Moore: RI Has Bigger Ethics Issues Than Lally's Job
Russell J. Moore, GoLocalProv MINDSETTER™
Moore: RI Has Bigger Ethics Issues Than Lally's Job
Politicians will deny it until they're blue in the face. But there's one thing I've learned after covering politics for a decade: nothing is ever done for free.
So Gina Raimondo came under fire last week for hiring Donald Lally, who stepped down as a state representative earlier this year. Raimondo insists that she didn't do anything for House Speaker Nicholas Mattiello in return. Lally will make $87,000 a year as part of the Governor's staff. But she has "loaned" out the former legislator to the Department of Business Regulations. That defies the spirit of the state's revolving door statute, enacted to prevent cronyism.
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The major concern is that while the media is busy reporting on and talking about a small issue, the massive expenditures are ignored.
For instance, the state Republican Party criticized the move. True to form, they did so awkwardly.
"It appears that we are going back to the good old days with old boy network politics under Raimondo. You can't move Rhode Island forward by going backwards on ethics."
Was there a time when Rhode Island wasn't operating under the good ole boy network politics? Did I miss that? As far as I can remember, that's always been the case. Rhode Island is not, nor has it ever been some bastion of ethics.
Demand Ethics
None of this is to say that the GOP's point wasn't correct. The backroom deals in this state have absolutely hurt the economy. The only businessmen and women who want to do business in state where you need to know somebody are corrupt themselves.
Let's not forget, Raimondo once criticized then-Governor Lincoln Chafee's appointment of Richard Licht to the Superior Court during a debate last June. That move also violated the spirit of the revolving door statute. And she was right to point that out. But now she's done the same thing.
Sure, that's bad. And it should be discussed. But, what about what we're not talking about?
The Republican Party, and other critics, should also criticize Raimondo's management of the Rhode Island Pension system instead. Since Raimondo became General Treasurer, the state has dramatically increased the amount of fees paid to financial money managers. In 2014, the state paid $70 million to money managers. The state was paying less than $30 million before Raimondo becoming Treasurer.
Pay More, Get Less
It's no secret the cost has increased due to the investments in hedge funds. Yet outside of Rhode Island, financial analysts realize that hedge funds aren't worth it. For instance, an article in Bloomberg this month stated that hedge funds “failed to beat a 60/40 [stock and bond index] mix every single year since 2002, and they’re on track to repeat this year.”
This year, the Rhode Island pension fund got a 2.2 return on investment - in a poor year for the broader financial markets. Hedge funds were supposed to protect the fund from poor markets. That hasn't happened considering so many other pension funds across the country faired better.
Yet what paying managers high fees does do is allow politicians to raise much more money from the finance industry. There are so many accountants, lawyers, and other professionals connected to hedge fund managers who can be tapped to raise money. In other words, they can't say "no" when they're asked. That’s why she’s a fundraising juggernaut. It doesn’t take much dot connecting to figure it out folks.
More Important Than Lally’s Job
Raimondo is no longer Treasurer, but her ties to the finance industry haven't weakened. Just last month she tapped several key finance industry experts, including Rhode Islander, Mark Gallogly, to fund a Brookings Institution study of the state's economy.
Former Rhode Island Director of Administration, Gary Sasse, called the study a farce on social media. Sasse tweeted, "If you don't believe the recommendations of Brookings economic development are already in the Gov's desk draw, I have a bridge to sell you," about a week ago.
So we have a farcical study funded by the finance industry. One of the funders, Mark Gallogly, profits from the state pension fund business.
No one is suggesting any of it is illegal. But while it's still important to know which connected people are getting the well paying state jobs, Rhode Islanders would do well to keep their eye on the millions of dollars handed over to the finance industry. That's something to talk about. It’s much more important than Lally’s new, cushy job.
Raimondo Policy Summit Suggestions
"Immediately make a strong and clear statement addressing the avalanche of police killings, systemic injustice and misconduct." -- Richard Wayne Garganta
"Start with firing Gist. Hire someone from RI. There are plenty that are qualified. Every governor elect promises jobs. Fair taxes. Fair car tax in particular!" -- Tom Aquino
"Please refuse to repeal voter ID. There is NO reason you shouldn't need to prove who you are to vote, given that you need an ID for a library card, to buy liquor or to return items at a store without a receipt." - Karen Hogan.
"Tourism. tourism. tourism. work with what assets that are in place." -- John Paul Gauvin
"I wish you would hire people in Rhode Island." -- Jill Beth Forman
"The heart of the economy will come from self employment before we establish industry. Cut the sales tax, cut red tape for start-ups and invest in small self employed / small business." -- Mark McLinden
"I've worked in the Rail Road industry for 30 yrs, I have tried to bring rail jobs to the state for years. The MBTA and its contractor Keolis need a place in RI to repair and maintain a large amount of equipment in the Quonset Point Industrial park. so far only a small amount of work is being done there. I had a plan that involved using the skill trades training program to create high paying jobs and bring the rail industry to RI utilizing the North East corridor from Boston to Washington." -- David Pina
"Repeal the car excise taxes. Abolish them at the State level and throughout all individual municipalities. Refuse to implement any portion of Rhode Map RI as it strips sovereignty from towns, encroaches on personal property rights, and was committed by unelected quasi-official bureaucrats. Examine Detroit. Repeat in Providence. Don't touch voter ID laws. Examine Colorado and Washington. Repeat in Rhode Island." -- Kyle Fitzsimons
"We continue to see viable manufacturing and mill space turned into apartments and lofts. This temporarily stimulates the economy with construction but does nothing for long term growth. More people and housing does not equate to more jobs. Our states current unemployment and jobless numbers can easily provide evidence of this. We need to work with our cities and towns to reinvest in areas that can be viable for commercial and industrial use. Apartments are fine and dandy, but they shouldn't be the first choice of a vacant building with the utility structure of a 24hr production facility for 800 skilled workers. We are squandering our industrial resources. Work with national grid, water authority, transit and others to determine what sites are suitable to even handle bringing jobs back to RI." -- Adam Scott
"Get that riverfront built...have Buddy at the meetings...use his ideas!!!! It is about tourism and families....we don't need manufacturing on the waterfront....we need a soccer field, restaurants, the nursing college, let's use the water....clean that area up!!!! Buddy has the ideas!!" -- Shirley Richard Grande
"As a retired hospital administrator and current foster parent a through review of DCYF and the foster care system is urgently needed." -- Mary Dowd Stuck
"Can't stand the term "thought leader" - this term gets thrown around like it really means something - hoping one or two of these "thought leaders" might also be a real leader with bright/practical ideas." -- Chuck Taylor
"Legalize MJ. It's a win/win. Save money, collect taxes and most importantly, stop criminalizing people for choosing a substance safer than what the [government] allows." -- Mike Parent
"Infrastructure and schools! Both need fixing. I would support raising taxes on people who make $125k and up for this. I am in that bracket so I don't need haters." -- Carl MacNeal
"Remember 60% of Rhode Island voted against you." -- Joseph D'Amico
"Tax all the property Brown University owns. Abolish all the "sweetheart" deals." -- Robert Lawrence
"I would recommend that rather than trying to 'build stuff up', she should concentrate on breaking down some of the obstacles that stand in the way of business startups... The government is not supposed to create the jobs. The government is supposed to set the policy to attract free market jobs." -- Timothy Falardo
"Focus on what we can do to maintain gambling and gaming in RI once the casinos in Mass go live. A large percentage of people come from Mass to play at Twin River. Check out revising the law about only serving free alcohol with food, so patrons at Twin River don't need to pay for drinks while gambling. It sounds silly but most casinos are allowed to comp alcoholic beverages. The lottery and gambling is the 3rd biggest revenue producer in RI, like it or not we need to try to maintain the income from this." -- Bretty Curry
"Ken Block can save our state 1 billion. He should be involved!" -- Dennis Lurgio
"Open the rest areas. Look at quasi public agencies and run them the same as other agencies. Tax structure, fees, streamline processes to make it easier for businesses. Don't need 39 superintendents, school committees etc. Statewide curriculum, regionalize." -- Clair Newall
"Go supervise what your friend Anastasia Williams is doing to the John Hope Settlement House and stop turning a blind eye because she's your friend!!!!!" -- Sandra Sanchez
"Increase compassion with funding for our mentally ill. For the children in South County there are very few, child psychiatrists. Families cannot work if they do not have affordable child care...Yet the plan is to cut another 10 million." -- Laura Lehrman
"I could not help be struck recently driving though Warwick at all the "For Sale" signs on the homes. Meanwhile, I keep hearing about silicon valley/San Francisco's housing shortage. We need business as well as population here in Rhode Island. Maybe Gina could make a pitch to some of the West Coast tech giants to start an East Coast campus? We're costal, we have so much potential, affordable housing, and top notch universities. Maybe then we could retain some of the graduates once they are done with their schooling, if they have an industry to go into." -- Lyndsay Drew
"In other states they have rest areas that provide fuel, food ( McDonalds,Burger King, Dunkin' Donuts and convenience stores. We have the land ( closed rest stops on 95 and 295) . This would provide jobs in the construction industry and service industry also. The taxes gleaned from this would be a benefit to the state. We should also look into using prisoners from the ACI to do road maintenance and clean up." -- Ed Bates
"She and the state definitely should be thinking about what the presence Rhode Island's first National Historical Park in the Blackstone Valley will bring to the economy in tourism dollars." -- Comfort Inn Providence / Pawtucket
