RIPEC illustrates why government meddling in education is to be avoided.

By Justin Katz | July 18, 2023 |
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Yellow schoolbus.

A crucial bit of advice in our quick-communication, social-media age is to force yourself to leave space between reading something that bothers you and responding to it.  Usually, this tactic will help you avoid responding heatedly to things that simply don’t matter that much.  Sometimes, you’ll avoid unforced interpersonal errors.  But sometimes, giving things further thought will lead to the conclusion that they’re worse than you’d originally thought.

A tweet from Michael DiBiase, director of the “business-backed” Rhode Island Public Expenditures Council (RIPEC) is in the third category for me:

Troubling results for state ed funding in terms of equity. Wealthy districts received the highest percentage per pupil increases. Urban core districts are not even in the top 8. Providence is 24th highest and received less than the statewide average percentage increase.

My initial thought is: What’s the point of having a formula if what you really want is to ensure maximum redistribution?  The state expended a great deal of cost and effort creating a formula that already took into account (with varying degrees of directness) things like the wealth of the community and the proportion of students requiring enhanced services.  If the point is simply that poorer districts or those with more minority students must always see the largest increases, then why bother with the formula?

If that isn’t the point, then the appropriate response to RIPEC’s finding — especially for policy analysts — should be to ask what’s going on, here.

Doing so will immediately draw one’s attention to RIPEC’s data-visualization for the nominal change, rather than the percentage change.  For one thing, a chart of the actual dollar increases brings important caveats, like the fact that it takes less money to get a bigger percentage increase when the starting amount is smaller.  Thus, number 1 for percentage increase is Jamestown, dwarfing the rest at 119%.  But Jamestown’s actual increase was in the bottom half, at $737 per student.  For comparison, Central Falls saw a per-student increase of $3,444.

Taking the analysis to a deeper conceptual level, RIPEC’s attitude implicitly assumes no change.  What if Barrington, for example, begins to see its tax base erode or its needful population of students increase?  In such cases, its percentage increase ought to be higher.  If Central Falls were to experience the inverted trends, then its percentage increase ought to be lower.

If the moral imperative is always to rig the formula such that a handful of previously identified districts always get a higher percentage increase, however, then we’re simply responding emotionally and with a high degree of unfairness that will inevitably hurt children (albeit children about whom we’re apparently not supposed to care as much).

And all of this, by the way, avoids the key question of whether more money will actually solve education problems, when some of us would argue it’s making things worse, if anything.

 

Featured image from Shutterstock.

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Politics This Week: Unions Versus the People in RI

By Justin Katz | July 17, 2023 |
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A hand reaches for chains

Returning to a longer once-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • Poor infrastructure and flooding
  • National advice to flee Rhode Island
  • Legendary business unfriendliness
  • RI targets independent contractors, the nexus of innovation
  • Beach access activism to claim private land
  • Reliable Matos gets the union endorsement
  • The warning of cannabis union mandates
  • TopGolf [Somewhere]

 

Featured image Zulmary Saavedra on Unsplash.

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The independent contractor form is just another stick on the bonfire.

By Justin Katz | July 13, 2023 |
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People gathered around a bonfire

A tweet from Mike Hruby, this morning, caught the attention of a number of conservative-leaning Rhode Islander’s:

The State of Rhode Island, oceanside home of 1.1 million Americans, just muscled into the front lines of job-killing legislation.

RI has attacked its 190,000 self-employed independent contractors with this $50 form to fill in for each client. All info is public information.

As somebody who is very happy to be an independent contractor, it certainly caught my attention, representing further evidence that legislators and the governor in Rhode Island are constantly edging us toward a cliff of unemployment, with the only escape being to accept terms that are favored by the state’s powerful labor unions.  Knowing that the state is always on the lookout for such opportunities can (and should) discourage businesses from setting up in the state and workers from seeking to build a life here.

That said, we do not appear to have reached the point of tyranny that Hruby suggests.  Most prominently, I can find no indication on the Department of Labor and Training’s relevant webpage or in the relevant law that filling out the form comes with a $50 fee.

More broadly, the relevant state statute, 28-29-17.1, has been around since 2000, so this form is nothing new.  However, as part of a favor to the unions this session making independent contractors much riskier for businesses, the General Assembly and governor did modify this section of the law.  House bill H5710A and Senate bill S0427B made three material changes:

  • They required the department to make it possible to fill in the form electronically.
  • They instructed the department to send its list of independent contractors to the state department of taxation every year (the better to squeeze every penny from workers).
  • They added a requirement that the contractor “shall be required to file the form annually, regardless of how many forms are filed.”

That third change slips into the insidious mess that is sloppy legislating and a scheming bureaucracy.  On its own, one might conclude that every contractor must file this form for each of his or her clients.  In context, though, one could make a strong case that annual filing is only required in order for the form to remain valid.

Notice this language that remained in the law from 2000:

The filing of the notice of designation shall be a presumption of “independent contractor” status but shall not preclude a finding of independent contractor status by the court when the notice is not filed with the director.

That means Rhode Islanders can still be independent contractors whether the form is filed or not.  For context, if ever somebody challenges a person’s independent contractor status, courts consider a range of factors like whether the person has only one client/employer, what sorts of benefits are given, whether paid time off is part of the deal, if the company supplies the tools, and so on.  This form requires the court to find a very good reason to say somebody is an employee if he or she and the client insist it’s a contractor relationship, but the absence of a form doesn’t mean the balancing test doesn’t still apply.

Naturally, because Rhode Island’s state government is always scheming against the people in favor of special interests, the instructions on the form practically invert meaning of the law (emphasis added):

Warning! This form is for purposes of Workers’ Compensation only and completion of this form does not mean that you are an Independent Contractor under the rules, regulations or statutes of the Internal Revenue Service or the R.I. Division of Taxation. Information on this form will be shared within the Department of Labor and Training, the RI Division of Taxation and the Internal Revenue Service.

One can infer that — knowing most people lack the time and experience to trace these forms back to original statutes or the resources to run such things by attorneys — the RI Department of Labor and Training wants people to conclude that hiring independent contractors is always a risk.  And it is.  The aforementioned gift to the labor unions was to make the consequences for misclassification a terrifying felony, with up to three years in prison in addition to financial ruin.

For that reason, independent contractors may find that some of their clients want the additional protection of this form, but if that’s the case, they’ll be accepting, up front, the fact that they’ll be searchable online.  A better approach may be for independent contractors to include language their contracts emphasizing their status.

Even with that protection, however, this sort of legislation will likely cement the general feeling businesses have that hiring independent contractors isn’t worth the trouble.  That means less work for contractors, less reason for companies to set up shop in the Ocean State (especially with an innovative business or business model), and less opportunity for Rhode Islanders.

In other words, it’s just another stick on the fire as elected officials and the bureaucracy slowly roast our economy for the unions’ consumption.

ADDENDUM (July 14, 2023, 12:57 p.m.)

Note that the original version of the legislation does, indeed, include a $50 registration fee.  However, although the language is typically sloppy, it appears that it would be $50 per contractor, not per client.

 

Featured image from Shutterstock.

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Politics This Week: Media, Population Changes, and a Poll

By Justin Katz | July 10, 2023 |
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Business people leap over a chasm.

Returning to a longer once-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • Free states on the economic move (while RI languishes)
  • AI in RI? Why would innovators come here?
  • Licenses to lure illegals.
  • The media’s lack of soul searching when excluded.
  • Rhode Islanders defend their property rights along the shore.
  • Push poll finds Regunberg in the lead.

 

Featured image from Shutterstock.

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Politics This Week: Pols Pandering to “Rhode Island Values”

By Justin Katz | July 5, 2023 |
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Providence and Newport featured on a cartoon map of Rhode Island.

Returning to a longer once-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • Matos on national media
  • Who invited McKee to the party?
  • … well, he’ll pander while there
  • Cranston police defend Miller response
  • Licenses for illegals
  • Homeless where the nursing home used to be

 

Featured image from Shutterstock.

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Politics This Week: The Confused State of Ethics in RI

By Justin Katz | June 30, 2023 |
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Monkey hear no, see no, speak no evil statues

In a now-shorter-and-twice-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • Magaziner’s bad-form picket
  • Miller’s adolescent obstruction
  • Sanchez’s mayoral academy confusion
  • The Philly trip’s ethical ripples
  • McKee sells out municipalities

 

Featured image by Joao Tzano on Unsplash.

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Politics This Week: RI Edged Toward the Radical

By Justin Katz | June 26, 2023 |
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Person at the edge of a cliff

In a now-shorter-and-twice-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • The Miller embarassment
  • The McKee Millerhood
  • The rich and Regunberg
  • The Valley Breeze beclowns itself

 

Featured image by Leio McLaren on Unsplash.

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Politics This Week: Politicians at Lunch

By Justin Katz | June 23, 2023 |
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Men in suits at a restaurant

In a now-shorter-and-twice-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • McKee’s private lunch with his fundraiser and a prospect
  • Matos’s latest endorsement
  • The soccer pause
  • The progressive media “shakeup” nobody would have noticed

 

Featured image colorized from Shutterstock.

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Politics This Week: Telling Philly Exploits

By Justin Katz | June 17, 2023 |
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Clown face in a pinball machine

In a now-shorter-and-twice-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • The latest developments in the Rhode Islanders Behaving Badly in Philly saga
  • McKee’s handling of the situation
  • How it ties back to basic differences of political theory
  • Plus Black Lives Matter polling
  • And surprise controversy over a biological male running the Democrat Women’s Caucus

 

Featured image by James Lee on Unsplash.

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Politics This Week: A Culture of Extortion

By Justin Katz | June 13, 2023 |
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A shadowy man on the phone

In a now-shorter-and-twice-a-week segment on WNRI 1380 AM/95.1 FM, John DePetro and Justin Katz discuss:

  • Economic development corruption revealed
  • Nerona v. McKee (still)
  • Regunberg’s defense
  • Labor unions, media, and Nicole Solas

 

Featured image by Devin Kaselnak on Unsplash.

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