One more desparate attempt to sell off RI Assets

From Projo.com Breaking News  3/9/2011

PROVIDENCE, R.I. -- Rep. Charlene Lima, D-Cranston, is proposing a Nov. 6, 2012, statewide vote on a suggested change to the state Constitution to allow a privately owned and run casino in Rhode Island in exchange for a $100 million one-time licensing fee. Similar to a bill introduced at least once in the past, the bill envisions a competitive bidding process. But it also suggests possible locations for the state's first full-scale casino.

 In my opinion:
     
     The gambling tradition and short sight legislature once again is asking us to sell off a state assets at a bargain rate price. If a casino is a major source of state revenue, why is  it being offered as one time license and a fixed price? The license should, if we go in this direction, be subject a periodic renewal date and be awarded on the basis of an open competitive bidding process.

     The licensing authority belongs to the tax payers of RI, and the legislature should be acting as the fiduciary agent of the tax payer. Such a duty requires stewardship and acting in our interests, not some backroom deal.

     And Should the State's Constitution be used as the vehicle for such a decision? 
     Is our Constitution that petty that we seal business deals in constitution amendments?

What do you think about it?

Another perspective: Teacher and Public Employee Pensions

A major debate has been and continues to go on about the role of public service workers (government employee) pensions and the rebellion by taxpayers exemplified by the position taken by such groups as the Tea Party and RISC (Rhode Island Statewide Coalition). The underfunding (or legislative stealing) of the state and local pension funds by legislative and community governing bodies and poor (or blatant) mismanagement of such funds by the trustees of these funds  (such as West Warwick) has certainly added to the current and future fiscal problems facing the citizens of Rhode Island at all levels. These issues have been discussed here over the past year and more.

At times, the blame game become more the focus for debate, than any substantive discussion of solutions. Ideological battles between Unions verses taxpayers, legislatures vs taxpayers, citizens verses public employees, reactionary conservatives (know nothings) verses reactionary liberals (progressives) generate a lot of entertainment and media noise. But just as the BP oil well in the Gulf of Mexico continues to waste millions of gallons of crude oil and natural gas and pollute the environment, the public treasury is still leaking and the state's fiscal future and public trust is being polluted by incompetent and greedy management.

Despite the debate and rancor at the State and community levels, we need to step back a little. The misbehavior which lead to the problem can be traced back to its source. That source is the general public, you and me, that is US, who through our uncritical support of our local elected officials have created a calcified legislature incapable of making the hard choices the times demand. We condemn the General Assembly but keep our own representatives who, when "they go along to get along," are not acting in our or the state's best interest.

Instead we elect representatives who can only make the easy choices, such as fireworks, cashing in the future earning from the tobacco settlement, approving budgets based on speculation about a federal bailout. The General Assemble has made short sighted and short term decisions over the past two decades that are today having real negative consequences, often unintended self inflicted ones.  Even those who promote such short sighted and selfish behavior are feeling the consequences today.

What are these consequences?

Every once in a while you run across an article, or posting, on the web that is worth sharing, especially in light of the issues confronting Rhode Islanders these days.  An article appearing on the Money and Market Website, entitled  State Pension Woes Only Worsening  by Nilus Mattive describes the significance of the public pension situation on the individual public employee who is, or has been "planning," for his or her retirement and expecting that the government will be able to keep its promise. After describing the sad state of affairs facing this public employee, he concludes with this warning.

I’ll Say It Again: Do NOT Count on Any
Government to Pay for Your Retirement!

As we go into this election year, it will be important that each citizen, each of us, consider the promises we made to state and local public employees through the actions of the legislators, council persons, and board members we elected to represent us. And especially those of you who are public employees, consider what the real consequences of your actions as a union member and as a taxpaying citizen have been. Consider where does your true enlightened self interest  rest. Consider what you have done to plan for your future and what you will do now. Consider what your chances are to retire with those rich pension deals negotiated at another time when we were all in a better place. 

The secret to life is change. The secret to success in life is the ability to change in response to a changing environment. Today, is the first day of the rest of your life, are you prepared to change?

Fireworks and the RI General Assembly -- a Combustable Mixture

Insane, Short sighted, incompetent and forgetful is the only way to describe the RI General Assembly and a Governor who goes along with them.

On June 16th, 2010 the RI General Assemble and The Governor gave approval of the

Fireworks bill

This morning the Projo carried this story about fireworks in a public building,Motel guests evacuated after fireworks set off

On Thursday, February 20, 2003, The Station nightclub fire occurred beginning at 11:07 PM EST. Located in West Warwick, Rhode Island, this is the fourth deadliest nightclub fire in American history, killing 100 people, four of whom died after being admitted to local hospitals. The fire was caused when pyrotechnic sparks ignited flammable sound insulation foam in the walls and ceilings around the stage. This subsequently created a flash fire that engulfed the club in 5½ minutes. Some 230 people were injured and another 132 escaped uninjured. Video footage of the fire depicts its initial growth and the exit blockage which hindered evacuation



At least one person appears to remember and care. I just received the following bulletin from the Providence Journal.

From the Projo 6/21/10 Breaking news.'The state fire marshal on Monday expressed concerns about the newly adopted law that allows the sale of fireworks in Rhode Island, but he stated emphatically that it does not permit the use of gerbs -- the kind of indoor pyrotechnic that set off the Station nightclub fire that killed 100 people in 2003. Jack Chartier, the fire marshal, said that under the new law, only "consumer grade'' fireworks, such as sparklers and poppers, are allowed to be sold to anyone 16 years of age or older. He said these type of fireworks are only permitted outdoors"

It does not take a genius to know what Albert Einstein observed.

Insanity: doing the same thing over and over again and expecting different results.

I guess our elected officials are as insane as those who elect them.

Rhode Island's "Amazon tax" , does it make sense?

As Rhode Island and Rhode Islanders struggle through the economic depression, State and local budget and debt crises, and high unemployment, local elected official are reaching out for all possible sources of new revenue and cost cutting. The crisis can be treated as a threat or an opportunity. How the public and the politicians respond to the crises will have a profound impact on small business in the post crisis period.

For example, one step that the RI General Assembly and Governor have taken is the "Amazon Law", is also known as an "Ad tax." This is potentially one of the most costly short term solutions to the long term future welfare of small business, entrepreneurship and competitiveness in this state.

An excellent argument pointing out the potential impact of the law can be found at affiliates-make-money-online.

Key points:
(1) This "Ad Tax" is going to impose excessive bookkeeping requirements on small businesses selling out of state through affiliates as the small business becomes responsible to knowing, recording and collecting the appropriate tax on each individual sale into each jurisdiction which has imposed an "Ad Tax"

(2) Affiliate programs are fairly inexpensive to set up and run, making them attractive for the entrepreneurial unemployed and underemployed to start their own business. If successful they become tax payers instead of tax beneficiaries. If Rhode Island wants to claim the title, "The Small Business State," it should be breaking down the barriers of entry, not erecting new ones.

(3) Tax avoidance is a major problem in Rhode Island and its legacy of under the table transactions, its long list of special interest sales tax exemptions and Florida auto license plates. The state should be considering closing some of these loopholes.

One way to bring about change is to change the culture of tax avoidance. It could begin by using publicity to educate consumers about their legal responsibilities for use tax payments, and the cost of tax avoidance on the community and the state. Maybe even trying collections as a voluntary contribution to the state at tax return time rather than trying to collect it from thousands of residents by legal means.

The Rhode Island General Assembly should revisit the "Amazon Tax" and commission a professional third party study and analysis of the true cost and benefits of the Amazon tax to the state and to small business. Such a study could be commissioned by the RIEDC or RIPEC.