Geithner Confirmed, Sworn In

Tim Geithner was confirmed as Treasury Secretary by the Senate, passing on a 60-34 vote, with ten Republicans voting in favor and several Democrats voting against. Geithner’s confirmation comes at a critical time, and he was sworn in quickly to get him right to work. The banking system continues to teeter, and Geithner is faced with the most serious problems we have seen in our lifetime. I hope he is up to the task!

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Rogers Seeks Delay in Speakers Vote

House Majority Leader John Rodgers has called for a delay in the vote for Speaker of the Massachusetts House. Rodgers has had surrogates raising a possible connection between rival Bob Deleo and the Cognos computer deal that caused Speaker Dimasi so much political pain. If Rodgers is seeking a delay then he must know that an immediate vote will lead to his loss. Bobby Deleo has released the names of those who he claims are supporting him, a list of eighty seven, which would put him over the top. Rodgers must agree with that assesment, or he too would be seeking an immediate vote. Speaker Dimasi is moving to schedule a vote this week, and Rodgers is even sniping at him, claiming Dimasi is now reneging on a deal made after the exit of Tom Finneran. From the State House News Service:

The Norwood Democrat also accused DiMasi of violating an agreement they reached in 2004 when both were jockeying to succeed then-Speaker Thomas Finneran. Rogers said DiMasi agreed to a pact, without a date certain, under which Rogers would succeed him.

“The understanding was crystal clear … that he would go first and I would go second,” Rogers told the News Service in a telephone interview Sunday night, saying DiMasi agreed “unequivocally.”

Rogers said he and DiMasi sealed the arrangement with a handshake across a dining room table, with Finneran looking on. “Talk to Tom Finneran, he was there,” Rogers said.

Through an intermediary, Finneran declined comment. Guarino, the DiMasi spokesman, also declined comment.

Rodgers now calls for a postponement to allow additional public participation in the selection of the Speaker. Hmmmmm………

Read the Globe listing of Deleo backers that will make him the next Speaker.

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The Globe Gets it Right on Municipal Healthcare

The Boston Globe wrote a lead editorial today that accurately depicted the Governor’s municipal healthcare proposal as not at all helpful to municipalities. From the Globe:

GOVERNOR Patrick is asking mayors, selectmen, and town managers to make cheesecake out of dust. And then, if he doesn’t like the way it tastes, he is going to punish them.

The situation we are in cries out for bold actions, but the Globe rightly characterizes this proposal as “half baked”.

Most local officials accept that the state budget crisis will require belt-tightening, including a $128 million local aid cut this year. And the threat of losing some local aid may make cities and towns more amenable to reform. But Patrick’s proposal holds them to standards that the governor himself can’t meet.

City and town administrators are now required to win 70 percent approval from each municipal union before they can make significant changes in their workers’ health insurance plans. Yet the Patrick administration can unilaterally redesign the state medical insurance plan, including raising co-payments and deductibles, to keep costs under control. Town managers need the same tools.

Amid a fiscal crisis, the governor is offering a half-baked solution: lower the 70 percent union vote requirement to 50 percent. He argues that such a measure balances collective bargaining rights with the need for towns to contain costs. But it just prolongs the ability of unions to veto health insurance reform. Patrick’s political balancing act does nothing more than push cities and towns closer to the edge.

In response to a question from the dean of our delegation Mayor Barrett of North Adams Governor Patrick said that giving municipalities the right to implement plan design changes outside of collective bargaining would have been the “easy” solution. I was in the hall when the Governor answered the question and I think I frowned when I heard that. Good thing the Governor did not see me. Giving municipalities plan design would have been the difficult and bold decision, designed to help us reduce costs in one of the areas that has been a real budget buster. The Governor’s proposal is the easy political solution, trying to sell nothing as something. I hope the Governor rethinks his proposal. I would have to agree with the Governor on one thing. That Mayor Barrett sure is cantankerous! Read the Globe editorial here.

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As the World Turns

The antics across the land, in states near and far, continues to amaze. In New York former Senate Majority Leader Joseph Bruno is facing a multiple count federal indictment alleging wrongdoing. From the New York Times:

Joseph L. Bruno, the former State Senate majority leader, was indicted on Friday in Albany on charges that he reaped millions of dollars from companies seeking business from the state or from labor unions, capping a long-running investigation into one of New York’s most powerful political figures.In an eight-count indictment, federal prosecutors accused Mr. Bruno of collecting more than $3 million over a 13-year period, beginning in 1993, from a handful of companies seeking state contracts and grants, as well as contracts to manage pension fund investments for at least 16 labor unions.

In addition to cash payments disguised as consulting fees, he also had undisclosed interests in a racehorse partnership and a computer software firm that had contracts with state agencies, according to the indictment.

Bruno’s indictment brought about a lead editorial from the New York Times calling for state ethics reform in New York. Could have been cut and pasted from similar editorials in Massachusetts and Illinois. From that editorial:

It is time for Albany’s many self-declared reformers to toughen ethics requirements and oversight of lawmakers — including how they get money, as outside income, as gifts and as campaign contributions. New Yorkers deserve something better than this revolving door from the Capitol to the courthouse.

And in Massachusetts former State Senator Dianne Wilkerson, under a multiple count federal indictment, has advanced a novel way of looking at gift laws, acknowledging $70,000 or so in unreported “gifts” that she claims are ok under state ethics laws. From the Globe:

Former state Senator Dianne Wilkerson said she routinely accepted money over the last decade from friends and political supporters – upwards of $70,000, some of it cash in unmarked envelopes – without ever reporting it on her campaign reports or tax returns. Wilkerson disclosed her acceptance of the cash and checks in a recent interview with the Globe, saying she took individual financial contributions of up to $10,000 to help pay off mortgage and federal tax debts. The contributions, she said, were approved by the state Ethics Commission, vetted by lawyers, and within state and federal laws.

And of course this posting of “As the World Turns” would not be complete without a reference to Illinois Governor Rod Blagojevich, whose impeachment trial begins today in the Illinois State Senate. Governor Blagojevich will not be attending that trial or sending lawyers to do so, having publicly announced a “boycott” of the Senate proceedings. Governor Blagojevich instead will be making the rounds of the talk show circuit, including an appearance on the Today show this morning. The Governor’s strategy has caused his lawyer to resign in protest, and prompted Chicago Mayor Richard Daley to label him as “cuckoo”. But the Governor is having none of that cuckoo talk. He has compared himself to Mandela, the Reverend Martin Luther King, and Ghandi, which has allowed him to gain “perspective” on his troubles. From MSNBC:

After weeks of near-silence, Blagojevich has begun an energetic public relations campaign, comparing himself to the hero of a Frank Capra movie and a cowboy being lynched for a crime he didn’t commit. He said that when he was arrested on federal corruption charges, he took solace from other leaders who have been jailed.

“I thought about Mandela, Dr. King, Gandhi” and that helped him gain perspective, he said in an interview that aired Sunday on “Today.”

Amazing stuff! Please tune in again for our next episode of “As the World Turns”.

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From the Horses Mouth: Dimasi Out

Speaker Sal Dimasi confirmed what the Lowell Sun broke earlier this week, telling the Boston Globe that he is resigning as Speaker and Representative effective Tuesday. He will give a farewell speech Tuesday, and Democrats will caucus to choose a “Democratic nominee” for Speaker sometime Monday, with a vote for Speaker likely held in the full House on Wednesday. Dimasi blamed his political troubles on “special interests” whose agenda he has blocked, notably the casino industry. From the Globe:

”My head is held high and I am proud of my record. That is how I am leaving,” DiMasi said. He blamed much of the ethical controversies on ”powerful special interests” particularly the gambling industry which he had blocked in its efforts to legalize casinos.

”They are going to be pretty happy by the fact I won’t be here,” he said of the casino industry and its stable of high paid lobbyists.

Dimasi’s exit will unleash a battle for Speaker between Rep. Bobby Deleo of Winthrop and Majority Leader John Rogers of Norwood. It appears that Deleo has the votes, but this race is very close. That has led to speculation that the Republican caucus of sixteen is being approached to possibly tip the balance away from the victor in the Democratic caucus. If the Republicans voted as a block of sixteen in favor of the losing candidate in the Democratic caucus (instead of voting for Minority Leader Brad Jones)they could well tip the balance in the Speakers fight. But there is a complication to that scenario as well. The Republican caucus is essentially split in two, with seven votes of the sixteen having voted for Rep. Rep. Lewis Evangelidis instead of Brad Jones (who had nine) for Minority Leader. The Evangelidis Seven may be approached as a separate entity, with the potential for delivering seven votes for Speaker to one of the Democrats. In counting votes from the outside looking in the potential exists for the Republicans to participate as full players in the Speakers fight, but with the two separate Republican groups voting for different Democrats. Under that scenario whover gets the Brad Jones nine picks up a net two votes. Is your head spinning yet?

Organized labor has weighed in in favor of Rodgers, with many locals across the board making calls and applying pressure. Whatever the outcome I believe that the vote count is hardened, with softer votes now being pursued to change teams. Locally, Reps Campbell, L’Italien, Torrisi, Finegold, and Lantigua are with Deleo. The Lowell delegation is solidly with Rodgers. A Speakers fight of this quality is a rarity. The Tom Finneran-Ritchie Voke battle was a real donneybrook, with Finneran losing in the Democratic caucus but winning on the floor with Republican support. This one will likely be a classic, with enough intrigue, double dealing, and bad blood to keep a political junkie satiated for at least two weeks. If you are a Rep. on the losing side then get ready for some much smaller office digs.

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Patrick Broaches New Toll Locations

Governor Deval Patrick, in an interview on WBUR, said that he had contacted federal authorities about the feasibility of adding tolls at all border locations. He indicated a belief that such a system could replace all of the current toll locations inside of Massachusetts, excepting possibly the tunnel. From the State House News Service:

Federal authorities are open to border tolls in Massachusetts, new tolling that could eliminate the need for the current fees, Gov. Deval Patrick said Friday. Patrick said he was considering “border tolls at all of the interstate entrances and maybe route 3 as well.” Federal approval is required on such border tolls, and Patrick has said his administration has contacted Washington. “We have made those overtures to the federal authorities to see if they would work with us, and they are open to it,” Patrick said during an appearance on WBUR on Friday afternoon. “If we did that right, it would be possible, possible, to remove all of the tolls inside of the Commonwealth. Maybe you’d keep something at the tunnel,” Patrick said

Pretty odd stuff in light of the fact that we are supposedly to receive a “transportation reform” plan from the Governor very shortly. Will this be a part of the plan, or is it a trial balloon to be considered later? The Senate Chair of Transportation, Steve Baddour of Methuen, has expressed vigorous opposition in the past to schemes involving border tolls on Rte 93. Has this possibility been vetted through the legislature? Would a new tolling system be in addition to a gas tax hike, or have an impact on the recommended size of such a gas tax hike?

The Governor, in the absence of his own plan, seems to continue to struggle with presenting a consistent message on needed transportation revenues. The Senate, and Senator Baddour and President Murray specifically, have beaten him to the door on the reform portion of transportation. That leaves him with the unglorious task of revenues. That brings to mind a saying that should resonate with the Governor: “He who hesitates…….”

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Rahm Gets Roasted

Rahm Emmanuel "salutes" his former House colleagues

With the New York Times running a profile today on Rahm Emmanuel I thought that it would be appropriate to post this video of then Senator Barack Obama roasting Rahm at a 2005 charity event. Some pretty funny stuff here, and the Times article may be the best yet on Emmanuel. Obama’s talking of Rahm’s accident which severed a portion of his middle finger is some of the funniest stuff on the video. Read the New York Times article here.

Posted in National News | Tagged , , , | 1 Comment

President Obama’s Weekly Address

President Obama talks about the need for the large stimulus package working its way through Congress. The President hit upon some familiar themes about where the spending will go, as well as his efforts to insure that the stimulus is transparent. There is no question that he will get this package through Congress, and get it through quickly. But there are a lot of questions, and some of those are not as yet resolved. The Massachusetts Mayors Association met today with Congressman Michael Capuano, and with Senator John Kerry. They helped to shed some light on some of the items in the package, and how that will impact localities. I will try to post some more specifics on the stimulus bill shortly.

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Governor to Cut $128 Million in Local Aid Mid Year

Governor Deval Patrick, in an address to the MMA this morning, announced a mid year local aid cut of $128 million, made against the lottery account and the additional aid account. Governor Patrick also announced that he would make no cuts to the Chapter 70 education aid account, leaving the full burden of the cuts on the city side of government.

The Governor announced that he will refile the Municipal Partnership act, and once again try to give some local taxing options to municipalities. Additionally the Governor will propose a 1 percent increase in the hotel and meals tax statewide, which he estimates will bring in $150 million, which he would propose to use to help offset the big cut coming to local aid in 2010. He offered an undefined ability for communities to reduce “required local contributions” to their local school systems under state formula.

In the area of management rights the Governor flinched, and while we have yet to see the specifics in the area of health care he proposed two items. 1) He proposes lowering the union veto over municipal entry into the state GIC from the existing seventy percent to fifty percent.
2) He proposed a mandate that localities and municipal unions agree to lower municipal health costs to that of the state GIC, and if such efforts fail he would propose to penalize communities by withholding future local aid payments.

The Governor claimed that the management package would give us “new tools” to better manage our communities. He also urged us to call our legislators to talk about the package, and build support for it.

In fairness the Governor, in advocating for local revenues, gives some recognition to the deep hole that municipalities are in, and that is appreciated. But he still proposes, as far as I can see, no meaningful management reforms that would help us to save money NOW. In the area of health care he actually takes a step backwards, giving municipal unions the potential ability to have localities penalized through the cherry sheet by simply not agreeing to health care changes. That is not reform, that is just more of the same. We will await the specific language in the bill before saying much more.

http://services.brightcove.com/services/viewer/federated_f8/271552990

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Paterson Chooses Kirsten Gillibrand

New York Governor David Paterson has chosen Congresswoman Kirsten Gillibrand to replace Hillary Clinton. From the New York Times:

Gov. David A. Paterson has selected Representative Kirsten Gillibrand, a 42-year-old congresswoman from upstate who is known for bold political moves and centrist policy positions, to fill the United States Senate seat vacated by Hillary Rodham Clinton, according to a person who spoke to the governor early Friday.

The reaction was not all positive, as some of the more left leaning elements of the Party have objected:

If Mr. Paterson was hoping to quiet the tumult over the selection process by picking Ms. Gillibrand, there were indications that he may not get his wish. Ms. Gillibrand, who has been endorsed by the National Rifle Association, is controversial among some of the party’s more liberal leaders downstate.

Representative Carolyn McCarthy, a Long Island Democrat and ardent gun control activist, said Thursday that if Ms. Gillibrand got the job, she was prepared to run against her in a primary in 2010. Ms. McCarthy was elected to Congress after her husband was killed in a gunman’s rampage on the Long Island Rail Road in 1993.

The saga ends for Caroline Kennedy, and in a pretty bad way, with the Governor’s staff sniping at her, and stories popping up about unpaid taxes and nannies. Once more a campaign falters due to the lack of homework, or a hubris that believes homework does not matter.

My thought that Andrew Cuomo would be the pick was far off base. Wrong again!

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