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I think they need to change the name of the State of Rhode Island and Providence Plantations to, "Nausea Island and Providence Robber Barons." While driving home to Rhode Island the other day one of the first things you notice is a rest stop along Route 95 that is now closed to the public. This rest stop was recently constructed, within the past 8 years, and cost the state $millions to construct. Why is it closed? Simply put, the state refuses to hire anybody. There is no problem building facilities, but damned to hell if anyone wants to hire people to care for those facilities.
Now we come to the predicted demise of "Studio 38", the Curt Schilling gaming company that was heralded as a savior for the Rhode Island economy and that was granted $75 million in loan guarantees from taxpayer money. To follow the story more closely, I suggest you visit RIFuture.org. This is the best progressive political site in Rhode Island.
Yes, Rhode Island has not only stolen from the future financial security of its public employees by attacking pension systems state wide, but it has stolen from everybody throwing money at ill-conceived ventures. Rhode Island acts like a venture capital firm, but is never successful with its investments. This has to be the only state that built a major downtown hotel (The Westin) and then suffered operating losses of $25 million per year for over a decade. This has to be the only state that is stupid enough to guarantee the profits of a gambling casino which will one day cost $millions because of the casino bill in Massachusetts. This has to be the only state that stupidly backs a gaming company that could not raise its own revenues from venture capital sources. How about spending over $44million on the new Wickford train station that nobody uses. These disasters are just the tip of the iceberg.
This state has robbed from the poor and middle class to give to the rich and there is no sign that it is willing to stop. Sounds like Republican politics but beware, we happen to live in a "Republicrat" state, if you know what I mean. The state has reduced the state work force by over 3000 employees during the past 10 years while the state budget skyrockets to new heights each and every year. Stop blaming the public employees and stop stealing from them. Rhode Island is throwing its money away in the direction of rich people and that is why our unemployment rate remains higher than 11% and is growing all of the time. As our problems grow, the state continues to throw money haphazardly in every direction except the right one. Government has to do what it is suppose to do. Government needs to use its tax dollars to educate, regulate, protect, and preserve. Government should not be in the "business game".
Until Rhode Island can move in the opposite direction of its leadership and whiny radio talking heads, you can expect higher unemployment, growing government debt and the scapegoating of public sector employees. Welcome to "Nausea Island"!
tomtoak
Showing posts with label Carcieri. Show all posts
Showing posts with label Carcieri. Show all posts
Thursday, May 24, 2012
Friday, March 25, 2011
Chafee's tax plan in Rhode Island makes sense
The following article was a recent letter to the editor of the "Providence Journal" which has not yet been published. It is my hope that they will quickly print this letter as day after day Governor Chafee is taking a beating in this newspaper over his proposals to raise taxes to close a budget deficit. How the hell do the Republicans always think that they can close deficits by reducing taxes for the wealthy? It's refreshing to see a governor take an approach that includes raising revenue as well as reducing spending.
Journal misses the boat on Chafee tax plan
I must say that the “Providence Journal” misinforms when advising citizens on Chafee’s tax plan (Editorial; “Chafee tax plan’s flaws” March 13, 2011). Consider this; Governor Carcieri reduced the number of state workers by 3000, reduced state pensions for future retirees, reduced state income taxes for the wealthiest, furloughed state employees for 12 days, and the deficit grew as did the unemployment rate. Something is not working, but what?
Fewer employees means more outsourcing of government work and privatization costs may very well be playing a significant role in driving deficits. We have seen in past “Journal” reports the exorbitant costs associated with outsourcing work to private concerns by some state agencies. Right-sizing state government may lead to significant savings and assist in improving pension liabilities.
The “Journal” comments that, “state employees continue to receive annual pay increases”; this is not true. Your editorial staff is always looking to balance the budget to the detriment of state employees. This will have a limited effect, and here’s why. From previous “Journal” reports, the estimated annual cost of each state employee is just under $100,000. With approximately 14,000 employees, all salary, fringe and pension cost approximate $1.4 billion. The state budget is estimated to be $7.5 billion this year. Employees account for around 18.5% of total spending. You can’t fix the problem with a focus on only 18.5% of cost, reducing income from the wealthiest while blindly outsourcing government work.
Additionally, you attack the sales tax as being “regressive” and “not exactly what you want to expand”. On the very same day, the “Journal” reports; “Federal Reserve Chairman Ben S Bernanke, at the National Governors Association winter meeting …… advised governors that lowering their sales tax rate while broadening the variety of goods and services to which the tax applies would result in a steadier stream of revenues, better positioning states ….” (“Chafee says he’s trying to ‘share the sacrifice’” March 13, 2011).
Governor Chafee is doing exactly the right thing, managing government with his brain and not a lopsided ideology. Does Chafee get it all right? No. The Chafee administration needs to really perform the “Big Audit” of privatized service cost which may be significantly driving deficits and study “right-sizing” government strategies. I would further advise Chafee to reduce the recommended 6% tax on car repairs to 1% and tax the yachts that line Narragansett Bay at the 6% rate. Until the toys of the wealthiest among us are taxed on a par with the taxes facing the middle class, Rhode Island is missing the boat.
Sincerely;
tomtoak
Tuesday, March 8, 2011
Public Pensions and the Fight Ahead
Governor Scott Walker, Republican ideologue from Wisconsin has done something that I did not think possible a few months ago. Walker has mobilized unions that will serve as counterweight to any Tea Party movement in this country. Governor Scott has ruined chances for Republican leadership in my estimation. Good for him; keep talking Scott Walker, Sarah Palin and Michele Bachmann, you guys are the best thing to happen to the Democratic Party since Franklin Roosevelt had to step in and clean up the Republican mess left by ideologues like you. Remember Republicans; Democrats won 5 consecutive Presidential elections and they only lost because a moderate for all of the people stepped forward to rescue the ideological bankrupt Republican Party. Dwight was a guy for all of the people.
Walker's attempt to strip employee unions of power has nothing to do with the reality of state financial burdens. Everyone needs to read the current McClatchy Report; Why employee pensions aren't bankrupting states. This is a great report that underscores the true reason why Republicans are trying to gain political capital by scapegoating public employees and attacking their pensions.
In Rhode Island, our new Democratic Treasurer, Gina Raimondo has had the nerve to say that she believes that retirees may not own their pensions nor do state employees. Oh really: Who the hell do you think put the money into the fund? Employees put 8.75% of their income and school teachers put 9.5% into the system over their careers of 30+ years, and the state matches that whenever they feel like it (this is the problem), and now you say that system is taxpayer money? Gina Raimondo, you border on delusional and do not belong in a position to speak for the citizens of a free country! You will not get my vote next time around and never will get my vote unless you apologize to all of the hard working public employees across this state.
Governor Lincoln Chafee will be proposing steps to help secure the state's financial position tomorrow. One recommendation will be to increase state employee and teacher contributions to 11.5% for an interim period until a comprehensive pension overhaul can be achieved. Rhode Island employee contributions are already the highest in the Nation and now the move is to increase that by 2% for teachers and 2.75% for state employees?
At first I was really angry at the idea, then I realized it may well be brilliant. The Congress just reduced contributions to Social Security for workers and employers by 2%. This is something that Obama should never have agreed to do. Republicans will use this loss of revenue to argue for privatization of social security. Chafee's plan will result in little change in take home income for public employees that pay into state retirement as well as social security. Money that formerly was going to the Federal Government will now accrue towards the state's retirement plan.
Union workers do not want their pensions decreased. My guess is that most union workers will see this as a step toward fully funding the promises. I must admit though, until the state of Rhode Island taxes all of the yachts in Narragansett Bay, I find it hard to take money away from the hard working middle class.
One last comment that I have already made a half dozen times before in this blog. Donald Carcieri, our past ideologue governor attacked pensions and attacked public employees every day for eight years. Carcieri took 3000 state employees out of the system and yet his final budget proposal called for a 9% increase (from $7 billion to $7.8 billion). Employees are not the problem as salary, fringe and benefits of all employees account for 17% of the entire budget on an annual basis. Public employee pensions are not bankrupting the system. Republican privatization practices are bankrupting the system (more money to their friends).
tomtoak
Walker's attempt to strip employee unions of power has nothing to do with the reality of state financial burdens. Everyone needs to read the current McClatchy Report; Why employee pensions aren't bankrupting states. This is a great report that underscores the true reason why Republicans are trying to gain political capital by scapegoating public employees and attacking their pensions.
In Rhode Island, our new Democratic Treasurer, Gina Raimondo has had the nerve to say that she believes that retirees may not own their pensions nor do state employees. Oh really: Who the hell do you think put the money into the fund? Employees put 8.75% of their income and school teachers put 9.5% into the system over their careers of 30+ years, and the state matches that whenever they feel like it (this is the problem), and now you say that system is taxpayer money? Gina Raimondo, you border on delusional and do not belong in a position to speak for the citizens of a free country! You will not get my vote next time around and never will get my vote unless you apologize to all of the hard working public employees across this state.
Governor Lincoln Chafee will be proposing steps to help secure the state's financial position tomorrow. One recommendation will be to increase state employee and teacher contributions to 11.5% for an interim period until a comprehensive pension overhaul can be achieved. Rhode Island employee contributions are already the highest in the Nation and now the move is to increase that by 2% for teachers and 2.75% for state employees?
At first I was really angry at the idea, then I realized it may well be brilliant. The Congress just reduced contributions to Social Security for workers and employers by 2%. This is something that Obama should never have agreed to do. Republicans will use this loss of revenue to argue for privatization of social security. Chafee's plan will result in little change in take home income for public employees that pay into state retirement as well as social security. Money that formerly was going to the Federal Government will now accrue towards the state's retirement plan.
Union workers do not want their pensions decreased. My guess is that most union workers will see this as a step toward fully funding the promises. I must admit though, until the state of Rhode Island taxes all of the yachts in Narragansett Bay, I find it hard to take money away from the hard working middle class.
One last comment that I have already made a half dozen times before in this blog. Donald Carcieri, our past ideologue governor attacked pensions and attacked public employees every day for eight years. Carcieri took 3000 state employees out of the system and yet his final budget proposal called for a 9% increase (from $7 billion to $7.8 billion). Employees are not the problem as salary, fringe and benefits of all employees account for 17% of the entire budget on an annual basis. Public employee pensions are not bankrupting the system. Republican privatization practices are bankrupting the system (more money to their friends).
tomtoak
Wednesday, August 25, 2010
Donald Carcieri and his Tax on us all!!!!!
Sitting on the deck of a popular East Greenwich restaurant with East Greenwich Bay in the background, I look out over a "sea" of recreational boats. The toys of the rich. Our proud Governor smiles at the thought that these great folks deserve no taxes, sales tax or excise tax, on these "very necessary" cornerstones of our society. I don't fault the wealthy for playing in Narragansett Bay, if I had the money, I would proudly own one of those 42 footers. Why in the world should taxes be excused on these toys when the middle class citizens in this state have to pay all applicable taxes on their camping vehicles. Is not camping a viable component of our economy?
I'm sick and tired of the Republican mantra - "fight for the rich". The rich are not paying their fair share in this country and I can't point to one f____g job created in this state with that strategy. Somebody please explain to me why the Rhode Island budget grew 9% last year ($7 billion to $7.8 billion) at a time when our state is bleeding? Please explain to me how this can be when the state has eliminated 3000 workers, slashed pensions, and furloughed remaining state workers? Please explain to me why aid to cities and towns have been cut by millions of dollars when the budget for the state has grown by 9%? Please explain to me why the wealthiest among us are seeing their taxes slashed yet again; when the last time Carcieri did it, our unemployment rate continued to spiral out of control? Please explain to me why anyone buys the argument that the only way to job growth is to cut taxes on the wealthy? Somebody please explain to me why Donald Carcieri is still governor? Also, somebody explain to me why the conservative "nut job" radio commentators support this idiot and his idiotic financial policies?
Most of all; somebody explain to me why middle class, well meaning citizens don't get it? Why are so many supportive of such destructive fiscal policy? Can't the middle class draw the obvious conclusion when they see their vehicle excise taxes skyrocket across the state?
Four more months of this tragedy of leadership in our state; and as he's going out the door, he's giving away another sweet heart deal to a political pal, Curt Schilling. That's a $75 million dollar sweet heart deal that won't change a thing.
I have answers to all of the questions I posed; however, I think asking the questions is more important. If people of Rhode Island want some thought put into how this government is run, they need to vote for a person who thinks with his brain and not his bank account! Linc Chafee is the candidate of choice from my perspective. He has not been afraid to call outrageous public policy, "outrageous". Donald Carcieri and the Republican philosophy in this nation is outrageous.
I think it is finally time for the "Big Audit"! Rhode Islanders will know what I'm talking about.
tomtoak
I'm sick and tired of the Republican mantra - "fight for the rich". The rich are not paying their fair share in this country and I can't point to one f____g job created in this state with that strategy. Somebody please explain to me why the Rhode Island budget grew 9% last year ($7 billion to $7.8 billion) at a time when our state is bleeding? Please explain to me how this can be when the state has eliminated 3000 workers, slashed pensions, and furloughed remaining state workers? Please explain to me why aid to cities and towns have been cut by millions of dollars when the budget for the state has grown by 9%? Please explain to me why the wealthiest among us are seeing their taxes slashed yet again; when the last time Carcieri did it, our unemployment rate continued to spiral out of control? Please explain to me why anyone buys the argument that the only way to job growth is to cut taxes on the wealthy? Somebody please explain to me why Donald Carcieri is still governor? Also, somebody explain to me why the conservative "nut job" radio commentators support this idiot and his idiotic financial policies?
Most of all; somebody explain to me why middle class, well meaning citizens don't get it? Why are so many supportive of such destructive fiscal policy? Can't the middle class draw the obvious conclusion when they see their vehicle excise taxes skyrocket across the state?
Four more months of this tragedy of leadership in our state; and as he's going out the door, he's giving away another sweet heart deal to a political pal, Curt Schilling. That's a $75 million dollar sweet heart deal that won't change a thing.
I have answers to all of the questions I posed; however, I think asking the questions is more important. If people of Rhode Island want some thought put into how this government is run, they need to vote for a person who thinks with his brain and not his bank account! Linc Chafee is the candidate of choice from my perspective. He has not been afraid to call outrageous public policy, "outrageous". Donald Carcieri and the Republican philosophy in this nation is outrageous.
I think it is finally time for the "Big Audit"! Rhode Islanders will know what I'm talking about.
tomtoak
Wednesday, June 23, 2010
A Few Thoughts to Ponder!
Where the hell is T Boone Pickens when you need him?
Those readers outside of Rhode Island are probably not aware of the antics of the RI Commissioner of Education, Deborah Gist, even though she was named by Time Magazine as one of the top 100 influential people. She supported the firing of the staff of Central Falls High School because of poor classroom performance. She needed to make a name for herself so why not cause a national incident? Obama should be ashamed of himself for supporting the decision. It's not that change is required, its just that a Central Falls diploma is now downgraded by every college in this nation because of the negative publicity. Talk about a disservice to the students!!! Well, our little Republican Commissioner is smiling broadly at her new found fame and saw that it was necessary to pay a speech writer $10,000 to prepare her 15 minute speech to the RI legislature. Now that's Republican thinking. Please; anyone that is listening, I will write your speech for $5000!!!
The problem with the military's position on "Don't Ask, Don't Tell" is that it really eliminates the possibility of future drafts during national emergencies. Anyone could easily avoid the draft by simply saying; "I'm Gay"!!!
They have finally done it in Rhode Island! Our Governor Donald Carcieri has been trying for 8 years to lower or eliminate taxes for the wealthiest citizens. The top taxation rate has been reduced from around 9% down to around 5%. What this means is that all of the middle class citizens in this state will be paying the bills for years to come while the millionaires reduce their taxes by thousands each year. Further, Carcieri's reductions in community support will cause the middle class to pay higher property taxes. I'm smart enough to see the stupidity. Unfortunately, all of the radio talking heads and a lot of the middle class are just too dumb to understand. When their taxes skyrocket, they will blame Obama. Of course the RI Democrats played right along so I have to lay the blame squarely in their lap. The Democrats had the numbers to say "no"!! The Democrats are just greedy little fools; those in power are very well off!
For all of you Republican libertarians out there that hate big government; did you see Orin Hatch's latest proposal? Mr Republican wants to keep government off of your back so now if you are unemployed, he wants to drug test you. Now that's what I call "freedom and liberty"!!! How about "justice for all"!!!!!!
I enjoyed the Democratic reception a few weeks ago here in RI for Governor Tim Kaine from Virginia who is the national Democratic Party Chair. He does know a little about forestry as I spoke to him about forestry in his state.
I helped Linc Chafee move his office from Pawtucket to Warwick a week ago Friday. I had a great time and I like the way he goes about getting a job done. Deborah Gist would have put out a contract and paid $50,000 for the move.
Don't forget; I'll write your speech for you - $5000 for 15 minutes if you are a Democrat - $10,000 if you are a Republican. Come on Republicans, you will really enjoy my speech
Keep smiling if you think the Republicans are on your side.
tomtoak
Those readers outside of Rhode Island are probably not aware of the antics of the RI Commissioner of Education, Deborah Gist, even though she was named by Time Magazine as one of the top 100 influential people. She supported the firing of the staff of Central Falls High School because of poor classroom performance. She needed to make a name for herself so why not cause a national incident? Obama should be ashamed of himself for supporting the decision. It's not that change is required, its just that a Central Falls diploma is now downgraded by every college in this nation because of the negative publicity. Talk about a disservice to the students!!! Well, our little Republican Commissioner is smiling broadly at her new found fame and saw that it was necessary to pay a speech writer $10,000 to prepare her 15 minute speech to the RI legislature. Now that's Republican thinking. Please; anyone that is listening, I will write your speech for $5000!!!
The problem with the military's position on "Don't Ask, Don't Tell" is that it really eliminates the possibility of future drafts during national emergencies. Anyone could easily avoid the draft by simply saying; "I'm Gay"!!!
They have finally done it in Rhode Island! Our Governor Donald Carcieri has been trying for 8 years to lower or eliminate taxes for the wealthiest citizens. The top taxation rate has been reduced from around 9% down to around 5%. What this means is that all of the middle class citizens in this state will be paying the bills for years to come while the millionaires reduce their taxes by thousands each year. Further, Carcieri's reductions in community support will cause the middle class to pay higher property taxes. I'm smart enough to see the stupidity. Unfortunately, all of the radio talking heads and a lot of the middle class are just too dumb to understand. When their taxes skyrocket, they will blame Obama. Of course the RI Democrats played right along so I have to lay the blame squarely in their lap. The Democrats had the numbers to say "no"!! The Democrats are just greedy little fools; those in power are very well off!
For all of you Republican libertarians out there that hate big government; did you see Orin Hatch's latest proposal? Mr Republican wants to keep government off of your back so now if you are unemployed, he wants to drug test you. Now that's what I call "freedom and liberty"!!! How about "justice for all"!!!!!!
I enjoyed the Democratic reception a few weeks ago here in RI for Governor Tim Kaine from Virginia who is the national Democratic Party Chair. He does know a little about forestry as I spoke to him about forestry in his state.
I helped Linc Chafee move his office from Pawtucket to Warwick a week ago Friday. I had a great time and I like the way he goes about getting a job done. Deborah Gist would have put out a contract and paid $50,000 for the move.
Don't forget; I'll write your speech for you - $5000 for 15 minutes if you are a Democrat - $10,000 if you are a Republican. Come on Republicans, you will really enjoy my speech
Keep smiling if you think the Republicans are on your side.
tomtoak
Tuesday, January 5, 2010
Linc Chafee for Governor
Lincoln Chafee announced his intention to run for Governor of Rhode Island yesterday. I'm sorry I missed the official kick-off, but I had a long time friend spending a few days with me. Linc chose a most unusual way to announce his candidacy. He spoke directly to the people of Rhode Island. You won't find others in the race that will speak honestly.
Linc started his campaign by outlining a sales-tax plan that will result in more goods being covered by a two-tiered sales tax program. He was right when he suggests that people can make personal decisions to buy things, but increasing the property tax in this state leaves people without choices. Practical, honest and sincere are words that come to mind when reading the news of his announcement. Linc will be far more able to achieve this structural change than the right wing plans designed to end government as we know it. I think Linc Chafee will be able to get some things done.
What Rhode Islanders constantly hear from the Republicans in this state is that Rhode Island has the 2nd highest sales tax rate in the country. What Republicans fail to tell you is that most states have sales tax on a much wider variety of goods than does Rhode Island. Maybe Linc can actually get some sales tax out of the state's richest citizens that line Narragansett Bay with their yachts.
The Republicans will continue to tell us that government needs to be smaller. They have an uncanny ability to never look at the big picture - the bottom line so to speak. While the Carcieri crowd has attacked state employees and now municipal employees as being the problem, they continue to grow the budget in unprecedented ways (9% increase this year). Republican spending is all about putting our money in the hands of their few connected friends. Once again, I will reflect on the bottom line of the state's budget. Carcieri's budget called for $7.8 billion, an increase of almost $1 billion from the previous year. The entire cost of paying state employee salaries, benefits, pensions, etc. is approximately $1.3 billion annually, a mere 17% of the entire state budget.
So to you Carcieri lovers out there that think that he knows what's wrong with government, think again! There's plenty of cost savings to be found, but don't expect the Republicans to find it because they are not going to take it away from their well connected friends that spend half the year in Florida. Lincoln Chafee appreciates the work of state and municipal employees and understands the need to balance government's needs with the needs of those that pay the bills.
Lincoln Chafee for Governor!
tomtoak
Linc started his campaign by outlining a sales-tax plan that will result in more goods being covered by a two-tiered sales tax program. He was right when he suggests that people can make personal decisions to buy things, but increasing the property tax in this state leaves people without choices. Practical, honest and sincere are words that come to mind when reading the news of his announcement. Linc will be far more able to achieve this structural change than the right wing plans designed to end government as we know it. I think Linc Chafee will be able to get some things done.
What Rhode Islanders constantly hear from the Republicans in this state is that Rhode Island has the 2nd highest sales tax rate in the country. What Republicans fail to tell you is that most states have sales tax on a much wider variety of goods than does Rhode Island. Maybe Linc can actually get some sales tax out of the state's richest citizens that line Narragansett Bay with their yachts.
The Republicans will continue to tell us that government needs to be smaller. They have an uncanny ability to never look at the big picture - the bottom line so to speak. While the Carcieri crowd has attacked state employees and now municipal employees as being the problem, they continue to grow the budget in unprecedented ways (9% increase this year). Republican spending is all about putting our money in the hands of their few connected friends. Once again, I will reflect on the bottom line of the state's budget. Carcieri's budget called for $7.8 billion, an increase of almost $1 billion from the previous year. The entire cost of paying state employee salaries, benefits, pensions, etc. is approximately $1.3 billion annually, a mere 17% of the entire state budget.
So to you Carcieri lovers out there that think that he knows what's wrong with government, think again! There's plenty of cost savings to be found, but don't expect the Republicans to find it because they are not going to take it away from their well connected friends that spend half the year in Florida. Lincoln Chafee appreciates the work of state and municipal employees and understands the need to balance government's needs with the needs of those that pay the bills.
Lincoln Chafee for Governor!
tomtoak
Tuesday, November 24, 2009
Wisdom from the Woods XI
Wisdom from the Woods is an occasional column that outlines complex issues.
What the hell is President Obama going to do about employment issues this country is facing? Today I am bringing my class to a favorite spot in the woods to discuss recreation and the problems associated with maintaining public lands. You see; governments are not providing the human resources required to maintain the millions of acres in the conservation system. My favorite spot is a great place to demonstrate the work of the Civilian Conservation Corps (CCC) from the 1930s.
In today's world nobody seems to want to get their hands dirty. Nobody wants to foul up the keyboards of their computers. We do need to have people working in our woodlands as the CCC infrastructure that is still providing services to this day is now starting to fail. Our public lands are in deplorable shape and Governor Nothing (Carcieri) could care less. So we have a problem maintaining our conservation lands and we have a severe unemployment problem. Can't we put the 2 things together again.
I'm not suggesting that we recreate the CCC; but I do believe that there is a ready resource of talented people that could lend a hand to conservation agencies across this country. I think people can be put to work without spending much money. Today's unemployment benefits are continually extended as they should be. I contend that the first 6 months of benefits should remain as it is. After 6 months, why not utilize that unemployed work force to improve conservation infrastructure and to assist natural resource agencies collect data for critical monitoring programs. In other words, keep providing unemployment benefits but require individuals to work 3 days a week for those benefits. The remaining 2 days a week could still be used for employment search. There are many other areas of government that could use a helping hand.
Some will say that searching for work is a full time job. In a normal economy I would argue; yes. Today we do not have a normal economy and let's be realistic, many unemployed folks don't want to find that job until the benefits run out. In my former role I could have put dozens of people to work and I did during the downturn through the Carter years. The Emergency Job Unemployment Act(EJUA) as well as the CETA program provided multiple opportunities to get conservation work done. If the unemployed are getting paid anyway, let's find a way to utilize their talents.
tomtoak
Tuesday, September 1, 2009
Governor Don Carcieri's incredible lack of leadership
Incredible! Unbelievable! Arrogant! Ignorant! Donald Carcieri! I understand that nobody likes a person that is just out there throwing names around with negative connotations. I'm sorry, but I'm mad. Donald Carcieri's latest attempt to attack state employees and demonize them is somehow worthy of a name of two.
Carcieri has called for Rhode Island government to shut down for12 days over the next 10 months in hopes of saving over $21 million at the expense of the state workers. Mr. "Business Man" should know that he will be taking $21 million out of the hands of small businesses around the state, as this loss of income for the employees represents disposable income. State employees will just have to put off buying that new refrigerator or TV or whatever. The employees will be cash strapped for the next year and will have to make significant sacrifices. They will continue to pay mortgage, taxes and other essentials, but will be severely limited in their disposable income. Restaurants, retail stores and other small businesses will enjoy the loss.
What's truly funny about some Republicans is that they continue to support Carcieri's position; after all, every Republican likes to scape-goat government. Blame the state workers! Go ahead - you brilliant thinkers that own small businesses throughout the state - go ahead and support Carcieri's handling of government. Your support is costing you money and many of you are just too stupid to realize it.
Of course, let's not forget that the biggest problem with the state today is the lack of revenue. Carcieri's plan just reduced revenue to the state by approximately $3.5 million (based on sales tax and income tax); but this is small compared to the financial loss to Rhode Island businesses. At every turn during the Carcieri years, our Governor chose the path of tearing apart state government. Carcieri has reduced the state work force to perilous levels. Federal money and Federal programs are being lost in this state because there are not enough employees in critical areas to get the job done. Carcieri does not care.
Carcieri has attacked the employee pension system with great success. With remodeled pensions, 3,000 fewer workers and no pay increases, you would think that Carcieri is saving all of us a lot of money. Think again! Go the the bottom line! Governor Donald Carcieri has just proposed a 9% budget increase for the next state fiscal year. Carcieri's budget request of $7.8 billion dollars is close to a $1 billion dollar increase over the previous year. While some of this represents stimulus money, Rhode Island can ill afford to follow this path. In Carcieri's new budget year, state employee salaries, benefit packages and pensions will represent approximately 17% of the entire $7.8 billion dollar budget.
Where the hell is the money going, Mr. Carcieri? How can you lock out state workers for 12 days at the same time you are increasing state spending by 9%? How can you raise state spending by 9% when the state is facing it's worst economic crisis since the Great Depression? Your leadership style is likened to Herbert Hoover on steroids. You have no clue. Carcieri's leadership and policy direction is killing the state.
tomtoak
Carcieri has called for Rhode Island government to shut down for12 days over the next 10 months in hopes of saving over $21 million at the expense of the state workers. Mr. "Business Man" should know that he will be taking $21 million out of the hands of small businesses around the state, as this loss of income for the employees represents disposable income. State employees will just have to put off buying that new refrigerator or TV or whatever. The employees will be cash strapped for the next year and will have to make significant sacrifices. They will continue to pay mortgage, taxes and other essentials, but will be severely limited in their disposable income. Restaurants, retail stores and other small businesses will enjoy the loss.
What's truly funny about some Republicans is that they continue to support Carcieri's position; after all, every Republican likes to scape-goat government. Blame the state workers! Go ahead - you brilliant thinkers that own small businesses throughout the state - go ahead and support Carcieri's handling of government. Your support is costing you money and many of you are just too stupid to realize it.
Of course, let's not forget that the biggest problem with the state today is the lack of revenue. Carcieri's plan just reduced revenue to the state by approximately $3.5 million (based on sales tax and income tax); but this is small compared to the financial loss to Rhode Island businesses. At every turn during the Carcieri years, our Governor chose the path of tearing apart state government. Carcieri has reduced the state work force to perilous levels. Federal money and Federal programs are being lost in this state because there are not enough employees in critical areas to get the job done. Carcieri does not care.
Carcieri has attacked the employee pension system with great success. With remodeled pensions, 3,000 fewer workers and no pay increases, you would think that Carcieri is saving all of us a lot of money. Think again! Go the the bottom line! Governor Donald Carcieri has just proposed a 9% budget increase for the next state fiscal year. Carcieri's budget request of $7.8 billion dollars is close to a $1 billion dollar increase over the previous year. While some of this represents stimulus money, Rhode Island can ill afford to follow this path. In Carcieri's new budget year, state employee salaries, benefit packages and pensions will represent approximately 17% of the entire $7.8 billion dollar budget.
Where the hell is the money going, Mr. Carcieri? How can you lock out state workers for 12 days at the same time you are increasing state spending by 9%? How can you raise state spending by 9% when the state is facing it's worst economic crisis since the Great Depression? Your leadership style is likened to Herbert Hoover on steroids. You have no clue. Carcieri's leadership and policy direction is killing the state.
tomtoak
Tuesday, June 9, 2009
Governor Donald Carcieri is the Deficit King
There was a recent mention in a Providence Journal column regarding the budget deficit that Governor Donald Carcieri's own office is running in this recession. Seems like the Republican that is more than willing to jump all over the Democrats for deficit spending has been leading the way. It sort of reminds me of all of the deficit spending during the Bush years. Mark Sanford of South Carolina, the nation's leading hypocrite is also called to mind.
What has gone on in our own Governor's office is no joke. First of all; I can't believe for the life of me, why the Governor's office needs $4.7 million per year. Rhode Island is such a small state that no Governor needs more than a handful of employees to get the job done. This much money in Rhode Island today translates into over 50 employees. Are you kidding me? I can see the office employing 15 employees and a few interns. Under no circumstances, should that office be costing citizens more than $1.5 million per year.
Now our business minded governor is suppose to have some sense when it comes to managing the people's money. He certainly has gone out of his way to take what he can away from the dedicated state employees that are not part of his office. Carcieri's office running a projected $589,218 deficit for the current fiscal year is about the most outrageous news I've heard emanating from the State House. I think it's criminal!
Let me put a little perspective on this. Multiple divisions within the Department of Environmental Management (DEM) operated on far less than this. A good example is the Environmental Police. Last I knew, the number of officers covering the entire state is in the vicinity of 35. That's 35 employees to handle duties on the Bay and throughout Rhode Island, 24 hours a day, 365 days a year. Environmental Police play a key role in keeping our food supply safe. Heck, the DEM Environmental Police force is only half the size of my town's Police Department.
The Governor's Office has become so bloated under Carcieri's leadership that the Legislature really needs to step up to the plate here. Carcieri is very reluctant to entertain hiring anybody outside of his immediate circle; however, when it is something that he personally wants, he will pursue it at the expense of everyone else. We don't need a Steve Cass employed, Mr. Carcieri. His job is meaningless.
I urge the Legislature to start cutting the 2010 budget by reducing the Governor's Office by $3.2 million to a more respectable and adequate $1.5 million. I would suggest privatizing the Governor's Office because Mr. Carcieri likes that strategy, but we all know that it would end up costing us more.
tomtoak
What has gone on in our own Governor's office is no joke. First of all; I can't believe for the life of me, why the Governor's office needs $4.7 million per year. Rhode Island is such a small state that no Governor needs more than a handful of employees to get the job done. This much money in Rhode Island today translates into over 50 employees. Are you kidding me? I can see the office employing 15 employees and a few interns. Under no circumstances, should that office be costing citizens more than $1.5 million per year.
Now our business minded governor is suppose to have some sense when it comes to managing the people's money. He certainly has gone out of his way to take what he can away from the dedicated state employees that are not part of his office. Carcieri's office running a projected $589,218 deficit for the current fiscal year is about the most outrageous news I've heard emanating from the State House. I think it's criminal!
Let me put a little perspective on this. Multiple divisions within the Department of Environmental Management (DEM) operated on far less than this. A good example is the Environmental Police. Last I knew, the number of officers covering the entire state is in the vicinity of 35. That's 35 employees to handle duties on the Bay and throughout Rhode Island, 24 hours a day, 365 days a year. Environmental Police play a key role in keeping our food supply safe. Heck, the DEM Environmental Police force is only half the size of my town's Police Department.
The Governor's Office has become so bloated under Carcieri's leadership that the Legislature really needs to step up to the plate here. Carcieri is very reluctant to entertain hiring anybody outside of his immediate circle; however, when it is something that he personally wants, he will pursue it at the expense of everyone else. We don't need a Steve Cass employed, Mr. Carcieri. His job is meaningless.
I urge the Legislature to start cutting the 2010 budget by reducing the Governor's Office by $3.2 million to a more respectable and adequate $1.5 million. I would suggest privatizing the Governor's Office because Mr. Carcieri likes that strategy, but we all know that it would end up costing us more.
tomtoak
Wednesday, May 20, 2009
Rhode Island's idiotic leadership and other thoughts
Before I begin, just a comment on our last two polls. In last week's poll; should the government get involved in bailing out newspapers? The top response was; no, not ever, 85%; Maybe, 10%; yes, 5%. In this weeks poll; who will be the Republican nominee for president in 2012? Seems like Joe the Plumber is the head of his party, 44%; Tim Pawlenty, 24%; Mitt Romney, 8%; None of the above, 8%; Rush Limbaugh, 4%; Jeb Bush, 4%; Bobby Jindal, 4%; Charlie Crist, 4%; Sarah Palin, 0%; Michael Steele, 0%.
Rhode Island is coming down to the wire on this year's fiscal budget and the leadership could best be described as vacuous. Maybe that's a good thing though; because the fewer decisions Carcieri and company make, the better off we all are. Carcieri is hell bent on leading us down the Republican road to ruin. I just hope he takes down the Republican radio talk shows with him. Unfortunately, many Democrats are along for the ride.
Just yesterday, radio talk was aghast at the notion that a forced pay holiday for state workers demonstrates the outrageous costs of state workers. The one day holiday will save approximately $2.4 million. All day long the stupid talking heads were trying to make their point. Can any of you idiots on the radio and in the Governor's office learn how to use a simple calculator. The state budget is $7 billion dollars; divide that by 365 days in a year and you get to see how much money Rhode Island is spending each day. Over $19 million is spent each day by our government and only $2.4 million to pay the workers.
I get it Mr. Carcieri and you other business brains; you have a fiscal crisis and you are always pointing the finger at state employees. That's right, keep trying to balance the state budget by stealing from our state employees. Mr. Carcieri; stealing from the future of our state employees and deamonizing them has been your main platform throughout your terms as Governor. How stupid and callous your leadership has been. Hell, why don't you just lay off all of the state employees; if you did, you still could not balance the state's budget.
Now the short-sighted leadership team will continue to work hard to dismantle state employee and teacher pensions. Fine Mr. Carcieri; if you want to run the state more like a business, then where the hell is my "retension bonus"? Where is my bonus for the years that I brought in hundreds of thousands of additional Federal dollars? Why can't I be paid at a competitive salary commensurate with my peers in the private sector and the Federal sector for that matter? If you think you have all of the answers to these questions; you don't!
Governor Carcieri; a solid and secure pension system is the best way to reward folks that give themselves to their jobs, their community and their state. The public employees are paying their fair share and they always have; the government needs to keep its end of the bargain. Changing the pension system will significantly reduce the state's fiscal condition within a few years. Build for the future, don't destroy the future.
tomtoak
Rhode Island is coming down to the wire on this year's fiscal budget and the leadership could best be described as vacuous. Maybe that's a good thing though; because the fewer decisions Carcieri and company make, the better off we all are. Carcieri is hell bent on leading us down the Republican road to ruin. I just hope he takes down the Republican radio talk shows with him. Unfortunately, many Democrats are along for the ride.
Just yesterday, radio talk was aghast at the notion that a forced pay holiday for state workers demonstrates the outrageous costs of state workers. The one day holiday will save approximately $2.4 million. All day long the stupid talking heads were trying to make their point. Can any of you idiots on the radio and in the Governor's office learn how to use a simple calculator. The state budget is $7 billion dollars; divide that by 365 days in a year and you get to see how much money Rhode Island is spending each day. Over $19 million is spent each day by our government and only $2.4 million to pay the workers.
I get it Mr. Carcieri and you other business brains; you have a fiscal crisis and you are always pointing the finger at state employees. That's right, keep trying to balance the state budget by stealing from our state employees. Mr. Carcieri; stealing from the future of our state employees and deamonizing them has been your main platform throughout your terms as Governor. How stupid and callous your leadership has been. Hell, why don't you just lay off all of the state employees; if you did, you still could not balance the state's budget.
Now the short-sighted leadership team will continue to work hard to dismantle state employee and teacher pensions. Fine Mr. Carcieri; if you want to run the state more like a business, then where the hell is my "retension bonus"? Where is my bonus for the years that I brought in hundreds of thousands of additional Federal dollars? Why can't I be paid at a competitive salary commensurate with my peers in the private sector and the Federal sector for that matter? If you think you have all of the answers to these questions; you don't!
Governor Carcieri; a solid and secure pension system is the best way to reward folks that give themselves to their jobs, their community and their state. The public employees are paying their fair share and they always have; the government needs to keep its end of the bargain. Changing the pension system will significantly reduce the state's fiscal condition within a few years. Build for the future, don't destroy the future.
tomtoak
Thursday, May 7, 2009
Senator Sheldon Whitehouse Steps Up!
Rhode Island has something to be proud of at this point in time with the decision of Senator Sheldon Whitehouse to conduct torture hearings in Congress. It's hard to believe that Whitehouse had to be the point person for this egregious abuse of power during the Bush administration. Whitehouse, as Chair of the Senate Judiciary Committee's Subcommittee on Administrative Oversight and the Courts, has called for his first hearing on May 13.
I think it's unconscionable that Eric Holder has not taken some action in this regard and I'm disappointed in the Obama administration for not pursuing truth and justice. While I feel that a special prosecutor would be appropriate, I would not want to see a Ken Starr fiasco. We do not need a multi-million dollar witch hunt that in the end, proves nothing. We do need to find resolution on this issue because there needs to be a clear incentive to never let this happen again. We as Americans, can never allow the likes of Dick Cheney to grab the reigns of power again. I'm saying this; not because I have some affinity towards the enemy, but because I have affinity for Americans fighting for this country across the globe. Exposing the misdeeds and illegal acts of the Bush administration is the giant step that is necessary to ensure America's continuing leadership in the world, as well as a step towards protecting our own fighting men and women.
I do not know Sheldon Whitehouse, but I've not been happy with him at times while he served in state government here in Rhode Island. I always thought that the law suit he brought as Attorney General against the major paint companies for selling lead paint was a real stretch. In the end, Rhode Island spent untold millions to prosecute a case that was overturned by the State Supreme Court. I thought that years of wasted financial resources was going to be his legacy to all Rhode Islanders. Additionally, I could never understand how any person could work so close to former Governor Bruce Sundlun for as long as Sheldon did. Sundlun was the most arrogant leader for Rhode Island in history. Carcieri is not arrogant in the same way as Bruce, he is just totally void of leadership ability. I always thought that Sheldon needed to, "man up", and tell Bruce Sundlun to "go pound sand." Maybe he did and we just didn't see it.
Well; Sheldon, I guess I have to say that you just, "manned up". My only fear at this point is that years go by, millions are spent, and in the end there is no justice. You can't let that happen this time. Dot the i's and cross all of the t's; and get it right. This country needs to come to terms with this era of lost patriotism.
For any friends in the Sociopath Party that think this direction is dangerous for the country; you are wrong; dead wrong! The most dangerous path for this country is to not move to correct Bush administration lawlessness. It's just unfortunate that a rookie U.S. Senator has to become the face of justice. I'm ashamed of those that have not, "manned up". To those Republicans and Democrats that seek truth; thank you!
tomtoak
I think it's unconscionable that Eric Holder has not taken some action in this regard and I'm disappointed in the Obama administration for not pursuing truth and justice. While I feel that a special prosecutor would be appropriate, I would not want to see a Ken Starr fiasco. We do not need a multi-million dollar witch hunt that in the end, proves nothing. We do need to find resolution on this issue because there needs to be a clear incentive to never let this happen again. We as Americans, can never allow the likes of Dick Cheney to grab the reigns of power again. I'm saying this; not because I have some affinity towards the enemy, but because I have affinity for Americans fighting for this country across the globe. Exposing the misdeeds and illegal acts of the Bush administration is the giant step that is necessary to ensure America's continuing leadership in the world, as well as a step towards protecting our own fighting men and women.
I do not know Sheldon Whitehouse, but I've not been happy with him at times while he served in state government here in Rhode Island. I always thought that the law suit he brought as Attorney General against the major paint companies for selling lead paint was a real stretch. In the end, Rhode Island spent untold millions to prosecute a case that was overturned by the State Supreme Court. I thought that years of wasted financial resources was going to be his legacy to all Rhode Islanders. Additionally, I could never understand how any person could work so close to former Governor Bruce Sundlun for as long as Sheldon did. Sundlun was the most arrogant leader for Rhode Island in history. Carcieri is not arrogant in the same way as Bruce, he is just totally void of leadership ability. I always thought that Sheldon needed to, "man up", and tell Bruce Sundlun to "go pound sand." Maybe he did and we just didn't see it.
Well; Sheldon, I guess I have to say that you just, "manned up". My only fear at this point is that years go by, millions are spent, and in the end there is no justice. You can't let that happen this time. Dot the i's and cross all of the t's; and get it right. This country needs to come to terms with this era of lost patriotism.
For any friends in the Sociopath Party that think this direction is dangerous for the country; you are wrong; dead wrong! The most dangerous path for this country is to not move to correct Bush administration lawlessness. It's just unfortunate that a rookie U.S. Senator has to become the face of justice. I'm ashamed of those that have not, "manned up". To those Republicans and Democrats that seek truth; thank you!
tomtoak
Wednesday, April 15, 2009
Tea Party Tax Nuts Have it all Wrong
Today is the day of the Republican Tea Parties to be held throughout the land. I know; some of you may be saying it's not the Republicans, but it is. In city after city, dozens of people will show up to scream at the Obama administration because of their taxes; taxes by the way, that were just lowered for 95% of the population. OK, you're mad as hell and you're going to do something about it; right?Today on Republican radio and on the news tonight, we will hear citizens saying that government is at fault and is always in the way of business. Truth be known; we are actually in the mess we are in because government was not in the way of business, and I mean big business (I'm not talking about small business here). We will hear talking heads try to educate us about the importance of growing the economy, lowering business taxes and personal taxes, so freedom and liberty is saved. What most people still don't understand is that whenever the economy grows and businesses grow, so do your taxes.
If you are thinking that Donald Carcieri in Rhode Island has it right by eliminating corporate taxation, and if you think that this will improve your personal economic situation, you are sorely mistaken. I think most people attending the tea parties live by this creed as if it were a religion. They are wrong.
Around the year 2000, the Southern New England Forest Consortium, Inc. (SNEFCI), commissioned a study to address common misconceptions regarding commercial and industrial development and the impact it has on community taxation. The study took all Rhode Island communities, ranked them according to fair market value of commercial and industrial taxable property and divided the state into 4 equal-sized groups. The effective tax rates were then calculated for these groups and compared to commercial and industrial tax base.
As you can see in the graph from the report (Figure 5.), the communities with the smallest commercial and industrial tax base had the smallest effective tax rate of $15.62.
As the commercial and industrial tax base grew, so does the effective tax rate. We all want to see business flourish and we need jobs for our children. I'm not arguing this point. I just want people to stop fooling themselves. As communities grow and business grows, so do your taxes. People need to stop making claims that turning this economy around and growing business will lower our taxes. It never has and it never will.From the same report, SNEFCI compared open land in the aggregated communities and compared that percentage with the effective tax rate. As you can see from the graph in the report (Figure 8.), communities with very little open land had the highest tax rate of $26.02, compared to the communities with the most open space, that enjoyed an effective tax rate of $18.11.
Think about it logically, the highest taxes in this country are found in New York City, the most populated business capital in the world. I don't know where the community is that enjoys the smallest property taxes in this country, but I'm sure it's a rural community that has been able to avoid the infrastructure costs associated with commercial and industrial development. We need business, we need jobs, we want our kids to have a secure future, but stop dreaming of a world with no taxes. As the economy grows, your taxes will grow.SNEFCI commissioned another well known study, The Cost of Community Services study that won regional awards as well as a national award. The Executive summary explains the details. If you want to track back to my March 10, 2009 post, please do so. In this post I describe in detail exactly why costs in communities increase with commercial and industrial development. Enjoy the tea parties, but understand that you have diminished the history of the country. The Boston Tea Party was all about, "taxation without representation". You all have plenty of representation; that we don't need more of. (You can click on the graphs to expand them)
tomtoak
Thursday, March 12, 2009
Carcieri's Budget Slammed by Republicans
You heard it here first. I could not understand how any reasonable person could except the future vision of Rhode Island as presented by our Governor. Today we learn that Democrats and Republicans alike slammed Carcieri's proposed budget (Providence Journal Article) for the next fiscal year. The budget was so bad that no Republican would carry the bill forward in the state legislature. Carcieri was put in the awkward position of having no sponsor. This must be a first for Rhode Island government. Amen.
Here is what the minority leader, Bob Watson had to say; "I am disappointed that this budget apparently is reliant upon raising taxes in order to balance it". Bob Watson was concerned about the impacts to the middle class. Understand that the Governor pitched his budget under the cloak of cutting taxes. Even Republicans recognized that the vast middle-class was going to suffer the consequences of cutting the taxes for the wealthy. I truly believe that our Governor envisions himself as the "great tax eliminator". How the hell does he think government is going to work in the future. His vision is to lay the burden squarely upon the middle class. We, the vast majority don't have our 30 foot yachts, which pay no annual excise tax, lined up along the shores of Narragansett Bay. I'm sure he enjoys his yacht and I know he enjoys his annual pension that exceeds $500 thousand.
Rhode Islanders will have to endure this dearth of leadership for the next year and a half. I hope that the leadership vacuum will lead to a truly great transforming figure for our State. So far, I think this has been the case on the national level. Our Country has gone through a period of reawakening during the last hellacious eight years. I hope Rhode Island can find true leadership as our Nation did.
Thank you, Rhode Island Republicans for bolstering my case.
tomtoak
Here is what the minority leader, Bob Watson had to say; "I am disappointed that this budget apparently is reliant upon raising taxes in order to balance it". Bob Watson was concerned about the impacts to the middle class. Understand that the Governor pitched his budget under the cloak of cutting taxes. Even Republicans recognized that the vast middle-class was going to suffer the consequences of cutting the taxes for the wealthy. I truly believe that our Governor envisions himself as the "great tax eliminator". How the hell does he think government is going to work in the future. His vision is to lay the burden squarely upon the middle class. We, the vast majority don't have our 30 foot yachts, which pay no annual excise tax, lined up along the shores of Narragansett Bay. I'm sure he enjoys his yacht and I know he enjoys his annual pension that exceeds $500 thousand.
Rhode Islanders will have to endure this dearth of leadership for the next year and a half. I hope that the leadership vacuum will lead to a truly great transforming figure for our State. So far, I think this has been the case on the national level. Our Country has gone through a period of reawakening during the last hellacious eight years. I hope Rhode Island can find true leadership as our Nation did.
Thank you, Rhode Island Republicans for bolstering my case.
tomtoak
Wednesday, March 11, 2009
Tax and Spend and the Cult that is Republican
Governor Carcieri released the State budget on Tuesday and I'm almost speechless. If any of you radio talk show cultists think that Carcieri is for the common man, then you need to get an immediate appointment at Butler Hospital. This proposed budget lays the groundwork for economic ruin in Rhode Island. I know that "cult" is a strong word here and I do not wish to offend any of my Republican friends. A cult can be defined as a small group that venerates a person or ideal. Seems like most cults are always after your money. I know it sounds funny because we're used to hearing Democrats accused of this behavior; but in this case, it's the Republican after our money. I hope I make my case below.
Let's go to the bottom line. A proposed $7.62 billion budget compared to last year's $6.92 billion is a 10% increase. While there is a need to budget for the economic stimulus, this budget reflects this and then some. His budget will force over 1000 additional state employees into retirement which will seriously impact the operation of government for a decade. I want to remind folks that state employee costs in this year's budget were approximately 20% of the total. State employee salaries, benefits and pensions only cost approximately $1.4 billion now. In the new budget, the state employee burden will decline to approximately 17% of the bottom line.
When this proposed budget runs into huge deficits, Carcieri will scapegoat employees again. This is what he likes to do. He will lay the blame for future deficits squarely on the backs of working people. Last year's budget costs every man, woman and child in Rhode Island $7000 annually (Federal dollars are considered here because our state also budgets Federal dollars; but that is another stupid story to tell). Next year's budget will cost $7,600 for each person.
Now; how does Carcieri's plan get to the bottom line? Let's take a close look and keep in mind how each decision will affect you, your family and your children.
The plan to lower taxes: Reduce the corporate income tax and phase out by 2014. Gee; who's going to make up the difference? Top personal income tax will drop from 9.9% to 5.5%. Gee; who's going to make up the difference? The estate tax bottom will increase to $1 million. Gee; who's going to make up the difference?
The plan to raise revenue: Increase the cigarette tax. Gee; who buys cigarettes? Raise the fee to reinstate a suspended license. Gee; what demographic does this go after? Impose a 2% tax on health care insurers. Gee; who's going to be paying for this?
The plan to lower expenditures (which is an oxymoron because expenditures increase 10%): End the 3% COLA on July 1 for all retirees. Gee; sounds like more scapegoating of public employees here and how will the State be able to function with a seriously depleted workforce? Eliminate all revenue-sharing monies for the State's cities and towns. Gee; I wonder who's going to pay for this reduction? Abolish the Pharmaceutical Assistance to the Elderly program. Gee; I wonder what's going to happen to all of these elderly people? Gee; I wonder why he's lowering any expenditure when he's proposing to raise the budget by 10%?
You know why? He has to have mechanisms to pay for all of the tax breaks to his wealthy friends and to the corporations in this State. So who is Carcieri trying to impoverish? The answer is clear; the common man, middle income citizens, the poor, you and me.
Are people going to let him get away with this? This to me embodies the sick ugly cult that is today's Republican. Republicans tend not to be about "we the people", their more about personal greed. Nothing speaks to this better than the proposed budget of Donald Carcieri.
To the cultists that follow Rhode Island talk radio. Wake up! Carcieri is not for the common man. If you need a ride to Butler Hospital, let me know.
Blog On
Let's go to the bottom line. A proposed $7.62 billion budget compared to last year's $6.92 billion is a 10% increase. While there is a need to budget for the economic stimulus, this budget reflects this and then some. His budget will force over 1000 additional state employees into retirement which will seriously impact the operation of government for a decade. I want to remind folks that state employee costs in this year's budget were approximately 20% of the total. State employee salaries, benefits and pensions only cost approximately $1.4 billion now. In the new budget, the state employee burden will decline to approximately 17% of the bottom line.
When this proposed budget runs into huge deficits, Carcieri will scapegoat employees again. This is what he likes to do. He will lay the blame for future deficits squarely on the backs of working people. Last year's budget costs every man, woman and child in Rhode Island $7000 annually (Federal dollars are considered here because our state also budgets Federal dollars; but that is another stupid story to tell). Next year's budget will cost $7,600 for each person.
Now; how does Carcieri's plan get to the bottom line? Let's take a close look and keep in mind how each decision will affect you, your family and your children.
The plan to lower taxes: Reduce the corporate income tax and phase out by 2014. Gee; who's going to make up the difference? Top personal income tax will drop from 9.9% to 5.5%. Gee; who's going to make up the difference? The estate tax bottom will increase to $1 million. Gee; who's going to make up the difference?
The plan to raise revenue: Increase the cigarette tax. Gee; who buys cigarettes? Raise the fee to reinstate a suspended license. Gee; what demographic does this go after? Impose a 2% tax on health care insurers. Gee; who's going to be paying for this?
The plan to lower expenditures (which is an oxymoron because expenditures increase 10%): End the 3% COLA on July 1 for all retirees. Gee; sounds like more scapegoating of public employees here and how will the State be able to function with a seriously depleted workforce? Eliminate all revenue-sharing monies for the State's cities and towns. Gee; I wonder who's going to pay for this reduction? Abolish the Pharmaceutical Assistance to the Elderly program. Gee; I wonder what's going to happen to all of these elderly people? Gee; I wonder why he's lowering any expenditure when he's proposing to raise the budget by 10%?
You know why? He has to have mechanisms to pay for all of the tax breaks to his wealthy friends and to the corporations in this State. So who is Carcieri trying to impoverish? The answer is clear; the common man, middle income citizens, the poor, you and me.
Are people going to let him get away with this? This to me embodies the sick ugly cult that is today's Republican. Republicans tend not to be about "we the people", their more about personal greed. Nothing speaks to this better than the proposed budget of Donald Carcieri.
To the cultists that follow Rhode Island talk radio. Wake up! Carcieri is not for the common man. If you need a ride to Butler Hospital, let me know.
Blog On
Tuesday, March 10, 2009
Carcieri Plots to Destroy Rhode Island
Governor Donald Carcieri of Rhode Island is continuing his disastrous path towards destroying this State. Today, he is releasing his proposed budget. On top of the deficit problem of greater than $400 million, our enlightened governor wants to "en-lighten" our pockets some more. It has been reported that he is actually proposing to end corporate taxes in Rhode Island. His proposals would reduce revenue to government by an estimated $130 million annually.
Carcieri's proposals have no hint of a positive outcome. Seems like it's just the Republican thing to do. Thank you Herbert Hoover! Please; somebody tell me why corporations should not be paying taxes. Please; tell me that this is somehow good, without the conservative mantra that is the nonsense of fools. My dog I think is smarter than some of the people generating these ideas. I'm not kidding!
Let me look at a local situation and you be the judge. Amgen, a local drug manufacture has been operating a facility in nearby West Greenwich, the town next door to where I live. Things looked quite well on the corporate side in 2005 (See the report of the CEO) when their drug Enbrel hit the market. Imagine what happened a few years later in 2007 (See the report from the Providence Journal) when one third of the work force had to be eliminated? Boom to bust in no time and who has been left with damage control? The citizens of Coventry, my home town.
You see, for Amgen to build where they did, many things had to happen. Those "things" are called the construction of infrastructure. Amgen sits in the next town, but the sewer line had to go through my community. Amgen provided some funding for the sewer line, but the citizens of Coventry have been left to struggle with the consequences. New sewer, new water links, roads in constant state of disrepair; but more importantly, business along Route 3 has been devastated by constant upheaval. I've spoken to business owners along this stretch and they are not happy.
So let me get this straight. Amgen, which required connection to the sewer system and sewage treatment plants, which required the development of expanded water capabilities in the community, which required the endless paving of roads (you know it never happens once), which blighted my town's business district for 3 years (Because nobody could move around all of the construction), which promised jobs for us all, which laid off 450 employees after the promise of jobs (just 2 years later), should not pay any state taxes? Is this what you're saying Governor?
Now Amgen sold product all over the world. We saw ads everywhere for their drug, Enbrel. Governor Carcieri is now telling us that, we the good citizens of Coventry, have to foot the bill all by ourselves. Can't collect any taxes here. Who cares if the government has to build sewer lines and new waste water treatment facilities and roads? Let the corporation make money from all over the world and, "to hell with Rhode Island". We will let the good people of Coventry pay the bills so Amgen can make profit from everywhere. Why should the people from Europe have to contribute to our little State?
To hell with this Republican philosophy. My taxes would be considerably less if Amgen were never built near my community. That's right; study after study has pointed to the illusion of development lowering property taxes. Governor Carcieri; my property taxes have increased because of you, your foolishness and Amgen.
"And I can see Russia; no I mean Amgen, from my backyard". I can; I really can. Sorry Sarah; I could not resist.
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Carcieri's proposals have no hint of a positive outcome. Seems like it's just the Republican thing to do. Thank you Herbert Hoover! Please; somebody tell me why corporations should not be paying taxes. Please; tell me that this is somehow good, without the conservative mantra that is the nonsense of fools. My dog I think is smarter than some of the people generating these ideas. I'm not kidding!
Let me look at a local situation and you be the judge. Amgen, a local drug manufacture has been operating a facility in nearby West Greenwich, the town next door to where I live. Things looked quite well on the corporate side in 2005 (See the report of the CEO) when their drug Enbrel hit the market. Imagine what happened a few years later in 2007 (See the report from the Providence Journal) when one third of the work force had to be eliminated? Boom to bust in no time and who has been left with damage control? The citizens of Coventry, my home town.
You see, for Amgen to build where they did, many things had to happen. Those "things" are called the construction of infrastructure. Amgen sits in the next town, but the sewer line had to go through my community. Amgen provided some funding for the sewer line, but the citizens of Coventry have been left to struggle with the consequences. New sewer, new water links, roads in constant state of disrepair; but more importantly, business along Route 3 has been devastated by constant upheaval. I've spoken to business owners along this stretch and they are not happy.
So let me get this straight. Amgen, which required connection to the sewer system and sewage treatment plants, which required the development of expanded water capabilities in the community, which required the endless paving of roads (you know it never happens once), which blighted my town's business district for 3 years (Because nobody could move around all of the construction), which promised jobs for us all, which laid off 450 employees after the promise of jobs (just 2 years later), should not pay any state taxes? Is this what you're saying Governor?
Now Amgen sold product all over the world. We saw ads everywhere for their drug, Enbrel. Governor Carcieri is now telling us that, we the good citizens of Coventry, have to foot the bill all by ourselves. Can't collect any taxes here. Who cares if the government has to build sewer lines and new waste water treatment facilities and roads? Let the corporation make money from all over the world and, "to hell with Rhode Island". We will let the good people of Coventry pay the bills so Amgen can make profit from everywhere. Why should the people from Europe have to contribute to our little State?
To hell with this Republican philosophy. My taxes would be considerably less if Amgen were never built near my community. That's right; study after study has pointed to the illusion of development lowering property taxes. Governor Carcieri; my property taxes have increased because of you, your foolishness and Amgen.
"And I can see Russia; no I mean Amgen, from my backyard". I can; I really can. Sorry Sarah; I could not resist.
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Sunday, February 8, 2009
Republicans Still Don't Get It
On today's "Meet The Press" I had to listen to Republican Senator John Ensign from Nevada whine about the stimulus package before the Senate. What really gets to me is when Republicans throw out information that purports to be fact, when actually, they are being dishonest. I guess you could say they are lying to the American people. Ensign said today: "Economists are saying this stimulus plan is a disaster" Now I don't doubt that Senator Ensign found an economist to say something close to this. Let's look at the broader facts.
In Today's Washington Post, this is what was said in this regard: "...an overwhelming number from both parties are saying that a government stimulus package -- even a flawed one -- is urgently needed to help prevent a steeper slide in the economy." They are talking about economists here. The article went on to say: "Many economists say the precise size and shape of the package developing in Congress matter less than the timing, and that any delay is damaging".
In fact, of the few economists that opposed the stimulus, some of them are changing their position because the Federal Reserve Board has no more room to drop interest rates. Also reported in the article was a statement that alluded to the Senate changes: "Most economists agree that the Senate alterations in the plan would undermine stimulus aims". The change that I am most concerned about is the removal of a significant portion of stimulus aid to the states.
During this crisis, the country has lost 3.5 million jobs to date with half of that occurring in the past 3 months. January saw a decline of 600,000 jobs. That's 20,000 jobs lost each day. What the hell are the Republicans thinking? It would be quite the spectacle to see a Republican filibuster. As they blabber away, each hour almost 1000 jobs would be lost. Maybe its time to watch them blabber? If I did not care so much for the people affected, I would say blab on.
It will be interesting to watch this play out as the Republicans are removing aid to their own states. I hope they are walking into a disaster. It would be a disaster of their own making. How can they deny the needs of their own states? Voters take note! Nineteen Republican governors were calling for this much needed aid while their Senators play politics as usual. They are denying their own Republican governors? There is only one word to sum up most Republican legislators at this point in time: disgusting.
Unfortunately, the Senate changes probably won't mean much in Rhode Island as we have a governor that does not believe in putting anyone to work. He would take the stimulus money and find a way to give it all away. What do you want to bet that we will be bailing our Twin Rivers. Rhode Island has to be the only state that has backed a casino. Carcieri's policies have lead to the worst decline in employment this state has seen in decades. He talks a good game of putting the private sector to work, but he has been a dismal failure in this regard. He certainly won't go out an hire public employees because his vision is to dismantle public service. I take that back, he may give his favorite cronies a state job at $150k per year, but nothing for the rank and file. You know, the real people that get things done. Walk on Steve Cass!!
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In Today's Washington Post, this is what was said in this regard: "...an overwhelming number from both parties are saying that a government stimulus package -- even a flawed one -- is urgently needed to help prevent a steeper slide in the economy." They are talking about economists here. The article went on to say: "Many economists say the precise size and shape of the package developing in Congress matter less than the timing, and that any delay is damaging".
In fact, of the few economists that opposed the stimulus, some of them are changing their position because the Federal Reserve Board has no more room to drop interest rates. Also reported in the article was a statement that alluded to the Senate changes: "Most economists agree that the Senate alterations in the plan would undermine stimulus aims". The change that I am most concerned about is the removal of a significant portion of stimulus aid to the states.
During this crisis, the country has lost 3.5 million jobs to date with half of that occurring in the past 3 months. January saw a decline of 600,000 jobs. That's 20,000 jobs lost each day. What the hell are the Republicans thinking? It would be quite the spectacle to see a Republican filibuster. As they blabber away, each hour almost 1000 jobs would be lost. Maybe its time to watch them blabber? If I did not care so much for the people affected, I would say blab on.
It will be interesting to watch this play out as the Republicans are removing aid to their own states. I hope they are walking into a disaster. It would be a disaster of their own making. How can they deny the needs of their own states? Voters take note! Nineteen Republican governors were calling for this much needed aid while their Senators play politics as usual. They are denying their own Republican governors? There is only one word to sum up most Republican legislators at this point in time: disgusting.
Unfortunately, the Senate changes probably won't mean much in Rhode Island as we have a governor that does not believe in putting anyone to work. He would take the stimulus money and find a way to give it all away. What do you want to bet that we will be bailing our Twin Rivers. Rhode Island has to be the only state that has backed a casino. Carcieri's policies have lead to the worst decline in employment this state has seen in decades. He talks a good game of putting the private sector to work, but he has been a dismal failure in this regard. He certainly won't go out an hire public employees because his vision is to dismantle public service. I take that back, he may give his favorite cronies a state job at $150k per year, but nothing for the rank and file. You know, the real people that get things done. Walk on Steve Cass!!
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Friday, February 6, 2009
What I Would Tell Governor Carcieri
In previous posts I've been quite harsh on Rhode Island's governor. I met the man and he is really personable. He seems to be a quite, likable guy with a corporate raider mentality. I just learned yesterday that he was not one of the nineteen Republican governors that signed the letter in support of the President's stimulus plan. In fact, he wrote a letter opposing the approach used in the plan. How unfortunate for Rhode Island. Instead of support, he continues to espouse the old Reaganomics's trickle-down philosophy as the only way to deal with the crisis. He may be nice, but he's wrong.
Instead of continually throwing bricks, I've decided to outline what I think should be done in this state. Before doing so, I want everyone to know that I know a lot about cutting the costs in government. When first appointed to my leadership role, my agency had 65 full time employees (FTE). When I departed 20 years later the agency had 29 FTE. Four years later, the agency has less than 20 FTE. Downsizing was appropriate in 1986, but not today.
What follows is my 8 point plan to help turn the state around and this is what I would offer to the governor.
1. Rightsize state government. Downsizing continually is not the answer, rightsizing is. Government can do many things better than the private sector at a huge savings. A case in point; a construction project that hires an engineering firm to watch over the contractors. In a case that I'm aware of, a very small project paid out close to $45,000 for one person to watch over the project. He may have shown up on site a dozen times. If the state filled their old positions, this one employee could watch over a dozen projects at tremendous savings. Contractors watching over contractors is simply a bad policy.
2. Decentralize purchasing with controls. If purchasing were somehow decentralized with the appropriate checks and balances, almost every purchase off of the state's master price agreements could be made for less money. Better deals can almost always be found. As an example, I'm aware of a project to put a new roof on a very small building. The price off of the master price agreement I'm told is $10,000. The actual cost if I contracted the job privately would be in the range of $5,000 (more on this in a future post).
3. I would limit government borrowing. I would seek a 5 year plan that would restrict the borrowing power of the state. I would cap any borrowing at 80% of the level of bonds that retired in that period. So, if the state had retired $100 million in spending during the period, the state could only move forward with $80 million in new borrowing. Any exception would require the vote of the people. This would be a short term program to slow down the growing government debt. Rhode Island should not be building a new state police barracks at this time.
4. Establish a commission or commissions to oversee and monitor contracts. Performance on state contracts or lack thereof is costing taxpayers millions. I would look to private citizens to assist the state with this, not public employees or legislators (more on contracting issues in a future post).
5. The Office of Personnel Management must develop a minimum staffing level plan. The personnel office should develop this plan to assist with rightsizing efforts in government. The plan could establish a base line so government can ensure that jobs get done. There is Federal money out there at risk that citizens know nothing about. While past plans have been done, a new approach here is needed. Under no circumstances should the plan be prepared by consultants. We pay state employees, they can develop a plan.
6. Strengthen the public employee pension system. I would recommend working with the unions and ask for some sacrifice without demeaning the workforce. As an example, I would allow options for the employees. I would ask all new hires upon entering the workforce to increase their contribution level to 10.5% if they want the 3% COLA upon retirement. I would ask state employees, who already pay the highest contribution levels in the country to increase contributions from 8.75% to 9%. I would keep teachers at their current contribution levels. I would establish by law that the state must always match contribution levels dollar for dollar capped at 9.5%. I'm aware that state contribution levels today far exceed the 9.5% cap because of the past practice of stealing from the fund to pay for budget balancing. I would seek additional ways to deal with unfunded liability (more on this in a future post).
7. I would make sure that state money goes to state infrastructure. No taxpayer money should be used to build, or maintain any private business. A revolving loan fund is fine, but it needs to be a loan. I would never use taxpayer dollars to fix the Civic Center (this should be a going concern with appropriate resources derived from events - How many times do we have to fix this?), no more building of Westin Hotels and shopping malls. These are all fine things but this is not the responsibility of taxpayers. I know this requires a change in the culture in this state, but enough is enough.
8. I would repeal the tax relief for those making over $250,000 that the governor signed into law at the beginning of his administration. I would give strong consideration to establishing personal property taxes on the large boats around Narragansett Bay. I would lower the sales tax to 5% and broaden its base. I would oppose 5% sales tax on car repairs and home repairs.
I'm sure that the governor would laugh at some of these ideas as well as many of our Democratic legislators, so this is not a Democratic or Republican thing. I just feel that there are many other ways to deal with our problems in this state. As Barack Obama has said: "They just have it wrong". Trickle-down Reaganomics has gotten us into this mess, it will not get us out of it.
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Instead of continually throwing bricks, I've decided to outline what I think should be done in this state. Before doing so, I want everyone to know that I know a lot about cutting the costs in government. When first appointed to my leadership role, my agency had 65 full time employees (FTE). When I departed 20 years later the agency had 29 FTE. Four years later, the agency has less than 20 FTE. Downsizing was appropriate in 1986, but not today.
What follows is my 8 point plan to help turn the state around and this is what I would offer to the governor.
1. Rightsize state government. Downsizing continually is not the answer, rightsizing is. Government can do many things better than the private sector at a huge savings. A case in point; a construction project that hires an engineering firm to watch over the contractors. In a case that I'm aware of, a very small project paid out close to $45,000 for one person to watch over the project. He may have shown up on site a dozen times. If the state filled their old positions, this one employee could watch over a dozen projects at tremendous savings. Contractors watching over contractors is simply a bad policy.
2. Decentralize purchasing with controls. If purchasing were somehow decentralized with the appropriate checks and balances, almost every purchase off of the state's master price agreements could be made for less money. Better deals can almost always be found. As an example, I'm aware of a project to put a new roof on a very small building. The price off of the master price agreement I'm told is $10,000. The actual cost if I contracted the job privately would be in the range of $5,000 (more on this in a future post).
3. I would limit government borrowing. I would seek a 5 year plan that would restrict the borrowing power of the state. I would cap any borrowing at 80% of the level of bonds that retired in that period. So, if the state had retired $100 million in spending during the period, the state could only move forward with $80 million in new borrowing. Any exception would require the vote of the people. This would be a short term program to slow down the growing government debt. Rhode Island should not be building a new state police barracks at this time.
4. Establish a commission or commissions to oversee and monitor contracts. Performance on state contracts or lack thereof is costing taxpayers millions. I would look to private citizens to assist the state with this, not public employees or legislators (more on contracting issues in a future post).
5. The Office of Personnel Management must develop a minimum staffing level plan. The personnel office should develop this plan to assist with rightsizing efforts in government. The plan could establish a base line so government can ensure that jobs get done. There is Federal money out there at risk that citizens know nothing about. While past plans have been done, a new approach here is needed. Under no circumstances should the plan be prepared by consultants. We pay state employees, they can develop a plan.
6. Strengthen the public employee pension system. I would recommend working with the unions and ask for some sacrifice without demeaning the workforce. As an example, I would allow options for the employees. I would ask all new hires upon entering the workforce to increase their contribution level to 10.5% if they want the 3% COLA upon retirement. I would ask state employees, who already pay the highest contribution levels in the country to increase contributions from 8.75% to 9%. I would keep teachers at their current contribution levels. I would establish by law that the state must always match contribution levels dollar for dollar capped at 9.5%. I'm aware that state contribution levels today far exceed the 9.5% cap because of the past practice of stealing from the fund to pay for budget balancing. I would seek additional ways to deal with unfunded liability (more on this in a future post).
7. I would make sure that state money goes to state infrastructure. No taxpayer money should be used to build, or maintain any private business. A revolving loan fund is fine, but it needs to be a loan. I would never use taxpayer dollars to fix the Civic Center (this should be a going concern with appropriate resources derived from events - How many times do we have to fix this?), no more building of Westin Hotels and shopping malls. These are all fine things but this is not the responsibility of taxpayers. I know this requires a change in the culture in this state, but enough is enough.
8. I would repeal the tax relief for those making over $250,000 that the governor signed into law at the beginning of his administration. I would give strong consideration to establishing personal property taxes on the large boats around Narragansett Bay. I would lower the sales tax to 5% and broaden its base. I would oppose 5% sales tax on car repairs and home repairs.
I'm sure that the governor would laugh at some of these ideas as well as many of our Democratic legislators, so this is not a Democratic or Republican thing. I just feel that there are many other ways to deal with our problems in this state. As Barack Obama has said: "They just have it wrong". Trickle-down Reaganomics has gotten us into this mess, it will not get us out of it.
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Thursday, February 5, 2009
Carcieri Continues His Crusade to Destroy RI
Last night on Rachael Madow's show, Paul Krugman the Nobel prize winning economist commented on the decline of the Security and Exchange Commission (SEC). He stated emphatically that the decline began during the Reagan administration as the SEC was viewed as too powerful. After all, government "is the problem".
Today, our Reagan loving governor outlined proposals to drastically cut taxes to the wealthy and powerful in Rhode Island in addition to totally eliminating corporate income taxes. Guess what? CEO's are thrilled. Only 4 states have no corporate income tax; however, those states may well tax businesses in other ways. To be fair, the report did say that those making over $1 million would pay a slightly higher tax. Taxpayers will save $125 million. There seems to be no speculation on how this might affect middle income taxpayers. I think it's: screwed again.
For how long will we live with such idiotic economics. Guess what folks? The government will lose $125 million on top of a projected deficit of $450 million. Even if there is a slight incentive to grow, the return will be lucky to approach 10 cents on the dollar. You have to be kidding me! In this economy do you really feel that small business is going to jump out there and start doing great things. There's no demand out there, stupid. Carcieri continues to propose digging a deeper hole with the dirt coming out of the hole thrown on the public employees.
Any economic stimulus money from the Obama administration will be watered down in the state of Rhode Island because of this ancient thinking. Look forward to 10% unemployment for 5 years and 15% unemployment is not out of the question. Rhode Island was the first to feel this economic slowdown and we will be the last to climb out of it. Thank you very much Governor Carcieri.
One more thought; remember when our people loving governor lowered the income tax on those folks making over $250,000 annually in this state. The promise was that it would improve our business climate and create jobs. Where are they? Ya, that worked! Of course the legislature must share in the blame. Most legislators probably make more than $250,000. God forbid you think about establishing a personal property tax on all those boats surrounding Narragansett Bay.
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Today, our Reagan loving governor outlined proposals to drastically cut taxes to the wealthy and powerful in Rhode Island in addition to totally eliminating corporate income taxes. Guess what? CEO's are thrilled. Only 4 states have no corporate income tax; however, those states may well tax businesses in other ways. To be fair, the report did say that those making over $1 million would pay a slightly higher tax. Taxpayers will save $125 million. There seems to be no speculation on how this might affect middle income taxpayers. I think it's: screwed again.
For how long will we live with such idiotic economics. Guess what folks? The government will lose $125 million on top of a projected deficit of $450 million. Even if there is a slight incentive to grow, the return will be lucky to approach 10 cents on the dollar. You have to be kidding me! In this economy do you really feel that small business is going to jump out there and start doing great things. There's no demand out there, stupid. Carcieri continues to propose digging a deeper hole with the dirt coming out of the hole thrown on the public employees.
Any economic stimulus money from the Obama administration will be watered down in the state of Rhode Island because of this ancient thinking. Look forward to 10% unemployment for 5 years and 15% unemployment is not out of the question. Rhode Island was the first to feel this economic slowdown and we will be the last to climb out of it. Thank you very much Governor Carcieri.
One more thought; remember when our people loving governor lowered the income tax on those folks making over $250,000 annually in this state. The promise was that it would improve our business climate and create jobs. Where are they? Ya, that worked! Of course the legislature must share in the blame. Most legislators probably make more than $250,000. God forbid you think about establishing a personal property tax on all those boats surrounding Narragansett Bay.
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Wednesday, February 4, 2009
Fiscal Problems and a Governor's Approach
The following post is a letter to the editor of the Providence Journal that the paper never printed. It outlines in a few words my disgust with the Republican administration's approach to handling a state's fiscal problems. Since the letter was written, over 1100 state employees were forced to retire because of disincentives forced upon the employees by changes to the retirement system. The fiscal deficit skyrocketed following the employees departure. The Governor at present is trying to repeat this feat with further changes to the retirement system.
To the Providence Journal:
I need to take a moment to comment on Governor Carcieri’s latest attempt to solve the states fiscal problems (“Governor’s planned cuts raise concern” Oct. 5, 2007). Let’s step back to look at the big picture. The state’s annual budget is $7 billion. There are 15,000 state employees and as reported in the Providence Journal, each position costs approximately $90,000 for salary and benefits. I’ll be conservative and use $100,000 as the cost for each employee. State employee costs therefore are $1.5 billion annually, or approximately 20% of the state’s budget.
Where is the other $5.5 billion? Mr. “Big Audit” Carcieri continues to target state employees and he continues to demonize them as being the problem. Well, they are a very small part of the problem yet they are always asked to solve the state’s fiscal crisis.
Fact of the matter is privatization practices have been killing the state. Exorbitant contracting costs and contractors watching over contractors are tolerated because it is viewed as “business friendly”. Everyone needs to remember that there are a lot of people getting very rich off of taxpayer dollars but those folks are not state employees.
It’s not about “downsizing” state government, Mr. Carcieri; why don’t you try “rightsizing” state government and find your savings from the $5.5 billion that is left over after paying your state employees?
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To the Providence Journal:
I need to take a moment to comment on Governor Carcieri’s latest attempt to solve the states fiscal problems (“Governor’s planned cuts raise concern” Oct. 5, 2007). Let’s step back to look at the big picture. The state’s annual budget is $7 billion. There are 15,000 state employees and as reported in the Providence Journal, each position costs approximately $90,000 for salary and benefits. I’ll be conservative and use $100,000 as the cost for each employee. State employee costs therefore are $1.5 billion annually, or approximately 20% of the state’s budget.
Where is the other $5.5 billion? Mr. “Big Audit” Carcieri continues to target state employees and he continues to demonize them as being the problem. Well, they are a very small part of the problem yet they are always asked to solve the state’s fiscal crisis.
Fact of the matter is privatization practices have been killing the state. Exorbitant contracting costs and contractors watching over contractors are tolerated because it is viewed as “business friendly”. Everyone needs to remember that there are a lot of people getting very rich off of taxpayer dollars but those folks are not state employees.
It’s not about “downsizing” state government, Mr. Carcieri; why don’t you try “rightsizing” state government and find your savings from the $5.5 billion that is left over after paying your state employees?
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