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- 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
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- Aug 07 (27) - Sub-prime mortgages
fall heaviest on some neighborhoods, biotech patents in decline, no photo
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What some Depression-era economists had to say on investment, and why
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- Jan 07 (23) - The impact of real
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Book review of Blocking the Courthouse Door on tort "reform."
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Our economic dependence on high health care spending. Review of
Crashing the Gate
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accounting changes mean disaster ahead for state and towns, reforming
property tax assessment, random state budget notes.
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interview with Thom Deller, Providence's chief planner.
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- Oct 04 (7) - RIPTA and DOT, who's really in crisis?
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- Oct 03 (2) - Taxing matters, a historical overview of tax burdens in Rhode Island
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- Apr 03 (1) - FY04 RI State Budget critique
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Responsibility:
Tom Sgouros
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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]
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