CG September '12

Mayors vs. Superintendents: who makes more … and why?

By Common Ground staff School superintendents in Rhode Island earn more than their counterparts in city government, on average making about $40,000 more than mayors, managers, or town administrators, a Common Ground analysis of state data reveals.

The average superintendent in the Ocean State makes about $135,000 annually, a figure which includes any longevity payments. The typical city mayor or town manager, by comparison, earns $96,000, according to the most recently available data from the state.

“I would say their [superin-

tendent] salaries are over on the high side,” said state Sen. Frank Ciccone, D-Providence, North Providence, drawing a comparison with municipal officials.

Biggest gap: Almost $100k In some individual communities the disparities in income are even more pronounced.

The greatest gap is in Richmond, where the superintendent makes almost three times as much as the top executive in the town government: a difference of $143,000 to $45,000.

In nearly a third of all communities, school chiefs topped

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the salaries of their municipal peers by about $50,000 or more, according to the state figures, which were published in September 2011.

In just one community is the difference less than $10,000: Coventry. And only two communities pay their managers more than their full-time superintendents: South Kingstown and Middletown. But there, the differences are each about $6,000.

For political scientist June Speakman, the issue is not that superintendents are over-paid.

It’s that mayors, managers, See SALARIES, page 2

AFL-CIO’s Tolman focused on November election

By Common Ground staff

Steven Tolman It’s “all hands on deck” as the Massachusetts AFL-CIO heads into the final months of the election season, the president of the labor organization, Steven Tolman, said in a recent interview to mark his first year in office.

Massachusetts is ground zero for one of the most crucial Senate battles in the country— Democrat Elizabeth Warren against Republican Scott Brown. Tolman says the AFLCIO is doing everything it can to highlight the anti-labor voting record of Brown, who he says went from the main street of Wrentham to Washington only to become “Wall Street’s favorite Senator.”

Brown, Tolman says, has voted with the extreme rightwing leadership of the U.S. Senate 80 percent of the time.

He’s sided with working families just 19 percent of the time.

See TOLMAN, page 5 R

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Common Ground

Common Ground

, Inc.

SEPTEMBER 2012

SALARIES cont. from page 1

TM

and town administrators are under-paid, when compared with the school executives.

Superintendents, she said, have one area of expertise: education.

Municipal executives, on the other hand, must have expertise in the broad range of departments that they oversee—public safety, public works, land use, recreation, and more, according to Speakman, who is the president of the town council in Barrington.

Demographic factors alone—number of students, amount of spending, or the wealth of the community— simply cannot account for the high salaries of superintendents.

Richmond, for example, is far smaller than Cranston, but both pay their superintendents salaries in the $140,000 range—far above what the municipal executives in each community earn.

Community wealth also can’t explain the trend: Pawtucket, one of the poorest communities in the state, pays its superintendent almost as much as Barrington, one of the wealthiest communities, does.

Politics, job market drives differences Instead, the explanation must be sought elsewhere. On the municipal side, elected mayors tend to earn less than both unelected municipal managers and school superintendents. That is largely driven by political

factors. “Voters don’t look kindly on paying public servants,” said Speakman, who teaches at Roger Williams University.

But that still doesn’t explain the difference between unelected officials on the town and school sides.

Speakman’s hometown of Barrington, for example, has a new superintendent who has been on the job for just eight weeks. The town manager, on the other hand, has been in his position for eight years.

But the starting salary for the new superintendent is higher than the base salary for the veteran manager, Speakman said. (The difference is currently $140,000 to $130,000.)

Speakman said school committees are driven by market factors in setting salaries for superintendents: presumably the high salaries are needed to at least match what a candidate could elsewhere and attract them to one’s community.

Plus, school committees don’t feel the same pressure to keep spending in line since it is the town or city council that sets the tax rates, according to Speakman. “We feel much more pressure from the public to keep tax rates down,” she said.

Is regionalization the solution?

Several years ago, in 2009, Ciccone proposed regionalizing school districts, in part, to combat high administrative costs which,

with the exception of the few regional districts that now exist, are duplicated from one individual community to another.

But his plan was torpedoed by concerns that local control over spending would be lost.

Ciccone said superintendents may justify their higher salaries by their many qualifications—such as certifications, education levels, and extensive work experience. But he pointed out that when federal mandates came down for those at the bottom of the local school pay scale—

teacher aides—to secure associate degrees or be grandfathered in by taking a test—that requirement did not necessarily come with a promise of a salary increase.

If teachers are now being asked to bite the bullet in foregoing salary increases, due to local financial pressures, Ciccone said superintendents should lead by example and do the same.

Officials with the Rhode Island School Superintendents’ Association could not be reached for comment in time for publication.

Common Ground

SEPTEMBER 2012

Page 3

Rebuilding Rhode Island and its workforce

By Congressman Jim Langevin

Jim Langevin In determining the policies that give Rhode Island businesses and our workforce the best opportunity to prosper and grow America’s 21st-century economy, we must recognize the importance of having a 21st-century infrastructure to support them. Once regarded as the best in the world, including an advanced interstate highway system and state-of-the-art air-

ports that allowed goods and people to travel as efficiently as possible, these entities are now in desperate need of repairs and upgrades. Recently, the American Society of Civil Engineers (ASCE) released a U.S. infrastructure report card that graded our overall performance on key projects as a “D.” We cannot expect our economy to reach its full potential when the networks that transport commerce—our roads, bridges, airports and railways—lag behind our international competitors. In Rhode Island, nearly 68 percent of our roads are rated in poor or mediocre condition and one in five bridges are

structurally deficient— the fourth highest of any state.

And those aren’t the only areas in which we have significant shortcomings. According to ASCE, the conditions of our power grid “can lead to system-wide failures in the event of unplanned outages.” Experts also estimate that an average of 700 water main breaks occur across the country every day, in large part due to an aging system of pipes. While these may seem like ancillary issues to some, they could not be more relevant to Rhode Island’s economic future.

Infrastructure modernization creates much-needed construction jobs in the short

term and provides opportunities for business development that drives additional job growth over the long term.

To have a sustained recovery, we must get our country’s fiscal house in order while making strategic investments in high-growth industrial sectors that will create demand for sustainable jobs. However, it is equally important that we invest in our aging roads, bridges and railways. Failure to maintain them will simultaneously hold back growth and cost more money over the long term. Delaying renovations results in an even greater fiscal burden down the road, whether it’s next year or after the

infrastructure finally fails.

That is why I fought to overcome objections

by House Republicans to fund a long-term extension of highway and bridge projects. This recently-enacted law will support construction projects over the next two years, providing Rhode Island with hundreds of millions of dollars in funding and thousands of anticipated jobs. As a result, more than 30 local projects that were nearly cut will move forward, including improvements to the Interstate 95 bridge over Route 2 and the I-295 ramps along on the Cranston/Johnston border. Separately, the Rhode Island Depart-

ment of Transportation received a $10 million grant for repairs of the I-95 Viaduct in Downtown Providence.

Moving forward, we must ensure that infrastructure improvements remain a part of our national dialogue, including the addition of high speed rail. Our competitiveness in a global economy requires a sustained commitment to these systems, which will create the conditions necessary for our labor markets to recover and build the businesses required to help grow our economy.

Congressman Jim Langevin, a Democrat, is running for re-election in the Second Congressional District in Rhode Island.

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Common Ground

SEPTEMBER 2012

Seasonal firefighters win fight for health insurance

By Treatment Solutions There are nearly 8,000 firefighters in the United States who are classified as seasonal— or “temporary”—employees. While seasonal firefighters can work the equivalent of a full year’s worth of work in just six months, they have been mostly ineligible for health insurance and other federal benefits.

The now infamous e-bill John Lauer is a 27-year-old seasonal firefighter for the U.S. Forest Service team in Custer, South Dakota.

A few months back, he sat down with his fellow men to draft up a petition; in his six years of service he had never received health insurance benefits. There have been recent advancements in worker’s comp, but Lauer noted, “if I got bronchitis in the winter because I inhaled smoke for six months, that wouldn’t be covered.” He also mentioned in the petition, among other tragic examples, a fellow firefighter who racked up $70,000 in hospital bills that he and his wife

were unable to pay after the premature birth of their son. She had to skip certain prenatal care due to the high costs.

Lauer posted the petition online. Two months later, 125,000 people had signed it and caused a public outcry among the firefighter community. Rep. Diana DeGette saw the e-petition and drafted a bill that would give seasonal firefighters the same health insurance benefits given to full-time firefighters who work under federal land management agencies.

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The White House takes action President Barack Obama made a huge move just hours after DeGette’s bill was introduced this past week, ordering his administration to offer health insurance to seasonal firefighters employed by the U.S. government to “ensure temporary federal firefighters who are bravely battling fires have access to the health insurance they deserve.”

Obama’s decision came on the heels of his recent trip to Colorado Springs,

the city that faced absolute destruction this past June after the Waldo Canyon caught fire, killed two people, and forced 350,000 people to evacuate. While he was in Colorado touring the destruction, the issue of seasonal firefighters and health care was brought to his attention.

Lauer’s petition and DeGette’s bill was the icing on the cake.

Many firefighters are celebrating To many American firefighters, John Lauer

is a hero. “It’s a huge deal, and there’s going to be a lot of really, really happy firefighters out there tonight,” he says of the President’s orders.

“I’m sure they’re all very thankful for what the President’s done.”

“The seasonal firefighters, they’re the ones digging the trenches, cutting trees down, actually putting the fire out on the ground, and they’re the ones breathing the smoke.”

Information in this article was taken from Reuters.

Common Ground

SEPTEMBER 2012

Page 5

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TOLMAN cont. from page 1 “That’s significant,” Tolman said. “That’s not a close call.”

All about the election Educating members is key since 49 percent of union members in Massachusetts went for Brown in 2010. But that was when he was a state senator and had not racked up the anti-labor record he now has as U.S. Senator, according to Tolman. “So it shouldn’t be that difficult to make our case to our members that we need change and that we need somebody who will stand with us on our issues,” Tolman said.

The state AFL-CIO got an early start on election season this year, rolling out its endorsements of Warren and the candidates for the U.S. House in February. Across the board, Tolman says the GOP

candidates have an antilabor agenda. He points out that if elected, Brown and his colleagues in the House will be casting their first votes for Mitch McConnell (in the Senate) and John Boehner (in the House) as their leaders. “These guys certainly aren’t looking out for the working middle-class families,” he said.

He also took aim at the presidential ticket, slamming Mitt Romney and newly announced running mate Paul Ryan for not having workers, seniors, and the sick as their top priorities, instead focusing on tax cuts for the wealthy.

“They want to push us back even though we’ve taken it on the chin for the last 30 years,” Tolman said. “They want to push us back to the 1920s.”

He’s not taking anything

for granted in this election.

“I’m not sitting on the hammock,” Tolman said.

“If we lose the Senate seat, if we lose the presidency, you know what we’re up against.”

First year: push for unity Tolman took the reins of the AFL-CIO in October 2011. “Any time you change a job … it’s a big adjustment,” Tolman said.

“But it’s been terrific. It’s everything I’ve expected and more and I’m very excited.”

In his first year as head of the Massachusetts AFLCIO, Tolman has focused on improving communication between the state leadership, its local affiliates, and rank-and-file members so that everyone is on the same page, speaking out with one voice. He wants members to have

more of a say in developing the statewide legislative agenda for the AFL-CIO, and he wants them to build relationships with state representatives and state senators at the local level.

“We need to get back to the way it used to be,” Tolman said.

He’s also worked to bring other union organizations under the AFL-CIO umbrella. He’s got a growing list of ones that have already come over—UNITE HERE Local 26, Service Employees International Union (SEIU) Local 509, SEIU Local 615, and, likely by publication time, SEIU Local 888 as well.

The AFL-CIO has also strengthened its ties with the Massachusetts Teachers Association, according to Tolman.

“It’s about being united and working together – all

of us,” he said.

He also closed out the last state legislative session with some notable wins, including passage of a workforce development bill, legislation that laid the groundwork for temporary worker rights, and a new law on organizing for child care workers. He said the AFL-CIO also kept Taunton State Hospital open “against all odds.”

Tolman came into office right in the heat of unprecedented public pressure to slash government pension benefits, battles which hit close to home in Massachusetts and Rhode Island.

At the time, he said one of his top priorities would be changing the public perception of labor unions.

Winning big this November, Tolman said, would be one way of achieving that goal.

Outlook after November To say it’s been a busy first year might be something of an understatement.

But don’t expect Tolman to take any big breaks after the election. “As an organization, we cannot just be a political organization,” he said. “We need to be in full swing 12 months a year.”

In a post-election cycle, he added, that means developing a robust legislative agenda for working families that likely will include calls for raising the minimum wage.

“The most effective strategy we can have is being solidified, unified, and communicating with each other,” Tolman said.

For more information about Scott Brown’s voting record visit: http://www. massaflcio.org/wall-streetsfavorite-senator

Page 6

Common Ground

SEPTEMBER 2012

Flynn endorsement of Brown shakes up Senate race

By Common Ground staff U.S. Sen. Scott Brown turned up the heat in his election battle with Democratic challenger Elizabeth Warren late this summer by rolling out a series of ads featuring endorsements by several state Democrats.

Brown made his first splash with a prominent endorsement by former Boston mayor Ray Flynn.

“Scott Brown is a person I have great admiration for. I’ve found him to be a regular guy. Honest. Hard-working,” Flynn says in the ad. “He’s also an independent voice. I’m a Democrat, but I’m tired of all the polarization, the pettiness, the bickering. Scott Brown is a person you can work with.”

Brown continued to make waves with two more endorsements from former Worcester mayor Konnie Lukes and Paul Walsh, the former district attorney for Bristol County.

The endorsements are meant to play up Brown’s street credentials as an independent-minded U.S. Senator and play down the “R” that will appear after his name on the November ballot.

Warren is doing everything she can to remind voters that, try as he might, Brown can’t erase that “R” next to his name.

According to a recent report in the New York Times, she’s pounced on the Paul Ryan nomination to reinforce Brown’s party status, blasting the “Romney-Ryan-Brown” ticket and the “RomneyRyan-Brown” budget.

Local Democrats, meanwhile, are dismissing the significance of the ads.

One spokesman for the state Democratic Party described the ads as a distraction, saying Brown is hoping to draw voter attention away from his voting record in Washington. “Republican Scott Brown wants

to focus on anything other than the issues because he’s on the wrong side of the real issues that matter to Massachusetts families,” said Matt House, a spokesman for the Massachusetts Democratic Party.

“He’ll do anything to avoid talking about joining the GOP to weaken Wall Street reform, block tax cuts for the middle

all three Democrats had a long-standing record of standing with Republican candidates.

“Let’s face it, Ray Flynn … he endorsed Cellucci. He endorsed the Republican governor candidate,” Tolman said.

“His support for Scott Brown didn’t surprise too many people who know the situation.”

So it is with the two

“Of course, only the final vote on November will tell whether those endorsements mean anything.”

– Steven Tolman class, and vote to protect huge subsidies for the big oil companies,” House added. “He can’t hide his conservative record from the voters of Massachusetts.”

Steven Tolman, president of the Massachusetts AFL-CIO, also downplayed the impact of the ads, noting that

other Democratic endorsers. Lukes, Tolman said, has several family members who are members of the Republican Party and Walsh has always been “Republican leaning.”

Still, Tolman found the ads disconcerting.

“I don’t like Democrats endorsing this guy,” he

said.

Indeed, all three Democrats have a proven track record of crossing party lines at election time. Flynn not only endorsed Cellucci, he also backed George Bush over Al Gore in the 2000 election, apparently sat out the next two elections only to come back and throw his support behind Mitt Romney’s presidential bid. As one observer has put it, Flynn has a “history of making nice with Republicans.”

Walsh and Lukes have also racked up some high-level endorsements of Republicans. Like Flynn, Lukes supported Cellucci in his gubernatorial bid and she backed William Weld over John Kerry in the 1996 Senate race. In 1998, she memorably called President Bill Clinton a “scoundrel” and refused an invitation to the White House.

As for Walsh, he too has thrown his support behind Cellucci and

Weld in past elections.

For Walsh and Lukes, their cross-party endorsements in the past have not been without controversy. In 1998, the Worcester Democratic City Committee censured Lukes over her public support for Cellucci and called for her resignation.

“Of course, only the final vote on November will tell whether those endorsements mean anything,” Tolman said.

For his part, he said this year is the first time he’s heard his own family members saying they won’t be voting for even one Republican this year.

“I hear it time and time again—because the differences are stark,” he said.

Note: The Warren campaign declined comment for this story. A spokeswoman for Brown did not respond to a request for comment.

Common Ground

SEPTEMBER 2012

Page 7

Will new ‘Shopping Sheet’ help students pay for college?

By Gayle M. Jendzejec, CLU, CFS, CTS, CEP, CCPS, RFC For a while now, colleges have put college calculators on their websites. These calculators are designed to calculate the student’s EFC (Estimated Family Contribution).

Many of these calculators will also give the student an estimation of what they could potentially qualify for in financial aid if the student were to attend the college. Many of these calculators are lacking in accuracy, to say the least.

Now, the U.S. Department of Education has released a new tool, “The Shopping Sheet.” This sheet is supposed to help students understand the costs of higher education before making a college selection.

The “Shopping Sheet,” is supposed to be a nationally standardized financial aid award letter. The sheet will outline or break down the costs associated with a particular school, while tailored to the individual student.

The sheet or financial aid award letter will show the student loan interest rates, scholarship options, housing rent, food, books and veterans benefits on a single form.

According to the Department of Education, “[t]he design is aesthetically similar to the costs sheet displayed in new vehicle windows at auto dealerships, and would be distributed by colleges in their financial aid packages.”

The reason for developing this form, according to the Department of Education is, “colleges and universities already make all of this information available to potential students, but some schools have been criticized for confusing language in awards letters and the difficulty in piecing together the numbers scattered across an abundance of schoolrelated correspondence.”

The Department of Education believes that award letters also lack uniformity in how colleges provide information to the student when it comes to comparing offers from one college to another. “These letters all look different, contain different information, and often do a poor job of making clear how much a student will receive in aid, in grants, in scholarships, and how much they will have to take out in the form of student loans,”

said U.S. Education Secretary Arne Duncan.

The federal government reports that the “average cost of public education rose 15 percent between 2008 and 2010, with two thirds of students owing more than $26,000 in loans upon graduation.”

The Department of Education feels the new “Shopping Sheet” will help individual students understand what they are paying for, after subtracting potential financial aid.

“There are now more than $8.1 billion in defaulted private loans, and even more are in delinquency,” said Richard Cordray of the Consumer Financial Protection Bureau. “The bottom line is that no consumer should take on a large amount of debt without understanding the costs and the risks up front.”

For now, the “Shopping Sheet” is voluntary. “[T]o make the program mandatory for all schools using federal aid would require an act of Congress,” Duncan said.

“Too often, students and families face the daunting task of deciding where to enroll, whether to

write a check, or whether to sign for a student loan, without a clear explanation of what the costs mean, or how these costs compare to other colleges they are considering,” the White House said in a CNNMoney report. “As a result, too many students leave college with debt that they didn’t understand at the time that they entered school. As more schools adopt the sheet, it will be easier for students to comparison shop before making a decision.”

At the annual meeting of the National Association of Student Financial Aid Administrators, many attendees said the future of financial aid is a big concern. Many felt that several financial aid programs could be eliminated or reduced due to the federal government’s debt crisis.

Many aid directors even predicted the end to several financial aid programs.

A number of financial aid administrators also feel that changes in several financial aid programs could be made due to nontraditional approaches of getting a college education, such as massive open online courses or prior

learning assessments.

“The demise of campusbased Perkins loans and Supplemental Educational Opportunity Grants, two programs already targeted for overhaul by both President Obama and his Republican challenger, Mitt Romney, could transpire,” said Joe Paul Case, dean of financial aid at Amherst College. “Next will be federally subsidized student loans for undergraduate students. Congress has nibbled away at subsidized loans in the past year, eliminating them for graduate students, then ending a six-month ‘grace period’ for undergraduates, during which the government paid the interest after students left college.”

Conclusion Colleges, universities, states and our federal government can provide EFC calculators, worksheets, and other informational forms outlining costs, aid, graduation rates or student loan interest rates until they are blue in the face. These calculators and worksheets will NOT reduce the cost of attending a college or university and will NOT prevent the

student from raking up thousands of dollars in student loan debt. The reason these items will not help is because neither the student nor their parents have any control over what they will receive in financial aid.

Our financial aid system has become too complicated to understand. Even a highly educated individual has trouble understanding how the system works.

The reason most individuals uses a tax professional to complete their taxes, is because of our tax system’s complexity. Our financial aid system could be compared to our federal tax laws.

The only way to help families and their children pay for the cost of a college education and to keep the students from amassing thousands of dollars in debt is to teach and educate individuals about financial literacy issues.

Understanding basic personal financial literacy (understanding how to handle money), is the key to staying out of debt and paying for the cost of a college education, not fancy calculators and so-called informational worksheets.

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Page 8

Common Ground

SEPTEMBER 2012

Rep. Cicilline, Rep. Langevin and Sen. Whitehouse work to aid the middle class

By Common Ground staff

Common Ground reached out to Rhode Island Rep. Cicilline, Rep. Langevin, and Sen. Whitehouse, to learn their positions on minimum wage, right to work, job outsourcing, public pensions and unemployment insurance extensions.

Minimum Wage Some people believe that the U.S. minimum wage needs to be increased from its current level of $7.25 an hour to as high as $10.

What’s your position on this—do you support or oppose increasing the federal minimum wage and why?

Cicilline (C): Today, a full-time worker making minimum wage earns about $15,000 annually—an amount that is below the poverty line for a family of three. From about 1970 through to 2010, the value of the U.S. minimum wage failed to keep pace with the cost of living. As a nation, I know that we can do better. I am proudly a co-sponsor of H.R. 6211, the Fair Minimum Wage Act of 2012. This legislation increases the current minimum wage of $7.25 per hour up to $9.80 per hour in three incremental steps of 85-cents per year, and then allows for auto-

matic increases based on inflation.

Langevin (L): I strongly support increasing the federal minimum wage to keep pace with inflation. I was proud to vote for a minimum wage increase in 2007—the first in a decade—and I am currently a co-sponsor of H.R. 6211, the Fair Minimum Wage Act of 2012. This legislation would increase the federal minimum wage in three 85-cent steps over three years, from $7.25 to $9.80 per hour. Following the initial threeyear increase, the rate would be indexed annually to inflation.

Whitehouse (W): Voting for an increase in the federal minimum wage was among the first actions I took as a U.S. Senator in 2007, and I continue to support the notion that anyone who is willing to work hard should be able to earn a living wage.

Right to Work What is your position on ‘right to work’ legislation?

How would you vote on this issue if it came up in the U.S. House of Representatives after the November election?

C: I firmly believe that we must protect the right of workers to engage in collective bargaining thereby ensuring employees and employers are able to negotiate wages, working conditions, and other terms of employment.

I do not support efforts that would undermine longstanding protections in the NLRA and RLA— the framework through which collective bargaining is allowed.

L: I believe right-to-work laws can have a restrictive effect on bargaining between labor and management. Furthermore, I strongly support the right of workers to form unions and believe they benefit from the higher wages, superior benefits,

and better working conditions that often result from union representation. Therefore, I would not support any federal right-to-work legislation should it come before the House for a vote.

W: I have always strongly supported our workers’ right to organize, and I recognize and appreciate the role unions have played in securing important protections for their members. So-called “right to work” legislation could undercut the ability of unions to preserve these protections, and I would vote against any such legislation if it came up in the Senate.

Job Outsourcing The U.S. has lost 50,000 manufacturing facilities and six million jobs to outsourcing. What specific proposals do you support or will you advocate for in order to ‘bring jobs home.’

C: My number one priority is to ensure that good

paying jobs return to Rhode Island. That’s why I have focused on revitalizing our manufacturing base, helping our small businesses succeed, and strengthening the middle class. It is time we start making things in America again, and I have been working on a comprehensive plan to restore Rhode Island and American manufacturing. Part of this effort requires that we ensure our tax and trade policies give Rhode Island manufacturers and workers a fighting chance. To help in the fight, I have introduced the Offshoring Prevention Act (H.R. 2280)—a bill that will end the outrageous tax policies that actually incentivize shipping American jobs overseas. Yet, while many are fighting to even the playing field, the Majority Party continues to protect tax breaks for corporate special interests and companies that send

Homeowners Welcome!

American jobs overseas. I will continue to support and champion legislation like the Bring Jobs Home Act (H.R. 5542), a bill that rewards companies with a 20 percent tax credit for the cost of relocating their business in the United States while also eliminating tax incentives that businesses utilize when shipping jobs overseas.

L: We must ensure that America’s manufacturing sector can continue to play a major role in strengthening our economy and positioning our country as a global economic leader. I am proud to support the House Democrats’ “Make it in America” agenda, which includes legislation to end tax loopholes that reward companies for sending jobs overseas; tax incentives for companies that move jobs and business operations to America from abroad; extension See Q&A page 11

Common Ground

SEPTEMBER 2012

Page 9

George MASON Employees Retirement Board Candidate

YOUR VOICE on the Employees Retirement Board

Dear Fellow State Employees, I am running for the open Active State Employee seat on the RI Retirement Board because I believe that we need an independent voice that represents the interests of ALL state employees.

ALL of us have been negatively impacted by recent pension changes and still have concerns and unanswered questions.

As YOUR REPRESENTATIVE, I promise to be “your seat at the table� when the Retirement Board meets. This means constantly working to: get our questions and phone calls answered while restoring high quality customer service at the Retirement Board.

I will represent the interests of ALL STATE EMPLOYEES! Please help me to try to make a difference by checking my name, GEORGE MASON on your mail-in ballot and returning it between August 14th and August 31st.

Page10

Common Ground

SEPTEMBER 2012

College Corner: Are there millions of unclaimed scholarships available each year?

College Advisors Group, LLC This myth has been circulating in our school systems for years. There are several books written each year touting there are millions of dollars of unclaimed scholarships each year. This is totally false.

I want to put this myth to rest for good.

Nonprofit and forprofit organizations do distribute millions of dollars in scholarship funds each year, based on certain criteria. These funds are distributed to needy and/or talented students. However, the funds are only given out as long as the donor’s investment portfolio is adequate to distribute the funds.

There are scholarships given out by organizations such as Rotary clubs, churches or men/ women’s groups as well.

Between 2001 and 2004, many of these organizations stopped or cut back on these scholarships because of the downturn in the market.

Also, these funds are given out on a very competitive basis and the average high school student who shows no need or talent (academic or otherwise) will not qualify for most of these scholarships.

So, if most of these nonprofit and for-profit organizations are giving out all the money they can, where are all

the millions of dollars in college scholarships going unclaimed?

Most of the unclaimed scholarships come from employee benefit programs under IRS regulation Section 127 Educational Assistance programs.This assistance is mostly available to employees of corporations or small business owners.

Let’s look at what the IRS says about this program: Section 127(c)(1) of the Code provides that “educational assistance” means (A) the payment, by an employer, or expenses incurred by or on behalf of an employee for education of the employee

(including, but not limited to, tuition, fees, and similar payments, books, supplies, and equipment), and (B) the provision, by an employer, of courses of instruction for such employee (including books, supplies, and equipment), but does not include payment for, or the provision of, tools or supplies which may be retained by the employee after completion of a course of instruction, meals, lodging, or transportation.

Accordingly, based on the information provided and representations made, the first $5,250 in educational assistance provided to an employee during a calendar year under the Plan will not be included

in the employee’s gross income pursuant to section 127(a) of the Code.

If the employees do not take advantage of this free money, they go unclaimed. Plus, if the student is not an employee of the company, they cannot receive these college funds.

How about scholarships given out by colleges and universities—are they also going unclaimed?

Most state supported colleges do not have a substantial amount of scholarship funds to help the average college student. Most of the money that is given out by the college’s foundation is normally given

for campus improvements or special needs of the college or university.

The scholarship funds available are normally given to the neediest or the high academic or talented (athletic or musical) students.

Federal and state governments Most of the scholarship/grants given out through state governments are normally based on need only.

Some states like Kentucky, Georgia, South Carolina and Florida have merit scholarships available to students that maintain acceptable grades in high school.

The two most popular See COLLEGE, page 16

Common Ground Q&A cont. from page 8 of the research and development tax credit; additional tools to address China’s undervaluation of its currency; and much more. I also support fair trade requirements in any future free trade agreements to ensure that our workers and manufacturers can operate on a level playing field with their counterparts in other countries.

Whitehouse (W): As the lead sponsor of the Offshoring Prevention Act, I am fighting hard to end a tax policy that rewards companies for sending jobs overseas by allowing them to defer the payment of federal taxes on foreign income. I’m also a cosponsor of the Bring Jobs Home Act, which would disallow companies from deducting the costs associated with moving jobs overseas, and provide a tax incentive for bringing jobs back home.

I will continue to be the strongest advocate possible for putting Rhode Island manufacturers back on an even playing field.

Public Pensions Some people, like Senator Orrin Hatch, have said that state public pension funding issues need to be addressed through legislation at the federal level. Do you agree or disagree with this and why?

Cicilline (C): The negotiating, legislating and decision-making that are necessary in order to reform our state and local pensions must take place at the state and local level. It’s at these levels of government where original agreements and retirement benefits were established. State and local stakeholders must be empowered to address pension funding issues and strengthen retirement systems in the long

term.

Langevin (L): Many states and municipalities are struggling with significant pension funding issues, and this crisis must be dealt with to ensure both fiscal solvency for state and local governments, and retirement security for current and future retirees. However, I believe that individual states and localities, rather than the federal government, are in the best position to tailor solutions to their specific needs and circumstances.

I do not believe Congress should prescribe one particular solution through federal legislation.

W: State leaders both in government and in the labor community have just gone through a difficult debate on this issue, and have had to make some tough decisions. While changes may be required so pensions remain sol-

vent for current and future retirees, I continue to believe that defined-benefit plans can play a critical role in the retirement income of both public and private-sector employees.

I strongly disagree with Senator Hatch’s contention that “defined benefit plans are inappropriate for state and local governments” and would fight any federal legislation to weaken or eliminate these pensions. While the current deficit debate in Washington may make the prospect of additional federal assistance to our states and cities unlikely, I will continue to support programs that help ease our local budget shortfalls, as I did with my support of the Recovery Act. Unemployment Insurance Extension Would you support or oppose any further extensions

SEPTEMBER 2012 to unemployment insurance and why? If you oppose, what alternative measures do you support to help those who are unemployed?

C: In the wake of one of the worst economic downturns in our nation’s history, many Rhode Islanders continue to face significant challenges in finding work. While I continue to fight for legislation that will help strengthen our economy and create jobs in the near-term and the long run, I firmly believe we must continue to provide unemployment insurance benefits that help Rhode Island families make ends meet in these difficult times.

L: I have strongly supported several extensions to unemployment insurance to help workers and their families make it through these difficult economic times. Most

Page 11

recently, in February 2012, I voted to extend long-term unemployment insurance through the end of this year. With millions of unemployed workers still struggling, I would certainly support efforts to further extend unemployment insurance when the current benefits expire.

W: Both Senator Reed and I have continually fought for extensions of long-term unemployment benefits for Rhode Islanders still looking for work. We have succeeded on several occasions to secure these extensions, most recently in February 2012. I recognize that many Rhode Islanders are out of work through no fault of their own, and I’ll continue to support initiatives to help those who are struggling to make ends meet.

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Common Ground

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Common Ground

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Making it in America

By David Cicilline America, and especially Rhode Island, has a proud tradition of making things. We built the world’s strongest middle class because, in large part, so much of what made the world run was built in America. For many Rhode Islanders, our tradition of making things here has been a source of opportunity and a source of pride.

And today, with millions still out of work, it’s time to draw from that tradition to build a positive, job-creating agenda.

First, we have some real opportunity to strengthen and expand the manufacturing sector of our economy in Rhode Island – helping

to create well-paying and reliable jobs. Manufacturing is central to our entire economy, and as the Manufacturing Institute tells us, this sector on average pays higher wages and traditionally stimulates more economic activity than other sectors. Making things and being a leader in producing and selling our goods all over the world is a central part of America’s economic history and our nation’s future.

That’s why I have been such an active and vocal champion of the House Democrats’ Make It In America Agenda, which includes legislation I have introduced,

the Make It In America Block Grant Program Act. The legislation that forms this agenda is premised on the idea that when we make things in America, more middleclass families will be able to make it in America.

The future of making things in America is important because our international competitors, countries like Germany and China, are ramping up investments in their own growth and infrastructure. They’re doing their best to ensure that the industries and jobs of the future will be created there, not here in the United States. When our competitors outdo us in manufacturing

products and building a well-prepared workforce, innovation and opportunity migrate overseas. This migration of opportunity can be stopped in its tracks if Congress makes a concerted and proactive effort to pass the kind of common sense legislation that will strengthen the middle class, manufacturers and men and women in the building

trades, small businesses and our economy as a whole.

My comprehensive plan for strengthening Rhode Island’s economy takes seriously our country’s need to invest in manufacturing, innovation, infrastructure and a well-prepared workforce. This plan is rooted in the promise I made to introduce my Make it in America Block Grant

Act – legislation to support and strengthen our area manufacturers, once bustling in the costume jewelry and textile industries, but who now need support in adapting to compete in the new economy – a hightech, alternative energy economy.

The plan also requires the development of a national manufacturing See AMERICA, page 20

Page 16

Common Ground

SEPTEMBER 2012

COLLEGE cont. from page 10 need-based grants that are available through the federal government are the Pell Grant and SEOG (Supplemental Educational Opportunity Grant) programs.

The Pell Grant of the past would cover a substantial amount of college expenses.

However, this grant program has not kept pace with the rising cost of a college education.

Another thing most families do not understand is that a student cannot qualify for the SEOG grant unless they qualify for the Pell Grant first.

If a student were to attend a private college or university, there is a high likelihood they would receive some scholarship/grant money.

Private colleges receive little or no support from state

taxing authorities. Therefore, they charge more for their education compared to state-supported colleges and universities.

Most private colleges need to compete for students with state-supported colleges. In order to compete (based on cost), many will normally offer a qualified student scholarship program to help pay for the higher cost of the education.

The amount of the scholarship will vary depending on the student’s financial need and/or the academic or athletic ability of the student.

If a student has a high financial need and the student is not an above-average student academically, some colleges may not offer admission or offer a smaller

scholarship to discourage the student from attending due to the high need for financial assistance.

Many private colleges like to advertise they are “need blind” and boast they always provide 100 percent of financial need to all “admitted” students. However, if the family has a very high need, the student may not be admitted due to this high need.

To find out how to qualify for more need-based or merit scholarship money, call 401821-0080 or e-mail: gayle@ collegeadvisorsgroup.com for your FREE phone or in-person consulation. Visit www.collegeadvisorsgroup.com for more information.

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Common Ground

SEPTEMBER 2012

Page 17

After the layoffs: on the front lines at Department of Labor and Training

By Common Ground Staff It’s perhaps one of the sad ironies of the Great Recession: even at the state agency charged with helping the unemployed, there were deep cutbacks and layoffs this summer.

The result is added stress on a system that was already weighed down by the workload, extending wait times even longer and overextending those employees remaining at the Department of Labor and Training’s unemployment call center, according to Lynn Tipton, president of Service Employees International Union (SEIU) Local 401.

“We made it clear the impact would be severe,” Tipton said, referring to wait times. “We went from manageable to off the charts.”

In late July, the Department of Labor and Training (DLT ) laid off 67 employees in its unemployment division: 57 were union members and 10 were management. (Seven laid off employees were later recalled back to their positions.)

Contrary to what Governor Lincoln Chafee suggested earlier this summer—that the layoffs were a good sign that unemployment was going down—Tipton

said the issue is lack of funding, not a declining call volume. “It is absolutely not for lack of work,” she said. “They’re flooded up there.”

She said wait times on average were 30 minutes before the layoffs. Now, they are as high as two and a half hours, Tipton says. Tipton’s own survey shows that wait times range from 28 minutes to at least 99 minutes.

Department spokeswoman Laura Hart said such wait times of as long as two and a half hours are possible. According to her figures, the average is 40 to 50 minutes on the phone last week.

“While unfortunate, it’s not unexpected,” Hart said.

It’s not just unemployed customers who are suffering though.

“The stress levels increased,” Tipton said.

“The stress levels and the expectations of the worker—the expectations of what the worker would put out in a day.”

Worker: it was bad before the layoffs Just how extreme the working conditions may have gotten is indicated by the experience of one laid off call center worker who says wait times were already pretty bad before the layoffs. “I came in during a period

of a perfect storm,” said Jonathan Jacobs, who was hired in 2010 as a customer service representative at the DLT call center for unemployment claims.

He was among a round of hirings meant to deal with the tide of claims coming in after the recession hit and, after they had been trained, wait times fell from three or three and a half hours to about 30 minutes.

But Jacobs said customers have still had difficulty getting through.

He recalled one individual who had initially had his claim denied, gone through three rounds of appeals over an eight to nine-month period and ultimately won in the Sixth District Court, which said he was entitled to back pay from the state unemployment fund. When the check never came, the man attempted call into the center where Jacobs worked. “The burden fell on him, which he didn’t realize, to contact us that that decision had been made,” Jacobs said.

After weeks of calling and not getting through, the man finally walked into the call center and refused to leave until someone helped him out in person. Jacobs was tasked by his manager to defuse the situation. “It’s

not just cut and dried,” Jacobs said. “It’s not just data entry.”

It may be an extreme example, but Jacobs says cases with such levels of complexity are common at the call center.

Now, after the layoffs, he predicts there will be a backup of people on the line and mistakes will be made in cases.

And now, Jacobs is experiencing it all as a customer. After taking on some part-time work, he has had to re-file his unemployment claim.

To help compensate for the reduced staff, the department has set up an online system to initially process claims—before

customers are connected with someone live.

Jacobs says it’s now virtually impossible to get through over the phone, and, after submitting his online forms, he says it took ten days for someone at the call center to get back to him.

Union: state could have found the money Tipton says the state could—and should have—found a way to fund those vitally needed jobs at the call center.

“I understand there is a money problem but I also know there is a way to allocate and re-allocate,” she said.

“A lot of people ask

me, ‘What do you expect the state to do?” she added. “It’s not my job to find the money.”

The state did, after all, somehow find the money to fill vacancies in senior management positions—upwards of 20 spots, according to Tipton.

Asked to respond, DLT spokeswoman Laura Hart said the issue is federal, not state, funding.

“If we had the money would we keep these people on? Absolutely,” she said. “This is not about state funding. The answer lies in Washington.”

Page 18

Common Ground

SEPTEMBER 2012

How Romney and Ryan would approach senior programs By the Alliance for Retired Americans Now that Mitt Romney has named Paul Ryan as his running mate on the GOP presidential ticket, it’s worthwhile to revisit exactly what Ryan proposed doing to Medicare, Social Security and other programs that affect seniors in his budget proposal. If the GOP wins the presidential election, expect to see more of the same.

On March 20, 2012, House Budget Committee Chairman Paul Ryan (R-WI) released the GOP budget proposal for 2013. As feared, it is a plan that would harm the middle class while providing a windfall for millionaires. Ryan’s bud-

get makes deep, lasting cuts to many domestic programs, including Medicare, Medicaid, nutrition and housing programs. Meanwhile, it increases defense spending by $228 billion through 2022. The Ryan budget would also repeal the Affordable Care Act (ACA), leaving 34 million people without health insurance coverage.

While the budget gives the appearance of eliminating certain tax breaks for the wealthy, it then uses those very savings to fund other tax cuts.

Most alarming perhaps are its proposals to end Medicare as we know it.

And while his plans for

Social Security are not as direct, don’t be fooled: Ryan is still on a mission to privatize Social Security in ways that would leave the program and its critical Trust Fund on life support. These proposals spell danger for the millions who rely on them and for the millions who

are counting on them to be there in the future.

Ryan’s plan ends Medicare as we know it Voucherizes Medicare: Ryan’s 2013 budget replaces Medicare’s guaranteed benefits with a “premium support” payment that beneficiaries

would use towards the cost of private insurance or traditional Medicare starting in 2023. The amount of this voucher would be based on the second cheapest available plan in the area. There is no guarantee that this payment would actually cover enough of a premium’s cost to actually make health care affordable. In fact, it is more than likely that beneficiaries would be left with increased out-of-pocket costs, because Ryan’s plan caps the amount of the voucher at GDP +0.5 percent, far below the growth in health insurance costs in recent years. In fact, the Con-

gressional Budget Office has estimates that new beneficiaries could pay more than $1,200 more by 2030 and more than $5,900 more by 2050 under this scenario.

Threatens Medicare’s Vitality: Medicare works for many reasons, one of them being that its volume of beneficiaries gives it better bargaining power when negotiating rates with providers. This feature keeps costs down for both the government and the beneficiary. Under the Ryan 2013 plan, private insurers would cherry pick the younger, healthier and less expensive beneficiaries. Leaving See SENIOR, page 19

Common Ground

SEPTEMBER 2012

Page 19

SENIOR cont. from page 18 Medicare with a disproportionate share of the oldest, sickest and costliest beneficiaries would drive up costs for the program and set it on an unsustainable path.

Raises Medicare Eligibility Age to 67: Ryan’s instructions to the Congressional Budget Office accompanying the FY 2013 budget included a proposal that would raise the Medicare eligibility age from 65 to 67 over 12 years, beginning in 2023 for people born in 1958. This would increase out-of-pocket health care costs by $4,300 a year for nearly one million indi-

viduals ages 65 and 66. It is worth noting that this population faces the most difficulty in obtaining insurance due to chronic health conditions. Because Ryan’s plan repeals the ACA, these seniors would be left uninsured or would have to get a job that provides health insurance. As a fact, people over 55 have the most difficulty finding new employment.

Ryan’s plan to gut Medicaid Ryan’s 2013 budget proposal would block grant Medicaid, shifting costs onto already cashstrapped states by forcing

them to provide funding or cut Medicaid benefits as costs increase. This would be especially devastating to older Americans and their families, as Medicaid is currently the largest provider of long-term care coverage for seniors.

Ryan’s Plan to Privatize and Cut Social Security The Ryan 2013 budget speaks about its plans for Social Security in intentionally general terms.

Outside of calling for a “bipartisan path forward” and establishing a fasttrack procedure designed to force cuts to Social Security, there are not a lot

of details. Of course, as Chairman of the House Budget Committee, he would have a say in charting this yet unknown “bipartisan” path. What is known, however, is that if his proposals are anything like what he included in his 2010 “Roadmap for America’s Future,” Social Security would certainly be on the road to ruins.

Privatizes Social Security: Under the Ryan Roadmap, Americans aged 55 and younger would be allowed to invest a third of their Social Security contribution into a private account. While there would be a one-time pay-

ment of $2 billion to the Trust Fund to ensure continued benefits for those 55-plus and those not participating, it is unclear what would happen if that amount turns out to be insufficient.

Cuts Social Security Benefits: Under current law, new retirees get benefits based on the growth in wages. Under the Ryan Roadmap, initial benefits would be calculated based on the growth in prices, which over time grow at a slower rate. This portion would impact 70 percent of beneficiaries and would cut benefits by roughly 16 percent for the average

new retiree in 2050 and 28 percent in 2080.

Opposed to Raising the Earnings Cap: Ryan dismisses the idea of raising the earnings cap, inaccurately arguing that doing so would have a “limited direct impact on the solvency of the program.”

According to the Social Security Actuary, however, lifting the cap and adjusting benefits would address half of the Social Security shortfall. Likewise, if all earnings were subject to the payroll tax, but benefits were not adjusted, the Social Security Trust Fund would remain solvent for the next 75 years.

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AMERICA cont. from page 15 strategy and expands and makes permanent the research and development tax credit, which gives businesses an incentive to invest in the technologies that lead to new products, new industries, and new jobs. If we want to turn around the trend of countries like China overtaking us in the manufacturing of innovative products, we have to recommit ourselves to investing in research and science.

The manufacturing plan also puts in place policies to keep China and other competitors from cheating in the global marketplace by making sure everyone is trading by the same rules. It also allows for the creation of Manufacturing Reinvestment

Accounts, which provide tax incentives for manufacturers to invest in retooling projects or workforce training. The plan also harnesses the power of the private sector – calling for the creation of a National Infrastructure Bank – an initiative that leverages private investment and encourages public-private partnerships to finance the construction and rehabilitation of roads, bridges, ports, water, transit and information systems so we can quickly and efficiently move goods, services and information to successfully compete in the 21st-century economy.

There’s a reason why business leaders and labor leaders alike support a Make It In America

agenda: because, wherever we are on the political spectrum, Americans can agree on the importance of a positive jobs agenda, one based on out-innovating, out-educating and out-building our competitors. In order to do so, we can draw on our proud tradition of making things, and the energy, the hopefulness and the competitive drive that built our middle class. Those values are still with us—and they matter more than ever.

U.S. Congressman David N. Cicilline Represents the First Congressional District of Rhode Island.

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Common Ground

SEPTEMBER 2012

Go fishing: The health benefits of eating sardines

By Joy Feldman, NC, JD Sardines. This humble little fish makes my top ten healthiest food list.

But, I know what you are thinking. Yuck, sardines!

But wait, hear me out.

Popularized by Napoleon and named after the Italian island of Sardinia, these small fish pack in the nutritional benefits.

Health food in a can and a great food for airplane travelers, sardines are a prime source of protein and vitamin B12 and contain high levels of tryptophan. They are also a great source of selenium, vitamin D, omega-3 fatty acids, calcium and phosphorus. And this is especially important to note, being that they’re

so close to the bottom of the food chain, sardines contain lower levels of toxins (such as mercury and PCBs) than many other types of larger fish.

Here are six important health benefits of sardines.

Cardiovascular Benefits: Sardines are rich in numerous nutrients that have been found to support cardiovascular health. They are one of the most concentrated sources of the omega-3 fatty acids EPA and DHA, which have been found to lower triglycerides and cholesterol levels. Sardines are an excellent source of vitamin B12, which pro-

motes cardiovascular health as it is intricately tied to keeping levels of homocysteine in balance; homocysteine can damage artery walls, with elevated levels being a risk factor for atherosclerosis.

Bones: An excellent source of bone-building calcium, these silver-colored fish contain surprisingly high concentrations of vitamin D, a nutrient not so readily available in the diet. Vitamin D prevents unwanted inflammation and helps bones in their absorption of calcium. Sardines are a great source of phosphorus too, a key mineral in strengthening the bone matrix. Recent studies

also show that the omega-3s found in abundance in sardines support joint cartilage and help regulate and stabilize the balance of collagen and minerals in bone and surrounding tissue.

Cancer: For many years, researchers have known that vitamin D participates in the regulation of cell activity. Because cell cycles play such a key role in the development of cancer, optimal vitamin D intake may turn out to play a significant role in the prevention of various types of cancer.

Selenium, of which sardines are also a very good source, is a mineral with powerful antioxidant

activity, whose dietary intake has been associated with reduced risk of cancer. The omega-3s fatty acids found in sardines have also been connected to decreased risk for several types of cancer, including colorectal cancer, prostate cancer and breast cancer.

Eye Health: The high levels of omega-3s essential fatty acids in sardines offer protection against macular degeneration of the eye, a condition in which fine vision deteriorates, resulting in central vision loss. (It’s the leading cause of blindness in people over 50).

Skin and Hair: The omega-3s found in sea-

Now before you turn your nose up at this little fish, I have three fresh takes on sardines that are bound to have you hooked. Start with Wild Sardines, packed in olive oil (drained).

Sardine Tacos

Toast four corn tortillas until lightly charred Add sardines Top with a squeeze of lime 1/2 cup shredded cabbage 1/4 cup of fresh salsa 2 Tbsp cilantro leaves Season with sea salt

Creamy Sardine Salad

Stir together 1/4 cup Greek Yogurt 1 diced celery stalk 2 tsp whole grain mustard Fold in sardines Toss 2 cups greens with 1 tsp each Lemon juice and olive oil Top with sardine salad

Sardines on Rye

Spread four slices of toasted rye bread with 1/4 cup of cream cheese Top with sardines 1/4 thinly sliced red onion 2 tbsp of fresh dill

food lock moisture into skin cells, encouraging the production of strong collagen and elastin fibers, which contribute to more youthful looking skin. Omega-3s have also been known to alleviate skin blemishes and maintain good hair luster.

Joy Feldman is a nutritional consultant, writer and lecturer. She is the author of Joyful Cooking in the Pursuit of Good Health and Is Your Hair Made of Donuts? Learn more at www.joyfeldman. com and www.isyourhairmadeofdonuts.com.

Common Ground

SEPTEMBER 2012

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