The Democrat Who Took on the Unions, Gina Raimondo

On Friday we posted an interview by Gina Raimondo, state treasurer of Rhode Island [March 23, 2012 Rhode Islands Retirement Law] who has battled to overhaul that state's pension laws.  Over the weekend the WSJ featured a story on her as well which dives a little deeper into her background and the roads that she took in order to reform pension law in Rhode Island


Points from the WSJ article link here

• The former venture capitalist is a Democrat, which means that she believes in government as a force for good. But "a government that doesn't work is in no one's interest," she says. "Budgets that don't balance, public programs that aren't funded, pension funds that are running out of money, schools that aren't funded—How does that help anyone? I don't really care if you're a Republican or Democrat or you want to fight about the size of government. How about a government that just works? Put your tax dollar in and get a return out the other end." 
• Ms. Raimondo drove perhaps the boldest pension reform of the last decade through the state's Democratic-controlled General Assembly. The new law shifts all workers from defined-benefit pensions into hybrid plans, which include a modest annuity and a defined-contribution component. It also increases the retirement age to 67 from 62 for all workers and suspends cost-of-living adjustments for retirees until the pension system, which is only about 50% funded, reaches a more healthy state. 
• "people say we've done pension reform when all they've done is tweaked something," Ms. Raimondo points out. "This problem will not go away, and I don't know what people are thinking. By the nature of the problem, it gets bigger and harder the longer you wait." 
• In the last 15 years, Ms. Raimondo, who is 40 and the mother of two children, has helped found two venture-capital firms, Village Ventures and Point Judith Capital. She was a Rhodes Scholar at Oxford and has a bachelor's in economics from Harvard and law degree from Yale. Still, serving as treasurer of the smallest state in the country probably wouldn't be the next career step for someone with such impressive credentials and ambition. 
• Soon after she set to work on fixing the state's pension system, flouting the advice of her Democratic colleagues. "Candidly, most people in my political circle told me not to do it because it is politically challenging and it's kind of the third rail," she says. "So most political advice I got was: 'Don't own the issue. Stay away from the issue. Put it on somebody else.'" 
• Ms. Raimondo spent most of last year crisscrossing the state, educating people about the magnitude of the problem. "I would talk to social workers or social-service agencies who, when I started to talk about pensions, would ask 'Why should I care about pensions?' And I said, 'Because if you don't, your whatever it is, homeless shelter, is going to lose X thousand of dollars of funding.'" 
• And she wasn't afraid to "walk into the belly of the beast" and tell the unions point-blank that "you were lied to [by former politicians] and the system is broken. Today we're arguing about whether you get a COLA [cost-of-living adjustment], tomorrow we'll be arguing about whether you get a pension."  
• Ms. Raimondo downplays the opposition from her former union allies. As she tells it, the reforms passed because she conducted "a huge, long, relentless public-education campaign," and there was no "rushing to a solution." Plus, the unions were at the table the entire time, she says. "Yes, there was a big protest. They weren't entirely supportive, but we had a reasonably productive dialogue the entire time—which we still have."