Central Falls out of the frying pan and into the cauldron

Well it seems that a touch of reality has entered the Central Falls (CF) school crisis. When the union members discovered that there are over 700 - 800 teachers from around the nation willing to apply for the 90 or so opening created by the union leadership, reality struck. It seems that Central Falls is not the center of the universe. It is not isolated from the economic conditions facing the nation and the education profession. The local union can't control supply and demand on a national level.

Oh! Did I say, the union leadership caused the problem? The settlement reached between the teachers and the CF school administration is the same as the leaders refused to offer to their membership back in February. So where was the leadership then and why are they agreeing to it today?

It seems that threatening to sue, another union tactic, was not a viable option. So today, they are working behind closed doors to get their "FRIENDS" in the RI General Assembly to pass a law which

... seeks to prohibit the General Assembly from enacting changes to pensions that “diminish, impair or deprive” vested state employees of “presently existing rights or benefits.

Rhode Island State Senate Majority Whip, Dominick Ruggerio is the lead sponsor of S-2384, the Public Officers and Employees Retirement System Act. The bill will be taken up by the Senate Labor Committee this week ( week of May 16th). Like earlier efforts by these "FRIENDS" to impose binding arbitration on the cities, towns, and school committees, the unions are seeking a poison pill, golden parachute for themselves which is unsustainable.

If they succeed, they will be rewarding their older loyalists members at the expense of their younger members. This is a common union practice conducted every year through the bumping process which places seniority over competency in filling open positions. The future generation of teachers will have to pick up the future bill as tax payers and as dues paying union members.

But for the moment the school crisis seems to be under control. Out of the frying pan.

But according to the Providence Business News and the Providence Journal Central Falls has jumped into the cauldron of potential municipal bankruptcy. This is uncharted territory hundreds of communities and several states around the country are facing.

Receivership is a step away from bankruptcy. If Central Falls goes bankrupt, all contracts will be voided. The city may be required to unincorporate and to merge with a neighboring jurisdiction. These are the lessons we have learned from the failure of the banks, auto industry, among others in the recent national economic crisis.

It is no wonder that the Rhode Island Federation of Teachers and Health Professionals has reversed it position regarding Rhode Island's application for Race to the Top grants. This was a "no started" last week. Now it may be the only hope for some districts, such as Central Falls.

This afternoon the Providence Business News online published the following story, State law bars Central Falls bankruptcy. Because of state law, the GA will be called upon to help resolve the issue. This should be interesting to see how the politicians solve this one.

This is the legacy of years of greed and short term thinking that seems to be a characteristic of Rhode Islanders and the people they elect to public, union, and corporate offices.

Stay tuned while we keep track of the temperature