Yesterday the City Council met in Saturday session to vote a municipal budget, which was approved unanimously. I will post the full budget here tommorow, and talk a little bit more on some of the specifics. The School budget was rejected by City Council, and the School Committee will meet tommorow night to try to finalize that document. My thanks to the municipal unions, who worked with us to produce a balanced budget that requires sacrifice from all, but entails no layoffs or tax hikes. Read the Tribune story here.
The House passed the Markey-Waxman bill yesterday by a narrow margin, with the bill prevailing by a 219-212 vote, with eight Republicans voting to support the measure, and 44 Democrats voting against. It was a tough political slog to get this bill through the House, with plenty of dealmaking to achieve the victory. The Wall Street Journal gives a short bill description. I have attached the full bill below.
The draft bill, sponsored by Democrats Henry Waxman and Ed Markey, aims to cut U.S. greenhouse-gas emissions by 83% compared to 2005 levels by 2050. That’s the same target President Obama has, but the House bill sets more aggressive short-term targets, such as a 20% reduction by 2020 and a 42% cut by 2030.
The cap-and-trade bill would cover about 85% of the U.S. economy, requiring businesses like power companies and steel mills to get permits to cover their emissions. After 2020, that net could get wider: The bill would allow the president to make even smaller industrial operations subject to the cap. But the bits of the economy left outside the cap—companies emitting fewer than 25,000 tons of greenhouse gases—aren’t off the hook. The bill will require emissions reductions in other ways, such as through direct regulation by the EPA.
House Republicans blasted the bill, citing costs and potential job losses to countries without climate regulation. From the Washington Post:
House conservatives blasted the more than 1,300-page bill, saying it would add crushing costs to energy and ship millions of jobs to countries such as China that do not have climate regulations. They also said there was a lack of clarity in the bill’s provision to create carbon offsets, certificates in which companies in the United States and overseas could claim credit for avoiding emissions or taking them out of the air.
“In the midst of the worst recession in a generation, this administration and this majority in Congress are prepared to pass a national energy tax,” said Rep. Mike Pence (R-Ind.).
President Obama used his weekly address to talk about the bill, which will face some difficult sledding in the Senate. And Al Gore issued a statement as well:
“Speaker Nancy Pelosi, the Leadership of the House, and Chairmen Waxman and Markey have, through their leadership, secured an important bipartisan victory for the American people.
The American Clean Energy Security (ACES) Act is one of the most important pieces of legislation Congress will ever pass. This comprehensive legislation will make meaningful reductions in global warming pollution, spur investment in clean energy technology, create jobs and reduce our reliance on foreign oil.
The next step is passage of this legislation by the Senate to help restore America’s leadership in the world and begin, at long last, to put in place a truly global solution to the climate crisis.
We are at an extraordinary moment, with an historic opportunity to confront one of the world’s most serious challenges. Our actions now will be remembered by this generation and all those to follow – in our own nation and others around the world.”
I am happy to be able to announce that I have reached a tentative accord with Methuen’s Patrolman’s Union that will avert the twenty layoffs that had been scheduled to occur with the adoption of the FY2010 Municipal budget. I would like to thank Union President Larry May for his willingness to keep talking about solutions even as we disagreed publicly. The Union has scheduled a ratification vote for this afternoon.
I can announce that the Firefighters Union has ratified the tentative agreement that we had reached, and our budget recommendations to City Council will now reflect that agreement, allowing us to restore the fifteen Firefighters that were scheduled to be laid off July 1. My thanks to Union President Tim Sheehy, who has worked day and night with me over the past month to hammer out an agreement. I will have more after adoption of the municipal budget.
Governor Patrick indicated in today’s Globe that he is prepared to sign both the Transportation Reform bill, as well as the Ethics Reform bill passed by the Legislature. And since he will sign both he appears to have no choice but to sign the sales tax increase, and he acknowledged as much in today’s Globe.
Speaking at a late-afternoon press conference, Patrick did not say explicitly that he would sign the sales tax measure, but he strongly suggested he would do so.
“I will keep my end of the bargain,’’ he said. “They seem to be keeping theirs.’’
I take this as a victory for the Governor, even though he will take heat in some quarters for signing a tax increase. His veto threat moved the Legislature towards his position on both transportation and ethics, and while I am sure he considers both bills slightly imperfect he largely got what he needs. He can now do what he does in his press conference statement, which is to take a victory lap.
Michael Jackson passed today after a long strange ride through life. Here he is from Thriller, his masterpiece, teaming with guitar god Eddie Van Halen to produce one of the albums great songs.
City Council met last night to adopt the Municipal budget, and got through a couple of sections before recessing until Saturday morning at 9 a.m. I have not posted on the municipal budget because of the changing nature of the document, and due to the around the clock negotiations with the nine city side municipal unions. I was able to announce last night that we have reached agreements with seven of the nine unions, with a tentative deal set with the eighth, Methuen’s Fire Union. These labor deals are reflective of my request that each unit take 10 percent cuts in wages in order to avoid layoffs. With the seven deals and the eighth pending the City of Methuen will achieve several notable goals.
1) For every layoff notice that went out these labor agreements will result in a callback, meaning that aside from Patrolman there will be no layoffs in Methuen. I welcome additional negotiations with the Patrolman’s Union that could avert the need for any layoffs in their unit.
2) My budget, as submitted, does not raise taxes.
3) Methuen’s administrative staff will all take 10 percent reductions in base salary, including the Mayor. My proposal for reductions included all staff, and our budget reflects these reductions. Again the staff voluntarily agreed to take wage cuts to save jobs and continue to provide a high level of municipal services. These cuts are not waivers of prospective salary increases, but real reductions.
I will post the entire budget as submitted here very shortly. I am proud of my staff for leading by example, and I am truly grateful to the employees of the City of Methuen who have agreed to take painful reductions in order to save jobs. I will have more to say in a post in the next day or so. I apologize for my lack of postings. It has been a busy three weeks. Read the Eagle Tribune story here.
With the clock running Governor Deval Patrick faces some key political choices in the next few days, including whether to sign the Transportation Bill, and what to do on the state budget. The Governor has threatened a veto of the sales tax unless ethics reform is delivered, and that has not happened as of yet. Additionally the Governor, although praising lightly the Transportation Bill, has not as of yet indicated he will sign. Amidst this jockeying the Senate has wheeled out Senator Steve Baddour to let it be known that the Senate may choose not to try to override a sales tax veto, and just walk away from the issue, which would blow a $600 million dollar hole in the budget. The Governor would be forced to make additional cuts equal to the lost revenue, which would be a political disaster for him.
Baddour’s threat was explicit, carried today by Globe columnist Scott Lehigh. From the Lehigh column:
“There are a bunch of us who are suggesting to the Senate president that we should not take up an override,’’ says Senator Steven Baddour, Democrat of Methuen. (As a border legislator from a more conservative district, Baddour voted against the sales tax increase the first time around.)
Without such an override, a large hole would open in the budget – one that would require more cuts, and which would set in motion sizable toll increases.
“Let him face toll payers and taxpayers and say, ‘OK, as a result of my political decision to veto the sales tax increase, tolls are increasing, fares on the MBTA are going to go up, and I have to cut a billion dollars out of the budget,’’ says Baddour.
You can be comfortable in knowing that the Baddour thrust was authorized by the Senate President, and continues the game of political chicken that is ongoing between the Senate and Governor. It is a dangerous game, but if the Senate threat is credible then the Governor is in a terrible position. For those who think that it is the Senate Presidents move think again. She is holding some big political cards. The only question is will she use them if the Governor calls her bluff? Your move, Governor.
The President talks about financial reform and oversight in his weekly message. There can be no doubt that financial chicanery has put this nation in a deep bind, and renewed and vigorous oversight of the financial sector is something that is necessary and likely will have some broad support.
Bill Manzi.com 