THE PIONEER BLOG

Steve Poftak

The Sage of Omaha on Executive Compensation

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Today’s Globe contains news of potential inquiries by Congressman Barney Frank’s Financial Services Committee looking at the ‘perverse incentives’ (love that term!!) in executive compensation and how that may have contributed to some of the inordinate risks afflicting many financial firms. At the end of the day, this space believes that the oversight of executive compensation lays with an engaged board of directors that properly aligns the interests of executives and shareholders. Warren Buffett has written early and often on this topic. This quote from a 1985 letter to shareholders (which should be required reading for everyone interested in the markets) brings up the key issues behind that misalignment: Ironically, the rhetoric about options frequently describes them as desirable because […]

Liam Day

From James Joyce to Grand Theft Auto

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I’ve been reading David Boaz lately, so I’m in a bit of a Libertarian mood to begin with, but, even if I weren’t, I would still have raised an eyebrow at Mayor Menino’s latest crusade. Not satisfied with a ban on trans fat, he is now going after violent video games. Now, I’m not a gamer, nor am I a big junk food fan, but I have to stand up for the rights of the people out there who do like trans fats and Grand Theft Auto. There is an argument to be made for a local, state or federal ban on trans fat. In a society in which most of us don’t buy our own health insurance, I suppose […]

Steve Poftak

This is not a Freudian slip

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The charming head of the Massachusetts AFL-CIO tells you exactly what he thinks about checks and balances on political power in today’s Globe: I’ll be profoundly disappointed if we win the debate [on casinos] on the merits, but still lose the point. I don’t want to see that happen in my State House, in my Democratically controlled State House no less. [Emphasis added] It is not the first time I’ve heard this sentiment from Mr. Haynes, but it is the first time I’ve seen it on the record.

Amy Dain

Forecast on foreclosures dismal. What to do?

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More than 7,500 properties were foreclosed in MA in 2007. The numbers are projected to be much higher this year. The vacant, lender-owned properties tend to be concentrated in certain neighborhoods, often in our older industrial cities. There are no easy solutions, but CHAPA has taken a first step at addressing the crisis with the release of a briefing paper on the topic. Take a look at the paper here. Got ideas about what can be done? Or thoughts on CHAPA’s paper? Post them here.

Liam Day

Go to D.C, young man, for that is where fortunes are made.

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Telling article on Forbes.com I just read this weekend listing the best places in the country to get ahead. The list was compiled based on job and income data. Coincidently enough, 6 of the 7 best counties to live to get ahead today are located in Maryland and Virginia. They include Stafford County, Va., Calvert County, Md., Loudoun County, Va., Charles County, Md., Prince William County, Va., and Anne Arundel County, Md. Is it possible, just remotely possible, that the reason for this geographic concentration of jobs and income is in any way related to the explosive growth of the federal government the last 8 years? And, if related, what does it bode for our country that more and more […]

Jim Stergios

Ouch from the Globe on state performance

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The editorial page of today’s Globe takes up a favorite theme of Pioneer: the use of data to drive performance through measurement and benchmarking. On April 25th, you can see the cities working on this, at Pioneer’s Center for Economic Opportunity conference in Worcester. It promises to be a great event. Register quickly as the RSVPs are coming in early and strong. The Globe editorial highlights the Rappaport Institute’s good work on this subject, but it is also a rather ironic and tough statement on the Governor’s focus on “the rhetoric of hope” rather than the nuts and bolts of ensuring high quality services. Entitled “Together we can manage better,” it opens with what is possible and what other states […]

Liam Day

Supply vs. Demand – and Demand is winning

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The Boston Zoning Commission voted yesterday to approve the City Council’s measure to cap students renting off-campus apartments at 4 per unit, without regard to its size. (Read the Globe’s front page article here.) Now I’m sympathetic to what motivated this measure in the first place: I’m pretty sure if my wife and I lived in Allston or Mission Hill, next door to the noise and the revelry, we’d be annoyed as all get up too. Nevertheless, what this measure will most likely not do is bring rental rates in the neighborhoods around the city’s colleges and universities back down to what proponents might call an affordable level. As some of the displaced students would (hopefully, if they paid attention […]

Steve Poftak

Worse Than I Thought

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Turns out I was wrong about the overall indebtedness of the Commonwealth, including quasi-public authorities. I thought it was $36 billion. Its actually $50 billion, per ANF. Including contingent liabilities, that’s over $14,500 per person in the Commonwealth.

Liam Day

Blue Cross Blue Shield – The Public Trough?

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I hate to go on a rant here, but $70,000 to be on the board of directors? (Read the Boston Herald story here.) That’s a pretty good gig. How does one get a gig like that? Well, if you’re Bob Haynes, I suppose, you flex your political muscle as head of the state’s AFL-CIO. Though, you would think it’d bring up conflict of interest issues, as BCBS is hard-wired into a good number of the local public employee union contracts. Actually, if you think about it, at $70,000, Bob might be underpaid. Ensuring that BCBS doesn’t have to compete on cost for municipal business has to be worth a lot more than that. Looking around the BCBS director table, we […]

Jim Stergios

Michelle Rhee takes out the knife

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From the Washingtonian.com piece on Michelle Rhee, the chancellor of DC schools, there is a quote that stood out from the rest of the piece as the primary dilemma that Rhee and Mayor Fenty are trying to stare down: “She’s got all the right ideas, a wonderful attitude, and she’s open,” says Mary Levy, an authority on school governance with the Washington Lawyers’ Committee for Civil Rights and Urban Affairs. “I worry about her being undercut or overwhelmed.” It seems that Ms. Levy need not worry. Fenty and Rhee first sought authority from the D.C. Council to reclassify over half of the 700 non-union positions in the Central District Office, making them “at-will”–i.e., now she could fire them. And that […]

Amy Dain

CitiStat: Don’t make a sham of it

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Pioneer is on the cheering squad, promoting CitiStat programs. We are featuring CitiStat in our April 25 conference on revitalizing Middle Cities (rsvp to jfenton@pioneerinst.wpengine.com.) Pioneered by cities such as Baltimore and Somerville, CitiStat is a way for city leadership to use data to improve delivery of traditional city services. Dedicating its spring lineup of events to stat programs, the Rappaport Institute just released an excellent brief on the pitfalls setting up CitiStat. Professor Bob Behn has observed stat programs all across the country and came up with 7 ways that these efforts often get it wrong, turning opportunities to produce results into “symbolic shams.” Come to our conference to learn more!

Jim Stergios

NYC charter to pay teachers more than lawyers

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But the unions don’t like this idea. A proposed New York City charter school is to pay teachers $125,000. There is even thought of adding incentive pay for high performance. The idea is that the higher salaries will be made possible by becoming more efficient and by reducing the number of support staff. According to the Friday New York Times, the head of NYC’s principals’ union, Ernest A. Logan, called the notion of paying the principal less than the teachers “the craziest thing I’ve ever heard.” “It’s nice to have a first violinist, a first tuba, but you’ve got to have someone who brings them all together,” Mr. Logan said. “If you cheapen the role of the school leader, you’re […]

Steve Poftak

The Choice to Go Negative

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By Obama? No, Silly. The New England Patriots. The Boston Globe dedicates a full page of its sports section on Monday to a relentless unpacking of the short and undistinguished life of former Patriots videotape intern/employee Matt Walsh, who may shortly testify about the team’s videotaping activities. Former sportswriter and current enterprise reporter Bob Hohler discovers that Mr. Walsh frequently puffed up his various internships on his resume, was a real jerk in college, and has bounced around as an assistant golf pro (or is that assistant to the golf pro?) for the past few years. I love the Pats (even if Coach Belichick’s “it takes two to argue” defense of Spygate got to be a bit old). But I […]

Jim Stergios

Education leadership but not here

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Diane Ravitch, Sol Stern and others have criticized Mayor Bloomberg and Chancellor Joel Klein for putting all their eggs into the “choice” basket. Frankly, there is merit to some of what they say – choice alone is not going to get it done. You need standards and accountability, including great curriculum frameworks and teacher testing, AND you need choice and the development of new supply (charters, pilots, METCO, university partnership schools, voc-tech schools and more). But the fact of the matter is, the unions will fight standards and accountability every step of the way. The proof of that is in the fact that where union strength is most entrenched in Massachusetts – in the urban centers – standards and accountability […]

Amy Dain

Are local zoning, wetlands regulations “market oriented”?

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At Thursday’s Pioneer forum on wetlands policy, one participant commented that tough local regulation of housing development IS market-oriented policy. The regulations raise the price of construction in the hinterlands and near wetlands, she argued, thus steering development to places it makes more sense – where there is infrastructure to support it. On one level, yes, the local regulations do raise the cost of construction, and in that way they can work as a market-tool to slow construction, where that is the goal. Problems on a few more levels, though. First, the local regulations are not, as she might hope, steering development towards downtowns and transportation corridors. Instead, localities too often use regulations to slow development both in ‘smart growth’ […]