Baddour: I Don’t Represent Boston Elites

The Senate Chair of Transportation went on yesterday with Jim Braude, talking about the Governor’s transportation plan and the toll hikes voted by the Mass Pike. Baddour stuck to his mantra of “reform before revenue”, and alternately discussed the tension with Governor Patrick over transportation issues, the Senate Presidents criticism of Secretary Aloisi over his treatment of Republican Pike Board member Mary Connoughton, (Baddour agreed with that criticism), and what the political landscape is for Governor Patrick’s proposals. Baddour again scored a tough hit on gas tax proponents, saying that “the Boston elites” were in favor of a gas tax increase, and that he represented working folks in the Merrimack Valley, not those elites. Good interview, with Braude being the best in the business on that front. Boston elites? Ouch!

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G.M. Post 30 billion Dollar Loss

General Motors posted a $30.8 billion dollar loss for 2008, burning through over $6 billion in cash. The company will meet today with Obama Administration officials as it continues to struggle to restructure itself to try to return to profitability. G.M. lost this huge amount of money while selling 8.35 million vehicles last year, which was a decline of 11 percent. From the Washington Post:

“These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business,” Wagoner said. “We expect these challenging conditions will continue through 2009.”

Worldwide, GM sales totaled 8.35 million vehicles, down 11 percent from the year before. The carmaker said it used up $6.2 billion in cash in the fourth quarter, even as it sought government assistance to keep it financially afloat.

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The Governor Files a Transportation Bill

Governor Deval Patrick, under some political heat on transportation, yesterday finally filed his long awaited transportation bill. The text of his letter to the Legislature is below. The Mass Pike yesterday passed phase one of the prospective toll increases, with action by the Legislature on a gas tax increase required by March 29 to avert the increase in tolls. The political impetus now moves back to the Legislature. Secretary Aloisi ratcheted pressure up by saying that the Legislature passed a bill in one day after the fatal accident caused by cement falling from a big dig tunnel onto a motorist. Will the Governor get a bill out of the legislature in time to avert a toll increase? Will the bill give him a 19 cent gas tax increase, or something less than that? The entire text of the Governor’s bill is attached below.

February 24, 2009

To the Honorable Senate and House of Representatives:

II am filing for your consideration the attached legislative proposal, entitled, “An Act to Reform, Rebuild, and Renew the Transportation System of the Commonwealth for the Twenty-First Century.”

Our current transportation system is in disarray. It suffers from a hodgepodge of six different public and quasi-public bureaucracies, overseen by a variety of different boards, which are not directly accountable to the people. The Turnpike Authority and the MBTA have been saddled with over $4 billion in Big Dig-related debt, putting those entities in financial peril, causing tremendous toll and fare pressure, and constraining our ability to make investments elsewhere. The RTAs remain chronically underfunded and road and bridge repairs are needed in every corner of the Commonwealth. The lack of sustainable funding for all of these needs, moreover, is threatening our long-term economic security.

The non-partisan Transportation Finance Commission has concluded that, if we continue down the same path, we would underfund our roads, bridges, and rails by $15 to $19 billion over the next 20 years. The Commission stated that “the real cost of this neglect will be felt in our regional economy and in our way of life.” “Business as usual,” they wrote, “will not suffice.” It is high time that we address the challenges brought on by decades of neglect and willful blindness.

A safe, efficient, and cost-effective transportation system is critical to building a strong Commonwealth. To get there from where we are today, we will need both comprehensive reform and a new infusion of revenue. This bill addresses both needs.

First, the bill creates a consolidated, simplified Massachusetts Department of Transportation (“MassDOT”), under the authority of the Secretary of Transportation, with four divisions: Highway, Rail and Transit, Aviation and Port, and the Registry of Motor Vehicles. The bill abolishes the Massachusetts Turnpike Authority, the Massachusetts Aeronautics Commission, and the Outdoor Advertising Board, and replaces the board at the MBTA. This simplification will eliminate redundancy, streamline operations, reduce personnel by about 300, increase efficiency, and save money, which will be plowed back into deferred maintenance.

Second, the bill includes a number of reforms designed to cut costs, improve efficiency, and restore a measure of the public’s confidence. These include moving all transportation employees, including those at the MBTA and at the Turnpike, to the same group insurance plans as other public employees, and aligning the MBTA pension system with the state pension system. The “23 years and out” rule, for example, where MBTA employees start receiving a full pension after 23 years of service regardless of age, must come to an end.

The bill also creates a new dedicated Transportation Fund that will be used to finance, maintain, repair, and expand our transportation network. The bill follows the lead of the Senate and authorizes public-private partnerships, particularly with respect to non-core assets where the proceeds can help us pay for our transportation needs, including paying down debt. The bill facilitates moving MassHighway employees off the capital budget and back onto the regular payroll, generating even more long-term savings. And the bill will begin to restore the public’s trust in the integrity of their government, by creating an Office of Performance Management and a Private Project Ombudsman to improve transparency and accountability.

The bill is also environmentally responsible. It includes new “buy green” and “build green” requirements and authorizes a new green car sliding scale for vehicle registrations. It also calls for the creation of a Healthy Transportation Compact to strengthen our focus on, and relationship to, health and transportation.

Reforms are vital and therefore central to the bill. But as the Transportation Finance Commission demonstrated, we cannot secure our economic future and the public’s safety on the roads, rails, and bridges with reforms alone. Accordingly, this bill includes a 19-cent increase in the gas tax, adjusted for inflation annually beginning in 2011. By restricting the use of gas tax revenues to transportation purposes, as this bill does, taxpayers will be assured that their money is dedicated exclusively to transportation projects. Finally, and importantly, the bill establishes regional equity requirements to ensure that communities all across the Commonwealth benefit from the proposed new revenues, whereby a proportional amount of resources will be expended on road and bridge projects in each region of the state.

I urge your prompt and favorable action on the bill. Secretary Aloisi and I welcome your questions, comments, and suggestions, and look forward to tackling this complex challenge together.

Respectfully submitted,
Deval Patrick

patricktransporeformlegislation

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The Jindal Response

The Republicans frame their response carefully, praising the President generally while slamming him specifically. Jindal is one of the rising stars of the GOP, and frequently mentioned as a possible candidate for President. Jindal found himself under attack from Congressional Dems yesterday over the issue of taking the stimulus money for his state. Chuck Schumer claimed that the stimulus money was not “a la carte”, and that Jindal would be required to take the whole package or nothing at all. Jindal had indicated that he would refuse about $100 million for extended unemployment, but take the rest. How do you take the billions offered when you have criticized the bill itself as a big waste of money?

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The Obama Speech

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Transportation Chess Match

The political dance between Governor Patrick and the Legislature over transportation continued yesterday, with the governor taking some fire over his plan to raise the gas tax by 19 cents. The Governor has, up to this point, been substantially outmaneuvered by the State Senate, who filed a reform package that did not deal with revenues, leaving the Governor to recommend either massive toll hikes or a gas tax increase. The Governor responded by advocating a 19 cent increase in the gas tax, and leaving toll prices where they are, as well as advocating for many reforms contained in the Senate bill. But he has yet to file a bill.

The Governor, in floating his proposal, may well have turned the tables on the legislature somewhat, with the Mass Pike board prepared to vote on toll increases today, with the stipulation that these increases would be rolled back once the legislature votes to increase the gas tax. But this scenario has top transportation legislators up in arms, as the Governor’s failure to file a bill continues to dog him politically. Both House Chair Joe Wagoner and Senate Chair Steve Baddour took aim at the Mass Pike vote and the lack of a legislative filing by the Governor. From the State House News Service:

“Here we are with a vote about to take place and no bill has been filed,” said House Transportation Committee chair Rep. Joseph Wagner (D-Chicopee).

And Senate Chair Steve Baddour weighed in as well.

“We don’t vote on PowerPoints,” Baddour said. “We vote on bills.”

Ouch! Both called for a delay in the toll hike vote, but Secretary Aloisi indicated to Chairman Wagoner that the vote would proceed.

Wagner and his co-chair, Sen. Steven Baddour (D-Methuen), said they planned to send a letter to Transportation Secretary James Aloisi, who chairs the Turnpike board, first thing Tuesday morning, hours before the vote. Wagner said he called Aloisi after 5 pm to urge a delayed vote. …Wagner said Aloisi told him the vote, which administration officials say is needed to avert an increase in Turnpike borrowing costs, would proceed.

Aloisi, in a statement, confirmed the vote would go forward, but promised a rollback once the Legislature votes on a “reform and revenue” package.

In a statement released through a spokesman late Monday, Aloisi said, “A two phased toll increase will allow time for [a] reform bill to be passed without the full impact of the Turnpike’s fiscal problems falling on the toll payers. Without the initial action taken tomorrow Turnpike bonds will be downgraded to junk bond status – something that’s bad for every state agency and authority. Our commitment is to roll this toll increase back as soon as the legislature passes a comprehensive reform and revenue package.”

As far as the prospects for a gas tax increase on the order of 19 cents both Baddour and Wagoner sounded pessimistic.

Wagner and Baddour also said lawmakers would likely oppose a gas tax increase as steep as 19 cents without preceding reform.

“I am not sure I think the votes are there,” Wagner said.

Baddour said, “I don’t support a 19-cent gas tax [increase], especially since we haven’t done reforms.”

The Governor appears to have a lot of work to do to garner support for his package. A good starting point would probably be filing a bill.

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Citi Teeters

Citi Group is looking for the U.S. Government to restructure its capital infusion of $45 billion dollars into the Bank. Citi has opened talks to convert that capital, which granted the government preferred shares, into common stock. The move would dilute existing common stock and give the U.S. government a larger ownership share. From the Wall Street Journal:

Under the scenario being considered, a substantial chunk of the $45 billion in preferred shares held by the government would convert into common stock, people familiar with the matter said. The government obtained those shares, equivalent to a 7.8% stake, in return for pumping capital into Citigroup.

The move wouldn’t cost taxpayers additional money, but other Citigroup shareholders would see their stock diluted. A larger ownership stake by the government could fuel speculation that other troubled banks will line up for similar agreements.

Citi has seen its stock price plunge to below $2 per share, leaving it with a market cap of about $10.5 billion. So the government, with a cash injection of $45 billion, gets a 40% ownership stake in a company worth $10 billion. Not a bad deal for Citi shareholders and management. Many Citi defenders point to the massive shorting of Citi stock, and are calling on the Obama Administration to reinstitute rules that would limit such “short selling”. There is no doubt that it has had an impact, but it is coming to the point that the government will need to step in and fully nationalize banks that are insolvent. Short term ownership, with a shedding of bad assets, recapitilization, and then a sale to private capital, is what is needed. No question that such an action will hurt institutional investors, including pension funds and insurance companies. But they are being hurt now! It is not possible for the government to insure against all losses, so we should suck it up now, while we still can.

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Obama Looks to Cut Deficit in Half

President Barack Obama has set the ambittous goal of reducing the federal deficit by half in four years. He will file a budget this coming week that seeks to begin that process, and is hosting a “fiscal responsibility” summit this week as well. In this area the President faces what I consider to be his greatest challenge.

As we look at deficit numbers it is important to realize that as enormous as they are they are in fact grossly understated. The “unified accounting” approach allows the federal government to count the surplus in social security against the governmental deficit. This accounting sham produces a “lower” federal deficit, with the United States government replacing the Social Security surplus with Treasury I.O.U’s. The problem is that the Social Security Trust Fund will soon need to begin redeeming those bonds, as the SS system turns to deficit. Those Republicans now pining for fiscal responsibility are, in many cases, the same ones who made fun of Al Gore for promoting the Social Security lockbox! With that in mind lets look at the Washington Post description of numbers:

Even before Congress approved the stimulus package this month, congressional budget analysts forecast that this year’s deficit would approach $1.2 trillion — 8.3 percent of the overall economy, the highest since World War II. With the stimulus and other expenses, some analysts say, the annual gap between federal spending and income could reach $2 trillion when the fiscal year ends in September.

Those are some real ugly numbers. The Post talks about Obama reducing some spending, in particular on our overseas committments in Iraq and Afghanistan.

Obama proposes to dramatically reduce those numbers, said White House budget director Peter Orszag: “We will cut the deficit in half by the end of the president’s first term.” The plan would keep the deficit hovering near $1 trillion in 2010 and 2011, but shows it dropping to $533 billion by 2013, he said — still high but a more manageable 3 percent of the economy.

To get there, Obama proposes to cut spending and raise taxes. The savings would come primarily from “winding down the war” in Iraq, a senior administration official said. The budget assumes continued spending on “overseas military contingency operations” throughout Obama’s presidency, the official said, but that number is lower than the nearly $190 billion budgeted for Iraq and Afghanistan last year.

Obama also plans to let the Bush tax cuts expire in 2011 as he deals with the revenue side.

Obama also seeks to increase tax collections, mainly by making good on his promise to eliminate some of the temporary tax cuts enacted in 2001 and 2003. While the budget would keep the breaks that benefit middle-income families, it would eliminate them for wealthy taxpayers, defined as families earning more than $250,000 a year. Those tax breaks would be permitted to expire on schedule in 2011. That means the top tax rate would rise from 35 percent to 39.6 percent, the tax on capital gains would jump to 20 percent from 15 percent for wealthy filers and the tax on estates worth more than $3.5 million would be maintained at the current rate of 45 percent.

Obama also proposes “a fairly aggressive effort on tax enforcement” that would target corporate loopholes, the official said. And Obama’s budget seeks to tax the earnings of hedge fund managers as normal income rather than at the lower 15 percent capital gains rate.

Overall, tax collections under the plan would rise from about 16 percent of the economy this year to 19 percent in 2013, while federal spending would drop from about 26 percent of the economy, another post-World War II high, to 22 percent.

The Obama budget will also begin the process of dealing with health care. There will be some tweaks to medicare and medicaid, which in combination cost $561 billion per year.

Administration officials and outside experts say the most likely path to revamping the health system is to begin with Medicare, the federal program for retirees and people with disabilities, and Medicaid, which serves the poor. Together, the two programs cover about 100 million people at a cost of $561 billion in 2007. Making policy changes in those programs — such as rewarding physicians who computerize their medical records or paying doctors for results rather than procedures — could improve care while generating long-term savings, experts say.

One of the things that Obama is doing is to undo Bush era accounting practices, which left disaster relief and the two wars largely off book in the hopes of masking the true size of the deficit. Obama will end that practice.

It is very clear that in order to truly attack the deficit some deeply unpopular actions will need to be taken. Whether this President has the stomach for that is yet to be seen. Congress has shown itself as incapable of dealing with this problem. Without Presidential leadership on this issue we will be doomed to failure on restraining deficits, and such a failure may bring additional disaster to the U.S. The latest Pete Peterson Foundation ad is below. These are the folks that brought us I.O.U.S.A.

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T.I.P. Creates a Healing Garden

I have been working very hard with Jayan Landry, the CEO and Executive Director of the Trauma Intervention Program of the Merrimack Valley, to come up with an appropriate place in Methuen to create a Healing Garden. Jayan has provided the visioning for such a garden, and I mentioned its potential in my state of the city address. We have identified what we all think would be a great site, the Henry P. Schruender Memorial Park in east Methuen. We are prepared to move forward with this site, and Jayan has not only created the vision but done some extensive fundraising in support of this vision. She was good enough to write the below piece for my blog. Congrats to Jayan and the T.I.P. program, and thanks to City Council Chair Deb Quinn, who has been a big supporter. Read the Tribune story here.

The Trauma Intervention Program of Merrimack Valley, Inc. (TIP) is a group of 28 specially trained citizen volunteers who are called by police officers, fire fighters and hospital personnel to provide emotional and practical support to child and adult victims of traumatic events in the first few hours following a tragedy. After 16 years of providing support to over 16,000 citizens we have been inspired to create a community healing garden by former TIP volunteer Brenda Waller. Brenda, lost her ten year battle with breast cancer in Nov. 2006 and since then for the past two years, our team spearheaded by Brenda’s daughter, TIP volunteer, Lindsay Waller and Dennis Larocque who has helped us raise $20,000 during fundraising walks in Brenda’s honor for our TIP healing garden.

The belief that plants and gardens are beneficial for patients in healthcare environments is more than one thousand years old, and appears prominently in Asian and Western cultures (Ulrich and Parsons, 1992).

Several studies of nonpatient groups (such as university students) as well as patients have consistently shown that simply looking at environments dominated by greenery, flowers, or water — as compared to built scenes lacking nature (rooms, buildings, towns) — is significantly more effective in promoting recovery or restoration
from stress. (See Ulrich, 1999, for a survey of studies.) There is considerable evidence that restorative effects of nature scenes are manifested within only three to five minutes as a combination of psychological/emotional
and physiological changes.

“The therapeutic value of a quiet, meditative environment for individuals affected by a trauma or illness is widely recognized,” says Bruce Chabner, MD, clinical director of the Cancer Center at MGH. Among many health related benefits, recent studies show patients who view nature require less pain medication than those viewing concrete.
Hospitals in New England are catching up with the West Coast by incorporating Healing Gardens. The Ulfelder Healing Garden at MGH was the prototype for our design. Our ideal garden location will be outside, have a water source such as a flowing river, and will be filled with trees, birds and be in a quiet location. Our design team will work with nature to offer healing to all citizens in our community.

TIP volunteer Karen Fountain-Lantelme, a certified healthcare landscape design states: “There has been much study and research that show the many benefits of healing gardens which reduce stress and blood pressure while offering social connectedness through bonding and stewardship. Elevated moods, decreasing muscle tension, improved cardiac activity and overall improvement in one’s emotional and physical well-being are but a few of the many benefits of a therapeutic landscape.

The opportunity to create a TIP healing garden in honor of Brenda Waller will offer the community a valuable resource and an important complement to the excellent on scene TIP service our team provides.

TIP is a non profit Massachusetts 501c3 based in Methuen. To donate to the healing garden or for more information, visit the TIP website at www.traumaintervention.org. Or contact us at TIP, 167 East Street, Methuen, MA 01844, 978.975.8471. Fax 978.975.4321.

Jayan Marie Landry MS, APRN, Doctoral Candidate
CEO/Executive Director/ CoFounder Trauma Intervention Program of Merrimack Valley, Inc.
Trauma Intervention Program of Merrimack Valley Provides Support for Adults and Children
Source: http://www.traumainterventi…
Trauma Intervention Program of Merrimack provides emergency emotional first aid to traumatized children and adults. Books for children cope with grief, hope, recovery after a suicides, or inappropriate sexual touching are available

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