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
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Creative Commons License Tom Sgouros

Tue, 28 Aug 2007

Budgeting For Disaster

[Appeared last week in the RIMG newspapers, including the Woonsocket Call, Pawtucket Times, Kent County Times, and the rest.]

The Senate last week held hearings about some terrible things that happened in some of the state's foster homes. Some families and children were put in awful positions by what appear to have been poor choices by DCYF. But DCYF has been put in an awful position by poor choices made by our elected leaders. When you budget a disaster, should we be surprised when that's what we get?


Every spring the General Assembly debates the state's budget for the coming year, and every spring the House Finance Committee holds hearings on the different state departments. Advocates for the poor show up and beg not to have the services cut that provide crucial help to the state's poorest residents. The pleas fall on deaf ears, the services get cut, and the whole process is as predictable as the lengthening days in June.

This year, new fiscal controls have been put on the Department of Children, Youth and Families. These new restrictions were intended to keep the DCYF budget on a short leash by funding the department only three months at a time. In past years, DCYF has run out of its budget before the fiscal year was over, and to the state budget office and to the legislators of House Finance, this is a sign of irresponsible management. So this year, the DCYF Child Welfare budget was restricted, and the legislature withheld its funding until the end of each quarter. Demanding accountability is what strict fiscal management is all about, no?

Unfortunately, the new changes seem only to mean that DCYF will run out of money when the legislature isn't in session. So no one knows quite what to do. The Governor's staff believes this year's budget took away his authority to shift money over to the department, and is looking to House Finance to explain what ought to be done.

So what's the problem? Is it state workers demanding too much money, or is it state managers mismanaging the department?

Maybe it's neither. According to RI Kids Count, on the day Governor Carcieri was sworn in, in 2003, there were 2,564 children in "out-of-home" placements. This includes kids in foster care, in group homes, in hospitals and with relatives, all under DCYF supervision. At the time, there were 451 people in the department to look after them and the 5,700 other kids who didn't need that kind of service, at least not yet.

Four years later, the Governor is sworn in for his second term, and there are 3,311 children in out-of-home placement, and 6,100 other kids under DCYF supervision. This is a 15% jump just since last year, and a 29% jump since 2003. But the department staff was only up to 454, an increase of 0.7%. The latest addition? According to state budget documents, it was a junior member of the policy staff.

DCYF is not allowed to manage to its budget by only taking the children it can afford to take. In the face of skyrocketing demand for services to protect children whose situations are so bad that they can't stay in their homes, there is no reason to be surprised that the Child Welfare department couldn't stay within its budget. What's surprising is that the Governor and Assembly leadership refused to look beyond the numbers and figure out what was going on. They managed by the numbers and created a catastrophe.

Actually, it's not that surprising. Both the Governor and the Assembly leadership have an interest in maintaining the fiction that rising costs in our state government can only mean poor management. To admit that the state should spend more money on something would be to endanger their tax cuts. The passage of this year's budget saw an income tax cut that will save the top fraction of the top 1% of taxpayers -- half of whom don't even live here -- about $15 million in state taxes. The Assembly also stood by and refused to reinstate the tax on long-term capital gains, giving up another $20-30 million to the wealthiest taxpayers in the state, in the name of improving the state's economy. Economic development is important, but so is helping children who need our help.

While it's important that government be run efficiently, it's not true that costs can be cut year after year with no consequences. The hearings last week were a sign of a disaster no less real than the pictures from the Minneapolis bridge last month. Whether we need protection, or just a bridge that won't fall down, we all depend on our government. If we're going to have one at all, let's have one that's run well, not just one that's run cheap.

11:22 - 28 Aug 2007 [/y7/cols] link

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