Showing posts with label RI. Show all posts
Showing posts with label RI. Show all posts

Thursday, May 24, 2012

Disgusting Rhode Island and Studio 38

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

Tuesday, April 10, 2012

Update on Rhode Island Pension Thefts

I was sitting at a bar with an old friend and former state employee and the conversation shifted to the pension disaster in Rhode Island. I was surprised to hear that the retiree was not as concerned as I was about the loss of our COLA for 19 years. I asked him if he knew how much money he would be losing if the courts don't reverse the pension theft. He responded around $40,000. I was shocked. He had not really looked at the issue in depth. When I told him he is actually losing around $400,000, he gasped. I explained the additive nature of the theft. I'm left wondering how many other retirees are not doing the math.

I guess a lot of smart people are not thinking mathematically, but you can bet your last penny that Gina Raimondo knows the bottom line. The Rhode Island legislature, Gina Raimondo and Lincoln Chafee must really like following in Bernie Madoff's footsteps. $Billions are being stolen from the retirees.

After having another conversation with a different retiree that I respect for her dedication to her profession, I became more concerned about the thought process of retirees as a whole. In this conversation, my friend stated that she is glad the issue is behind us and we will never have to face this problem again. I chuckled and told her that she needs to remember how government works. Once government goes to "the well" for money to bail out their pet projects, they spend all the money and face the exact same dilemmas a few years down the road. When resources dry up, politicians continue to return to "the well". This is the nature of politics as we know it.

I ask you, do you really think this is the end of it? Can't you see the politicians 4 years from now demonizing the public retirees again because they get "exorbitant" pensions? I explained to my friend that this is the very reason why the court has to put a stop to the theft now.

I was a big supporter of Lincoln Chafee when he ran for Governor. At one point he was asked in a union setting his position on the public pension debate. Chafee's response was; a promise made is a promise kept. Chafee went back on his word. Raimondo said at the beginning of the process that all parties would have to pitch in to solve the pension crisis. Raimondo went back on her word. The entire solution was laid in the laps of the retirees and current public employees. No new tax solution was even debated to assist the state with keeping its promises.

Bottom line: Chafee is not trustworthy and Raimondo is not trustworthy. Hope lies with the courts and the unambiguous language found in the Rhode Island Constitution. What these crooks did is not constitutional and all public employees should not rest until the court draws the line. Retirees and public employees should not grow complacent and let the thieves get away with it. If our politicians get away with this one, they will most definitely come back to "the well". Mark my words!!

tomtoak

Monday, January 9, 2012

Open letter to the "Providence Journal"

This letter speaks for itself:

Dear Editors:

After over 35 years subscribing to your newspaper, we must inform you of our intention to cancel our subscription. This action is not taken without significant thought towards what the people of Rhode Island deserve. We have determined that they do not deserve your unbalanced and hateful treatment of public employees. Your incessant use of page one headlines biasing the pension debate was nauseating, especially when scant attention was paid to many important national and world events that required coverage.

Your paper’s cheerleading of the stealing of $billions from the retirees of this state showed a lack of fairness that is required from a major state newspaper. Your intimidating tactic of making sure all readers in the “Letters” section know when a point of view emanates from a public employee is truly classless. Your lack of judicious treatment of the pension debate was obvious even to those without a direct stake in the issue.

Your newspaper continually allowed one-sided arguments in major editorial pieces that demonized public workers until the vote was taken. After the vote, you finally allowed one major editorial writer to provide a defense of the state retirement system. Your newspaper refused to seek the truth regarding the flawed actuarial assumptions made by the General Treasurer, Gina Raimondo which inflated the pension liability to epic proportions (average life expectancy of 87.6 years) (see attached). Your paper refused to make the case that Raimondo’s assumptions were based on recession era math and that through cost averaging, the pension fund will rebound (The pension fund made 20.4% last year).

Additionally, your newspaper refused to investigate the financial assumptions being made by the Raimondo team that the state would have to contribute 35% of salary for the foreseeable future (pure hogwash). Try doing the math yourselves: An absolute lie was forced down the throats of Rhode Islanders and you made decisions to ignore the truth. Working until the age of 67 is also unwise. This requires a new worker out of college to work 45 years before retirement and carries with it many economic realities not properly addressed or debated by decision makers.

One of your pet providers to the “Letters to the Editor”, Karl Stephens, Barrington (December 17, 2011) criticizes your newspaper for not blasting Jon Corzine for the $billions missing from MF Global Holdings solely because he is a Democrat. Typically, Mr. Stephens is concerned about the $billions stolen from investors but could care less about the $billions stolen from the public employees that invested their lives and money in the state retirement system. We are sick and tired of your 3 nut-case letter writers from Pawtucket, Saunderstown and Barrington that you give voice to every month (you know who they are!)

Simply put; your newspaper is no better than Bernie Madoff. At least Bernie Madoff ended up in jail for life. Nobody will do time for the stealing of $billions from the retirees of this state and your newspaper put the blame solely on the shoulders of the public employees. We all cared about the folks that got robbed by Madoff and others but nobody cared about the public employees. You all should be ashamed of yourselves.

Now it’s time to pay the piper; so to speak. We will no longer support your biased newspaper to the tune of $416 per year. The debate about loss of funds to “Crossroads Rhode Island” is just the beginning. Have you checked out the demographics of the folks who go to Twin River Casino? Do you think there are a lot of retirees? Do you think they will continue to drop their extra cash there? Not if they don’t get a COLA for 19 years! The economic fallout from the disastrous decision to so radically change the pension system is just in its infancy.

If you think you treated public employees fairly, just ask the person in the street what they think about public employees. We were demonized by Raimondo and others but you folks at the “Providence Journal” did the greatest disservice to the public employees by not seeking truth as journalists should. It is every journalist’s duty to be fair and unbiased in their investigation and reporting.

After over 35 years; farewell!

tomtoak

Friday, December 16, 2011

Raimondo's faulty pension data begins to sting Rhode Island

















As seen in this blog in prior posts, the pension law changes shoved down the throats of our weak kneed legislature was based on faulty assumptions that I argued would lead to economic decline in this state. Raimondo's most egregious error was to rely on data from actuaries that live in outer space. Her insistence that the life expectancy for retirees should be 87.6 years on average is absolute hogwash. Using such bad data created the crisis which she so joyfully capitalized on.

I draw your attention to the chart. This chart represents a random study of deaths in Rhode Island during the Fall of 2011. Days were randomly selected and age at death calculated from the obituary page of the Providence Journal. In total, there were 257 deaths recorded. The average age of death was 77.4 years and out of the 257 deaths recorded during the study; 50 people lived past 88 years. The green line represents Raimondo's science fiction while the red line represents today's reality. (Please note: On the chart the green line says 88.6 but it represents the 87.6 year target - my mistake) Raimondo's unbelievable pension plan actually adds on 10 years of life in one giant leap of economic whackyness.

I know this information is anecdotal and not a scientific study. This chart does provide a view of the present day longevity of Rhode Island residents. It can be used for comparison purposes. You need to also remember that the chart represents only those people with the hard cash to pay the Providence Journal for the listing. These folks may actually live a little longer than those without the cash. Regardless; the assumptions made by Raimondo are wild-ass assumptions.

Now on to the state's economic decline. Today's Providence Journal rag has a lead story entitled; "Job losses edge up for fourth month." (Please note: I no longer link to the Providence Journal as policy for this blog) Rhode Island lost 1,900 jobs in November and the unemployment rate is again increasing for the first time in nearly 2 years (10.5%). In the same edition of the Journal, the national news headline is: "The Economy: Edging toward recovery" The national unemployment rate has ticked down to 8.6%. While things are getting better in the nation, Rhode Island's downward spiral continues. I guess stealing $billions from retirees is not working. Rhode Island can't even add jobs during the Holiday season. Do you think it has something to do with consumer confidence and retirees holding tight to their money? You bet it does! Get ready for 19 more years of this. Is it coincidence that Rhode Island has been faltering economically during the past 4 months: The same 4 months as the pension debate boiled?

In other more promising news: The Rhode Island Supreme Court denied the state's request for summary judgement on the issue of state pensions being contractual. The Supreme Court sent the case back to Superior Court for trial because the unions have a solid case. Maybe it will take the courts in Rhode Island to straighten up the economy. God knows, the Governor and Treasurer can't do it. Retirees have won round 2!

tomtoak

Tuesday, December 6, 2011

Anti-Union = Anti-American

In a country filled with political braggadocio, politicians that despise unions are UN-American. I am sick and tired of listening to people blast unions. The landscape in America today has 1% controlling a near majority of wealth in this nation while the middle class struggles to pay the bills, put kids through college and plan for a decent retirement. When will the 1% be happy? When they control 100% of the wealth? Are we all to return to slavery - working our entire lives to enrich our owners. Now just imagine what this country would be like if there was never a union.

Unions have fought for the middle class and stood up to the powerful interests that could care less about worker health, safety, security and retirement. The system has been tipped too far in favor of the wealthy and this needs to change. Take for example the pension systems of private companies. Thanks to our enlightened Congress, pension plans of private corporations are company assets that can be leveraged in favor of the big money interests. When the corporation is sold, the pension plans frequently get stolen leaving the workers with little and the Federal Government partially filling the void. We subject ourselves to constant bailouts of industries that want to do business overseas so they don't have to pay taxes here at home and their actions are always at the expense of the working stiffs.

To get to my primary point, anti-union is anti-capitalism. Why in a free society can't workers organize to argue for justice in the work place? Unions have found a capitalistic niche that should not be overlooked. While unions collect dues from workers, they serve as a leveling force in our society. As unions falter, so will the middle class. Let me think of a government system that hated unions and outlawed them: How about communism? The Scott Walkers of our country, most Republicans and the fanatic radio talk show fringe would turn this country in the direction of communism. I'm serious, there are those that feel that outlawing unions is a good thing. There are those that feel that autocratic rule is the way to get things done. The way to keep the rich rich and to hell with anyone else.

Let's get one thing straight, unions are capitalistic ventures and free marketeers ought to be supporting their role in our society. Management at the negotiating table represent the many (stock holders and monied interests) while unions represent the workers. Unions have a way of leveling the playing field and Americans need to understand their importance to the middle class. Remove unions and we are far closer to totalitarian rule. If you oppose unions, you do not support free market systems. If you believe that the wealthy have a right to make their millions while workers are silenced, then you are anti-American.

We just witnessed another step towards autocratic rule in Rhode Island when General Treasurer Gina Raimondo pushed her pension reform legislation. She did not even consider negotiating with unions. She could not be bothered. Again; I tell Rhode Islanders and Americans, be careful what you wish for.

tomtoak

Tuesday, November 22, 2011

Profiles in Cowardice

I want to make it clear that what I am about to say is not meant to reflect on those legislators that voted against the Raimondo-Chafee pension reform bill that was passed last week in Rhode Island. I give a special thanks to my local representative, Scott Guthrie, who did the right thing.

The rest of you are truly profiles in cowardice! You have fixed nothing. You have gone after the middle class in this state with a hateful, shameful, immoral and illegal strategy that will put a stranglehold on our state's future. You are asking 50,000 individuals to come up with the $ billions to bail out over 1 million people. You have not lived up to your oath of office; you are thieves and you lack the intelligence to ask the appropriate questions.

Reneging on your oath of office is quite despicable. You all took an oath to uphold the constitution of the state: Am I right? The RI Constitution insists that no ex-post-facto law may be past regarding any contract(Article 1: Section 12): Am I right? The Constitution further stipulates that all taxation will be fair and equitably distributed(Article 1: Section 2): Am I right? To date the superior court has ruled that pensions are in fact contracts and the COLA is a part of that contract: Am I right? You ignored the court's ruling and voted for a bill that, to the best of your knowledge, was unconstitutional: Am I right? You choose to pass a law that uses absurd assumptions regarding the longevity of retirees (87.6 years): Am I right? You choose to tax public employees only, an act so outrageous that the average state retiree ($27,000 annual pension) will lose over $180,000 during a 19 year period: Am I right? You ignored your oath of office by not upholding the Constitution: Am I right? You should all resign immediately: Am I right? You will not resign: Am I right? You are cowards: Right!

General Treasurer Gina Raimondo said in the Providence Journal that as she looked out her window, she felt good knowing that the teacher below will have a pension one day. She was proud of the fact that the system which was less than 50% funded is now over 60% funded. I have news for her! Change the longevity assumption back to a reasonable figure and the pension fund will be 80% funded so the promises made to public employees can be kept.

I just read an article in the "Science News " magazine, February 26, 2011 (this information was available to Raimondo). The title; "U.S, falters in life expectancy gains", discusses the United States falling behind other developed countries in life expectancy gains. The average life expectancy for those over 50 years of age is 79 for males and 83 for females. How dare you rob our future without the appropriate questions being asked.

I hold no allegiance to thieves and I really don't like cowards. Have a nice Thanksgiving.

tomtoak

Tuesday, November 1, 2011

Is Rhode Island being lied to about pensions II?

OK: The title says it all. We continue to learn about more lies to Rhode Island regarding the proposed pension changes of Governor Chafee and General Treasurer, Gina Raimondo. This article follows a previous article posted on October 4, 2011 in this blog.

First and foremost, we now learn that the General Treasurer is using 87.6 years as the projected life expectancy of the average retiree. No wonder why she says that the state contribution to the pension has to increase to 35% of salary. How truly foolish is this? The U.S. government says the age should be 78 years. (I'm not linking a source because I read this in the Providence Journal and I do not want people to migrate to that site to make more money for that rag). I just attended a Bar Mitzvah where the oldest person was 85. She was frail and had trouble walking because of a previous stroke. While we all know some people that make it past 87.6 years, start counting all of the people you know that did not make it to that age.

Here is another lie to confuse the issue, courtesy of the Providence Journal. A recent article listed "myths" surrounding the pension system. One myth that they tried to tackle involves issues surrounding the state's required contributions. The Journal clearly states that this issue is simply not true, the state made all of its contributions except for some $60 million in payouts to rescue the wealthy in this state during the banking crisis (they didn't say the "wealthy" - I did because our Governor chose to meet all obligations in bank accounts that exceeded $100,000). Your public employees paid for your bailout.

Here is the rub! Even the General Treasurer has the intelligence to say the following: "The state made contributions "as required by law" (note the quotation marks). When I was working budgets, I was livid when Governor DiPrete tapped into the pension contribution for the first time. I remember seeing half of the state's contribution disappear. This trickery continued during the Sundlun administration and yes, they cooked the books to please the legislature. Gina Raimondo is right when she says that unrealistic numbers were used to justify the state's robbery of its pension accounts. The robbery continued. Don't tell me that the state always made it's contribution. When union bosses have robbed the pension accounts of its members, people go to jail. Nobody in this country has been jailed for pulling corporate pension funds or public pension funds. The Journal rag is lying to everyone when it refuses to make this point perfectly clear. The Providence Journal was absent from these facts at a time when it needed to let the public know. We all know that the Journal wanted to be absent because they never liked public pensions because it makes their newspaper operation look cheap in their worker's eyes. The state did not meet it's pension contribution for over 2 decades. The employees made every contribution and also took a 20% pay cut to bailout the banks. We bailed out the banks with our pensions and our salaries. Thank you very much!

Additionally, the $60 million that the Journal seems to brush aside today would be approximately $232 million out of the projected $7 billion shortfall that Raimondo is claiming because we are all going to live to be 87.6 years of age. Yea!

tomtoak

Friday, October 28, 2011

RI General Treasurer's pension plan will devastate businesses

It's curious why General Treasurer, Gina Raimondo would propose her pension reform act before the RI Supreme Court rules on the constitutionality. To date, she has lost in the courts. After seeing her jubilant waves to the "Engage Rhode Island" rally and her refusal to speak to the retiree rally on October 26, 2011, it became clear to me that she only cares about her political future. She should have been saddened by having to be the instrument of broken promises. The jubilation was a shameful act.

The Providence Journal’s pension reform chart (COLA Wars, October 27, 2011) tells an interesting story. Raimondo’s plan is the largest business killing legislation that anyone could dream of. How can the Rhode Island business community and the Governor wave the flag?

The average state retiree will have a cumulative income loss of between $185,500 and $139,386 and the average public school retiree will experience a cumulative income loss of between $227,406 and $146,464 over the next 19 years. With over 50,000 retirees in the system at any one time, the loss to Rhode Island’s economy will be close to $10 billion during the next 19 years. Now let’s assume a subset of retirees is pissed off enough to move out of state. If 20,000 people with their spouses move to states without a state income tax and the family income is $60,000, the state’s economy will be losing an additional $1.2 billion each year. Over the 19 years the total loss to the state’s economy could be well over $30 billion. Make a COLA adjustment but don’t eviscerate retirees and businesses.

I’m glad I don’t own a small business in Rhode Island. If I did I would be fighting this legislation. Be careful what you wish for.

tomtoak

Sunday, October 23, 2011

Random Reasonings XVII

An occasional column of random thoughts and observations:

  • No COLA for 19 years is what Rhode Island's General Treasurer came up with? I was willing to give some back for the benefit of everyone but I am not going to get raped without fighting.
  • Regarding the RI rape of retirees; I wrote the governor, treasurer and every single legislator. You should all do the same. I wrote the Providence Journal today that reported the average retiree ($27,000 pension) will lose $9,286 over the first 10 years of the treasurer's plan. Fact checkers at the Providence Journal are too stupid to do the math as is the treasurer's office. The $9,286 is the loss of income in year 10 alone. What about year 1 through 9? The average state employee will lose $48,805 in the first 10 years and $165,142 in the 19 years of the treasurer's plan.
  • Barack Obama has been the greatest foreign policy president in my life time. I wonder if he was born in the United States?
  • Did you hear that Mitt Romney said Obama's job program would make everyone millionaires and then we would all have to pay higher taxes? Nice one Mitt: make me a millionaire, the 99% are all for it.
  • Did Dick Cheney's pace maker stop? I thought I heard a sucking sound!
  • That sucking sound was actually public employee retirees leaving Rhode Island and moving to New Hampshire or Florida to avoid paying state taxes on their pensions.
  • Only democrats can overthrow terrorist regimes without losing a single U.S. troop. Obama - great job in Libya and Clinton - great job in Bosnia.
  • Funny; the Iraq war is over but the Republicans are still fighting it. I guess they are still looking for the WMD.
  • Herman Cain - be serious - order pizza!
  • Rick Santorum - do you still practice rhythm - I hope so.
  • If the General Treasurer of Rhode Island is raping the retirees, can we all have access to abortion?
  • There is no truth to the rumor that Sarah Palin has a "thing" for Herman Cain. There may be truth to the rumor that Sarah had a "thing" for Barack Obama. He was a black basketball player and they both spent time in Hawaii. Was that before Hawaii was a state?
  • What Tea Party?
  • What will happen when 10% of Rhode Island's population moves out of state because of General Treasurer, Gina Raimondo? I would not even invest in a McDonald's in this state.
  • Obama has delivered on almost all of his campaign promises, the exception being the closing of Guantanamo Bay prison.
  • Raimondo and Chafee make Wall Street look like it has compassion on a par with Mother Teresa.

tomtoak

Thursday, July 21, 2011

Letter to Governor Chafee and public pensions

Below you will find my recent letter to Governor Chafee that addresses problems with the actions taken in Central Falls regarding the stripping of publicly earned pensions. While the jury is still out on this, it was important for me to state my position and hope that government does the right thing. We can't exist like Germany in the 1930's with wealth being stripped from a select group of people. In Germany, it was the Jews while in America, it seems to be the public employees. Republicans continue to scapegoat public employees and it needs to stop. Besides the attack on public pensions, this year in Rhode Island all longevity increases for state employees was stricken from the law. In Rhode Island, employees enjoyed a 5% bump in pay 4 times throughout their career. That right was taken away without negotiation. Let's hope that Rhode Island's Governor can make a national statement. He has before.

The Honorable Governor Lincoln Chafee

Office of the Governor

222 State House

Providence, RI 02903-1196 July 21, 2011

Dear Governor Chafee:

I could not get much sleep last night thinking about the plight of retired public employees in Central Falls. What is currently happening is reprehensible, morally wrong and, quite possibly, illegal. This country is approaching a precipice and I think it is up to you to stand strong and correct injustice.

The consequence of government action amounts to the taking of wealth from a select group of people (public employee retirees) and reminds me of the taking of wealth from the Jews by the Germans of the 1930’s. Removing the hard earned rights to a pension will result in a waterfall of events that include; foreclosures, personal bankruptcy, inability to enjoy your last years by eating out in Central Falls restaurants, court actions involving alimony payments and significant marital stress.

Beyond the consequences, I want to talk about the legality of such takings. To begin with, the United States Constitution has established priorities for payments of public debt. The validity of the public debt of the United States…including debts incurred for payment of pensions … shall not be questioned.” U.S. Constitution, Article XIV, Section 4. While the clause uses the “United States”, Congress has clearly elevated the importance of paying pensions when considering the public debt. If I read this amendment like most people read the second amendment (eliminating part of the sentence) than the taking of pensions is unconstitutional.

I want to look a little closer at the Rhode Island Constitution and Article 1, Section 2 says a whole lot. I’m talking here about tax burdens being equally distributed. “…the burdens of the state ought to be fairly distributed among its citizens…” Confiscating wealth of retirees is an unfair distribution of the burden of debt. Government has its way to correct short budgets through taxation. This taxation should be equally shared by all and retirees should not have to folk over half of their earned pensions. By doing so, the public employee becomes the scapegoat, stripped of earned benefits, robbed of their future and paying a higher tax levy to government.

Additionally, Rhode Island has not exhausted its taxing potential and laws that eliminate the sales tax from the boats and yachts that line Narragansett Bay is not constitutionally sound. In this instance, wealthy citizens that can afford the toys of the Bay are excluded from taxation forcing higher burdens on everyone else.

Furthermore, when discussing options for solving pension issues for state employees, the Rhode Island Constitution is very clear. “No ex post facto law, or law impairing the obligation of contracts, shall be passed” RI Constitution, Article 1, Section 12. It is my strong belief that retiree agreements in state government must be met. I have no problem with amending the system for future retirees, but existing retirees should not be obligated to pay a higher tax burden. The Constitution of RI is clear; the burden must be shared equally.

Governor Chafee; I have seen you stand tall many times in the past. I could never forget you standing tall in the Senate when it came to Iraq. I remember you standing tall on the changing of the name of the State of Rhode Island and Providence Plantations by pointing out that the U.S. Constitution would have to be changed. You brought this to light after years of hemming and hawing in this state. I fully appreciate your understanding of constitutional law.

I am no lawyer, but what is occurring now in Rhode Island will spread throughout this country. We need to be making statements about the importance of maintaining the public trust. I was almost denied a mortgage refinance because the bank held feelings that public pensions may be pulled. We need you to stand tall and do what is right. Please do what is morally right. Protect public pensions and share the burden of taxation to fix the problems. Please make a statement now that gets the attention of everyone across this country. You have done it before and I hope you will do it again. I’m counting on you. You are my friend.

Sincerely,


tomtoak

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

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

Wednesday, June 10, 2009

Republican Radio Making Noise

You have to read today's front page story of the Providence Pamphlet (Providence Journal) regarding the feud at Rhode Island's premier radio talk station, WPRO (click here). It seems like even neo-conservative talk show folks just can't get along with each other, let alone define a vision for fixing things in this country.

If you read between the lines it is clear that John DePetro is not a team player. He's lucky he only got hit with a piece of paper in the eye. His little tantrum because Buddy Cianci asked one of his guests (Bruce Sundlun) to stay for his show (the show that followed) is truly "school yard". Oh what a tangled web we weave when first we practice to ...... act like A-holes! Let's face it, the line up on WPRO is disturbingly full of hatred, bigotry, arrogance and ignorance. The only host that shows some level of normalcy is Buddy, but even he falters frequently.

Republican radio seems to be obsessed with making the news instead of talking about the news. When they talk about the news, they use no basis in fact a high percentage of the time and consequently, generate the controversy that they all crave. They are all looking for the headline and are jealous when somebody else steals their thunder. In the end though, its the lies that we are all left to ponder. Rush Limbaugh is the "biggest" example of the need to make the headlines. He will say anything to make the nightly news cycle and it is mostly lies and hatred that he continues to foster.

Additionally, the problem with radio talk is the current culture centered on Republican philosophy that has failed us miserably. OK, it is Republican radio after all so one would expect radio hosts to sing the Republican song. We hear radio hosts repeatedly beat listeners over the head with the "Obama deficits" that will cripple us for years to come. I agree with the need to solve deficits, but get your facts straight! Bush era practices have lead to the lion share of future deficits. If you don't believe me; click here.

Many Republicans are highly critical of Keith Olbermann because of his reporting the liberal side of the news. I can understand that. His special commentaries can be extremely hard hitting and rude. If you have never watched his show on MSNBC, you should. Keith does something that conservative pundits never seem to do. Keith always backs up his sentiments with a stream of facts that can make your head spin. He especially loves to turn things around on Republicans when they make some off-handed stupid comment for political posturing. Just yesterday, Newt Gingrich made the comment that he is not a "citizen of the world" like Obama, he's a "citizen of the United States". Keith shows up with a tape of Ronald Reagan saying; "I am a citizen of the world" and all of a sudden, Gingrich looks like a fool.

From Limbaugh to WPRO right here in little Rhode Island, Republican radio needs to be reformed. If the FCC won't do it, then I think progressive citizens need to start seeking out new ways to change the dialogue. We need to start complaining to the sponsors of what has now become a joke in America.

I have one suggestion for WPRO. Try firing DiPetro; hell, he's been fired many times before for his bigotry. Then install Tara Granahan in his morning post. When she filled in for him last Friday, I heard her handle some of John DiPetro's usual crowd. She stood up to them with style and grace. Unfortunately, Republican radio is not looking for style and grace; they are looking for headlines.

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

Sunday, May 31, 2009

Consolidations - bigger is not always better!

Having lived through consolidations in government, I think that leaders have to re-evaluate the efficacy of such actions. As we look at the current state of the economy; ask yourselves, is bigger really better? Was it better to have AIG so big that it could not fail? Is it better to have GM so large that it can't function in the down economy? Was it wise to split AT&T into multiple companies a few decades ago?

It seems like every time there is a financial crunch in government or business, administrators react by insisting on larger organizations. The argument is always the same; by consolidating operations, we all become stronger. I want to be diplomatic in my response; but I think I need to say, bull shit! While leaders of institutions are well intentioned when devising new, larger organizations, they need to fully comprehend the consequences. Administrators need to look beyond quarterly results, annual results and even bi-annual results. True leaders need to look at a longer time horizon; perhaps decades. I'll go as far as saying, bigger is almost never better!

I lived and supported a reorganization that consolidated environmental functions within the State of Rhode Island. In the late 1970's, the Department of Natural Resources was combined with the environmental regulatory functions housed within the Department of Health. The new agency was named the Department of Environmental Management (DEM). The arguments all seemed to make sense and the leaders behind the change were the most dedicated professional I have ever known. In retrospect, the change was disastrous.

In the new agency, financial pressures did not disappear. Over time, fiscal issues took an exhausting toll on one side of the agency. The new DEM, when faced with mandates from the EPA and others, struggled to find resources to accommodate the needs of everyone. The consequence of the merger resulted in the draining of financial and personnel resources from the natural resource areas and shifted those resources to the environmental regulatory areas. In 1986, I became the chief of the forestry agency that had 65 full time positions, coupled with dozens of part time summer positions. When I retired in 2005; a retirement fostered by the frustration of dealing with management needs, I had 29 full time positions. Today, my successor has only 17 full time positions. Responsibilities have been amended, but the public generally requires the same service.

This is not the end of the story. When I retired in 2005, the DEM had roughly the same total number of employees as when I started as chief. Emphasis and power changed the allocation of resources. The legislature, fed up with the regulatory burdens imposed on businesses and citizens, continually limited the financial resources of the department. The natural resource areas; the white hat side of the department, was devastated by the continual shifting of money and personnel towards the other side of the agency. The regulatory areas; the black hat side of the department, kept on growing and growing at the expense of natural resources.

Today, natural resources areas at DEM have been decimated, eviscerated, castrated and left to struggle with an almost impossible job. I feel for the employees that are trying to do their best for the people of Rhode Island. Rhode Island is not better off because of the shifting financial dynamics within the larger, "more powerful" agency. The larger agency has lost status in the eyes of the legislature and the struggle to correct the lack of fairness will take generations.

Bigger is not better!

Tomorrow, I will discuss another pending reorganization that will have lasting negative consequences for years to come. This story will involve the consolidation of two colleges at the University of Massachusetts.

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

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

Thursday, April 16, 2009

I Enjoyed my Tea Yesterday

OK; While I enjoyed a cup of tea yesterday, I didn't enjoy listening to Republican radio. I try to listen as little as possible, but sometimes you just get that urge to listen to people squawk. While traveling a few miles down the road to bring home some Chinese food, I had an unfortunate encounter with a scum-bag.

On Route 3 in Coventry, a driver started beeping his horn as he moved to pass me. His windows were down and he had WPRO Republican radio blasting. As he pulled along side, he started yelling at me through the window, informing me that Obama is a communist. You see, I do have a single Obama sticker on my car. I listened to his rant as we approached the red light and then had to decide how to respond. I'm always in for a good political fight, so I gave it right back to him as we waited for the green light. You must know; I did ask myself, does this nut have a gun? I didn't care; for once in my life I'm in the political majority and he needed to know that. We exchanged fingers and parted ways as he turned left off of Route 3.

Funny thing about the middle finger; does anyone know where and when the middle finger was born as a statement of feelings towards your fellow man? The Dan York show on WPRO was covering the Tea Party in Providence and was allowing the hatred filled comments to spew forth over the air waves. My new friend had been incited by the classy discussion on the radio and decided he was going to do something about it. That something was to verbally assault a person he did not know because I had expressed my belief in a political candidate on the bumper of my car.

Now I believe in the right of all of those folks to protest in Providence. Heck, in my younger days I attended many protests a lot larger than that. If you've done it, you're in no position to complain about it. What I have never done is step on somebody Else's right to display their belief, or express their belief in a civilized way. I enjoy political discourse with reasoned people that think differently than I do. I like people that think differently than I do. The verbal assault that occurred was the action of a scum-bag. I could give out the guys license plate now but I guess I'll just hold onto it.

So what was accomplished in the protests of yesterday? I guess it empowered one right wing extremist to show why he is an uneducated moron. My scum-bag friend does not have a constitutinonal right to verbally assault anyone. As for the good folks in Providence that were enjoying their constitutional rights, I'm not sure they all agreed on the message of the day. On today's radio broadcast, Dan York couldn't figure out what it was all about yesterday; and he knows everything.

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