Larry and me

Though we have crossed swords at meetings and in the public prints, I had never spoken directly to Larry Fitzmorris before this evening, at the Portsmouth school Finance Subcommittee meeting, where they were reviewing the draft budget for the next school year. I will talk about the budget numbers, but also about Larry, because I hope it's germane.

In game theory, there is a classic example of non-zero-sum games (where payoffs can be shared) called the Prisoner's Dilemma. In brief: two crooks are caught and held in separate cells. If neither confesses (that is, if they cooperate with each other, even though they cannot communicate) they both go free. If one confesses and rolls on the other, they get a short sentence and the other goes up for 10 years. If both confess (that is, if they "defect" and rat out the other) they both get 5 years. You have to anticipate what the other will do and play accordingly.

In single-turn games, you always defect; pure CYA. However, if you're playing the game for a series of turns — called an "iterated" Prisoner's Dilemma — the optimum strategy is generally held to be "benevolent tit-for-tat." Start out being nice, but don't allow yourself to be taken advantage of. If the other player keeps defecting, you retaliate. But if they cooperate, you do the same, and hopefully trust will grow.

When the PCC attorney attacked SOS supporters on Monday, I came out swinging. Tonight, Larry Fitzmorris was more polite to me, personally, and to the school committee than I had any right to expect. He was tough but balanced in his questioning of the committee's numbers, and he actually extended an olive branch. Talking about the insane and unpredictable payments into the state retirement system, he said, "We have common ground here. This needs to be squared away. If the General Assembly says we owe them another 300K, we're all in real trouble."

I agree with Larry. There is common ground to be had here. Sure, we would all like lower taxes, and if instead of just cutting the levy, we could work together to apply political pressure that goosed the state funding formula, and prompted accurate payments for group home beds, we could have a win-win.

Did Larry (and his associates, Forrest Golden and Paul Kesson) pick at the numbers? Absolutely. As one would expect them to, given their constituency. But they were polite. Assertive, sure, openly hostile, no.

The numbers themselves are tough, but not hopeless. The bottom line in the draft budget (which is still pending negotiations with principals, admins, and maintenance workers, is $33,739,228, which puts it about 300K over the 5.25 Paiva Weed cap. On the revenue side, there is about $33,068,770 projected to be available. I'm not an accountant, but it seems like the cutting required by law to get under the cap is going to be an exercise that might get the budget within striking distance of the revenue side. As we heard accountants testify at trial, finding 1% should be possible, this early in the game. It's going to be tough, yes, but we knew that going in.

While I am cautiously cooperating in this round, please do not think that any slack offered to Larry extends to Jamie Heaney. With the lift tickets from his recent ski vacation dangling from his jacket, he questioned Superintendent Lusi about anticipated Little Compton tuitions.

"How is that paid," he asked.

"We bill quarterly," Lusi explained, then noted that this year, however, we had only just sent out the bill, a point discussed at the Caruolo trial.

"Why are we behind?" said Jamie, earning him the HeaneyWatch™ for the evening.

Uh, Jamie. Maybe they don't have the Sakonnet Times in Aspen, but there's this little problem of the part time finance director? It might have been mentioned at a meeting or two? I have reasons for this defection which are specific, and Jamie knows what they are. No reason to extend this strategy to the larger game.

How long will glasnost last? Let's see. Monday night, the Town Council is going to take up a petition to put before the citizens of Portsmouth a proposal to convert the Tent Meeting to all-day voting. This can be an ugly battle, or a civilized coming together to get to an answer that everyone feels good about.

Your move, Larry.

Comments

I'm delighted that the groups are finding common grounds. The mention that this is primarily a state funding problem is right on. While we refer to it as a "local" property tax, it actually is a state tax. The state tells how to tax, when, why, etc. If it talks like a duck, & walks like a duck... But most people hold their local officials responsible rather than looking at the lege.

The question of the pension fund is an interesting & complex one. The R.I. Policy Reporter did a back issue on this & you can get it from his site. I think that I had to read it about 3x time to "get" it. It has to do with actuarial charts & how the guv has decided to hold RI to a tougher standard than is necessary. This results then in localities having to place more $ into it & convinces the citizenry that the penion is "bad" on many levels.

Hi, Eileen...
Thanks for your observations. I do hope that we can find common ground, we're certainly going to need to work together to get things done under the tax cap.

I've been meaning to subscribe to the RI Policy Reporter, and this gives me a good reason.

Cheers.
-john

It never fails to amaze me. You talk about the town being divided and how we all have to come together, then say things like"Your move Larry"? Are you in a chess match?Is this a game? When will you understand that the PCC is NOT some organization, run by a one man Super hero! The PCC = Portsmouth Concerned Citizens, It is made up of the citizens/ taxpayers, and good people of this town, who WILL be heard! The only thing some of us may be guilty of is not attending ALL of the town meetings years ago, because that is how we got into this mess...I for one believing that our hard earned, tax-dollars, we're in the right hands, of people who were honest, and knew what they were doing. People that WE voted in for the job. Obviously this wasn't the case! It is a real shame that no-one was held accountable for it either. But we all know who the person(s) responsible for more than 1.Mil. being lost,gone,poof, are...Yet I never heard much of any mention, or name calling, or finger pointing, in the REAL direction, instead You would rather harp on more than 2,000 portsmouth citizens who used they're (legal) rights to hold a tent meeting!
Now that we know better we will be there in droves! We(the citizens/taxpayers) WILL take control of OUR town again, and let nothing slip past us. Very Poor management, out of control high spending/wasting of our tax money will be a thing of the past(hopefully!). Thank you to Larry(whom by the way I have never had the pleasure of meeting) for opening our eyes!
I think your cute little nicknames for a select, and not so surprising few, of the town councel members are amusing, particularly for Karen Gleason, Who in my mind, and MANY others who obviously voted her in, after watching her serve(a job well done) on the school commitee, is one of the people in this town,and on this commitee, who truely cares about the people,and what they want,and where they're hard earned money is going, She is trying to keep it honest, and OPEN, so that we are not treated like the mushrooms we were before...kept in the dark, and fed nothing but bull s...! If in prior years we had a commitee(s)(school,and town) made up of all Karen Gleasons, and Dennis Canario's, We wouldn't be in this financial mess today!
p.s. I thought it only fair to come up with a few(selected),not so surprising nicknames myself...SneakySmurfSeveney...
DramaKingKatzman, and last but not least...
WasteofSpaceWest...hope you are amused! :)

Hi, Stormie...
I'm very glad you took the time to stop by and share your thoughts. I completely support the democratic process, so I agree completely that the people should feel that they are being represented.

What I ask you to do is be specific. If you have verifiable information about someone who wasted a million dollars, say so. If you make charges about out-of-control spending, please back them up with facts. Tell us all where the waste is, and we can have a discussion about it.

If, as you say, the PCC is just the "citizens/taxpayers" of the town, then there is no need for such an organization. We already have a mechanism for our voice to be heard. It is called democracy.

About your nicknames -- don't quit your day job.

Best regards.
-j

and I thought my nicknames were so much wittier than yours,perhaps we should put them to a vote? Oh well...some people just can't help being dry.
I don't feel that I owe an explanation about anything that I wrote, its all public knowledge, and the proof is in the pudding. If a small town such as beautiful Portsmouth,RI, cannot live within' the HUGE(millions) of tax dollars they are recieving yearly, which is on record, then its pretty obvious to even a layman, you don't need to be a CPA to see that there is a rat somewhere. I have been a resident for 40 years and I have seen the many changes, some good, some bad...but the over-all picture is bleek if we are to continue at this pace of over-taxing,and over-spending. Lifetime residents have been forced to put they're homes up for sale, because of the outrageous, and enormous tax hike! Lifetime residents, who have raised children here are now realizing that these same children who attended portsmouth schools, cannot afford to live, buy a home, or even rent an apartment, in the very town they're parents(and grandparents) have raised them in. What a disappointment!and what a shame!
You can't have it both ways..saying that Portsmouth has GROWN, with its huge new sky high monster houses, and in all of its glory, and revenue, yet claim that there isn't enough money to make ends meet!
What good would it do to discuss these facts with you now, seems to me they have been discussed to death already at town meetings in the past...Many citizens have spend countless hours, at countless town meetings, with many suggestions on how to cut spending, and better ways to do buisness, it has fallin' on deaf ears for far too long, that is the problem, and it is everyone's problem, hence-The Tent Meeting.
How are ALL of these children now being raised by the "SOS" going to feel when they graduate,get a good job,and then come to realize for themselfs that they cannot possibly stay in this town?I guess when they all have to move out, and make travel arrangements to see thier parents then they too will understand,and appreciate what the PCC was all about.
All one has to do is check the property transactions in the papers, notice how Portsmouth isn't selling anymore?( a few here and there) it has come to a stand still, why? because the people who have been told that they can get $500.-600. grand for the home cannot sell it at that price, they have to sell it for much less than the assessed value! So...maybe you can tell me how, and what, someone is to do who has now been forced to sell thier home(can no longer afford the taxes) but has NO buyers, not even a bite at auction sale!What do they do then? Do you think that after ALL of this publicity about Portsmouth,and the financial problems,the Caruolo,..etc...etc...being aired over public access tv, in papers...is going to encourage anyone to invest ,$500.-600. grand into a home? Do you think that people with children are going to want to send them to a school where the school commitee,can't make budget? Or put up a NEW monstrousity of a gym that can't even hold the rain out? People are doing they're homework before they spend that much, and invest. Righfully,and wisely so.
Everyone has to live within' they're own budget , no matter how much, or how little they make.Why shouldn't the town, or state for that matter, since this seems to be a statewide problem...why shouldn't they be expected to make it on thiers?Millions!
When your own Police, and Firemen, you know those guys right..who put their necks on the line daily to make us a safer place to live, can't afford to live in the very town that they serve, and serve VERY well, I may add...it doesn't take a rocket scientist to figure out what the real problems are, it stinks!
I have just touched on a couple of issues, there are many more(unfortunately).
I love Rhode Island, and I love my home town. I pray that it will come together, and everything will be worked out, Peacefully!
Thank you for the welcome, and for the good job you have done with this excellent blog, very informative!
PCC...SOS...are all the same,just letters, don't be afraid.

Hi, Stormie...
Thanks for sharing your concerns. I can understand your frustration, and anger. And I share your love for Portsmouth -- my family has been here since the 1930s, and there is no place else I would ever want to live.

But unless you are willing to talk about facts, and point to examples of waste, what you are saying ultimately boils down to a claim that things "just ought to cost less," and therefore there is "a rat somewhere."

I know how tough it is to be able to afford a home; it took us a long time, and I was just buying out my cousins. I share your sadness at seeing people priced out of houses here, and the frustration of seeing the bottom drop out of a market.

But I just disagree that this is the fault of the Town government, though I am willing to be convinced by evidence to the contrary.

Best regards.
-j

You keep saying you want "facts", and you want "evidence"...When all you have to do is open your eyes, and your ears. Seems to me that you do not want to place blame on town government for ANY of these issues. Then you give me some facts Mr. -J. where do you think the fault lies?
You may well know how hard it is to afford a home, but I'am sure you do not know what it is like to be thrown out of your home, some of these being Portsmouth citizens that were paying taxes since before you were born. What would you do if someone told you after being a, decent, tax-paying, contributing to the community, law abiding citizen, that you had to get out of your home?!
No I'am not merely saying that things"just ought to cost less" those are your words, and please don't put them in my mouth.
Since this is your blog, I'am willing to listen/read the "facts" as YOU know them. Starting with why lifetime Portsmouth citizens are being taxed right out of they're homes, and finishing with how the school department came up over a million dollars short? Tell me where that money was spent?
I hear all the bragging how the new HUGE buildings/new developements, are going to"put Portsmouth on the map", Yet we have people here that will be homeless?!... Where is the compassion,concern,and the help, for our own citizens? I guess those days are going down the river right along with the polution!
Are you saying that our past town commitee's have done a good job? That our town budget(s) were managed correctly?Then tell me why when the (you no what) hit the fan, some resigned(ran),some got a slap on the wrist,and one(without mentioning any names) went on to a better job, with a fatter pay check.
Please don't ask me for "facts" and "evidence", You know who, and what I'am talking about. You must know, you attend all the meetings, and you seem to be up on all of these matters.
So please do enlighten me.
I have changed my mind about that rat, I should have said...too many wolves in sheeps clothing!

Hi, Stormie...
Let me try to say this a different way. I have no tolerance for corruption or incompetence, and if you can point to a verifiable instance, I am more than happy to help you yell it from the housetops.

But tell me:

  • Who is being taxed out of their homes. Who exactly is being told they have to leave their homes, and by whom?
  • Exactly when did the school department come up one million dollars short?
  • Who are you referring to when you say some ran, some got a slap on the wrist, and some went on to a fatter paycheck?

I might even agree with you, if I knew the specifics.

To answer your root question -- why are taxes in Portsmouth so high? Because we have a federal government that thinks nothing of spending $300M/day for war, but pennies for education and social services. That's my flip political answer.

At a very basic level, one answer is that things cost more. Providing the services that a town needs just cost more than they did years ago. And it's frightening how small changes in costs of basic things like energy are multiplied as they ripple out through every service that they touch.

There are clearly structural factors. Are we leveraging regionalization and economies of scale where appropriate to capture maximum benefit? Probably not. Are there issues with Rhode Island's public sector healthcare packages and retirement systems that contribute to the problem? Probably.

Specific to education -- Where is your anger at the Federal government which has mandated NCLB and IDEA without fully funding their cost implications for communities? How about some blame for the state, which has yet to get its act together to create a fair funding formula for education, to pay what it has promised for group homes, or even to articulate the costs of state-level mandates so we can inspect them.

In terms of home prices, Portsmouth has, like many other SNE communities, suffered collateral damage from irrational exuberance in the housing market. I, personally, am very glad that this year's reval is coming after the panic in the sub-prime mortgage sector and the nationwide cooling in housing prices. That should hopefully bring a note of sanity.

It's very easy to point the finger at the school budget, because that's the biggest ticket item we have control of locally. But just because it's the only knob we can grab hold of and twist, it doesn't follow that it's actually connected to anything.

Best,
-j