Riley: Providence Should Fine Even More & Pay Off Pension Debt | WHAT REALLY HAPPENED


Riley: Providence Should Fine Even More & Pay Off Pension Debt

Maybe the cameras catching and charging speeding vehicles in Providence $95 a shot is a good thing. It is definitely a “money grab," but it is also a sin tax or user tax -- rather than charging all Rhode Island residents who do not live or work in Providence for lousy municipal fiscal management and purposely lying about pension debt.

These speeding violation revenues should be dedicated to paying off the Providence pension debt that threatens all taxpayers in Rhode Island.

A good target would be emergence from “critical status” or until the pension fund is at least 60% funded. At a ticketing rate of 20,000 tickets per month, the city gets about half or $1,000,000 per month. Contributing that $12 million a year to pay down the pension debt, it will the allow Mayor Elorza to stop lying and use a 7% investment return to calculate contributions to pension plans.

The difference between 8% and 7% is over $200 million dollars in present value. Heck, it might only take only 20 years of these revenues to get to 60% funded (critical status) Raising the fines could help even more.

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