McAuliffe Crushed in Virginia

Posted on June 10, 2009 by billmanzi

State Senator Creigh Deeds easily cruised to victory in the Democratic primary for Governor, crushing Clintonista Terry McAuliffe 50% to 26%, with Brian Moran coming in at 24%. Deeds will face off against former state A.G. Bob McDonnell, who defeated Deeds in a very close race for A.G. in 2005. Deeds had been shown by the latest Suffolk poll to be the candidate with momentum, and that was borne out by the final numbers. As Terry Mcauliffe licks his wounds today maybe he is thinking of that old Beatles tune “Money Can’t Buy Me Love”. And maybe some of the Obama folks have not quite forgotten his zeal for Hillary.

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Health Care Deal in Methuen

Posted on June 10, 2009 by billmanzi

I am very pleased to announce a health care deal in Methuen between the City and the Coalition representing the municipal unions on health care. This health care agreement will save Methuen taxpayers $1.2 million dollars in FY 2010. The insurance coalition, chaired by Teachers Union President Donna Gogas, has representatives from all municipal unions, including Police, Fire, and the Laborers Union. The potential for an increase of that magnitude shows how far out of whack our national health care system is, but I digress. The Coalition agreed to a new menu of co-pays and a new plan for prescription drugs. The new menu includes co-pays that did not exist in the prior plan, and increases to existing co-pays. It required a huge change in the plan, and I am grateful to the coalition for all of their hard work to produce a plan that not only saved the City money, but holds premium increases in the Tufts plan to 33 cents per week for an individual, and 88 cents per week for a family plan. We have incorporated several innovations to our plan, and a key to our success has been the willingness of Donna Gogas, the Coalition President, to work on health care all year round, not just at budget time. Read the Tribune story on this announcement here. Donna Gogas joined me for yesterdays announcement.

Methuen Teachers Union President Donna Gogas and Mayor Manzi

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

Terry McAuliffe Slugs it Out in Virginia

Posted on June 8, 2009 by billmanzi

Virginia will have its Democratic primary for Governor shortly, and recent polls have State Sen. Creigh Deeds leadingTerry McAuliffe, who has outspent the field in a large way. McAuliffe is the establishment candidate, and Deeds the insurgent in this fight. But Deeds is the homegrown candidate, and knows the terrain well. Our old friends at Suffolk University just conducted a survey, and it shows Deeds with a slight lead over McAuliffe, at 29% to 26%. Brian Moran is just behind them at 23%. Should be an interesting fight to the finish. McAuliffe attempts to exploit the fact that Deeds has lost to the presumptive Republican nominee Bob McDonnell in a race for Attorney General several years ago with this ad.

editedvamarginalsfinaljune42009

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The Sales Tax Revisited

Posted on June 7, 2009 by billmanzi

Today’s Herald had a story about what a boon the sales tax increase would be to New Hampshire. As the Mayor of a border community the Herald asked me my thoughts, which remain the same. The increase is a jobs killer, and an economic development killer. State tax policy has already made border communities like Methuen an economic orphan, and this increase will only make a bad situation worse. Cost side reform is what is needed now. Beacon Hill will soon find out that no level of tax increases will get us out of this jam. Read the numbers. They just don’t work!

Read the Herald story here.

Posted in Methuen, Municipal Finance, State News | Tagged | 1 Comment

The Obama Message on Health Care

Posted on June 6, 2009 by billmanzi

This week President Obama talks health care in his weekly message. The President has spoken about health care before, but it has never been more important. Without cost containment in health care the entire economy is in danger, in my view. Even in this downturn we would not have the problems that we have without health care consuming ever greater portions of our economy. As the health care system gobbles more and more of our resources it leaves us fighting hard amongst ourselves for what is left. There are some real differences in approach, but more of the same will not do.

Posted in Municipal Finance, National News, State News | Tagged | 3 Comments

President Obama Speaks in Cairo

Posted on June 4, 2009 by billmanzi

The President speaks in Cairo, dealing with the relations between the United States and the Islamic World. While the President and the White House have downplayed expectations (no single speech…)the speech is an important part of the Obama foreign agenda. He is going to be criticized for this speech as well as other efforts, but the task is so enormous that a realization that the past failures should not be repeated has to be admired. In my view it is an effort worth making, and one based on realism. What do you think?

Posted in National News | Tagged , | 17 Comments

It Takes an Indictment

Posted on June 4, 2009 by billmanzi

The Governor was joined by Senate President Therese Murray and Speaker Bob Deleo in issuing a joint statement on ethics reform legislation. It appears that they now stand united in agreeing that the “best” provisions of each of their proposals will be the ones integrated into the conference committee report. I assume that before the indictment they felt that some of the “best” provisions should not be included??? Sorry for the sarcasm, just thought I would ask.

JOINT STATEMENT OF GOVERNOR DEVAL PATRICK, SENATE PRESIDENT THERESE MURRAY, AND SPEAKER ROBERT DeLEO

“The news of yesterday’s indictments and the nature of the charges are deeply disturbing. All three of us have put forth serious proposals dealing with ethics, lobbying and campaign finance reform, the details of which are currently being negotiated in conference committee. In light of the recent developments, we believe it is critical that we stand united in our shared commitment to restoring the public trust. Therefore, we have agreed that ethics reform legislation will be passed and signed into law swiftly that includes the best provisions from all three of our proposals. We owe the people of Massachusetts nothing less.”

Posted in State News | Tagged | 3 Comments

Dimasi Indicted

Posted on June 2, 2009 by billmanzi

Former Speaker of the Massachusetts House Sal Dimasi was today indicted by a federal grand jury on corruption charges. His indictment marks the third consecutive Speaker indicted by the federal government. From the Boston Globe:

DiMasi was charged with conspiracy, honest services mail fraud, aiding and abetting, and honest services wire fraud, in helping to award contracts to Ottawa-based Cognos, according to an indictment filed in US District Court in Boston.

Dimasi was joined by several others.

Also indicted were Richard McDonough, a lobbyist for Cognos and close friend of DiMasi; Joseph Lally, the Cognos sales agent; and Richard Vitale, a former DiMasi campaign treasurer who was also paid by Cognos.

A copy of the federal indictment is below.

sal-indictment

Posted in State News | Tagged | 16 Comments

Patrick in New Push on Civilian Flaggers

Posted on June 1, 2009 by billmanzi

The Boston Herald is reporting that Governor Deval Patrick is going to announce this morning a new push to utilize civilian flaggers on State road jobs. The Governor and his process have been subjected to claims of “phony reform” because of the paltry dollar figure associated with the use of flagmen. With this new program Massachusetts Highway Commissioner Luisa Paiewonsky estimates State savings in “the millions”. From the Herald story:

Officials aim to more than double the use of civilian flaggers stationed at construction sites throughout the state, a figure that now stands at 71. Last fall, the state saved a paltry $12,500 by using 29 flaggers, but by the end of the year, Patrick hopes to station flaggers at more than half the state’s roadway detail sites.

The Police Unions fired back, questioning the Governor’s savings figures, as well as claiming that the new policy will “diminish public safety.”

“We’re still skeptical of the savings this brings,” said Hugh Cameron, president of the Massachusetts Coalition of Police AFL-CIO. Cameron noted Patrick’s original savings estimate of $5.7 million was inflated by about $1 million, according to a recent audit that also suggested public safety could suffer. State AFL-CIO spokesman Tim Sullivan was more pointed, saying “the fact of the matter is there’s little to no savings and (flaggers) come at a cost of public safety.”

The Governor seems eager to now seize the “reform” issue across a wide spectrum of issues. From where I am sitting it is the only real option available to him. He will be heavily criticized by the police unions, but sometimes short term pain means long term gain. When the Governor makes his announcement we will post it here.

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G.M. Files Bankruptcy

Posted on June 1, 2009 by billmanzi

General Motors will today file for bankruptcy protection, bringing an icon of American industry to Chapter 11. President Obama will speak to the filing this morning. (I will attach video to this post as soon as it is available). From the Washington Post:

Under the proposed restructuring, about 60 percent of the new GM would be owned by the United States, about 12 percent by the governments of Canada and Ontario, a union health trust would own 17.5 percent, and the company’s current bondholders would get 10 percent.

The bondholders have voted to move forward with the debt for equity swap, with 54% voting in favor. That should clear the way for a relatively quick exit from bankruptcy. The new G.M. that emerges will have shed thousands of dealerships, as well as the Hummer, Saab, Pontiac, and Saturn brands. The United States government, after contributing $30 billion in debtor in possession financing, will have $50 billion into G.M. Those loans would be converted into the equity stake of 60%.

G.M. will emerge in short order with a cleaned up balance sheet, labor concessions, and a trimmed down operation. But despite that they are nowhere near out of the woods. Auto sales in the U.S. have dropped below 10 million, to about 9.5 million. Most of the analysis points to the 10 million car mark as what would be necessary for G.M. to break even at its current market share. Continued slide in market share, or a failure of the domestic market to rebound sales wise will put G.M. in trouble again.

It is a big risk that the Obama Administration takes here. But what are the alternatives? Just letting G.M. collapse into liquidation, whether people want to admit it or not, would be a severe shock to this economy when we can least afford it. Maybe we could just absorb that shock in better times, but I question whether we can today.

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