The 12% Solution

The President spent his weekly address on the upcoming budget submission, and on the federal deficit. He, like the Republicans in the House, has chosen to emphasize reductions or freezes in spending on the so called discretionary portion of the budget, which constitutes a very small piece of the overall budget. While we have not seen his submission yet we can assume, based on today’s message, that he will not venture into the only areas where you can really make appreciable headway on the deficit, namely defense spending and entitlements. The President makes no reference to the deficit commission, and like the House Republicans, spins a budgetary tale that would have us reducing the deficit by $400 billion over a decade. That figure is as laughable as the Republican effort.

The President did say something that I agree with, which is that we need to continue to make needed investments in certain areas. But his policies, which are Republican lite, focus all of the deficit cutting effort into exactly the areas where we may need some additional spending. On top of that there is no realistic hope of actually making a dent in the deficit by cutting only in those areas, and you allow the Republicans to claim to be driving spending reductions that are real, but ineffectual in cutting the deficit. It is politically difficult, but the President must lead on this issue, and lay the groundwork for sane fiscal management that does not restrict cuts to the 12% of the budget that is the current target.

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Governor Patrick Reforms Indigent Defense

Governor Deval Patrick, in his recently submitted budget, proposes to save some $40 million dollars by overhauling the way the Commonwealth provides lawyers for indigent defendants. Currently the Commonwealth utilizes the services of about three thousand private contract lawyers to provide legal counsel to those who cannot afford to hire their own lawyers. This bill has been about $160 million annually, and has also been a real sore point with the District Attorneys, who have maintained that the defense bar is seeing budget increases at a time when their own budgets are being cut. The Governor proposes to hire one thousand lawyers and support staff to bring this function back “in house”. His estimate is that the savings will be over $40 million, and that number is reflected in his proposed budget. It is fair to say that the defense bar, seeing that $160 million dollars disappear, will put up a strenuous fight against the Governor in the Legislature. It appears to me that the Governor suspects that the private lawyers are doing some “bill padding”. This is his way of getting his arm around those costs while addressing the concerns of the state’s District Attorneys. The Globe seems to think it is a good idea. Read their support editorial here.

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Jim Munro is February Artist of the Month

Photographer’s Work on Display in the Mayor’s Office

Mayor William M. Manzi has named Jim Munro as February’s Artist of the Month. Jim has lived in Methuen for 35 years with his wife Pam. He is the father of Alison Munro Walsh and Andrew Munro.
Jim is the owner of Munro Graphics Commercial Printers in Lawrence. Munro Graphics was a Methuen Square landmark for many years.

Light and shapes, both those found in nature and manmade, inspire Jim’s photography. He finds his subjects in the woods of the Merrimack Valley, among the stone mills of Lawrence, on the beaches of Plum Island, and in the rural countryside of his adopted part time home of Prince Edward Island, Canada.

Jim’s style of photography can only be described as eclectic. It’s a blend of black and white minimalism and colorful landscapes.

Mayor Manzi stated, “I’d like to personally thank Jim for his participation in this program. He is one of the many talented photographers working and living in our community. It is an honor to display Jim’s photographs. I encourage people to come to my office and view his work.”

The Methuen Artist of the Month Program was created by Mayor Manzi five years ago in order to give members of the Methuen Arts Community a forum to display their work and to encourage participation in Methuen’s growing creative economy. Methuen artists interested in being considered for Artist of the Month should contact the Mayor’s Office.

Jim Munro, February Artist of the Month

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Municipal Leaders Letter on Health Care Reform

Below is the letter that was printed in yesterday’s Tribune, and that has received coverage throughout the State, signed by Mayors and Managers throughout Massachusetts.

A PLEA FOR MUNICIPAL HEALTH INSURANCE REFORM

and Support for Governor Patrick’s Municipal Health Insurance Bill

As has been well reported, health care costs for municipal employees are growing at an unsustainable rate. Finding ways to curb this dramatic growth is absolutely essential to maintaining basic city services. The annual increase in municipal health care costs is robbing money from our schools, public safety efforts, public works projects and other important programs.

Local leaders have been clamoring for municipal health insurance reform for many years as a way to help manage budgets during these fiscally challenging times. With that in mind, we are writing to express our support for legislation proposed by the Governor entitled, “An Act Further Strengthening the Commonwealth’s Partnership with its Municipalities” which aims to provide material and immediate savings to communities facing soaring health insurance costs.

This proposal will require that municipalities and its unions engage in expedited negotiations to establish new health insurance coverage, either by joining the Group Insurance Commission (GIC) or adopting local plans with benefits comparable to those provided by the GIC. If the parties can not reach agreement within the expedited negotiation period, the municipality will have the right, without a union veto, to either join the GIC or adopt the lower cost plans. This represents a multi-million dollar savings to municipalities, helping many communities to avert an out and out budget crisis. And a switch to the GIC will provide local employees with some of the top rated commercial plans in the nation with benefits that are at least as generous as those provided to over 300,000 state and municipal employees and their families. By any measure, employees will continue to receive quality health care at a reasonable price.

For far too long municipalities in Massachusetts have been denied authority to manage and moderate rising health insurance costs. While we have been able to work with our collective bargaining unions on a host of issues, solving the problem of rising employee health care costs has been much more elusive. Now more than ever, providing Mayors and Managers this vital tool is critical to balancing local budgets as we struggle to absorb even further reductions in local aid. Although additional work will be required of the Administration to finalize the regulations, in order to implement the necessary savings by the start of the next fiscal year, it is imperative that the Legislature act swiftly to adopt the proposed measure now. We urge legislators to make municipal health insurance reform their highest priority and quickly approve this measure so that savings can be achieved in Fiscal Year 2012, which begins July 1st.

After several years of mulling over this issue, we need this bill passed so that we can continue providing municipal services at the quality our residents have come to expect, but with the cost savings and efficiencies that taxpayers demand.

Jay Ash, City Manager of Chelsea
Thatcher Kezer, Mayor of Amesbury
Tom Ambrosino, Mayor of Revere
Carolyn Kirk, Mayor of Gloucester
Andrew Bisignani, Town Manager of Saugus
Scott Lang, Mayor of New Bedford
Michael Bonfanti, Mayor of Peabody
Bernard Lynch, City Manager of Lowell
Joseph Curtatone, Mayor of Somerville
William Manzi, Mayor of Methuen
Rob Dolan, Mayor of Melrose
Wayne Marquis, Town Manager of Danvers
Kim Driscoll, Mayor of Salem
Andrew Maylor, Town Admin of Swampscott
Clare Higgins, Mayor of Northampton
William Scanlon, Mayor of Beverly

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Rand Paul: Real Republican Ideology

Rand Paul, in the inverse of the politically weak House Republican effort, took to the Subway interview series on ABC to talk about the $500 billion dollar in cuts he is proposing to this years budget. Unlike the House Republicans, Rand Paul is willing to talk about the real ramifications of his proposals, and is willing to show how he would balance the budget. He talks about the need for defense cuts, the lack of courage amongst Republicans in detailing what needs to be done to balance the budget, and his calls for the elimination of all foreign aid, including aid to Israel. Agree or not Rand Paul, unlike Paul Ryan, is willing to stand up and back up his campaign rhetoric with SPECIFIC proposals to eliminate spending and actually balance the budget. Paul’s refusal to consider any hike in revenues (tax increases) is not papered over. His position is that you should try to achieve balance through spending cuts alone. I don’t agree, but the man is willing to admit when the numbers do not work, and willing to say that his methodology would require specific and steep spending cuts that will generate real political opposition. After the embarrassing House Republican proposals on this years budget Paul will allow you a true glimpse of where we would go with the Republicans. Give him credit for that. Read the Politico story here.

http://abcnews.go.com/assets/player/walt2.6/flash/SFP_Walt_2_65.swf

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Methuen Public Schools Closure Announcement

Below is the announcement from Superintendent Scannell on the closure of the Methuen Public Schools on Monday and Tuesday of next week.

Contact: Judith A. Scannell
Superintendent of Schools
Methuen, MA
Phone: (978) 722-6000
E-Mail: jhscannell@methuen.k12.ma.us

FOR IMMEDIATE RELEASE

Methuen Public Schools Closed Monday and Tuesday, February 7th and 8th

Methuen, MA—On Friday, February 4th, Mayor William Manzi, Superintendent Judith Scannell, Department of Public Works Director, Ray DiFiore, Methuen Public Schools Director of Facilities, Bruce Stella, and Methuen Public School Maintenance Craftsman, Ken DiGiulio, met to discuss the condition of all of the public school building roofs, in reaction to the growing concern about the number of roofs that have been collapsing as a result of heavy snow. The group’s unanimous and proactive decision was to close all public schools in Methuen on Monday and Tuesday, February 7th and 8th to remove snow from the roofs.

“The schools are absolutely structurally safe, stated Superintendent Scannell, but there are drifts as high as ten feet and we need to remove the snow as soon as possible.”

The recommendation from architectural firm Omrarchitectz on Thursday was clear: Because of the recent and unusual large amounts of snow, low temperatures, high moisture content from past storms, and the forecast for Saturday’s upcoming storm (heavy rain and snow), it is prudent to consider removing snow from the roofs of all public school buildings.

“In order to get the work done in the safest possible manner, we cannot have children in the vicinity,” stated Scannell.

School and all school activities will resume on Wednesday, February 9th.

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Republicans Come Up Short

As predicted here last month the Republican majority in the House has run away from their first promise, to cut $100 billion out of this years budget. I hate to say I told you so, but I told you so. The Republicans announced a cut of $32 billion against the benchmark of last years spending, including a hike in defense spending. Paul Ryan, the new Chair of the House Budget Committee, issued a bold statement announcing an end to profligacy.

House Budget Committee Chairman Paul Ryan (WI-01) today announced spending limits for the remainder of the current fiscal year, a significant step forward to cut government spending and help spur economic growth and job creation. The measure will bring non-security discretionary spending back to pre-stimulus, pre-bailout levels, as House Republicans called for in their Pledge to America. For the remainder of the current fiscal year, the measure will save $74 billion relative to President Obama’s budget request.

With respect to today’s effort to cut spending and spur economic growth, Chairman Paul Ryan issued the following statement:

“Washington’s spending spree is over. As House Republicans pledged – and voted to affirm on the House floor last week – the spending limits will restore sanity to a broken budget process and return spending for domestic government agencies to pre-stimulus, pre-bailout levels. Last year, House Democrats failed to pass, or even propose, a budget and the spending binge continued unchecked. After two consecutive trillion dollar budget deficits and with unemployment remaining unbearably high, we must chart a new course.

“The spending limit measure marks another step in House Republicans’ continued efforts to change Washington’s pervasive culture of spending. In one of our first acts in the new Majority, we voted to cut Congress’s own budget. We voted to cut trillions of dollars in new government spending by advancing a repeal of the President’s health care law. The President has asked for an increase in the national debt limit, but we must first work to enact serious spending cuts and reforms. Endless borrowing is not a strategy. Business as usual in Washington is not acceptable.

“House Republicans will continue to build upon this down payment, working to restrain the explosive growth of government and to help restart America’s engine of economic growth and job creation.”

The Chairman will establish this limit by filing a discretionary spending allocation when the U.S. House of Representatives returns to session next week. The measure will provide enforceable limits on discretionary spending bills for the remainder of the fiscal year until Congress adopts a budget resolution for Fiscal Year 2012.

Chairman Ryan could not even hit the $100 billion dollar mark when using the benchmark of the recommendations of the Obama Administration. Note how the Republicans moved the goalposts by utilizing the significantly higher benchmark of recommended spending by the President, rather than the CAMPAIGN PROMISE of utilization of last years actual spending. $32 billion in a trillion dollar budget is a real bold step by the new majority, eh????? This comes after reducing revenues by about $750 billion over ten years by pushing through tax cuts that were not paid for. So the Republican deficit machine continues to crank out red ink as far as the eye can see. Read the Washington Post story here.

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Mitt Does the Top Ten

Mitt Romney, in the middle of a media blitz, appeared on Letterman hawking his book “No Apology” and doing the top ten list. Letterman better get some better writers.

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PSA From Methuen Fire Chief Buote

A public service announcement from Methuen Fire Chief Steve Buote. If you need assistance in clearing a hydrant please call 978-983-8940.

Public Service Announcement

Methuen Fire Department Asks for Assistance in Clearing Snow from Fire Hydrants and Exits

Tuesday, January 25,2011

Methuen Fire Chief Steven Buote is asking for assistance from residents to ensure that fire hydrants on their streets are shoveled so that they can be accessed by firefighters if necessary. In the event of a fire emergency, the fire hydrants are the first line of defense. It is very important that they are accessible. Should a fire occur, precious seconds could be lost if the fire hydrant is not accessible.Although on-duty Fire Department personnel are out clearing hydrants daily, it is virtually impossible to clear all 1620 city hydrants in a timely fashion. With the recent back-to-back
storms that we’ve endured, the task is that much more challenging. Any assistance from the public is very much appreciated. If you have a fire hydrant in front of your home or business, please take the time to uncover it.
Residents are being asked to be mindful of the hydrants and not pile snow on or near a hydrant when clearing driveways and sidewalks. “Valuable time is saved when fire crews do not have to dig out a hydrant when responding to fire calls,” says Chief Buote. “When a fire emergency occurs, seconds do count; the time saved by fire crews being able to have immediate access to water to fight a fire may be the difference between life and death. ” Chief Buote is also recommending citizens clear snow and ice from around exit doors to ensure that an escape from a fire emergency is possible, as well as furnace vents to prevent malfunction. Building owners and landlords should check their buildings and clear snow as required.

Save-a-Life / Adopt-a-Hydrant

For more information, contact Methuen Fire Department 978-983-8940

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Health Care Questions

Monday morning, and only time for three observations on municipal health care reform. We have heard some statements on health care reform that on the surface make sense, but upon cursory review just fall apart. Lets look at them.

1) It was the municipalities who made these deals on health care, and they should not look to the state for “rules changes” that would help them get out from under their own mess.

You usually hear this from state officials talking about why this has not been done up to this point, and why the locals should be grateful for any movement on this question. Of course what they fail to point out is that it is the rules imposed by the state that insure that once a “bad deal” is reached it can never be reversed. They also start to shift uncomfortably when you ask about the state legislative action (outside of collective bargaining) that reversed the “bad deal” the state had with MBTA over 23 and out and health care for MBTA retirees, as well as the forced migration (outside of collective bargaining) of active MBTA employees to the GIC. The discussion tends to end when you ask about state legislative action that has placed municipal workers into the GIC without the benefit of collective bargaining (see Lawrence, City of. )

2) The issue of “sharing” the “savings” with municipal unions. This notion sounds equitable, and many mayors and managers, under current state rules, would contemplate exactly that. But I notice that the request is not to reinvest the savings into municipal job retention. It has been the case all along that the “savings” was going to go to municipal unions, as cities and towns look to stave off service cuts and layoffs. They would be helping to provide job retention for their most junior members. The notion of “sharing the savings” is code for changing the “municipal/employee split” through the back door, and has the potential to create additional job losses for union members, and service cuts for taxpayers. Yes, it sounds good but upon closer inspection it does not help either union members or taxpayers. Scott Lehigh had this one right in his last column.

3) Forced entry into the GIC is a “pay cut” for employees and on that basis should not be contemplated. This fact (a de facto pay cut) is undeniably true, but with the “commodity” of health care rising by double digits every year it is not logical to think that employees could be indemnified against ALL increases in health care costs. I can point to the health care negotiation in Methuen last year that led to major plan design changes, including the imposition of $1000-$2000 deductibles. The employees took on a plan that increased their costs in some areas substantially, but the taxpayers of Methuen saw an increase of $1.6 million in this account. It is just not reasonable to expect that all of the costs increases in health would be taxpayer borne. The final point on this is that if health care costs continue to rise as they have the argument will become moot, as all municipal resources, and all employee pay, would eventually go to cover health care costs. Without cost containment we are all out of business, management and employee alike. Management and employee have more in common here than you might think. Our collective energy should be spent fighting for real health care cost containment, instead of fighting each other.

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