House Budget Seeks to Repeal Sales Tax Cut Statute
Center Calls on Lawmakers to Keep Promise to Taxpayers
Providence, RI — Rather than honor existing state law that specifies a reduction in the state’s sales tax rate, and deal with continued criticism for inaction, faint-hearted House leaders are instead seeking to change the law by attempting to sneak its repeal through the budget without public debate.
As a sad irony, instead of using the budget process to reduce the sales tax rate for Ocean State consumers, and comply with state law, as the RI Center for Freedom & Prosperity had previously suggested … the House decided to use the budget process to repeal the law, hoping not to raise any public attention.
“Clearly, the Speaker and House leaders recognize that our Center has been right all along about complying with this state statute,” said the Center’s CEO, Mike Stenhouse. “So, rather than honor the law, they seek to change the law. This disturbing trend of moving the goal-posts will not bring prosperity to Rhode Islanders.”
Now, the Center calls on rank-and-file lawmakers to stand-up for the promise made to taxpayers years ago and to find a way to keep the law on the books, if not demand that the law actually be followed.
The original rationale for the law was to relieve Rhode Islanders of the added burden of a sales tax imposed on a broader range of “internet” purchased goods, by easing the overall tax rate. The Center, in its 6.5% Sales Tax policy brief argued that the legal threshold had effectively been met by the continued expansion of the sales tax on internet purchases by remote sellers.
“If the political class breaks this sales tax promise, how can Rhode Islanders ever trust the promise made about not imposing tolls on our cars,” asked Stenhouse. “This loss of hope for our state’s political system is one reason why so many of our family and friends are fleeing our state.”
Suffering from a spate of retail store closings and a depressed jobs market, as compared with other states, the Center has repeatedly made the case that Rhode Island would get an economic boost from a reduced sales tax rate, in addition to providing residents with more cash in their pockets.
In its Zero.Zero report many years ago, the Center’s extensive research and economic modeling calling for a full repeal of the state sales tax, or reduction to 3.0%, as the most effective way to grow jobs. Related legislation in 2013 gained significant legislative interest, but ultimately did not advance.
Will Explore Development of an Internal Strategic Litigation Capacity
Providence, RI – The RI Center for Freedom & Prosperity is pleased to announce that former R.I. Supreme Court Justice Robert G. Flanders, Jr. has joined its Board of Directors, now totaling 14 members.
An Associate Justice of the Rhode Island Supreme Court from 1996 thru 2004, Flanders is also well known for his 2018 candidacy as the Republican nominee for the United States Senate and for his appointment as “receiver” for the city of Central Falls in 2011. Flanders, who is now a partner with the Providence-based law firm, Whelan, Corrente, & Flanders, also spent many years with the Hinckley Allen law firm.
“As a long-time admirer of the Center’s work, I look forward to exploring with Mike Stenhouse the viability of building a new strategic litigation capacity for our organization,” commented Flanders.
“With our state suffering from a sharp policy turn to the left, and with legislative leaders unchecked and out-of-control in their devotion to special-interests, one strategy is to look into whether not some of the most harmful laws and regulations on our books are even constitutional,” added Stenhouse, the Center’s CEO.
Across the nation, it is a growing trend for state-based think-tanks, like the Center, to develop their own, internal legal capacity to challenge potentially unconstitutional statutes.
A Brown University and Harvard Law School graduate, Flanders has served in dozens of public, civic, professional, and nonprofit leadership capacities – receiving multiple special honors and awards. Like Stenhouse, who had an eight-year minor and major league baseball career, Flanders was also a minor league professional baseball player.
The entire list of the Center’s Board, along with a listing of its staff and adjunct scholars, can be found on its About Us webpage.
Bi-Partisan Coalition Supports Right-to-Earn-a-Living for Nonviolent Criminals and Protecting Civil/Property Rights
Providence, RI – The RI Center for Freedom & Prosperity urges legislative leaders to reconsider two bills that would provide Justice Reinvestment Initiative (JRI) and occupational licensing reforms, two areas consistently supported by the Center in recent years.
Each bill has similarly been implemented in over dozens of other states in recent years. And each bill has earned broad bi-partisan support among grassroots activists and other lawmakers in Rhode Island following their respective committee hearings. It is only General Assembly leadership that is holding them back.
H5863, which also provides occupational licensing reforms, would provide increased opportunities for people with minor criminal records to to earn a living for themselves and their families by removing unfair barriers and reducing burdens to obtain occupational licenses and certifications that are required in many industries.
Rhode Island’s regulatory laws often effectively impose a ban against individuals with a record from obtaining many licenses to work. Even vague crimes of “moral turpitude” are subject to such unjust prohibitions.
H5863 would remove many such unfair barriers and clarifies statues that make it overly difficult for prior criminal offenders to work in certain occupations. These changes would allow more individuals to re-enter society with the opportunity to live self-sufficient lives; in turn, improving the health of the state’s economy and reducing the recidivism rates and its associated costs.
“The more evolved view of America’s criminal justice system, by advocates on both the left and the right, is that after paying their debt to society, certain nonviolent offenders should be rehabilitated and trained to become a productive working member of society,” commented the Center’s CEO, Mike Stenhouse. “But yet in Rhode Island, burdensome occupational licensing laws often make it impossible for these individuals to find gainful employment.”
The conservative Center joins with DARE, the RI-ACLU, and other liberal advocacy groups in supporting H5863.
The Center also supports H5721, a JRI bill that it crafted, which would completely re-write the Rhode Island’s “civil asset forfeiture” statutes, by which state and local government agencies may seize the property of suspected criminals or regulatory violators, many of whom are never charged or convicted. This legislation would help protect civil rights and the rights of property owners against overly-zealous government seizures, a phenomenon that disproportionately impacts low-income and minority communities.
The Center’s CEO, Mike Stenhouse, testified at the March House Judiciary Committee hearing on H5721, which is also supported by the RI-ACLU, Occupy Providence, the Rhode Island Public Defenders Office, and the D.C. based Institute for Justice. There was no testimony opposing the legislation, yet legislative leaders are reluctant to move the legislation forward because of opposition from the law enforcement community, which benefits, sometimes unjustly, from the proceeds of seized assets.
A compelling video, research data, summary of the legislation, and copies of submitted testimony can be found on the Center’s home page for Asset Forfeiture reform.
The Center issued a major report on the need for occupational licencing reforms in 2018, Right to Earn (a living). The Center also joined with Democrats to help push through a package of JRI reform legislation in 2017; as part of the Center’s Family Prosperity Initiative.
Municipalities Across RI are Burdened with $590 million in Excess Costs… Not counting liabilities for paying people not to work!
Providence, RI— The #1 reason why local property taxes are up to 25% higher than they need be, is because of the $590 million in “excessive” costs, shared by municipalities across Rhode Island, for collectively-bargained government services, negotiated by government unions. This according to the landmark report, Public Union Excesses, released by the RI Center for Freedom & Prosperity in early May.
Additionally, these same municipalities are also burdened with a liability not often discussed – payments due to government workers who are allowed to “cash in” on their overly-generous and unused allowed “absences” – sick days, personal days, and other compensated leave time – as specified in their unions’ collective bargaining agreements … another $163 million cost heaped upon local taxpayers.
To underscore these local costs, the Center today published a 4-page summary of its Public Union Excesses report, which focuses on the municipal costs of collective-bargaining with government unions. All related material can be found at www.RIFreedom.org/Unions.
“This summary report is a must-have reference for all local school committee and city and town council members if they are looking for ways to control the exploding costs of collectively-bargained contracts with their municipal unions,” advised Mike Stenhouse, the Center’s CEO. “If you would like print copies, just let us know.”
In Lincoln for example, one table on the summary lists the estimated $13.1 million in excessive costs, while another table lists the $4.3 million owed for paying workers not to work. In East Greenwich, the costs are $9.6 million and $.9 million respectively.
A bar-chart in the summary shows that most public sector employees often enjoy 50% more sick days than their private sector counterparts. Compounding the effect, government workers are usually allowed to carry-forward far more of their accumulated sick days – which can be cashed in each year or upon retirement.
One of the most objectionable schemes of government union collective bargaining process, which excessively drives up the cost of government for taxpayers, in ways or at levels that do not exist in the private sector, is being paid for not working. This issue, along with many others defined in the Center’s report, Public Union Excesses, contribute to an $888 million per year in excessive collectively-bargained costs, responsible for driving up local property taxes by up to 25%.
After looking at examples in just a few cities and towns, municipal taxpayers across Rhode Island may collectively be paying millions of dollars per year for unionized government employees to spend their public time on work for their unions … and not to work on the public services they were hired to perform.
Adding insult to injury, the many collectively bargained provisions that specifically allow for these so-called ‘ghost workers’ may actually be in violation of state law. More on that later on.
As detailed in the Center’s landmark report, Public Union Excesses, there are multiple schemes in which government unions benefit from overly generous provisions in collective bargaining agreements, provisions that hardly, if ever, are seen in the private sector.
One such provision is called “union release time.” Under this scheme, unions across Rhode Island use taxpayers as contractual piggy banks to fund union activities. How many Rhode Islanders know that they are paying for ‘ghost workers’ who are paid by the public, but who do not actually perform a public service for some or all of their official time? Instead, a common provision — found in many government union collective bargaining agreements — mandates that taxpayers pay the salary and benefits for for certain public employees, who spend time working on their unions’ business.
Union ‘ghost workers’ impose a triple-rip-off on taxpayers.
First, there is the direct cost of paying public workers for not working on public issues. Second, compounding the cost, taxpayers are further ripped-off because, often, an extra worker must be hired (sometimes at overtime rates) to fill in for the ghost worker’s shift. Third, union workers who are paid with taxpayer dollars to work on union issues … are working directly against the very same taxpayers who pay their salaries. As the Center’s Public Union Excesses report breaks down, collectively bargained government union excesses directly raise property taxes by as much as 25% for every Rhode Island family and business.
This union release time scheme is indeed a rip-off for taxpayers, as many of the designated union ‘ghost workers’ are awarded six-figure compensation packages, paid for by the public … but without the public’s receiving a commensurate return.
In its report, Public Union Excess, the Center estimates that taxpayers in Portsmouth, Rhode Island, are wasting over $8,176 per year on ghost workers, 100% of which is considered “excessive” in the report. This figure does not include the ‘replacement’ costs to hire additional staff.
However, the ‘ghost worker’ issue is much more costly in other cities and towns. In the Rhode Island’s capital city of Providence, for example, Maribeth Calabro, a special educator, whose $83,848 salary and compensation package worth well over $100,000 per year is paid for by local taxpayers, is also president of the Providence Teachers union. Per the city’s collective bargaining agreement with her Providence Teachers Union, Calabro is allowed to spend 40% of her teaching time (with full pay and service credit) to conduct union activities, costing taxpayers over $33,000 per year. Add in the cost of substitute teachers, estimated at over $16,000 per year, and Providence taxpayers are being ripped-off to the tune of almost $50,000 per year … just for this one teacher.
In the 2016 East Providence teachers’ contract, high school teacher and local union president Nicholas Shattuck is allowed to spend 40% of his teaching time, as part of his estimated $70,000 salary, on union business. “The President of the Association shall be relieved of all his/her non-teaching duties to take care of Association business. In addition, the President shall be provided the equivalent of two (2) full days per week at no loss in salary or benefits and the Association agrees to pay one-half (1/2) of the cost. Meaning that the School Department pays for one day and the Association pays for one day.” The estimated net ‘ghost worker’ cost of $14,000 per year, plus substitute costs at around $15,000 per year, means that East Providence taxpayers are bearing costs of almost $30,000 per year for this one paid public employees to conduct union business that constantly works against the better interests of those same taxpayers.
In Tiverton, there is a minimum trifecta of ‘ghost worker’ union release time provisions. Elementary school teacher and local union president Amy Mullen is allowed one teaching period per day (20%) for “union business.” At a salary of over $75,000 per year, the total rip-off to taxpayers, including the cost of substitute teachers, is likely over $30,000 per year. Provisions in Tiverton’s firefighter and police union contracts are less costly, having mainly to do with periodic conventions and meetings, but still may add over $10,000 per year in ‘ghost worker’ costs to taxpayers.
The above examples do not take into account common provisions that relieve union officers of “non-teaching duties” (for example). We did not attempt to value these activities, but exempting union officers likely has a cost of thousands of dollars, either in lost benefit to taxpayers and constituents or in the increased burden on other employees.
Unauthorized release time. But the rip-off to taxpayers does not end here. While it’s one thing for taxpayers to bear the burden for “authorized” release time as collectively-bargained for ghost-workers, it’s quite another thing for these same ghost-workers to cause “unauthorized” release time for co-workers. For instance, our Center has anecdotally been told by numerous former educators that it is common practice for local union NEA officials, who themselves were on release time to conduct ‘union business’ at the expense of the taxpayers, to simply walk into classrooms and pull other teachers (and fellow union members) out of their classes for meeting on various topics … often leaving entire classrooms unattended. In one instance, the so-called ‘union business’ that the authorized and unauthorized ghost-worker teachers were discussing … was to scheme how to get rid of a school administrator that the union did not like.
On the legal side, state law appears to prohibit these collectively bargained schemes. Under the state Labor Relations Act, Rhode Island General Law 28-7-13 states that “it shall be an unfair labor practice for an employer to” give preference to “any employee organization”:
By compensating any employee or individual for services performed in behalf of any employee organization or association, agency or plan, or by donating free services, equipment, materials, office or meeting space, or any thing else of value for the use of any employee organization or association, agency, or plan; provided that an employer shall not be prohibited from permitting employees to confer with him or her during working hours without loss of time or pay.
Rhode Islanders expect their hard-earned money to be spent to educate our children, protect our homes and businesses, or to provide other vital services. We do not expect that our money will be spent to advance the work of overly politicized unions.
According to our Center’s report and this follow-up post, not only are taxpayers grossly overpaying for government services, but they’re also regularly paying out their hard-earned money to government workers who are not even working! Whether it’s paying for release time where union members are paid by taxpayer for doing union work, overly generous vacation and personal days, paying for public employees on sabbatical, paying for suspended workers, paying for years and years for people out of work on dubious injury claims … or paying unsustainable levels of post-employment benefits … taxpayers are being ripped off.
If public workers want to assist their unions, the should do so on their own time or be paid out of the dues of union members … not on public time and certainly not on the public nickel. If we can bring these and other public union excesses into line with the private sector, your property taxes could be reduced by 25%.
Ghost Workers – Government Workers who are Union Officials Paid for Not Working – Drive-up Property Taxes
And it may even be illegal …
Providence, RI— One of the most objectionable schemes of collective bargaining contracts with government unions are provisions not found in the private sector that pay workers for not working, that increase the cost of government, and that unfairly drive up property taxes. Even more egregiously, in this case, public employees are being paid by taxpayers to work for someone else.
According to a post today as follow-up to to the RI Center for Freedom & Prosperity’s landmark Public Union Excesses report on the excessive costs of collectively bargained government services, ‘union release time’ provisions that allow for “ghost workers” – public employees paid by the public NOT to conduct work for the public; but rather paid by the public to conduct union work – are a major taxpayer rip-off.
In the post, Paid For Not Working; a Taxpayer RipOff; Ghost Workers and the Triple-Whammy of Union Release Time, multiple examples of contract language, as well identification and cost-calculation of actual ‘ghost workers’are provided.
“Worse, this unfair and unjustifiable practice appears to be in direct conflict with state law,” exclaimed Mike Stenhouse, CEO for the Center.
For example, in the city of Providence’s collective bargaining agreement with the Providence Teachers Union, publicly paid special educator, Maribeth Calabro, also the local union president, is contractually allowed to spend 40% of her school schedule (with an estimated $100,000+ compensation package) on union business. Add in the cost of substitute teachers and the total annual cost to taxpayers likely exceeds $60,000 per year.
The full ghost worker post provides other individual examples and also discusses:
- The ‘triple-whammy’ on taxpayers, once substitute worker costs are added-in
- State law on what constitutes and “unfair labor practice”
- Further abuses of unauthorized release time
“If public workers want to assist their unions, they should do so on their own time and on the union’s nickel,” suggested Stenhouse, “and certainly not at the taxpayers’ expense.”
According the Center’s May 2019 Public Union Excesses report, Rhode Island taxpayers dish-out $888 million per year (or $3500 for a family of four) for excessive compensation provisions in collective bargaining agreements with government employee unions, which may drive up local property taxes by as much as 25%.
In an unusual circumstance 11 of the 12 datapoints used for the RI Center for Freedom & Prosperity’s Jobs & Opportunity Index (JOI) were updated for April, and the end result was not a happy one. RI overtook Louisiana in 2017 to claim the 47th rank in the country after five years at 48. For the month of April, RI has lost that gain, despite improved numbers by five measures.
Employment was not one of those five, down another 269 people from the first-reported number for March, and the labor force dropped yet another 1,009. Jobs based within the state represented a bright spot, with an increase of 5,400. Alternate measures of unemployment gave RI two more positive developments, with long-term unemployment down 600 and marginal attachment to the labor force down 200. However, this seems likely to have been caused by worker exits. This more-negative interpretation is justified by the fact that people who are involuntarily working part time increased by 1,100.
On the welfare side, the Ocean State had 5,209 fewer people on Medicaid, which is positive. However, enrollment in TANF (welfare) was up 407, and the state still cannot manage to update its SNAP (food stamps) data, which haven’t moved since February 2017. The taxation picture is mixed. The federal government collected almost $200 million less from Rhode Islanders, but state and local taxation increased by $41 million.
The first chart shows RI remaining last in New England on JOI, at 48th. New Hampshire leads the region, in 3rd place, nationally. Vermont fell two spots, to 14th place, while Maine held steady in 18th. Massachusetts also remained in place, at 36th, but Connecticut dropped two, to 44th.
The second chart shows the gaps between RI and New England and the United States on JOI, and the third chart shows the gaps in the official unemployment rate. RI’s gap improved slightly in all cases.
Results for the three underlying JOI factors were:
- Job Outlook Factor (optimism that adequate work is available): RI fell four spots, to 28th.
- Freedom Factor (the level of work against reliance on welfare programs): RI fell six spots, to 48th.
- Prosperity Factor (the financial motivation of income versus taxes): RI remained 47th.
Click here for the corresponding employment situation post on the Ocean State Current.
To: RI Senate Committee on Finance
From: Rhode Island Center for Freedom & Prosperity, Mike Stenhouse
Subject: Written Testimony re. Opioid Stewardship Act (S0798)
Chairperson Conley, Jr. and Committee Members: As CEO for the RI Center for Freedom & Prosperity, a non- partisan research and advocacy organization, I would like to provide some background re. S0798, which is before your committee today. As a 501-C-3 organization, our Center is not advising you whether or not to support this legislation. However, we are allowed to discuss our research and perspectives with regard to pros and/or cons of the underlying issue.
For our written testimony, I am submitting, in its entirety, an opinion piece written by our Center’s Chairman, Dr. Stephen Skoly, who has ample medical experience in dealing with pain-killing drugs for his patients.
Thank you. Thank you. If I can answer any questions, please contact me.
Opioid tax bill would harm families and businesses across Rhode Island
By Dr. Stephen Skoly, a maxillofacial surgeon in Cranston, and Chairman of The Rhode Island Center for Freedom & Prosperity.
The opioid epidemic is a widespread, complicated problem, and only a collective effort will begin to solve it. The healthcare community and lawmakers need to work in tandem to find policies that effectively lessen opioid abuse while still keeping our state’s economic health as well the health and safety of the patient in mind. It’s unfortunate, however, that Senate Bill S0798, the Opioid Stewardship Act, fails on both accounts.
This bill seeks to levy $7.5 million in annual taxes on the healthcare system for the distribution of prescription opioid medications to healthcare facilities throughout our state, including pharmacies, hospitals, and urgent care clinics. The motivation behind the legislation is clear; legislators seeking to disincentivize use by taxing the products that they believe have contributed to growing rates of addiction and overdose. However well-intentioned, this is a costly approach that misses the mark.
Prescription opioids serve a clinical and legitimate medical purpose. Postoperative analgesia, cancer, trauma, and chronic disease are just a few examples of the many medical conditions and procedures that require opioid- containing medications.
Just like all taxes imposed by lawmakers, there will be reactions as these added costs will somehow be passed onto patients in the healthcare system. Employers that provide health coverage could see insurance premiums rise, while families could experience higher prescription costs; all for an epidemic being fueled by illegal behavior that S0798 would not address.
Those suffering and without adequate insurance would be most impacted, and would be incentivized to seek more dangerous drugs on the underground market.
As a medical professional, I find it morally reprehensible that our lawmakers might inflict economic pain on patients who are suffering acute physical pain; especially at a time when Rhode Island has one of the worst economies in the entire country.
Examples of the real and unintended consequences of taxes on prescription opioids are showcased in New York. In fact, Rhode Island’s Opioid Stewardship Act is nearly identical to a bill recently passed in the Empire State. This New York bill was loudly opposed by patients, healthcare providers, the business community, and other lawmakers, who expressed ire that the bill’s hefty and punitive tax would lead to increased costs or restricted access to care.
I find it confounding that Rhode Island lawmakers would draw inspiration from another state’s misguided legislation. Reacting to a crisis in haste, just to claim you did something, is itself misguided. This legislation represents another example of “not letting a crisis go to waste.”
There is no debate that a robust response to the opioid epidemic is necessary. But when developing policy, Rhode Island legislators need to acknowledge the importance of protecting the affordability and accessibility of necessary medications for our state’s patients and their families. The Opioid Stewardship Act fails to make these considerations. Rhode Island legislators need to understand that opioid prescribing protocol are evolving based on evidence based medicine and recommendation from The American College of Surgeons. Recommend best practices for prescribing opioids in Rhode Island includes accessing the Rhode Island Drug Prescription Monitoring Program (PDMP). Finally, it is important to recognize that addiction is neither a moral failing nor a character flaw. Rather, it is a chronic disease much like heart disease. Even our legislators should be morally offended by supporting a misguided tax on a chronic disease to balance their budget.
Rather than relying on added taxes, our lawmakers should promote more sensible solutions such as supporting efforts by our law enforcement agencies to purge our state of illegal drugs and by encouraging continued education of patients about the potential risks surrounding prescription opioid medications.
This tax would do nothing to address the core problems of inappropriate use and illegal distribution of opioids.
Providence, RI— Statement from Mike Stenhouse, CEO for the RI Center for Freedom & Prosperity on the “perpetual (evergreen) contracts” legislation that was signed into law today by the governor:
“The number one driver of the Ocean State’s declining population and jobs numbers – are high property taxes. Our Public Union Excesses report clearly connects high property taxes with the excessively high costs of collectively bargained government services. This new ever-green contracts law will keep property taxes ever-high.
We continue to give an unfair advantage to the wealthiest and most connected insiders of the population, and now these special-interest groups come before the Rhode Island people and saying we don’t have enough … and we want more? This is outrageous!
It is clear today, that after 10 years of the slowest economic recovery among all states, Rhode Island’s political leaders are not fulfilling their promise to help the average family. Instead, by heaping more and more favors upon those who help get them elected, politicians have lost the trust of the people.
Beyond the financial costs, there is a more corrosive impact from this kind of political cronyism. People are fed up with betrayals from lawmakers who have forgotten them, who cater to special interest groups, and who make it harder to live and take care of their families and business – and to continue to reside and work in Rhode Island.
Sadly, Rhode Islanders will now have even less hope for our state, with even less trust in their government! In this case, perpetual contracts will make it much more likely that the state of Rhode Island will remain in perpetual decline.”
Public Union Excesses, the largest research report ever produced by the Center, details how Ocean State taxpayers are dishing out an extra $888 million per year as compared with their private sector counterparts; findings that are consistent with previous national studies, including a report by the Center in 2012. Rhode Island property taxes would be 25% lower were it not for the ‘excessive’ costs imposed on families and businesses for collectively bargained government services, in providing up to a 27% total compensation premium for government workers.
Unions Respond with Mindless Attacks and Unsubstantiated Claims
Teachers Union Response Addresses the Wrong Points
Providence, RI— The Rhode Island Center for Freedom & Prosperity refutes the unsubstantiated and off-target claims made last week by two government union officials in publicly responding to the Center’s Public Union Excesses report. The eye-popping report details how Ocean State taxpayers are dishing out an extra $888 million per year in providing 26% total compensation premium for government workers as compared with their private sector counterparts, and that drive local property taxes 25% higher than they need be.
Typical of union tactics seeking to avoid discussion of the issue at hand, labor officials try to change the topic by responding with a barrage of subterfuge and attacks on the messenger.
Robert Walsh, executive director of the National Education Association of Rhode Island made a series of apparently incorrect and misguided public comments when he claimed that Ocean State public school teachers make about $14,000 less in salary than their Massachusetts counterparts.
Mr. Walsh’s statement is off-target for a number of reasons:
- The Center’s report focused on “total compensation”, while Walsh focused on just the “salary” component
- The Center’s report compared all public sector workers to private sectorworkers in Rhode Island, while Walsh compared RI public teachers to MA public teachers
- Most importantly, Walsh’s figures, in his attempt to downplay compensation for Rhode Island workers, do not match with public reports.
In his statement last week to the Providence Journal, Walsh claimed that RI teachers averaged $66,758 in salaries, compared to $80,357 in Massachusetts – a gap of $14,000.
However the salary figure reported in the official Employees’ Retirement System of Rhode Island (ERSRI) report show an average 2018 RI teacher salary of $77,581 – about $11,000 more than Walsh claimed. Further, the similar report in MA shows their average teacher salary (including Boston) was just $74,156 – about $6,000 lessthan he claimed.
Walsh proceeded to dig himself into a deeper hole when he claimed on Twitter that the Rhode Island ERSRI figures were inflated because higher paid superintendents and other non-teaching positions were included: yet this reasoning ignores that the Massachusetts figures likely also include such positions, which only would minimally change the calculations by 1-2%.
Per these two reports, Rhode Island teachers make about $3,000 more than do their Bay State counterparts, not the $14,000 less as claimed by Walsh.
Mr. Walsh’s initial statement about any gap could be off by as much as a whopping $17,000. When asked on Twitter to provide documentation for his figures, Mr. Walsh did not respond.
Additionally, the president of AFSCME, the largest government worker union in the state, J. Michael Downey, joined with Walsh in questioning the Center’s donor base and why it is not publicly disclosed.
“Rather than professionally responding to the findings in our report, once again progressive-union-left leaders seek to shut down open and honest debate by mindlessly attacking the messenger,” responded Mike Stenhouse, the Center’s CEO. “Both Walsh and Downey know that the US Supreme Court has ruled that their is a major difference between government transparency and privacy for nonprofit organizations; and that donors to groups like our Center should be protected from recrimination by the government or by over-zealous activists.”
The 48-page report was researched and co-authored by adjunct scholar to the Center, Dennis P. Sheehan, and by the Center’s research director, Justin Katz. The reports’ findings are consistent with previous national studies, including a report by the Center in 2012.
The full report also includes tables with town-by-town estimates of the excessive total compensation costs of government workers at the municipal level, in school districts, and in independent fire districts.
CORRECTION: Stuart Peterson, actually the former School District Finance Committee Chair, in commenting on East Greenwich’s $9.5 million excess, was incorrectly listed as former Town Finance Director in the Center’s original media release last week: “The report’s findings are certainly in line with what we have seen in East Greenwich for the last 30 years. Our residents have seen (property) tax increases three times that of inflation, and up to four times that of median household income wage growth.”