Congresswoman Niki Tsongas is holding a “telephone” town hall meeting tonight which will focus on the recently passed Health Care Reform bill. It is, in essence, a large conference call, with the Congresswoman will make a presentation, and I believe will take questions from the participants. The call will begin at 7:00 p.m.
The phone number you should call to participate is 888-886-6602, and enter 14420# as an access code.
The City of Methuen, along with its design team of Finegold Alexander and Owners Project Manager KBA/Trident, made a presentation to the Massachusetts School Building Authority a few weeks back on the progress of the schematic design for our High School. We will be making a final presentation on May 26th and hopefully receiving MSBA approval for the full project. I have attached the Powerpoint presentation in pdf form below.
The Social Security Trust Fund appears to be on course to pay out in benefits more than it takes in this year, something that projections had estimated would happen in 2016. A recent New York Times article detailed the quicker than anticipated decline.
Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances.
“When the level of the trust fund gets to zero, you have to cut benefits,” Alan Greenspan, architect of the plan to rescue the Social Security program the last time it got into trouble, in the early 1980s, said on Wednesday.
That episode was more dire because the fund could have fallen to zero in a matter of months. But partly because of steps taken in those years, and partly because of many years of robust economic growth, the latest projections show the program will not exhaust its funds until about 2037.
The Times article, linked below, appears to take the position, like Greenspan, that since the Trust Fund has “assets” that will last into 2037 there is a little time to create a fix for Social Security. The article pays scant attention to the fact that these “assets” are U.S. Government bonds which must now be redeemed for cash to pay benefits. So while the “Trust Fund” is technically liquid the U.S. Government will now need to borrow or tax for the amount redeemed annually.
For accounting purposes, the system’s accumulated revenue is placed in Treasury securities.
In a year like this, the paper gains from the interest earned on the securities will more than cover the difference between what it takes in and pays out.
Mr. Goss, the actuary, emphasized that even the $29 billion shortfall projected for this year was small, relative to the roughly $700 billion that would flow in and out of the system. The system, he added, has a balance of about $2.5 trillion that will take decades to deplete. Mr. Goss said that large cushion could start to grow again if the economy recovers briskly.
Interest paid by U.S. taxpayers. The fiscal plight of the country is serious and will eventually require actions that will be politically difficult, to say the least. Today’s Fred Hiatt column in the Washington Post reflects the same concerns.
Read the New York Times article here.
Elsy Naveo
Reason(s) for Recognition: Elsy Naveo is currently enrolled in French IV Honors at Methuen High School. This year, she was inducted into the French Foreign Language Honor Society for outstanding performance in the language. Elsy is a highly gifted student of foreign languages. A native speaker of Spanish, Elsy chose to high road four years ago as a freshman, by enrolling in and pursing studies of a third language. She has continued to develop her proficiency in French over the last three years. Elsy’s exceptional strength and talent for languages is clearly demonstrated by her achievement on the Spanish SAT subject test on which she achieved a perfect score of 800.
In addition to her work in Honors French, Elsy has challenged herself to pursue studies in AP Chemistry and AP English. On top of the demands of these rigorous courses, Elsy works twenty-five hours a week at Holy Family Hospital to make money for college and to contribute to her family. Whenever asked in French to talk about what she did over vacation or the weekend, Elsy’s response always includes work at the hospital and schoolwork.
In an effort to promote diversity and to assist students of other languages in their adjustment to Methuen Schools, Elsy participated in the multicultural club last year. Her efforts to be of service to her community have extended beyond the walls of the high school into the greater community as well. As a volunteer for the YMCA, Elsy promoted health programs for women in the Lawrence community and as a member of the Youth Group of St. Mary of the Assumption, Elsy participated in fun raising activities as well as food and clothing drives for the victims of the earthquake in Haiti.
For these reasons, the Foreign Language Department is proud and honored to offer the S.O.A.R. award to Elsy Naveo.
Charlie Baker released his municipal health care plan yesterday, and it bears close resemblance to the plan put out by the new Mayor’s coalition. Baker is trying to seize some fertile political ground, and has even adopted our call for a referendum in 2012 if legislative action is not forthcoming. It is the correct position, and along with pension reform addresses the two main drivers of municipal costs. Good job by Charlie Baker. The plan is below.
Municipal Health Benefits Relief Act
Summary
Massachusetts’ cities and towns have been hit hard by the economic crisis and have faced significant cuts to their local aid the last two years. Communities have limited options to deal with these cuts, and local governments across the state have had to make difficult decisions to balance their budgets. Job losses at the local level have directly impacted essential services such as public safety and education. Communities have also responded to declining revenues with cuts to core municipal services, increases in local fees and the adoption of local option meals excise taxes. Significant changes are needed to help cities and towns deal with the enormous fiscal problems they are facing today, especially if taxpayers want to avoid additional taxes, fees hikes and cuts to local services.
Municipal Health Benefits Relief
Municipal health insurance relief is needed to provide communities with the power to update their health insurance plans outside of the collective bargaining process. This authority will help local governments manage escalating operating costs and declining state aid.
Lawmakers on Beacon Hill must take immediate action to enact these changes now. If lawmakers refuse to support these reforms on their own, support must be given to a referendum to put plan design on the 2012 ballot. Massachusetts’ voters should be afforded the opportunity to save taxpayers in this state up to $100 million if lawmakers can not make this decision on their own.
Amendments
1. Amend state law to allow municipalities to join the state’s Group Insurance Commission without union approval
State law was changed in 2007 to allow cities and towns to join the state’s Group Insurance Commission (GIC), provided they receive 70 percent of union approval. This requirement gives unions a veto in the approval process. Joining the GIC nets substantial savings for the taxpayers because the state’s health insurance premiums are lower than municipal premiums. For example, according to a Boston Foundation report, the City of Melrose joined the GIC in July 2009 and is likely to save between $1.6 million to $1.8 million. To date, only 19 communities have joined the GIC because of the union approval requirement. Cities and towns must be given the authority to join the GIC without union approval.
2. Amend state law to give municipalities plan design authority
Currently, municipalities are required to negotiate and receive union approval to implement changes within their health insurance plans even though the state of Massachusetts does not have this requirement. Local governments must collectively bargain and obtain union approval for basic changes in health insurance plans such as co-pays and deductibles. A recent study by the Boston Foundation estimates that giving cities and towns plan design authority will save taxpayers up to $100 million. Cities and towns must be given the same authority that the state has to change, update and modernize the design of municipal health insurance plans, provided the plans are comparable to the state plans offered to state employees.
The Senate Chair of Ways and Means, (the great and powerful) Steve Panagiotakos has announced that he will not be a candidate for re-election to his State Senate seat. This is a huge loss for his Senate District, and for the Commonwealth as well. Senator Panagiotakos has been, in my opinion, a truly outstanding Senator. As Chair of Ways and Means he has had his hand on the wheel during a truly difficult time for our Commonwealth, and has done a great job navigating the treacherous fiscal waters we are in. We wish him the best in his future endeavors.
Former Lowell Mayor Eileen Donoghue has announced that she will run for the vacant seat. Donoghue is a strong candidate, and the field appears to be clearing for her a bit, with Lowell Reps Tom Golden and Kevin Murphy announcing that they will run for re-election to the House rather than run for the Pangy seat.
And finally Phoenix political writer David Bernstein has penned a column speculating that UMass Lowell Chancellor Marty Meehan will become, with the backing of the Governor, the President of the UMass system, replacing outgoing President Jack Wilson. And that would leave the job of Chancellor of UMass Lowell open for new Chancellor Steve Panagiotakos. No inside information here but Bernstein certainly paints a very plausible picture. Chancellor Panagiotakos. Has a nice ring to it.
The Florida Senate race has taken a dramatic turn, with conservative Marco Rubio opening a substantial lead over Governor Charlie Crist. Crist was a huge favorite coming into the race, but Rubio has tapped into conservative revulsion at Crist endorsing President Obama’s stimulus package. Rubio has become a nationwide conservative favorite, and he has put Crist on the defensive. But recent news stories detailing Rubio’s questionable financial dealings have Crist ready to utilize his large warchest to highlight the self dealing engaged in by Rubio. This primary is a nationwide race to watch. Rubio hit back at the recent Crist attack ad with one of his own. Should be a rocking few months in Florida, since this primary is not until August.
A very interesting post by David Frum, in which the former Bush speech-writer heavily criticized the Republican leadership for tactics that led to a huge Democratic victory on health care. Frum pointed out that Republicans, by stoking and playing to the anger, left its leaders in a position where a real deal on health care was just not possible.
We followed the most radical voices in the party and the movement, and they led us to abject and irreversible defeat.
There were leaders who knew better, who would have liked to deal. But they were trapped. Conservative talkers on Fox and talk radio had whipped the Republican voting base into such a frenzy that deal-making was rendered impossible. How do you negotiate with somebody who wants to murder your grandmother? Or – more exactly – with somebody whom your voters have been persuaded to believe wants to murder their grandmother?
Frum’s indictment is something that the politically wise class of GOP leaders have long recognized, and that is that a Party led by talkmasters must be doomed to failure. No question that those talkmasters whipped folks into a frenzy over healthcare. But those same independents that have soured on Democrats will not likely buy into the Beck/Limbaugh program for very long. And new polling has already shown an uptick in voter support for health care reform. The Republicans pushed all of their chips in on health care. President Obama now sits with that really big pile of chips in his hands.
Read the Frum post here.
METHUEN CITY WEBSITE WINS COMMON CAUSE AWARD WITH DISTINCTION
City’s Informative Website Honored for Fourth Consecutive Year
The Massachusetts Campaign for Open Government (commoncause.org/egov), a project of the non-partisan group Common Cause, has long championed the cause of increased internet access to important governance public records. As part of this initiative, the group annually examines the internet presence of all 351 cities and towns in Massachusetts to learn whether they post essential information in six major categories.
On March 16, 2010, Common Cause recognized the Official Website of the City of Methuen, http://www.cityofmethuen.net, with its Award with Distinction, the fourth consecutive year that Methuen has received this recognition.
In order to receive this special honor, communities must post several key civic records including the governing body’s agenda and minutes, budget information, general by-laws, archived governing board agenda and minutes, zoning by-laws, school committee agendas and minutes, agendas and minutes for an additional board or committee, and a calendar with all public meetings.
On Tuesday, March 16th, Common Cause Massachusetts held its annual e-Government Awards in the Nurses’ Hall in the State House. The group extended its congratulations to Methuen for its work in informing citizens and in maintaining an up-to-date website. Methuen has been recognized as a Common Cause “Superstar” community.
The City of Methuen website now features live and on-demand webcasts of City Council, Community Development Board, School Committee, Zoning Board and Historic District Commission meetings. In addition, http://www.cityofmethuen.net offers an audio listen link on all key pages to increase site accessibility.
All of these current and future options have been implemented in-house by the City of Methuen Information Technology Department with no outsourcing, and are designed to increase access to local government in a convenient and user-friendly manner.
Citizens are encouraged to visit the award-winning http://www.cityofmethuen.net to take advantage of these exciting additions. For more information, contact the Mayor’s Office at 978-983-8505.
Bill Manzi.com 