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:

  • 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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Creative Commons License Tom Sgouros

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] link

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