Rob Horowitz: Pension Reform is a Political Winner
Tuesday, December 20, 2011
The Brown University Poll released this past Friday shows there are exceptions to the old, and too-often true, cliché that “No good deed goes unpunished”. The prime architect of Rhode Island’s new comprehensive pension reform law, Gen. Treasurer Gina Raimondo (D), saw her approval rating rise to 52%, giving her the highest approval rating of all the state’s general officers and members of Congress. The survey also showed that 6-in-10 registered voters support the reform, while less than 3 in 10 oppose it.

Raimondo exercised political courage in taking on the state’s influential public employee unions to solve the pressing problem of a state pension system with an unfunded liability of $7.3 billion and with the prospect of rapidly increasing and unaffordable annual budget outlays for pension costs. The solution she crafted certainly requires sacrifices from current state employees, public school teachers and retirees, but it ensures that the pension system will be sustainable for future retirees. It also creates budget and political room to address other major challenges and puts Rhode Island on a fiscally sound path. .
Given the popularity of pension reform, Gov. Lincoln Chafee (I), House Speaker Gordon Fox (D), Senate President Teresa Paiva-Weed and an overwhelming majority of rank-and-file state legislators, can be reassured that they not only acted in the broad public interest, but made the right political calculation when they supported this bill.
Unfortunately, public employee unions have not, as yet, received the message. A front-page story in Sunday’s Providence Journal reports that Crossroads Rhode Island -- an agency that provides social services to the homeless and also actively supported pension reform-- is experiencing a major decline in contributions due to an aggressive campaign by public employee unions to discourage their members from contributing. As Phillip Keefe, President of the Rhode Island Alliance of Social Service Employees, said: “Tell them(Crossroads Rhode Island) to get used to it. You want to play hardball and that’s what happens.”
While it is understandable that the public employee unions would be upset with organizations for taking an opposing position on an issue that is so important to them, this kind of naked intimidation is bound to backfire in the court of public opinion where the public employee unions are already well behind. It is one thing to take tough actions against businesses who oppose safe working conditions and living wages; it is quite another to punish an organization that serves the homeless simply because the agency disagrees with you.
Public employee unions in other states such as Ohio have won big recent victories precisely because they have worked hard to engage the sympathies and support of the broader public. Rhode Island public employee unions, despite their big defeat in the pension battle, do not seem to realize that much more than political muscle is required if they are going to successfully make their case on future issues.
In this holiday season let’s not lose sight of one of the few good news stories in today’s politics--- the adoption of comprehensive pension reform and the public rewarding its chief architect Treasurer Gina Raimondo with deserved high poll numbers. And please join me in sending an end-of-the-year contribution to Crossroads Rhode Island.
Rob Horowitz is a strategic and communications consultant who provides general consulting, public relations, direct mail services and polling for national and state issue organizations, various non-profits and elected officials and candidates. He is an Adjunct Professor of Political Science at the University of Rhode Island.
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Comments:
Edward Smith
9:49am on Tuesday, December 20, 2011
How appropriate! Labor goes out of its way to hurt a social services agency that helps people who have absolutely nothing.
David Beagle
12:51pm on Tuesday, December 20, 2011
This is the hand that elected democrats have delt Rhode Island. They created an immovable, inflexible, narrow minded force that will have to be delt with for the foreseeable future. Can hardly waite for the COLA mess to trickle down hill into the municipalities.
Joseph Fazio
7:33pm on Tuesday, December 20, 2011
QUID PRO QUO
Let us talk about the the fact that EngageRI spent over $525K to lobby for the pension reform act. It is a lobbying organization with a clear agenda. Now look at the non-profit, Crossroads. Why is a non-profit engaging in lobbying? In a recent article in The Non-Profit Quarterly, the author asks the same question. Why is a non-profit lobbying in an area that has nothing to do with homelessness? Perhaps the director should resign and admit that it was inappropriate to become involved in lobbying efforts for a pension system. But then again those associated with EngageRI operate from the shadows, as stated in the Providence Journal...EngageRI was not willing to release the names of their supporters. So maybe you shouldn't expect warm feelings from people that feel they were mistreated and used as scapegoats for a flawed political system
Real Clear
9:40pm on Tuesday, December 20, 2011
Crossroads-- has a operating budget of $100,000. It's director pockets $150,000 a year. What a scam!!! Tell Ann "I only was listening to Gina" cough up $100,000 for the poor homeless.
As for the pension theft, Gina lied through her teeth. Not including entering new employees and claiming the average age of death is 87. The public was led around by the nose.
watching providence
11:21pm on Tuesday, December 20, 2011
Sorry Rob, this is why non profits and businesses should stay out of politics. They run the risk of losing customers who disagree with their views. Could Ann be hoping to funnel more public dollars into Crossroads instead of paying public pensions? Nearly 40% of our state budget goes to social services now, how much more does she want? Maybe we need to cut back more in social services? We have generations of people waiting for handouts, and now we give them FREE CELL PHONES too! Please, stop the madness!
Edward Smith
12:56am on Wednesday, December 21, 2011
--------
Agree that nonprofits should steer clear of political posturing, but this only looks bad for labor.
William Berube
11:10am on Wednesday, December 21, 2011
Mr. Horowitz fails to mention one important fact: A portion of every donation made to Crossroads by public employees was diverted from the poor and given to EngageRI to lobby for pay cuts for those who made the donations. It's very obvious that public sector workers have been very generous with their money regarding charities throughout the years, but they are not fools. They will not fund their own destruction.
Jan ODonnell
8:04pm on Wednesday, December 21, 2011
150K a year for a director of a non-profit. Yikes!!! Why are people spinning this against the state workers and teachers. They don't make that kind of money. You can rest assured that the people who normally donated to Crossroads have found another charity to support. Sadly, there are many who take care of the homeless.
I don't blame them, I would change my charity also. Where are all EngageRI contributors? If they can come up with 617K for two months of lobbying,imagine what they could do for the homeless. They won't though.