By Will Collette
Now that the right-wing myth that unions control Rhode Island has been shown to be a paranoid fantasy, how big exactly was the conservative steamroller that squashed the retirement security of thousands of Rhode Islanders?
The answer is we will probably never know. Just trying to get a handle on all the time and expense devoted by individual businesses, business associations, Chambers of Commerce, cities and towns, outside organizations, the Tea Party, the RI Statewide Coalition and EngageRI is a daunting challenge because of the obtuse way lobbying costs are reported.
RISC-PAC reported ZERO. No money. No expense. Zero, to maintain a nearly blanket presence at the State Capitol. In fact, the RISC-PAC has reported ZERO lobbying expenses for the past several quarters. Look for yourself on the Secretary of State's lobbying tracker database.
In RISC's case, the explanation seems to lie with their use of a 501(c)(3) organization, the RISC Foundation. The RISC Foundation accepts tax deductible donations but its activities must be strictly educational, not political.
In the three IRS 990 reports the RISC Foundation filed with the Internal Revenue Service since its start-up in 2006, they report raising $506,648. Of that, $429,588 (85%) came from out of state. Many of the names attached to the largest donations are out-of-state part-time Shelter Harbor property owners who also hold RISC board seats.
You can find the IRS 990 reports on Guidestar.org - if you register (free), you can look at their 2007 report here, their 2008 report here and their 2009 report here.
According to these reports, the RISC Foundation uses the tax-deductible, not-for-political-use donations to file amicus briefs, conduct polling, run the RISC website, put out mailings, hold legislative meetings, pay the rent, operate the RISC database, buy supplies and computers.
Labor unions are not only required to file IRS 990 reports, but also incredibly detailed LM reports with the US Labor Department. When union officials divert cash earmarked or restricted for one purpose to another purpose, they often get busted and you see them do the perp walk on TV.
It's a good thing RISC doesn't have to file LM reports. Oh, and by the way - one of the RI Statewide Coalition's #1 goals is transparency and openness. Just like the CCA.
EngageRI is a mysterious business coalition that popped after State Treasurer Gina Raimondo (DINO) called on people concerned about the state's pension "crisis" to "get engaged." In a matter of weeks, EngageRI raised between $700,000 and $1 million which it used to saturate the RI airwaves with ads pushing the gutting of public worker pensions. They hired ace lobbyist Christopher Boyle of Newport (Boyle's other clients include General Motors, Newport Grand, Constellation Energy, Blue Cross/Blue Shield among many) to lead their cause.
EngageRI also spent a small fortune on "astro-turfing" - the use of public relations firms that specialize in "grassroots advocacy." Grassroots advocacy is a political buzz term for creating the illusion of a mass movement where none actually exists.
Several of RI's top political investigative reporters (Ted Nesi at Channel 12, Mike Stanton at the ProJo and Scott McKay at WRNI) have noted that EngageRI structured itself so that, under IRS rules, it does not have to disclose where their money comes from. And they are not willing to voluntarily disclose this information.
According to Scott McKay, one of the staunchest defenders EngageRI's non-disclosure is none other than Gina Raimondo. Raimondo said that because EngageRI was doing is good for the whole state, they shouldn't have to disclose who was bankrolling them. McKay, who is not usually taken to hyperbole, called Raimondo's comments "the most outrageous defense" he'd heard, as well as " ridiculous and the height of hubris."
Another odd note emerged in Monday's disclosure that EngageRI padded the turn-out to its rally against the unions with lots of students. They lured the students in by offering prizes - I-pads - for turning out and brandishing the most interesting signs. But that's how "astro-turfing" is done.
These tales of the two main players in the right-wing pension victory in Rhode Island is a study in contrasts. In RISC's case, the advocacy organization for the rich raises beaucoup out-of-state cash, blankets the legislature with its presence but claims it spent nothing on these efforts.
EngageRI also raises beaucoup cash - we know not from where - buys every hired guy it can grab and runs a fake "grassroots" campaign which is really just a PR blitz as clearly shown by their disclosure of expenditures.
Both groups claim to be staunch advocates for open and transparency. Except they are the ones hiding key information from the public. Hypocrites.