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A matter of choices

01:00 AM EDT on Friday, October 13, 2006

Rhode Island spends significantly more per person on government than the national average ($7,077 vs. $6,493, in 2004, the most recent numbers available). It's important to ask where the dollars are going and whether the public is getting its money's worth.

Is it really a wise investment, for example, to spend much more than the average state on welfare and fire protection, both of which have powerful lobbies, while skimping on higher education -- an engine of economic growth -- and leaving the highways and bridges in poor condition?

Should Rhode Island be content with poorly performing public schools when it is one of America's leaders (eighth per capita) in spending on elementary and secondary education?

Should the Ocean State, which depends heavily on tourism and prides itself on maintaining a high quality of life, be satisfied to rank a lowly 42nd in per-capita spending on parks and recreation?

A new study by the Rhode Island Public Expenditure Council, called "How Rhode Island's State and Local Expenditures Compare -- 2006 Edition," offers policymakers and the public some hard numbers and comparisons with other states. The statistics should sound some alarm bells.

Rhode Island is an outlier in spending on welfare, for example. According to 2004 statistics, the Ocean State spent $150 per capita in cash assistance for welfare recipients -- third highest in America -- compared with the $71 national average. Meanwhile, it ranked fourth in Medicaid vendor spending.

While the state rightly prides itself on its compassion toward the less fortunate, political leaders must also confront reality, and consider whether the current programs are drawing large numbers of poor people into Rhode Island. They must also ask whether the programs perform the important task of moving capable people off welfare and into a much better life of self-sufficiency.

Similarly, Rhode Island spent more on fire protection -- $206 per capita -- than any other state. The national average was less than half that, $97. Surely, that reflects, at least in part, the remarkable political clout of the state's firefighters unions, which have obtained unusually good (and expensive) benefits.

On the short end of the stick was infrastructure. Rhode Island ranked 46th in per-capita highway spending. To some extent that may reflect the state's 50th rank in size. But previous surveys also revealed the Ocean State was among the nation's worst in percentage of roads in poor condition, and percentage of bridges that were structurally deficient. Surely, good roads and safe bridges are among the basics of government, and the Ocean State should be doing better.

The state also ranked 46th in per-capita spending on public higher education. Rhode Island's economy depends on vibrant colleges that provide opportunities to bright and ambitious young people of all social classes.

In short, there is fodder here for sober reflection about how Rhode Island is being governed. Since tax dollars are limited -- even in a high-tax state -- political leaders must make careful choices.

They need to look at reforming entitlement programs. They should focus more on the interests of the people receiving the services, especially public-school students, and less on the demands of powerful special interests delivering the services. And they should invest more on higher education and crucial infrastructure.

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