Common Ground July 13

JULY 2013

AM790 - Monday’s 3-4pm

State Budget: Pensions shortchanged but not 38 Studios bondholders

By Common Ground staff

The House version of the proposed state budget for the impending fiscal year misses a payment into the pension system but does make a payment on the moral obligation bonds for 38 Studios, angering many labor advocates.

Despite such disappointments, the budget is not all bad news. It has funding for the historic building tax credit and includes a provision mandating use of a union apprenticeship program. It funds a number of workforce development initiatives and also sets aside money for road and bridge construction across the state.

The Good Historic tax credits: The budget re-

stores the historic tax credit program, with $34.5 million that had already been set aside for other projects that never came to fruition, according to a Statehouse news release. The program restoration also comes with a condition that redevelopment projects over $10 million use a union-apprenticeship program—a move that has been applauded by the building trades. “It’s good news for us,” said Scott Duhamel, the secretary-treasurer for the Rhode Island Building and Construction Trades Council. “It’s a step in the right direction.”

Transportation funding: Another step in the right direction, Duhamel said, was the establishment of the Mu-

nicipal Roads and Bridges Revolving Loan Fund, with $10 million to get it going. The fund will “help municipalities perform major road repairs at a lower borrowing cost,” according to a Statehouse news release. The measure is seen as relief for many of those in the building trades, where unemployment still is well above the statewide average—an estimated 30 percent as of May, according to Michael Sabitoni, the president of the building trades council.

Developmental disabilities funding: The budget also continues to put back some of the $24 million that was cut in state-funded services for the developmentally disabled about two years

ago, according to state Rep. Raymond Hull, a Providence Democrat and a member of the city FOP. The proposed budget adds about another million in funding to the programs, according to Hull. He said that still leaves funding for such services below where it was before the cut.

Homeless shelter renovation: In a news release, state officials touted the fact that the budget invests $1 million in the renovation of Harrington Hall, a homeless shelter in Cranston. Officials said the allocation saves the House of Hope agency from spending $600,000 on the work—making that funding available for other purposes. But the funding was still less than the $3.5 milSee Budget cont. on page 4

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JULY 2013

Chafee party switch part of plan to win labor

By Common Ground staff TM

Governor Lincoln Chafee’s high-profile switch to the Democratic Party could be part of a broader campaign to win back the labor vote after relations with what was his base have been severely frayed in the wake of pension reform and the reappointment of Education Commissioner Deborah Gist.

If that is the case, Chafee has an uphill battle ahead of him, several state labor leaders say.

Even so, his best chance to win them back is as a Democrat, said pollster and political scientist Victor Profughi. A Democratic primary allows Chafee the chance to compete for the labor vote earlier in the race and also prevents a Democratic candidate from solidifying the labor vote before the general election campaign gets underway, according to Profughi.

Labor leader: Chafee turned his back on us But his best chance might not be that good.

“I think he turned his back on labor and he’s got a lot of work ahead of him if he wants any chance of getting support back,” said Philip Keefe, president of SEIU Local 580.

Keefe said Chafee had gone back on several commitments, including how pension reform would proceed.

Keefe said he had expected the pension reform process to be a thoughtful and timely one. Instead, he felt at the time—and still feels today—that it was a “manufactured crisis” in which reform was rushed through.

“I thought he would be much more supportive of labor issues,” Keefe said. “That’s bothersome.”

Another disappointment: Keefe said labor has not been included in key state decisions. “At least invite me to the table, explain what you’re doing … then I feel like I’m part of the process,” Keefe said. “But to totally freeze people out—that leaves a sour taste in my mouth.”

Such sentiments are especially acute in the teacher community, still reeling from the reappointment of Gist as commissioner. “Of course, it’s surprising that the week after you switch to the Democratic Party you alienate the base that helped get you elected in the first place,” said Frank Flynn, president of the Rhode Island Federation of Teachers and Health Professionals.

An olive branch for labor?

But in other areas Chafee has extended an olive branch to the labor community. He recently made two appointments to the Rhode Island State Labor Relations Board, filling two long-standing vacancies in the labor seats on the board. The two labor appointments were: Marcia Reback, the former head of the state teachers federation, and Scott Duhamel, the secretary and treasurer for the Rhode Island Building and Construction Trades Council.

The appointments were confirmed earlier in June by the Senate Labor Committee and by the full Senate later in the month, according to Sen. Frank Ciccone, D-Providence, a member of the committee, and the president and field representative for the RI Laborers’ District Council. Ciccone said he had suggested filling the vacancies months ago to Chafee as a way to build a more harmonious relationship with labor and working families.

Having a full board, he said, ensures a sense that its decisions are fair. The board has seven positions. Three are reserved for labor. Three are for management and the seventh is for a local government representative.

Last month’s two labor appointments join longtime labor representative Frank Montanaro on the board.

Montanaro is the former president of the Rhode Island AFL-CIO. See Chafee cont. on page 3

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See Chafee cont. from page 2 The board makes decisions regarding the certification and accretion of public unions. It also settles some disputes involving unfair labor practices and violations of the law, according to Ciccone.

Asked if Chafee was making other overtures to labor, Ciccone said he wasn’t sure. He said a key window into Chafee’s approach to the labor community will be how the state handles negotiations with state employee labor unions whose contracts are up for renewal this year. He said he was not familiar with ongoing developments in the contract negotiations.

A volatile primary with an uncertain outcome Barely more than a year from the Democratic primary, just one thing seems certain at this point: the labor vote will not be going to Gina Raimondo, the chief champion of pension reform. Chafee’s best case scenario, Profughi said, is for Taveras to not run, making it a race between Raimondo and Chafee.

“If he’s the alternative, and the only alternative, then it could be him,” Ciccone said.

Assuming Taveras does enter the race, Ciccone said he considers the Providence mayor and Chafee the candidates most likely to be favored. Keefe, on the other hand, suggested that Taveras might be the only choice labor has left since Chafee has gone back on his commitments.

Keefe himself said he will not be making a decision on whom to endorse until the race is well underway, an attitude echoed by other labor leaders. This time, Keefe said he will be much more cautious and circumspect in how he makes his decision on whom to back.

Keefe quotes a popular maxim to sum up his approach this time around: “Shame on you, if you fool me once.

Shame on me if you fool me twice.”

“It’s still a lot of time between now and the election,” Flynn said. “It’s wide open right now in terms of the whole dynamic of that race.”

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JULY 2013

Budget cont. from page 3 lion homelessness advocates had requested, according to an Associated Press report.

Workforce Development: The budget includes $4.5 million for various workforce development initiatives, with some of the money coming from federal sources, according to a Statehouse news release. Programs that are funded include the Rhode Island Back to Work program, spearheaded by Rep. Joseph McNamara and Sen. Erin Lynch, both Warwick Democrats, and the Job Match Program, backed by Rep. Donna Walsh, D-Charlestown, and Sen. James Sheehan, DNorth Kingstown.

The Bad Pension payment missed: The release of the budget contained a particularly unexpected and unpleasant surprise for state workers—a deliberate decision to not make a promised $12.9 million payment into the state pension system. The payment was supposed to come from tax revenue that the state received in excess of its official estimates, according to news reports. Hull said the money would have helped reduce the duration of the COLA suspension for most retirees that was done as part of pension reform. Philip Keefe, the head of SEIU Local 580, described the missed payment as “horrific.”

38 Studios payment made: Adding insult to injury, the budget does make payments on the moral obligation bonds for the now-defunct 38 Studios, something Hull and Keefe said they vehemently opposed. Keefe blasted state officials for honoring a so-called moral obligation to what he described as Wall Street billionaires while failing to meet its obligations to its own state workers. “I think they have as much of an obligation to fund that pension—as much as anything else,” Keefe said. Although it will cost the state just $2.5 million this year, annual payments will increase in future

years and end up amounting to about $90 million over the long term.

No raises for state workers: The budget also doesn’t have any money for raises for state employees—an ominous sign for those labor unions whose collective bargaining agreements are up for renewal. Keefe wondered what incentives state officials would be offering in return for whatever concessions or contract changes they will be proposing. “So what do they come to the table with? Nothing?” Keefe said. But, he added that contract negotiations have just begun and that the budget was far from complete at the time of the interview, before the budget had passed the full House.

“Until the budget’s actually approved, it’s a draft in my mind,” Keefe said.

Thousands dropped from health coverage: One of the more controversial—and shocking to some— provisions in the budget is a plan to move 6,000 lowincome parents from health care coverage under RIte Care to the new health exchange. About $500,000 has been budgeted to “assist with any coverage gaps” during the transition process. But Tom Sgouros, a progressive policy expert remained unconvinced that the drop in coverage won’t hurt those affected. “Some of those people are going to die because of this,” Sgouros said.

“Why is that not a problem?”

Local aid, but less than wanted: The budget has an additional $9 million in state funding for cities and towns, according to a Statehouse news release. It specifically chips in $4 million more for payments in lieu of taxes between 2013 and 2014. But the total additional aid is still reportedly less than what Governor Lincoln Chafee would have given cities and towns in his budget. Hull criticized the formula and said he believed there should be more aid. The budget also continues the implementation of the education funding formula, costing an additional $30 million this year.

But that’s not good news for every community. Hull said education funding for Providence remained the same, but it dropped in North Providence, which is also in his district. “We got a little gipped over there on that side,” Hull said.

The bottom line As of this writing, the budget still had a few hurdles to clear: full votes in the House and Senate, then the Governor’s signature. Along the way, changes could be made to what the House originally proposed.

Overall, Sgouros says the budget is more of the same that the state has seen in the past few years. He said state leaders continue to avoid making choices they need to. “They are walking just a little bit deeper into a mire each year,” Sgouros said.

In particular, he called state policymakers to task for their “economically destructive policies” which stiff cities and towns for state aid while ensuring taxes remain low for the richest Rhode Islanders. He said state policies are making matters worse for everybody—except a privileged few.

But Hull saw positives as well as negatives in the budget.

Despite his strong disagreement with the 38 Studios payment, he voted to pass the budget out of the Finance Committee, on which he sits. Hull said he voted for the budget so that the full House has an opportunity to weigh in on it. “There were other nice things in the budget,” he added, pointing to the funding for developmental disability services and funding for the remediation of lead paint in local houses.

“I’m not happy with the whole thing,” Hull concluded. “But you’re never happy with the budget. Period.”

Common Ground

JULY 2013

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EXCLUSIVE INTERVIEW:

‘Pension Detective’ Ted Siedle

By Common Ground staff

If there’s something amiss in how General Treasurer Gina Raimondo has invested state pension funds, Edward “Ted” Siedle will find it.

The man who styles himself “the pension detective” has been hired by AFSCME Council 94 to conduct a forensic investigation into the state pension system. In an interview with Common Ground, Siedle said he would be looking into fiduciary breaches, such as conflicts of interest, hidden or excessive fees, and violations of the law or wrongdoing.

Siedle rocketed right into the middle of local pension politics two months ago with a Forbes.com column declaring that Rhode Island’s pension reform looked like a “Wall Street feeding frenzy.” Siedle clearly was onto something—and he wasn’t letting go. About half a dozen

more columns ensued, questioning the decisions Raimondo has made, particularly her preference for investing money in hedge funds, which Siedle has described as a risky investment with needlessly high fees paid to the managers of those funds.

A pension investigator, with a proven track record Siedle may be a newcomer to the local pension debate, but he’s no stranger to such issues. He’s got more than a decade of experience investigating pensions under his belt. In 2001, he was tapped by the county government in Nashville to probe the management of the local pension investments. Siedle discovered that the firm overseeing the investments had pocketed “millions in undisclosed fees”

from the very investment managers it was supposed to be objectively evaluating in its role as a third-party adviser to the municipal pension system—a clear conflict of interest.

As a result, Siedle ended up helping Nashville recover $10 million from the firm.

A similar probe into city pensions in Chattanooga, Tennessee resulted in the recovery of $7 million. And he found double that amount in savings after he investigated Walmart’s retirement system.

Siedle has also previously investigated a statewide pension system. In 2012, his investigation into the Kentucky Retirement System exposed the potential for hidden placement agent fees in yet another conflict of interest controversy.

A global perspective Edward Ahmed Hamilton Siedle was born in Trinidad and grew up quite literally around the world—counting Venezuela, Panama, Peru, England, Uganda, and Egypt, as well as the United States among his childhood homes, according to his official biography. He’s currently writing a book about his experience living in one of those countries, Uganda.

Siedle studied in the United States, earning his undergraduate degree from Franklin Pierce College and a J.D. from Boston College Law School.

A nationally recognized expert in finance and law, Siedle got his start in the SEC Division of Investment Management.

He went on to become the legal counsel and compliance director at Putnam See Siedle cont. on page 7

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Common Ground

JULY 2013

New mediation business launched to settle disputes

By Common Ground staff

Disputes in the workplace can be costly. Poor work performance, increased absenteeism, low morale, soaring legal costs, and a tarnished public image are among the damage done when a dispute is allowed to fester in a business.

Large companies often avoid such pitfalls through mediation. “Mediation and alternative dispute resolution has long been an effective tool for Fortune 1000 companies in settling disputes informally, quickly, and inexpensively,” said former state Senator John Tassoni.

He pointed to a recent Cornell University survey that showed an “increasing trend of corporate counsel and human resources executives” are implementing mediation as part of company personnel policies. In fact, nearly 90 percent of Fortunate 500 companies have used mediation at least once in the last three years.

Now Tassoni is making mediation services available to smaller, local businesses, some with just a handful of employees and no formal HR departments available to help settle disputes. His business, Mediation Services of Rhode Island, offers businesses an affordable, convenient way to settle disputes, avoiding costly legal fees as well as lost time and wages at work. Mediation Services will help in other disputes as well—everything from divorces to land use disagreements.

Tassoni said his background uniquely positions him to help others in disputes, especially those in the workplace. “My background in the labor movement, having my own business now since 2009, and serving in the legislature for 12 years, dealing with different issues and different personalities, gives me a unique perspec-

tive,” said Tassoni, who is also the publisher of Common Ground.

“I think what inspired me is the years working with the labor movement in the court proceedings—and how long it took,” Tassoni said.

Mediation Services says it can handle is wide and includes the following areas of dispute: divorce, custody, child visitation, child support, parenting plans, relocation, elder matters, common law, and change of placement.

Disputes cost time and money Absent an outside mediator, data shows just how time and cost-consuming settling disputes can be within a business, according to Tassoni: • 42 percent of manager time is spent reaching agreements with others when conflict occurs • More than 85 percent of workers leave their jobs over perceived internal conflict • About 500,000 workers lose approximately 1.75 million work days and $55 million in wages as a result of ‘workplace victimization’ “Companies invest a lot of time and money training their employees, so it’s a big loss for them when those employees leave over a dispute in the workplace,” Tassoni said. “But many small businesses don’t have a full-fledged HR department.

That’s where we come in. We can fill that role that an HR department might have in a larger company, at far below the cost.”

Tassoni has been on the list of approved state mediators for years. Mediation Services, which is a subsidiary of Tassoni’s other business, The Sentinel Group, also recently registered with the Rhode Island Secretary of State’s office.

With the launch of his business, Tassoni has assembled a team of expert mediators with experience in settling all sorts of disputes. The full range of cases

Mediation for land use disputes One area of specialty will be land use mediation, something that many states and municipalities have started to offer in recent years. Mediation has a number of advantages—less adversarial hearings at zoning and planning board meetings, improved communication between developers and the public, and cost savings to all interested parties, including local government, according to Tassoni.

“For example, imagine a developer submits a proposal for development that is consistent with a city or town’s comprehensive plan, but a group of abutting homeowners strenuously object to the project because they feel it is not consistent with the surrounding rural character,” Tassoni said.

Mediation could also be used to settle land use disputes between two private parties—such as two neighbors who disagree over the placement of a new garage or tool shed, Tassoni said.

“Both examples demonstrate how mediation can effectively shift a situation from an adversarial setting to one of open discussion, potential compromise, and meaningful dialogue,” Tassoni said.

“The result is an informed taxpayer and a smoother administrative hearing.”

An affordable alternative to court Tassoni said Mediation Services will do everything it can to make its services af-

fordable and convenient for its clients. It will work around their schedules so that mediation meetings can be held outside of work hours. “The key here is there is no lost time at work and no lost wages,” Tassoni said. “I think it’s an economical way to settle issues in today’s society.”

He said Mediation Services will also offer its services at an affordable rate, with a sliding scale of fees tailored to the size of the business and the nature of the dispute that needs to be addressed.

“It costs a lot less to go through mediation than to go through the courts,” Tassoni said.

As intractable as some disputes may seem—whether it’s a worker and his boss who don’t see eye to eye, or a couple breaking up for good—mediation provides an outside perspective that often leads to solutions where none seemed possible before. “When you have a third person looking at the situation there may be a simple answer,” Tassoni said.

“I never thought I would settle my case. But the mediators at MSRI helped me find solutions that I never would have thought of, and my family life is better for it. They really helped me through a difficult situation and also provided ways that we can deal with issues going forward as well,” said one client, identified only as Lisa P. to protect her privacy.

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Common Ground

JULY 2013

Page 7

Siedle cont. from page 5 Investments, a major international money management firm, according to his official biography. His current firm is the Florida-based Benchmark Financial Services, which he founded in 1999.

Siedle’s clients have included the State of Alabama Personnel Board, Fairfield County in Connecticut, Burlington in Vermont, and the Orange County Sheriff ’s Office. All told, more than one trillion dollars in pension investments have been subjected to Siedle’s investigative scrutiny. Siedle is also the author of The Siedle Directory of Securities Dealers and has given expert testimony on various financial regulatory issues before the U.S. Senate Banking Committee, according to his official biographies on Forbes.com and his company’s Web site.

Investigating Rhode Island’s pension fund His investigation into Rhode Island’s pension fund has only now just gotten underway with records re-

ment system to take action in response to his findings.

For his part, Siedle said he wouldn’t be putting anything in the report that he couldn’t absolutely defend, should he need to testify in court in the future.

Of course, state labor unions have already sued the state over the pension reform law. But Siedle’s investigation is separate from the suit. Its focus is not on the constitutionality or even the basic legality of changes to benefits—the subject of the suit—but on the investment decisions that could be the driving force behind those changes.

“Rhode Islanders deserve better fiduciary behavior, in my opinion,” Siedle said in his most recent Forbes. com column on the state pension system. “It is my hope that her staff and I will be able to work together on this forensic review of the state pension. Regardless, the investigation is unstoppable.”

quests, which Siedle will spend much of the summer poring over. His findings are expected to be released by the fall—just in time to add new fuel to the fire in what is expected to be a hotly contested race for Governor.

Siedle said it’s too early to predict the outcome—and even if he could, he wouldn’t be able to disclose so.

“There’s no certainty what we’ll find,” Siedle said.

But he can guarantee at least two things from the outset: his investigative review will be exhaustive and that it will be objective. “What’s been sorely lacking in this state is an expert second opinion,” Siedle said in his interview. “No one has effectively questioned the investment decision-making process. That’s why I think only good can come of it.”

Given an unknown outcome, it’s naturally difficult to predict exactly what the impact of his report to Council 94 will be. Depending on exactly what he uncovers, Siedle said it will be up to financial regulators, law enforcement officials, and the members of the state retire-

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JULY 2013

Is college worth it in 2013?

By Gayle M Jendzejec CLU CFS CEP CCPS RFC CTS President, College Advisors Group LLC

The cost of college tuition has skyrocketed in recent years, and within a month, we’ll find out if interest rates on federal subsidized student loans are going to double as well.

It’s always been tough paying for college, but it has always been deemed a necessity because a college degree has been well worth the effort.

Today, a lot of people say that’s not the case anymore. They say it’s not worth the tens of - sometimes hundreds – of thousands of dollars. They say that you should just dive right into the work force and start earning instead of learning.

Some of them can sound convincing, and for some it may be the truth.

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We are all aware that getting a career started today is much different than ten years ago – it is extremely difficult especially with the high unemployment rate.

As we debate the cost of a college degree we need to look at the unemployment rate for individuals with a college degree or a certification.

Currently, the unemployment rate for those with a college degree is approximately 3.8%. The unemployment rate for those without a college degree is almost double at around 7.4%.

So, the message is that even if you are fresh out of college, you are more than twice as likely to land a job than those without a degree or certification behind them.

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According to a recent Georgetown University study…

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• A high school diploma holder can expect to earn $1.3 million in their lifetime.

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• A worker with a Bachelor’s degree will earn $2.3 million in their lifetime.

That’s a $1 million difference, and I don’t know a single person who doesn’t want an extra $1 million. If you are confused, you should seek professional advice. Remember though, the advice you get should be specific to your situation, not “cookie cutter.” The same advice should not apply to everyone so please be aware.

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Common Ground

JULY 2013

Page 9

Gist contract renewed, teachers ‘very disappointed’

By Common Ground staff

The state education board voted last month to renew Commissioner Deborah Gist’s contract for another two years, along with a 2 percent raise, in a crushing disappointment for many rank-and-file teachers and other critics of her controversial education reform agenda.

The renewal, which came on a 7 to 3 vote, was described as “very disappointing”

by Frank Flynn, president of the Rhode Island Federation of Teachers and Health Professionals. He said the board had disregarded the voices of thousands of teachers, who overwhelming disapproved of Gist’s performance as commissioner and did not support the renewal of her contract, according to a poll released in the weeks running up to the vote.

Two of three dissenting votes came from representatives of teacher unions: Larry Purtill, president of the state NEA, and Colleen Callahan, the Director of Professional Issues for Rhode Island the Federation of Teachers and Health Professionals.

The third dissenter was Mathies Santos.

A fourth member, Jo Eva Gaines, recused herself.

“I am disappointed because I thought it was a missed opportunity,” said state Sen. James Sheehan, D-North Kingstown.

Sheehan, who is also a history teacher at Toll Gate High School in Warwick, said the state education system needs someone who won’t be a “boss” but a “leader.”

“A leader inspires and does not demoralize his or her members ... that’s not a recipe for bringing education to a higher level,” Sheehan said.

Flynn said teachers are also disappointed in Gov. Lincoln Chafee, who, as the person who nominates the education board members, ultimately had the final say over whether Gist would be able to stay.

Teachers haven’t lost hope that things will change Flynn noted that, at the meeting where the contract was renewed, the board alluded to a new strategic plan that it would be pursuing.

“So we’re anxious to see what that plan is,” Flynn said.

Flynn expressed hope that the board would re-align state education policies with the many concerns teachers have raised about those policies in recent years.

In particular, he hopes the board will revisit Student Learning Objectives, known as SLOs, the new teacher evaluation process, and what he described as state policymak-

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ers’ “over-reliance” on the NECAP test.

Flynn noted that Gist also will be working under greater constraints than she perhaps previously has. For example, he said she won’t be able to weigh in on legislation that affects education without consulting the board.

Sheehan said he also sees signs for hope.

“In light of the rank and file’s intense dissatisfaction with Commissioner Deborah Gist’s leadership, Chairwoman Eva Mancuso stated that the Board of Education ‘would lead a restart,’” Sheehan said. “If that restart substantively addresses the major concerns of teachers, I am hopeful that we can move forward.”

“Teachers will be watching the board’s actions very closely to see if that promise is kept,” Sheehan added.

A silver lining?

Still, some saw a silver lining in the details of the contract itself. Gist reportedly had sought a three-year contract with a 4 percent raise. Instead, she got a two-year contract, with a 2 percent raise.

“What matters most isn’t the person but the policy. The board didn’t give Gist the contract she wanted, which is essentially a vote of small confidence,” said Tom Sgou-

John McMullen Business Agent

ros, a prominent progressive blogger who has recently written a series on the NECAP test. “If that setback causes her to reassess the policies that are damaging education in Rhode Island, it will be a victory for all of us. If not, she can count on more anger in two years, and how productive can that really be?”

Even so, her 2 percent raise will make Gist one of the highest paid education commissioners in the country. Prior to her new contract and raise, Gist was earning $204,600 annually and ranked as the highest paid among her peers in the region.

Under the new contract, her pay will go to $208,000, putting her among the top ten highest compensated education commissioners in the nation, according to a WPRI.com report that cited data from the Council of State Governments.

Gist’s contract extension will last until 2015, which means that whoever is elected Governor next year will have the opportunity to chart a new course in state education policy, should he or she choose to do so. At the very least, the extension timeframe ensures that education policy will be a major issue in the 2014 gubernatorial race.

Paul Alvarez Business Agent

Page 10

Common Ground

JULY 2013

The RIAFC Foundation Honor Flight needs your help

By Chief George S. Farrell (Retired) Chairman, RIAFC Foundation Honor Flight The RIAFC Foundation Honor Flight was officially recognized as an “Honor Flight Hub” in late August 2102. A public announcement and a press conference were held on September 16, 2012 to announce the RIAFC Honor Flight program.

Approximately 6 weeks later on November 3, 2012 the RIAFC Honor Flight took its “Inaugural Honor Flight” to Washington, DC with 10 WW II veterans as well as an additional 15 support staff consisting of the veteran’s guardians and other medically trained personnel (25 total people). We visited the World War II Memorial, Korean and Vietnam Memorials, Iwo Jima and Arlington National Cemetery.

On March 23, 2013 we took our second Honor Flight; “Honor Flight

Bravo” with 42 WW II veterans as well as additional support staff consisting of 52 veteran’s guardians and medically trained personnel (92 total people). Upon arrival at BWI we added an additional 10 active uniformed military personnel and boarded our 2 coach buses to Washington, DC to accompany our veterans as they visited their World War II Memorial, Iwo Jima Memorial, and Arlington National Cemetery for the changing of the guard.

Planning is well underway for our next Honor Flight on September 28, 2013. With the financial support of Ocean State Job Lot we have chartered a plane and we plan to take between 60-62 WW II veterans to Washington DC to see their WW II memorial. In addition to the veterans we will trans-

port from Rhode Island 70 guardians and medical support staff and equipment for a total of 130 people. Upon arrival at BWI we will pick-up an additional 15 active uniformed military personnel and some fire department officers from area fire departments.

We will travel to DC on our 3 coach buses and take our WW II veterans to see their memorial as well as other memorials throughout DC. It is truly the Rhode Island Fire Chiefs Foundation’s honor and privilege to fly our heroes to Washington, DC to visit and reflect at the memorials built in their honor. Our highest priority is to the aging World War II veterans along with any veteran facing terminal illness. It is the vision of the RIAFC Honor Flight program to continue this program to include oth-

er veterans such as Korean War and Vietnam War veterans in the future.

Veterans are chosen on a first come first serve basis, based on the receipt of a completed veteran application. To view pictures of our two Honor Flights and to make a donation, please visit our website at www. rifirechiefs.com. You may also visit www.turnto10.com and type Heroes of History in the search box to view the recent documentary that was produced by NBC10 about our veterans and the Honor Flight program.

www.mediationservicesofri.com

Common Ground

JULY 2013

Page 11

Health care reform: a view from 10,000 feet

By Robert Dumais, Principal with Allegiance Benefit Advisors 2014 is slated to be a pivotal year in the unfolding of health care reform. To date, changes have been important, but relatively subtle. Beginning in 2014, however, the changes are monumental by comparison, with some of the most significant changes outlined below (not in any particular order). Please realize, however, that this is a high-level overview and is not intended to be a decision-making level of detail: 1. Total prohibition of pre-existing condition exclusions: Effective January 1, 2014, an individual’s existing health status can no longer be a deterrent to their ability to secure health insurance coverage. “Pre-existing condition clauses,” though not so common in Rhode Island, are one of several mechanisms used by insurance carriers to control claims costs by limiting the ability of someone with an existing medical condition from getting coverage, or from getting unrestricted coverage.

2. Ceiling set on plan deductibles, and elimination of annual and lifetime benefit limits: Though these limited coverage plans are not particularly common, they have been an opportunity for employers/funds to offer low-cost coverage to their employees/members who would have had nothing otherwise. Where they exist, they are typically offered to part time employees/members. Though health care reform stopped new offerings of these products in 2010, appeals were allowed and exceptions were made in some existing cases, which let the plans continue through 2013.

3. Establishment of standardized essential health benefits: Each state will be given the option to select a medical coverage outline to work from beginning in 2014. The outline will detail exactly what services will be covered, and will outline any limits or guidelines regarding the coverage. Once the outline is established, each carrier offering products in the state’s exchange will then offer the coverage at actuarial values of 90 percent, 80 percent, 70 percent, and 60 percent; corresponding with the categories Platinum, Gold, Silver, and Bronze. An example of actuarial value might be as follows: the total cost of knee surgery is $10,000. If you

have a platinum plan, on average your exposure would be approximately $1,000 (10 percent), if you had a gold plan your exposure would be approximately $2,000 (20 percent), and so on. So while the items covered and not covered with each plan level are the same, the plan choices adjust the level of financial exposure. So individuals and those employers eligible to shop through the exchange will ultimately select a carrier based upon their perception of network access, customer service, etc., and then a plan level (Platinum, Gold, Silver, or Bronze) from that carrier.

4. Individual and employer mandates: The individual mandate refers to a requirement beginning January 1, 2014 that all Americans have health care coverage, and imposes a financial penalty on those that do not. The employer mandate requires companies with 50 or more full-time or full-time equivalent employees to provide “affordable” coverage or face penalties. (Further discussed as Play or Pay tax in #8 below).

5. Guaranteed issue and renewal rules: Insurance carriers must issue coverage to anyone looking to purchase it, and that coverage cannot be rescinded for “frivolous” reasons. Again, someone’s health status cannot impact their ability to get and keep medical coverage.

6. Tax credits and subsidies for individuals and small employers: For individuals purchasing coverage through the exchange, the cost will be subsidized in relation to the person’s income compared to the Federal Poverty Level (FPL). Subsidies are available for incomes of up to 400 percent of the FPL. Small businesses, defined as businesses with less than 25 full-time equivalent employees, who meet certain average salary guidelines, are also eligible to purchase coverage through the exchange, and will eligible for subsidies of up to 50 percent beginning in 2014.

7. Imposition of corporate ‘Play or Pay’ Tax: For companies with 50 or more full-time or full-time equivalent employees, they have the option to either provide “affordable” coverage (“Play”) or not provide coverage and pay a tax (“Pay”). The term “full-time equivalent em-

Part II of a series

ployee” refers to a complicated calculation (not for the mathematically impaired) which considers full-time, part-time, seasonal, variable, and excluded employees.

And while it is called a tax, it is treated not as a tax but as a penalty, as it is not deductible as the company’s insurance premium would be. The Play or Pay Tax is designed to require corporations to carry most of the health insurance cost burden for their employees.

8. Establishment of exchanges: Some refer to them as health insurance shopping malls. They can be run by the state or the federal government, or can also be run by some combination of the two. Exchanges will be a place for small businesses (possibly larger businesses also in the future) and individuals to shop the different carriers and plan offerings. Originally slated to be up and running January 1, 2014 with open enrollment beginning October 1, 2013, it was recently announced that the federal exchanges would not be up and running until January 1, 2015. So now it remains to be seen if the state and hybrid exchanges will be open for business on January 1, 2014, or whether their opening will be delayed as well.

2014 will be eventful in the world of health insurance, and a great deal of effort will be required at the federal, state, and local levels if it is all going to come together.

In Part III of this series we will discuss health care reform planning.

Remember, “Change is inevitable, struggle is optional. You have choices.”

Robert A. Dumais MBA

Allegiance Benefit Advisors Inc. 495 Purchase Street, Swansea, MA 02777

Cell: (774) 991-3369 Office/Fax: (774) 565-2002 email: AllegianceBenefitAdvisors@gmail.com

Page 12

Common Ground

JULY 2013

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Common Ground

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New initiative brings affordable health care to uninsured in RI

By Bruce Moran

Everyone knows that health care is changing. Unfortunately, change may not always bring good.

More than 90,000 Rhode Islanders remain without health insurance and access to basic preventive health services. Many more Rhode Islanders, with health insurance, are finding it financially hard to get

complete preventive care and sick visit care because of ever increasing deductibles in their health insurance. “Deductible” is a fancy word for paying out of your own pocket for basic health services like blood work, X-rays, and sick visits.

Dr. Zaheer Shah is a board certified internist (adult primary care doctor) who

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“Patients would come in for their annual physical exam and request that we skip the blood work,” Shah said, during a recent interview. When questioned, it simply came down to economics. Because of high deductibles, patients were financially unable to pay for their blood work.

They were making health care choices based solely on finances. “That was the moment when I decided that I had to do something,” he said.

Shah began to research and think about models for delivering basic health care services at price points that everyone could afford. “The yardstick I used was the price of a cup of Dunkin Donuts coffee,” Shah said. “We all know that Rhode Islanders live on Dunkin Donuts coffee every morning, so why not come up with a basic health care program that would cost about the same, a $1.50 per day.”

As Shah began to develop his idea, it became apparent that he would need to collaborate with other respected health care professionals to make sure he delivered the best and most comprehensive program possible.

Shah assembled a team consisting of primary care physicians, radiologists, nurse practitioners, PAs (physician assistants), nurses, a major laboratory, and Stop and

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Shop pharmacies. “We started asking better questions and considered outside-thebox solutions,” Shah said. “I challenged them to make our program affordable.

When I told them it had to cost less than a cup of coffee a day, I remember the initial chuckles that comment brought, however, my team took the challenge very seriously.

Item by item they overcame the obstacles that were impeding our progress.”

The team researched innovative basic health care membership programs across this country and found nothing else that met all of the basic needs of the patient.

Nationally, there are a variety of basic health membership programs available, but it’s not enough to just see the doctor if the patient can’t afford the blood work or the X-rays ordered by the treating health care provider. Also, most office visits and sick visits in the primary care and urgent care settings result in prescriptions being prescribed. Without a prescription plan, most prescriptions are too expensive for the average patient.

After a year of such diligence and review, the team developed a basic health membership program that could deliver basic affordable health care to every adult who needed it; a basic health care membership program that not only covers the office visit, but also pays for unlimited Xrays, blood work, and a prescription plan.

It’s an ambitious answer to the health care crisis in Rhode Island, where so many Rhode Islanders have no health care. It’s now available and it’s called the Access Basic Care Initiative (ABC Initiative).

Here’s how it works: for a $90 enrollment fee and only $45 a month, the ABC Initiative provides a comprehensive annual physical exam, unlimited scheduled See Health Care cont. on page 14

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Common Ground

Health Care cont. from page 13 appointments, prompt urgent care visits, unlimited sick who haven’t been able to provide any type of health care visits, extensive laboratory testing, unlimited basic X-rays for their employees in many years. One employer gave the and affordable prescriptions (a collaboration with Stop & ABC Initiative membership to his employee as a ChristShop to provide more than 200 prescription drugs for just mas bonus! “That was a proud moment for my team,” said Shah. $10 each).

The ABC Initiative operates currently out of two clin- “An ounce of prevention is worth a pound of cure” is ics located at Park Square Urgent Care in North Smith- an expression that everyone has heard. Unfortunately, it’s Friday, January to Monday,Two February 2013that the American health care system has rarely an adage field and Advanced Urgent Care 18 in Pawtucket. more 2nd, Shrimp clinics•are beingSpumoni planned to create a full state network in heeded. As a result, most Americans continue to die of Sauteed in wine & garlic butter with completely preventable diseases, like heart attacks and Rhode Island. scallions & diced tomatoes served over When thepasta Access Basic Care Health Membership Pro- strokes. This leaves primary care providers frustrated and • Shrimp Scampi gram was launched, it was immediate success. It has saddened. Too many Americans are skipping preventive Sauteed in a spicy garlican clam sauce withattention mushrooms,ofdiced tomatoes and drawn the local newspapers, magazines, and health care due to either lack of health insurance or the scallions over pasta Served with has been featured on local television news.

This media soup orhigh saladdeductibles associated with some forms of health in• Fried Shrimp surance. exposure and the amazing benefits of the ABC Initiative • Shrimp Fra Diavio Served over pasta have generated tremendous patient enrollment. Despite “The screening and preventive health care that we 5 of the most tender large ago, the ABC having Baked been launched only a few months provide today could save someone from a major adverse shrimp you’ve ever tasted, Stuffed Served with soup or salad, stuffed with200 our Ritz Initiative has enrolled nearly patients thus far. event fifteen or twenty years down the road,” Shah said. choice of pasta, baked potato, Shrimp cracker dressing.

Friestoo many Rhode Islanders are skipping out on But The clinics are staffed with highly trained, board-cer-or French tified physicians, physician assistants, and nurse practi- such basic services due to the cost.

1537 NEWPORT AVE., The ABC Initiative is an innovative, health care memtioners. The clinics are open seven daysPAWTUCKET a week. Patients 726-4449 must be 16 years of age and older and must commit to the bership program designed to provide Rhode Islanders www.SpumonisRestaurant.com Find us on (and many Massachusetts residents) basic preventive and program for one year.

Facebook The ABC Initiative has also attracted employers, some sick visit care. “But to be clear, the ABC Initiative is not

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“It does not cover hospitalizations, specialists, and more expensive testing like MRIs,” Shah said. “Although this is a program that offers basic affordable health care, we believe this is a way to start a real dialogue for change.”

“It’s time that physicians began to think out of the box,” Shah said.

“We cannot continue to wait for our politicians—regardless of which side of the aisle you lean on—to give us the solutions. The solutions in health care, I think logically and ethically, should come from the health care community. And this isn’t the final answer, but it’s our contribution to the dialogue, and we are very excited about it.”

Nearly 200 patients, in roughly 90 days, seem to agree with Dr. Shah’s assessment.

For more information, call Bruce Allan Moran at his office at 1-401-235-9064. He can be reached on his cell phone at 1-401-862-0155. He also welcomes e-mail inquiries at info@abciri.com. Visit the Access Basic Care Web site at www.abcri.com

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Page 15

Tax equity bills get hearing at statehouse PROVIDENCE – The tax equity movement may be gaining some steam in the current legislative session.

Tax equity advocates, including labor leaders, municipal leaders, wealthy Rhode Islanders, Providence public school students, small business owners, economists, and others, testified on May 8 in support of bill H-5751, sponsored by Representative Maria Cimini, D-Providence, that would increase the income tax rate from 5.99 percent to 7.99 percent on individuals making over

$250,000 per year.

According to the Institute on Taxation and Economic Policy, Rhode Island stands to recover $66 million in revenue by implementing this measure. Rhode Islanders for Tax Equity is advocating this additional revenue be used to increase funding to struggling cities and towns, lower property and car taxes on hardworking, less-fortunate Rhode Islanders and small businesses, restore cuts to critical programs that help our most vulnerable citizens, stop increases in tuitions at

our state colleges and universities, and repair our roads and bridges.

“This legislation would help to give local property tax relief for all of the cities and towns,” said Johnston Mayor Joseph Polisena, a supporter of the legislation.

“For years, I have watched as the Providence public schools I attended have faced budget cuts that have affected my ability to get the education I want and deserve,” said Jinnelle Harrison, a junior at Mount Pleasant High School and a member of the Providence Student Union.

“Every day students deal with buildings that are falling apart or classes that are way too large or losing electives and extracurriculars, because we’re told there’s no money,” Harrison added. “And now, as I begin planning for college, I know I may be facing record tuition rates that I don’t know how I’ll be able to afford. Because, again, there’s no money.

Well, there is money–we’ve just decid-

ed it’s more important to give it to the wealthiest Rhode Islanders through tax cuts rather than invest it in youth like me who will be the future of Rhode Island.

That’s wrong and it needs to end.”

A local small business owner, Kathy Lund, owner of City Kitty, also testified in support of the bill.

“My family is in the upper income tax bracket, and we can afford to pay a little bit more in order to help put money back in the pockets of middle-class Rhode Islanders. All facets of our community are being asked to help get the state back on its feet, except for well-todo Rhode Islanders,” Lund said. “I own a small business and talk to other small business owners every day. They are the real job creators–not the wealthy. This is the lifeblood of our economy, and it’s being threatened by an ever growing tax burden. It’s time to shift that tax burden onto the people who can afford it.”

See Tax Equity cont. on page 16

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Common Ground

JULY 2013

Tax Equity cont. from page 15 Valencia introduces alternative bill Some state reps want to raise the top tax bracket even higher.

To that end, Representative Larry Valencia (DRichmond, Hopkinton, Exeter) has introduced legislation (2013-H 5805) that would raise the state income tax’s top level for upper income earners to 10 percent.

Cimini is a co-sponsor of the bill.

Shared sacrifice is a phrase often used in troubled times, and while Rhode Island is slowly climbing out of an economic slump, Valencia is urging his colleagues in the House and Senate to recognize the need for sacrifice from the state’s top earners.

“For almost 10 years, the burden has only trickled down on working families,” he said. “We have seen increases in property and car taxes, which largely affect a bulk of the state’s most vulnerable population.

Additionally, we’ve seen cities and towns cut essential programs and staff, making the lives of our constituents more difficult. We need everyone to contribute, not just small businesses, the middle class, the elderly, and the poor.”

This is the third year Valencia has introduced the tax equity bill.

In 2003, President George W. Bush pushed through

several breaks for affluent Americans in Congress, including a 4.1 percent tax cut for married couples on income over $250,000 and for individuals whose incomes are $200,000 or more. Calling it his “civic responsibility plan,” Valencia introduced legislation to directly reverse those cuts. This year’s version of the bill would require individuals to pay an additional 4 cents on every dollar of income above $200,000 and married couples to pay the same on income greater than $250,000.

“Let’s fund public schools properly,” Valencia said.

“Let’s provide affordable higher education. Let’s increase workforce development and provide adequate health care for children. Let’s assist our seniors and people with disabilities. We need more aid to cities and towns. We need to invest and improve our infrastructure. Think of all we could do if everyone makes a tiny sacrifice.”

Valencia noted his proposal is relatively conservative and would only affect 5 percent of Rhode Island taxpayers. Possible benefits of the additional revenue include reducing the state’s sales tax or reducing other taxes and fees onerous to small businesses.

“While many of the most fortunate in our state have prospered and gotten wealthier, incomes for

working families and individuals have remained stagnant,” Valencia said. “This bill is not out to punish the successful in Rhode Island—it simply corrects the current imbalance of tax burden that has been placed on working families and small businesses with a fair and modest solution, while also addressing Rhode Island’s revenue crisis.”

“We can choose to remain at the status quo and watch economic conditions remain the same. Or we can create jobs and restore public services and programs, and further protect and improve the quality of life for all Rhode Islanders,” Valencia added.

Among those supporting Valencia in his mission are Tom Sgouros, a longtime policy analyst; Kristina Fox, of Ocean State Action; Alex Morash, president of Young Democrats of Rhode Island; and Amelia Rose, of the Environmental Justice League. The House Finance Committee was scheduled to hold a hearing on the measure on May 8.

In addition to Cimini, other cosponsors include Representatives Edith Ajello (D-Providence), Teresa Tanzi (D-South Kingstown, Narragansett), and Donna Walsh (D-Charlestown, New Shoreham, South Kingstown, Westerly).

Common Ground

JULY 2013

Page 17

Setting the record straight on Cicilline and Social Security

By Social Security Works and John A. Pernorio, President, Rhode Island Alliance for Retired Americans To quote the late Senator Daniel Patrick Moynihan, “Everyone is entitled to his own opinions, but not his own facts.”

On May 13, 2013 on WPRI’s “Newsmakers,” U.S. Rep. David Cicilline responded to a question about how to improve Social Security’s finances by stating: Social Security used to be a tax which was assessed on approximately 90 percent of the income generated in this country, which was sort of where it has been historically. It currently collects taxes on about 83 percent of wages earned, because the cap ... only captures 83 percent of earnings, because there’s been such a growth

of income at the very top.

PolitiFact Rhode Island judged the Congressman’s statement to be “Mostly False.”

it just above 90 percent of earnings.

Not only is Cicilline right about the history of Social Security, but his current work shows he also understands how to preserve our Social Security system for Let’s consider the facts: the future. In the House, Cicilline is leading the charge When Social Security was originally introduced by with a resolution already signed by over 100 members Congress, the cap to its contribution base was set at a rejecting the chained CPI benefit cut. level that covered more than 90 percent of earnings in An analysis by Social Security Works found that if the economy—92 percent in 1937, the first year that the chained CPI were enacted, even with the White Social Security contributions were collected. In the de- House’s proposed benefit enhancement, the average cades that followed, the share of covered earnings de- worker retiring today at age 65 would see his or her Soclined into the 70-80 percent range—not by design, but cial Security benefits cut cumulatively by $15,615 by by the simple operation of wage growth and inflation. age 95. The same analysis shows that by age 75, the cuIn the 1977 Social Security Amendments, Congress mulative cut would be $4,642; and by age 85, $9,521. consciously decided that the cap should again cover 90 Social Security’s benefits are as important as they are percent of wages, and took explicit steps to restore and modest. As of April 2013, the average Social Security maintain it at that historic level. benefit for a retiree was $15,200. And yet, two thirds of The House Ways and Means Committee report ac- our seniors rely on Social Security for a majority of their companying the 1977 Amendments explained: The “... income or more and about one third rely on it for 90 bill provides for increasing the contribution and benefit percent or more. base ... to a level where about 90 percent of all payroll Clearly, our Social Security system is working as in covered employment would be taxable for social se- intended. But the rest of our retirement system is in curity purposes.” The Social Security Bulletin article re- crisis. Traditional pension protections are greatly diporting on the 1977 Amendments expressed Congress’ minished, home equity is down, health care costs are legislative intent similarly: “In 1981 and after, about 91 up, and 401(k) plans are unreliable. The results are not percent of all payroll in covered employment will be pretty. Over half (53 percent) of working-age American taxable for social security purposes. ... In comparison, households will not be able to maintain their standard the ... base provided for in the original social security of living in old age—two thirds when health and longlaw taxed nearly 93 percent of all payroll in 1938 ... .” term care costs are counted, according to the Center for In the 1977 Amendments, Congress not only restored Retirement Research at Boston College. the cap to its historic level; it also automatically indexed We are facing a looming retirement security crisis: the new cap to growth in average wages, to ensure that Social Security works and is the best system we have to the cap would remain around the 90 percent level going provide security during retirement. Millions of Ameriforward. cans can’t afford even a single penny cut from their However, despite Congress’ legislative intent, the earned benefits. And Cicilline is right: we can improve share of earnings in the economy covered by the cap has the finances of Social Security—and retirement security declined from 90 percent in 1983 to about 83 percent overall—by raising the cap to again cover 90 percent of today, due to the fact that since 1983, income above the income. cap has grown much faster than income below the cap. So the Rhode Island Alliance for Retired Americans The Congressman is completely correct that in the rules PolitiFact “mostly false” again! two key moments in Social Security’s history when Congress acted to consciously set the cap, it chose to set

Page 18

Common Ground

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Common Ground

JULY 2013

Page 19

5 easy steps to improving your calcium intake

By Joy Feldman, NC, JD Most of us are careful about counting calories and watching our fat intake. Maybe you even walk three miles each day, rain or shine. But do you pay close attention to one of the most important minerals your body needs for bone health?

When it comes to strengthening bones and teeth, calcium is the king of minerals. Moreover, it also helps muscles and nerves function optimally. And it’s important to note that calcium isn’t something that your body can manufacture itself, so it’s essential your diet meets this critical need.

Did you know that bones and teeth store about 99 percent of the calcium in the body, with the remaining one percent usually found in blood, muscles, and other bodily tissues and fluid? Now this is important to note—if you do not get enough calcium from the foods you eat, your body will literally take the minerals out of your bones, depriving them of this critical

nutrient.

So what are the best sources of calcium? Dairy foods are an excellent source of calcium, but so are green leafy vegetables. One cup of spinach contains almost 250 milligrams of calcium, while a cup of kale has almost 100 milligrams. Broccoli contains 80 milligrams, making it another healthy vegetable to include in your diet. Other excellent sources include canned sardines (325 mg per 3 oz), canned salmon (180 mg per 3 oz), nuts such as almonds, legumes like garbanzo beans or peas, and fortified tofu (130 mg per 1 cup).

There are many easy ways to boost your calcium intake by sneaking these foods into your daily diet: 1. Add beans to soups, chili, and pasta dishes 2. Grate cheese over soups and salads 3. Enjoy yogurt with some crushed almonds

4. Include leafy vegetables in baked casseroles 5. Increase your intake of cooked green vegetables by adding theses delightful marvels to salads Joy Feldman is a writer, lecturer and author. She is the author of Joyful Cooking in the Pursuit of Good Health and Is Your Hair Made of Donuts? Learn more about her by visiting joyfeldman.com and isyourhairmadeofdonuts.com

Page 20

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JULY 2013

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Common Ground

Will the ‘RIDE’ be there for you?

JULY 2013

Page 21

By Barry Schiller

If you are like most Rhode Islanders, you do not use the RIDE vans for transportation, yet. But RIDE transports seniors and those with disabilities that keep them from driving, and almost anyone can eventually need this vital service. With our state’s aging population, that may be a lot of people. But RIDE is a complicated, expensive, little understood program with many issues, so it may be worth paying attention now so it will be intact if you ever need it.

One complication is it serves a wide variety of clients. These include those with disabilities preventing them from using regular RIPTA fixed routes. The Federal Americans with Disabilities Act (ADA) requires transit agencies to provide service as long as origin and destination are with three quarters of a mile of an operating bus route. ADA passengers can ride for any reason, even to visit a gambling venue! Though that once bothered some legislators, the federal law gives ADA riders the same right to go wherever they want as any other bus passenger. ADA riders pay $4, double the regular RIPTA fare for each ride, but RIPTA’s one-state one-rate fare leaves no financial incentive for ADA riders to keep their trips short even though long RIDE trips can be very expensive to provide.

Medicaid or RIte Care recipients have also become eligible for RIDE service, as are certain developmentally disabled and nursing home clients, mostly riding free. These trips are often for medical appointments,

adult daycare, dialysis, or senior nutrition. To keep costs down, schedulers seek to aggregate several passengers on the same van trip, but mixing a variety of passengers, some quite fragile, can be problematic.

The software intended to schedule trips efficiently may have been overwhelmed, initially at least. There have been reports of two vehicles dispatched for the same passenger. Getting through to the call center can also be problematic during peak hours, or during weekends when an answering service is supposed to take the calls.

That can make it difficult to cancel or modify trips, and there is apparently little notification to passengers when cancellations or other conditions change schedules. There is also the opposite problem of no-shows— folks who do not cancel trips so a van dispatched to the pick-up location, wasting time and fuel. In 2005 a report noted about 22 percent of schedules trips were cancelled, 3.8 percent were no-shows. Indeed, RIPTA staff is now working on a new policy to discourage excessive no-shows by a client.

It should be noted that while the fixed-route buses spend about $4.17 per passenger, a RIDE passenger costs about $23 per trip, and even about 50 percent more when taxis have to be used, which happens during periods of peak demand. However, taxi drivers are rarely trained to handle the sometimes fragile passengers.

Another issue identified is inadequate review for

eligibility, so there have been allegations of gaming the system to continue getting door to door rides. Also, RIDE has not been taking people to bus stops as had been originally intended in cases when the passenger can use the fixed-route buses but couldn’t get to the stop. Van drivers, when given their routes, are not always apprised of construction detours the way fixedroute bus drivers are, and sometimes are given inadequate information about the special needs of some passengers.

Indeed there are about 38 state programs that fund transportation, spending about $70 million annually on “human service transportation” (HST) intended for elderly, disabled, and low income people. A recent study of the entire HST system found redundancies and inefficiencies, inadequate oversight and coordination, inconsistent service delivery, difficulty tracking costs, and incomplete data collection.

Still another problem is that RIDE is subject to cutbacks as sustainable funding for the operator, RIPTA, is not assured as of this writing. So, for example, any loss of service on a RIPTA route means the loss of ADA RIDE access for those within three quarters of a mile of that route. Thus RIDE users and their families have an interest in assuring adequate RIPTA funding. The RIDE program itself cost about $14 million a year— about 14 percent of RIPTA’s budget though it carries See RIDE cont. on page 22

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Common Ground

RIDE cont. from page 21 only about 3.5 percent of its ridership.

All these problems are solvable, and RIPTA has both a dedicated staff working on these issues and an Accessible Transportation Advisory Committee (ATAC) to give input on how to do this. Recently, public hearings were held on the state’s HST Plan but if you missed that round, the public still has an occasional opportunity to weigh in, for example when legislation is considered, at RIPTA Board meetings, or during public comment periods at the Transportation Advisory Committee. One can also contact RIDE at 401-467-9760.

Barry Schiller is a member of the State Planning Council’s Transportation Advisory Committee. He can be reached at bschiler@localnet.com

JULY 2013

Providence Chamber of Commerce launches Entrepreneur Web Portal New site showcases RI as the hottest start-up community in the Greater Boston Region Rhode Island and Providence have a new tool for unleashing and bolstering entrepreneurial potential—www.entrepreneurprovidenceri.com.

The first of its kind Web portal in the state, created and populated by the Greater Providence Chamber of Commerce, the site is designed specifically to support the development of high-growth firms by providing key information on resources, educational opportunities, funding sources, and overall connectivity in and around Providence. Deep with data about Rhode Island, its idea makers, its knowledge assets, and its entrepreneurial ecosystem, the site serves as an important connection point for the individuals, organizations, and institutions driving knowledge development locally.

“Entrepreneurs have a great ability to see new, expanding, and innovative markets, create jobs, and contribute to the tax base,” said Chamber President Laurie White. “We see a real value in innovative ideas and want to make sure that those who work to create successful businesses around those ideas have the tools and knowledge to be successful. This site is the private sector investing in and supporting economic development around entrepreneurship.”

The site is also a critical tool in expanding Rhode Island’s innovation market.

Only 50 miles south of Boston, Providence is fast becoming an increasingly integral part of the Greater Boston regional economy. Many local entrepreneurs talk about Providence being the “hottest start-

up community in the Greater Boston region,” where launching a venture can be faster and easier because of the state’s small size, networks, and expertise.

The site already has a growing audience with more than 450 unique visitors in the first week. The most popular pages— Companies + People and the Blog. A companion Twitter Feed @EntPvdRIweb is also up and running!

“Rhode Island, and Providence, has an entrepreneurial mindset. We need to shout this idea from the rooftops,” White said. “I truly believe this site will create a stickiness that will bring more idea-makers to our door.”

Have suggestions or content ideas for the site? Send them to Lwhite@provchamber. com.

Common Ground

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Page 23

Labor Institute holds 33nd annual awards event CRANSTON – The Institute for Labor Studies and Research held its 33nd annual awards evening on May 9 at the Rhode Island Convention Center.

More than 300 state and national leaders representing labor, education, business, and the community were in attendance.

“This is a wonderful opportunity to recognize and celebrate the more than 6,000 individuals who participate in the wide variety of education and training programs along with those who support them,” said Robert Delaney, the executive director of the institute.

Each year, the institute presents its prestigious Eagle Awards to those individuals whose contributions to workers and their communities have distinguished them as leaders. This year’s award recipients were: • Tim Byrne, Business Manager UA Plumbers and Pipefitters Local 51 • Bea Lanzi, Vice President United Way of Rhode Island and former state senator • Patrick Quinn, Executive Vice President, SEIU 1199NE The evening also included a special recognition of the graduates of the insti-

tute’s Leadership for a Future Program as well as participants in its Workplace Adult Literacy Program.

Ray Di Pasquale, the commissioner of Higher Education and President of the Community College of Rhode Island, delivered the keynote address, in which he underscored the importance of effective education, training programs, and partnerships among education, labor, and the community as central to the economic development of the state.

Common Ground

Youth Sports Consulting Since youth sports are integral to our community, the Sentinel Group provides: • Coaching Professional Development, including Conflict Resolution (State of RI Mediator) • Child Abuse Prevention • Programs for Children with Disabilities • Anti-Bullying Programs • Fundraising

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JULY 2013

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