Moore: Elorza Shows Bravery by Taking on Firefighters

Monday, May 25, 2015

 

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For far too long, the attitude around here has been, don't rock the boat. Go along to get along. Beware of powerful special interest groups.

That’s a great method for politicians to get elected and reelected. But that approach is what's led us to a stagnant Rhode Island that has among the highest tax burdens in the nation, which scares away prospective businesses from locating here and discourages the businesses we do have from expanding here, yet still doesn't have enough money to build beautiful new schools, or fix our crumbling roads and bridges.

That revolting lack of courage from Rhode Island's political leaders at all levels has stunted Rhode Island from reaching its full potential.

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That's why the single most encouraging day of Mayor Jorge Elorza's short tenure occurred last Thursday, when he announced that he planned to rearrange the firefighter platoons from 4 to 3 per day. In doing so, firefighters would work shifts of 52-hours per week instead of their current 40-hour per week schedule.

Making a Tough Decision

The reform would save taxpayers millions an estimated $5 million per year. That’s because the shorter number of platoons would reduce the overtime and "callback" expenditures in the fire department. In doing so, Elorza has sent a loud and clear message to the general public that he isn't afraid to make difficult decisions and take on a difficult fight if he believes the decision will benefit the City of Providence as a whole.

Earlier this year, the town manager of North Kingstown, Mike Embury, followed a similar approach after finding that most other fire departments throughout the country operate on a similar schedule. The move will save his town about $2 million per year. 

Naturally, there's a bill backed by the state firefighters association in the state legislature that would make the reform Elorza proposes illegal. Also, the Providence Firefighters Union opposes the measure, and has vowed to fight the matter all the way to court if they must. 

Look: nobody wants to see the firefighters work longer hours for the same pay. But Elorza has said that he's more than willing, and actually prefers to negotiate a settlement with the union that would achieve the savings he needs to balance the city budget.

Elorza Stood Up For Taxpayers

There's this nonsensical notion out there that people who want to make the government more efficient somehow dislike unions or city workers. That's nonsense. The question is not what the taxpayers want to pay firefighters. Of course, almost everyone wants to pay the firefighters, the heroes that they are, as much as possible. (I personally think every soldier fighting our wars on foreign soil should be paid well in excess of $100,000 per year, at least.) Here's the problem: we can only afford so much.

And let's keep it real--if all of the firefighters quit as a result of Elorza's proposal, there would be at least 10 people coming forward to take the job of each person that quit. That's because the reality for most Rhode Islanders is that the job security, excellent benefits, and good pay of working for the City of Providence is hard to come by, and rightly valued.

Taking the Long View

But all of that is less valuable if the city is constantly facing a structural deficit. The sad reality is the city of Providence is drowning in red ink as far as the eye can see. Elorza predicts persistent structural deficits throughout his tenure that will reach almost $20 million according to a study he's commissioned. It will prevent him from making investments in things the city needs to become economically competitive--like schools and infrastructure.

And that fact doesn't even touch upon the staggering long-term financial liabilities of the pension and other post employment benefits (OPEB) that Providence has promised its retirees.

Be aware that it would be much easier for Elorza to continue to kick the can down the road, explode Providence's liabilities even further, raise taxes even more (maybe Providence would surpass Central Falls and become the state’s highest taxed community) and rely on one-time creative fixes to balance city budgets for years to come. That however, would only exacerbate the city's financial problems in the long run.

None of this is to imply that this reform will be some great panacea that solves all of Providence problems. To the contrary: everyone in Providence, not just firefighters, must share in the burden of righting the city’s financial ship.

Fortunately however, Elorza showed, at least last Thursday, that he's willing to stand up for taxpayers and take the long view of city finances. For that, I give Elorza credit. And so should you.

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Russell Moore has worked on both sides of the desk in Rhode Island media, both for newspapers and on political campaigns. Send him email at [email protected]. Follow him on twitter @russmoore713.

 

Related Slideshow: 10 Questions Elorza Has to Answer as Mayor


 

 

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Department staffing?

Economic Development. Chief of Staff. Policy Director. Who will Elorza place in these key posts? Will former opponent Brett Smiley play a role? Will Elorza keep on any key Taveras staffers?

There are multiple questions in this category, and Elorza should be making moves shortly as to what his administration will look like.  Will former opponent Michael Solomon be part of the team?  Look to see. 

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Budget deficit?

Opponent Buddy Cianci famously said during the campaign that if there was a budget surplus in the City of Providence, he'd drop out of the race.

Councilman Terry Hassett told GoLocal that a close watch on the budget would be necessary in the coming year, as a "deficit exists." So how will Elorza tackle the fiscal challenge?  He's talked about looking at city government department by department.  Where will he make cuts if necessary?  Or will Providence see taxes being raised?

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Police force?

The Providence Police Department recently graduated a new class of officers from its academy -- but council members to community leaders are pointing out the numbers are still below even minimum staffing levels.

Will Elorza look to push through a new academy when he takes office?And how will he handle issues surrounding the department -- which following the most recent graduation, was at the center of intense public scrutiny?

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Car Tax Changes?

Elorza said during the campaign that he wants to raise the car tax exemption from where it stands at $1,000 back to where it once was at $6,000.  

So how's he going to make this happen?  He teamed with Raimondo at the Olneyville press conference to pledge that if elected they would work in tandem make it possible.  Will Providence see more aid from the state to fill the tax revenue hole?  
 

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Tax Breaks?

Tax stabilization agreements (TSAs) between developers and the City of Providence came under close scrutiny in 2014, as a report from City Auditor Matt Clarkin showed that the city wasn't collecting nearly what it was owed on the properties that cut special tax deals with the city in the name of development and job creation.  

One council member -- Sabina Matos -- proposed putting a freeze on new TSAs until a full review was done, and a standardized process was put in place.  Will Elorza continue to use TSAs as a tool in the economic toolbox? 
 

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195 development?

The 195 land, while in the hands of the State -- and 195 Commission, rests squarely in Providence, and as such, its redevelopment will have a profound impact on the economic future of the city.  

How active will Elorza be in the process of courting businesses to put their stake in the ground and be part of the urban renewal process in Providence? Lots of work is already underway with the roads and infrastructure -- how soon will shovels be the ground for tenants?

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Nonprofit relations?

As part of his administration, Mayor Angel Taveras ushered through historic PILOT (payment-lieu-of-taxes) agreements with the city's nonprofits, in order to obtain some fiscal relief from the tax-exempt institutions at t time when the city desperately needed it.  

Will Mayor Elorza look to go back to the colleges, universities, and hospitals should the city find itself in difficult circumstances once again? 

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Jobs?

Elorza's jobs plan as proposed during the campaign included such components a supporting entrepreneurs, women, and minority-owned businesses, and promoting a mentoring program with the city's colleges and universities.  

One of Elorza's proposals included the doubling of Providence's exports over the next five years.  How is Elorza going to make this happen?  He mentioned used cars and design exports during debates on the campaign trail.  What policy moves will Elorza unveil to make this prophecy a reality?  And where will Providence see the jobs?

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School success?

Central to Elorza's education plan is the concept of community schools, so that the buildings are utilized long after the school day for increased learning and recreation opportunities for the surrounding neighborhoods.

Elorza has called for less emphasis on standardized learning, and has proposed an investment in technology in the classrooms.  Where will Elorza find the money to achieve these goals -- and will they translate into academic success?

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One Providence?

In the next two weeks, Elorza will be making staffing decisions that will set the tone for the new administration.  Elorza won overwhelmingly on the East Side -- will he cull his talent from the 02906, or will he reach out to leaders across the city to comprise an administration reflective of the entire city's population?  How will Elorza achieve the vision of "One Providence?"

 

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