Blais: RI's Leaders Need an "Ah-Ha" Moment Soon for the Economy
Lisa Blais, GoLocalProv MINDSETTER™
Blais: RI's Leaders Need an "Ah-Ha" Moment Soon for the Economy
Year over year, RI leaders fail to create a budget that includes a plan to eliminate future deficits but wrangle over how much revenue on hand will go to the various agencies and special interests. The structural deficit is definitely not an issue that fans the flames of most citizens’ interests but it sure does burn through their pocketbooks! Do most people realize that the thought process of putting the budget together never seems to consider that doing the same thing year after year doesn't address the underlying problem of not having enough money to pay the expenditures in the near future? Our state can only be run for so long by fighting the current year’s fire.
Who pays for this juggling? You do and so do the truly vulnerable who depend on a safety net in their worst of times and find that their “piece of the pie” has been cut to the advantage of others. The cost of that juggling is expressed in a variety of ways as illustrated by the high cost of living in RI and by the public debt that we approve when we are faced with bond referendum on our ballots when we show up to vote. We weigh that public debt narrowly; we might think that a particular bond is a good use of money or that it represents something that would be nice to have. But, we typically never seriously consider the weight of that debt over time. Or, recall the debt that we approved during prior election cycles.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIf you paid attention to Governor Chafee’s recent State of the State Address, you heard his recommendation to approve $275 million of bond referendums this November. This in addition to the $200 million approved at the ballot box last time around which, if this years’ requests are approved, would put us close to almost half a billion in debt! This is our debt punted to future years without even considering the interest on that debt. Half a billion, give or take is a whopping number in context of the size and population of our small state.
There is also other debt that isn’t yours (because you and but a handful of your legislators didn’t specifically approve it) but that the governor has included in his budget this year. He wants us to pay the 38Studios bondholders for a second year in a row. The legislature approved the first payment, a “place-holder”, as it was referred to, of that “moral obligation” last year. Governor Chafee clams that we have a moral obligation to those bondholders for the entire amount, to those same investors who clearly understood that the state had no legal obligation to make good on those bonds.
Where is the “moral obligation” to the taxpayers and citizens of RI? It seems to be sorely lacking as we gasp under the worst unemployment level in the country (tied with Nevada) with too many underemployed people in our state. So, in the big picture who will be hurt by doling out millions to bondholders because of a “moral obligation”? The “ordinary” (tongue in cheek) folks will be and the most vulnerable people living in RI.
Last year, funding for the developmentally disabled had to be fought for while the first payment for 38Studios bondholders was made. Taxi cab drivers have been taxed and this year so will small business owners of bed & breakfasts. It doesn’t pay to be “ordinary” in RI, does it? Property taxes increase while health insurance premiums fall far short of being “affordable” for those of us who pay full boat for coverage, utility rates increase and the underdogs will face yet another fight in the State House for funding again this year.
Let’s pause and look at those utility increases. Robert Shields, chairman of the group Deep Water Resistance wrote in the commentary section of the ProJo "RI will be hurt by deepwater wind". He broke down the numbers very simply and stated that $596 million will be paid by rate payers in additional utility costs. Well, that's a given because of the agreements already reached. The wind farm has a useful life of 20 years so he basically divided the nearly $600 million by the 20 year life span and stated that it will cost an additional $30 million a year for rate payers. That is just like a tax only you don't pay it to the state; you pay it to National Grid. He also asked if the legislature has this cost to the rate payer on their radar. Good question, evidently, they don’t.
RI leaders have a “moral obligation” to the people of RI to provide a state budget that includes plans to eliminate future deficits. Projected deficits of $1.2 billion over 5 years do not even reflect the costs to meet Governor Chafee’s claim that the federal government has set a goal that calls for states to make sure that fewer than 10% of their bridges are structurally deficient. We don’t do pot holes well, what do you think that will cost us? Neither is the estimated cost to run RI’s health insurance exchange, HealthSourceRI, nor is that cost included in this years’ budget. Governor Chafee created this exchange and then stated that the issue of funding it should be discussed by the current gubernatorial candidates! Nice work. Side note, that isn’t your debt either because the legislature never approved the exchange. It was implemented by executive order on the coattails of federal revenue, federal revenue that will dry up soon. The elephant that remains in the room are any additional costs related to potential changes to the 2011 pension reform.
If RI leaders don’t take hold of dealing with the long term deficit then there are only 2 options, more taxes or revamping our notion of what government should be spending our resources on. That's it. Otherwise, the future only looks bleaker.
Remember the childhood song “the ham bone is connected to the leg bone”? The notion that everything is connected applies to our structural deficit and our state budget, too. Time is running out. We are looking for the “ah-ha” moment from our RI leaders that will ultimately save our state’s economy.
Smallest + Largest Tax Increases in RI
#39
Pawtucket
FY 2013 to FY 2014 Tax Increase: -0.68%
Rank: 39
FY 2013 Tax Levy: $100,068,109
FY 2014 Tax Levy: $99,386,793
Amount of Increase: -$681,316
#38
Hopkinton
FY 2013 to FY 2014 Tax Increase: -0.40%
Rank: 38
FY 2013 Tax Levy: $18,300,511
FY 2014 Tax Levy: $18,228,199
Amount of Increase: -$72,312
Note: Has an independent fire district. Levy for fire districts not included.
#37
Cranston
FY 2013 to FY 2014 Tax Increase: 0.12%
Rank: 37
FY 2013 Tax Levy: $181,367,888
FY 2014 Tax Levy: $181,591,060
Amount of Increase: $223,172
#36
Jamestown
FY 2013 to FY 2014 Tax Increase: 0.37%
Rank: 36
FY 2013 Tax Levy: $19,089,398
FY 2014 Tax Levy: $19,160,796
Amount of Increase: $71,398
#35
North Providence
FY 2013 to FY 2014 Tax Increase: 0.40%
Rank: 35
FY 2013 Tax Levy: $67,468,778
FY 2014 Tax Levy: $67,737,041
Amount of Increase: $268,263
#34
Glocester
FY 2013 to FY 2014 Tax Increase: 0.41%
Rank: 34
FY 2013 Tax Levy: $20,666,156
FY 2014 Tax Levy: $20,750,248
Amount of Increase: $84,092
Note: Has an independent fire district. Levy for fire districts not included.
#33
West Greenwich
FY 2013 to FY 2014 Tax Increase: 0.42%
Rank: 33
FY 2013 Tax Levy: $17,700,512
FY 2014 Tax Levy: $17,775,266
Amount of Increase: $74,754
#32
Foster
FY 2013 to FY 2014 Tax Increase: 0.56%
Rank: 32
FY 2013 Tax Levy: $11,206,523
FY 2014 Tax Levy: $11,269,380
Amount of Increase: $62,857
#31
Warren
FY 2013 to FY 2014 Tax Increase: 0.57%
Rank: 31
FY 2013 Tax Levy: $21,962,605
FY 2014 Tax Levy: $22,087,246
Amount of Increase: $124,641
#30
Barrington
FY 2013 to FY 2014 Tax Increase: 0.66%
Rank: 30
FY 2013 Tax Levy: $55,757,749
FY 2014 Tax Levy: $56,127,312
Amount of Increase: $369,563
#29
South Kingstown
FY 2013 to FY 2014 Tax Increase: 1.03%
Rank: 29
FY 2013 Tax Levy: $66,399,782
FY 2014 Tax Levy: $67,082,117
Amount of Increase: $682,335
#28
Lincoln
FY 2013 to FY 2014 Tax Increase: 1.08%
Rank: 28
FY 2013 Tax Levy: $51,933,416
FY 2014 Tax Levy: $52,492,287
Amount of Increase: $558,871
Note: Has an independent fire district. Levy for fire districts not included.
#27
North Kingstown
FY 2013 to FY 2014 Tax Increase: 1.37%
Rank: 27
FY 2013 Tax Levy: $69,092,073
FY 2014 Tax Levy: $70,035,857
Amount of Increase: $943,784
#26
Cumberland
FY 2013 to FY 2014 Tax Increase: 1.53%
Rank: 26
FY 2013 Tax Levy: $59,560,610
FY 2014 Tax Levy: $60,472,810
Amount of Increase: $912,200
Note: Has an independent fire district. Levy for fire districts not included. Cumberland actual amount is an estimate reported by the town. Final levy will be set in May 2014
#25
Warwick
FY 2013 to FY 2014 Tax Increase: 1.57%
Rank: 25
FY 2013 Tax Levy: $220,300,865
FY 2014 Tax Levy: $223,763,444
Amount of Increase: $3,462,579
#24
Little Compton
FY 2013 to FY 2014 Tax Increase: 1.74%
Rank: 24
FY 2013 Tax Levy: $10,153,215
FY 2014 Tax Levy: $10,329,739
Amount of Increase: $176,524
#23
East Providence
FY 2013 to FY 2014 Tax Increase: 1.91%
Rank: 23
FY 2013 Tax Levy: $101,738,436
FY 2014 Tax Levy: $103,679,393
Amount of Increase: $1,940,957
Note: East Providence fiscal year is Nov. 1 to Oct. 31. Figures represent an state estimate which will be finalized in spring 2014.
#22
Westerly
FY 2013 to FY 2014 Tax Increase: 1.93%
Rank: 22
FY 2013 Tax Levy: $64,073,479
FY 2014 Tax Levy: $65,309,605
Amount of Increase: $1,236,126
Note: Has an independent fire district. Levy for fire districts not included.
#21
Middletown
FY 2013 to FY 2014 Tax Increase: 1.95%
Rank: 21
FY 2013 Tax Levy: $42,569,846
FY 2014 Tax Levy: $43,400,329
Amount of Increase: $830,483
#20
Charlestown
FY 2013 to FY 2014 Tax Increase: 1.95%
Rank: 20
FY 2013 Tax Levy: $22,244,817
FY 2014 Tax Levy: $22,679,022
Amount of Increase: $434,205
Note: Has an independent fire district. Levy for fire districts not included.
#19
Tiverton
FY 2013 to FY 2014 Tax Increase: 2.22%
Rank: 19
FY 2013 Tax Levy: $36,705,787
FY 2014 Tax Levy: $37,519,924
Amount of Increase: $814,137
Note: Has an independent fire district. Levy for fire districts not included.
#18
Narragansett
FY 2013 to FY 2014 Tax Increase: 2.25%
Rank: 18
FY 2013 Tax Levy: $45,045,014
FY 2014 Tax Levy: $46,060,213
Amount of Increase: $1,015,199
Note: Has an independent fire district. Levy for fire districts not included.
#17
Portsmouth
FY 2013 to FY 2014 Tax Increase: 2.41%
Rank: 17
FY 2013 Tax Levy: $46,892,274
FY 2014 Tax Levy: $48,021,889
Amount of Increase: $1,129,615
Note: Has an independent fire district. Levy for fire districts not included.
#16
Providence
FY 2013 to FY 2014 Tax Increase: 2.42%
Rank: 16
FY 2013 Tax Levy: $332,768,119
FY 2014 Tax Levy: $340,814,523
Amount of Increase: $8,046,404
Photo: Flickr/thurdl01
#15
Smithfield
FY 2013 to FY 2014 Tax Increase: 2.43%
Rank: 15
FY 2013 Tax Levy: $50,485,821
FY 2014 Tax Levy: $51,713,919
Amount of Increase: $1,228,098
#14
Scituate
FY 2013 to FY 2014 Tax Increase: 2.63%
Rank: 14
FY 2013 Tax Levy: $25,737,325
FY 2014 Tax Levy: $26,415,040
Amount of Increase: $677,715
Note: Scituate fiscal year is April 1 to March 31.
#13
Johnston
FY 2013 to FY 2014 Tax Increase: 2.73%
Rank: 13
FY 2013 Tax Levy: $68,325,207
FY 2014 Tax Levy: $70,191,873
Amount of Increase: $1,866,666
#12
Exeter
FY 2013 to FY 2014 Tax Increase: 2.76%
Rank: 12
FY 2013 Tax Levy: $12,699,098
FY 2014 Tax Levy: $13,048,989
Amount of Increase: $349,891
Note: Has an independent fire district. Levy for fire districts not included.
#11
Bristol
FY 2013 to FY 2014 Tax Increase: 3.20%
Rank: 11
FY 2013 Tax Levy: $35,907,363
FY 2014 Tax Levy: $37,055,367
Amount of Increase: $1,148,004
#10
Richmond
FY 2013 to FY 2014 Tax Increase: 3.39%
Rank: 10
FY 2013 Tax Levy: $16,192,073
FY 2014 Tax Levy: $16,740,541
Amount of Increase: $548,468
Photo: Flickr/peppergrasss
#9
Newport
FY 2013 to FY 2014 Tax Increase: 3.49%
Rank: 9
FY 2013 Tax Levy: $65,177,966
FY 2014 Tax Levy: $67,451,455
Amount of Increase: $2,273,489
Photo: Flickr/Jasperdo
#8
Coventry
FY 2013 to FY 2014 Tax Increase: 3.56%
Rank: 8
FY 2013 Tax Levy: $62,327,613
FY 2014 Tax Levy: $64,549,069
Amount of Increase: $2,221,455
Note: Has an independent fire district. Levy for fire districts not included.
#7
Burrillville
FY 2013 to FY 2014 Tax Increase: 3.63%
Rank: 7
FY 2013 Tax Levy: $27,830,582
FY 2014 Tax Levy: $28,840,267
Amount of Increase: $1,009,685
Note: Has an independent fire district. Levy for fire districts not included.
#6
North Smithfield
FY 2013 to FY 2014 Tax Increase: 3.82%
Rank: 6
FY 2013 Tax Levy: $28,611,366
FY 2014 Tax Levy: $29,705,309
Amount of Increase: $1,093,943
#5
New Shoreham
FY 2013 to FY 2014 Tax Increase: 3.85%
Rank: 5
FY 2013 Tax Levy: $8,400,360
FY 2014 Tax Levy: $8,723,934
Amount of Increase: $323,574
#4
West Warwick
FY 2013 to FY 2014 Tax Increase: 3.89%
Rank: 4
FY 2013 Tax Levy: $54,252,606
FY 2014 Tax Levy: $56,363,626
Amount of Increase: $2,111,020
#3
East Greenwich
FY 2013 to FY 2014 Tax Increase: 3.91%
Rank: 3
FY 2013 Tax Levy: $49,896,853
FY 2014 Tax Levy: $51,845,789
Amount of Increase: $1,948,936
Note: East Greenwich fiscal year 2013 & 2014 levies reflect the towns merger with the fire district in June 2013.
Photo: Flickr/Jimmy Wayne
#2
Woonsocket
FY 2013 to FY 2014 Tax Increase: 3.99%
Rank: 2
FY 2013 Tax Levy: $57,588,098
FY 2014 Tax Levy: $59,888,228
Amount of Increase: $2,300,130
Note: Woonsocket fiscal year 2013 includes a supplemental tax.
#1
Central Falls
FY 2013 to FY 2014 Tax Increase: 4.00%
Rank: 1
FY 2013 Tax Levy: $13,674,638
FY 2014 Tax Levy: $14,221,500
Amount of Increase: $546,862
