THE PIONEER BLOG

Steve Poftak

How to Kill Off Manufacturing in Massachusetts

/0 Comments/in , , /by

Manufacturing in Massachusetts is dead, right? Rusted out and superseded by other, sexier industries. Wrong, its still the fourth largest employer in the state (behind healthcare, retail and education). And its disproportionately important in places like the South Coast and the Merrimack Valley. Plus manufacturing wages are above the state median wage. Check out this 2008 manufacturing chartbook put out by the state. What’s one of the key challenges facing the manufacturing industry? Its heavily reliant on energy as one of its major inputs (as opposed to other industries like financial services) and Massachusetts has one of the highest energy cost rates in the country. So, a new solar power mandate that may add up to $250m per year to […]

Jim Stergios

Race to the Top out of reach

/0 Comments/in , , , , , /by

Holy s^&*! Jamie Vaznis of the Boston Globe is reporting that Massachusetts is not among the winners of the first round of the Race to the Top competition. Kudos to Delaware and Tennessee for wining the first round. A lot of hard work (900 pages of it in the application, plus a legislative process, lots of print, lots of arguments, and a few fried political relationships) in Massachusetts did not get us there. Time for a deep breath. How is it that the top performer on the Nation’s Report Card did not make it? Vaznis reports on Ed Secretary Paul Reville’s view: “We are committed to reworking the application and filing it again,” said Reville, who added that he is […]

Jim Stergios

Auto insurance does not equal health insurance

/0 Comments/in , , /by

What’s wrong with a government mandate for health insurance? After all, government mandates auto insurance, right? In any basic conversation about health care — especially in MA where the idea of a mandate started — that is a basic line of argument from pro-mandate folks. My problems with that line of argument are three: 1. The federal government does not mandate auto insurance, and it should not mandate health insurance. (In fact, three states do not have auto insurance mandates.) The point is, states can choose to or not to. I have no problem with the health mandate in Massachusetts – if the system that is scaffolded on top of it works. States constitutionally have the power to mandate such […]

Jim Stergios

Are Large-Scale School Turnarounds A Myth?

/0 Comments/in , , , , , /by

Tough editorial from the WSJ today, calling the “doubling down” on turnaround plans for schools, rather than simply focusing on creating more charters, a big mistake. Like its predecessor, the Obama Administration is focusing its education policy on fixing failed schools. Education Secretary Arne Duncan calls for a “dramatic overhaul” of “dropout factories, where 50, 60, 70 percent of students” don’t graduate. The intentions are good, but a new study shows that school turnarounds have a dismal record that doesn’t warrant more reform effort. “Much of the rhetoric on turnarounds is pie in the sky—more wishful thinking than a realistic assessment of what school reform can actually accomplish,” writes Tom Loveless of the Brookings Institution. “It can be done but […]

Amy Lischko

The Devil is in the Details

/0 Comments/in , /by

Anyone involved in the Massachusetts reform is probably being asked the same questions that I am being asked.  How does the federal reform differ from MA’s reform?  How will it affect what we’ve already put in place?  Why is there so much opposition, hasn’t the MA reform worked reasonably well?   The answers are not simple.   Unfortunately, one must review the 2000+ page bill and another 100+ pages of reconciliation language in order to prepare a comprehensive review.  And, even then, you’re only partially there.  Many details, which could have a material impact on MA and the nation as a whole, will need to be further detailed through the regulatory process during what will be a very lengthy implementation phase.  So, […]

Steve Poftak

Goldhill's Atlantic Article on Healthcare

/0 Comments/in , , /by

Thanks to all those who participated in last night’s Hewitt Healthcare Lecture by Dr. Jeffrey Flier, Dean of the Harvard Medical School. As promised, here’s a link to The Atlantic article by David Goldhill that Dr. Flier referenced in his lecture. We encourage you to give it a read and then share your thoughts with us in the comments.

Steve Poftak

What Am I Missing?

/0 Comments/in , , /by

The Cerberus-Caritas tie-up is a mystery to me. You’ve got a deep pocketed investor with no discernible links to this industry, and a reputation for being tough-minded financial engineers, not operators. And the deal announcement suggests a interest in follow-on investments nationally in the sector. Meanwhile, you’ve got this weekend’s reforms on the federal level, a state government that seems to want to play an even larger role in this market, and Caritas’ portfolio of hospitals, most of whom play vital roles in their communities (that won’t react well to much cost-cutting). Cerberus must have something in mind. What is it? PS — Nice work by whomever is doing Caritas’ PR — the banner ads on the Globe article about […]

Jim Stergios

Hit the accelerator!

/0 Comments/in , , /by

That’s my takeaway from the 2009 NAEP reading results. Here are just a few takeaways from the racial/ethnic subgroup data from 1992 to 2009 for the 4th grade and 1998 to 2009 for the 8th grade: Black students – 4th grade: The average scaled score goes from 204 to 216. At or above Basic goes from 47 to 62 percent. At or above Proficient from 10 to 23 percent. Advanced from 1 to 3 percent. – 8th grade: The average scaled score goes from 248 to 251. At or above Basic goes from 55 to 64 percent. At or above Proficient from 13 to 17 percent. Advanced drops from 2 to 1 percent. Hispanic students – 4th grade: The average […]

Jim Stergios

MA tops nation in reading for 3rd time in a row

/0 Comments/in , , /by

From the Department of Education’s press release: “Massachusetts 4th and 8th Graders Rank First in Reading on 2009 NAEP Exam. Results Mark Third Time in a Row MA Students Have Outscored the Nation.” Great news! According to results of the 2009 NAEP exam, the state’s 4th graders scored an average of 234 on the reading assessment, well above the national average of 220 and first in the nation. At grade 8, Massachusetts students achieved the highest average of 274, which exceeded the national average of 262 and tied for first with five other high performing states: New Jersey (273); Connecticut and Vermont (272); and New Hampshire and Pennsylvania (271). Some cause for concern is the flattening out of performance. Commissioner […]

Steve Poftak

Pitching 38

/2 Comments/in , , /by

Curt Schilling (formerly of the Red Sox, ahem) is now seeking a deal for his video game company, reportedly talking with Rhode Island to see what tax incentives might be provided. His inspiration? The film tax credits which he saw in action in his home town. Now, Curt’s got every right to get the best deal for his company but he might want to consider a few facts: 1) RI’s corporate tax rate is 9% while Massachusetts was 9.5% and is supposed to drop to 8.75% this year, then to 8% over the next few years, 2) RI’s personal income tax rate is progressive and rises pretty fast — it gets to 7% quickly and tops out at 9.9%. Not […]

Jim Stergios

So whaddaya think about Sunday's vote?

/0 Comments/in , , /by

Many thoughts but here are three key ones: 1) What a wasted opportunity to get it right. Little learning from existing experiments like MA’s was drawn upon, and there are no real market mechanisms used to contain costs. Top-down cost containment will just lead to cost-shifting. 2) What a wasted opportunity by Republicans in the early 2000s. Why didn’t they do more than pilot programs to address skyrocketing premiums? 3) What a mess this will be going forward. It is going to be super-expensive for the taxpayer, and it will again shift a lot of the burden to people with private insurance. Two analyses, at antipodes of the ideological spectrum, are worth highlighting. First is Kimberley A. Strassel’s opinion piece […]

Jim Stergios

Little settlement with words

/0 Comments/in , /by

Words have history, and that is really why they have power. All it takes is one breath to dredge up all sorts of memories and associations. It’s eye-popping when you read a great observer (plug in your favorite literary reference), but in the realm of politics that history is mainly playing off emotions and seeking to motivate one to action or inaction. Education is probably the place where the jargon and sharp-edged words are most prominent; e.g., “drill and kill,” “the field” (guess what you are excluded!), “choice,” and so on. This morning reading through the news, and I was curious about the statement by Israeli Prime Minister Benjamin Netanyahu that East Jerusalem was not a “colony.” It struck me […]

Jim Stergios

Prop 2 1/2 Jersey style

/0 Comments/in , /by

David Halbfinger of the New York Times reports that Governor Christie is proposing “deep cuts” in state spending, which will amount to something like 5 percent of the state budget. Interestingly, Christie is taking a page out of Massachusetts’ lore and seeking to replicate Prop 2 1/2: Mr. Christie’s idea for a 2.5 percent cap on increases in property taxes, modeled on Proposition 2 ½ in Massachusetts, would allow no exceptions except by local referendum and would apply to towns, school boards and counties. He also is calling for new handcuffs on towns and school districts as they bargain with unions, to prohibit towns from awarding contracts with pay increases, including benefits, of more than 2.5 percent.

Jim Stergios

NPT: Rumblings in the non-profit underground?

/0 Comments/in , /by

The Non-Profit Times sends almost daily emails with surveys and tips on management. I never really open them (catchy eblast titles is something they need a little work at…). Today’s stood out: Survey: No Cash On Hand At 12% of Charities Wow. That’s an eye-catcher. Admittedly, I am not going to dig into the methodology today, as we have a lot on the plate, but, if accurate, things are even more volatile in the non-profit world than I had thought. America’s nonprofits expect that 2010 will be financially more difficult or as difficult as 2009, according to a survey, the results of which were released by Nonprofit Finance Fund (NFF). And, some of them don’t have enough cash on hand […]

Jim Stergios

Calling all reporters!

/0 Comments/in , , /by

My last blog noted that states will now have to adopt the common core standards or give up much of a chance at the RttT funds. And, yes, I did call Arne Duncan a schoolmarm. 😉 So, one wonders, what exactly did DESE represent to their USED interrogators [;-)] earlier this week? Isn’t that a matter of public record? Will some reporter ask that question? If they don’t, we will.