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.

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.

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."

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?

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.