Point

The Internet certainly does add a new dimension to campaigning, with quick hitting ads posted and even quicker responses put up by the other side. John McCain here has some fun with some prominent Democrats, who are seen praising McCain when he was working across the aisle and infuriating Republicans across the country. Some nice words for McCain, who these days does not tend to get the same types of words from these Democrats.

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and Counterpoint

And here comes a pretty fast response from the Obama camp, with many of the prior McCain praisers expressing “shock and dismay” over the wrong turns McCain has made since the days when he was praised for bipartisanship. I think both are not so effective, but certainly are good fun for political junkies. Enjoy!

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Federal Medicaid waiver still not in hand

The Commonwealth of Massachusetts has sought and been granted a fourth extension on its request for a waiver from federal medicaid regulations. These negotiations between federal and state officials, critically important to the success of the Massachusetts health care initiative and to the FY2009 State budget, appear to be nearing completion. Yesterdays Boston Globe reported the extension request and highlighted the high stakes.

The federal payments, which are crucial for keeping the state’s landmark health insurance law afloat, were set to expire June 30, but the state has received three extensions, and a fourth would postpone the deadline for reaching an agreement until Aug. 25.

At stake in the negotiations between state and federal officials is more than $11 billion in federal funds over three years, money earmarked for dozens of healthcare programs in Massachusetts in addition to the state’s crown jewel: its two-year-old near-universal health coverage law that has provided insurance to more than 350,000 residents.

The critical nature of the waiver request was underscored by Senate Ways and Means Chairman Senator Steve Panagiotakos

“If we don’t get everything we are looking for in the waiver, we would either have to come up with the money through [state] reserves, or we would have to cut benefits,” said Senator Steven Panagiotakos, chairman of the Senate Ways and Means Committee.

Panagiotakos, who has been regularly briefed by the administration of Governor Deval Patrick, declined to discuss specifics but said state negotiators seemed cautiously optimistic about the progress of the discussions. But he said that the two sides are still in disagreement over funding for several key programs in the massive spending blueprint, and that if Massachusetts did not get what it requested for any one of those programs, it could have a large impact on the state budget.

And the negotiations continue, with a lot hanging in the balance. While the issue has had some coverage it seems to be relegated to the secondary news area. Nothing could be more important, and a failure here will likely bring an expedited effort to grant 9-c authority to Governor Patrick to deal with the negative impacts on the state budget. Stay tuned. Read the Globe story here.

Posted in National News, State News | 1 Comment

McCain stays on the attack

John McCain continues to attack Barack Obama on the “celebrity issue”, coming out with a new ad that contrasts Obama’s “celebrity” with everyday Americans struggling to make ends meet. I have criticized the McCain effort up to this point as a mismash with no real “message” to impart, but he is shaping up in that regards, using ad after ad to portray Obama as an “elitist”, “not ready to lead”, and now as a tax hiker. The Republican talking points are starting to sink in, and some in the Obama camp fret that he is not being forceful enough in response. Is this ad effective, and is the theme of Obama the elitist starting to sink in? From Obama’s perspective do you think he needs a more forceful response quickly? I do, as I think Obama runs a risk here of being defined by McCain. We have seen Republican success at this level in defining Democratic candidates, leaving the dems scrambling to undo the damage and forever playing defense. Good ad for McCain.

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Edwards admits affair

John Edwards has admitted to an extramarital affair after apparently being ensnared by the National Enquirer. Edwards has acknowleged lying about the affair, and is the latest in a long line of pols who have been caught in similar situations. Edwards has issued a remorseful statement, and we must have some sympathy for Elizabeth. I know Edwards must take some legitimate criticism, but does he have no expectation of any privacy?

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The Clinton Role

New pushing and shoving appears to be taking place between the camps of Barack Obama and Hillary Clinton. With the Democratic convention only a couple of weeks away new threats by the Clinton camp to enter Hillary’s name into nomination appear designed to bludgeon Obama on the issue of convention roles for the Clintons, as well as trying to force additional financial help from Obama to Clinton. Some news reports have Hillary expressing open dissatisfaction with the Obama teams help on finances, and Bill can’t quite bring himself to say Obama is “prepared” to be President.
Despite that it appears that Hillary will speak on Tuesday, and Bill Clinton will speak on Wednesday. And the camps are working towards an accomodation on the issue of a roll call vote with Hillary Clinton being entered into nomination. The principals themselves have given divergent statements on that issue. From the Washington Post:

“The best way I think to do that is to have a strategy so that my delegates feel like they’ve had a role and that their legitimacy has been validated,” she said. “It’s as old as Greek drama,” Clinton said. “There’s a catharsis. Everybody comes, and they want to yell and scream and have their opportunity, and I think that’s all to the good.”

Obama does not appear to be looking for a “catharsis” but rather for the best way forward for his candidacy.

But yesterday, Obama backed away from the idea of using a vote on the convention floor as a venting session.

“I’m letting our respective teams work out the details,” he told reporters on his campaign plane when asked about the convention standoff. “I don’t think we’re looking for catharsis. I think what we are looking for is energy and excitement about the prospects of changing this country, and I think that people who supported a whole range of different candidates during the primaries are going to come out of that convention feeling absolutely determined that we have to take the White House back.”

So Obama thinks that the convention ought to be designed with the nominee as the focal point. Apparently the Clinton’s disagree. They are engaging in a dangerous game here, and if the delicate balance that exists is thrown off there may be some who blame the Clintons. Obama is taking pains to downplay any rift.

Playing down the competing goals, Obama added: “I spoke to Senator Clinton this week. She’s campaigning for me in Nevada and Florida. She is very enthusiastic about the need for a unified party. I think we are going to have a terrific convention. As is true in all conventions, we’re still working out the mechanics of the four days. Our staffs are in communication, my staff with Senator Clinton’s staff. But I don’t anticipate any problems.”

There really is a limit to the type of pressure that the Clintons can apply. And I anticipate, after all the pushing and shoving, a unified convention that helps Obama. Anything less than that will have consequences for those that promote individual gain over party unity.

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The Paris Hilton Energy Plan

Is there some merit to the hybrid approach advocated by big thinker Paris Hilton? You be the judge.

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Dick Cheney Not Invited?

The Wall Street Journal editorial page is up in arms over an American Spectator report that Dick Cheney would not be attending the Republican convention. The McCain campaign, when asked about a Cheney invite, sidestepped the question, according to the Journal. I just cannot imagine why the McCain campaign would not want Vice President Cheney at this convention. The Journal, firm in their belief in the concept of preemptive strikes, announced that if Cheney were snubbed late night comedians would be speculating that “the missing Cheney must be at an undisclosed location”. I have to admit that the Journal is right about that one. Problem for the Republicans is that Cheney is no one joke Vice President. (Insert hunting joke here). The Journal talks Republican morale in their editorial:

If the Senator gives the impression that he agrees that Mr. Cheney is not fit for decent company , he’ll demoralize his friends and encourage his opponents.

Again I agree. It should be the goal of Democrats everywhere to see to it that Dick Cheney not only is invited, but given a prominent speaking role at this convention. It would be wrong of Senator McCain to snub Dick. Lets send the McCain camp some email on this, telling them that we want Cheney! And for more Cheney fun check out the new Obama website www.thenextcheney.com

Maybe that website will help you make your Republican selection in the VEEP sweeps contest here.

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U.S. Spends, while Iraq saves

While the United States continues to spend billions of dollars on reconstruction of Iraq the Iraqi government is now showing a surplus of $79 billion, the result of increasing oil sales. From the New York Times:

Soaring oil prices will leave the Iraqi government with a cumulative budget surplus of as much as $79 billion by year’s end, according to an American federal oversight agency. But Iraq has spent only a minute fraction of that on reconstruction costs, which are now largely borne by the United States.

With the United States running enormous deficits our spending in Iraq is from borrowed money, while the Iraqi’s continue to bank their expanding oil revenues. It is amazing to see the reckless disregard for any type of fiscal sanity here.

In one comparison, the United States has spent $23.2 billion in the critical areas of security, oil, electricity and water since the 2003 invasion, the report said. But from 2005 through April 2008, Iraq has spent just $3.9 billion on similar services.

And our own infrastructure in the United States continues to crumble due to lack of money, and we are borrowing money to rebuild Iraqi infrastructure while they accumulate reserves???? This is good policy? Where are the fiscal hawks of the Bush Administration and the Republican Party? Oh, they are only against domestic spending. Senator Carl Levin (D) and Senator John Warner (R) issued a statement:

“The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects,” Mr. Levin, who is chairman of the Senate Armed Services Committee, said in a joint statement with Mr. Warner. “It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank.”

Yes that makes sense to me, but where is the action to stop U.S. spending on Iraqi infrastructure? The Iraqi’s claim that the new government has problems spending the money properly.

Sinan al-Shabibi, governor of the Central Bank of Iraq, which the report said was holding $5.7 billion of the surplus at the end of 2007, said that while he could not speak for the government, problems with spending money often had to do with continuing security problems and a shortage of expertise in Iraqi ministries.

That is fine, but how about re-imbursing us for the money that we are spending? If they can’t spend it I am sure that they can transfer it to us. Another fiscal outrage! Read the New York Times story here.

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Another Monster Bill Coming Due

The Boston Globe is reporting today that the state commission set up to report back on how the Commonwealth will finance its health care obligations to public retirees estimates that it will take $200 million a year for twenty years to fully fund this obligation. The report estmates a potential $13.3 billion dollar unfunded liability in this account that needs to be dealt with immediately. Commission members pointed to the need for immediate action and the difficult choices that lay ahead. From the Globe:

The state must come up with about $200 million a year for the next 20 years to pay off an estimated $13.3 billion in looming healthcare costs for its retirees, according to a stark new report by a Beacon Hill commission. If the state acts now, and begins socking away the money every year, it could reduce those costs to $7.5 billion, the report says. The report was vague about how the state could come up with the money, and lawmakers are already struggling to fund repairs to crumbling roads and bridges, pay for the rising cost of the state’s new healthcare law, and provide property tax relief to cities and towns.

Lawmakers decried the difficult choices ahead.

Legislators warned that they may not be able to find money for retirees’ healthcare unless they slash other programs or cut benefits for future retirees – options that are sure to meet stiff resistance from the powerful retirees’ lobby.

“It’s going to make the prioritization and choices even more difficult as we go forward, about what to keep and what to cut,” said state Senator Steven C. Panagiotakos, the Senate budget chief, who served on the commission.

Representative Jay R. Kaufman, a Lexington Democrat who cochaired the commission, said the report had at least “tackled the challenge of beginning to address how we are going to provide for public sector retirees.”

“But as the report makes clear, it will take discipline, political will, and a lot of money to do this right,” Kaufman said in a statement. “We dare not fail because the price and consequences of inaction are huge.”

And Treasurer Cahill weighed in as well.

“It can be done with less pain today, than if we put it off but, it’s not easy,” Cahill said. “There is that 800-pound gorilla out there, waiting to be fed – and the liability is not going to get smaller, because healthcare costs are going up.”

The continuing inaction as we head towards the fiscal cliff is stunning. A story yesterday on the terrible fiscal condition of the M.B.T.A. is another in a long line of stories detailing the gross mismanagement that has occurred at the state level for twenty years or more. The potential for the repeal of the state income tax just keeps inching up, day after day.

Posted in State News | 2 Comments