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.

Posted in State News | Tagged , | 5 Comments

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.

Posted in National News | Tagged , | 6 Comments

Methuen Relay for Life

Posted on May 31, 2009 by billmanzi

Methuen’s Relay for Life is occurring this weekend, and it has been a huge success. When Scott Yim and Madison Aleska came forward with this idea last year I really do not think that anyone believed it could turn out to be as big as it has been. Scott and Madison, and the big team they assembled to put this together, have pulled off a stunning success. The magnitude of their accomplishment can be seen in the particpation levels, and the money raised. They had an initial goal of raising between 30 and 40 thousand dollars. They raised over $130,000 for the American Cancer Society. A great achievement by these two Methuen High seniors. Scott will be attending Harvard, and Madison will be attending Boston College next year. Congrats to them, and all that worked to make this event a success.
See the photo set here.

Scott and Madison at Relay Opening

Opening Remarks Methuen Relay for Life

Posted in Uncategorized | Tagged , | 2 Comments

The Great Traditions of Massachusetts:Bunker Hill Day

Posted on May 30, 2009 by billmanzi

Senator Jack Hart of South Boston, seen here extolling the virtues of the Suffolk County paid holidays (for State employees) of Bunker Hill Day and Evacuation Day. Senator Hart compares these Holidays to Labor Day and Thanksgiving, amongst others. The very idea that someone would contemplate taking away these holidays filled the Senate chamber with horror. I found myself wiping away tears as I listened to the speech by the Senator, and I am somewhat remorseful that I continue to think that these holidays should be abolished.

Read the Globe story here.

http://c.brightcove.com/services/viewer/federated_f9/16977198001?isVid=1&publisherID=245991542

Posted in Uncategorized | Tagged , , | 17 Comments

President Obama on Judge Sotomayor

Posted on May 30, 2009 by billmanzi

President Obama talks about his nomination of Judge Sotomayor to the Supreme Court in this weeks you tube address. He extolls her judicial virtues, and calls for quick confirmation.

Posted in National News | Tagged | 9 Comments

Methuen’s Budget and Private Fireworks Donations

Posted on May 29, 2009 by billmanzi

With all of the talk about budget cuts possibly impacting our annual fireworks display I was pleasantly suprised to receive a check for $1000 from Wal-mart in Methuen as I attended their grand re-opening. That check was the first of several that have come forward to assist with that effort. I appreciate Wal-Marts generosity and community spirit.

As we get closer to July 1st many are asking about the status of Methuen’s budget. I have made a detailed proposal to most of Methuen’s unions that would forestall layoffs in Methuen. I will be making another presentation this morning. The unions have negotiated in good faith, but the day for decision nears. A failure to reach agreement will result in deep cuts in personnel, and there is no way to sugar coat that reality. I will announce the offer publicly next week, and the budget will be brought forward shortly as well. We will take the actions necessary to balance the budget and place Methuen on a sustainable fiscal course.

Wal Mart Presents a Check to Methuen

Posted in Methuen, Municipal Finance | Tagged , | 9 Comments

The State Failure on Municipal Health Care Reform

Posted on May 28, 2009 by billmanzi

Today’s Tribune cites the total failure of the State Legislature to enact any health care reform that would aid municipalities. And although this issue has been discussed many times prior on this blog today’s editorial requires me to discuss this one more time (at least). The municipal health care provisions in the Municipal Relief Act are not only not an improvement, they are a huge step back. In an attempt to be seen as being evenhanded while actually undercutting the municipalities ability to save taxpayer money the legislation is a mess, with unworkable benchmarking, unworkable timelines, and the piece de resistance, the reimposition of binding arbitration. From the Tribune editorial:

Binding arbitration was abolished following passage of Proposition 21/2 in 1980 as a means of helping communities deal with the new restrictions on property-tax collections. Yet now, even with the economy at its lowest point since the Great Depression and cities and towns facing their worst budget crises since Prop 21/2, those on Beacon Hill are actually contemplating a return to a system that would allow an arbitrator to impose contract terms on municipalities regardless of their affordability.

“This is not acceptable, and it is not reform,” the Massachusetts Municipal Association declared in testimony before the Joint Committee on Municipalities and Regional Government earlier this month.

Rather, it’s a step backward, as both the MMA and the Massachusetts Taxpayers Foundation contend.

Yes it is a huge step backwards, and the net result is a higher cost to municipal taxpayers. What else does the Tribune say?

The Senate version of the bill incorporates a complicated system of determining the average cost of health insurance per city or town employee, and threatens those communities whose costs exceed those of the state Group Insurance Commission with the loss of state aid. Yet it does not remove local unions’ ability to veto membership in the GIC, nor does it give municipal officials the same authority the GIC has to determine what sort of plan is offered to employees.

The municipalities want the same rights as the Governor and the Legislature to create health plan design? What a novel idea. The state, through this ridiculous bill, still stops us from exercising the same right they have over the health care plan of state employees.

As the Rosenberg/Donato Commission unveiled its health care provisions they tried to sell the idea that they had treated municipalities in an evenhanded way. And they appear to have gotten away with it, to some degree. Where were the municipal leaders speaking in favor of this provision? Can anyone point to one municipal leader that is in favor of this health care proposal? When you ask that question all you get are crickets chirping in the background. The conference committee should kill this turkey, even if it means no change to the current system. Read the editorial in the Eagle Tribune here.

Posted in Uncategorized | Tagged | 14 Comments