THE PIONEER BLOG

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, […]

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 […]

Duncan Rex – he means it on charters

In a press release entitled “States Open to Charters Start Fast in ‘Race to Top’: Education Secretary Seeking Autonomy with Real Accountability for School Innovators,” Arne Duncan made it very clear what he wants. As the press release states: U.S. Secretary of Education Arne Duncan told reporters during a conference call this afternoon that states must be open to charter schools. Too much is at stake for states financially and for students academically to restrict choice and innovation. And more to follow: “States that do not have public charter laws or put artificial caps on the growth of charter schools will jeopardize their applications under the Race to the Top Fund,” Secretary Duncan said. “To be clear, this administration is […]

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 […]

Chicago 45, Boston 0

After watching Beckett pitch masterful innings of shutout, no-hit ball against Detroit last night, I thought I would go back to my national series on other cities big education wins and the whiffs Menino has been making on charters. (A wink to my colleagues who know that I don’t even know who the running backs are for the Patriots; all I can say is that drinking was involved last night, so watching the game worked.) After the New York 20, Boston 0 post, which highlighted the fact that Mayor Bloomberg is starting 20 (count ’em) new charter schools this summer, let me chime in with Chicago’s big win over Boston — this time 45 to zippo. Azam Ahmed of the […]

St. Patrick’s, er, I mean Evacuation Day

Couple of items on the manufactured scandal over Evacuation and Bunker Hill Days. (For those of you who don’t know, the two days are official Suffolk County holidays celebrated, respectively, on March and June 17ths. Bunker Hill Day is pretty self-explanatory. Evacuation Day is a little more arcane – it celebrates the day in 1776 when the British army evacuated Boston. Both houses of the Legislature recently considered amendments to eliminate the holidays, in what I would guess is a vain attempt to throw beleaguered taxpayers a bone. Both amendments were narrowly defeated.) First, despite some rather overblown rhetoric emanating from the Legislature – cue Angelo Scaccia, whose defense of the holidays includes this tidbit (You can read the full […]

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 […]

We will be able to do this soon

My favorite Education Intelligence Agent Mike Antonucci had this news out of California: There are 3,000 retired educators receiving a six-figure state pension. And that’s out of a total of just over 5,000 for all types of state employees. Pretty outstanding performance for educators in the Golden Parachute State. Now the good news. Pioneer is building MassOpenBooks.org as well as a number of other government transparency sites for release this summer and fall. We’ll be able to pull out all kinds of gems like that back here in the Bay State for folks who are interested in understanding how the numbers stack up.