18 Dec 2007 [/y7/cols]
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