Disintegration of RI Families? Center Invites Civic, Religious, & Political leaders to Forum to Discuss New Report

FOR IMMEDIATE RELEASE: December 21, 2016

Turning the Tide Toward Prosperity in the Ocean State:
Rhode Island Center for Freedom and Prosperity and American Conservative Union Foundation Unveil Report on Underlying Reasons for Rhode Island’s Rank (48th) on Family Prosperity Index

Government Crowd-Out of Business & Civil Society, Family Disintegration Contribute to Migration of Residents to Other States, Create Drag on Family Prosperity

Providence, RI — The Rhode Island Center for Freedom and Prosperity, along with its national partner, The American Conservative Union Foundation, today unveiled an in-depth analysis of factors contributing to the Ocean State’s dismal score on the Family Prosperity Index (FPI). The Rhode Island Family Prosperity report – the second “deep dive” state study following the national introduction of the FPI at CPAC earlier this year – highlights Rhode Island’s poor scores on a number of factors, including family self-sufficiency, family structure, fertility, and illicit drug use, compounded by its significant out-migration rate, as the determinant factors in the state’s overall FPI rank of 48th in the nation.

In conjunction with the release of the report, the organizations announced their plans to co-host a forum featuring national and local experts in early 2017 to explore the problem areas outlined in the FPI report as well as possible solutions. The forum will take place on the afternoon of Tuesday, January 17, at the Hassenfeld Institute for Public Leadership at Bryant University.

The Family Prosperity Index, created by ACU Foundation economists Wendy Warcholik, Ph.D., and J. Scott Moody, M.A., is an entirely new tool that does what no resource has done before – demonstrate quantitatively the undeniable link between economic and social policy in determining family prosperity. In so doing, the Index provides a road map for finding real solutions to the cultural and financial problems that keep families – and the nation – from flourishing. A more holistic measure than the one-dimensional unemployment rate or GDP, which only considers economic data, the FPI makes it possible to measure U.S. progress every year and rate states against each other according to how well they are providing an environment for families to flourish.

The FPI provides the credible data that state policymakers, civic and religious leaders, think tanks and activists need in order to develop and advocate effectively for policies that improve the prosperity of families and the communities where they live.

“Everyone concerned about the well-being of our state’s families should be alarmed by our unacceptable 48th-place ranking,” said Mike Stenhouse, Chief Executive Officer of the Rhode Island Center for Freedom & Prosperity. “It is time to challenge the status quo insider mindset and to search for a more holistic path to help real Rhode Islanders improve their quality of life. Our January forum will provide an ideal opportunity for community, religious, and political leaders to convene to begin this process.”

The FPI assesses the economic and social status of six discrete index categories – economics, demographics, family structure, family self-sufficiency, family culture and family health. The categories are supported by 57 data-sets from publicly accessible data and backed up by current documentable research. In the inaugural 2016 edition of the FPI, in which Utah was ranked first and New Mexico last overall, Rhode Island ranked in the bottom ten states on economics, demographics, family structure, and family self-sufficiency; dead last on family health; and in the middle of the pack on family culture.

According to the report released today, “With such a low overall FPI score, Rhode Island clearly has a lot of work to do to improve the economic and social conditions necessary for enhanced family well-being. On the economic side, we must expand the private sector, boost entrepreneurship, and reduce net out-migration. On the social side, Rhode Island would benefit from a boost in fertility, stronger intact families, and a significant reduction in illicit drug use and incarceration.”

The report provides direction for a path forward for the Ocean State. “Rhode Island’s politicians would do well to focus on minimizing government encroachment on its citizens by reducing its onerous tax burden, which, in turn, would spark new entrepreneurship and jobs, and on taking up pro-family measures that encourage healthy familial activity. Rhode Island’s community and religious leaders would also do well to inspire their constituents to aspire to a higher level of self-sufficiency as part of stronger marriages or otherwise healthier lifestyles.

“Religious institutions and other elements of civil society can help mitigate Demographic Winter in the Ocean State by addressing issues associated with family fertility, out-of-wedlock births, incarceration and drug abuse, and overall religious participation….

“If we want to turn the tide of friends and family members moving out of Rhode Island…we must embark on a new path toward renewed well-being. The Family Prosperity Index shows us the way.”

The FPI, which will be published annually and ranks each of the 50 states according to their respective scores, is the basis for a multi-year effort of the ACU Foundation’s Family Prosperity Initiative. The Initiative includes a deeper analysis of each state and its performance on the Index, providing potentially county-by-county guidance for possible policy changes. The state reports – of which Rhode Island’s is the second – will occur on a rolling basis.

Said American Conservative Union Chairman Matt Schlapp, “I hope Rhode Island’s leaders will take to heart the recommendations in the report released today to help turn the tide toward greater prosperity for Ocean State families.”

Jobs & Opportunity Index (JOI), November 2016: A Quiet Entry to the Holiday Season

The final Jobs & Opportunity Index (JOI) report from the RI Center for Freedom & Prosperity to be released in 2016 brings little change, leaving until next year information about how factors such as the problematic Unified Health Infrastructure Project (UHIP) will affect Rhode Island’s position nationally.

Of the 13 datapoints used for the index, only five were newly updated for the November report. Employment was down 365 from the previously recorded number, while labor force fell a substantial 1,758, although RI-based jobs increased by 300. (Note that these are calculated with pre-revision data for the prior month.) Medicaid enrollment decreased by 1,369 from August to September and SNAP by 667. The enrollment numbers for Rhode Island’s welfare programs will be a key variable to watch as 2016 data is completed early in the next year. Assuming UHIP doesn’t undermine data reporting to the federal government, the question will be whether increased information finds more current enrollees ineligible than connecting all of the program brings more people to benefits.

The first chart shows Rhode Island locked in the last position in New England on JOI. Although New England experienced a mix of improved and declining JOI scores, no states changed position in the national ranking. New Hampshire remained 1st in the nation, with Maine a distant second, at 20th. Vermont was right behind, at 21st. Connecticut narrowly held its 34th position, with Massachusetts next, at 35th.

ne-joirace-1116

The second chart shows the gap between Rhode Island and New England as well as the United States, with the Ocean State’s lag worsening slightly in both cases. Rhode Island kept pace with New England for the gap on the unemployment rate but lost ground against the national average (third chart).

rineus-joi-2005-1116 rineus-unemployment-2005-1116

Results for the three underlying JOI factors were:

  • Job Outlook Factor (measuring optimism that adequate work is available): RI remained at 39th.
  • Freedom Factor (measuring the level of work against reliance on welfare programs): RI remained at 39th.
  • Prosperity Factor (measuring the financial motivation of income versus taxes): RI remained at 47th.

National Study Blasts Politicization of RI Pension Portfolio Management; Center renews Call for Pension Fund Protection Act

FOR IMMEDIATE RELEASE: December 15, 2016

Special Interest Politics Should Never be Investment Criteria

Providence, RI — A national report released yesterday by the American Legislative Exchange Council (ALEC) – Keeping The Promise: Getting Politics Out of Pensions – dedicated an entire chapter (p.27) to highlighting a “politically-driven decision to divest from a high performing hedge-fund” by then Treasurer Gina Raimondo. With this incident and others in mind, the Rhode Island Center for Freedom & Prosperity renews its call for legislative action that would end the cronyism and overt politics that has caused instability to the retirement-security of public employees and that has exposed taxpayers to further risk. The mismanagement and politicization of Rhode Island’s public employee pension fund have resulted in sub-standard portfolio returns.

“Enough of the political correctness and insider cronyism. We call on lawmakers to act now to ensure that sound fiscal guidelines are adhered to,” reiterated Mike Stenhouse, CEO for the Center. “The dismal performance of the state pension fund, under General Treasurers Raimondo and Magaziner, could have been minimized if sound investment practices were followed. Some kind of pension-fund protection act is clearly in order.”


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The RI Center for Freedom & Prosperity is the Ocean State’s leading voice against the wreckage caused by our state’s progressive agenda.

As the state’s leading research organization, advancing family and business friendly values… the mission of our Center is to make Rhode Island a better place to call home – to raise a family and to build a career.

While progressives value government-centric, taxpayer-funded dependency… our Center believes in the value of hard work and the free-enterprise system.

We understand that in order for more Rhode Island families to have a better quality of life, that more and better businesses are needed to create more and better jobs.

Your donation will help us fight the union-progressive movement and, instead, advocate for pro-family, pro-business policies and values.

Please make a generous, tax-deductible gift to support our Center today!

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Initial research shows that a number of other states have implemented, or are currently considering, provisions that require specific fiduciary guidelines to making pension fund investment decisions. A Pew Charitable Trusts report to the Committee on Alabama Public Pensions indicates that the National Association of State Retirement Administrators (NASRA) has suggested that pension fund trustees should adhere to “a robust fiduciary standard” in the execution of their duties. NASRA supports the action of setting strong fiduciary standards into law so that the paramount goal of investment strategies should be the financial security of pension assets.

In recent years, conversely, Rhode Island policy has put retirees and taxpayers at increased exposure, because political correctness appears to have been the primary motivation for making certain investment decisions:

  • Treasurer Raimondo announced a divestment strategy in 2013 from high performing “gun” related investments … for political reasons. (In a similar move the City of Providence divested from eight fossil fuel companies.)
  • As highlighted in the ALEC report, Treasurer Raimondo divested in 2014 from the states highest performing hedge fund, Dan Loeb’s Third Point LLC … caving to political pressure from teachers unions
  • Instead, Treasurer Raimondo invested in other high-fee hedge funds … some of which were associated with her former investment company
  • Treasurer Magaziner announced in early 2016 that state’s proxy votes would be used to influence investment vendors to diversify their boards … to meet an arbitrary politically-correct standard
  • Treasurer Magaziner announced last month a “back to basics” investment strategy to divest of most hedge fund investments … bowing to political pressure from third-party critics

“Each of these fiscally-irresponsible decisions has led to deteriorating performance of the pension fund. There’s little reason to trust that Treasurer Magaziner’s new back to basics strategy will not continue be overly-politicized,” added Mike Riley, Chairman of the Center, and an investment and pension expert. “It is obvious now that the General Assembly must act to ensure proper fiscal due-diligence is conducted, devoid of political correctness considerations.”

In order to protect the security and stability of state retirement funds, Riley suggests that legislation should include the following goals:

  1. Ensure that all investment decisions are made solely in the best interest of the beneficiaries
  2. Limit considerations for investment vehicles to measurable economic or fiscal factors only
  3. Ban other non-fiscal considerations, except in the most extreme instances (e.g., Iran-based companies)
  4. Ensure that investment fees and costs are reasonable in relation to the assets of the retirement system

The Center encourages lawmakers to honor the promise made to public employees and to support related pension-protection legislation in 2017.


The RI Center for Freedom & Prosperity is the Ocean State’s leading voice against the wreckage caused by our state’s progressive agenda.

As the state’s leading research organization, advancing family and business friendly values… the mission of our Center is to make Rhode Island a better place to call home – to raise a family and to build a career.

While progressives value government-centric, taxpayer-funded dependency… our Center believes in the value of hard work and the free-enterprise system.

We understand that in order for more Rhode Island families to have a better quality of life, that more and better businesses are needed to create more and better jobs.

Your donation will help us fight the union-progressive movement and, instead, advocate for pro-family, pro-business policies and values.

Please make a generous, tax-deductible gift to support our Center today!