Final Budget Numbers

I have placed the final budget up in adobe format as promised. Sorry it took so long.

Methuen Budget FY2008

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Erasing Boundaries Part Two

In a previous post I mentioned that I would like to review some of the 19 months of activities, with some highlights being brought forward here. Several months ago Methuen, Lawrence, Andover, and North Andover and the Merrimack Valley Chamber of Commerce received the Kenneth Pickering Innovation in Local Government Award from the Mass Municipal Association. This award was based on the Chamber of Commerce’s the Merrimack Valley Means Business program. In essence the four communities have worked in collaboration to bring economic development to the Merrimack Valley and create a strong program to not only bring new investment to our region, but to protect existing investment and the jobs associated with those investments. In a global economy such cooperation, while not standard, is essential. I have worked with Chamber President Joseph Beviliqua on a whole range of issues, and he deserves high praise for being the spearhead of this program. Mayor Michael Sullivan of Lawrence, along with Town Manager Mark Rees of North Andover and Buzz Stapcinski of Andover have been great as well. Read the MMA description of this program at this link.

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Erasing Boundaries

With all of the talk of municipal finance and of raising additional revenues not much has been said about the need to change the way we do business. On Monday I will propose to the Methuen City Council that the School Department and the City merge their Human Resources function, creating one Director for both City and School. This merged Department will have one person doing the job that two had done previously, simply because of an artificial boundary between City and School. Superintendent Whitten and I have authorized the purchase of a new software system that meets the needs of both City and School in the area of Human Resources. In the past each side would have created specifications for their software and purchased it separately. Even though the school side does have different requirements related to education we went the extra bureacratic mile and found the right software. While this is only one department I truly believe that it is the wave of the future. Artificial barriers that create additional administrative expenses for cities and towns must be broken down. The property tax can no longer afford additional expense based on turf-protection.

Posted in Methuen, Municipal Finance | 9 Comments

Newark Teachers Union Steps Up

Out of Newark, New Jersey came an interesting story about Newark’s powerful teachers union in yesterday’s New York Times. Essentially the story is that the Newton Street School, having failed in six consecutive years to make Adequate Yearly Progress under No Child Left Behind, is being taken over by a management group that includes the teachers union. As part of this change the union has signed off on the removal of at least a dozen teachers.

“It was probably the hardest thing that I’ve had to do,” said Joseph Del Grosso, the longtime union president, who helped push through raises for teachers this spring during a state budget crisis, and went to jail for nearly three months in 1971 for taking part in a teachers’ strike.

The Union is doing much more than participating in management. They have applied direct union financial resources to benefit this school.

The union, which has a $3.5 million annual budget, has already spent $100,000 on teacher training and a retreat, and has set aside another $100,000 this year for professional development and to help pay for staff, supplies and field trips for the students at Newton. The union and Seton Hall are also leading a campaign to raise $250,000 from business and community leaders to create a school garden and a playground.

This teachers union has its critics. In response to some of the criticisms Mr. Del Grosso has said:

As both a teacher and a union president, Mr. Del Grosso said he had an insight into the “systemic problems in education.” One, he said, is a lack of discipline among students because so many teachers are reluctant to intervene when faced with the threat of potential abuse allegations and lawsuits from parents.

And the Union management participation has changed the rules, at least at the Newton School.

At the Newton Street School, Mr. Del Grosso has told teachers to expect to supervise more detention periods for misbehaving students, and, if necessary, to work with them on Saturdays. Teachers who are unwilling to do so will be moved to another school because they do not fit in with the plan for what is being called the “new Newton,” he said.

The school also plans to have teachers specialize in certain subjects, like math or social studies, and may move out some teachers who lack such specialties, Mr. Del Grosso said.

So, what do you think? Is teacher participation in school management something that we can expect to see more of in the future. The article cites Union participation in charter schools in several cities.

Teachers’ unions in Chicago, Boston, Baltimore, Miami and Minneapolis have also started running schools jointly with their local public school districts in the past few years, according to the American Federation of Teachers, the nation’s second-largest teachers’ union.

What about this teachers? Is this a good trend, a bad trend, or an abberation. Food for thought. Read the New York Times article at this link.

Posted in Municipal Finance, National News | 2 Comments

Straight Talk Express Derails

The John McCain campaign announced yesterday that they were laying off scores of staffers as fundraising has been abysmal. McCain, down to two million dollars on hand, reportedly laid off between 50 and 80 staffers, including half of his Iowa staff. In Iowa McCain’s state director was amongst those leaving. Although the financial handwriting has been apparent for some time it is still a stunning development, fueling rumors that McCain will soon leave the race. With the deep and rancorous divide in the Republican Party is is apparent that Republican donors have been voting with their wallets. McCain has been seriously hurt by the immigration bill position he took, as well as lingering resentment amongst some over past positions. These include initial opposition to the Bush tax cuts and the McCain-Feingold Campaign Finance Law. McCain has been trying for some time to appease the right and make amends with the Bush folks, but as he is learning there is no such thing as being half-pregnant. Either you are in or you are out, and McCain tried to be both. I think McCain is forced to withdraw after New Hampshire. He is in for a severe shellacking in Iowa. If you are handicapping Mitt looks a little better today, and I believe should be the “betting” favorite for the Republicans. Read the New York Times article on McCain’s financial woes at this link.

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Bush Commutes Libby Sentence

President Bush commuted the prison sentence of former Vice-Presidential Chief of Staff I. Lewis “Scooter” Libby today. Libby, sentenced to 30 months in prison for his role in the Valerie Plame CIA leak case, was scheduled to go to prison shortly. Bush left intact the conviction, making the case that the sentence was “excessive”. From MSNBC-

“I respect the jury’s verdict,” Bush said in a statement. “But I have concluded that the prison sentence given to Mr. Libby is excessive. Therefore, I am commuting the portion of Mr. Libby’s sentence that required him to spend thirty months in prison.”

Democratic reaction was uniformly negative.

“Libby’s conviction was the one faint glimmer of accountability for White House efforts to manipulate intelligence and silence critics of the Iraq war,” said Senate Majority Leader Harry Reid. “Now, even that small bit of justice has been undone.”

House Speaker Nancy Pelosi, D-Calif., said Bush’s decision showed the president “condones criminal conduct.”

As a Democrat I find myself not getting to worked up about this. I can criticize the President for substituting his judgement for the judge’s judgement, but I realize that Libby was not the source of the original leak. I do believe that he mislead the prosecutor deliberately and should pay a price for that. I’m not sure that thirty months in jail, along with the fine and loss of reputation and job, was warranted. Maybe I am to cynical, but with the pressure from the right on President Bush on multiple fronts I really expected a full pardon. Am I being to easy on the Republicans?

Statement of Special Counsel Patrick Fitzgerald

Statement of President George Bush

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IBEW Local 103 Partners with Greater Lawrence Technical

IBEW Local 103Having been in office for about 18 months I would like to, on occasion, highlight some of the actions that have been notable. Upon coming into office IBEW Local 103 Business Agent Lou Antonellis and I were looking for ways to get the Union more involved from an educational perspective. As we brainstormed we came to the same institution, the Greater Lawrence Technical School. Working with then Superintendent Frank Vacirca and the excellent staff at the School a program was developed where one top student from the Greater Lawrence Technical School in the electrical field would be admitted into the IBEW apprentice program every year. Admittance to this program is highly selective, and it was a generous decision on the part of IBEW 103. In year one two students were selected. It is a natural and ongoing partnership, and one that benefits the Union and the School. Congratulations to Local 103 for their generous consideration.

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Happy Fourth of July!

As we get ready to celebrate our Independence Day our thoughts and prayers are with our troops serving our country overseas. Both Afghanistan and Iraq are difficult theatres of war, and our men and women have performed admirably in those difficult circumstances. Methuen Fireworks Celebration: The 2007 Methuen Fireworks Celebration will be at Nicholson Stadium, Tuesday, July 3, featuring Velvet Elvis, and Beetle Juice and Friends performing at 7:30pm. Spectacular Fireworks show choreographed to music begins at 9:30pm. Information: 978-983-8590.

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Representative Campbell Press Release

A press Release by Representative Linda Dean Campbell on the twin issues of State assimilation of some local pension systems, as well as local participation in the GIC (State Health Insurance)

Methuen to Pass on Commonwealth Health Care this October – but will take advantage of state management of pension funds.

According to Representative Linda Dean Campbell the City of Methuen has many options regarding future health care under the legislation passed last week by the Massachusetts House of Representatives, and this week by the Senate. “This legislation would allow city and town employees and teachers to receive the same health coverage as state employees under the State Group Insurance Commission Plan.

Under this legislation, commented Campbell, Methuen will have the option of enrolling in the plan starting October 1st 2007. Once a community signs on however, they are obligated to stay with the state plan for a minimum of three years. “Cost increases are significantly lower under the state plan. For example health care coverage at the local level has skyrocketed. In Methuen the percentage increase between FY01 and FY06 is approximately 90%. The state increase during the same period was approximately 48%.” Campbell and Methuen Mayor Bill Manzi agree that Methuen will need to evaluate the plan to determine whether October entry makes fiscal sense for Methuen.. Health Care under the state’s plan is expected to rise 5% during FY09 – this is substantially lower than expected for local plans. “ I will be working very closely with Methuen’s leaders on this particular issue for the indefinite future – this is our budget buster – we must reduce health costs or face layoffs or raise taxes – this is a way the state can help.

Methuen will also be directly affected by legislation passed yesterday by the house pertaining to pension funds currently managed at the local level. Under this legislation, cities and towns performing 2% below the state’s Pension Reserve Investment Trust Fund (PIRT), and whose obligations outweigh assets by over 35% will be required to join the state’s pension fund… According to Campbell, “Methuen falls into both categories by a narrow margin. Actually, Methuen’s retirement board has performed exceptionally well.” Tom Kelly, Methuen’s city auditor concurs, “Like most communities in the Commonwealth, , other areas of municipal spending have impacted retirement funds, for example early retirements ”. In the last analysis, explains Campbell, it does not matter – “Methuen will have the benefit of a historically excellent performing fund with over 47 billion in assets managed by a staff of 23 full time professionals.” This legislation will indirectly help with property tax relief and will help to ensure that there will be sufficient funds to fund all future local public employee retirees.

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Caritas Deal Falls Apart

The financial deal that was going to have the St Louis based Ascension Health take over the Caritas Christi Health Care System of Massachusetts collapsed yesterday, the victim of financial disputes between the systems on the terms of the takeover. From the Boston Globe:

Ascension, the nation’s largest Catholic healthcare system and largest nonprofit healthcare system, has 65 hospitals and other facilities in 20 states. The Caritas Christi system is the second-largest hospital chain in Massachusetts after Partners HealthCare System Inc., and employs about 12,000. It includes St. Elizabeth’s Medical Center in Brighton, Carney Hospital in Dorchester, Caritas Good Samaritan Medical Center in Brockton, Caritas Holy Family Hospital in Methuen, St. Anne’s Hospital of Fall River, and Caritas Norwood Hospital.

The Caritas System has been troubled for some time, and the deal with Ascension had the potential to create the financial conditions for the continued existence and improvements in the system. Without this deal Caritas will continue to struggle.

The deal’s failure leaves Caritas Christi in a vulnerable position because it is losing patients and has limited access to capital.

“This is a blow to Caritas,” said Ellen Lutch Bender , who runs a healthcare consulting firm in Boston. “Caritas’s ability to stabilize itself long term in the absence of a merger or affiliation will be a struggle.”

With Holy Family in Methuen a part of the system I have heightened concern for the ongoing viability of Caritas. Holy Family is an integral part of Methuen, and we will work to keep it that way for years to come.

Link to the Globe Story here.

Link to the Ascension-Caritas Statement here.

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