Special Session 2011: The Dozen Decision Makers
Friday, September 09, 2011
The Pension is a complicated issue for many reasons: the financial jargon, the complicated history, and the sheer size of the problem to name a few. But what makes the pension debate especially complex—not to mention nasty—is how universally affecting it is.
Unlike teacher contracts or corporate taxes, which are issues most relevant to specific interest groups, the pension is deeply entangled in the lives of all Rhode Islanders—public and private employees, the unionized and the not, taxpayers and politicians: everyone has a stake. Because of this, it’s going to be next to impossible to find a solution that makes everyone happy. The question now: whose going to get it the worst?
The debate will really heat up as we get closer to October, but one can already begin to see each side digging itself in for battle. In the coming weeks there will be a lot of talk, but there are sure to be a few figures who rise above the rest in shaping the debate. To make things easier, here’s a rundown of some of the heavy hitters from each corner of the ring. Make sure to watch what these people say—your dollars may depend on it.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe Unions
They’re big, they’re powerful, and they’ve arguably got more at stake in this issue than anyone else. Expect the unions to be vocal and assertive—especially with these leaders at the helm:
Michael Downey
A third generation plumber and the current president of Rhode Island Council 94 of AFSCME, Michael Downey is a union man through and through. Downey presides over the largest employee union in Rhode Island—boasting over 8,000 members—and has made it clear in the past he isn’t afraid to go to bat for them.
Earlier this year, Downey’s group filed a lawsuit insisting that public employees possess a legal right to collect the pensions that have been promised to them. He’s also been highly critical of legislators and the media, accusing both of using the unions as scapegoats.
Downey’s a formidable force with lots of political clout and legions of supporters to answer to, so there’s no doubt he’ll be a visible and vocal presence in the debate—oh yeah, he also sits on the special pension advisory board. And while it’s yet to be seen how influential he’ll turn out to be, one thing is for certain: his own pension is on the line, and there’s no way he’s letting it go without a fight.
Robert Walsh
An interesting counterpart to Downey, Walsh spent time working in banking and finance before being named the Executive Director of the National Education Association Rhode Island in 2001. Don’t let that fool you though, he’s committed to the unions’ cause—he’s currently the secretary-treasurer of the politically active labor coalition Working Rhode Island. Not to mention his close ties with the Governor Chafee, who received great support from the unions in the last year’s election. Walsh also sits on the pension advisory panel alongside Downey.
Walsh has been very skeptical of some of the more drastic suggestions regarding the pension, putting forth instead the prospect of further reamortization or off-setting some of the debt by selling the state’s future share in the Twin River Casino.
While Walsh may be resistant to many of the ideas floating around regarding reform, he’s certainly not shy about suggesting his own. It’s this boldness and ingenuity that will make him such a crucial player in coming weeks.
George Nee
Anyone who’s worked in the state house at some point in the past 25 years probably knows George Nee. Rhode Island’s AFL-CIO president is a seasoned lobbyist, and he has already carved out a prominent place for himself in the pension debate.
Back in early August, Nee was instrumental in the creation of the Rhode Island Retirement Security Coalition—an organization of several public sector unions explicitly organized around the pension issue. The organization includes Downey’s Council of 94 and Nee has also expressed support of Walsh’s Twin River proposal. So while each man may have his own personal objectives, the union big wigs certainly have a lot of overlapping objectives.
George Nee’s lobbying experience and long list of contacts will make him a political force to be reckoned with this fall.
Legislators
There are plenty of people who want a say in how pension reform turns out, but only one group actually has that opportunity: the legislators. They probably won’t be as outspoken and aggressive in their public comments as their unelected counterparts—it’s too easy to anger a constituency on an issue as touchy as this—but don’t forget that when the rubber finally meets the road, they’ll be the ones in the driver’s seat.
Gordon Fox
A familiar name to those who follow local politics, Speaker of the House Gordon Fox is one of the most powerful politicians in the state. And since the real nitty-gritty of reform will hammered out on his floor, there’s no doubt he’ll be a power player.
Fox’s ties to the unions are less close than those maintained by some of his colleagues. Last spring he voted “no” on the binding arbitration amendment so heavily supported by teachers unions, and has suggested in the past an openness to raising the age at which retirees can begin collecting their pensions. It’s hard to say for sure exactly where Fox will come down on the issue, but it’s doubtful there will be anyone with more power to direct the conversation—literally.
Teresa Paiva Weed
Like Fox, Senate President Paiva Weed will play a very direct role in the actual legislative process of pension reform. Weed can be somewhat unpredictable at times, unlike Fox, she voted “yes” on the binding arbitration amendment, much to the delight of the unions.
On the other hand, she also supported Governor Chafee’s proposal from last spring that state workers redirect their scheduled 3% pay increase into the pension fund. The proposal never played out, but Paiva Weed’s support of it was clear.
With a mixed track record like this it’s difficult to predict exactly where she’ll wind up, but rest assured that whosever side she winds up on they’ll be happy to have her.
Dominick Ruggerio
An absolute powerhouse on Smith Hill, Ruggerio has been a member of the senate since 1985 and was elected Majority Leader last November. Ruggerio is undoubtedly an engine in the legislature and he has connections over 25 years in the making.
His great political influence, however, will almost certainly be guided by his close affiliation with the unions. In fact, Ruggerio actually works as the administrator for New England Laborers’ Labor-Management Cooperation Trust, so there’s no doubt he knows which side his bread is buttered on. While he may not be the one banging the gavel, Ruggerio will be just as vital in setting the agenda.
Helio Mello
Chair of the House Committee on Finance, Helio Melo will unquestionably be a central figure in the debate. Last spring he did an impressive job with the House budget—one that earned him notable praise from conservatives—and he can be expected to bring the same sort of tough decision-making pragmatism to the pension discussion.
In fact, he has already started directing the conversation: last Tuesday, after the House and Senate’s special joint pension session, he laid out a clear agenda for the upcoming House-Senate Finance Committee meetings on the pension. He’s already got a hand on the rudder and you can expect him to keep steering the conversation right up to the final session.
Michael Marcello
A relatively conservative democrat coming out of Scituate, Marcello will be a key player to watch the fall. You might remember Marcello from last March, when he introduced and later passed legislation that barred municipal council members from receiving pension retirement plans.
Marcello also has close relations with the Treasurer—the two co-hosted an open forum last Wednesday evening in Scituate, where they both made it clear that they weren’t looking for small scale reform. Marcello has shown no hesitation curtailing benefits in the past and it’s a safe bet that the treasurer will rely on him to be just as firm and direct in the debate this October.
Municipal Leaders
While not true members of the state legislature, local political leaders and the constituencies they represent are deeply invested in the outcome of the pension issue. Many of these leaders have local pensions of their own to consider and won’t want to be left out of any major decisions made at the state level.
Allan Fung
The determined Mayor of Cranston Allan Fung has been talking about the danger of the pension problem for months now, and back in June he was tapped by Raimondo to sit on the Pension reform advisory panel.
Since then, he has been openly supportive of changing the defined benefit system that currently exists to something more closely resembling a 401(k) type plan—which would make public employees more accountable for their own pensions.
Fung has good reason to be invested: Cranston is just one of many municipalities that are suffering from gruesomely under-funded pension plans. Given this, it’s not surprising that Fung has been adamant in insisting that any state-level reform address local municipal plans as well.
Fung’s bold willingness to enact large-scale reform, coupled with his influential seat on the advisory board, give him an exceptional degree of sway over the conversation.
Other Players
They may not be as directly involved as the legislators or as overtly vested as the unions, but make no mistake: these individuals will be critical to the upcoming debate.
Gina Raimondo
A real no-brainer. Treasurer Raimondo is by far the most influential and visible player when it comes to pension reform. Since her election, the Treasurer has approached pension reform with bold determination. She’s repeatedly stated her commitment to large-scale fundamental reform, not just superficial postponement of the issue.
Raimondo’s background in finance means she’s well acquainted with the issues, and so far she’s done a remarkable job guiding the discussion—discouraging counterproductive argument and emphasizing the need for shared sacrifice.
And while her direct control over reform may culminate in the bill she submits to the General Assembly, don’t expect her voice to be any less influential during the legislative debate.
Chafee
While somewhat removed from the dirty business of actually drafting reform, Governor Lincoln Chafee has remained highly involved in the pension discussion. He’s worked closely with the treasurer and has made clear his willingness to make big changes.
Rhode Island’s political structure grants an exceptional amount of power to the legislature, but the Governor certainly still has a say. When the time comes for him to weigh in it’s important to remember that union support was crucial to Chafee’s election—they certainly won’t be forgetting anytime soon.
Kathleen Connell
While not technically a Union leader, Connell nonetheless commands a similarly influential and well-organized interest group: the RI chapter of the AARP. A former state senator and Rhode Island Secretary of State, Connell is no stranger to the ins and outs of Rhode Island politics.
The seniors and retirees that Connell represents undoubtedly have a vested interest in the outcome of the debate, and she’ll be certain to make their voices heard. In just the past few days the group has managed to mount an impressive PR campaign, complete with a website, radio spots, and a newspaper ad written as an “open letter” to Governor Chafee.
It’s still uncertain how involved the group plans to get, but don’t expect them to be content watching from the sidelines.
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