Pam Gencarella: Introducing The People's Resolution
Pam Gencarella, GoLocalProv MINDSETTER™
Pam Gencarella: Introducing The People's Resolution
Here’s our proposed resolution that the General Assembly should take up immediately.
The People’s Resolution
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ADDRESSING THE PEOPLE’S CRISIS OF CONFIDENCE IN RI STATE GOVERNMENT AND PROPOSING A VISION THAT WILL LAY THE FOUNDATION FOR A PROSPEROUS RI ECONOMY
WHEREAS, The elected officials of the General Assembly desire to promote the welfare of all Rhode Islanders; and
WHEREAS, RI ranks last in virtually every survey taken, whether it be on the business climate, the cost of living and doing business in the state, or the level of trust Rhode Islanders have in their government leaders; and
WHEREAS, The recent unfolding of events regarding 38 Studios has created a crisis of confidence in RI state government amongst its residents; and
WHEREAS, Elected leaders have been unable to create economic opportunity for its poor and its middle class since the beginning of the recent recession; and
WHEREAS, The budgets put forth by the General Assembly heretofore have not been based on a vision, but rather the need to placate special interest groups, thereby include actions that simply balance the current year’s budget, but leave the state’s projected 5 year budget with an embarrassing $1.2 billion in deficits; and
WHEREAS, RI’s very own premier company, CVS, lamented that “people just aren’t thinking about RI” when it comes to locating a business here; and
WHEREAS, That same CVS representative stipulated that companies look at four pillars when deciding where to locate or relocate a business - a state’s fiscal stability (employment and long-term budget projections); the cost of doing business (specifically, the regulatory environment, the cost of energy and the totality of the tax burden); the quality of the work force; and the infrastructure; and
WHEREAS, The causes of the state’s structural deficits are never addressed, and include the unwieldy size and high cost of RI government; the broken state insurance systems, such as TDI and Unemployment, that cost RI businesses and taxpayers much more than other states; and, a state government plagued with waste, as exemplified by reports of outrageous overtime, along with high pay and benefits for public union employees as compared with private industry; and
WHEREAS, Additional causes of the structural deficit also include RI welfare systems that are riddled with fraud, as exemplified in reports on EBT card irregularities and Medicaid irregularities; and
WHEREAS, Additional causes of the deficits include the high cost of unfettered illegal immigration into the state of RI, estimated to be $300 million annually; and
WHEREAS, RI’s infrastructure is crumbling and there is no solid plan for future repairs and maintenance as evidenced by the most recent, $130 million Providence Viaduct project - a project the DOT hopes will be covered by the Federal government and if not, it will be a DOT “fiscal cliff”; and
WHEREAS, RI’s regulatory environment is known to be one of the most burdensome and costly for small businesses;and
WHEREAS, RI’s education system produces ‘unemployable young workers’ as explained by the RI Manufacturer’s Association; and
WHEREAS, The Governor’s decision, under executive order, to create and operate its own Health Insurance Exchange has left the state with no source of funding for the estimated $23 million annual maintenance cost nor has it provided for the underestimated cost piled on from expanded Medicaid, expected to be an additional $52 million next year; and
WHEREAS, The General Assembly desires to address all of the above referenced pillars because fixing them will help eliminate the structural deficit and provide the foundation for RI’s economic turnaround; and
WHEREAS, The General Assembly recognizes that it can no longer nibble at the edges by reducing funding for the most vulnerable of our population, including the disabled and children in the care of DCYF; and
WHEREAS, The General Assembly has the courage and vision to address these issues; now, therefore be it
RESOLVED, That the General Assembly endeavors to restore people’s faith in government through passage of good government legislation, including, but not limited to Repeal of the Master Lever and Restoring Jurisdiction Over the General Assembly to the Ethics Commission; and, by providing subpoena power to the legislative committee investigating 38 Studios; and, through creation of an Inspector General Office to root out fraud, waste and abuse; and be it further
RESOLVED, That the General Assembly will not end the 2014 session without clearly defining a vision that will put RI on a firm track to recovery; and be it further
RESOLVED, That the General Assembly will address the four pillars to include legislation that (1) eliminates the structural deficits driven by fraud, waste and abuse in the welfare systems as researched and reported to them, (2) revamps the state’s insurance systems, thereby driving the cost of these programs down, (3) reduces the cost of illegal immigration by implementing the federal government’s E-Verify system, (4) reduces or freezes the level of public union employee pay and benefits, and (5) reduces the number of state employees, thereby reducing the size and cost of government, all of which will allow for the most effective allocation of scarce resources - to flow into infrastructure and education; and be it further
RESOLVED, That the General Assembly will address RI’s overall tax structure to create an inviting economic landscape for new business and a more competitive landscape for existing businesses; and be it further
RESOLVED, That the General Assembly will reduce the burden of RI’s regulatory environment for small businesses, and thereby reduce the inherent costs; and be it further
RESOLVED, That the General Assembly recognizes the importance of the Education Commissioner’s reforms and will not legislatively dilute and dismantle those reforms, and in fact, will legislatively support said reforms; and be it further
RESOLVED, That the General Assembly will propose a visionary plan for maintaining the state’s infrastructure, all without the burden of additional debt placed on the taxpayer; and be it further
RESOLVED, That the General Assembly will ultimately take control of the Health Insurance Exchange to determine its fate, and derail the use of it to create a one-stop shopping, Dependency Portal; and be it further
RESOLVED, That the General Assembly will place a moratorium on the issuance of new debt until such time as the state has reached its pre-recession level of employment; and be it further
RESOLVED, That the General Assembly be and hereby is committed to restoring RI’s faith in government, and, particularly, in the General Assembly and is also committed to restoring RI’s economy to a level that allows families to maintain their dignity and prosper.
Pam Gencarella is a member of OSTPA, a taxpayer advocacy organization in Rhode Island.
The Ten Biggest Issues Facing the RI General Assembly in 2014
#1
The Budget
The latest report by the House Finance Committee illustrates that Rhode Island will start the next fiscal year, which starts in July 2014, with an estimated deficit of $149 million. The report shows the FY 2014 Budget contains numerous overspending problems—meaning that the General Assembly will have to cut costs somewhere.
So where will the cuts come from? Lawmakers will have to examine the state's costliest programs. According to the Rhode Island Public Expenditure Council, the most expensive government programs in Rhode Island are Elementary and Secondary Education, Public Welfare, Pensions, Higher Education, and Interest on Debt. Click here to view a comprehensive list of the state's costliest government programs.
#2
Bankrupt Communities
The state may be two years removed from Central Falls filing for bankruptcy, but 2014 could be the year that other financially strapped Rhode Island communities follow suit—most notably Woonsocket and West Warwick.
With bankruptcy on the table in both 2012 and 2013, this year poses more financial uncertainty for the cash-strapped city of Woonsocket. Earlier this year, the city's bond rating was downgraded due to the city's numerous financial issues—including a growing deficit, increasing unfunded pension liability, and a severe cash crunch.
Similarly, the embattled town of West Warwick faces a variety of financial questions in 2014. With its pension fund set to run out by 2017, the town must address its unfunded liabilities this year if it hopes to regain financial stability. That, coupled with an increasing school department deficit, make West Warwick a contender for bankruptcy.
Look for Woonsocket and West Warwick's elected state officials to address their respective cities' financial issues in the upcoming legislative session.
#3
Sales Tax
With the Special Joint Legislative Commission to Study the Sales Tax Repeal set to report their findings to the General Assembly in February, the possibility of sales tax repeal in Rhode Island could become a reality in 2014.
"Our sales tax is killing small businesses, especially those in border communities," said Rep. Jan P. Malik (D-Dist. 67, Barrington, Warren), the commission's chair. "How can Rhode Island continue to compete at 7 percent, with Massachusetts already lower than us and considering reducing its sales tax even farther? How can Rhode Island restaurants compete at 8 percent? They can’t. We need to find a way to fix this, and a serious discussion of our sales tax is a discussion we need to have, now, before more small stores close their doors."
In addition to Malik, proponents of sales tax elimination include the Rhode Island Center for Freedom and Prosperity and Forbes Magazine.
#4
EDC Reorganization to Commerce Corporation
On January 1, 2014, the Rhode Island Economic Development Corporation will be replaced with the Rhode Island Commerce Corporation—a move which has the potential to impact to adversely affect recipients of federal funding contracts made possible currently through the EDC.
This could include the state's Broadband Initiative, Brownfields program, and other contracts made through the EDC. As a result, recipients will now be required to re-apply for federal funding as of January 1st.
The massive overhaul of the EDC was prompted by the 38 Studios debacle, which is projected to cost Rhode Island taxpayers $102 million. 38 Studios, the now defunct video game company, filed bankruptcy in May 2012 just months after securing a $75 million loan from the EDC.
#5
Marijuana Legalization
With the state's marijuana decriminalization law going into effect this past April, Rhode Island may be a candidate for marijuana legalization in 2014.
Legislation to legalize marijuana has been introduced in each of the last three years, but has never been voted on. Earlier this year, Rep. Edith Ajello (D-Dist. 3, Providence), who is chair of the Judiciary Committee, introduced the bill in the House. Roughly half of the Judiciary Committee supports the measure.
The bill also has the support of the Marijuana Policy Project, an organization focusing on drug policy reform, which hopes to legalize marijuana in ten states, including Rhode Island.
Approximately 52 percent of Rhode Island voters support legalizing marijuana for recreational use, according to a Public Policy Polling survey conducted in January.
Marijuana is currently legal in Colorado and Washington.
#6
Constitutional Convention
Come November 2014, Rhode Island voters will likely be asked whether they wish to convene a constitutional convention, which involves individuals gathering for the purpose of writing a new constitution or revising the existing one.
Every 10 years, Rhode Island voters are asked whether they wish to amend or revise the constitution. Voters rejected this opportunity in 1994 and 2004. Although rare, Rhode Islanders can vote to hold a constitutional convention and in effect, take control over the state government.
If approved, a special election is held to elect 75 delegates, who then convene to propose amendments to the Rhode Island Constitution. These amendments are then voted on in the next general election.
The likelihood of this occurring highly depends on if the General Assembly does its job to ensure residents that the state is heading in the right direction financially and structurally.
Rhode Island’s last constitutional convention took place in 1986. It proposed 14 amendments—eight of which were adopted by voters.
#7
Education Board Structure
Less than a year after the General Assembly created the 11-member Rhode Island Board of Education to replace the Board of Regents for Elementary and Secondary Education and the Board of Governors for Higher Education, there are multiple questions surrounding the structure of this newly consolidated agency.
Although lawmakers voted to merge the state's two education boards in June, the Board of Education now wants to split its agency to create two separate councils—one with the statutory authority over kindergarten to grade 12 and another governing higher education.
The Board of Education will present its proposal to the General Assembly during its next legislative session and lawmakers will once again determine how the agency should be structured.
The Board of Education currently governs all public education in Rhode Island.
#8
Sakonnet Bridge Tolls
Rhode Island may have implemented tolls on the Sakonnet River Bridge this past year, but they could be gone by 2014.
On January 15, the East Bay Bridge Commission—which was established to allow lawmakers and officials investigate various funding plans, potentially eliminating the need for tolls on the Sakonnet River Bridge—will report its findings to the General Assembly. The General Assembly is then required to vote on the issue by April 1.
The commission was established in July following the General Assembly's approval of the 10-cent toll.
#9
Superman Building
Located on Westminster Street in Downtown Providence, the former Bank of America Building (commonly referred to as the Superman Building) may be the tallest building in the state, but as of right now, it's just a vacant piece of property.
The building's current owner, High Rock Westminster LLC, was most recently looking for a total of $75 million to rehabilitate the skyscraper—$39 million of which would come from the state.
With the sting of the 38 Studios deal still fresh in the minds of lawmakers, a $39 million tax credit appears unlikely.
The question of what will become of the Superman Building remains to be seen.
#10
Master Lever
Championed by Republican gubernatorial candidate Ken Block (while head of the RI Moderate Party), the movement to eliminate the Master Level, which allows voters to vote for all candidates of one political party with a stroke of the pen, is poised to heat up in 2014.
Despite Block's strong push to repeal the 1939 law, the measure did not get a vote in the General Assembly last session.
In October, Block told GoLocal that he believes that House Speaker Gordon Fox is responsible for the General Assembly not voting on the proposal.
“Despite the support of a majority of 42 state Representatives, thousands of emails from concerned RI voters and unanimous testimony of more than 100 people who came to the State House in person to testify that the Master Lever had to go, the Speaker personally killed the bill in the most unaccountable way possible—he did not allow the House Judiciary Committee to vote on the bill,” Block told GoLocal.
Speaker Fox has stated on multiple occasions that he believes the Master Level is a legitimate tool that many voters use.
