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A Well-Planned “Shock” To The System Is, Indeed, Warranted

According to the Rhode Island Family Prosperity Index, “startups aren’t the only thing when it comes to job growth. They’re the only thing.” The only way to incentivize enough start-up activity to make a difference in our state is to create a business climate that is attractive enough to make thousands of entrepreneurs want to invest here. Crony deals for a few dozen companies will not get it done.

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Voters Must Be the Adults in the Process or Idiocy Will Reign

In keeping with my post, yesterday, about the government’s impositions on people who dare to work with others’ hair without a license, Jeff Jacoby highlights, in his Boston Globe column, an exchange between Socialist Senator Bernie Sanders and hair salon owner LaRonda Hunter during the senator’s debate last week with his Republican peer Senator Ted Cruz.

Ms. Hunter wanted to know how she’s supposed to grow her business when the government imposes thresholds for benefits, like health care, that don’t work within her profit margin.  Jacoby:

The exchange could not have been more enlightening. For entrepreneurs like Hunter, a mandate to supply health insurance triggers inescapable, and unignorable, consequences. For Sanders and other defenders of Obamacare, those consequences are irrelevant. They believe in the employer mandate — a belief impervious to facts on the ground.

Lawmakers so often enact far-reaching rules with worthy intentions, but little awareness of how much harm government burdens can cause.

Jacoby goes on to note this classic anecdote about liberal Democrat Senator George McGovern:

After a long career in Congress, former senator George McGovern tried his hand at running a business — a small hotel in Connecticut. “In retrospect,” McGovern wrote after the inn went bankrupt, “I wish I had known more about the hazards and difficulties of such a business. . . . I also wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day.”

Think of all the idiotic (yes, idiotic) legislation being submitted by the likes of the General Assembly’s quintessentially inexperienced Ivy League legislator Aaron Regunberg.  Voters must become the adults in the process, because too many of the politicians and their special-interest-or-ideologue supporters are not capable of playing the role.

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Ah, the General Assembly’s Legislative Grant Program

Here’s a telling little tidbit that slipped through the strainer of Tiverton politics, from a not-online Newport Daily News article by Marcia Pobzeznik on January 30.

Town Council Member John Edwards the Fifth (son of Democrat State Representative John Edwards the Fourth) appears quietly to have planned a beach bonfire for Christmas trees, which left his fellow council members feeling like “the Town Council was the last to know,” per councilor Denise DeMedeiros.  They finally found out when they were called to a special meeting to decide whether to cancel the event because of gusty winds.

Here’s the telling part that makes the anecdote of statewide interest:

Firefighters and a fire engine would have been required at the beach, deMedeiros said, along with a police detail for crowd control.  She asked Edwards if he had considered the costs.

A legislative grant would take care of the costs of the firefighters and the police detail, said Edwards, son of Rep. John “Jay” Edwards, D-Tiverton.

There is no such grant on the House’s list, although it’s dated only through October 1.  The Senate’s list is more up to date and has some grants for Tiverton, but whether or not they’re associated isn’t possible to tell.

Think of the process, here, especially involving the son of the legislator who successfully pushed legislation to make it more difficult for individuals to participate in local politics, creating hurdles for them to jump in the name of “transparency.”  A Town Council member almost pulled off a public event involving town property and the use of town employees without the knowledge of at least some of his fellow councilors, and the whole thing was supposedly going to be funded through a General Assembly handout that, likewise, nobody else had any idea about.

Obviously, given the lack of transparency, there’s no way to know whether this is relevant, but as I’ve written before, the state Ethics Commission would find no problem with a member of the General Assembly pushing to use state taxpayer money to fund a politically helpful event secretly orchestrated by his son because everybody involved is acting in official government capacity.

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Upward Mobility And Prosperity For Ocean State Families

New national research shows that Rhode Island ranked just 48th on the 2016 Family Prosperity Index (FPI). In December 2016, our Center in conjunction with our national partner, the American Conservative Union, issued a 52-page RI Family Prosperity report that highlighted contributing factors to our state’s poor rankings across 57 indexes. Among other discussions, the report suggests that Rhode Island has room to modernize and improve its criminal justice system. Reforms put forth as part of the state’s JRI, and by other organizations can help provide more opportunity for upward mobility and prosperity for Ocean State families.

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Line Item Veto – Please Shoot An E-Mail To Your Elected Officials

The line item veto is one of several good government measures that need to come to Rhode Island. It would impart some – though certainly not excessive – balance between Rhode Island’s executive and legislative branches. (Rhode Island is notorious for a weak executive branch.) Please visit this website to quickly and easily communicate your support to our state elected officials.

More reasons to do so from the blast sent out by Ken Block, who is leading the charge on this, a couple of weeks ago.

The momentum keeps building for getting a line-item veto in RI. 2017 could be the year we get this major reform done – especially if you help.

Governor Raimondo has expressed support for the line-item veto, as has Senate President Paiva-Weed. Pressure, created by people like you sending emails like the one I am asking you to send below, is 100% responsible for putting Rhode Island on the cusp of a major government reform.

Let’s get the job done!

In less than 60 seconds, you can send an email to our elected leaders asking them to give voters a chance to say YES to the line-item veto on the 2018 ballot.

In less than 60 seconds, you can add to the pressure which will certainly yield what we all want – a better functioning government.

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Moira Walsh: Crash-and-Burn? Or Shooting Star?

Walsh successfully ran for and won a RI House seat and subsequently received a glowing write up in The Atlantic for her waitress-fights-the-power story in which she detailed her single-mother, working-mom, working-class blues and activism as a union organizer. Honestly, she is a Progressive’s dream.

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Setting RI Right on Crime

For the RI Center for Freedom & Prosperity, I’ve posted a brief report suggesting reform to Rhode Island criminal justice system, helping families to break the cycle of crime and familial breakdown.  With my interest in how the state government functions to restrict our freedoms and perpetuate a public-sector-first business model, the most important piece is also the one least likely to generate supportive legislation:

… it isn’t surprising Rhode Island has the lowest incarceration rate in the country. It is surprising, however, that the Ocean State’s probation and parole rate is fourth highest. That, in turn, leads to a high rate of recidivism, with 52% of former prisoners re-arrested within three years.

As researchers find to be true with other government programs, Rhode Island’s cost to supervise and provide services to prisoners and parolees is high (over $58,000 per prisoner). One might conclude that the state has an institutional bias against letting go of residents once they fall within its net of supervision.

Criminal justice reform is not only the right thing to do for Rhode Island families, it’s also a good example of the bureaucratic mentality that is strangling our state.  For reforms to be sufficient, they’ll have to begin treating that attitude as the crime that it is.

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Can Lawmakers Become Rhode Island’s Heroes?

Everyone concerned about the well-being of our state’s families should be alarmed by our unacceptable 48th-place ranking on the Family Prosperity Index (FPI). The FPI demonstrates quantitatively the undeniable link between economic and social policy in determining family prosperity. Whether it is criminal justice reform, taxation, or education, if we are to improve our state’s dismal 48th place ranking in overall family prosperity, we must make helping families the focus of our public policy and private advocacy. Lawmakers can become heroes if they can construct policies that actually address the real needs of real families.

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A More Holistic Path To Help Real Rhode Islanders

It is time to challenge the status quo insider mindset and to search for a more holistic path to help real Rhode Islanders improve their quality of life. This week, the Center held a forum at Bryant University that provided an ideal opportunity for community, religious, and political leaders to convene to begin the process. We brought together leaders on both the left and right to discuss the challenging questions, and the strongest voices stood in stark contrast to the corporate tax-credit policies that have been the center-piece of the Raimondo administration’s economic development agenda.

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Another Government-Wall-Street Scheme; Of Course, RI Is In

The Wall Street Journal’s Kirsten Grind raises a red flag over another mortgage-related investment scheme:

About $3.4 billion has been lent so far for residential projects, and industry executives predict the total will double within the next year. That would likely rank PACE loans as the fastest-growing type of financing in the U.S.

As the loans spread, so do problems that echo the subprime mortgage crisis. Plumbers and repairmen essentially function as loan brokers but have scant training and oversight. They often pitch PACE loans to help land contracting jobs and earn referral fees from lenders, according to loan documents and more than two dozen borrowers, industry executives and employees.

The referring contractor gets a cut.  The municipality gets a cut.  And taxpayers will wind up on the hook if things go wrong.

In case you’re wondering, yes, Rhode Island has this.  Democrat Governor Lincoln Chafee signed the legislation into law in 2013, after Democrat Art Handy (Cranston) passed H6019 and a gang of Democrat state senators led by William Conley (East Providence, Pawtucket) passed S0900.  The RI Center for Freedom & Prosperity did include this legislation in the 2013 iteration of the Freedom Index.

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Again: Minimum Wage Increases Are Political Thievery

When I read the Providence Journal headline, “Rhode Island lawmakers propose $10.50 minimum wage,” I can’t help but wonder: Propose to whom?

A group of Rhode Island state lawmakers has proposed raising the state’s hourly minimum wage by 90 cents this summer.

The bill introduced Wednesday proposes increasing the minimum wage to $10.50 on July 1. The current $9.60 minimum took effect a year ago.

The answer, obviously, is that some legislators are proposing it to other legislators, who are no more the business owners who will be forced to foot the bill than are those doing the proposing.  This is an insular, disconnected group debating whether to claim a political reward for spending somebody else’s money.

Rhode Island legislators are the only group in the state empowered to promise people a nearly 10% increase in pay without having to come up with the money, or even to worry whether people lose their jobs over it.  They’re thieves, plain and simple.

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Corporate Welfare – Are We Being Played?

For years, the insiders have conspired to create the cronyism rampant in the Ocean State. In their zeal for headlines, does the political class ever question the value of these corporate welfare deals? Just this week, we saw the results in questions surrounding the Governor’s claims in the Wexford deal. The tone-deaf Brookings report lays the ground work by recommending that we can achieve better results if, instead of taking the arbitrary approach to 38 Studios-style corporate cronyism that has dominated Rhode Island public policy for decades, we take the same approach in a more targeted and strategic manner. Nonsense.

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No More Blind Eye – General Assembly Must End Corporate Welfare Scam

In light of GoLocalProv’s blockbuster expose Friday that the Wexford job creation claim is off by nine hundred, the General Assembly needs to immediately defund all corporate welfare – and request that the Governor claw back much if not all of the taxpayer subsidies currently earmarked for Wexford.

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Rhode Island “Company of the Year” (and State Ward) Already Has a Broken Turbine

Much to the detriment of the state’s rate payers, Deepwater Wind began generating electricity on December 12. Less than three weeks later, one of its five turbines broke (oopsie). As though wind energy isn’t already expensive enough, now we have to add the cost of making repairs thirteen miles out on the ocean. (‘Cause the cost of water and seawater-related repairs is always very reasonable, right, boat owners …?)

It probably was not a coincidence that the company made this embarrassing admission on a day – the Friday before Christmas – sure to glean the absolute minimum amount of public attention.

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Why Go After the Car Tax?

I’ve been meaning to suggest that this doesn’t look like such a great idea:

[Democrat Speaker of the House from Cranston Nicholas] Mattiello says the state’s recent increase in revenue will help.“Our revenues are on the rise,” he said. “They’re $40 or $50 million ahead of our projections just last year. The first year I was elected our revenues were dropping like a lead ball, hundreds of millions of dollars almost overnight, and now we’re getting that revenue back. So it’s that revenue that we get back that we’re going to dedicate to our taxpayers.”

I get that the car tax is an emotional issue for some people, although it has seemed to come under fire mostly for the unfairness of assessments.  But tax policy should not be determined by emotion.

Other taxes have a more negative effect on jobs and the economy.  That means not only that the state would be better off applying its tax-cutting motivation to other taxes, but also that replacing the car tax with other revenue, as Mattiello suggests above, is by itself a job-killing reform.

Additionally, shifting more decisions about tax revenue and the spending thereof to state government reduces the independence of local government, and to the contrary, that’s something of which we need more.

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Disgraced Speaker Fox Fueled the ShapeUp State-Taxpayer Gravytrain

Responding to a question related to my finding that ShapeUp, which made news recently when its new owner, Virgin Pulse, agreed to remain in Rhode Island in exchange for $5.7 million in state-government subsidies, a Rhode Island House spokesman tells me that the Economic Development Corp. (EDC, now the Commerce Corp.) and Dept. of Health weren’t the only government agencies that whet the company’s appetite for taxpayer dollars.

Disgraced and imprisoned former Speaker of the House Gordon Fox, a progressive Providence Democrat, directed $12,000 to ShapeUp through the General Assembly’s controversial legislative grant program.  The first $7,000 installment of that money arrived in 2007, shortly after the non-profit started.  Another $5,000, half in 2010 and half in 2012, flowed the company’s way as it moved toward for-profit status and received its $100,000 EDC handout.

One wonders how much companies that buy Rhode Island start-ups consider the many paths of claiming Rhode Island taxpayer dollars when shopping for acquisitions.

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