The public discussion regarding the expected Rhode Island budget deficit of $450 million, while characterized by finger pointing and partisan-driven solutions from every quarter, has been conspicuously lacking a thoughtful response from the state’s business community.
Leaving taxpayers, legislators, unions and special interest groups to battle it out, business leaders in Rhode Island have been shamefully quiet in trying to step around this land-mined landscape unscathed.
Concentrating instead on self promotion and their own financial health, they plod ahead, unwilling to join in this important conversation.
Two examples of corporate insularity, one arrogant, and the other blithely detached, were recently evidenced trumping the public welfare.
The first was the autopilot approach by Lifespan and Care New England to gain approval for a corporate merger. Without regard for the health and performance of the remaining community hospitals that will be left, these two health-care giants view our state as a for-profit Monopoly board.
Worse yet, despite the occurrence of a third wrong-site surgery in less than a year within the neurosurgical department of Rhode Island Hospital, Lifespan does not pause, does not offer to put the merger plans on hold for perhaps a year to demonstrate contrition and an understanding of the need for internal institutional reflection and corrections. Instead, the public is asked for its ever-abiding trust.
The second example involved remarks made by Lawrence K. Fish, who oversees Citizens Financial Group, regarding the state deficit during a speech at a November breakfast conference sponsored by the Greater Providence Chamber of Commerce. When asked what advice he might have for lawmakers grappling with this deficit, he answered that he did not know enough to comment.
That is hardly the desired response from the leader of a financial institution that, according to his own testimony, handles 40 percent of all deposits in Rhode Island, making it the highest market share of any bank anywhere in the country. The remarks are also inconsistent with Mr. Fish’s earlier assurance that: “Our roots in the community of Rhode Island are very deep.”
There can be no argument that the future of Rhode Island is directly tied to the huge and growing budget shortfall. Unfortunately, thus far, local legislators have been unwilling to make the difficult and unpopular decisions needed to correct it.
Their tiresome remedy has been to look for creative revenue sources through insidious fees and the implementation of further-use taxes. They stubbornly refuse to recognize the problem for what it is – the by-product of two chronically fatal economic policies: too many living off of too few, and spending more than you take in.
Sadly it is as simple as that. And the time has come for business leaders to not only say so, but to lead the charge to change the way that local government does business.
The majority of local politicians are only interested in gaining and then staying in power.
They achieve these objectives by making Faustian pacts with unions, pandering to large employee groups and cultivating allegiance with anyone looking for a government handout. The surreal commitment of nonexistent future dollars and benefits to public employees, outdistancing private-sector compensation, has embedded irresponsible behavior practiced by generations of Rhode Island politicians.
As for the taxpaying voters, they are simply too overwhelmed and isolated in their own municipalities to mount the needed statewide reform; a perfect example being teacher work actions each autumn. Beaten down by a legislatively manufactured system that mandates court involvement, arbitration and neighboring community comparisons, parents quickly and numbly learn that their attempt to determine their own town financial destiny is only a mistaken illusion.
No, it is only the business community, and big players like Citizens Financial Group and Lifespan who have the muscle and the resources to achieve change.
And it is time for them finally to step up to the plate, our plate.
We need them to agree as a group that business as usual has to stop in Rhode Island. We need them not only to partner with local chambers, and forward-thinking organizations such as The Education Partnership, but to publicly, boldly and loudly speak out. And in doing so collectively, they must put forth platforms for change.
We need them to become engaged in providing employment and compensation models for public employees that are fair, fiscally sound and which don’t overburden a reasonable tax base.
We need them to advocate and share with us the sound business principles and common-sense management approaches that they rely upon daily.
It is no small task that business leaders are asked to take on. The argument is correct that managing a government budget is different than that of a business enterprise. Government has a priority to ensure the safety and well being of vulnerable populations.
And typically, business leaders stay out of the Rhode Island Statehouse unless they are looking for something. Individuals like Gov. Donald L. Carcieri, who had a past life as a successful private businessman, are unique and rare public servants. His public frustrations and aggravations brought on by the opposition party and public unions are a shared message meant for all business people – that is to stay out of the politics.
Well, if Rhode Island is to have a chance, that day is over, and now is when the citizens need their business leaders to fight along beside them.
Instead of George A. Vecchione, the CEO of Rhode Island Hospital, putting on cufflinks and making the rounds to promote his desired merger, let’s have him roll up his sleeves and work with other business leaders to demand financial accountability from the State House.
Mr. Fish finished his breakfast speech that day by saying: “Rhode Island is who we are. Rhode Island is where we’re from.”
And: “You cannot have a healthy bank in a sick community.”
Amen, Mr. Fish. Rhode Islanders will look for you and your bank, as well as Lifespan and others to lead the way. •
Dr. Michael A. Battey, a partner in Rhode Island Foot Care Inc., lives in East Greenwich. He publishes a column on parenting and family issues in weekly newspapers.