THE PIONEER BLOG

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.)

A bit of soul searching

Matt Murphy of the Lowell Sun writes today on an issue that Pioneer has been banging the drum on for some time: the growth in the state’s payroll notwithstanding the fact that we are in a recession. (See our Countdown to Fiscal Sanity, item #9, for more.) Murphy notes that While many private-sector companies continue to shed jobs at alarming rates, state employees have been largely spared the anxiety of getting a pink slip. The state payroll, in fact, has grown by about 2,200 employees since the recession came to Massachusetts last fall, leaving roughly 98,278 workers dependent on the state for a paycheck, according to payroll records that include the University of Massachusetts and other public colleges. Meanwhile, Fall […]

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.

Charters alive in Rhodey!

The mayor of my hometown, Cumberland (RI), Dan McKee has gained recognition among charter folks nationwide for a new concept, Rhode Island Mayoral Academies, which he is proposing along with a number of Ocean State mayors. These would be in essence regional charter schools driven by mayors tired of the continued failure within the school districts. It is great to see local leaders in RI standing up, much like Mayors Fenty (DC), Bloomberg (NY), and many others across the nation. (Editor’s note: Boston may get there, it seems, this election.) Last week, the Rhode Island House Finance Committee turned its nose at the new schools, cutting $1.5 million in proposed aid for two new charter schools. Yesterday, after U.S Education […]

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 […]

Boom times at the NEA

From our man in Education Havana, Mike Antonucci, sleuth extraordinaire, gives us some numbers on why the recession cannot be said to have hit everybody equally. Proposed Budget Shows No Recession at NEA Headquarters. The economy may be staggering along, the labor movement may be facing financial problems, but the National Education Association continues to let the good times roll. The proposed 2009-10 NEA budget forecasts $355.8 million in revenue, an increase of $10 million over this year. The headlines warn us of massive teacher layoffs across the nation, but NEA modified its projection of new teacher members upward. Originally expecting an increase of 5,000 new teacher members for 2009-10, the latest proposed budget now predicts 7,000 new teacher members. […]

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, […]