Laffey Lines: Interview with Stephen P. Laffey

June 8, 2002 -- In Cranston, Rhode Island, a city on a hill in the suburbs of Providence known for its good public schools, affordable homes and not-too-high taxes, Steve Laffey is running for Mayor. Laffey is running as a Republican with the qualifier that he is inviting everyone -- Democrats, Republicans, and Independents, to join the fight against the inept current administration. Laffey has compared the city of Cranston to Enron for its financial woes which include an estimated deficit of $12.5 million for this year, unfunded pension liability of $200 million, and city bonds that have been downgraded by Standard & Poor’s and Moody’s to the status of junk bonds.

You may wonder what all this has to do with you if you don’t live in Cranston, but chances are you live in another city that is facing many of the same challenges that Cranston, Rhode Island is facing -- budget problems, diverse immigrant populations, environmental concerns, as well as the usual priorities of providing quality education, facilities, and services for everyone from toddlers to teens to seniors.

Steve Laffey appears to be part of the American voter's quest for new leadership, which has already been seen in cities like New York (Michael Bloomberg), Los Angeles (Bill Simon), and in the Governor's races in Texas (Tony Sanchez) and Virginia (Mark Warner). All of these newly elected officials have something striking in common: they are all political novices migrating over to politics from the business world. It seems that Americans are hoping these business experts can clean up their messy, failing governments.

Kiersten Marek: What would you say is the most important thing voters should look for in a candidate for Mayor of Cranston?

Steve Laffey: People should be looking for a candidate, during this time of extreme financial crisis, who has a background in finance and business, but also someone who has a real love for the city. My background is that I grew up in Cranston and attended the public school system. I have an MBA from Harvard and was at age 38 the President and Chief Operating Officer of a financial services firm that did roughly $500 million in revenue (much bigger than Cranston at $175 million) with 2000 employees. If elected, with a lot of help we can get the city of Cranston get back on sound financial footing. This will let the residents of Cranston know that their money is being spent wisely!

KM: It's great that you have a history with Cranston and a real love for the city. As I'm sure you realize, Cranston, like many other cities in America, has changed since you lived here as a child. On my way to the grocery store today, I was caught in a swarm of Cranston East students being released from high school, and it was amazing (and wonderful) to see the diversity of the faces coming out of the school. What do you have to offer to this diverse community of Asian, Hispanic, African-American, Middle Eastern, Eastern European, and other ethnic minority families? What is your plan for representing the diversity of our community in your administration?

SL: I have been in contact with most of the diverse groups that live in our great city. It is exciting to see their concern over the fiscal mismanagement that is wreaking havoc on our city. They care! They care about their children’s education. I hear that over and over again. Years ago I was one of those kids pouring out of the building.

We are setting up meetings and coffee hours with people representing the great diversity that is in Cranston, to hear their concerns, to get them out to vote and to hold regular meetings with them once I am Mayor. And more than that, all people in Cranston must have a voice in the city government, feel welcome at Budlong Pool in the summer or a city council meeting, etc. A city run right, with their tax dollars spent wisely, will help these people achieve the American dream they so desire. I am excited about taking on that challenge as Mayor of Cranston.

KM: I admire your enthusiasm for taking on this job, which, from the perspective of a Cranston resident, seems onerous at best. The pension-funding crisis in Cranston is particularly scary. How will the city of Cranston fund pensions for the people who have risked their lives to make the city a safe place -- police officers, firefighters, etc. As a former investment executive, what is your plan for the financial resurrection of Cranston, both short-term and long-term?

SL: In terms of how to address the financial crisis of Cranston, I first recommend that a forensic audit be done and done soon. There are a number of reasons for this. As I walk the streets and meet with the taxpayers of Cranston, they tell me they want to know what happened to their money. We owe it to them to find out. Second, we cannot continue to make the same mistakes year after year: moving forward without knowing where we are financially. This has produced deficits for three straight years. This is a budgeting mistake so fundamental that it is one of the first finance lessons my students at URI learn. For the past few years the City of Cranston has budgeted for the future without a completed audit and a management letter. Do sane people plan their vacations without knowing how much is in the checking account? NO! If you don’t know where you stand, intelligent financial planning is simply not possible. To this end I call upon Mr. O’Leary (the current Mayor) to start this process now so that whoever his successor may be, that person will have that information in hand to start the process of getting Cranston back on sound financial footing again.

Second, I will form a "Blue Ribbon Commission" to put the best financial minds in the city and state at the same table. For example, people of the caliber of those at RIPEC (Rhode Island Public Expenditure Council), Mr. Almonte (the State Auditor), top level CPA’s, and knowledgeable financial planners like myself will share our expertise to find the best long-term solution for Cranston. Democrats, Republicans, Independents, even The Cool Moose, are welcome.

Third, I would call for old time town hall meetings to explain the options to help save Cranston. We must get the peoples’ input and, just as importantly, we must gain their confidence back, before any final decisions are made. The decisions the next leader of this city will have to make are going to be tough ones. Due to both my career and educational background, I know that getting the citizens to understand and accept any plan is crucial to its success.

On the issue of funding the city pensions, RIPEC has suggested the "pay as you go" system, which essentially means that the city must determine how much money needs to be set aside each year to build up a nest egg for future pensions. My plan is: just do it. Put aside the money that is needed.

KM: It's good to see that you have a plan and the political will to take action, something the current administration has been criticized for lacking. What else do you think the current administration is doing wrong, and what will you do differently?

SL: One of the major problems with the current administration is that they don’t seem to listen to the ideas of outside bodies such as RIPEC. The suggestion to do "pay as you go" to begin funding the pensions was made over a year ago, in September 2000, by RIPEC, but the current administration chose to ignore it. The current administration also seems to lack basic communication skills. When I am Mayor, you will not have situations like the current Mayor’s not telling people, even people in his own administration, about the second downgrading of the city’s bonds.

KM: You mentioned your passion for the environment, which is something I also share. What can Cranston residents, and other residents of small cities, do to help their community move toward environmentally wise policies and initiatives?

SL: That’s a good question. I’m very open to technological innovation and finding ways to use resources wisely. Like I said in my announcement speech, I intend to bring the best and brightest on board to lead Cranston. In terms of what to do to improve the environment in Cranston, there are a lot of little things that can be done. Look at Western Cranston. There was a comprehensive plan that was developed in 1992 that would allow for open space and more two-acre zoning, but it simply wasn't followed. Now we have trouble building schools and we are running out of open space. The traffic has become a problem. We can work to preserve what open space we have. We can also continue the city’s recycling program, which is already fairly extensive, although when I went over to City Hall to get a bin for plastics for our office, they were all out. When I am Mayor of Cranston, we will not run out of recycling bins. It’s the little things, you know? We need to bring people on board who can help us fix the little things, too, -- from properly setting the timed traffic lights in Rolfe Square to ordering enough recycling bins.

Other Resources:

GlobalPolicy.org -- Of particular interest is an article entitled Politics 2002: Year of the Tycoon? by Liz Marlantes and Daniel B. Wood.