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?

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."