Entries by Steve Poftak

Even More Zoo Thoughts

(Disclaimer: I am in the tank for the Franklin Park Zoo. I’m a member, I go there often, I know Executive Director John Linehan (not well)) With that out of the way, I wanted to add a few items to the discussion: 1) Clause M of the Section 5 of Chapter 92b of the MA General Laws — I’m curious why this hasn’t come up sooner — it prevents the Zoo from charging admission to students on school trips. I understand the impulse but it seems unfair to expect the zoo to stand on its own (kind of) without letting them charge an important group of customers. 2) The Two-Headed Monster — The political dynamic created by the two locations […]

File Photo Fun at the Globe

Page A10 of today’s Globe has a background piece on Charlie Baker. Someone with a sense of humor picked out a photo of Baker in action during his tenure in the Executive Branch. It shows him seated at a table with…….current Patrick Administration Secretary of A&F Leslie Kirwan (back when she worked for Baker.)

Things That Irritate Me

– Lack of Legislative transparency — Our Legislature seems to work extra hard to make things hard to understand. In some cases, it is turning around 300 page bills in less than 24 hours, meaning no one can read it with any level of care. In other cases, it’s the lack of available data about pending legislation, as detailed by State House News in a article yesterday (sub. req’d). I’d note that the Connecticut Legislature has a much more sophisticated site that allows you to track bills and sign up for email updates when anything happens related to your interests. – No 311 in Boston — Boston has an iPhone app for constituent complaints but you still have to “bumble […]

Pioneer Beats BRA

Warning: Blatant Self-Promotion Ahead Yesterday’s paper had a sad tale of delay at the Boston Redevelopment Authority. A Deputy Director was hired five years ago to build a database of community benefits from development projects. She currently oversees three other staffers and the office has a yearly run rate of almost $300k in salary alone. She notes that ““[w]e’ve been developing an automated data system, but it’s still in draft form,” Colley said. “But you can’t do that overnight or in a year or two years or three years.” I note that Pioneer has three ‘automated data systems’ in the pipeline that will all be done in under two years. We released an online decision support tool that allowed municipal […]

Obstacles to Reform – Lowell Edition

The Lowell School Superintendent tried to put out an RFP to determine if using a private vendor for school food services would save money. Other cities have done this and it is also standard practice at most colleges and universities (even the state-funded ones). So, what did this exploration of potential savings earn her? An expletive laced series of threats from school committee member Regina Faticanti. Read the whole thing here. Fun fact — Regina Faticanti is a member of the School Committee’s Discipline subcommitee.

Layoff Confusion

The fluid nature of the budget process and the semantics around layoffs and hiring freezes has left me confused. The “final” BPS budget called for laying off 100+ teachers. Twenty-five teachers received “layoff notices” in May and a 105 provisional teachers were told they would not be invited to return. (I’m using quotes because it seems as if it is standard practice to give these notices to some number of school staff who are then rehired before the start of the school year.) Then, the BTU objected to the Teach for America program, believing it displaces “hundreds of good surplus” teachers. Yet, the BPS website has hundreds of open positions (not all teaching, to be sure) and BPS is actively […]

Parsing the Budget Vote

29 Democrats voted against the budget last week and I’d like to know why. (Tip of the pen to BlueMassGroup for the roll call document.) They are Arciero, Benson, Bowles, Callahan, Costello, Creedon, Dempsey, Driscoll, Fagan, Fallon, Fresolo, Garry, Golden, Greene, Gregoire, Kujawski, McMurtry, Miceli, Murphy (K.J.), Nangle, Puppolo, Rogers, Rush, Scaccia, Smith, Spiliotis, Stanley (T.M.), St. Fleur, and Torrisi. Part of that group is probably the fiscal conservatives — I’d note Arciero and Rogers as part of that group. There’s also a number of reps from border (or close to border) districts — Arciero, Bowles, Costello, Dempsey, Garry, Torrisi among them. And lastly, there’s a curious group who voted for the sales tax increase but against the budget — […]

Ralph White, Fiscal Conservative

[CORRECTION ADDED BELOW] I attended another meeting of the Special Commission on Pension Reform this week and was entertained, as always. – The representative from the Auditor’s office had his delicate sensitivities hurt by the chair’s statement that if anyone wanted to defend termination pensions, they should be prepared to do so at the meeting. – PERAC Commissioner Joe Connarton crudely mocked the Vice Chair of the Commission Peter Diamond (a professor at MIT with some experience in the topic). The irony of the situation was that Diamond was trying to make room in the discussion for a proposal from one of the state’s labor unions. – The Chair of the Commission Alicia Munnell repeatedly referred to Kyle Cheney, a […]

A Few Nuggets from the Conference Budget

The Conference Budget came out late last night and its being voted on today, all 263 pages of it, which each and every legislator has doubtless read. – Our unique-in-the-nation restrictions on contracting with the private sector remain largely intact. The Senate attempted to raise the cap on projects subject to the law to $2 million (see section 7D), while the Conference budget (in section 7) only raises it to $500k (from $200k). Given the hundreds of million in additional taxes in this budget, its hard to feel good about such a small rise. – Sections 129 and 130 generate extra money for the budget from two of the murkier sources of funds. 129 continues the current year’s practice of […]

Our New State Piggy Bank

The Mass Convention Center Authority appears to be the new piggy bank for state leaders. The Governor and Legislature put the touch on them for $65 million earlier this year to balance the FY09 budget. Next, the state and the city of Boston put the touch on the Convention Center Authority for $1 million for the upcoming Tall Ships event. The MCCA operated for years with a state budget subsidy (since eliminated) to fund its debt and a special series of dedicated tax and fee revenues. The intent was to tax area properties (that ostensibly benefited from the Center) and travelers (who might be using the center). The logic was that revenue from users would be ringfenced and used for […]

The BPPA and BPA

The Globe reports that the Boston Police Patrolmen’s Association has objected to the Police Commissioner’s directive to get rid of water coolers (which would save $50k). The BPPA notes that the coolers were originally instituted as a health measure. Given the recent findings that allegedly harmful chemical Bisphenol A (which is found in almost all water cooler bottles) leaches into the water after rather brief exposure, the BPPA may be better off listening to the Commissioner.

Consider a business with two customers

The first customer pays in about two months after getting bill, questions or rejects a quarter of the charges, and, depending on who you ask, pays substantially less than your other customer. The second customer pays within a month, questions about 5% or 6% of the charges, and pays a premium. That’s the dynamic in Massachusetts between the state Medicaid program (the first customer) and private payers (Blue Cross, Harvard, Tufts, Fallon). The contrast gives one pause as we debate the merits of ‘public plan’ competing against private plans under some form of national healthcare.

Unfunded Pension Liabilities Might Be Bigger Than You Think

I’m not done with the latest 2008 Investment Report on pension returns across the state. If you look through it, almost every communities’ 5 and 10 year returns (and for a few their lifetime returns) are below, way below, their expected rate of return on their pensions. Why does this matter? Well, the expected rate of return on pension assets is a key determinant of the unfunded liability. A high rate of return lowers the unfunded liability. Let’s pick a town at random and see what that means. How about…say…Swampscott? The 2007 Annual Report of the Swampscott pension fund reveals an assumed rate of return of 8%. Yet, in the past 5 years, they have had returns of 3.04% and, […]

2008 Was A Bad Year In The Markets

PERAC has released the 2008 results for the state and local pension funds. And the results are ugly — losses of close to 30% in many cases. It is only fair to note that PRIM (the state pension fund) lost 29.5% in 2008, while the 55 systems that invested on their own lost significantly less, with a median loss of 26.3%. Pioneer (and the Patrick Administration) have advocated for some time that smaller local pension funds should be incorporated into the state fund. See Pioneer’s white paper on local pension funds This position, using only 2008 data, would have cost money for those local funds. It is largely a function of asset allocation — PRIM has much greater exposure to […]

EOT and MBTA Do Good with BRT

Enough acronyms for you? BRT stands for Bus Rapid Transit. The state’s transportation planners (yes, you, Jim Aloisi!) are doing a very good thing with their latest plan to implement aspects of Bus Rapid Transit on the existing Route 28 Bus Route. They are marketing it as “28X” and they will be implementing (as feasible) dedicated lanes, stand-alone stations (as opposed to stops) and off-board ticketing. See details here, here, and here. This last item is of particular importance. On-board fare collection on buses has proven to be the Achilles Heel of automated fare collection (which this space has long supported). The continued use of paper tickets (versus CharlieCards) results in serious dwell time delays. Moving that delay off the […]

A Few Wrinkles in the DiMasi Indictment

Former House Speaker Sal DiMasi was indicted today. You can read the indictment itself here. I won’t belabor the obvious, but a few secondary points stuck out to me: – COGS at Cognos — Cognos agreed to pay one of the other indictees, Joe Lally, a 20% commission on sales. Is that standard in the industry — to pay a middleman 20% of the deal? Maybe it is standard, but it doesn’t make me feel great about our IT procurement process if that’s built into the price of a typical deal. – Conflict of Interest Laws — Part of the allegations involve DiMasi receiving a kickback for referrals that went to his law partner. I’m not sure how you fix […]

Countdown to Fiscal Sanity

It took one day for the House of Representatives to raise the sales tax 25 percent. It took just one day for the Senate to do the same. (The Governor has taken longer to put out his tax increase proposals, which range from a 19-cent gas tax increase, hundreds of millions of dollars in soda, candy and other targeted fees, as well as consideration of a graduated income tax.)

13 is not the right number

Reading about the investigation into misconduct at the MBTA Police Academy jogged my memory to a story earlier in the week about little-used police academies. Let’s look at the list of police academies: State Entities — MBTA, State Police State-Run for Localities — Randolph, Springfield, Reading, Boylston, Plymouth, New Bedford, and Foxborough Locally-Run — Boston, Lowell, Springfield, and Worcester Does this make any sense, particularly in this period when few new officers are being hired? Wouldn’t consolidation lower costs (for the state and municipalities) and improve the level of training? My favorite part of the story is the chief from Walpole stating that they don’t use the Randolph training center because the drive is too long in the mornings. I […]

My Earthfest Pet Peeve

Earthfest is this Saturday on the Esplanade. If past practice is any guide, DCR will once again allow folks to park along Storrow Drive, creating a massive traffic jam that can easily stretch all the way up the Leverett Connector onto I-93. So, the convenience of a few hundred folks wins out over the thousands who use that road (average daily (probably weekday) traffic volume of 66,000, as of 2006). In the past, DCR has claimed that the cars act as a safety barrier, but I’m skeptical of that explanation. My two questions: 1) Is deliberately congesting a road and putting tens of thousands into stop and go traffic really making a great “Earthfest” point? 2) If DCR was more […]

Raising the Symbolism Bar

Sure, our local politicians have their symbolism — who can forget Bill Weld diving into the Charles River or Deval Patrick’s ongoing struggle to move past the drapes and Cadillac brouhaha. But Canada’s Governor General has taken this to a whole new (pretty gross) level. In an effort to show solidarity with indigenous seal hunters (who are facing an EU ban), she helped gut a seal and ate a slice of its raw heart.

Interesting Wrinkles in New GIC Study

A new study, published by the Rappaport Institute and Collins Center, examines Springfield’s experience with the transition to GIC. The author, Bob Carey, provides a lot of interesting details. My observations: 1) High Out-of-Pocket — one of the typical objections to the GIC is their (deliberately) high out-of-pocket costs. It turns out that Springfield had moved to a new health insurance plan two years earlier that had some of the highest out-of-pocket costs I have seen. That made GIC a lot more palatable to municipal workers. 2) Shedding 5% of Insureds Helps to Cut Costs — By tightening criteria (e.g. no more coverage for the Symphony) and requiring documentation (thereby reducing fraud), Springfield reduced the number of subscribers by 5%. […]

Can He Say That?

Treasurer Tim Cahill went down to New Bedford and told them: the chances that Massachusetts will build [South Coast] commuter rail by 2016 are “bleak” and that “it is virtually going to be impossible” for the state to build it in the foreseeable future. Wow, that’s quite a mouthful, considering that our current Governor publicly threw his then-Secretary of Transportation under the bus for even suggesting that the South Coast rail line wouldn’t be paid for by revenues created by new jobs.

13 Questions for the Special Commission on Pension Reform

1) How many members of the commission really think pensions and other employment benefits need to be reformed? 2) Does the Governor’s office have specific ideas as to what they would like to see in the commission report and a game plan for achieving it? 3) When PERAC presents information but states that the data is not really comparable, why doesn’t anyone ask them to come back with comparable data? 4) For that matter, for a liability as large as the state’s public employee pension system and other benefits, why don’t the Administration and legislative leaders insist on better data collection? 5) Did the Commission really have a discussion of disability without even touching on the “Heart Law”, section 94 […]

The Laws of Economics Still Apply

Senator Bruce Tarr of Gloucester has filed an amendment to the budget that would allow the state to grant ‘racino licenses’ that would let racetracks operate slot parlors. We had this same discussion in 2006 and we’ll restate our position: giving licenses away to a fixed group of bidders at a fixed price is not the way to maximize the value to the state. It will result in a subsidy to racetrack owners (and perhaps their employees, perhaps). If we must allow gambling of this type, let’s maximize the value to the state by allowing an open auction of the licenses, not a fixed process. I’d note that the pending legislation practically concedes my point (see Section 7, subsection i, […]

The Buddy-Boy World of Massachusetts Public Pensions

Remember Tim Bassett? He’s the guy who retired, took a pension, then got special legislation written just for him that allowed him to go back onto the public payroll while retaining his pension. (And who’s wife just had her pension reduced because she tried to count years as a library trustee, except she didn’t attend the meetings.) Read the details here. He’s currently the Executive Director of the Essex County Regional Retirement Board, where the Globe estimates he is paid $123,000 annually (and don’t forget the $41,000 pension too). But that’s not enough. In his spare time, he lobbies for a variety of clients, among them are other retirement boards. The Salem Times reports today that his firm was paid […]

The Return of Governor Deval Patrick

The House of Representatives is, as we go to press, engaged in a political suicide mission — attempting to build a veto-proof majority to raise the sales tax by 25%. The Governor, smartly, has staked out a contrary position with some very specific insistence on reforms, backed by a threat to veto the sales tax increase: – On pensions, the Governor is insisting on reforms that apply to both new and current employees. This is a direct challenge to the House’s efforts thus far. – On transportation, “real reforms” and “true cost savings”, noting that based on the House and Senate efforts “[w]e are not there yet”. – On ethics, he notes the Senate’s inaction. This is smart politics and […]

Interesting Choices

I opened up my Globe this AM to be greeted by this Metro section headline: “Political Momentum Builds for a Sales Tax Increase” plus a picture of a rally and an article on the topic. Interesting choices, given that the rally only attracted 40 or so people and the content of the article was much more noncommital. Contrast that with the studied inattention to the larger “Tea Party” rallies of the week before — wire story on a rally elsewhere deep in the first section.

Treasurer Cahill's Spring Cleaning

Allegations were made regarding the connections between the Treasurer and some lobbyists at the end of last summer. The State Ethics Commission recently started investigating the allegations and certain folks on the left started jumping for joy (see here and here). They assumed this was the end of a potential challenge to their Governor. But Cahill was ‘cleared’ yesterday by the Ethics Commission (that’s the Herald headline, the actual wording was “this matter does not warrant further action at this time”). Regardless, Cahill has a clean bill of health on the matter should it come up later and he did it before the vast majority of voters are paying much attention. My guess is that this was his intent all […]

Almost a million dollars an hour

One of my pet issues has been moving payroll and other short-lived items off of the capital budget. It’s the state budgeting equivalent of taking out a mortgage to buy groceries — using 20 – 30 year bonds to pay for salaries, computers, cars, etc. It would require roughly $200 million in operating funds to do that completely. I’ve been told many times (before the current crisis) that this would be impossible. Governor Patrick, to his credit, proposed moving a mere $10 million of payroll off the capital budget in his first budget. Again, deemed impossible and ignored by the Legislature. Now, in the midst of our great fiscal crisis, the $52 million line item for the Quinn Bill got […]

Pick Your Favorite Earmark

The amendments to the House Ways & Means Budget are in!! Take a spin through and find your favorites. First, two requests in the name of transparency — give them names that are comprehensible (FY 2010 Amendment (TAP-LIFT).doc, anyone?) and don’t use the .docx format. I encourage loyal readers to add their favorites in the comments. I’ll start the bidding with $217,000 for new tennis courts at Wakefield High. Maybe it really is for the children…. More generally, I may be naive, but I’m always puzzled by the legality of naming specific, non-public providers for specific state services and the dollar amount they should receive. Look, I think Junior Achievement is probably doing a great job, but does putting a […]