The House Finance Committee’s proposed state budget provides another great reminder why people who work in private industry (the folks who fund the government) get disgruntled with the state legislature.
Don’t get me wrong: this is not one of the worst budgets that the state legislature has produced in the modern era. There are some good things there, such as the slashing of beach fees, a lack of tax increases or new taxes, and a tax cut for retiree income taxes. And there are no broad based tax hikes or anti-business initiatives that will kill jobs.
So on the surface, the budget isn’t necessarily a bad one (Admittedly, we’re in Rhode Island, so the tyranny of low expectations reigns supreme.)
But a look at the slashing cuts to Rhode Island charter schools gives us an insight into the Rhode Island government mentality, which is to punish success, while rewarding mediocrity and underachievement. Instead of lifting up those who are lagging, the budget proposed changes to the school funding formula for education attempt to drag down higher achieving charter schools like Blackstone Valley Prep by stripping them of funding.
Upside Down Approach
In the private sector, accomplishment and success are rewarded with additional levels of investment. In the state government of Rhode Island, success is punished as evidenced by the fact that the proposed state budget, which is all but certain to garner legislative approval. The budget allows municipalities to reduce their allocation to charter schools by either a flat rate of 7 percent, or by the total amount of expenses that charter schools don’t incur whereas traditional public schools do. This includes things like the cost of education for people ages 18-21 or certain types of text books or other supplies.
Governor Gina Raimondo originally proposed cutting the funding to charter schools by $355 per student. The legislative leadership argues that their proposal is harmful to the charter schools, but that’s remains to be seen and is hard to believe.
Firstly, this legislative proposal will further empower the bureaucrats on the municipal level. Those bureaucrats will account for how much they need to spend that the charters don’t. There’s an old saying, “figures don’t lie, but liars figure”. There’s going to be lots of figuring going on around here really soon.
Secondly, and most importantly, the big question is why the legislature wants to punish success.
Punishing Success
For instance, a school like Blackstone Valley Prep, a mayoral academy, will lose significant funding when this proposal becomes reality. According to the state data listed on the school’s website, the school exceeded the state’s performance in almost every grade level in both math and language arts.
Blackstone Valley Prep’s low-income scholars outperformed even the non low-income students attending traditional public schools in Rhode Island--so much for the notion that only children from middle and higher income families can achieve academic success.
Given the academic successes at Blackstone Valley Prep, a more prudent state legislature would allocate additional money to Blackstone Valley Prep and similar charters which are achieving educational success for the students instead of slashing their funding and complicating their mission.
No, this isn’t an attempt to throw it into the face of the face of the traditional public schools. Of course those schools also feature excellent, motivated, and dedicated teachers and students. I personally know several of them whom I consider friends.
Defending The Cuts
Here’s how House Speaker Nicholas Mattiello explains the change, according to a story posted on GoLocal earlier this week.
“Our goal and the final decision maker is equity. Each district is treated differently,” said Mattiello. “Overall, charters are better off. We’ve received a lot of inquiries. The perception of winners and losers I don’t agree with. If you’re a loser, you were winning for too long. So someone who was losing can be brought up to where they should.”
The losers should be emulating and copying the winners. The winners should not be being brought down to their level.
The state legislature should be looking to find ways to get the traditional public schools to emulate the success of the charters—not bring them down to their level. The rank-and-file legislators should reconsider this proposal and find a way to protect the funding of the state’s charter schools that would see it cut by this budget.
Russell J. Moore has worked on both sides of the desk in Rhode Island media, both for newspapers and on political campaigns. Send him email at [email protected]. Follow him on twitter @russmooreu713.
Related Slideshow: Winners and Losers in Raimondo’s FY17 Budget Proposal
An $80 million appropriation for construction and renovation, including of $9.1 million for the school building authority.
A $40 million general obligation bond to renovate and modernize school facilities with a focus on immediate health and safety, and investing in STEAM learning spaces.
A requirement that all schools post their actual budget online.
The Governor continues to address the pressing needs of the state’s children and the condition of the schools they attend in her FY17 budget proposal; the public could have the opportunity to follow-suit by approving the general obligation bond in November — or not.
While the Governor delved little into structural healthcare issues in her budget address on Tuesday (she did propose a multi-million dollar comprehensive strategy to address the opioid overdose epidemic which includes medication assisted treatments at the prisons, and $187,000 to combat lead poisoning), the Rhode Island Hospital Association immediately lauded the budget following its introduction, and addressed that while it is facing some reductions, that it "applauds" this years budget after landing on the "loser" list last year.
“The Hospital Association of Rhode Island applauds Governor Raimondo’s commitment to strengthening our state’s health care system,” said Michael R. Souza, president, Hospital Association of Rhode Island. “Although hospitals will face reductions in the proposed budget, we look forward to working with the General Assembly and Administration to implement lasting solutions that provide us the resources and tools necessary to transform the health care delivery system. Hospitals will continue to invest in innovation, technology, and a high-quality workforce with the continued support of our State partners.”
Proponents of affordable housing opportunities in the state notched a preliminary victory by landing a spot in the Governor's’s budget. Now they need to make it through the General Assembly — and garner approval from voters in November.
Said the Housing Network of RI following Raimondo's budget address:
The Housing Network of Rhode Island and its membership of sixteen nonprofit affordable housing developers wish to thank Governor Raimondo for recognizing the importance of state investment in housing opportunities for low and moderate income Rhode Islanders. As we all work together to reinvigorate the state’s economy, affordable housing development plays a critical role in our state’s recovery plan. Governor Raimondo’s inclusion of an affordable housing bond in her FY 17 budget will not only stimulate the creation of new housing and boost economic growth by creating jobs in the construction, retail and service industries, but will also bring substantial additional outside financial resources into our state.
Data shows that many Rhode Island households continue to struggle to find housing options that are affordable to them. According to HousingWorks RI, two in every five Rhode Island households are cost burdened, spending more than thirty percent of their income on housing. Governor Raimondo’s inclusion of an affordable housing bond recognizes this need and is a notable step towards addressing a major need of working class Rhode Islanders. We commend Governor Raimondo’s efforts and are grateful for her leadership on such an important issue.
Raimondo continues to try to stave off the “brain drain” in Rhode Island by supporting incentives to keep recent college grads in the state.
In her FY17 budget proposal, the Governor upped the Wavemaker Fellowship to $5 million to increase the loan forgiveness program, and through the Ocean State Grad Grant looks continue funding through RI Housing to provide recent college graduates with up to $7,000 in down payment assistance on a first home.
Good for employees, not so much for business owners. The Governor has proposed raising the state’s minimum wage to $10.10, making good on her campaign promise to do so (albeit one year later that planned).
The business community including the National Federation of Independent Business, who said that “any increase in the minimum wage will impact job create at small businesses for younger, less experience workers," continues to push back on the issue. The same arguments were made last year when the state raised the minimum wage to $9.60; watch and see if any new approaches are taken by employers during the session related to the issue.
First blush win for the state — the state gets more revenue ($7.1 million) by increasing the cigarette tax twenty-five cents from $3.75 to $4.00. The price per pack would still be less than neighboring Massachusetts ($9.78 in RI vs $10.18 if it goes through — it’s now currently $9.49 in RI). More Rhode Islanders might be deterred from smoking with the increased cost.
The National Federation of Independent Business, however, said the proposed increase in the cigarette tax will hurt small convenience stores. When CVS stopped selling cigarettes, those smaller stores undoubtedly saw the windfall. Can they absorb a small tax increase?
Medical Marijuana Caregivers - and State of Rhode Island
The RIDOH and DBR along with the State Police are calling for medical marijuana caregivers and cultivators to now pay an annual fee for a tag on every medical marijuana plant. The state entities claim that “under current law, the caregiver market lacks accountability and oversight” as opposed to compassion centers. The state agencies say that the tags amount to just 2 percent of the value of the marijuana produced.
The Governor and the General Assembly however need to address an underlying issue that has plagued them since the implementation of the medical marijuana — which is that the oversight committee as mandated by law has never once met. The state should be included on the “loser” list for failing to adhere to the mandate as required by law, as they would have the input from stakeholder and empirical evidence to what is working — or not — in the current law. Instead, the state is clamping down with zero input from the community.
“Governor Raimondo’s proposed budget does not provide for the substantial increase needed for home care agencies to comply with new federal and state mandates, the increased cost for delivering healthcare services in the home, the barriers that Rhode Islanders face when accessing home care, and the ability for home care agencies to retain direct care workers.”, said Nicholas Oliver, Executive Director of the Rhode Island Partnership for Home Care.
While the Governor proposed a seven-percent increase for Medicaid home and community-based long-term services and supports, including personal care attendant services provided by contracted home care agencies, the Governor also proposed another increase in the state’s minimum wage from $9.60 per hour to $10.10 per hour, a 50 cent increase. Because the current average home care aide starting wage is $10.50 per hour, the proposed increase, earmarked toward direct care worker wages, increases the wage to a minimum $11.00 per hour, but without financial support for compliance to the employer mandate for health insurance coverage under the Affordable Care Act for home care agency employees and compliance with the U.S. Department of Labor overtime and travel rules impacting home care. Oliver added, “The Governor’s proposed increase is nothing more than an inflation adjustment that otherwise establishes a ninth consecutive year of frozen rates. This budget proposal does not reflect in writing what the Governor has publicly stated in the past year, such as the need to rebalance long-term care, the need to shift funding toward home and community-based healthcare services over nursing homes, and her interest to establish a comparable wage for home care workers to their counterparts throughout the healthcare sector.”
Governor Gina Raimondo's budget proposal raised some eyebrows in Republican (and Libertarian) circles for the expansive role of the state government in market-based conditions.
Justin Katz with the free-market Center for Freedom and Prosperity offered the following budget release.
After budget addresses from progressive governors, free-market commentators frequently refer to the budget's focus on special interests, but Governor Raimondo's fiscal year 2017 budget is a stunningly special-interest budget. Nearly every item is directly targeted toward a particular narrow group of recipients. It's the kind of budget a chief executive puts forward when she doesn't trust the people of her state to make their own decisions. For example, despite a projected increase of $85 million in income and sales taxes, next year, the governor offers offers no broadbased tax reductions. In fact, she wants to add nearly $250 million in debt to the $300 million she wants to incur without voter approval for her RhodeWork's program.
In short, this budget doubles down on the strategy of remaking Rhode Island in the governor's image. If you fit her vision for the state, there's money for you. If you're one of the existing special interests, in Rhode Island, you'll like what you're getting. But if you're a regular Rhode Island chasing your own dreams according to your own lights and supporting your own responsibilities, you'll find yourself holding the bill, and without subsidies.
It comes as no surprise that the Governor remains committed to pushing through her newly revised RhodeWorks plan — which includes truck tolls — to address the state’s infrastructure needs. On Tuesday, Raimdondo said the state needs to “stop playing the politics of procrastination” with fixing the state’s bridges and roads.
Pay-go proponents — as well as public-private partnership ones — will have a short window to contest the Governor’s new plan to have a $300 million Garvee bond in order to support the program, which is on the fast track for consideration at the General Assembly with the Speaker’s stated goal of sealing the deal before the body breaks for February vacation.
Expect the opposition to remain heated in these coming weeks, however.
