Cahill Lobs the Big One

Tim Cahill, with his campaign unraveling, has filed a lawsuit alleging conspiracy amongst his former top campaign staff to entice Paul Loscocco to leave the Cahill ticket and endorse Charlie Baker. Cahill also alleges that the conspiracy extended to that same staff leaking confidential Cahill campaign data to the Republican Governors Association and the campaign of Republican Charlie Baker. It is dynamite stuff, and pushes the Cahill/Baker blood feud to a whole new level. Cahill put out emails that show these consultants working directly against him while still on his payroll.

Cahill’s lawsuit and the real bad sniping between the Baker and Cahill camps has to be an unexpected relief for Governor Deval Patrick. The exposing of the nasty underside of the political operations of both Baker and Cahill leaves the Governor in the cat birds seat, free to remain on the high road and let the other two campaigns kill each other off. Baker has little time left to turn his operation around, which he must do if he is to get back in this race. A good post over at Red Mass Group by Vincent Errichetti summarizes the Baker campaign’s errors on Tim Cahill. As a matter of strategy I think Baker had it right with the initial assault on Cahill. But since that assault did what is was supposed to do the Baker camp just can’t seem to move on and let the Cahill matter alone. They seem more interested in vaporizing Cahill than in winning the election. These guys seem to believe that Deval Patrick is just going to collapse of his own accord. Not going to happen.

The statement by Tim Cahill: (From the Globe)

My campaign has uncovered a conspiracy between Washington Republican insiders and local Republicans to undermine my campaign for governor from within. It has come to our attention that former members of my staff – from the consulting firm Strategic National – intended to use confidential information they obtained while under my employment to benefit my Republican opponent. As a result of this discovery, today my campaign filed a lawsuit in Norfolk Superior Court against these individuals.

Recent events of this race have confirmed the very reason why I left the party system in the first place: Party leaders will go to any length to advance their own interests. Their selfish and questionable actions have resulted in nothing but disappointment from the voters of our Commonwealth time and time again.

While this particular incident implicates Republican leadership, both parties are guilty of this behavior. Last year, Governor Patrick used backroom deals to empower himself with the ability to choose a successor to the late Senator Kennedy. Now, Charlie Baker and his Republican cohorts have been plotting to undermine the integrity of this race in an attempt to mislead the voters.

I have spent the last 13 months running an honorable campaign by discussing the issues that matter most to Massachusetts families: creating jobs, lowering taxes and growing our economy. Now, I am discovering that I was not only fighting my opponents here at home but larger interests nationally.

On the campaign trail, Charlie Baker has been preaching that there are two sets of rules, one for regular people and one for people on Beacon Hill. Well it is clear now that Charlie lives by the very insider rules he so conveniently speaks out against.

Now that this has been uncovered, it is incumbent upon all of us to question everything my Republican opponent has said during this race. If this is the kind of underhanded, backroom tactics the Washington Republicans and Charlie Baker will use to get elected, we certainly can’t trust him to govern.

I will not let the insider actions by former members of my campaign, the Republican Governors Association or Charlie Baker dictate the remainder of this race, and I will continue to focus on the important issues facing our state.

I think the position of governor has everything to do with character. If this is the type of character my Republican opponent will use – he’s probably right in saying this is a two man race: between Deval Patrick and myself.

From the Baker Campaign:

So far as we can tell from media reports, Tim Cahill has filed a lawsuit to prevent public disclosure of e-mails that indicate his campaign may have been illegally coordinating with state employees at the Treasury. We did not receive any written internal information regarding the Cahill campaign, period, but call on the Treasurer to come clean about improper activities in his campaign rather than trying to cover them up through a lawsuit.

The emails amongst former Cahill staffers talking about ways to undemine his campaign are here.

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Governors Race

No new polls in the Massachusetts Governor’s race, but there are more ads. The campaign has been relatively quiet, with Baker trying to make hay out of Patrick stating a “preference” for a graduated income tax in Massachusetts. From the State House News Service:

“I’d like to know who Governor Patrick plans to raise taxes on next,” Baker said in a statement. “He’s already begun his next campaign to raise taxes in Massachusetts and the voters should know who’s going to be hit with his next tax hike.”

The Patrick campaign backpedaled on the issue, saying that while the Governor may favor a graduated tax system he had no plans to file the necessary legislation in support of such a system.

Goldstein said Patrick had no plans to file legislation in the next four years to create a progressive income tax system, if re-elected.

“Once again the Baker campaign has sunk to distortion and demagoguery to distract voters from Baker’s record of Big Dig debt and skyrocketing health care premiums,” Goldstein said.

And the Professional Firefighters of Massachusetts, having endorsed Governor Patrick, are objecting to the appearance of some firefighters in the new Baker ad. From the Herald:

“The campaign never contacted us, nor did we at any point sign release forms or grant permission to the campaign for the use of this footage that clearly gives the impression of an endorsement,” said PFFM president Robert B. McCarthy.

The Baker campaign dismissed the issue, and fired a volley back at the unions.

“We are well aware of the unions that are lining up behind Gov. (Deval) Patrick to try and protect the status quo,” said Baker spokeswoman Amy Goodrich. “I’m sure it comes as a surprise to the union leadership that many of their members do not agree with them.”

I said relatively quiet.

Read the Herald story here.

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Rubio Leads in FLA

Tea Party favorite Marco Rubio continues to lead in Florida, with some polls having him up by double digits. Rasmussen has him leading with 41% of the vote, to Governor Charlie Crist at 30%, and Democrat Kendrick Meek at 21%. In Florida the three way dynamic favors the Republican, as Rubio has never broken 50% while the center/left splits 51% between Crist and Meek.

Crist, seeing the race slipping away, has launched an attack on Rubio on the issue of Social Security. Rubio has said he would consider raising the retirement age as a fix to the system. Crist, while offering no real solutions, has seized upon this to launch an attack that has resonated in Florida in the past. And both Crist and Meek targeted Rubio in the last debate, held this week. Crist has Rubio’s attention, as Rubio came right back with an ad hitting Crist for launching the Social Security attack. And Karl Rove’s new group has weighed in as well, doing an ad buy in FLA targeting Crist. A potential Democratic win is slip sliding away.

Read the Politico story here.

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Additional Terms of the Caritas Sale

The additional terms of the Caritas sale, outlined in today’s statement by Attorney General Martha Coakley. I have attached the full statement below.

Initial Terms of the APA and the Transaction
(a) Purchase consideration for the assets to be transferred of between $430
million and $450 million consisting of Steward’s (i) assumption of all pension obligations
for approximately 13,000 current and former Caritas employees, (ii) payment of virtually
all of Caritas’ outstanding debt, and (iii) assumption of certain liabilities.

(b) Steward will spend or commit to spend, within four years from the
Transaction closing date (the “Closing”), no less than $400 million in capital
expenditures to promote the financial health, well-being, or growth of the health system
post-Closing. If Steward fails to so spend or commit to spend no less than $400 million,
then Steward shall donate such shortfall to a charitable foundation selected by the
Attorney General.2 Part of this $400 million commitment is to complete funding of
approximately $116 million in major construction projects identified by Caritas as
priority capital projects, which have been initiated at the Caritas Hospitals.

(c) Steward will adhere to and comply with the current Caritas policies
concerning indigent and charity care, which Caritas estimates at approximately $37
million annually.

(d) Steward will maintain community benefit expenditures at the current level
for Caritas Hospitals, which Caritas estimates at approximately $26 million annually,
plus an additional $3 million annually in pastoral care and related services.

(e) Steward will continue to accept Medicare and Medicaid patients consistent
with current practices, to accept emergency room patients regardless of ability to pay
consistent with relevant law, and to provide culturally and linguistically appropriate
services consistent with those currently provided at the Caritas Hospitals.

(f) Steward will not close, or limit the general purpose of, any Caritas
Hospital within three years from the Closing.

footnote 2 In the unlikely event that this occurs, the Attorney General will establish a selection committee to advise her. The membership of that committee will include representatives of the Department of Public Health and health care providers from, and representatives of, the affected communities.

(g) Steward will not engage in any initial public offering, sale, issuance of
debt for the purpose of making dividends or distributions, or certain other fundamental
transactions (the “Prohibited Transactions”) within three years from the Closing.

(h) The Catholic identity of the Caritas Hospitals will be preserved through a
Stewardship Agreement between Steward and RCAB dated April 30, 2010 (the
“Stewardship Agreement”), which, among other things, provides that Caritas Hospitals
will continue to abide by the Ethical and Religious Directives for Catholic Health Care
Services (the “Directives”).

(i) Steward will preserve jobs for the approximately 12,000 Caritas
employees by offering continued employment on the same terms, and Steward will
recognize existing union and collective bargaining agreements.

(j) All commitments made in the past to Caritas donors will be honored.

(k) Local governing boards for each Caritas Hospital will be continued, in
function and general composition.

(l) Steward will be a health care system with headquarters in the greater
Boston area. Current Caritas senior management is expected to remain in place, two
current Board members have agreed to serve on the initial Steward board (the “Steward
Board”), and one additional Massachusetts based Steward Board member is expected to
be appointed. It is anticipated that local participation and continuity will help promote
stability.

Additional Terms of the Amended APA and the Transaction
In addition, at the urging of the Attorney General, Steward has agreed to the
following.
(m) The purchase consideration, referenced in subsection (a), above, has been
increased by $45 million to $495 million to cover, among other increased liabilities,
increases in the pension liability since the APA was first executed in March.

(n) During the three-year hold period referenced in subsection (g), above,
Steward has agreed to expand the scope of Prohibited Transactions to include selling or
transferring a majority ownership interest in, or all or substantially all of the assets of,
any of the Caritas Hospitals.

(o) During the no-close period referenced in subsection (f), above, Steward
has agreed that it will not close or reduce the number of any inpatient psychiatric and
detoxification hospital beds in any of the Caritas Hospitals. The need for inpatient
psychiatric and detoxification hospital beds is critical and their availability, in part due to
unfavorable reimbursement, is well-below demand. Any further reduction in these
services would have a significant negative impact on the ability of the Commonwealth to
provide for mental health services.

(p) In addition to agreeing to maintain inpatient psychiatric beds, Steward has
also agreed to conditionally extend the three-year period referenced in subsection (f),
above, for an additional two years. During that additional two-year period, Steward may
not close a Caritas Hospital, limit its general purposes, or close any of its inpatient
psychiatric and detoxification beds, unless the following conditions are met: the Caritas
Hospital has experienced two consecutive years of negative operating margins, an
eighteen-month review and reporting period has been completed, and a six-month closure
notice has been provided. This provision will ensure that any closure during years four
and five post-Closing will occur only after a robust and open dialogue in which all
stakeholders will have the ability to seek both solutions to the underlying problems and
alternatives to the closure.

(q) Steward will comply with the Recommended Hospital Debt Collection
Practices set forth in the Attorney General’s Community Benefits Guidelines for Non
Profit Hospitals.

(r) Community benefit and charity care provisions set forth in the APA will
apply to any successor-in-interest to Steward; and further, any Massachusetts hospital
acquired post-Closing by Steward from a for-profit entity will, at a minimum, comply
with the for-profit hospital’s then-existing community benefit and charity care
obligations.

(s) The Attorney General shall have the right to enforce the Pension Transfer
Agreement (described in Section V(b), below), and certain post-Closing provisions of the
APA related to the public interest.

(t) Any enforcement action brought by the Attorney General under the APA
or any of the ancillary agreements (described in Section V, below) shall be brought solely
in the courts of the Commonwealth of Massachusetts.

(u) Steward will assure and fund the orderly reorganization, dissolution, and
windup of the Caritas entities. This will assure that remaining assets, including
endowment funds, are appropriately segregated and used for appropriate purposes.

(v) Steward, and any successor-in-interest to Steward, will, notwithstanding
its for-profit status, fully cooperate with any investigation, inquiry, study, report, or
evaluation conducted by the Attorney General under her oversight authority of the nonprofit
charitable hospital industry to the same extent and subject to the same protections
and privileges as if Steward were a public charity.

(w) Steward will cooperate with, and fund with a Closing payment of $1.5
million, a five-year monitoring, assessment, and evaluation of the impact of the
Transaction on health care costs and services within the communities served by Steward.

Certain aspects of this monitoring will be conducted by the Attorney General, and certain
other aspects by the Department of Public Health, consistent with an Assessment and
Monitoring Agreement with the Attorney General (described in Section V(c), below).
The Attorney General received formal notice of the Transaction from Caritas, as
required by G.L. c. 180, § 8A(d)(1), in a letter dated May 5, 2010, which initiated this
review.
statement_of_the_attorney_general_caritas_christi_transaction

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Sales of Caritas Approved

The Eagle Tribune is reporting that Attorney General Martha Coakley will approve the sale of Caritas to Cerebus “with conditions”. The paper reports that Senator Steve Baddour made the announcement after a call from Attorney General Coakley.

The Attorney General’s office will approve the sale of the Caritas Christi Health Care chain, including Holy Family hospital, said state Sen. Steven Baddour.

Baddour, D-Methuen, said the state agency called him this morning to say the $850 million sale of the hospital chain to the private-equity firm Cerberus Capital Management will go forward with “agreed upon restrictions.”

“This is great news, great news for the Valley,” Baddour said.

The full Tribune story is here.

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Suntron Opens in Methuen

Yesterday I attended the ribbon cutting for Suntron, a company that has opened a manufacturing facility in Methuen at Griffin Brook Park. It is great news for Methuen, with the firm slated to add 100 manufacturing jobs at that facility. I was joined by Lt. Governor Tim Murray, Rep. Niki Tsongas, and State Reps Linda Dean Campbell and Barbara L’Italien for the ceremony. Adding jobs should be priority one for all, and manufacturing jobs are especially desirable. Thank you to Suntron for investing business capital in Methuen, and thank you to Governor Patrick and Rep. Tsongas for their help as well. The press release from Suntron is below.

Suntron Corporation Announces Northeast Facility Grand Opening Event
9/30/2010 12:00:00 AM
Methuen, MA – September 30, 2010 – Suntron Corporation, a leader in the area of integrated Electronics Manufacturing Solutions (EMS) and Commercial Off-The Shelf (COTS) technology, with facilities across the US and in Mexico, will cut the ribbon at its new manufacturing site in
Methuen, MA at 1:00 PM, October 05, 2010.

This new facility is the culmination of months of effort to combine the work previously done in two separate sites, into a larger, newer, state of the art facility. “The move to combine our northeast services under one roof clearly demonstrates Suntron’s commitment to the region and to our customers,” Roger White, VP and General Manager of the Eastern Region, stated. “We have expanded our box build manufacturing footprint and with significant capital investment, we are expanding our circuit card capacity and capabilities. I look forward to introducing everyone to the exciting new facility.”

Mike Churchill, VP of Operations for Suntron, commented on the teamwork needed to put this together. “We had amazing cooperation from so many local people and organizations, including our team of realtors from Colliers Meredith and Grew, the City of Methuen, the local Merrimack Chamber of Commerce, and the Massachusetts Business Development and Business Services groups. Their total support and guidance allowed us to accomplish our objectives in a very timely manner and we look forward to introducing everyone to our exciting new facility.”

The grand opening and ribbon cutting ceremony will be hosted by Ed Wheeler, President and CEO of Suntron. Lt. Governor Timothy P. Murray, Congresswoman Niki Tsongas, Mayor William M. Manzi, III and Joe Bevilacqua, President and CEO of the Merrimack Chamber of Commerce will all participate at the event. Factory tours will begin immediately following the ceremony.

For further information on this event and the day’s agenda, please visit http://www.suntroncorp.com.

About Suntron Corporation:
Suntron delivers complete manufacturing services and solutions to support the entire life cycle of complex products in the medical, aerospace & defense, Industrial, Networking & telecommunications, and semiconductor capital equipment market segments. Headquartered in Phoenix, Suntron operates four full-service manufacturing facilities and two quick-turn facilities in North America. Suntron’s services include engineering services, printed circuit card assembly, box build, large scale and complex system integration, COTS and test.

Suntron Grand Opening

Posted in Fifth Congressional, Methuen | Tagged , | 1 Comment

The Connecticut Senate Race

One of the more interesting Senate races in the country is going on in Connecticut, where Republican Linda McMahon is locked in a close struggle with State Attorney General Dick Blumenthal. Blumenthal started this race as a prohibitive favorite, and has been backsliding ever since. Blumenthal has been plagued by having (on multiple occasions) misrepresented his military record. McMahon, the owner of the WWE, is carpet bombing Blumenthal on the issue, releasing a new ad that directly calls him on the his distortion. In the last debate Blumenthal was forced to apologize to the voters when confronted on the issue by McMahon. McMahon’s campaign is also making hay out of Blumenthal’s response to a question, during that same debate, on how to create a job. His answer was an embarrassment. It is posted below.

Blumenthal’s large lead has now evaporated, and in a very blue state Linda McMahon has pulled within five points in the most recent Rasmussen survey. Blumenthal leads that race, with leaners included, by a 50% to 45% margin. Quinnipiac has it even closer, with McMahon pulling within 3 points. This should have been an easy victory for the Democrats. Instead the nominee doesn’t know that jobs are created by the private sector, and has repeatedly lied about his military service. McMahon has been an exceedingly disciplined candidate, staying on message and on target. Yes she has the advantage of wealth, but we have seen some pretty terrible wealthy candidates. She has a chance, and she can thank Dick Blumenthal for opening what should have been a closed door.

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I Am Not a Witch- Follow the Tea

As part of our continuing effort to “follow the tea” today we look at the Delaware Senate Race, with Democrat Chris Coons leading Tea Party favorite Christine O’Donnell by 15 points, 54% to 39% in a recent Fox News survey. That same survey asked about a hypothetical race between Democrat Coons and defeated Republican Mike Castle and it showed Castle with a 15 point lead over Coons. This was a race that the Dems had written off, figuring that they did not have a candidate that could beat Castle. Looks like they were right. But the Republican primary voters took care of that for them. If Republican lose control of the Senate by one vote then the O’Donnell nomination may come back into sharper focus. Maybe Karl Rove had this one right. O’Donnell’s new ad, where she denies being a “witch” is below. Great stuff.

de_topline

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Rahm for Mayor Part 2

Just cannot help myself. Rahm is jumping into the fray in Chicago quickly, with a website and you tube channel already established and a listening tour set to begin. Rahm is sucking all of the oxygen out of the room already while other potential candidates watch and stew at the media assault. Good start to his first week on the campaign trail. Read the Chicago Sun Times story here. The Washington Post story is here.

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The President on Clean Energy

President Obama spent his weekly address talking about renewable energy and the jobs that come with that growing industry. American jobs for American workers, in an area that is vital to the future of the United States in so many different ways. The President is on the right track here, despite the naysayers. And for those who advocate for only utilizing the source of power that is the cheapest today that attitude will leave us in the grips of a dependence on foreign oil that endangers the national security interests of this country, now and especially in the future. As China leaps ahead of us in this field we are being positioned to convert to renewables, and then purchase all of the tools to do that from China. From the New York Times:

These efforts to dominate renewable energy technologies raise the prospect that the West may someday trade its dependence on oil from the Mideast for a reliance on solar panels, wind turbines and other gear manufactured in China.

“Most of the energy equipment will carry a brass plate, ‘Made in China,’ ” said K. K. Chan, the chief executive of Nature Elements Capital, a private equity fund in Beijing that focuses on renewable energy.

The President has this one right, and Republican pledges to halt critical American investment in this field has to be considered as maybe the most destructive policy plank in their playbook.

Read the New York Times story here.

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