The House GOP Policy Group continued its review of the Rhode Island Convention Center Authority (CCA), releasing a 19 page report on Wednesday detailing RICCA [under]utilization rates and high paying employee benefits, management and marketing, and warned of future pension obligations -- and offered suggestions as to how to address cost-cutting measures.
"The big takeaway is that from the beginning, the issue is that the CCA has been managed poorly -- and the root cause is that the lease takes all accountability off their shoulders," said Representative Patricia Morgan.
"We don't want to tear it down, we just want it to be better," continued Morgan, "They just haven't been working up to their potential. It's empty 60% of the time."
Goals, Findings
The policy group said at the outset that its goal reviewing the CCA lease deal has been to: research spending issues and reveal wasteful practices; encourage the state’s management to operate effectively and efficiently; encourage reform in areas where resources are currently being used poorly or fraudulently; encourage a stronger economic environment and reduce taxes for our beleaguered taxpayers and increase voter knowledge of important state issues and promote civic participation
In its report released on Wednesday, the RPG found private CCA management company SMG has "several collective bargaining agreements, which expire at various dates through December 2016, covering approximately 71% of SMG’s labor force."
"Collective bargaining agreements expiring prior to June 30, 2015 cover approximately 19% of SMG’s labor force. This provides an opportunity to reduce overhead and costly work rules," wrote the policy group. "Additional CBA concessions might include the elimination of duplicative work assignments, sharing of personnel across venues wherever possible, realigning pay and benefit compensation to be commiserate with private sector employees."
Moreover the RPG cautioned that the CCA -- which has seen $450 million invested in it by the state -- might be on the hook for the pensions of the private management company's employees.
“The Authority’s legal counsel has determined that it is reasonably possible that the Authority could be responsible for funding the unfunded pension obligations attributable to SMG’s labor force, past and present, who are beneficiaries of the union-sponsored multi-employer defined benefit plans to which SMG contributes."
Representative Robert Lancia said that while the state needs to identify waste, fraud and abuse, that there needs to be a call to action.
"We had to issue recommendations -- you can highlight all the problems you want, but we need tools, the taxpayer needs to know where we can cut and do better," said Lancia. "We had a series of situations over the years, from the Foundry, the banking crisis, where ultimately it doesn't go well for whatever reason -- but it ultimately it costs the taxpayer. Those involved say, 'We hear what you're saying, we're sorry, that won't happen again.' But that's not enough anymore."
"I think the problem for the average person while they're trying to live their lives, they don't have a clue what's going on, all the while being good citizens, paying taxes," said Lancia. "When I see this, this is heartbreaking. You can highlight all the problems you want, but we need tools, the taxpayer needs to know where we can cut and do better."
Related Slideshow: Ten Bills to Watch in 2015 General Assembly
The last day for bill introductions in the Rhode Island House of Representatives is slated for February 12, but things should really begin heating up one month following, when Governor Gina Raimondo is due to present her FY16 budget proposal to the chamber -- and members have a new sense of the fiscal realities facing the state, and what the Governor will be pushing for.
With the 2015 General Assembly just underway (and over four months to go), below is a list of 10 of the top bills facing the General Assembly now, or expected to come.
Will marijuana legalization see daylight -- or even success -- in RI in 2015?
Advocates are buoyed by Governor Gina Raimondo's public openness to considering the possibility. As other New England states weigh the prospects of legalization, and Rhode Island faces a budget deficit, proponents are bullish on the potential.
"[Governor] Raimondo's recent comments — made very early in the legislative session — about marijuana policy reform being something we should "absolutely" look at sends a clear message to the General Assembly," said Jared Moffat, Director of Regulate RI. "She wants lawmakers to have an open, honest, and serious discussion about this issue."
"Our bill to regulate marijuana like alcohol hasn't been introduced yet, but will be soon," added Moffat. "Polls show a majority of Rhode Islanders are tired of costly and ineffective prohibitionist policies that punish adults for using a substance that is far less harmful than alcohol. With the huge loss in gambling revenue, lawmakers will be looking for a way to close the budget deficit, and marijuana consumers are one of the few groups that wouldn't mind paying more taxes."
The slots-parlor-turned-casino-with-table games in Lincoln (through voter approval in 2012) wants to take another step towards full fledged destination status with a hotel, in order to compete with looming gambling on the horizon in Massachusetts.
"We expect there will be a bill, but we've always believed the conversation should start with the town first," said Twin River spokesperson Patti Doyle, about the prospects of a hotel being broached during the session.
"There's a meeting in Lincoln with residents on [February] 24th. After the public hearing, we will approach the Lincoln delegation about the possibility of bill introduction."
"We're looking for the repeal of the prohibition of a hotel, which exists in the current master contract between UTGR and the state," noted Doyle.
Mattiello pointed to RI being just one of 13 states that has an income tax on social security, while Sasse questioned its fiscal impact -- and its impact on job creation.
Representatives Patricia Serpa and Bob Craven have already introduced legislation push for Mattiello's proposal -- look to see how the rank and file follow suit and if opposition will arise at the Assembly to it.
The bill recently introduced by State Representative David Bennett -- a psychiatric nurse -- to equip and train school nurses and officials in grades 6-12 to administer Narcan, the antidote for opioid overdoses, was proposed at the same time the RI Department of Health announced that Narcan was administered on youth under the age of 18 over 50 times in 2014.
"RI is on the cutting edge with this, before we congratulate ourselves too much, we're leading the nation in drug and alcohol use," said Dr. Jody Rich, at the Miriam Hospital. "I haven't checked the stats, but we're up there. We need to try everything we possibly we can. There were 1000 overdose deaths in MA in 2013, we had 200 in RI. In this day and age you don't want to see young people doing heroin, oxycontin, vicodin -- much of which is being cut with the fentanyl."
The proposal is slated for a hearing on Wednesday February 4 with the House Committee on Health, Education, and Welfare (HEW).
Will Rhode Island ban smoking at state beaches in 2015?
"Discarding cigarette butts, cigar butts and tobacco waste on beach sand is not only unsightly and unclean, it can be particularly hazardous to small children, who may handle or ingest this material,” said Sen. Erin P. Lynch (D-Dist. 31, Warwick, Cranston), who noted that cigarette butts contain 200 known poisons, many of which are known to cause cancer, in her legislative proposal.
The legislation would make smoking or disposing of smoking products illegal on or within 20 feet of all beaches under the control of the Department of Environmental Management. Violators would be guilty of a misdemeanor and subject to a mandatory fine of between $150 and $1,000 for a first offense, between $500 and $1,000 for a second conviction and between $750 and $1,000 for subsequent offenses. In addition to fines, the court may, as a condition of probation, order violators to spend eight hours collecting litter at state beaches.
The current moratorium on state aid to school construction in Rhode Island set to expire in May, and Senator Ryan Pearson introduced legislation to reform the process through which school construction projects are approved and provide a designated funding stream to meet the needs of modern public education facilities.
“This is a starting point for discussion on the critical issue of school construction aid,” said Sen. Pearson (D – Dist. 19, Cumberland, Lincoln). “This issue is a priority in the Senate for good reason. It is absolutely imperative that we get this right and meet the educational needs of students across the state while ensuring a sustainable funding strategy.”
The legislation, based on the work of a 2014 Senate task force, would enhance the funding, structure and functions of the Rhode Island Health and Educational Building Corporation (RIHEBC). The agency’s board would be reformed, and it would be designated as the financing and administering entity for school construction projects. RIHEBC would allocate funding of annual revenues for projects based on need, priority and cost effectiveness.
Spearheaded by House Minority leaders, such a bill would most likely allow cities and towns to not adhere to the HUD standards set forth in RhodeMap.
“Many Rhode Islanders, all of the legislative members of the House Minority and many city and town councils have expressed concern with the impact that RhodeMap RI may have on local comprehensive plans and zoning ordinances. We decided to address those concerns.” said House Minority Leader Brian Newberry.
After newly elected Governor Gina Raimondo issued an executive order calling for ethics and integrity in state government, members of the General Assembly began following suit -- to put a constitutional amendment question before voters establishing the makeup and powers of the Ethics Commission and specifically its authority over members of the General Assembly.
“The people’s trust in its government is the glue that binds a people to its government,” said Senator James Sheehan. “Restoring the Ethics Commission jurisdiction over legislators has become central to establishing that trust.”
Senator Edward O'Neill announced that he was looking to amend the Rhode Island Constitution to give the Ethics Commission greater jurisdiction over the General Assembly, including acts otherwise protected by the “speech in debate” provisions of Article VI, Section 5 of the Constitution.
It would expand a road and bridge revolving fund she created last year with the General Assembly to provide low-interest loans to municipalities for repairs; establish a road and bridge funding formula; launch a so-called green bank for retrofitting buildings and facilities; and create a school building authority to stimulate capital improvements.
Facing a projected $30 million budget shortfall for the coming year, all eyes will be on Governor Gina Raimondo when she unveils her FY16 budget on March 12. Little is known at this time of the new Governor's agenda and budgetary priorities, but the first-time budget proposal, which is historically later the first year of an Administration, means for a shorter period of time for the General Assembly to digest -- and respond.
