Friday, December 11, 2009

Can we afford the best?

In a time of economic crisis, when unemployment is at 12.9%, the State of Rhode island threatened to lay off a 1,000 of employees back in September, and is still facing a $200 million deficit the State has decided to hire a new Executive Director for the RI Economic Development Corporation for 1.5 times the salary of the former Executive Director.

According to the Providence Business News story
The board voted to give Morfessis a three-year contract that will pay her $250,000 a year plus benefits. The state also will cover her relocation costs and provide her with an automobile.

And according to Providence Journal, when asked about the high salary Governor Carcieri is quoted as saying.

“You want to do a national search? You want to recruit the best candidate you can find? Then you’re going to have to pay for that,”

The Journal article points out that Rhode Island has recently hired several key senior level administrative personnel. These include the President of URI, Director of Education, and now the Director of EDC at a cost of well over $1 million in salary and benefits annually.

The trend seems to be to look beyond the State for talent to bring about "needed" changes in the way we operate the State government. The big question is

Will these highly paid experts actually be able to produce value for the tax payers of Rhode Island, or are we just hiring carpetbaggers to replace the state's more traditional bag men?


In 04-30-2003 the Governor's office issued the following press release

CARCIERI ADMINISTRATION MAKES CASE FOR REINING IN COST OF STATE GOVERNMENT Administration Official Testifies that Escalating State Benefit Package Costs "Out of Whack" with Private Sector & Neighboring States

Rhode Island government is NOT a private sector company, government is PUBLIC SERVICE not PRIVATE SERVICE. Government is supposed to do the "People's or the Stakeholder's business", not the private Stockholders.

Nor is Rhode Island like Massachusetts or Connecticut. Rhode Island is more like the city of Detroit, than it is like the state of Michigan to which we have been so often compared lately. If the State Benefit package is out of whack, how does paying higher private sector salaries and benefits to a select few change this?

Are we missing something here?

Cut costs by reducing the number of $5.00/hr employee who could produce (35 hr/wk x 3 workers) 105 person hours and replacing them with one $15.00/hr person who can only produce 35 hours of work seems counter-intuitive. Will those 35 hours create greater value for the tax payer's of Rhode Island? I wonder when we read that "R.I. to close jobless benefits call center some days to catch up on claims>"

Three workers pay three tax bills, live in three homes that are taxed by their communities, support three family/households in those communities.

The leaders of this state seem to think that if you drive a 2010 BMW rather than a 2000 FORD 150 somehow or other you can have a BMW life style.

I seriously pray (and that is the right word) that these new hired guns can produce the value their inflated (in RI terms) salary and benefit packages are costing the tax payers of Rhode Island.

Can we afford the best, or is what we really need the most competent?

Thursday, December 3, 2009

Economic Development and Binding Arbitration

A recent editorial in the Providence Journal Editorial: And they’ll be back warns that a major piece of legislation sponsored by the teachers' union (NEA and AFL) requiring binding arbitration between the unions and local school committees may reappear again when the RI General Assembly reconvenes next year.

The following comment on the Projo Online edition of the editorial from Ethnographer outlines the issues in the broader context of Rhode Island's economic crisis. Ethnographer's comments are quoted below with permission.


Quality education should be the issue, not Union power when the Assemble reconvenes.

Economic development does not come from higher pay and benefits. It comes from higher value production.

When the teachers unions can demonstrate that it can produce a higher value product for the community that buys their services, then they might have a basis for earning the higher wages, and benefits.

But binding arbitration has nothing to do with quality product, only raw power.

Unions serve a useful purpose when a worker group is at a disadvantage, such as the recent article about the "adjunct faculty" at URI and RIC, and the employer is in a monopoly position. But when the union is the monopoly, as they would be in a binding arbitration situation, they no longer serve a useful purpose for the consumers (the communities) which purchase their product (teachers) nor the resource (the teachers) they monopolize through their representation.

The growth of the Charter school movement demonstrates how the public is prepared to spend its education dollars on quality if given a competitive option.

At one time teaching was a "noble" profession and for some it still is seen as a "calling."

Unfortunately, today it is sold as a commodity to the communities and a job to young teachers ("cattle calls")entering the field. Meanwhile the real purpose, educating students suffers as seen in RI graduation rates.

Education is too important to the economic development and welfare of the community and to the next generation to be entrusted to the "wisdom" and monopolistic power of Union leaders and union politics.

Tuesday, December 1, 2009

Dog Days in RI Congratulations Providence

The dog days of the summer of 2009 have slipped into the past. But there are new Dog days in store for Providence, RI. According to a story in the Providence Business News "City gets dog show after century in MASS"

With all the bad news and controversy these days in Rhode Island it is nice to know that there are somethings going right.

According to Julie Dennehy, a spokeswoman for The Bay Colony Dog Show, “We can’t say enough nice things about the [R I Convention Center] team, as well as the mayor’s office, the & Visitors Bureau,”

Now this is great for Dog Lovers. But what about you Cat Lovers?

How about matching the Dog Lovers and help the state and city out.

Who'd of thunk that pet owners might lead the charge for economic development.

Again Congratulations to all who help bring the Dog show to Providence.

Wednesday, November 25, 2009

The Smart Grid by 2015 -- What does RI face?

As we debate the merits of wind, wave, and other energy alternatives, we need to be aware of the types of issues that face the electric grid and those who manage its various components.

How will different generating sources impact the grid and distribution system? What are the synergies between consumer demands and supplier capacity? What about the potential impact of electric automobiles?

In the coming years, as we, Rhode Islanders, attempt to improve our energy infrastructure,here are some of the issues we will be facing.



If Rhode Island is to work its way out of the current economic crisis, political leaders and the general public are going have to take responsibility for finding solutions to Rhode Island's energy needs. Without reasonably priced and dependable electricity to attract and keep businesses here, other efforts will suffer. The public needs to educate itself about the issues in order to make the hard decisions that will be called for in the next 5 years.

Monday, November 23, 2009

How the Governor opposes the Lively Experiment

Rhode Island was founded on the basic principle of a separation of church and state. This was, and is, the foundation for the Lively Experiment which is Rhode Island.

There is a supreme irony that Roger Williams who fled Massachusetts Bay Colony to avoid religious persecution at the hands of the Puritans and founded Rhode Island on this principle of separation, would find today that Massachusetts has taken the lead in recognizing the separation. Three years ago, Katie Zezima reported in the New York times: Rhode Island Couple Wins Same-Sex Marriage Case

Since then Rhode Island has yet to recognize the validity of any same sex union. It is both disappointing and insulting, as a Rhode Islander and a follower of Roger Williams' principle, to see the following headline in the national news.

R.I. Gov. Vetoes Same-Sex Funeral Rights, Bill Allows Same-Sex Partners Same Right as Spouses to Plan Funerals

There are strong religious arguments for and against homosexuality. But there is no justification for a political partisan state official to ban or support an activity by a citizen on solely religious grounds. This is especially true here in Rhode Island where the constitution and tradition are founded on acceptance and tolerance of diversity,

When the Governor, elected by all of the people, denies the basic civil rights of some of the people based on a personal religious prejudice, isn't he violating his oath of office. Or is he acting as a tool of a particular church or religious body? That is what Roger Williams fled from in the Bay Colony. Now RI gays must go to Massachusetts to find the freedom that Roger Williams sought to establish here.

In a time of economic crisis such as Rhode Island faces today, petty bigotry is not helpful in promoting economic recovery, nor creating a business friendly environment. Would the Governor ban an employer bringing in much need jobs from moving into the state, if he knew that the owners of that family business happen to be a committed gay couple?

Is there any difference here between "high taxes" and "don't ask, don't tell" as a disincentive to business. Isn't the very ownership of the "family" company placed in legal limbo, if one or the other gay partners die??

The purpose of marriage is twofold: Procreation and nurturing. Sex and sexual orientation apply only to the former. Humanity is the test for the latter.

Marriage is a religious and civil act. Let religion decide what the procreative purposes of marriage for its followers. But let's make certain that the State supports the social and public purposes of marriage as a nurturing institution for individuals regardless of their beliefs.

The Lively Experiment is based on the concept of religious liberty, or, in Roger Williams' terms, "soul liberty."

Monday, October 19, 2009

Where is the Value and Who benefits?

Many problems arise when people loose sight of the purpose and goal of the things they do. They are quick to define problems in terms of short term discomfort, forgetting that the problem is the result of long term neglect,mistakes,or ignorance. Therefore they are prone to seek short term solutions.

Rhode island's budget crisis is not the acute problem that it has been portrayed in the legislature and public. It is chronic and worsening. We are taking cold medicine to treat a cough that is but a symptom of our lung cancer. This institutional and public denial lead to squandering opportunities for long term solutions to achieve short term fixes. The tobacco settlement money, unfunded mandates, unfunded pension obligation, borrowing for major projects just to capture federal matching funds, and forgoing routine maintenance on critical infrastructure are all examples of short term thinking with long term negative consequences.

Yesterday's Providence Journal carries the follow story:

"Dig uncovers significant historical site in Narragansett"

The outcome of the lawsuit and performance of the quasi-state agencies which currently control the destiny of the site will have a long term impact on the state, the local communities and the people of Rhode Island. Hopefully, our leaders may have gained some wisdom from past mistakes and take time to weigh the long term cost/benefits against the short term fix this discovery might make available.

Here are the options:

There is a opportunity to build some 20 homes in a prime piece of property in a desirable location in the state. Building this development will create some short term employment and sale of goods and services that would help the economy for a few months. The sale of the houses will generate some fees for local government, commissions for a few realtors, and sales to the new residence. In the longer term it will generate property taxes. The short term gains.

In the long term the public services to support the development will include new roads, utility lines, education and public safety costs for the new residents, and annual maintenance of the improvements. What will be the cost to the developer, to the community and who will be paying for this long after the developers have moved on?

On the other hand, South county RI is a tourist center and tourism is a major economic driver of the region. In turn tourism contributes significantly to the state's economy and general revenue. The site, as described in the story, is unique in the northeast and only one of two such sites on the Atlantic Coast. Isn't there value here?

There is certainly archaeological, cultural, historic, and scientific value to the site for both the Narragansett Indians and for the general public. But more than that, there is economic value with both a short term and long term payoff for all.

Archaeology is a labor intensive activity. Excavating the site will create jobs and need for supplies just as the construction of the homes would. The preservation of the site and its development into a historic tourist venue should produce jobs and income for the community well beyond the initial excavation and construction period.

The site is part of the history of the region which brings thousands of tourist into the area annually. Tourists buy gasoline, cigarettes,liquor, hotel rooms, meals, and other services and goods that produce tax revenues. And when it comes from out of state, it is new money added to the state's economy.

We complain about the lose of manufacturing jobs to offshore manufacturing plants. The United States is NOT a manufacturing economy anymore. It is a service and experience economy. This is where the growth is. Tourism is part of that economy.

Many people don't see that tourism, conducted here in the state, is really exporting entertainment and leisure services to other states and foreign countries. That is, people have to come here in order to consume our "experience" products. They have to come here and buy that experience and spend money here.

This archeological site is a one time opportunity for Rhode Island to capture the economic value of the site. Once it is dug up either for housing or a tourist attraction it's potential and value will be lost or radically changed.

Isn't it time we stop looking for the loose change found in the sofa for our next fix, and instead use it to start looking for a real job that will pay the bills and help pay off our debt?

Friday, September 18, 2009

WIRELESS Electricity : Can RI think systematically and innovationally about the future?

What would you do if you could walk into your home or office and automatically recharge your electric appliances with out plugging into the wall sockets? Park your electric car in the garage overnight and it recharges automatically? Move your HDTV from room to room without a bunch wires? Or even drive along the highway on free energy?

WHAT IF ALL YOU NEEDED WAS ONE DEVICE IN YOUR HOME TO PLUG INTO AND IT WOULD GENERATE ALL OF THE ELECTRICITY YOU NEEDED AT NO ADDITIONAL COST?

This could be the future here in RI, if only we had a creative and forward thinking legislature and state government.

Gov. Carcieri has been pushing for an off-shore wind farm to help the state overcome its energy dependency. But simply generating more electricity is not the solution to the energy or economic problems. We need to move further and faster if we are ever to catch up with the future. That future is wireless electricity.

And you ask, What the heck is that? And how does it apply to RI?

Check out this article by Paul Hochman at FastCompany.com


Wireless Electricity Is Here (Seriously)




Once we produce electricity from our wind farm, what are we going to do with it?
Sell it to National Grid to sell where ever it wants at whatever price?

What if instead, we sell to homes, buildings, and municipalities to power their wireless electricity generators (inductive devices mentioned in the article). These would recharge batteries on mobile devices and create electricity on any wireless equipment within the immediate range of the generator. For example, have an induction device implanted in your garage and on your electric car and recharge the batteries at night without plugging in. Wild thought but it is possible.

Just up the road in Massachusetts, people are already working on the basic engineering. Is anyone in Rhode Island thinking or planning along these lines?

Check out this video




Once Rhode Island was the manufacturing capital of the United States because we took advantage of the tremendous resource of water power on the Blackstone River. Samuel Slater changed forever the textile industry in America when he captured the power of the river. He changed the nature of energy production and use in his industry by replacing animal and people power with water power to spin thread and weave cloth. The use of water power was extended to a wide range of industries thereafter and served as the basis for Rhode Island's manufacturing industry in the early 19th century.


Today we are exploring the possibility of producing electric energy based on our wind resources. But the money and jobs are not to be made in the harvesting of the wind. The money and jobs will be found in transforming that free energy into electricity, it will be made producing products and systems that people can easily use and in more cost effective energy products.


Wireless electricity has the same potential of radically altering the nature of the commercial use of electricity and competing with traditional generating technologies.

As we ponder the bankruptcy of the state in the short term, are we going to forgo the future and long term? Here is an area which offers potential and is directly related to our needs for generating a new economic base.

Give it some thought and let me know what you think. It might bring back the Lively Experiment that has been RI.

Wednesday, September 16, 2009

Welcome to Rhode island

Some years ago I had the opportunity to be working in the middle east on a USAID funded agricultural development program in what is today Yemen (then it was North Yemen.)

Trying to understand the complexities of the area, I asked a Yemeni counter-part to explain why his people were allowing themselves to be caught up in the global and regional power struggles when there were so many other more immediate issues there in Yemen.

He said, "Let me tell you a story -The Story of the donkey and the scorpion."

Once there was donkey who was walking along a path when he came to a rushing stream. The stream was wide but fairly shallow. The path the donkey was following lead across the stream and up the side of the small canyon. As he stepped into the water a small voice called out,

"Hey Donkey!"

The Donkey turn in the direction of the voice but saw nothing.

"Hey Donkey, can you give me a ride?"

The Donkey turned and looked until his eyes fell upon a scorpion standing in the path.

"Hello!?" responded the Donkey.

"Hello! I see you are going to cross the stream. Can I ride on your back and get across? asked the scorpion.

"No," answer the Donkey. "I don't trust you. I'm afraid that you'll sting me."

Waving his hook tail with the sharp poisonous spike, the scorpion replied, "No I won't. Why would I?"

"I don't know. I just don't trust you. Your sting can kill me."

"Why," said the scorpion, "would I want to kill you if you are carrying me across the stream? I would drown."

"True," said the Donkey. "Ok! Climb up and get on my back! I'll take you across."

The scorpion climbed up the donkey's leg and position himself on the donkey's back just above the shoulders.

"Are you ready?" the donkey asked.

"Yes!"

The donkey started out into the stream, the scorpion comfortably seated between the donkey's shoulders. They were in the middle of the stream when suddenly the donkey felt a sharp pain in the base of his neck.

"You stung me!" cried the donkey. "Now we are will both die. Why? WHY DID YOU STING ME?"

The scorpion chuckled. "Because that's what I do. WELCOME TO THE MIDDLE EAST."


I thought at the time, how appropriate. The Arab/Israeli war had been going on for decades blowing hot and cold. Yet when you look at the region you see tremendous potential. Just think, the financial power of Saudi Arabia, the technological and entrepreneurial power of Israel, and the untapped labor potential of the Palestinians working together, what a global powerhouse. Instead they are engaged in a suicidal dance that threatens the world.

Today, I would change the ending. In light of the level of discourse here in Rhode Island between the Unions and the Governor, I would say, “Welcome to Rhode Island."

Friday, August 7, 2009

North Carolina Internet Sales Tax Moments Away

Headline on NY Affiliate Voice.com suggests that Rhode Island is not going to be alone in its attempt to impose the Amazon or Advertising tax on its citizens. This attempt to generate revenue from whatever source that vaguely relates to commerce and employment suggests to this writer that a sales tax on all services is not that far away. The Rhode Island legislature and executive branch should feel embolden by the North Carolina move.

Stay tuned -- more to come.

Wednesday, July 22, 2009

Addendum - Bangkok West

This is an addendum to yesterday's post and clarification

In light of yesterday's story about the teenage stripper, the Providence Journal this morning carries the following story, Providence legislator seeks to ban underage stripping

Rep. Joanne Giannini, D-Providence, said she is working on a bill that would ban anyone younger than 18 from working in strip clubs.


The story goes on to say that the teenager in question was from Massachusetts and was using a fake ID to get the job at the time.

This case may be an unusual and exceptional one, but it points to piece-meal approach that the legislature goes about when dealing with critical public policy issues. Loopholes whether by intent or ignorance are a hallmark of this part-time one party body. Short term and narrow political thinking have been the SOP (standard operating proceedure) of the RI Assembly for all too long. But as long as the people of RI are happy beggaring each other, it will continue.

Tuesday, July 21, 2009

Bangkok West? - Rhode Island Sex trade policy

The sex industry is a lucrative, pervasive and corrupting reality in the world today. Sex tourism is industrial policy and a major source of revenue for such "developing" nations as Thailand, Viet Nam, Philippines, Mexico, and Rhode Island.

What? Rhode Island?

Yes, there is a long and questionable history of a sex industry in Rhode Island. By intent or neglect, it thrives today. In today's Providence Journal there are two stories which point to the connection between the state's third world political culture and its sex industry.

First, on the Editorial page, focuses on the continuing debate about criminalizing prostitution. The question of sexual exploitation is a key element in the debate. But this is also an industrial policy question for the legislature. Private clubs and spas that can offer sexual services, albeit not "openly," but as long as it is done behind closed doors, are a major draw to the darker side of the Rhode Island tourist trade and economy.

In an OpEd piece: David Segal/Edith Ajello: Don’t turn prostitutes into criminals

01:00 AM EDT on Tuesday, July 21, 2009

Rhode Island state representatives David Segal and Edith Ajello write:

"...Many writers on these pages believe that many women who sell sex in Rhode Island do so against their will, that they are trafficked to Rhode Island by contemptible international syndicates. Somehow, they say, these women would be better off were we to empower police to arrest them, and the courts to imprison them.

We think that idea runs counter to the ideals and very purpose of our criminal-justice system: Since when do we arrest and punish the victims of crimes? Human trafficking is obviously a despicable practice; its magnitude in Rhode Island remains in question. "


While Segal and Ajello present the argument for and against criminalizing prostitution, they state that their primary concern is that criminalization would not help the victims of trafficking. This is a fair position if they had an answer. But the only way to solve the problem, according to them, is to wait.

Their conclusion is,

So, rather than enact legislation that will only make matters worse, let’s heed the advice of the experts. The Urban Justice Center’s Sex Worker Project put it succinctly. The solution to the human-trafficking problem “is more effective and vigorous enforcement of federal anti-trafficking legislation and passage of strengthened state anti-trafficking legislation, not the wholesale criminalization of the very persons you seek to help.


Their solution, if I read them correctly, is that it is too complicated for us -- "let the federal government solve the problem."

The second story raises questions about why our legislator and city councils are unable to solve the school funding issue. Is it because keeping kids in school might hurt the tourism industry?

Minors in R.I. can be strippers

01:00 AM EDT on Tuesday, July 21, 2009

By Amanda Milkovits, Journal Staff Writer

PROVIDENCE –– Rhode Island teens under 18 can’t work with power saws or bang nails up on roofs.

But dance at strip clubs? Sure. Just as long as the teens submit work permits, and are off the stripper’s pole by 11:30 on school nights.


According to the article
"State law says that anyone who employs a person under 18 for prostitution or for “any other lewd or indecent act” faces up to 20 years in prison and up to $20,000 in fines. But that isn’t enough to prevent underage girls from working in strip clubs, said senior assistant city solicitor Kevin McHugh, who researched the issue a dozen years ago when a teenage dancer was found at a raided strip club."


So why was this issue not addressed 12 years ago?

The article goes on
"When questioned about Rhode Island’s law, Michael J. Healey, a spokesman for the attorney general’s office, offered a copy of the current state law but did not comment for this article."


Nevada which has build itself on silver, sex and gambling has a more child friendly law than Rhode Island.

Again from the article,
Nevada, meanwhile, doesn’t let anyone under 18 work in casinos or in public dance halls where there is alcohol — and there are no strip clubs in Nevada without one or the other, or both, said Cartwright, of the attorney general’s office. Minors aren’t even allowed to deliver mail to brothels.


So, 12 years ago our political and justice administrative leaders learned that children were stripping for money in clubs which serve alcohol. Their solution was to do nothing, as they probably will do again. And now our legislators are proposing we do the same for those who, may drop out of school, and instead may graduate from dancing to the more lucrative profession of prostitution, willingly or as victims. And where is the line between child pornography and legitimate artistic expression.

There is a third world sex industry in Rhode Island which should and must be regulated -- through prohibition and/or strict regulation.

Wednesday, July 15, 2009

Thinking Outside the BOX: Tax the Tagger Graffiti artists????

Thinking outside the box is an occasional off the wall thought that might make sense in Rhode island.


Here is an interesting way to control graffiti. Sign painting is subject to sales tax. Why aren't we collecting sales tax from either the owners of the property being tagged, or from the taggers themselves?

Think About IT



STATE OF RHODE ISLAND - DIVISION OF TAXATION
SALES AND USE TAX
REGULATION SU 02-08


BILLBOARDS AND SIGNS



Tax applies to retail sales of signs, showcards and posters, and to charges for painting signs, showcards and posters whether the materials are furnished by the painter or the customer.

Where a billboard or sign manufacturer fabricates a sign and delivers it to the customer, who either installs it or has someone other than the manufacturer install such sign, the sale by the manufacturer of such a completed sign constitutes the sale of tangible personal property and the tax applies. This category would also include signs that are wholly fabricated in the dealers' shops but delivered to the job site in two or three sections as a matter of convenience, provided, that either the customer or some person other than the sign fabricator affixes such sign to the building. The rental of such signs is a rental of tangible personal property and is therefore taxable.

All signs which are fabricated by a sign company, whether they are completely fabricated prior to reaching the job site, or whether they are fabricated at the job site, or whether they are fabricated partially in the sign company's shop and partially at the job site, are considered as improvements to real property, provided that they are affixed by the sign company to the real estate in a permanent manner. The sign company in this situation is operating as a contractor and not as a retailer and is required to pay sales or use tax as a consumer on the purchase of materials and supplies.

Roadside billboards and bulletins which are constructed on the site where they are to be permanently located and which rest on foundations or have their own supports anchored into the ground in a permanent manner, are considered as improvements to real property. The fact that the panels may be removable for painting or storm protection does not alter the situation.

Lettering on walls, floors, doors, and windows of buildings are improvements to real property. Dealers who do this type of work are the ultimate consumers of materials and supplies so used and should pay tax on the cost thereof.

Other signs -- All other types of signs, whether handpainted, printed or electric, are tangible personal property taxable at their selling price. Installation charges, if separately stated, are exempt.

Except as otherwise stated above, sign companies must charge and collect the sales tax on the full selling price.

Sales of signs to contractors for use on their jobs are taxable whether or not the job is for a tax-exempt organization.

CROSS REFERENCE: SU 91-27 Contractors and Subcontractors -- "Regulation C"

R. GARY CLARK
TAX ADMINISTRATOR
EFFECTIVE: FEBRUARY 1, 2002

THIS REGULATION AMENDS AND SUPERCEDES SU 87-8 PROMULGATED MAY 1, 1987.

Wednesday, July 8, 2009

How about good news

All the bad economic news and press coming out of the state house tend to cover up and hide some of the good news. Here are some examples of good things going on in Rhode Island.


A Rhode Island firm is one of 3 New England small business firm to EPA sponsored Small Business Innovation Research Grant to Develop Green Technology

Release date: 02/27/2009

"Ion Signature Technology will receive $69,989for the development of an In Situ thermal extraction detection system (TEDS) for rapid, accurate, quantitative analysis of environmental pollutants in the subsurface. The goal of this technology is to provide data to better manage pollution site investigations and cleanup. TEDS would create a collection and analysis system that retrieves soil-bound pollutants as well as soluble and non soluble contaminants from groundwater. When the system is commercialized, it will “sniff” for the presence of pollutants; identify the pollutant, its location and quantity. This process will create conceptual models that depict the location and rate of movement of the pollution. The end result of this process also reduces the regular costs of pollution remediation."



Ion Signature Technology is a privately held company focused on developing and marketing advanced data analysis software and hardware. The company also holds proprietary technology essential to making a handheld Mass Spectrometer sniffer for the detection of explosives, chemical warfare agents, and environmental pollutants.


URI receives support from NIH's National Center for Research Resources, May 9th 2009
URI receives $18 million grant to strengthen biomedical research capacity in Rhode Island


The Rhode Island Foundation is a local source of support for community bootstraps initiatives

Nonprofit Organizations are a major community resource in Rhode Island. The Rhode Island Foundation is supporting the development excellence in the governance and operations of Non-profit organizations here in the state.


I will try to publish A good news entry each month from now on.

Friday, July 3, 2009

Here is the Little Gem that frighten Amazon and others away

The key is the Nexus principle in the U S Constitution which is being litigated in New York state.

Here is Rhode Island's take on the subject.


2 44-18-15. “Retailer” defined. — (a) “Retailer” includes:
(1) Every person engaged in the business of making sales at retail, including sales at auction of tangible personal property owned by the person or others.
(2) Every person making sales of tangible personal property through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer, is in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the last day of March, June, September and December. Such retailer shall be presumed to be soliciting business through such independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four (4) quarterly periods.

Wednesday, July 1, 2009

UPDATE -- COLLATERAL DAMAGES

I had just posted the earlier article when I stopped by The Providence Business News and found this story. OVERSTOCK is following Amazon's actions


Posted July 1, 2009
retail
Overstock follows Amazon, drops R.I.
http://www.pbn.com/stories/43314.htm
By Ted Nesi
PBN Web Editor

OVERSTOCK.COM’S CEO BLAMED STATE LAWMAKERS for its decision to drop affiliates in Rhode Island and other states where “where counterproductive (and likely unconstitutional) laws are being passed.”


Related Stories
Amazon.com cuts R.I. partners over tax (June 29, 2009)

The General Assembly Get's It Wrong -- AGAIN

On Friday morning I awoke to this message From Amazon.com (6 26 2009)


We regret to inform you that the Rhode Island state legislature is preparing to pass an unconstitutional tax collection scheme that, if passed and not vetoed by the governor, would leave Amazon.com little choice but to end its relationships with Rhode Island-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of Rhode Island.

Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.

But because the new law is drafted to go into effect once enacted, we will have to terminate the participation of all Rhode Island residents in the Amazon Associates program on or before the day on which is it enacted. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Rhode Island residents.

Note that other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states residents.

The governor's website is
http://www.governor.ri.gov/ [ http://www.governor.ri.gov/ ],
the Rhode Island legislature's website is
http://www.rilin.state.ri.us/
[ http://affiliate-program.amazon.com/ http://www.rilin.state.ri.us/?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=assoc-center-1&pf_rd_r=&pf_rd_t=501&pf_rd_p=&pf_rd_i=RhodeIsland062609 ],
and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/ [ http://www.performancemarketingalliance.com/ ].

We thank you for being part of the Amazon Associates program, and we will apprise you of next steps.

Sincerely,

Amazon.com


On Monday Morning I found that, I and all other affiliates in Rhode Island had been dropped by Amazon and our accounts closed to us.

This action by Amazon has created a little excitement here in Rhode Island but NOT YET enough.

I don't think the RI legislature nor the Governor's office are aware of the potential damage that may have already been done. It is not the sale tax per se that is the issue -- there are enough problems with that without this. It is the additional unemployment in the state with the third highest in the nation.

The real issue is that many individual, sole proprietors who have started legitimate businesses using the Amazon and/or other affiliate programs as a key element of their business plan, are now without a business. Business models such as Drop and ship, "clickthrough", renting ad space on websites, etc. are the way the web based business is developing.

These are not the traditional sales tax revenue streams. They don't fit the "brick and mortar" local sales tax model. Yet the issue which faces these private contractors and, businesses is that the legislature deems them to be an extension of Amazon.com Corporation. As result the legislature has deemed it within its power to impose upon a foreign (non-RI) corporation not doing business in Rhode Island a tariff, that is a customs duty, on all products shipped into the state of RI by that company.

In order to protect itself and any legal claim it may or may not have to the unconstitutionality of one state imposing a customs duty on the products shipped from another, Amazon has canceled all its ties with anyone who was enrolled in their affiliate program. This includes sole proprietors, and llc's who have enrolled and with the many nonprofit organizations who depend on innovative fund raising opportunities such as "clickthrough".

To the degree that the sole proprietors depend on the affiliate relationships for their income, I wonder how many more unemployed non-taxpaying individuals have been created by this poorly considered attempt by the legislature to avoid another year of poor fiscal legislation and third world economic development planning.

While the world moves toward freer and freer trade between countries for a 21st century global economy, RI moves backwards into the 19th century isolationist mode.

The argument is offered that this sale tax will level the playing field between Big Amazon and little mom and pop stores in RI. That is an illusion someone smoking a weed that the legislature wanted to legalize in a limited way contrary to federal law might come up with.

First, mom and pop stores serve a very useful function when they serve a specific need in the community. But second, when they are inefficient, poorly managed and unable to adapt to changing times by modifying or adapting they business model to the times then they will die with or without the help of the legislature. A sales tax on Walmart does not make mom and pop competitive with Walmart. The big box stores have done more to un-level the playing field than any invasion of mail order purchases.

There is nothing to stop a mom and pop store from setting up a website to expand their potential customer base beyond their block, town, city or for that matter the state. Further, if they have any sense at all, they will offer to rent, or even give away, space on their website to promote other peoples sites, just as they now post notices for others in their brick and mortar store windows.

Why Amazon you might ask? Because this is where the battle has broken out. It might next be Google, Ebay, Overstock or any of the thousands of websites that have joined an affiliate program for a major internet business. As you can see I am still enrolled in Adwords on this BLOG, but for long?? What's next?


When I planned to become an Amazon Affiliate it was with the idea that if I was going to recommend a book, movie, CD, or other product to one of my coaching or consulting client it would be easier for them to click on the Amazon widget and make the order from my site. In return for the referral Amazon would be paying me for space I gave it on my website to advertise. Well that never happened because I am still working on the site http://www.januslifecoaching.com and the Amazon widgets had not been installed.

Certainly I can still refer clients to Amazon and Amazon will get paid but I won't and I won't be paying the RI income tax on my profit.

Well maybe I can now apply for unemployment, or for a grant under the New Trade and Globalization Adjustment Assistance Act of 2009.

Friday, June 26, 2009

Rhode Island legislattive logic - in three stories.

Well the state's General Assembly is doing its last minute sweeping under the rug as it goes through the process of putting together a fiscal budget.

There are three separate stories I came across this morning that lead me to wonder if we will ever get it right before we go bankrupt as a state.

First, is an article in the Providence Journal by Bob Kerr entitled
What’s needed is more of the real stuff (01:00 AM EDT on Friday, June 26, 2009)

Rhode islander's have turned down Casino gambling for everyone including the Narragansett Indian tribe in a number of elections spanning a decade. Yet, we continue to depend more and more upon the revenues generated by Twin River Slot Machine Parlor and Newport Grande Slot Parlor. Kerr points out the darker side how we look at or fail to look at our gambling addiction in Rhode Island.

Thank God for the global economic meltdown. We can plug the projected budget gap with federal recovery dollars (this year, like we did with the tobacco settlement money in the past).

The second story is Governor Carcieri's speech
Governor Carcieri Calls for Tax Reform to Stimulate Economy, Grow Revenues and Create New Jobs

"The Governor stressed the need for tax reform in Rhode Island to stimulate the economy and to grow revenues and jobs." The Governor also posted a web video which outlines his three tax reform proposals: "phase out of the corporate income tax, personal income tax reform, and increasing the estate tax exemption."


Governor Carcieri stated in his video, 'As we struggle through this difficult economy, we need jobs more than ever before."

So we need jobs, entrepreneurship, and lower taxes. I agree. Rhode Island is caught between its legacy of big Corporatie Mill Owner vs Big Unions past and its small business entrepreneurial future. That legacy of the past is the anchor




in the state symbol that is dragging us toward bankruptcy and holding us back from the future.

So as we struggle with a gambling addiction and forgo structural changes in the way government operates,I received a notice in my email this morning. It was from Amazon.com. There maybe other similar announcements going out from Ebay for example, to small businesses and entrepreneurs with a home based, web based start-up business.

I quote this here.

From Amazon 6 26 2009

We regret to inform you that the Rhode Island state legislature is preparing to pass an unconstitutional tax collection scheme that, if passed and not vetoed by the governor, would leave Amazon.com little choice but to end its relationships with Rhode Island-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of Rhode Island.

Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.

But because the new law is drafted to go into effect once enacted, we will have to terminate the participation of all Rhode Island residents in the Amazon Associates program on or before the day on which is it enacted. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Rhode Island residents.

Note that other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states residents.

The governor's website is http://www.governor.ri.gov/ [ http://www.governor.ri.gov/ ], the Rhode Island legislature's website is http://www.rilin.state.ri.us/ [ http://affiliate-program.amazon.com/ http://www.rilin.state.ri.us/?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=assoc-center-1&pf_rd_r=&pf_rd_t=501&pf_rd_p=&pf_rd_i=RhodeIsland062609 ], and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/ [ http://www.performancemarketingalliance.com/ ].

We thank you for being part of the Amazon Associates program, and we will apprise you of next steps.

Sincerely,

Amazon.com


So we are to gamble the money we don't have to make sure the state has enough money to pay its bills and support the many social programs that support the people who have no jobs because we have taxed the business they worked for out of existence and now when responsible people try to start small web based businesses to support themselves we create a tax on those businesses that drives out the sources that the new businesses depend upon it live. Is that correct???

If you think this last sentence makes no sense -- your right. But it's Rhode Island legislative logic.

Friday, June 12, 2009

The Donkey and the Scorpion-- A tail of Rhode Island

Some years ago I had the opportunity to be working in the middle east. As we all know middle eastern politics are strange, convoluted and often self destructive. I was working on a USAID funded agricultural development program in what is today Yemen (then it was North Yemen.)

Yemen is a beautifully barren, rugged, mountainous area on the southwestern corner of the Arabian Peninsula. North Yemen and South Yemen had been at war for more than a quarter century as a result of cold war alliances US vs USSR, their colonial histories (Ottoman Empire, British rule, etc.), the regional politics (Egypt, Saudi Arabia, Israel)among other factors.

In truth nobody would have cared except that Yemen commands the entrance/exit to the Red Sea and the Suez canal.

Trying to understand the complexities of the area, I asked a Yemeni counter-part to explain why his people were allow themselves to be caught up in this global and regional power struggle when there were so many other more immediate issues.

"Yemen is a "Modern State" only because we are a member of the UN. Under this thin veneer of 20th century technology you see, is a 16th century medieval Arab confederation of sheikdoms." he reported.

Then he said, "Let me tell you a story -The Story of the donkey and the scorpion.

Once there was donkey who was walking along a path when he came to a rushing stream. The stream was wide but fairly shallow. The path the donkey was following lead across the stream and up the side of the small canyon. As he stepped into the water a small voice called out,

"Hey Donkey!"

The Donkey turn in the direction of the voice but saw nothing.

"Hey Donkey, can you give me a ride?"

The Donkey turned and looked until his eyes fell upon a scorpion standing in the path.

"Hello!?" responded the Donkey.

"Hello! I see you are going to cross the stream. Can I ride on your back and get across? asked the scorpion.

"No," answer the Donkey. "I don't trust you. I'm afraid that you'll sting me."

Waving his hook tail with the sharp poisonous spike, the scorpion replied, "No I won't. Why would I?"

"I don't know. I just don't trust you. Your sting can kill me."

"Why," said the scorpion, "would I want to kill you if you are carrying me across the stream? I would drown."

"True," said the Donkey. "Ok! Climb up and get on my back! I'll take you across."

The scorpion climbed up the donkey's leg and position himself on the donkey's back just above the shoulders.

"Are you ready?" the donkey asked.

"Yes!"

The donkey started out into the stream, the scorpion comfortably seated between the donkey's shoulders. They were in the middle of the stream when suddenly the donkey felt a sharp pain in the base of his neck.

"You stung me!" cried the donkey. "Now we are will both die. Why? WHY DID YOU STING ME?"

The scorpion chuckled. "Because that's what I do. WELCOME TO THE MIDDLE EAST."


This story came to mind as I read the following story in the Projo this morning. I thought, "We, the tax payers of Rhode Island, are the donkey and the Providence fireman's union is the scorpion."

U.S. Mayors' Conference in Providence
Controversy has swirled around the meeting, after a city firefighters' threat to picket led some political leaders to debate whether to attend.
http://newsblog.projo.com/2009/06/ready-3.html


Update: Firefighters fulfill picket threat at mayors' meeting

PROVIDENCE, R.I. -- Providence firefighters, some armed with signs, have showed up outside the Rhode Island Convention Center, the site of the U.S. Conference of Mayors, which kicked off this morning. They're gathered across the north entrance, on Sabin Street.

MAYORS WELCOME TO RHODE ISLAND!

Friday, May 22, 2009

The Lively Experiment is on life support

This story appeared in yesterday's Projo

"Cicilline bills would tax colleges and nonprofit institutions

01:00 AM EDT on Thursday, May 21, 2009
By Philip Marcelo

Journal Staff Writer

PROVIDENCE — Mayor David N. Cicilline, whose city faces a revenue shortfall approaching $50 million for the fiscal year starting July 1, unveiled two bills Wednesday that would allow municipalities to tax universities and hospitals.

One is the mayor’s much-discussed “student-impact fee,” which would assess private colleges a flat fee of $150 per semester for each full-time student who is from out of state.

The other would allow cities and towns to collect from large nonprofit institutions, such as major colleges and universities and hospitals, up to 25 percent of what the taxes would be on their tax-exempt properties.

The bill would affect nonprofit institutions that own property valued at $20 million or greater; the Roman Catholic Diocese of Providence would be exempt, according to Cicilline. .."

FOR MORE CLICK ON Mayor David N. Cicilline and select May 21st story.


In my view this is just another short term fix for a structural long term problem. The lack of imagination and courage is the hall mark of the legislature. I personally think Cicilline's TAX on students is stupid and in the long run will be more expensive than than what it will generate in tax revenue (law suits and delays implementation), I must, however, congratulate him on stirring up the pot and showing the world just how bad things are here.


Our "lively experiment" has run its course economically. It is time for a new Green House Compact Summit.

Our business model, as a state, is built on the haydays of manufacturing and the labor movement with cheap labor and water power. Today this is no longer the reality.

Our defense industries were build on the WWII and the Cold War need for (submarines and ship building). These have changed to meet new conditions that require higher levels of skills and not just brut labor and craftmanship.

Our fishing industry was built on the abundance of fish stocks -- today they aren't there. Environmental and susrtainability issues are drawing in the net that fishermen find themselves in.

We need this debate, but we need to also move beyond it to find a new business model for the state built upon our true strengths and cutting our loses now, no matter how painful. It is only fair to the next generation.

The current adult generation(s) created this problem. Let's take responsibility and clean it up. It is in all our interests.

Monday, May 4, 2009

Operation Boot Straps??????

Here is an editorial focusing on the never ending battle within the Rhode Island political and business community about the economic planning goals for the state. The real problem it seems to me to be defining the ROLE of economic planning. When I returned to RI in the mid-1980's, the argument was being made that all we needed was to attract one or two big employers and everything be great. This point of view -- steal businesses from other states is a third world approach to development which major corporations might enjoy. But today we are not competing with our neighboring states. we are competing with the world.
The most practical approach to economic development is "self development." By that I mean, Rhode Island government should focus more on the human and creative talents of those here in the state as the engine for development than trying to manipulate the physical, fiscal, and political resources to attract outsiders.
Support for a larger number of small investments in start-ups and local growth companies have a greater probability of producing positive results than the same amount spent on one firm in the form of tax breaks and advantages. Even if the investment in the start-up and growth companies is in tax breaks and advantages, Rhode Island would be better off. Rhode Island would take part in the growth rather than buying into established mature firms with limited growth potential.
Providence Journal Editorial: Bigger than the EDC
01:00 AM EDT on Monday, May 4, 2009
In an impressively blunt report, a panel headed by Hasbro Chairman Alfred Verrecchia lit into the Rhode Island Economic Development Corporation, calling its performance “fragmented, disjointed and without focus.” Mr. Verrecchia likened the state operation, which oversees a $5 million budget and employs 43 people, to a “basket of frogs,” exploding with energy but without direction.

True enough. Under Governor Carcieri’s helmsmanship, its last director, Saul Kaplan, spouted fashionable buzzwords while the state’s economy collapsed.

The panel recommended recruiting a new director (through a nationwide search) and creating a new private-public partnership to lure business to the state. These are good ideas. The EDC could perform a valuable role spreading the word about Rhode Island and making it easier for people to do business here, such as by speeding permit approvals when possible.

But, as many experts have pointed out, the big problem with Rhode Island’s economy is not something even a perfectly re-engineered EDC could fix. The Ocean State is a great place in many ways, with a superb location between Boston and New York, a strong quality of life (if you have a good job and/or a private income) and a hard-working private sector. But the state faces more than a marketing challenge, and until it solves some basic problems, the best economic development team in the world will not find much luck turning things around.

Rhode Island needs progress quickly in three areas:

•  Competitive taxes. The state will be hamstrung in attracting business while its taxes on businesses and executives remain higher than those in its neighboring states, never mind most of the rest of America. Federal taxes will have to rise to pay for new programs; indeed, fiscal prudence dictates that. But tiny Rhode Island is too small to go its own way. Businesses can fairly easily move to neighboring states. Making the state more competitive in taxes will require getting a handle on out-of-control public pensions, among other things.

•  Education reform. Rhode Island’s public schools are more expensive and perform worse than those of most states. For too long, they have been run too much for the benefit of such groups as teachers unions, and students have gotten short shrift. To attract businesses looking for a well-educated workforce, the Ocean State must reform its schools, encouraging innovation, accountability, management freedom to pursue best practices and greater choice for parents. The state’s public higher education has also gotten short shrift, even as administrative duplication among its three public colleges raises its inefficiencies and costs.

• Exploiting the state’s natural advantages. Rhode Island should be working vigorously to develop its maritime ports, which would create jobs and help businesses thrive by making it cheaper to transport goods. In addition, it should stop its foot-dragging on expanding the runway at T.F. Green Airport to permit European and West Coast flights. Politicians must develop the backbone to challenge the NIMBY forces that oppose job development and improved infrastructure.

Ultimately, these changes would make the state dramatically more attractive to job creators and even turn Rhode Island into a regional powerhouse. For too long politicians and their appointees have concluded that phrasemaking is enough — combined with tax and other incentives for favored industries, to be paid for by unfavored industries and individuals.

In truth, the economy is far too complex and innovation too quick for politicians to effectively choose winners and losers in the world marketplace. What a reformed EDC could do best is to show the rest of the world the Ocean State’s comparative advantages and urge policymakers to adopt programs that improve the state’s overall economic attractiveness.

Friday, April 24, 2009

What do you think about the Governor's Report on the Economic Development Council?

Shakeup sought for economic agency

09:07 AM EDT on Wednesday, April 22, 2009
By Benjamin N. Gedan

Journal Staff Writer

PROVIDENCE –– A panel reviewing the state’s economic development agency issued a blistering report Tuesday, criticizing its performance as “fragmented, disjointed and without focus.”


http://www.projo.com/news/content/BZ_EDC_REORGANIZATION_04-22-09_UTE41U3_v188.39431fc.html

My take on the subject:

I am a RI native-born who left the area after college and spent 20 years plus living outside the region and working nationally and internationally. When I came back here 20 years later, I realized just how much potential there is here. I am still waiting for the folks who I left behind when I left to see that potential.

EDC was created shortly before I came back.There have been a number of initiatives, plans, reorganizations, leaders, and development philosophies. The comments in the article are, from my perspective, soft compared to what might have been said.

I share the feelings of many natives who have returned to RI after time away, and the newcomers who see the beauty and potential of the Ocean State.

Many want to roll up their sleeves and do something.

Back in the early to mid 1990s, I was part of group -- Vision Rhode Island -- that evolved out a series of public meetings initiated by citizens and professional planners. Our goal was to stir things up and shake the power that be out of their narrow, boxed in short term thinking. We want to promote a We survived for about four years until the energy ran out. We ran into a lot of inertia and passive aggression from the powers that be.

There are some very dedicated people working at EDC but they are handicapped by the lack of leadership and consistency from the top and political interference of an incompetent legislature. All the talk about economic development turns out to be code for short term survival. (My opinion).

There is a definite need for a grass roots effort to bring change and to bring together a coalition of interests that are willing to take the long view and commit to it. Whether that is possible, I am getting to an age where I still hope but expect not in my lifetime.

The very strength of RI -- its strong sense of individualism and minimalism (39 cities and towns in what anywhere else would be an average size county) is also its greatest weakness.

Thursday, March 12, 2009

What do you see as the major obstacle to turning RI's economy around?

I attended a SBANE breakfast meeting this morning where Mike Saul, the new Director of the Rhode Island Economic Development Corporation spoke. He hit on several key points: (1) a need for regional (within RI and with RI's neighbors) planning and development; (2) a full range of options for capital financing from start-ups through attracting businesses to relocate into the state and every step in between; (3) streamlining and rationalizing the regulatory environment to reduce the costs of doing or keeping business in RI.

One member of the audience raised a question about RIEDC's role and ability to lead. Mr Saul observed that there have been 29 Directors in 39 years. While the early Directors laid out the basic economic development strategy for growth, over the years the agency's authority and responsibilities have been diluted as these have been shifted to new agencies and power centers.


My feelings are that Rhode Island as a state has tremendous potential. As a community, however, it is too insular and provincial to make the sacrifices and compromises necessary for the common interest. And in this class and a territorial warfare, waste and inefficiencies are the rampant way to maintain the petty warlords in the legislature. As long as we look at Rhode Island as a zero sum game, it will trail behind its immediate competitors Massachusetts and Conneticutt.


Tuesday, March 3, 2009

Rhode Island's Pride ????

The headline reads: The Economy in Crisis JOBLESS RATE: 10.3%
Subtitle: The number of unemployed in Rhode Island grows by 4,500 in a single month.

For some reason, most likely to sell papers and attract viewers, the local media seems to be taking pride in the fact that RI is nearly first in Unemployment. Its a race between RI and Michigan except that the points are scored by percentages as opposed to number of real people effected.

Certainly we need to be concerned in RI but lets face it, we are only the size of Detroit Population: 1,027,974. (Rhode Island 1,048,319 while Michigan is 10,095,643) Each unemployed person is worth counting and certainly worthy of concern. However when the press emphasizes the negative as something to be proud of it creates for a false picture of the down side. When the economy turns around RI will definitely grow faster than Michigan because there are fewer Rhode Islanders without jobs today.

In January RI lost 4,600 jobs while Michigan in December, 2008 lost 59,000 (latest figures I have at the moment)

I guess my point here is that with roughly 57,000 job seekers in Rhode Island and 519,000 unemployed in Michigan, Rhode Island is in a better position. we only need to find or create 1/10th of the jobs Michigan does to fully employ our work force.

While this is an oversimplified statement -- there are the discouraged workers who no longer show up in the unemployment estimates -- it does present a manageable problem, if the legislature and executive can get their act together to work on this problem.

Rhode Island is a small business state. If the tax and regulatory system were more inline with the needs of small business -- maybe we could over come our problem.

Data about the number of actual small businesses at any one moment are hard to come by.
However, the website SmallBusiness.com
http://www.smallbusiness.com/wiki/Rhode_Island_profile#Number_of_Businesses
carries this message.

Number of Businesses

There were an estimated 95,390 small businesses in Rhode Island in 2004. Of the 33,253 firms with employees, an estimated 96.5 percent, or 32,098, were small firms. In 2004, the estimated number of employer businesses increased by 2 percent. The number of self-employed persons (including incorporated) decreased overall by 2.6 percent, from 53,380 in 2003 to 52,004 in 2004. Non-employer businesses numbered 63,292 in 2002, an increase of 4.6 percent since 2001, based on the most recent data available.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; U.S. Dept. of Commerce, Census Bureau; U.S. Dept of Labor, Bureau of Labor Statistics.)


If each of these 32,000 small businesses were to hire one person we could reduce the unemployment rate significantly. So what are we doing about --????


And where is the press -- isn't this a story?

Monday, January 19, 2009

Mission Accomplished

At 5:00AM, on a balmy Tuesday morning, November 4th 2008, Jeanne, my companion, and I awoke. Thus began an 18 hour day working at the local polling places in Barrington, RI. I was appointed clerk for Precinct 105 and Jeanne a supervisor at the Town Hall.

The clerk is responsible for managing the voting supplies, resolving registration issues, helping voter to understand how to fill out various forms, and certifying voter affirmations and provisional ballots.

At 10:00 PM, the end of the day, and 1348 voters later, I delivered the seal ballot boxes and document bag to Town Hall. Mission accomplished.



It was a blustery November morning in 1960. The last of the leaves clung to the elms on College Green in front of Sayles Hall on the Brown University campus. At noon of Tuesday the 10th, I, along with 500 other sophomores, hiked into the hall to attend our bi-monthly, obligatory “Chapel.”, Chapel was the one of the last vestiges of Brown’s Baptist religious origins. It was a formal event, requiring a jacket and tie, mandatory for all freshman and sophomores.

Seating was alphabetical. We met here on my first day at Brown. We were told to look to our left and our right. “Next year one of your neighbors will no longer be there,” the Dean announced. This was my third semester. I almost became one of the missing. But I had survived and moved up 10 places. Now I sat just right of center in the front row.

As the campus bell tolled noon, I looked up at the pulpit/lectern. The Chaplain stood up and offered a invocation. The Dean followed, said some words I don’t remember and then introduced a tall, well dressed black man, a preacher from Georgia. He was to be today’s speaker. I vividly remember the large gold watch that he wore on his left wrist. Its crystal face caught an occasional beam of sunlight and flashed in my eyes. He looked out of place in this Ivy League bastion.

Sitting there, I worried about my German dialogue due in an hour and a half. I had no idea who or why the Preacher was there. Then he began his speech,” Facing the Challenges of the New Age." This is how I met the Reverent Martin Luther King, Jr.

By the end of the speech I found myself reborn from a nervous 19 year class conscious white kid who felt out of place in this world of rich elite WASPs. I felt empowered. I learned that I could make a difference. The feeling was reinforced two months later, when on Friday, January 20, 1961 the newly elected President John F Kenney proclaimed:

Let the word go forth from this time and place, to friend and foe alike, that the torch has been passed to a new generation of Americans -- born in this century, tempered by war, disciplined by a hard and bitter peace, proud of our ancient heritage, and unwilling to witness or permit the slow undoing of those human rights to which this nation has always been committed, and to which we are committed today at home and around the world.

On that day he was speaking to my generation.


I spent the summer of 1963 raising the money for my final year at Brown. On August 28, 1963, I watch the March on Washington from a distance when King said, in his “I have Dream Speech,


I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.


His speech re-enforced the sense of empowerment I felt on that day in November, 1960.


Three months later, on Friday, November 22, 1963, the nation was shocked when President Kennedy was assassinated in Dallas. As the word spread, I recalled Kennedy’s generational challenge

And so, my fellow Americans, ask not what your country can do for you; Ask what you can do for your country.

My fellow citizens of the world, ask not what America will do for you, but what together we can do for the freedom of man.


8 months later, after graduation, I joined the Peace Corps. In September 1964, I left to spend 2 years in Peru. During that time, I followed the black Preacher’s career on Voice of America, as he and others pushed for the Voting Rights Amendment. When President Johnson signed the Act on August 6, 1965, I was so proud of my country and generation.

When I returned in July, 1966, America had changed. It was the Age of Aquarius. In New York City, the Love generation was holding a “be-in” in Washington Square. And, we were at war. I entered graduate school at the University of Arizona that fall.

As the Viet Nam war dragged on, the love turned to hate. Civil rights gave way to the anti-war movement. Yet the dream remained.

On April 4, 1968, I, along with millions of others, was shocked and angered. Rev. King was fatally shot at 6:01 p.m. at the Lorraine Motel in Memphis, TN. Then, on June 6, Robert F. Kennedy was assassinated in Los Angeles right after winning the California Democrat primary.

Forces opposed to the American dream were killing off our leaders. I remembered JFK’s warning.

All this will not be finished in the first one hundred days. Nor will it be finished in the first one thousand days; nor in the life of this Administration; nor even perhaps in our lifetime on this planet. But let us begin

Still in graduate school, I decided that instead of a safe academic career, I would dedicate and apply my talents and commit to the mission for the long term.

Forty eight years later



When I arrived home, Jeanne was there. She had just returned from the Town Hall voting site. We were exhausted, but not so tired that we could not share our impressions of the day. Big crowds, of pleasant and happy voters; a feeling that something new was about to happen; and most of all new young enthusiastic voters voting.

We turned on the TV to watch the early returns. But it was a little too early and we were too tired to stay up any later. The next morning we awoke to the headline in the New York Times

OBAMA Racial Barrier Falls in Decisive Victory


In the fateful words of Martin Luther King on the night before his assassination:

I just want to do God's will. And He's allowed me to go up to the mountain. And I've looked over. And I've seen the promised land. I may not get there with you. But I want you to know tonight, that we, as a people will get to the promised land. And I'm happy, tonight. I'm not worried about anything. I'm not fearing any man. Mine eyes have seen the glory of the coming of the Lord.

In my mind’s eye, I thought saw a flash off his gold wristwatch when President Elect Barak Obama noted in his acceptance speech:

It's been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I feel my generation’s mission has been accomplished. I am proud to have witnessed it and played a small role in it. Yet there is much more to do.

I pray that this new generation will heed Obama’s words and enlist for the long term. The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America -- I have never been more hopeful than I am tonight that we will get there. I promise you -- we as a people will get there.

Pay It Forward -- Martin Luther King's Birthday

What good deed did you do today?

Tomorrow is the inaugeration of President Barak Obama and today in memeory of Martin Luther King's Birthday. To honor Dr. King, Obama has asked us all do something (volunteer)for our neighbor, community or others. This reminds me of the 2000 movie, "Pay It Forward," which dealt with the theme of idealism and pragmatism.

After 24 hours and two snow storms, this morning my neighbor came over and help me to shovel out from the 10" on snow. We then went to another neighbor's house occupied by an elderly couple and dug them out. Not earth shattering

So what have you done today?

Today, We are trying to adjust our personal lives to the monesterous changes of the past decade. There is fear and anger out there. Our faith and trust have been severly tested by the greed, arrogance and stupidity we have witnessed over the past decade. But those are things we can not change. Starting today, do a good deed and instead of asking, "what will I get out of it?" tell the beneficiary, Pay IT FORWARD.

Martin Luther King preached a message of love.following the examples of Ghandi and Christ. On this his birthday maybe we can begin to apply his method and start to around things here in Rhode Island, and the world.

Monday, January 12, 2009

Change is Possible in Times of Crisis

Change is Possible in Times of Crisis

Rhode Island is facing a significant short fall in it 2009 Budget. It is time for all vested interests to recognize that that their interests are sub-ordinate to our collective interests.

Governor Cacieri fireside chat on January 7th outlines the problem and proposed solutions.




My feels are that this is long overdue.

Rhode Island has been a leader for liberal ideals but Rhode Islanders have been very conservative in their willingness to take the long term steps to implement those ideals. The Legislature and their constituents are unwilling to give up their own privileges to achieve their alleged ideals. instead they find have spent the past quarter century squandering the state's resources for a quick fix.

If the public can not come to some agreement to make the necessary sacrifices then there maybe another alternative, Option 2





There are certain advantages for all parties if Rhode Island were to unincorporated, and split into two separate units, east and west. These units would be free to unite with their respective neighboring state. Among the reasons

· Economies of scale arising from a county system of government.

· The geographical benefits that would come from adding coastline to each of the neighbors, bringing the Taunton River Watershed under a single jurisdiction.

· Western Rhode Island shares a strong economic interest with Eastern Connecticut, while Eastern Rhode Island shares interests with Southeastern Massachusetts.

Of course, there is a downside such as the loose of 2 Senatorial seats in the U S Congress. This might be offset by stronger Congressional representation in the House.

The real issue is what do the people of Rhode Island do if their insistence on 19th century local government causes the State which makes that structure possible goes bankrupt?

CRISIS IS AN OPPORTUNITY TO THINK OUTSIDE THE BOX. This is what the lively experiment is all about!

WHAT IS A BLOG, IF NOT A PUBLIC DISPLAY OF AN INTERNAL CONVERSATION?

I think I started this Blog off on the wrong foot.

RI Legacy started with the idea of presenting an objective praise and critique of my home state. Native Rhode Islanders have a tendency to put down their own state. Unless they leave for several years and then return with a new set of eyes, many natives lose sight of the beauty and uniqueness of their home. Especially, in times such as this at the end of 2008, we can lose sight of the past accomplishments of and tend to dwell on the present negatives.

This is the direction I started to take here.

But as I have thought about it, there are plenty of websites that fill in the details of the good and bad elements of Rhode Island’s legacy. Rather than repeat facts and stories, rather than telling you about the Legacy, I have decided to take another approach and show you.

I was born and raised in Rhode Island before I left at the age of 22.

I spent the next quarter century living elsewhere.

When I returned, I had my new eyes. My praise was to be a salute to contributions Rhode Island has made to the evolution of religious, political and economic development of the United States over the nearly 375 years since its settlement. These are just a few of the positives in the legacy Rhode Islanders have inherited -

* Roger Williams and Religious freedom through separation of church and state, 1636

* Leadership in establishing political independence from Great Britain prior to any of the other colonies in 1776

* General Nathanial Green led George Washington’s southern army, in the freeing of the southern colonies during the revolutionary war.

* Samuel Slater introduced the Industrial revolution to North America by building the first cotton mill in Pawtucket in 1793.

* Commodore Matthew Perry, the U.S. Navy Commander of the “Black Fleet,” compelled the Japanese to opening of Japan to the West with the Convention of Kanagawa in 1854.

* Openness to immigrants from southern Europe, northern and Eastern Europe in the 19th and early 20th century and from South and Central America, Southeast Asia in the late 20th century fueled a diverse and rich cultural life.


As small as it is, Rhode Island, its institutions and citizens have made, and continue to make significant contributions to nation and the world.

But Rhode Island is no paradise. The beauty of Narragansett Bay and the Beaches in South County, the quaint New England villages of Wickford and Scituate, the glamour of Newport and its Mansions, the history of Providence and the Blackstone Valley, are not enough to offset a number of negatives that also are part of the Rhode Legacy.

* A strong legislature with weak Executive and Judicial branches of government has from the beginning created a local political climate ripe for corruption and insider dealing.

* A fragmented system of local government created to meet the needs of 19th century mill owners continues to plague the state of 1,000,000 inhabitants with 39 independent cities and towns each with its own local government and expenses.

* A strong set of public employee labor unions that along with the remnants of unions left over from the manufacturing hay days of the mid-20th century, dominate the legislative to promote labor interests over those of the public and business in a 21st century world.

* Provincialism, on the level of the Balkan, among the natives who have near really left the state and where a person will sell their house to be 5 minutes closer to their work, fosters a sense of inferiority and irrational sensitivity to criticism.

These are just some of the negatives that part of the RI Legacy.

These are negatives that must be addressed if Rhode Island is to compete in the 21st century. They must be addressed if those of us who have growing up here, left and returned, and if those who come here from elsewhere and seen and felt the potentials, are to stay and contribute in a meaningful way to “the lively experiment” that is Rhode Island.

So, as I see it, there is the context and the problem. The point of this blog from now on will be to explore my feelings and reactions to this legacy. As an heir to the “lively experiment”, what have I done to promote the good and to change the bad in this legacy?

Stay tuned.