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

Obama fights back on energy

Barack Obama, under attack by the McCain campaign on oil pricing, hit back with a new ad today. The lines are clearly drawn, as Obama dismisses the immediate benefit on oil pricing that additional drilling would bring. He lays out the need for alternatives to our current energy policy, and throws in the thousand dollar rebate for good measure. Is it effective?

Posted in National News, State News | 3 Comments

A tough winter ahead

The Boston Globe is reporting what most of us are expecting, and that is that home heating costs are likely to escalate sharply this coming winter. From the Globe:

The increase will have an especially dramatic impact on the nearly 1 million households that are heated with oil, which now sells for about $4.70 a gallon, up from $2.59 a year ago, according to the Massachusetts Department of Energy Resources.

Heating costs are expected to keep rising, the report says. The state’s average household oil bill next year could top $3,000, according to the report by the UMass Donahue Institute, a university think tank. All told, consumers can expect to spend $4.45 billion for gas and oil heat in 2009 – a $469 million increase from 2008.

The implications of that for New England are obvious, and many people will not be able to heat their homes this winter. The Governor is requesting additional federal assistance for hard hit homeowners, but that is not likely to happen.

In anticipation of winter heating bills, Governor Deval Patrick and legislators last month created a “Winter Energy Costs” task force to figure out how to help residents cope. Patrick, along with lawmakers in several other New England states, has requested that the federal government boost the region’s home heating assistance to $1 billion, from $267 million last winter. Without the increase, which would provide the Commonwealth with up to $500 million in home heating assistance, the state will be hard-pressed to help even a fraction of those in need, said Lisa Capone, a spokeswoman for the state Executive Office of Energy and Environmental Affairs.

On top of the human suffering that this will cause we also continue to engage in the greatest transfer of wealth in history, while Washington fiddles. And as I have said before more drilling can be debated, but the idea that we can equate additional drilling rights for oil companies to a national energy policy is ludicrous. Do we need to see people freezing in their homes before this realization hits us?

Read the Globe story here.

Posted in Methuen, National News, State News | 8 Comments

Obama agrees to 3 debates

It appears that Barack Obama has agreed to the three debates sponsored by the Presidential Debate Commission but no more. The NY Times is reporting that Obama appears to have rejected the joint town hall appearances suggested by the McCain campaign, although the Obama camp blamed McCain. McCains campaign pounced, ridiculing Obama as an international celebrity who would feel it beneath himself to make such joint appearances. Obama is apparently going to play it safe. I do not believe Obama should shy away from more debate, as McCain,in my opinion,is more likely to make a mistake. But fear of error should never guide these decisions,

Posted in National News | 8 Comments

Obama shifts (slightly) on drilling

Senator Barack Obama, in a nod to some political realities, agreed that where a good energy compromise bill could be negotiated he could support some additional offshore drilling. From the New York Times:

“If we come up with a genuine bipartisan compromise, where I have to accept some things that I don’t like in order to get energy independence, that’s something I will have to consider,” Mr. Obama said

Still, he cautioned that he is not yet “ready to sign off on any approach.”

Faced with a barrage of negative ads from John McCain blaming off shore drilling prohibitions for the price of gas Obama and the Democrats have been in full retreat, with growing majorities in both houses of Congress seemingly ready to modify these past prohibitions. And with Congress having left without any action on energy their is rightful criticism by the public on this lack of action. Obama is correct here. If the Democrats can get some real positives from an energy bill that is not perfect then it should be explored, even if it means some additional drilling. Obama, contrary to the political attacks launched on him, has shown again a very pragmatic side. Will he take criticism from the left for that pragmatism? Good call, and especially if a compromise bill emerges.

Posted in National News | 8 Comments

Enter the VEEP Sweeps

All right now lets all get our best pundits hats on and make our predictions on the choice for Vice President by both nominees. I propose a contest for the readers of this blog. I will ask that you send to me via email your picks for Vice President of both parties at veepcontest@comcast.net The winner will be the person picking correctly both party choices. In the case of a tie I will draw the winner by pulling a name from those tied out of a hat (or something resembling a hat). I will send the winner a twenty dollar store card for Starbucks at the fabulous Loop in Methuen (good at any Starbucks but the coffee tastes better in Methuen)! Lets have at it. This contest ends as soon as either John McCain or Barack Obama announces a choice. One entry per person, and your entry must have your name and address so I can mail you your Starbucks gift card. If no one enters I will award myself the gift card even if I am wrong on the picks. If I am in violation of any state or federal contest laws please wait until the contest is over before reporting me. Good luck! Please feel free to post those picks here.

Posted in Methuen, National News | 11 Comments

McCain the undisciplined

With the two posts on campaign ads bringing some comments about effectiveness a story in todays Washington Post highlights some of my criticism of McCain’s political strategy. Essentially saying that McCain refuses to stay on message the story highlights McCains undisciplined campaign style, which has endeared him to many but drives political pros crazy. It also results in a muddled media message, and a lack of focus in the campaign. As a Democrat I hope McCain keeps it up, because the lack of focus is ceding Obama a lot of ground. From the Washington Post:

For weeks, McCain’s staff has been criticized for running a campaign that has no clear message. The decision by the senator from Arizona to have former Bush strategist Steve Schmidt run daily operations was described as a way to get control of the message. But some Republicans outside the campaign believe that not much has changed since then.

“It’s the candidate,” said one GOP strategist with close ties to the campaign, who added that efforts to identify a theme for each week quickly unravel as McCain veers off message in his public comments.

At a town hall meeting in Pennsylvania last week, McCain stood before a banner that proclaimed “Energy Solutions” and “The Lexington Project” — the moniker his campaign coined for an energy proposal featuring a combination of conservation efforts, expanded offshore drilling and nuclear power.

McCain rambled quickly through the details and showed little appreciation for the art of “branding.”

“I call it the Lexington Project, my friends, but you can call it anything you want,” he said.

Even trying to win over conservatives has been a problem for McCain some days, as his tendency to ramble a little takes him into difficult waters.

At a town hall meeting Tuesday, a GOP voter posed a question McCain has heard everywhere from Sparks, Nev., to Dayton, Ohio: Why should Republicans support him?

“I think I speak for a lot of conservatives when I say I’m not very excited about this election,” the questioner said, noting that he differs with McCain on issues including “amnesty” for illegal immigrants and the senator’s support for “the global warming crowd’s agenda.”

But rather than rattle off his most conservative positions — his opposition to abortion and support for the war — he launched into a long explanation of his role in a compromise on judges, something that conservatives often criticize him for.

He sparked applause from the Republican audience by mentioning his support for conservative Supreme Court Justices John G. Roberts Jr. and Samuel A. Alito Jr., but he then noted that he had backed liberal Justices Ruth Bader Ginsburg and Stephen G. Breyer as well.

McCain finished off what was supposed to be an explanation of why conservatives should back him with a pledge to push for a cleaner planet.

McCain has seriously veered off message with comments that “everything is on the table” with regards to a social security fix, including higher taxes on top earners. That drew a sharp rebuke from the Wall Street Journal editorial page. He has also muddled his message on the “timetable” issue in Iraq, saying that Obama’s sixteen month timetable for withdrawal was “pretty good”.
I guess that political pros notwithstanding McCain is going to be McCain. Read the Washington Post article here.

Posted in National News | 7 Comments

The Obama response

And after yesterdays post lets look at the Obama response. Effective? From Obama’s perspective I like the photo of Bush and McCain together, feeding into the “McSame” theme. Alternative energy proposals? Good visuals for Obama. Taking on big oil? A no brainer. Overall I give it a b+. I give McCain a c-.

Posted in National News | 2 Comments

Obama compared to Britney?

The McCain campaign continues to struggle with the Obama factor in this race. They have criticized the media for slanted coverage, and ridiculed his overseas trip, referred to him as “the chosen one”, and now they have taken the drastic step of comparing him to Britney Spears and Paris Hilton. Now that is some plain out dirty campaigning! But with the levity aside it shows me that the McCain folks still don’t have a consistent message to try to tear Obama down. I may be wrong, but I see this ad as a waste of McCain money. What do you think? Is it in any way effective?

Posted in National News | 7 Comments

Methuen Master Plan Passed

Culminating a two year process the Methuen City Council voted 8-1 in favor of passing a new Master Plan for Methuen, and adopting a new city wide zoning plan that was the result of our master planning process. The zoning re-write was the first one in Methuen for over twenty years. I would like to thank Economic and Community Development Director Karen Sawyer and her staff, who worked very hard on this project. I do not wish to review the overall plan through this posting, but I will say that modernizing our zoning to recognize important new concepts in land use was imperative. Our attempt to do so created some discomfort, and we made changes based on input from the public. Our work with the neighborhoods of the city produced a better plan. My thanks to the City Councilors who worked with me to produce positive results for Methuen, and I appreciate the fact that most City Councilors were about compromising to achieve real gains for Methuen.

Posted in Methuen, Methuen City Council | 7 Comments