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?

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.

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.