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Bright Today Educational Freedom Scholarships To Counter Collective Bargaining Inequities

At a cost of approximately $888 per year for each of Rhode Island’s one-million or so residents, a typical family of four is paying over $3500 annually to support the extravagant compensation programs for government workers, while the basic needs of their own families are being ignored by politicians.

Beyond these extreme financial costs, there may be an even more corrosive impact from this kind of political cronyism.

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A Strange Disagreement Over No-Bid Slot Deal

It’s strange to see the company with which the State of Rhode Island contracts to operate its state-run casinos objecting via a public-opinion campaign to the proposed contract for its electronic gambling machines:

If passed by lawmakers as proposed by Raimondo, the Lottery would be required to get 85 percent of its 5,000-plus electronic gambling machines from IGT, even though state law currently caps the number at 50 percent. The company would potentially get a bigger slice of the revenue pie.

And, as Twin River sees it, Rhode Island would lose the opportunity that other states — including Massachusetts — had to extract better deals from IGT by putting their contracts out to bid.

“We think R.I. taxpayers should be terrified by this deal,” Marc Crisafulli, the executive vice president of Twin River Worldwide Holdings — and president of the company’s Rhode Island casino operations — told The Journal on Friday as the opposition campaign was about to launch.

His argument: There’s a potential $10 billion in state gambling revenue riding “on the belief that the governor’s office did this 20-year secret deal entirely correctly. That’s a pretty big leap of faith when you consider the lack of process, the absence of any competition, the rushed nature of the deal … and the fact that the deal doesn’t seem to make any business sense. There’s no reason to do it now. The terms are very bad. … It undermines competition.”

A key point explained later in the article is that IGT’s machines are apparently the worst performers in terms of which games actually attract customers.   IGT machines average $258 per day, while machines by Everi average $303 and those by Scientific Games average $401.

I expect that there are considerations that don’t come across in the article, but from a distance, this looks like a classic example of RI’s way of doing business.  Why not seek maximum flexibility?  Why not give the people actually operating the casino more of a say in what it provides to customers?

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Rhode Island’s Politicians Are Failing

For too long, the political class has failed the people of our state. At $888 per year for each of Rhode Island’s one million residents, a family of four is paying over $3,500 annually for excessive compensation deals for government workers, while the basic needs of their own families are being ignored by politicians.

With almost two-thirds of these excessive costs being heaped upon municipal taxpayers, our recent Public Union Excesses report further estimates that property taxes could be reduced by 25% if more reasonable, market-based collective bargaining agreements were negotiated.

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What If Nobody Noticed the Governor’s Absence?

John DePetro points something out that one would think would be more widely mentioned:

Governor Raimondo made a loud statement by becoming the first Rhode Island Governor to blow off the Bristol July 4, Parade. Sources say the state congressional delegation were shocked Raimondo chose to skip the country’s longest running parade …

Parade organizers usually have to police the number of politicians that want to be part of the parade, and were upset Raimondo skipped it. Raimondo marched last year along with her son while gearing up for her November reelection. One parade source mentioned that even Gov. Linc Chafee always marched in Bristol despite his low poll numbers.

I’m not sure how John verified that no governor has ever missed the parade, but nonetheless, it seems notable that this one did.  It also seems notable how little remarked the absence was.  Even the state’s leading weekend political wrap-ups don’t take note.

Ordinarily, Ted Nesi’s “Nesi’s Notes” and Ian Donnis’s “TGIF” columns pick up small details of political relevance that might not have fit or been justified for full columns, and neither mentions this.  I’ve searched the local sites and, while I may have missed something, I don’t see the missing governor story anywhere.  Perhaps the Providence Journal’s “Political Scene” will cover it on Monday.

During the election, last year, the governor released a slick campaign video promoting her presence.

It’s fascinating what gets covered and what doesn’t.  While I wouldn’t go so far as to assert bias — Who knows what goes into any particular writer’s coverage decisions on a holiday weekend? — the topic is a good reminder of the leverage of the news media to shape people’s understanding of what’s going on and what’s important.

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Public-Sector Labor Legislation and the Law of Unintended Consequences

While we must be wary of giving credit-rating agencies the power to dictate the legislation of our elected representatives, Rhode Islanders should contemplate the significance of this development, which Katherine Gregg reports in the Providence Journal:

A warning from one of the nation’s largest credit-rating agencies, Moody’s Investors Service, has revived the debate over the union-backed continuing-contract legislation that Gov. Gina Raimondo signed last month over the objections of city and town leaders.

The new continuing-contract law indefinitely locks in wages and benefits in expired public-employee contracts. The teacher union lobbyists who took the lead in pushing the bill said it was aimed at preventing cities and towns from unilaterally slashing pay or making employees pay more for their health insurance during deadlocked negotiations.

“The law has the potential to provide collective bargaining units with advantages in negotiations,’’ Moody’s public-finance division wrote in a special report out Thursday that echoed one of the biggest concerns raised by Rhode Island mayors and town administrators.

Moody’s worries that the law may be “a significant impediment to local governments’ ability to negotiate labor contracts,” and as a local elected official participating in negotiations, I can confirm that to be the case.  It isn’t just a matter of unions’ refusing to make concessions that help government agencies balance their budgets.

The legislation — and even just the fact of its passage, along with the firefighter overtime bill — is already shutting off areas of discussion.  A municipality and union trying to balance current expenses with employees’ long-term interests can’t trust that the state won’t change the rules out from under them.  Even in a situation when the current members of a particular union have long demonstrated a desire to work cooperatively with management, decision-makers can’t consider only that relationship, but must worry about the unknowns of what future union members might do and how union-friendly legislators might change the rules on their behalf.

As with so much in Rhode Island government, the legislature and governor have demonstrated that they don’t take the broad, long-term effects of their actions into consideration.  One imagines that if they were ever to acknowledge the law of unintended consequences, they’d move swiftly to pass legislation repealing it.

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Help Spread the Word About the Cost of Government Unions

Wow, has our report shaken up the status quo! We have done the research, and we have connected the dots. The number one driver of the Ocean State’s declining population and jobs numbers – the high property taxes we all pay – can now be directly connected to the excessive costs of government, as mandated by government union collective bargaining agreements.

Now, we are asking your support to help us spread the word.

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Political Monday with John DePetro: Labor and Abortion in Rhode Island

My weekly call-in on John DePetro’s WNRI 1380 AM/95.1 FM show, this week, was about the likely future of legislation supporting organized labor and promoting abortion, as well as the governor’s chances of spinning her performance for state and national consumption.

Open post for full audio.

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Rhode Island’s Political Leaders Are Failing on Their Promise to Help Average Families

At $888 per year for each of Rhode Island’s 1 million residents, a family of four is paying over $3,500 annually for excessive compensation deals for government workers, while the basic needs of their own families are being ignored by politicians.

With almost two-thirds of these excessive costs being heaped upon municipal taxpayers, the report further estimates that property taxes could be reduced by 25% if more reasonable, market-based collective bargaining agreements were negotiated.

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How Much Union Members Are Paid, And How Much Taxpayers Can Afford

With the third highest property taxes in the country, a major encumbrance within an overall anti-taxpayer and anti-business climate that has dropped Rhode Island into bottom-10 rankings in a number of critical national indexes, the excessive costs of collectively bargained government services can be directly linked to this statewide problem.

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Seeing RI Policy Through a National Lens

Being so enmeshed in Rhode Island policy and politics, while also following national news and commentary, I always find it to be like a crossing of the streams when the state becomes part of the national narrative.  Here’s Rhode Island’s entry into the national conversation about “free” college, via a Grace Gottschling report on CampusReform, under the headline, “RI Gov. pushes for ‘free’ college… with $200 million deficit”:

All graduating high school students, regardless of family income, are eligible for RI Promise and non-citizen residents are also eligible. It is unclear if this proposed expansion to include Rhode Island College, the four-year state school, would also allow non-citizen residents to be eligible. According to the RI Promise website, individuals are eligible if they are Rhode Island residents and qualify for in-state tuition. Rhode Island is one of two states in the nation that allows individual college Boards of Regents to decide whether to offer in-state tuition to illegal immigrants.

Campus Reform reached out to the governor’s office to confirm whether illegal immigrants would be eligible for free, four-year college under the proposed expansion, but did not hear back in time for publication.

Sometimes it renews one’s sense of the insanity of Rhode Island governance to presumptively see it through the eyes of those who live elsewhere.  Perhaps increased coverage by the Boston Globe will mean more RI-story pickups at lower-tier publications like CampusReform.

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Rhode Island Is Losing The Competition Between States – Look for Major Report by Center

Although the state’s rank stayed the same, this month was not a good month for the state on the Center’s Jobs & Opportunity Index. Rhode Island remains last in New England at 47th place in the country. Employment was down another 521 people from the first-reported number for February, and the labor force dropped 1,234.

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The Employment Situation In Rhode Island Is Getting Worse – Bucking National Trend

Happy Easter from everyone at the Center to you and your family! We hope you had a great holiday weekend.

We wish we had better news to deliver. Unfortunately, the employment situation in Rhode Island is getting worse, bucking the national trend. While state politicians crow each year about not implementing broad new taxes, the unfortunate truth is that by nickle-and-diming residents and by not implementing aggressive reforms Rhode Island will continue to lose ground, nationally.

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Who Is Working For You? New Major Report Coming Soon From The Center

Who does the Rhode Island General Assembly really work for? Too often, the people of our state are left voiceless as special interest dominate the conversation. Recently, the Ocean State Current broke a major story that ignited media coverage across the state. In H5662 and Whom Rhode Island Representatives Represent, Research Director Justin Katz, uncovers a key admission from the political class.

During the March 11th Tiverton Town Council meeting, a member of the General Assembly admitted that he put forward the bill at the request of Speaker of the House, without regard to the cost to the town he represents for the state firefighters union.

Don’t wait, you can catch the video on the Current by clicking the link here. You can also find the followup here.

In the coming weeks, the Center will be releasing a major report on the cost of collective bargaining in the Ocean State. This will be the longest and most in-depth research project the Center has ever undertaken on any topic. We invite you to be on the lookout for this critical report.

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Admissions Scandal Is So Very Rhode Island

I’ve got an op-ed in today’s Washington Times, about Rhode Island’s own connection with the college-entrance bribery scandal:

When Rhode Islanders heard that the women’s tennis coach of the state’s public university had been arrested in connection with the national bribery for admission scandal, many must have said, “Wait, what?” Students can get an excellent education at the University of Rhode Island, and it’s certainly an affordable option, but it isn’t exactly an institution for which the nation’s rich and famous would have to pay the sort of premium that might attract the FBI’s attention.

When they learned the details, locals’ reaction was probably something more like, “How very Rhode Island.”

This paragraph is probably the key takeaway for Rhode Islanders:

Rhode Island’s leaders are like the parents who’ve bribed their children’s way into institutions of higher education that were well beyond their merit. Both cases exhibit an implicit insecurity and a desire for people under their care or authority to be something they’re not. In contrast, the initial questions that political leaders and parents ask should be: Who are you really, and how can you achieve your full potential, being who you are? With that more-human perspective as the starting point, parents might not set their children up for embarrassing failure (or criminal prosecution).

Read the whole thing, as they say.

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Truck Tolls: Plaintiffs Appeal Ruling to Dismiss; Do Not Accede to Moving the Fight to State Court

On March 19, the federal district court in Providence dismissed the American Trucking Associations’ lawsuit against Rhode Island’s truck-only tolls, heeding the State of Rhode Island’s legal argument that their truck-only tolls are not a federal but a state matter and within the state’s purview to assess because they are actually taxes. (Wait, what?? Since when? From the beginning and all through the toll battle, Governor Gina Raimondo and state leaders repeatedly told us that tolls are a “fee”, a “user fee“, an apple – anything but a tax.)

At that point, the ATA had two choices: file the suit in state court or move to keep the suit at the federal level by appealing the decision. They just issued a statement indicating that they have chosen the latter course, stating, in part

Yesterday, the American Trucking Associations, along with three motor carriers representing the industry, appealed last week’s decision by the federal district court in Rhode Island to dismiss their challenge to Rhode Island’s RhodeWorks truck-only toll scheme, on procedural grounds.

In its challenge, ATA contends that Rhode Island’s truck-only toll scheme is unconstitutional because it discriminates against interstate trucking companies and impedes the flow of interstate commerce. In its March 19, 2019 decision dismissing the case, the district court did not address the merits of that constitutional claim. Instead, it held only that ATA’s challenge could not proceed in federal court.

ATA President and CEO Chris Spear went on to underscore, “…we look forward to establishing the unconstitutionality of Rhode Island’s discriminatory tolls on the merits.”

[Monique has been a contributor to the Ocean State Current and Anchor Rising for over ten years, was volunteer spokesperson for the citizens advocacy anti-toll group StopTollsRI.com for three+ years and began working for the Rhode Island Trucking Association as a staff member in September of 2017.]

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Governor Seeks to Punish Employers Via Proposed Medicaid Tax

Businesses should be applauded for hiring those most in need of work…not punished with more taxes, and certainly not made out to be the bad guy. It is misguided to think that if employees are not covered by their employer’s insurance plan, full or part time, and instead are enrolled in Medicaid, then the business should be punished.

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