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Donald Hawthorne: Derailing the R.I. gravy train

08:05 AM EST on Wednesday, March 24, 2004

THE WHINING from politicians, bureaucrats and unions reacting to Governor Carcieri's proposed $8 million reduction in state funding for local education is insufferable. One mayor even proclaimed that we now have an education-funding crisis.

The reactions will probably only get worse. Watch next for threats to drop sports, arts and honors programs, or reduce the number of teachers.

Here are the facts:

In the last three years, state spending in Rhode Island has exceeded revenues by $582 million. We have covered the deficit by spending all of our surplus tobacco-settlement and federal-grant money -- each a one-time source of funds. With the state facing a $190 million deficit for next year, the free ride is over.

Governor Carcieri's budget proposal recognizes this reality. In that context, he has proposed reducing total state aid to local education from $638 million to $630 million, a 1.25-percent reduction. Some funding crisis!

The $630 million proposal needs to be viewed with the proper perspective of time, too. State aid has climbed from $480 million to $638 million in just the last five years.

The real debate should be about why state aid increased by $158 million, or 33 percent -- nearly twice the rate of increase in taxpayers' personal incomes. You can thank outrageous demands by public employees and the spineless responses by politicians and bureaucrats for such irresponsible increases.

Let's put these large numbers in the context of a family budget. Suppose your income was $45,000 a year. A 33-percent increase means your salary grew to $60,000. Few families saw that kind of increase during the last five years.

After receiving that huge salary increase, you are now being asked to take a 1.25-percent reduction. That means finding a way to live on $59,250 in the next year. Families make such adjustments all the time to live within their means. Government should be able to do so, too.

Governor Carcieri stated that the problem with public education in Rhode Island is not insufficient funding. Our teachers are the 7th-highest paid among the 50 states; Rhode Island's per-pupil spending of $10,500 is 25 percent above the national average, and the 9th highest; and academic performance is near the bottom for the Northeast region alone.

Why do we spend so many dollars for such poor performance? As a former School Committee member in East Greenwich, I'll offer examples of why our problem is overspending, and not a lack of funding.

When the School Committee approved the hiring of Supt. Michael Jolin, in the fall of 2002, major employment terms were discussed by the committee: an annual salary of $127,000; standard health-insurance benefits; and a three-year contract.

Somehow, Mr. Jolin was given an automatic rolling three-year employment contract without the entire committee's either discussing or approving such a provision. Unless he voluntarily resigns, it will cost East Greenwich taxpayers up to $400,000 of salary, plus three years of health insurance with no co-payments, to remove him.

The School Committee also neither discussed nor approved the following terms in his contract:

-- 25 vacation days and 30 sick days from his first day of employment

-- 25 vacation days every year thereafter

-- Conversion of up to 15 unused vacation days into cash every year

-- Unlimited number of accrued vacation days

-- Accrual of 15 sick days per year, up to a maximum of 120 days

-- An additional $7,000 to $10,000 per year put into an annuity

-- Up to one year's salary if he is fired for just cause (e.g., after committing a crime).

Unfortunately for taxpaying families, Mr. Jolin has lots of company on the East Greenwich gravy train. In his first 90 days on the job, the School Committee voted to extend the teachers'-union contract by one year. He provided no cost analysis to the committee. It was only later determined that the extension awarded 9- to 12-percent salary increases to 9 of the 10 job grades, plus zero health-insurance co-payments, all for the fifth consecutive year.

Mr. Jolin also presented an 11.4-percent one-year salary increase for the director of business to the newly seated School Committee in December 2002 as a done deal, without disclosing that the previous School Committee, a month earlier, had said no to his proposed 8-percent increase.

Simultaneously, Mr. Jolin presented as a done deal to the newly seated School Committee 7-percent one-year salary increases for all five principals.

Politicians, bureaucrats and unions know that single parents, retirees, unemployed people and working families pay for these outrageous salaries and benefits with an ever-increasing tax burden. The politicians and their allies do not care.

As you hear them whine, remember that the politicians, bureaucrats and unions have no incentive to change their behavior, because they suffer no consequences when they spend our tax dollars irresponsibly.

We must never forget, though, that their behavior has an adverse impact on working people -- one that is direct and tangible. It means less money for food, clothes, heating oil, medical care, car repairs, college education and retirement.

Rhode Island has spending and performance problems, not a funding crisis. We cannot afford to continue overpaying for under-performance.

Donald Hawthorne is a former member of the East Greenwich School Committee.

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