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Unfinished business
Regardless of the Plunder Dome verdict, Providence faces a number of vexing challenges, from upgrading the schools to overcoming fiscal hurdles and regaining lost momentum
BY IAN DONNIS

Illustration by Steve Brosnihan

Talk about a tale of two cities. After becoming a nationally heralded emblem of urban renewal, Providence turns out to have had at least a handful of ethically challenged public officials and guys whose notion of honor owes more to omerta than integrity. It's no wonder that Plunder Dome prosecutor Richard W. Rose framed his closing argument around a Dickensian theme: "Renaissance City or city for sale?"

Naturally, Richard M. Egbert, Mayor Vincent A. "Buddy" Cianci Jr.'s lawyer, summed up the case quite differently, citing Cianci as the visionary behind the city's heightened status, and damning convicted prosecution witness David C. Ead, the former vice chairman of the Board of Tax Assessment Review, as a highly unreliable source of information. A 12-member US District Court jury was still pondering these competing versions of the truth as the Phoenix went to press.

At minimum, the half-dozen previous Plunder Dome convictions and the seamy revelations at trial indicate some degree of corruption within city government. The next mayor -- whether it turns out to be Buddy Cianci or someone else -- will be expected to bring a greater degree of transparency and accountability to municipal government.

The concept of a disparity between two Providences -- a visitor-friendly destination with great theater and good restaurants, and a gritty place with struggling neighborhoods, under-performing schools, and a shrinking tax base -- was familiar to many even before Plunder Dome burst into public view. Indeed, Cianci's mayoral challengers are steadily tapping into this theme.

At the same time, Providence, with its quirky heterogeneity and many other considerable assets, remains light years ahead of Worcester, Massachusetts, and other similarly sized communities in New England. Out-of-town writers covering the trial seem intrigued by the local politics and impressed by the city's idiosyncratic appeal.

But Providence still faces a number of difficult challenges, many of which were more easily overlooked in the time before the FBI raided City Hall in April 1999, lifting the lid on the government's investigation into municipal corruption. Regardless of the upshot of Plunder Dome, the way in which these are handled will greatly influence the future of the city. Here's a look at some of the most serious issues:


The schools
IN THE halcyon months before Plunder Dome became public, Cianci greeted an interviewer with his characteristic upbeat rap about how Providence had raised the self-esteem of the entire state. But when the subject turned to upgrading the city's beleaguered schools, he acknowledged that bringing about the city's signature accomplishments was a cakewalk by comparison. "I can move rivers, railroad tracks, build an ice skating rink, fix the zoo, and it doesn't mean as much," Cianci told me in a 1999 interview. "If you don't have a good educational system you can forget about it, because no one's going to want to stay here. This is the biggest challenge that any mayor has."

The Providence Public Schools have experienced some progress since then, but the challenge remains largely the same: overhauling an entrenched system and educating 25,000 students, most of them poor and many with limited English-language skills, with a relatively meager amount of resources. And although a poorly educated workforce represents an economic competitiveness issue for the entire state, the importance of this often goes unrecognized beyond city borders -- perhaps, in part, because the vast majority of students in Providence are Latino, black, and Asian.

In February, the state Department of Education announced that all of the public schools in Providence, except Classical High School, were rated as low performing. The system has been plagued by rates higher than the statewide average for student absences, teacher grievances, high school dropouts, and other troubling indicators. The vast majority of schools, though, were rated as improving in the state survey, and officials point out that the ratings were based on test scores over the last four years, only one of which included new school reform initiatives.

Observers like Richard J. Hoag, president and CEO of Providence Washington Insurance, who chairs the Business Education Roundtable, are encouraged by changes that has been made since Diana Lam became superintendent in 1999. "Educators in the Providence system are taking seriously the challenges, and I believe they are beginning to make the corrections have to be made," says Hoag, "but there's still a long way to go."

Hoag cites the greatest obstacles to improved public education in Providence as the high rate of illiteracy among students; the lack of money to truly address broad-based reform (although per-pupil spending in Providence has ranked near the top of the state, the comparable figure for general education is far lower, meaning there's a paucity of resources for mainstream students in the district with the greatest number of youth in costly special education programs); and general apathy by a public that doesn't demand enough from the school system.

New initiatives may yield improvements in student literacy. But although Providence has demonstrated success in attracting alternative sources of support, finding sufficient funding remains difficult, particularly with the state turning to tobacco settlement funds to balance the budget. Even more troubling, says Hoag, is a recent finding by Jobs for the Future, a Boston employment development agency, which found that almost half of Rhode Islanders don't have the literacy skills to work in jobs that offer enough to support a family. If a lack of emphasis on education is so pronounced among adults, it makes it that more difficult to nurture learning among children.

Adding to the uncertainty facing the Providence schools is the fate of Superintendent Lam, who is being sought for an interview by school officials in Portland, Oregon. Although Lam told the Providence Journal last week that she didn't have a flight to Portland on her calendar, it would certainly represent a significant disruption to the system if she left at this early stage of reform.

Housing
DESPITE THE economic slowdown of recent years, luxury condominiums have continued to sprout around Providence, sometimes selling for surprisingly high prices. At the same time, the cost of rental housing has risen dramatically in different neighborhoods, meaning, for example, that two-bedroom apartments in the West End are renting in the range of $600-$1000.

In some respects, the situation mirrors the increased demand that has come with Providence's heightened status as a place to live and work. But taxes have also been increased for many landlords, who, not surprisingly, transfer the cost to tenants.

Asked about the consequence, one housing specialist says, "People are paying a disproportionately high amount of their income for housing. It just lowers the whole quality of life. It means you don't have funds to improve yourself in other ways."

The growing cost of housing, beyond being a bread-and-butter issue for everyday folks, could also diminish Providence's traditional appeal as an accessible home for budding creative types. The city remains a bargain compared to Boston or New York, but housing costs have already caused some artists to look for more affordable digs in places like Pawtucket and Fall River, Massachusetts.

The shortage of affordable housing can be seen in the way that a 32-unit affordable housing development, organized by the Olneyville Housing Corporation, attracted close to 500 applications. "The housing organizations are doing a good job, but there's just so much more to do," says architect Stephen Durkee. "You could double them and that still wouldn't be adequate. It takes money."

Finances
THE PLEASANT AMBIENCE that greets visitors to WaterFire, Trinity Rep, and other local attractions masks a somber reality: Providence's financial needs outstrip capacity in a city with a shrinking tax base, a growing number of poor residents, and where almost 40 percent of the land belongs to tax-exempt institutions. Although Providence is hardly alone among Rhode Island cities in being overly dependent on property taxes, this combination makes it more difficult to attract new industry and shifts more of the burden to residents in the city with the greatest needs.

According to a recent study by the Rhode Island Public Expenditure Council (RIPEC), a business-backed group, Providence's tax levy as a percentage of full value is three-point-two percent, the highest among the state's 39 cities and towns. This rate of taxation is about 25 percent more than what inspired the Proposition 21/2 tax revolt in Massachusetts in the early '80s.

Gary S. Sasse, RIPEC's executive director, dismisses the possibility of a Cranston-style fiscal meltdown in Providence, provided that sufficient attention is paid to the city's financial management, but the city still faces a number of stiff economic challenges:

* The lack of a systemic state-local fiscal structure that recognizes the long-term problems of the city threatens to undermine education reform and other efforts.

* A combination of demographic and social changes impact the city's fiscal outlook. As Sasse notes, "The vitality of neighborhoods depends on having a viable, stable middle class." But even with Providence attracting a growing number of empty nesters and other new residents in recent years, the number of poor residents in the city has grown over the last decade, according to Census data.

* The tax rate on tangible property is high (almost 20 percent more than in East Providence, for example), making it more difficult to attract firms that have major investment in equipment.

* Payment in lieu of taxes (PILOT) money provided to cities by the state was recently changed, from a formula of 27 percent to a specific appropriation, which effectively translates to about 24 percent, in the 2003 budget. As the home to universities, hospitals, and state offices, Providence has the greatest amount of tax-exempt institutions in the state, and the PILOT reduction is equal to a $1.6 million cut in revenue from the state.

* Cianci's $528 million city budget for 2002-2003 was based on an assumption that the state would provide an additional $30 million in aid. The actual amount turned out to be far less, meaning that the city faces a budget gap of about $20 million. "That's going to translate to more difficult decisions for the city," says Peter Marino, RIPEC's director of policy.

* Providence's pension system faces an unfunded liability of about $500 million.

Municipal services
IN A CITY where the signature accomplishments include reconfiguring the path of several rivers, it would seemingly be a snap to adequately manage basic services. Residents in different Providence neighborhoods, however, cite persistent frustration about quality-of-life concerns.

As Kari Lang, executive director of the West Broadway Neighborhood Association, says, "The complaints I hear routinely from neighbors center around trash and rats -- that there's too much trash on the streets . . . that the trash program isn't working because the trash cans are overflowing without lids, and a continual problem of rats in the neighborhoods." Streets need to be sweeped more regularly, she says, and more workers are needed to maintain city parks.

Jennifer Cole Steele, an activist who lives in Federal Hill, also identifies trash and rats as perennial concerns, along with lax enforcement of violations involving noise and dogs -- a situation that has deteriorated, she says, since the demise of the police department's separate community policing program. "There are laws on the books. If they were just enforced half the time, I would feel better about living in Providence," Cole Steele says.

The activist describes herself and her husband -- a dual-income couple with no children -- as the kind of residents who are much needed by the city. But despite her affection for Providence and recognition that city life involves some hassles, she's getting frustrated enough to consider moving. "The middle class, I think, is getting really alienated and they're happy to move out of the city at some point," Cole Steele says, "because it's too much of a struggle to get the noise down or get dogs to stop barking. It shouldn't be so much of a struggle."

The police
TO HIS CREDIT, Colonel Richard T. Sullivan, the interim chief, has done some positive things while guiding the Providence police during what continues to be a difficult time for the department. But as previously reported in Phoenix (see "Waiting to begin," News, February 15), real change won't come about until after wrongdoing within the department -- including the kind of favoritism revealed during Plunder Dome testimony by former chief Urbano Prignano Jr. -- is settled in a credible way. And with the imminent selection of a new permanent chief, it remains to be seen whether Sullivan will get the nod.

The main challenge facing the police department has remained largely unchanged for more than three years: to deliver the more responsive brand of community policing long sought by residents. A lesser task is to more effectively manage, perhaps with help from private interests, the headaches that come with downtown Providence's popularity as a nightlife destination.

As it is, city councilors and neighborhood activists remain unhappy about Sullivan's decision to disband the separate community-policing unit. Sullivan explained his decision by citing the start of efforts to integrate community policing throughout the department. It seems as if community policing has yet to take a firm hold, however, and there's still a long way to go in helping residents with quality-of-life concerns.

Ethics in government
OF the outcome of the Plunder Dome trial, there are steps that could promote the cause of good government in Providence. H. Philip West Jr., executive director of Common Cause of Rhode Island, points to a proposal conceived by a Common Cause task force, chaired by gubernatorial candidate Myrth York and former attorney general Jeff Pine, that would essentially ban fundraising on municipal property.

Although Common Cause has yet to make an aggressive effort to promote the proposal -- similar to a prohibition on fundraising in federal offices -- West is confident that it would pass Constitutional muster. "There's no magic in ethics laws or in campaign laws, because any law that you write, someone can evade," he says. "But there is a value in breaking up the easy assembly points."

On the statewide front, state Senator Aram G. Garabedian of Cranston has filed a bill in each of the last four years that would make it a state felony to give campaign contributions of greater than $500 in cash. Existing law limits cash donations to any candidate in a calendar year to $25, but testimony in the Plunder Dome trial indicates that the law has been flouted. Garabedian's bill has gone nowhere fast, but West believes it could give an important tool to state prosecutors. "We need an AG ready to go after the prosecution of white-collar crime," he says. "We shouldn't have to wait until the feds come in."

West also sees a need to debate the merits of term limits for the mayor's office in Providence. "You can argue that both ways," he says. "[But] you always have a danger with a powerful executive, regardless of what's going on with his life, that people will trust him and vote for him." Drawing a comparison to the adoption of presidential term limits after Franklin D. Roosevelt's record four terms, West says, "We shouldn't have a perpetual presidency and a perpetual mayor."

The vision thing
FOR ALL the challenges it faces, Providence has a number of valuable assets, including the real affection that many residents have for the city. But Providence also risks becoming a victim of its own success.

After the city has served as a source of inspiration for many other communities, some observers are concerned that the forward momentum in celebrating the arts has been lost. "I just hope we don't wind up losing ground when we were really innovative and were responsible for inspiring a lot of these communities," says Umberto Crenca, artistic director of AS220, the nonprofit arts space on Empire Street. "We have attracted a lot of young, talented people based on the hype and we can continue doing this, but we need to continue the conversation."

The need to regain momentum is evident in other areas -- from the slow unfolding of Downcity's envisioned status as an arts and entertainment district to the larger question of fostering smart development in different corners of the city. There's also an incipient brain drain with the departure of city officials like Patricia McLaughlin, Cianci's director of administration, and John Palmieri, the former director of planning and development.

It's certainly not the worst of times in Providence. But unless more attention is devoted to these aforementioned concerns, it's unlikely to be the best of times, either.

Ian Donnis can be reached at idonnis[a]phx.com.

Issue Date: June 21 - 27, 2002