Wednesday, June 20, 2012

Selling Out Cities

New York Times, via Ritholtz:
The state has named a budget commission to grapple with Woonsocket’s money woes. Ultimately, though, a receiver may have to be appointed — which is to say, a person not beholden to the voters, who would nonetheless have the power to abrogate union contracts and do whatever else he or she deems necessary to erase the deficit. Incredibly, the two Woonsocket legislators have pushed for a receiver, despite the pain that it would likely bring their city.
Or maybe it’s not so incredible. It turns out that one of them, Jon Brien, is also on the national board of the American Legislative Exchange Council, or ALEC. Although ALEC is probably best known for its support of the Stand Your Ground law in Florida, the conservative group has a very clear agenda for dealing with state budgets. It wants to shrink them. Although Brien has denied that he is applying the ALEC philosophy to his small city, it looks, in fact, as if that’s exactly what he is doing. It’s not pretty.
Woonsocket’s problems stem from the decision of Rhode Island’s previous governor, a Republican named Don Carcieri, to balance the state’s budget by cutting state aid to the cities. All of Rhode Island’s poorer cities had become dependent on that aid, so when the economy soured, they essentially ran out of money. Providence had to renegotiate the retirement benefits of its municipal workers. Central Falls actually sought bankruptcy court protection — and a receiver was put in charge of its finances. As for Woonsocket, its current difficulties came to light last fall when the school district revealed a huge, unanticipated budget shortfall.
ALEC is becoming a Koch Brothers type boogeyman for the left, but while the hype might be a little extreme, the underlying point is pretty close.  These folks are out to put much more money in their pockets, and everybody else  be damned.  Hopefully it bites them in the ass.  It will definitely bite rural folks who support their agenda right in the ass.  One thing about Republicans, they'll cut taxes whenever they can, but if the economy goes in the crapper, taxes are never allowed to return to where they used to be.  Then, they say, hey look, budget deficit, we have to cut spending.  Assholes.

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