To Tell the Truth

Posted on June 29, 2009 by billmanzi

A new feature that will allow me to shed the light of day on some comments made over at the Eagle Tribune site. Yes I do read them, and lets get started with our old friend and candidate for political office Jack Burke. Jack did a posting on the Tribune story that detailed the legal issues surrounding a City Council rejection of the School budget. That story was prompted by a memo I had sent to the full City Council on that subject. Here is the Burke post in full.

The saddest part of this story is that the Mayor acts as if it is the City Council fault.
He seems to forget that he is the CHAIRMAN of the SCHOOL COMMITTEE. He has not pushed for the School budget.
When I read the story and all the associated stories about the City budget and school budget, there is one central player, Mayor Manzi.
He is on center stage and acts as if all is happening around him and he is just doing the best he can, poor man, to work with what he is given. He is the Chief Operating Officer of the City, as he is wont to remind one.
Another year with stop gap measures. One time revenue or one time negotiated freezes.
When will we get a comprehensive and affordable plan that will provide the services that the citizens require at a price they can afford?
We don’t even have a Capital Improvement Plan. No long term plan. Just a year to year quick fix approach. Is this what you bargained for?

Lets get started then. I have posted my memo to the Council, in full, below. This memo was sent because of several City Council inquiries relative to the legal issues surrounding a Council rejection of the school budget. So lets see if we can understand Burke’s point here.

1) The City Council asks me a question.
2) I answer the question by doing the research necessary, and relating information given by the Massachusetts Department of Revenue.
3) Jack Burke says I am blaming the City Council.

That unedited memo is below. You can be the judge. Where in it do I blame the City Council for anything? We should strive to Tell the Truth Jack, not invent things for political gain.

There was some question about the legal effect of the City Council rejection of the Methuen School Department budget. In response please accept the following. My Chief of Staff, Attorney Matthew Kraunelis, discussed this issue with Kathleen Colleary, an attorney for the Department of Revenue. Attorney Colleary informs us that without a City Council approval of the School Department budget, the Methuen School Department will have no legal ability to pay any bills after June 30th. On that basis, the City Auditor will be forced to reject any School Department requisitions for payment, including payroll, after June 30th. Attorney Colleary also informed us that under such conditions Methuen would be in jeopardy of violating the Prompt Payment of Wages law and also subject to court action by the Attorney General of the Commonwealth to compel payment of the net school spending amount. Attorney Colleary also clarified the issue of a so-called one-twelfth budget. She informs us that no such option is available to municipal school systems unless the system is regional. One-twelfth budgets would have to cover the entire budget, not just a certain portion of a budget, such as the school portion. I hope this clarifies some of the questions raised by Council at the Tuesday meeting. Do not hesitate to call with any additional questions.

The Burke posting also refers to one time revenues being used. I hope to post the municipal budget today, but I can tell you that unlike years gone by this budget was not balanced with one time revenues. In fact for the first time in years we have achieved structural balance. We should strive to Tell the Truth Jack, not invent things for political gain.

Finally Jack criticizes the nine collective bargaining agreements reached with our unions because they are for one year.

One time revenue or one time negotiated freezes.

But they are one year labor contracts that do not call for freezes but rather for ten percent cuts in base wage and benefits. Senior staff took major pay cuts, not freezes. And since all city side contracts would have been up on June 30th of this year my Administration has done what has never been done before in Methuen, which is to negotiate nine full extensions for one year before the expiration of the existing collective bargaining agreements. We have produced a balanced budget with no layoffs, and done so while protecting the property taxpayers of Methuen. And yet, despite the criticism, I did not hear Mr. Burke calling for the Council to reject these agreements or vote down the budget, which was passed unanimously. I did not hear any specific changes recommended by Mr. Burke either.

As far as a five year Capital Improvement Plan my Administration submitted the first five year plan the City has seen in eight years last year. We will continue to refine it, and will submit a revised plan when it is appropriate. We have, despite these terrible economic times, acted on our plan, purchasing 7 police cruisers and a new animal control van in the past year. Giving people the idea that a five year plan does not exist is just false. We should strive to Tell the Truth Jack, not invent things for political gain.

There is the first edition of To Tell the Truth. There will be more. Differences of opinion are what our democratic system is all about, and that includes correcting the falsehoods and half truths that are used in that debate far too often.

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Municipal Budget Passed

Posted on June 28, 2009 by billmanzi

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.

Posted in Methuen, Methuen City Council, Municipal Finance | Tagged , | Leave a comment

President Obama on Markey-Waxman

Posted on June 27, 2009 by billmanzi

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.”

markey-waxman

Posted in National News | Tagged , , | 4 Comments

Accord Reached with Patrolman

Posted on June 26, 2009 by billmanzi

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.

Posted in Methuen, Methuen City Council, Municipal Finance | Tagged | 5 Comments

Governor Prepares to Sign

Posted on June 26, 2009 by billmanzi

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.

Posted in State News | Tagged , , | 8 Comments

The King of Pop is Gone

Posted on June 25, 2009 by billmanzi

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.

Posted in National News | Tagged | 4 Comments

Methuen’s Budget

Posted on June 24, 2009 by billmanzi

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.

Posted in Methuen, Municipal Finance | Tagged , | 4 Comments

The Nuclear Option

Posted on June 24, 2009 by billmanzi

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.

Posted in State News | Tagged , , | 3 Comments

Obama at Radio and TV Correspondents Dinner

Posted on June 21, 2009 by billmanzi

President Obama at the Correspondents Dinner. Another good job. I liked the joke about Brian Williams.

Posted in National News | Tagged | 2 Comments

Jib Jab Strikes Again

Posted on June 20, 2009 by billmanzi

Jib Jab strikes again, unveiling this video at the Radio and Television Correspondents dinner yesterday. Great stuff.

Posted in National News | Tagged | 3 Comments