Pressure Builds in Providence… and Everywhere

Last month, I mentioned a complaint by Providence City Councilman Sam Zurier that the city government had finished the year, not with some of its cumulative deficit paid off as planned, but with an even bigger gap.  A chart about midway down this Dan McGowan article on WPRI shows what Zurier meant.  McGowan frames the story mainly in terms of mayoral politics:

Their game of finger-pointing had largely played out behind the scenes until this past weekend, when Elorza’s office claimed Taveras’s final budget “relied on a number of one-time fixes that were unrealistic and did not come to bear,” and Taveras fired back that the new administration “should focus on the choices it has made since taking office” to figure out why the city ran a $5-million deficit last year.

“Running a city like Providence is difficult,” Taveras told WPRI.com. “The choices an administration makes on a daily basis certainly have a significant and immediate impact on city finances and our future.”

Frankly, I’m still not sure what there was in the backgrounds of any of the last three mayors that would lead people to expect them to be able to run a city the size of Providence.  It’s as if voters believe that a mixture of bureaucracy and politics will ensure that a city runs well, leaving them free to vote for mayors based on irrelevant social policies or identity group affiliation.

Ted Nesi tweeted McGowan’s chart with the warning that the city has “zero room for error.”  A recession (or any number of possible calamities or probable economic shifts) will simply overwhelm the city budget.

Providence isn’t alone in this problem.  Our nation has been running on debt for three-quarters of a century, and for at least the past decade, any recovery Rhode Island has experienced has basically been built on dubious assumptions about the future, from pensions to the economy to government wisdom.  We make it from year to year just barely pushing the reckoning off into the future.

This won’t last.  Perhaps next year, perhaps next decade, we’ll all be wondering how we missed the signs.  The only relevant question, though, will be whether the pain and the promise of more will be enough — will be obvious enough — that the need to resolve our philosophical inconsistencies and political superficiality will overwhelm the urge for narrow self preservation.

Want to Build the Local Tax Base? Implement School Choice.

In Vermont, school choice adds up to 16% to home values because freedom is valuable.

Responding to the Incentives of Ideological Regulation in Barrington

ecoRI News reports that some larger chain stores in Barrington are reacting to the town’s ban on disposable plastic shopping bags by searching for the line at which bags are no longer considered disposable:

CVS and Shaw’s are promoting their thicker plastic bags as reusable. Shaw’s currently offers free paper bags and charges 10 cents apiece for the plastic bags. CVS stopped using paper bags altogether and this year shifted to free plastic bags.

Town Council vice president Kate Weymouth claims the thicker checkout bags defy the intent, if not the letter of the ordinance. In an e-mail to supporters of the ban, Weymouth wrote that the town’s ordinance relied on boiler-plate language from other bans across the country.

She wrote that the oil, gas and plastic industries fear losing revenue from the bans, so “they have legally worked around the language of these bans, and in ours specifically, by producing a thicker ply plastic, sticking handles to the top and stamping them with the word ‘reusable.’”

Well, good for them.  If only do-gooder progressives would start learning how incentives work.  Somewhere, in Barrington, a family that would otherwise drive its station wagon home full of thin plastic bags is now driving their SUV home filled with thicker plastic bags.

The council vice president’s response is instructive.  Inasmuch as they are characterized by their faith in government, progressives have a strange reverence for the government’s decrees (at least when those decrees align with their ideology).  The biggest incentive that they may be missing, though, is the incentive to stop taking the law seriously when it becomes too meddling and dictated.

The other day, I described two understandings of government and democracy: one seeing government as a means of relieving citizens of the need to build their lives around protection of their own rights (especially through violence), and the other seeing democracy as a means of making people feel like they have both buy-in and a means of acting peacefully to change the regime when they disagree.  (Digression: Arguably, these were jointly benefits of representative democracy, once, but with the expansion of government and the deterioration of politicians’ willingness to abide by their own laws, the principles are separating.)

The question that Ms. Weymouth should consider is why these companies — or anybody, at this point, really — should care one bit about “the intent” or the spirit of the law.  They don’t feel represented in the government, and they feel the direct burden of its decrees while doubting that the intent will have a real, positive effect on outcomes.

I’ve said it before:  We’ve reached the point, in this country, that one complies with the law simply to stay out of jail, not because the law deserves our respect.

“Requirement” Reconsidered in Relation to Labor Unions

The Providence Journal so liked its PolitiFact about John DePetro’s being wrong on a union requirement for the 195 land that Mark Reynolds went back for another bite via the news department yesterday:

Concerns about the misrepresentation of an economic development opportunity for Rhode Island have prompted the chairman of the 195 Redevelopment Commission to issue a public statement to emphasize that developers who pursue projects on the former Route 195 land are under no obligation to hire union laborers. 

“The 195 Redevelopment Commission does not have and has never had a requirement for developers to hire union approved contractors,” said the commission’s chairman, Joseph Azrack.

Having not done a thorough review of all of the relevant policy and law, I can’t say whether there’s some sly, maybe indirect, way in which DePetro is correct in substance, if not in immediate fact.  I wouldn’t be surprised to find such a catch, but then again, I wouldn’t be surprised not to find it.  The hoops that Rhode Island sets up for businesses and developers are so ridiculous that the addition of required unionization isn’t really necessary, even as it seems obvious that the state might do such a thing.

But then, turn back the newspaper a few pages, and read this article by Linda Borg:

A private emergency medical service claims that its employers, some of them Coventry firefighters, were threatened if the company provided coverage to the Coventry Fire District on an emergency basis.

In a letter by Carol Mansfield, CEO of Coastline Emergency Medical Services, Mansfield wrote, “as a result of deciding to help the residents of Coventry, we have gotten threats of harm to our personnel and equipment by the Union and its members …. The Union is forcing those firefighters [who work for Coastline] in MA and R.I. to resign. As an employer of over 20 employees, I cannot let my firefighter employees to lose their jobs with us…”

A fire district hires firefighters.  Largely because of labor’s big investments in state politicians, the union comes to see those as their jobs, and the organization’s reason for being is to protect those jobs and make them pay as well as possible.  If the people of the district can’t see their value and attempt to rein in the cost, then it would seem that the union wants to make their choice between the high costs and a dangerous lack of services.

My construction career never overlapped with any union workers, but some of my coworkers had had experience with cut power cords and pneumatic tubes and other damaged or missing equipment.  The goal of those incidents, obviously, was to drive up the cost of being a non-union carpenter on a site that the union wanted to claim as its property.

Does the 195 Commission require developers to use union labor (or to increase their costs to match, if not)?  The chairman says not.  But does DePetro’s misstatement (if it was that) really rate on the list of things about which Rhode Islanders must be informed?

So Much Study of a Top-Down Economic Program Already Under Way

There sure are a lot of folks who want to offer Rhode Islanders helpful advice on how they should give government, non-profit, and business leaders expanded resources and authority to make decisions for all of us.  First came a group of wealthy Gina Raimondo backers and their hired think-tankers at Brookings, and now, according to Kate Bramson in the Providence Journal, the Fed wants to get in on the action:

The Boston Fed’s team will collaborate with an unspecified number of Rhode Island cities and towns to use national research it conducted to help struggling communities recover economically, said Tamar Kotelchuck, director of the Boston Fed’s Working Cities Initiatives.  The program in Massachusetts has tackled workforce development, community development and education initiatives in six cities, but it’s too soon to say exactly what the focus might be in Rhode Island. Kotelchuck said it’s likely that workforce development will be one area of focus here, but others may emerge after more study.

Funny how everybody’s got the same basic blueprint:

Working Cities research has shown several factors help cities maintain or recover their economic stability — including collaborative leadership, the role of anchor institutions, investment in infrastructure and the extension of benefits to the entire community. But “collaborative leadership” — the ability to work together across sectors over a sustained period of time with a comprehensive vision — was found to be most crucial.

That passive voice — “was found to be” — is instructive.  “Found to be” by whom?  A quick look through some of the materials on the Boston Fed’s Web site for this initiative reveals that “collaborative leadership” is actually one of the goals of the project.  It isn’t surprising, therefore, that the organization would find it to be crucial.  This report, in particular, brings around some familiar verbiage:

Most importantly, [in the comparatively few places that have succeeded in making the transition from distressed to revitalized,] public officials, private sector employers, and nonprofit institutions need to coalesce around a long-term vision and collaborate for a sustained period of time in implementing broad-based revitalization strategies.

Translation: Insiders agree on a vision for the whole community and use the levers of government, non-profits, and business to make sure the people don’t disrupt the plan.  This is precisely the vision that Brookings has articulated, and the mechanisms that the Fed suggests read like the menu of the programs that Governor Raimondo and the General Assembly have empowered the state’s new Commerce Secretary to implement, using $80 million of our money claimed through a fancy refinancing deal.

In addition to the similarity of all of these plans note something else:  Raimondo began implementing it before the all this high-profile studying had begun.  Anybody who thinks this initiative begins with the actual people of Rhode Island, our needs, and our hopes and dreams is being profoundly misled.

 

Europe’s Migrant Crisis and Two Understandings of Democracy

The modern West may be the story of two different understandings of government and democracy: one to limit our need to resort to personal violence and the other to protect those who know how the world should be run from the violence of the masses who disagree.

Oh, You Thought the Mayor Was Supposed to Be Able to Run the City?

Let’s be fair, here:  Providence City Councilman Sam Zurier was a vocal supporter of unsuccessful candidate for mayor of Providence Michael Solomon, and his recent constituent letter (via Dan McGowan) criticizing that race’s victor, Jorge Elorza, is ultimately a political document.  But still:

… these actions raise serious questions about the current year’s budget.  Instead of reducing the accumulated deficit by $3.2 million, the administration increased it by $5 million to a new level of $13.7 million.  It is far from clear that the administration will meet this year’s deficit reduction requirement of $4.3 million, given that the current year began $1.5 million in the red and given the failures we learned about last week in the areas of understanding and managing the budget.

Anybody who pays attention in their own city or town should know that the overlapping area of local politics and budgets can be very complicated, and outside commentary ought to come behind a shield of caveats and disclaimers.  Be that as it may, it’s fair to wonder what in Elorza’s background ever gave anybody a belief that he had the experience to run a good-sized city.  One can be impressed by the career turnaround of a 39-year-old who admits that he barely graduated from high school and still question whether he should be the chief executive of an organization with a three-quarters-of-a-billion-dollar budget.

We seem to have forgotten, in this country, that we elect people to office in order to do a job, not because they fit the profile that we want on the “about us” page of the government’s Web site.  Life experience and an interest in policy might make for a good legislator, and experience with the law might be sufficient for a judge, but running an organization requires a different skill set.

Now, one could say, as Patrick Laverty did, that an election comes down to a choice between actual people on the ballot, but that’s only an indication that our entire political system is not working.  Multiple factors contribute to our broken system, but I’d argue that the biggest one is simply the size and scope of our government and its activities.  There’s too much incentive for people to get into government for all the wrong reasons (and to make politics painful for people who get into it for the right reasons), and too many of society’s issues are resolved through government for voters to make informed decisions based primarily on such basics as being able to develop and manage to a budget.

Money for Water… or Posh Digs for Bureaucrats?

The thrust of this Amy Anthony article in the Associated Press seems to be that Rhode Islanders should be concerned that our state government isn’t spending federal money quickly enough on waterworks, but I’m more disconcerted by the intended use:

Rhode Island is the farthest off track of all the states from meeting the Environmental Protection Agency’s goal of spending the money in a key drinking water program by next year’s deadline, according to federal data reviewed by The Associated Press.

The state has more than $16 million sitting unspent from the Drinking Water State Revolving Fund — 9.4 percent of what it has been allocated — putting Rhode Island above the national average of 6.2 percent. …

But state officials insist they’ll have the backlog used up by September 2016, largely because of a $26.6-million loan for a new building for Providence Water.

The building in question won’t really be part of the state’s water infrastructure.  It won’t be used to process water in any way, but to house government: “A spokeswoman for Providence Water has said the water supplier wants a new operations facility to consolidate its operations and be located more centrally in the capital city.”

In July, Dan McGowan reported on WPRI that Providence Water was actually looking into a $39 million bond in order to buy and renovate the desired building, so from a strictly fiscal perspective, it would seem to be better to have federal taxpayers pay the $26.6 million outright without tacking on another $12 million or so in financing fees and giving local ratepayers the bill.  That said, are administrative buildings really what people are thinking about when taxpayers approve federal programs to improve drinking water?

(I know, I know.  It’s laughable to think that our behemoth of a federal government actually operates with taxpayer approval, at this level, but it’s fun to pretend from time to time.)

Hey, You Kids Get Off of Your Own Lawn!

The government’s war on children’s lemonade stands has been the subject of much mockery on the right for years, but here’s a new one:

You may have seen one of these little bird house turned mini-libraries in your neighborhood. They’re a lovely idea. Simple, no fuss, and quite fun. Donate a book, borrow a book. Nothing to sign, no due date, no late fees, just common courtesy.

Conor Freidersdorf of The Atlantic explored the ridiculous trend of “shutting down” unregulated community book sharing.

At the first stop, of course, this is a story of excessive government, but the Legal Insurrection post linked above brings out a key consideration that’s often overlooked: “The Leawood City Council said it had received a couple of complaints about Spencer Collins’ Little Free Library.”  Not only do people contribute to the creation of invasive zoning laws, but they exercise them, too.

What our current approach to government does, in this country, is to allow the curmudgeons to project their old remonstrance for the kids “to get off of my lawn” across the street, allowing them to tell them to get off of their own lawns.  To be clear, people should have a right to develop communities that are free of just about anything they find offensive.  It’s safe to say, however, that the rest of us have become too tangled up in our political philosophies to stop the curmudgeons from giving themselves far too much power.

We need to push back, even if it means getting into ridiculously heated battles over silly matters in local government.

Keep It Up, Coventry!

Hey, in Rhode Island, lovers of freedom and the rule of law have to take what victories they can, and I’d count this as one:

State officials effectively threw up their hands Friday in trying to prop up the Central Coventry Fire District, saying they wanted to pull the plug on their bankruptcy reorganization plan after uncooperative town officials threatened to sue the plan’s chief architect and the district’s board proved to be perpetual obstructionists.

“It isn’t in Rhode Island taxpayers’ best interest to continue spending thousands of dollars on a plan that will not be successful because it lacks the support from the leadership of the town and from the CCFD board,” said David Sullivan, acting director of the state Department of Revenue.

Of course, that’s from the Providence Journal, so it has to be rephrased in a way that isn’t heavily slanted toward government officials.  You have to look into the direct quotes of the “obstructionists” to understand what’s really happening.  Here’s the Town Council’s lawyer, Nicholas Gorham:

“It was clear the people wanted profound change, and with all due respect to Judge Pfeifer, his plan did not do that. Consideration of private services, more volunteers; those are the things that have been repeated over and over again. And there is really no evidence they were even ever considered.”

So to revisit the first paragraph, above, the receiver came in not with the intention of figuring out how to satisfy the voters and taxpayers who have a right to determine how their fire district will run while balancing safety concerns and employee rights, but with the view that the status quo should be preserved as much as possible.  Calling the people who’ll have to live with any arrangement long after the receiver (i.e., state-appointed dictator) has collected his paycheck and gone home “obstructionist” for insisting that any deal must meet their interests is a pretty aggressive attack.

That said, if “obstructionist” is what the establishment and its newspaper want to call free citizens asserting their rights, then we need more obstructionists across the state and in state government.

Rhode Island as Experiment in Decline of Nations

As Robert Samuelson describes him in Washington Post essay, Mancur Olson should be made the official patron economist of Rhode Island, or something:

Although an economist, Olson revolutionized thinking about the political power of interest groups. Until Olson, conventional wisdom held that large groups were more powerful than small groups in pursuing their self-interest — say, a government subsidy, tax preference or a protective tariff. Bigness conveyed power.

Just the opposite, Olson said in his 1965 book “The Logic of Collective Action.” With so many people in the large group, the benefits of collective action were often spread so thinly that no individual had much of an incentive to become politically active. The tendency was to “let George do it,” but George had no incentive either. By contrast, the members of smaller groups often could see the benefits of their collective action directly. They were motivated to organize and to pursue their self-interest aggressively.

Here’s an example: A company and its workers lobby for import protection, which saves jobs and raises prices and profits. But consumers — who pay the higher prices — don’t create a counter-lobby, because it’s too much trouble and the higher prices are diluted among many individual consumers. Gains are concentrated, losses dispersed.

Around here, one can see this dynamic at both the state and local levels.  The special interests have much more incentive to become active.  So conspicuous is this, at the local level, that those who benefit disproportionately from the higher taxes find it selfish when those who do not push back on excesses.  The doubling of a town’s tax levy over a decade is just a few thousand dollars per year to the average taxpayer, but it’s $30 million in brand new elementary schools to teachers, administrators, and parents, as happened not long ago in Tiverton.

Of course, if the effort required of the large group (Samuelson’s term) is relatively minor, and if a small, motivated team can offer the people an option, the large group can still win.  However, the special interests will do their best to utterly destroy that team, working especially hard to make sure that few see them as motivated out of a sense of fairness and justice.  Rather, there must be some explanation of greed or personal corruption.  They must be bad, evil people.

It’s quite an education to be on the receiving end of that dynamic.  In some local circles, for example, I’m the symbol of all politically empowered greed in the world because I work to give people a substantive option when it comes to their tax bills, which causes problems for those who want to take money away from their neighbors by force and spend it on things that benefit themselves.

We’ve reached the point, in other words, that the special interest advantage has become a sense of entitlement.  That attitude, if not stopped, will lead inexorably to tyranny as entitlement transitions into a sense of a right of ownership.

The Business America’s In

Most readers of this site have likely seen this already, but I’d be remiss if I let it go by without comment:

Those employed by government in the United States in August of this year outnumbered those employed in the manufacturing sector by almost 1.8 to 1, according to data published by the Bureau of Labor Statistics.

There were 21,995,000 employed by federal, state and local government in the United States in August, according to BLS. By contrast, there were only 12,329,000 employed in the manufacturing sector.

If you’re wondering, Rhode Island has 60,600 government employees, according to the Bureau of Labor Statistics (10,500 federal, 16,000 state, and 34,100 local).  That compares with 42,000 in manufacturing, 15,200 in construction, 64,200 in wholesale and retail trade, and 55,500 in leisure and hospitality.

For the last few decades, Rhode Island and America have primarily been in the business of government, which explains quite a lot about the condition of our country.

Another Lesson for RI: Vomit on the City Hall Stairs

If you missed this telling editorial in Saturday’s Providence Journal, be sure to read the whole thing:

The other day, the son of Cumberland’s David Ram-pone, president of Hart Engineering Corporation, was married at the Biltmore Hotel, in downtown Providence. Before the wedding, the bride wanted some pictures taken at leafy Burnside Park, with its lovely water fountain. So the entire wedding party, including two toddlers, trooped across the street.

Unfortunately, Mr. Rampone recounted, “we left in short order, as there were needles on the ground, human feces on some of the artwork, and a couple of people smoking crack. Nice environment for our small grandsons to be around.”

So the group moved on to the City Hall, a striking 1878 gem that is on the National Register of Historic Places and which The Providence Journal once called “our municipal palace.” They thought of taking photographs on the steps, from which such luminaries as Theodore Roosevelt and John F. Kennedy have addressed Providence crowds. But that was a no-go too. “Dried vomit and urine were all over the stairs.”

As fascinating as the original testimony, though, was the Twitter exchange that it prompted between progressive blogger Bob Plain, Democrat lobbyist Bill Fischer, and Providence firefighter union head Paul Doughty.  Plain voiced a “poor little rich people” sarcasm, to which Fischer took some umbrage, with Doughty chiming in to say that city government should be able to fund both jobs for cleaners and poverty programs.

Ladies and gentlemen, Rhode Island government in a nutshell.  The progressive heart bleeds so for the disadvantaged that those who are not poor become the enemy, and are well advised simply not to make the state their problem.  Organized labor drives up the cost of accomplishing anything through government, under the assumption that there will always be people with more money to foot the bill.  And the Democrat lobbyist and mainstream newspaper lament the results achieved by the politicians and policies that they have backed, without going so far as to reconsider those politicians and policies.

Even putting aside the inevitable raw corruption, big government inevitably comes to the point of vomit on the city hall stairs when it is built on the premise that government’s role is to redistribute wealth and simply make positive outcomes happen by fiat.  We should try allowing government simply to be a civic framework that allows the market to work, perhaps with some carefully considered corrections where there are cracks, and trusting in people to resolve problems (because we’ve encouraged them to do so through strong cultural institutions).

It will not help the poor of Providence if nobody with money ever goes there, and chasing redistribution up the government ladder — attempting to redistribute at the state, national, and international levels, so there’s nowhere for those with money to run — will only ensure that the hammer falls harder when it falls.

Cranston City Council Planning Coup with Help of State Police?

This report from NBC 10 reporter Parker Gavigan suggests that one of the bigger worries expressed in my analysis of the state police report about the Cranston Police Department might actually have been understated:

City Council President John Lanni told the NBC 10 I-Team that he expects the council will introduce two resolutions at next Monday’s meeting that deal directly with the scathing state police report on Mayor Allan Fung’s leadership over the police department.

Lanni said the council will vote on a resolution of no confidence against Fung. …

Lanni also said he expects the council to “right a wrong” in the case of Patrolman Matthew Josefson.

As I mentioned in my analysis, Lanni appears to have become a political friend of Police Chief Michael Winquist, as well as the new prime beneficiary of donations from the the International Brotherhood of Police Officers Local 301.  The core criticism of the state police report about Cranston is that there was too much alignment between the union, the chief, and the mayor.  With their extremely biased report, the state police officers appear to have facilitated a switch to an equally unhealthy (or worse) alignment between the union, the chief, and the city council, which may be preparing to overstep its own bounds, to boot.

A quick look at the city’s charter suggests that a “no confidence” resolution would be purely political and that the council has no authority to dip into the minute details of city employment.  They are well situated, however, to undermine the mayor and disrupt the operation of the city until the next election, at which point, they can complete their coup.

Depending how this goes, I may have to upgrade my criticism of the report from “extremely biased” to “recklessly and dangerously political.”  If Chief Winquist and State Police Superintendent Steven O’Donnell don’t do what they can to stop the train that their report started rolling, they risk long-term damage to the credibility of the state police.

State Police Tell Story of Heroes and Villains in Cranston

A close reading reveals the state police report about the Cranston Police Department to be a deeply biased narrative serving the interests of its authors and their colleagues.

Catching Up on Coventry

Kevin Mooney summarizes the saga of the Central Coventry Fire District for The Daily Signal:

In a battle of political wills in Rhode Island, local voters so far have held their ground against efforts by union leaders and state officials to make them pay more for fire and rescue services.

State lawmakers and local activists who side with the voters, however, see the situation as an ongoing threat to self-government.

“The people have rejected higher taxes over and over again because they want a new way of doing business,” state Rep. Patricia Morgan, R-West Warwick, says.

Progressives’ Old Fashioned View of the World

The mobility of human beings has advanced to the point that technology allows us to accomplish many of the things we used to have to move around to do without leaving our homes.  Meetings.  Research.  Shopping.  Collaboration.

With the growing trend of a dispersed workforce, what’s the progressive solution for saving Providence government financials? Well, if Sam Bell, leader of the state branch of the Progressive Democrats of America, is representative:

“If Providence were able to tax the income of wealthy commuters who live in the suburbs, we could eliminate or drastically reduce property taxes and solve Providence’s fiscal nightmare overnight. This is the policy solution many other states take to this challenge, but the General Assembly will not allow Providence to implement it. And so our central city crumbles—plagued by poverty, a shrunken police and fire force, struggling schools, brutally high taxes, and fundamentally impossible math,” Bell added.

The first thing to note is that Bell should really be required to substantiate his “many other states” assertion.  A quick online search mainly brings up articles about cities that are seeking this particular golden goose, but their success seems limited mainly to Pennsylvania (Philadelphia and Scranton… stop laughing).  New York City let its commuter tax expire with the last century.

More important, though, is the sheer economic illiteracy, matched with historical anachronism.  Cities’ main problem is that people no longer have to interact with them.  When transportation was limited to feet and horses, it made life a lot easier to live close to work and to the services that other people provided.  Those days are gone.  Not only can we drive and telecommute, but individuals and businesses alike can order products from around the world and have them shipped quickly and cheaply.  Increasingly, we can order products and services that can be delivered instantly via the Internet.

Now that necessity is moving out of the picture, the challenge for cities is that people have to want to go there — for work, convenience, or entertainment.  Taxing them to work there while living somewhere else makes working there less desirable.  (It’s a complicated equation, I know.)

At bottom, the progressive view on such policies winds around two poles: being able to tell people how to live and distributing government services (while collecting votes in exchange).  That’s a very old-fashioned model, and it’s the one that cities still serve best, as proven by the strength of Democrats in cities even within Republican-dominated states like Texas.

This simple truth is easily forgotten, but our society shouldn’t be structured entirely around government services.  That’s not what life is supposed to be about, and people should be suspicious of anybody who seems to believe otherwise.

Irresponsible Negotiating and Union Parity Clauses

Why would any responsible public official agree to language like this?

In a letter to Mayor Jorge Elorza, Council Finance Committee Chairman John Igliozzi wrote that he is concerned that a “me, too,” clause in the teachers’ contract could result in teachers getting whatever raises the firefighters ultimately agree to.

In his July 21 letter, Igliozzi writes, “Should the city reduce the number of fire platoons in exchange for a 5 percent salary increase in fiscal 2016, it is highly likely that the parity clause would be activated.”

Igliozzi says a 5-percent increase would cost the city an additional $10 million.

The mayor’s office argues that the parity clause wouldn’t kick in because any raise the firefighters receive could be interpreted as compensation for working additional hours.  In other words, the whole thing would likely wind up in court.

But that’s not really the important point.  The destructive foolishness is already obvious in agreements that pay teachers as if it doesn’t matter what they teach.  Linking pay for employees in one occupation with pay for employees in a completely different occupation is ridiculous.  If Providence found that it couldn’t attract or retain qualified firefighters without a significant increase in pay, why should that have any bearing whatsoever on the pay of kindergarten teachers?

That sort of economic illiteracy should be a deal breaker in any contract.

Charters: Innovative Hybrid or Offshoot from the Giant Blob?

The debate over whether charter schools are more like public schools or private schools points to the race between inside interests and charters’ destruction of private schools.

Voting Rights Along the Border

Some issues fall so closely along fault lines of one’s philosophy that it doesn’t matter how local or insignificant they are; when once one hears of them, it becomes necessary to work out one’s beliefs about them.  I’ve been deeply distracted for the past day by the curious case of Jonathan Cottrell in Tiverton, and I’ve posted a detailed summary on Tiverton Fact Check.

He’s been a Tiverton resident for decades and currently serves on the town’s Comprehensive Plan Advisory Committee.  Now, he’s applying to join the town’s Planning Committee, too, which puts him within firing range of the sides in the Tiverton Glen development controversy.  Among people who disagree with his previous votes on the CPAC (about which I know nothing), it has now become an active attack that he doesn’t actually live in town and shouldn’t be eligible to vote.  The issue has gone so far as to lead the Tiverton Board of Canvassers to schedule a hearing in September to review evidence about Cottrell’s circumstances and rights.

In a nutshell, it looks to me as if Rhode Island law holds somebody to be an elector, once he or she has legitimately registered, until such time as he or she declares a different “domicile” or registers to vote elsewhere.  And that seems appropriate, to me.

Cottrell’s living situation is very unique.  Even his address in Tiverton falls in a gray area, because it’s a multi-use property listed as a range of street numbers, and he picked the number that’s used on the commercial building as the most convenient address for the lot.  Moreover, it appears that, as the decades have rolled along, his family has purchased property a short distance over the border, in Swansea, and has used that address for a few non-official purposes.

I wouldn’t be surprised, for example, if they drifted toward making Swansea their “domicile” when their son reached full adulthood and their daughter went off to boarding school and then drifted back to homely feelings toward Tiverton some years later, having never made the decision to switch official.  A variance request to put more rentals on their Tiverton property was denied in February, and they put their main Swansea house on the market last month.

But the options their considering for their future are not really anybody’s business.  In a free society, people shouldn’t have to submit their every life decision and feeling for government scrutiny.

It’s one thing for the government to have rules about its own right to collect tax money from a person, calling them full-year residents if they’re in the state for a certain number of days.  It’s another to wrap people up in what I’ve called a political Twister game in which the government can take away their basic right to vote if they cross some gray area of the law.

Selective Recalling in Tiverton

Ever notice that, when it comes to politics, consequences for behavior seem to have less to do with what was done than with who did the doing?

After the hearings and Town Council vote that threw a roadblock in front of a large mixed-use development proposed by the Carpianato Group, the word “recall” was in the air, particularly for the two council members who ultimately voted to make changes to the town’s comprehensive plan in order to accommodate the development, Jay Lambert and David Perry.

Oddly, as I’ve reported on Tiverton Fact Check, the first recall petition pulled appears to be against Council Member Joseph Sousa.  Sousa’s well known for his tendency to speak his mind even when his mouth would serve him better by remaining shut, and the impetus for the recall appears to be a short, snarky response to an email from the petitioner’s teenage daughter.

That said, neither Lambert nor Perry have been free of bad behavior, and after all, they voted against the large group of residents who advocated so strongly against the development.  But Lambert and Perry are candidates supported by the radical local political action committee Tiverton 1st, and vacancies for the council are filled by the next-highest vote getter from the last election.  In this case, the replacement council member would not be from that group, but in opposition to it.

The date is still early, of course, so perhaps more councilors will find themselves in the cross hairs, but for now, politics appears to reign in town:  Elections in Tiverton are, on paper, non-partisan, but that doesn’t mean that the left-wingers don’t protect their own, no matter how badly they behave or how damaging their decisions.

The Big Apple’s Progressive Lesson

Let’s be honest, New York City has not been a bastion of conservative policies, at least in my lifetime, and its previous mayor, Michael Bloomberg, was progressive even as a Republican.  News of the Big Apple’s rapid deterioration under overtly progressive mayor Bill de Blasio, however, has been coming in from all directions.

The latest is from Myron Magnet, in City Journal, which ends with the following advice that Rhode Islanders should take to heart for their own government:

Listen, Mayor: the first job of government is to keep the people safe in their homes and in the streets. If you can’t do that as a municipal chief executive, you are a flop. Equality is not the job of government, unless you are a Communist, in which case equality usually comes at the barrel of a gun or the end of a noose. And voters of New York, please learn this lesson too, despite your attachment to FDR and the New Deal or your seductive professor of race-class-and-gender studies at Brown or Wesleyan. New York needs a realistic mayor. We don’t have one.

A House and a Heart Attack-ack-ack-ack-ack; Is That All You Get for Your Money?

Lee Habeeb’s reflections upon his father’s decision finally to leave New Jersey will have a very familiar feel for Rhode Islanders.  He bought his house for $32,000 at a time when property taxes were so low he can’t remember how much they were.  Now property taxes, income taxes, and sales taxes give him good reason to worry that his retirement income and savings won’t be enough.

(To some degree, it seems, Social Security is just a way to shift local taxes to younger federal taxpayers.)

Habeeb refers to people who leave a state to escape the confiscation of their property by the strong-armers in state and local governments as “refugees.”  Rhode Island has produced a lot of those.

Unfortunately, experience suggests that Habeeb’s skepticism is amply justified:

… businesses are fleeing New Jersey for the same reason so many residents are fleeing: the high cost of doing business there. Indeed, New Jersey ranked 50th, dead last, in the Tax Foundation’s 2015 State Tax Business Climate Index.

It’s a vicious cycle, and stopping it is no small task. The country watched in disbelief as one of our great American cities, Detroit, created over a million refugees over five decades, as its population fell from a peak of nearly 1,700,000 in 1960 to its current 680,000. It spent, mismanaged, and shrank itself into bankruptcy. How states, cities, and nations treat capital — the human kind and the money kind — matters. How leaders think about capital matters too. The ability to manage, nurture, and preserve it, and to grow a healthy tax base (not destroy it), is what will separate winners from losers.

Megan McArdle gives some sense of the challenge when she writes about of the stupidity of rent control policies:

… this has one key advantage for local politicians: People who are not already living in your city cannot vote in local elections. Maybe in 25 years, when rent control has pushed unregulated prices sky-high and your city can’t grow because there’s nowhere to put anyone, this will become a problem for politicians. But those will be some other politicians in charge by then.

So while virtually all economists can agree that rent control is a terrible idea, local politicians may well think it’s splendid.

No development is more threatening to powerful insiders than successful non-insiders, especially those who don’t know the local rules of the game and want to do things just because (gasp!) they make sense.

Lawsuit: Police Officers’ Right to Work

A press release sent out yesterday by Gio Cicione, chairman of the Stephen Hopkins Center for Civil Rights seems like an important development:

Five part-time police officers in Westerly, RI, have filed a Civil Rights lawsuit against the Town of Westerly, several town officials, and International Brotherhood of Police Officers Local 503 in U.S. District Court.

The plaintiffs are receiving free legal aid from the National Right to Work Foundation and lead local counsel is being provided by the Stephen Hopkins Center for Civil Rights.

Thomas Cimalore, Anthony Falcone, Scott Ferrigno, Darrell Koza, and Raymond Morrone brought the suit and seek declaratory, injunctive, and monetary relief because a portion of every paycheck (at a rate of $5 an hour, or 13% of their pay) is being confiscated by the town and paid directly to Local 503.

The lawsuit alleges that the plaintiffs’ First, Fifth, and Fourteenth Amendment rights (and other state labor and whistle blower protection statues) are violated when they are forced, as a condition of employment, to financially support Local 503 despite not being members, receiving no benefits from the union, and never authorizing or requesting that the town withhold a portion of their paycheck and distribute those funds to Local 503.

The complaint alleges attempts by the Town to stifle their objections, retaliate by diminishing hours and pay, and forcing at least one officer out completely.

“The union bosses and the bureaucrats have worked in concert to take money directly from these hardworking part-time police officers in order to subsidize the union,” said Giovanni D. Cicione, Chairman of the Stephen Hopkins Center for Civil Rights and lead counsel on the cases.

“The unions can’t afford to keep the empty promises they’ve made to their workers – we’ve seen this throughout Rhode Island with non-existent pension funds, economic stagnation, and fleeing businesses,” continued Cicione.  “It’s time someone really stood up for the workers who are the backbone of our communities and our economies – the union bosses seem to have forgotten how to do that, but the Hopkins Center is happy to step in and defend what’s right.”

Labor unions are part of the Rhode Island establishment that seems to believe that nothing should be allowed to happen in the state with their explicit or implied consent.  That’s not freedom, and it’s not good for Rhode Islanders.

The Salability of Liberal Guilt in Summer Recreation

At the end of the day, newspapers have to make money.  They have to publish things that people are willing to pay to read.  In that regard, I find myself wondering how much of a market there is for articles tweaking the guilt of while liberals and the grievance of non-white liberals.  The poobahs of the The Providence Journal demonstrably must believe the market is huge.

As the paper’s contribution to the progressive project of sowing racial discord during the lame-duck period of Barack Obama’s disastrous presidency, the paper is running an ongoing series called “Race in Rhode Island.”  This weekend’s offering — covering more than half of the Sunday edition’s front page and still at the top of the paper’s Web site — is Alisha Pina’s “The Play Gap: Summer programs in affluent communities can give kids a leg up on less privileged peers“:

A 44-page glossy South Kingstown brochure offers young people more than 100 summer recreation opportunities: pirates ahoy, riding the waves surf camp, rock band and many other activities under its motto, “Where tradition meets adventure.”

But at the other end of this tiny state, Woonsocket has just one basketball league and a four-hour “Just Play” program that runs three days a week. You can find the two programs only on fliers and Facebook.

Summer recreation opportunities are different from community to community in Rhode Island; some have millions of dollars while others have almost nothing. The Providence Journal looked at five cities and towns and found these wide disparities.

Again, is there really a market for this stuff?  And if so, does it ever get saturated?  How many people out there are just waiting to spend a chunk of their Sundays lamenting the plight of those poor, unfortunate urban children because their local governments don’t create employment for yet more public employees to increase our reliance on government to structure our lives for us?

Have no doubt that such is the meaning and purpose of this article.  Profiling five of 39 cities and towns is hardly sufficient to draw the generalized conclusion of the story’s lede.  That’s especially true considering that the profiles don’t neatly create the desired narrative.  Providence, for example, doesn’t look like it’s exactly depriving its students of the opportunity for government-subsidized activities.  Tiverton, for another example, is not among the profiled five, and the town is currently struggling to expand its summer offerings, even as it struggles to accommodate residents’ justified demand that the recently exploded tax bill be brought back under control.

In other words, this article must be about guilt and grievance, because the actual information isn’t as sold, and it doesn’t bother raising the question of whether government really needs to be taking over the summer recreation market.  An article about the factors that prevent the private sector from filling a presumed market need for summer activities might be worth reading, but then Rhode Islanders might, once again, have to face their government’s strangulation of their society.

Local Politics Should Work Out Problems, Not Put Them Off

I’ve put a post up on Tiverton Fact Check that takes up an aspect of the mixed-use Tiverton Glen project — which opponents are calling “the Mall,” now “the MegaMall” — that hasn’t been mentioned.

The issue and, especially, the opposition have really picked up steam in the past few weeks, in part perhaps because the process has set off a number of alarms.  Notably, after a long and controversial planning-board process, the developer submitted additional requests for zoning changes to the Town Council just before a town hearing.

Still, as often happens around here as issues heat up and a local political action committee called Tiverton 1st turns on its machine, personal attacks are poking through discussion of issues and there’s a frenzy for conformity that makes a too-simple “yes” or “no” question into a heated single issue under which all substantive discussion is rolled.

One larger question that’s been lost is what sort of development will ultimately go in that location.  Somebody’s paying around $20,000 in taxes on that land every year.  Making its sale and development a question of raw political power raises the possibility that the next proposal will come from somebody with more political power and less regard for the interests of the community.

With the state continuing to expand its push for affordable housing — including cut-rate tax bills for affordable developments — those opposing every commercial development that comes down the pike may be setting up a new neighborhood that, far from promising at least some fiscal benefit in the long term, comes nowhere meeting the costs of the government services it uses.

Laws Corrupting the Rule of Law in Woonsocket

Battles over the annual budget in Woonsocket could open up another corrupting problem with the inadvisable and poorly written law granting the state the power to take dictatorial control over struggling local governments.

Sowing the Seeds of a Future Revival

Events in America suggest dark times for liberty and true diversity. But we can always rebuild, starting at the bottom.

Charters in Public-Private Limbo

I’m in the minority among my ideological peers, on this, but my thinking on charter schools has changed quite a bit in recent years.

Many conservatives, I believe, see them as a sly way to insert wedges into public education’s cracks in order to bring about wider-scale reform of the system.  If we create this alternate system of schools, literally entered with the luck of the draw, that is free of the restrictions that (for some reason) we continue to tolerate in district schools, then parents will demand that district schools be made free of the restrictions, too.

To advance this stratagem, we’ve been willing to overlook basic descriptive facts about charters that would normally concern us a great deal.  In order to work around the damage that the democratic nature of our government has wrought in education (thanks, largely, to the self-interested activism of teacher unions), we’re creating institutions over which the public has less control.  On the one hand, charter advocates insist that they are “public schools of choice,” so they should fall within the range of inside-government benefits, but on the other hand, they are demanding that the people paying the bills should not have immediate, democratic control over them.

In any other context, conservatives would recoil against that just as surely as they ought to recoil against crony capitalist deals giving connected insiders taxpayer cash for their private business dealings.  Principle should not be something to be weighed against practicality.  Rather, we should hold to our principles because they produce the outcome that we desire; it is in determining our goals that we should weigh morality and practicality.

My concern, in treading off our principled path, is that we’re more likely to get lost than to return to our firm ground.  Instead of breaking the rigid grip of special interests on public schools, charters will kill off private schools — at least all of them that are accessible to anybody who’s less than rich.  Then special interests will successfully tighten the vice, making government education a true monopoly rather than the near-monopoly that it currently is.

More on Reporting Providence Pension Fund Shuffling

Dan McGowan, of WPRI, emailed to point out that he wrote about the subject of my earlier post back in May.  The article does prove that at least one mainstream journalist has brought the topic up, but the content illustrates much of my point.  Consider this from McGowan’s article:

[Kathleen Riley, a senior vice president and actuary for Segal Consulting,] told the committee the change in calculation “in many ways is not too meaningful,” but explained that is why the city’s unfunded pension liability grew from $831.5 million at the end of the 2013 fiscal year to $894.3 million in 2014.

“Historically very little attention was paid to funded ratio so it didn’t really matter how you reflected that contribution receivable,” Riley said. “But we think this is a cleaner approach to presenting your numbers, [and] a more accurate reflection of your assets in your fund and your funded ratio on the valuation date.”

What is this but a rolling scandal for which no politicians are ever held accountable?  Nobody used to care whether the pensions were funded, so the accounting didn’t really matter?  That’s scandalous.  Then, when people started to pay attention, it benefited the city to lag its contribution to the pension fund (which looks like about 25% of its declared assets) by a full calendar quarter.

If somebody were really relying on that money (rather than just expecting taxpayers to come up with any shortfalls when bill comes due), that would make a difference.  Somebody looking at an audit at the end of June would expect that $63 million to be in the account gathering investment returns for three months.  Using the city’s (absurdly high) projected return on investments of 8.25%, that’s around $1.3 million lost to the pension fund for the year.

If the city does this every year, by the end of a decade, it would be short around $20 million.  At the 30-year horizon often used for pension calculations, it would be out over $150 million.  (This all ignores the possibility that doing this accounting helps the city avoid thresholds like a designation of “critical.”)

But it’s complicated, and it’s all just numbers on a page until the city has to take more money away from some resident in order to give it to some retiree.

I should note, by the way, that this is more an attack on our general assumptions about government than on journalists.  If you look at the note at the end of this April 2012 post of mine, you’ll see that WPRI’s Ted Nesi and I were discussing Providence’s delayed payments back then.  Those of us who write about these things can’t be expected to trace every curious detail, or to know off the tops of our heads what normal practice is.  Back then, I was concentrating on explaining how the entirety of pension accounting is a scam.

Today, I’m mostly pointing out how pension accounting illustrates the flaws in our civic system, which I’d suggest should advise us to severely limit the activities of government.

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