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 Weekly Update For the week ending October 23, 2009 |
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Dear William,
"Those who expect to reap the benefits of freedom, must, like men, undergo the fatigue of supporting it." ~ Thomas Paine
This past week brought us the unveiling of the second investigation from the Hummel Report, a contentious hearing at the State House regarding binding arbitration for teachers' contracts, and plenty of publicity for OSPRI.
The latest featured segment from the Hummel Report is titled "Signs of the Times." It exposes the millions of stimulus dollars that Rhode Island is spending to replace road signs.
OSPRI President Bill Felkner will discuss Wednesday's binding arbitration debate at the House Labor Committee in the President's Message.
We sent out a press release this week regarding the RIDE Mandates. See below for more details and a link to the press release.
The Ocean State Policy Research Institute was mentioned in an article about the Hummel Report on EastBayRI.com. A link to the article is provided below.
Tom Linehan, OSPRI's Fellow for Small Business Affairs, recently had an Op-Ed published in the Warwick Beacon. OSPRI was also referenced in the Beacon by columnist and former-councilman Robert Cushman. More details are listed below.
Bill Felkner was referenced in the Providence Business News in an Op-Ed by Justin Katz, administrator of the blog AnchorRising.com.
As previously mentioned, the OSPRI blog has been revived, thanks to our Research Associate, Stephen Beale! He is a regular contributor to the blog, so check back often for great commentary on everything that is taking place in both our state and our country.
Especially in light of the most recent investigation by the Hummel Report, there remains a great deal of interest in the federal stimulus project, so please don't forget to visit our Rhode Island Stimulus Watch website (www.ristimulus.org) and cast your vote for the projects you feel are, or are not, critical at this time. This website was designed for you, the taxpayer, and we need your feedback!
No new documents were added to the RI Data website this week; all documents can be found by going to the Transparency Train. The RI Votes database is fully updated for the current legislative session: about 2000 bills were introduced in the House and Senate, and you can find them all through the RI Votes section of the Transparency Train.
As always, OSPRI continues to traverse the state in order to spread the word about our organization and the Transparency Project. We have spoken before neighborhood organizations, taxpayer groups, college students, and local public officials. If you are interested in having Mr. Felkner or one of our scholars and/or associates address your group, please contact us via phone (401-228-6691) or email (info@oceanstatepolicy.org).
Finally, if you have any questions about OSPRI or are interested in getting involved, don't hesitate to contact me!
Best regards,
Parker Lacoste
Assistant to the President |
| President's Message |
Dear Friends,
Wednesday, the House Labor Committee met to discuss H-5142. This bill would drastically alter the way teacher contract negotiations are carried out.
The current system is such that the two sides, the union and the school committee, negotiate until an agreement is reached or the contract expires. Usually, if an agreement is not made by the time the contract expires, a temporary extension is signed until an agreement is made. But as we saw in East Providence, contracts can expire, and when they do it opens up a world of possibilities.
This has the NEA and AFT very scared.
The unions' solution is H-5142. This bill is designed to force taxpayers into a deal determined by an appointed professional arbitrator if the teachers' union doesn't accept the offered employment arrangement.
As an example, imagine if you went to a prospective employer and asked for a job. The employer said, "This is what the job is worth and what I can afford to pay." Normally, the market allows you to look for another job elsewhere if you don't like the deal, and allows someone else to take the job if they think the deal is ok. But if H-5142 was law of the land, and if you didn't like what the employer offered, you could insist that a third party decides how much you get paid. And the arbitrator will always agree to higher compensation than what the employer is offering because their job is to find a compromise.
The unions are for this bill, obviously, and say that 70% of Rhode Islanders agree with them, according to a poll they sponsored.
Dan Beardsley, the Executive Director of the League of Cites and Towns, testified that his organization was originally founded because police and fire received binding arbitration and they wanted to make sure the towns didn't take that beating again. He also testified that 34 of the 39 town councils signed or were signing resolutions opposing binding arbitration. Not one single council is endorsing binding arbitration.
Tim Duffy, Executive Director of the RI Association of School Committees, also testified his association's opposition to binding arbitration and said 22 school committees expressed opposition. No committees signed resolutions in support of binding arbitration.
The RI Association of Superintendents provided similar testimony.
And from Connecticut, where they have had binding arbitration for teacher contracts for decades, representatives from their version of the League of Cities and Towns testified that it has caused expenses to soar. Governor Rell has even proposed suspending the practice as a move to help the economy.
But the unions say binding arbitration will save money so we should start doing it in Rhode Island to help the economy.
Needless to say, all the citizens and taxpayer groups testifying were also opposed.
Because OSPRI is a non-profit, we don't register as lobbyist and as such do not testify unless asked. Luckily, Representative Gablinske invited us to present some of our research, which we were happy to do.
Brian Bishop, our Fellow on Regulatory Policy, and director of the Founders' Project, provided the case law that states contracts may not be enforced past the terms of the elected officials that negotiated them (which may happen if this bill were to become law), and showed data outlining the effects arbitration has had on teacher salaries.
Brian also made an excellent point that East Providence, the city that has inspired the unions to support this bill, is not an outlier, as suggested. So, there really isn't any reason to rush to a proposed solution (binding arbitration) to a problem that doesn't exist. You see, every town in RI lost a significant portion of their revenue when the governor cut state aid. East Providence is just the only town reacting to this loss of revenue by reducing compensation, rather than cutting jobs or passing the expense on to the taxpayers.
H-5142 could be the legislature's way of saying, "towns no longer may deal with revenue shortfalls by cutting salaries and benefits."
There was a decidedly strong indication from the House Labor Committee that they were going to pass something, but they were looking for a way to make it palatable. Even representatives who you would think were fundamentally opposed seemed poised to work a deal. Then again, Representative Gemma, the bill sponsor, said he wouldn't vote for it in its current condition.
I was pleased to hear the Committee request, on more than one occasion, input from interested parties on which state mandates could be eliminated to help towns deal with revenue shortfalls.
This looks like the Committee's attempt to throw us a lifesaver. After all, if H-5142 were to become law, it would significantly reduce taxpayers' ability to alter public employee compensation. So, eliminating state mandates on such things as bus monitors, certifications, staff ratios, "alternative" education, and step compensation schedules may be the only available options to deal with budget shortfalls, other than increasing taxes.
The requirement to use collective bargaining is also a state mandate. Do you think that one is on the auction block?
Onward and upward,
Bill Felkner
President and Founder
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| RIDE Mandates Press Release |
OSPRI sent out a press release regarding the RIDE Mandates:
"The House Labor Committee heard testimony last night on House Bill 5142 that would expand the use of binding arbitration in contract disputes involving teachers and other school employees, including testimony from Brian Bishop, OSPRI Fellow on Regulatory Policy.
Brian has previously written, and more extensively written, on the constitutional issues involved and we we have more research to follow. But the Committee acknowledged that all towns are under tremendous financial pressure and there was a suggestion that relief from state mandates was required..."
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| OSPRI + HR on EastBayRI.com |
An article about the Hummel Report was featured on EastBayRI.com. Within the article is mention of OSPRI:
"The video footage, which is supplemented by an online link to the police contract for Woonsocket, is being heavily promoted by the radio station 630 WPRO, which is partnering with Mr. Hummel and Ocean State Policy Research Institute on the project.
The idea for the Hummel Report was born a few months after Mr. Hummel parted ways with Channel 6, where he had helped establish the investigative feature "You Paid for It." The segment exposed corruption and waste funded with public money. As years passed, and as management changed at the station, Mr. Hummel grew weary of the station's shifting approach toward coverage.
He opted to walk away and considered contacting another television station after a 3-month non-compete time period passed, but recognized the sour economy and staff reductions throughout the market.
Mr. Hummel spoke with William Felkner, the founder and president of Ocean State Policy Research Institute (OSPRI), a nonprofit foundation that promotes "free-market ideals." The two began brainstorming other ways for Mr. Hummel to continue covering corruption in this state from outside the regular media outlets."
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| OSPRI in the Warwick Beacon |
The Ocean State Policy Research Institute has appeared twice recently in the Warwick Beacon. First, OSPRI Fellow for Small Business Affairs, Tom Linehan, had an Op-Ed, "Are we a city-state?", published in the Beacon last week. This week, former Warwick City Councilman Robert Cushman referenced OSPRI in his latest column.
Click Here to read Tom Linehan's Op-Ed.
Click Here to read Robert Cushman's column. |
| Felkner referenced in the PBN |
OSPRI President Bill Felkner was referenced in the Providence Business News in an Op-Ed written by Justin Katz, administrator of AnchorRising.com, a right-leaning blog that focuses primarily on politics and policy.
Click Here to read Justin Katz's Op-Ed.
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| Have you read the OSPRI Blog? |
The OSPRI blog has been growing exponentially. Stephen Beale, OSPRI's new Research Associate, will be a regular contributor on the blog and already has some great posts, including this one:
Is the Ocean State Green Enough?
October 21, 2009
Green is all the rage these days: green jobs, the green economy, and green power. But a new report suggests that the Ocean State is already plenty green. According to the American Council for an Energy-Efficient Economy, Rhode Island ranks as the ninth most energy efficient state. Now, how about getting us a little higher in the business-friendly rankings? For more on this story, visit the Providence Business News.
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| RI Stimulus Watch Update |
WE NEED YOUR VOTE!
The RI Stimulus website is designed to provide a venue for Rhode Islanders to give feedback on proposed stimulus projects. The site allows visitors to place comments, add descriptions, write reasons for or against the projects, and cast a vote. We tally the results and rank the projects as "most critical" and "least critical" depending on how you vote.
So, please visit the site ( www.ristimulus.org or www.ristimuluswatch.org) and let us know what you think about the projects in your backyard.
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| RI Data update |
This week there were no new monthly check registers and documents were uploaded to the RI Data section of the Transparency Train due to a technology issue. Check back next week for new public documnets!
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