Category Archives: Massachusetts

Slowly Opening an Industry

First off: Yes, it has been more than 6 months since my last post.  Yes, that is lame. I have had the writing itch for a few weeks, though, so maybe this post is a harbinger of things to come.  Or maybe it’s the only post between now and Town Meeting 2012.  You never know.

Second off: Some of you will say, “you interrupted your hiatus for this?” To which I reply: “I have to start somewhere.”

You have to be pretty deep into either Massachusetts arcana or booze before you learn that Massachusetts restricts businesses to holding only 3 liqour licenses.  Yes, really.  Only 3.  That’s why you don’t see beer for sale at your local supermarket – they’re all owned by one big corporate chain or the other, and only three of the stores in a given chain can carry booze.  Most people think it’s just illegal for supermarkets in Mass to sell booze.  It’s not illegal – it’s just rare.  (See – here’s a Shaw’s with beer!)

This law means that the liquor store industry in Massachusetts never has any consolidation – it’s all mom-and-pop stores.  They can’t buy each other without breaking the license limit.  It also means that innovation and price pressure never spreads very far, either.  Anyone who tries to rock the boat is rocking it in only three places, and the rest of the state continues on, unperturbed, and unafraid that it will spread.

The law also has created some pretty weird politics.  The mom-and-pop driven liquor lobby has fought very hard to keep the status quo.  In 2006, there was a ballot question to change the system, and check the rhetoric the lobby rolled with: “It’s about large, foreign-owned convenience stores, grocery stores, drug stores, and gas station chains  lining their pockets with profits. All while compromising  the safety of our families, friends, and community.”  If there ever was a “please think of the children” campaign, this was it.  They won.

2010 was a different question, but the same dynamic.  The state had increased taxes on booze.  That was depressing sales.  The lobby fought to rescind the change: “The new sales tax has hurt small business owners who sell beer, wine, and liquor, particularly near New Hampshire, which has no sales tax on alcohol. Business has declined substantially for many of those stores.”  Note how the fact that they are all small businesses becomes a part of the selling pitch.  They won again.

All this is background for the point of this post: Times are a’ changin’. Tonight I read a memo from the Alcholic Beverages Control Commission (ABCC) that notes a change in state law passed this year by the legislature.  (What?  You don’t get memos from the ABCC? It’s one of the weird but cool things that happens when you’re on the Board of Selectmen). Starting in 2012, a business can own 5 licenses, 7 in 2016, and 9 in 2020.  I hadn’t heard about this change, and I have to wonder if the mom-and-pop lobby heard about it to.  Frankly, I’m surprised the change made it into law. Changes like this are a beginning to an end for the firewall they’ve built against big-company competition.  Can you imagine Kappy’s with a 9-store chain ringing Boston? I’m sure that Kappy can, whoever he is.

The memo is quick to point out that this doesn’t change the number of licenses available in a given town.  Arguably, that’s the point that killed the change in 2006.  Every town in Mass still has a limited number of licenses, whether there is a supermarket in town or not.

Bottom line?  This probably isn’t a big deal, but it should increase competitiveness in the industry in the long run.  I wrote about it because if you’re a Mass wonk, or a booze wonk, you’ll find the change interesting.

Investment Advice from Lottery Winners

Commonwealth Magazine continues to be the most well-written, well-investigated publication covering Massachusetts.

An article in the Winter edition described how the state is making extra money when lottery winners take a smaller lump-sum payout rather than the per-year option.  Why would these winners leave money on the table?  “Our players were not doing very well on the open market.”

It’s almost as if she’s suggesting that people who play the lottery are bad at making decisions about money . . . .

Campaign Nuts and Bolts

As I’m sure you remember, I’m running for Selectman.

There’s not a lot of definitive guidance I’ve found about running a legal campaign for municipal campaign.  I’ve slogged my way through a fair amount of it the last few weeks, so I figured I’d write it up here for future interested candidates.

  1. The first is easiest – walk down to the Town Clerk’s office and pull papers.
  2. Create a committee.  There are a few campaigns where you don’t need a committee, but it looks to me like you really should do this.  Appoint yourself chairman, find a treasurer, and fill out the forms.  The CPF M 101 form is found here. Fill it out and turn it in to the Town Clerk.
  3. Then you need to get a EIN (tax ID number) from the IRS.  This took me forever to figure out, but finally found the magic quote: “A political organization must have its own employer identification number (EIN), even if it does not have any employees.”  Read it here, then request your EIN.  What makes it easier, by the way, is when you click the interview option that you’re doing this only for bank purposes – it’s a short application then.
  4. Open a bank account.  My regular bank, Cambridge Savings, won’t do campaign accounts anymore, so I went to Central Bank on Broadway.  I brought my treasurer, too.  We signed things that said we were neither terrorists nor online gamblers (what a waste of time and money. . .).  We deposited checks.  And we were in business.
  5. Next up is filing statements by January 20.  That’s the year-end statement for 2010.  To do that you need CPF M 102.  Again, file that one with the Town Clerk.

Hope that helps someone.

Why I’m Voting for Deval Patrick

I didn’t vote for Deval Patrick four years ago.  I kinda liked the guy, but I expected four more years of standard Beacon Hill special interest protection, waste, and corruption.  I have been delighted and surprised by the kind of governor that he’s turned out to be.

  • Do you own a car?  Have you noticed that your insurance rates are competitive? Have you noticed how they went down?  Thank Deval Patrick.  He did something that his predecessors, Democratic and Republican, did not.  He opened the insurance market.
  • Did you hear about the pension reform?  About how the qualification for pensions are much more strict, and no more sweetheart deals for part-time political hacks?  Deval Patrick.
  • For a long time there were 49 states that permitted the option of flagmen at construction sites rather than the more expensive full-time police officers.  Now there are 50.  Guess who, again.
  • He was a fierce supporter of gay marriage, and his influence is one of the reasons that the Constitutional Convention declined to put the question of gay marriage on the ballot.  He helped deliver the 75% of the legislature that kept gay marriage legal in Massachusetts.

I’ve lived in Massachusetts for almost 20 years now, and he has far exceeded his predecessors.  I want him to continue his work.

There are plenty of other reasons why you should vote for him, too.  Check out his list of accomplishments.  I’m sure you’ll find more reasons why he’s the right choice.

Please vote for Deval Patrick!

Why I’m Not Voting For Scott Brown

So on Tuesday Massachusetts will have its first open Senate election since 1984.  A 26 year wait, and this is the best crop of candidates we can come up with? Kinda depressing, if you ask me.

The candidate I’m most passionate about is Scott Brown – and why he should never be a US senator.

First and most is what he thinks about gays.  He thinks that gays shouldn’t be allowed to marry, and he thinks that the states should vote on the question.  Vote on it? I’ll let him vote on my marriage as soon as he lets me vote on his.

I’m equally inflamed by his preferred policy regarding high school gay support groups.  He thinks that students should get parental permission before attending the groups!  Whatever your position on gay marriage, just think about some poor scared teenager who doesn’t know what the heck is going on – and Scott Brown thinks that poor kid needs parental permission before getting help from a peer group.  Brown might as well give the kid a teen suicide how-to guide with the permission slip.

I know there are a lot of conservative voters out there who don’t care about the social issues but see Brown as a voice of fiscal sanity.  The thing is, Brown isn’t a fiscal conservative.  He’s a big-government, big-regulation, tax raiser.  He may even be more dangerous because he claims to be fiscally conservative.

If you’re thinking about voting for Brown because of his fiscal chops, please consider the following:

  • He urged people to vote against Q1 to end the income tax.
  • He doesn’t support this year’s question to roll the sales tax back from 6.25% to 3%
  • Repeatedly voted to override Romney’s (rare) spending vetoes
  • He lists the MA health care plan as a major accomplishment, but the average Massachusetts family’s health care insurance premium rose from $9,867 to $13,788. A 40% increase! 21% higher increase than the national average.
  • He joined the Democrats and passed legislation requiring Massachusetts to join the Regional Greenhouse Gas Initiative in a cap-and-trade pact among Northeastern states requiring power plants to reduce emissions or to buy credits from cleaner industries. “Reducing carbon dioxide emission in Massachusetts has long been a priority of mine,” Brown said in a news release in 2008. “Passing this legislation is an important step . . . towards improving our environment.”

I am deeply sympathetic to the statement that one-party rule isn’t healthy for Massachusetts.  But is this really the kind of Republican you want to encourage?

New Year, Same State House Criminals

I was watching state Senator Galluccio’s legal problems as 2009 drew to a close, and I cynically was thinking to myself about how my post would be different if he made it to 2010 before he resigned.  And he did make it to 2010, making half of my lines obsolete.  Multiple arrests, multiple innocent victims in the hospital, and he finally went to jail and resigned today.  He made the new year, the new decade, but I still think he’s a new year story.

The story by itself is just sad.  It’s the story of one man’s addiction and poor judgement and how he hurt himself, his family, and a collection of random people who had the misfortune of being on the road at the same time as his drunken self.  But when you put his story into a larger narrative, it becomes a statistic, the latest chapter in a book about Massachusetts legislators who couldn’t figure out how to follow the laws that they wrote and swore to uphold:

  • 2008: Senators Wilkerson and Marzilli resign under indictment, a full 5% of the senate down in one year.
  • 2009: Speaker DiMasi resigns and is indicted, the third consecutive house speaker to fall to a felony.
  • 2010, day 5: Senator Gallucio resigns with a letter written from jail.

Am I saying that all of our legislators are criminals?  Of course not.  But I can’t help but notice that they’re going to jail at a higher rate than the general population.

It’s an election year.  Let’s hope the voters remember it in November.  Otherwise, we risk being like my buddy Loopus: “How am I supposed to repeat my mistakes if I can’t remember what they are?”

chippy and loopus

chippy and loopus

Menino’s Email Problem Just Got A Lot Bigger

I’ve been lazily watching the Boston Globe’s pursuit of Menino aide Michael J. Kineavy’s emails.  It was obvious from the start that the guy was violating state law – he was deleting emails that the law required be retained.  But it looked like more smoke than fire.  Yeah, he should be keeping the emails, I thought, but there’s a long distance between deleting some emails and a cover-up.  The easiest explanation was that he was anal-retentive, not that he was a felon.  I’m a firm believer that one should  “never blame on malice what can be explained by incompetence.”  Even while the Globe was mentioning Kineavy’s relationship with accused felons Dianne Wilkerson and Chuck Turner, I thought they were just fishing for a good story line.

Today, the Globe got a pile of emails from the mayor’s office.  Kineavy had deleted emails, but the people he corresponded with hadn’t, and thus the emails came to light.  The Globe published a sample, and there’s a game-changer in that sample.  Kineavy sends an email saying “reminder. . .these are foiable.”  Foiable?  What’s foiable?  Foible?  Friable?  No – it’s FOIable.  As in “Freedom of Information Act”-able.  Suddenly Kineavy isn’t a naive, idiosyncratic geek.  Now, he’s someone with knowledge of the Freedom of Information Act who takes actions every day that violate state law about record retention.  This is no longer a “honest mistake” that Menino can just shrug off – it’s a deliberate attempt to hide the internal workings of government from the public.  This is no longer just smoke.  There’s fire.

There are three interesting question areas that I can think of:

  1. The FBI already issued subpoenas, and they presumably didn’t get Kineavy’s email.  Now that the Globe is digging harder, will the FBI?  Is there a link between Kineavy, Wilkerson, and Turner?  When will we see those emails?
  2. Will this issue mature quickly enough to affect Menino’s re-election chances?  That seems unlikely, given Boston’s history of re-electing candidates with ethical problems.  But one can hope.
  3. Will Attorney General Coakley, a Menino supporter, regret her decision to ignore the issue? I’ve wondered for a while how someone can run as a law enforcement candidate in Massachusetts with such a thin record on rooting out corruption. In this case the violation was brought to her door, and she turned it away.  Will that affect her chances to replace Kennedy?

Choosing Massachusett’s Next Senator

Ted Kennedy is dead, and that is all I have to say on the topic of Ted Kennedy.  But the questions of who will succeed him and how that person will be selected – now those are things I can write about.

The last time the Republicans won a Senate seat in Massachusetts was 1972: Edward Brooke, the first popularly elected black Senator.  When Paul Tsongas unseated him in 1978, the Democrats spent the next 25+ years with two “safe” seats from Massachusetts.  In the summer of 2004, they were horrified to realize that their success might mean failure: Sen. John Kerry was running away with the presidential race, and Mitt Romney, Republican, was governor.  When Kerry won the presidency, Romney would get to appoint an interim replacement.  Failure.

In 2004, as today, the Democrats held more than 80% of the seats in the legislature.  They were losing the game, but they had the power to re-write the rules, so they did.  They proposed a law that would strip Romney of his power to appoint a Senator.  The Republicans offered an amendment to permit an interim appointment.  The amendment was shot down, the bill was approved, Romney vetoed, the veto was overridden, and on July 30, 2004, the law was passed.  Read some of the quotes from the debate, and keep the window open for re-reading in a couple paragraphs.  They’re funny, in a sad kind of way.

Fast forward to today.  The national Democrats desperately want another (D) in Washington, but the state legislature is hogtied by its past actions.  They could change the law again and let Gov. Patrick appoint an interim Senator, but that would expose them as partisan hacks.  Or, they could do nothing and watch health care reform founder – the signature priority of their party’s new President.  It’s really a no-win situation for them; no matter what they look like unprincipled partisan whores.  I think this conclusion is an accurate one. It’s nice to see it in black and white without much room for spinning, dodging, or blaming.

There are a couple winners here:

  • Congratulations to the unnamed adviser to Gov. Patrick who convinced him to make a full-throated endorsement of interim appointments.  Patrick is one of the few statehouse figures that can distance himself from the 2004 power grab.  Everyone knows he wasn’t governor in 2004.  Either he gets to appoint the 60th vote in the health care cloture vote, or he gets to tell the legislature “I told you so.”  And with almost no political downside!
  • Potentially, congratulations to the Republicans.  They made the right arguments in 2004.  It’s impossible to prove whether that was principle or luck, but they get to bask in it now.  If they’re smart, they’ll stick to the same tune, but quietly at first.  If the leaders on Beacon Hill bring the issue to a vote, they should support the vote, and then congratulate the Dems on correcting their error in 2004.  If the Dems don’t bring it to a vote, they get to make hay for each day the seat goes empty.  Every vote, health care and all, they issue a press release bemoaning the short-sightedness of the leadership.  Of course, they can still screw this up -  if they oppose the vote, they also look like partisan whores.  Think red clothing instead of blue.

I’m not a fan of appointments.  Senators should be elected, not appointed.  The counter-argument is that for 100+ days, the state will only have one Senator, that we’re under-represented.  I just don’t think that matters in a 3-4 month timeframe.  I just don’t feel shortchanged.

So here’s what I’d do:  Make the time frame shorter, and hold the election in Oct/Nov rather than Dec/Jan.  Change the electoral calendar from 145-160 days to something like 105-120 days.  Hold the elections in November, at the same time as many cities, and save them some money.  Seat the new guy (or gal) in time for the New Year.  This blunts the “under-represented” argument.  And for the people who want a longer campaign – do you think anyone’s going to vote during the holiday season?  Not too likely.

It’s a change based on calendar, not party.

New Chapter in the DiMasi Story

Today former Massachusetts House Speaker Sal DiMasi was indicted for “conspiracy, honest services mail fraud, aiding and abetting, and honest services wire fraud” related to the awarding of a multi-million dollar contract to Cognos software. For most of us, this isn’t a shock.  The Globe has been writing investigative stories about this for a year and the story lines all lead to the speaker.  Still, it’s a milestone in that it moves the issue from a story to a courtroom.  Whether the story ends in a jail cell is up to a jury at this point.

This is not water under the bridge. The people who put DiMasi in power are all still in power themselves, and they need to be called to account.  DiMasi was re-elected to his speakership just five months ago, and resigned three weeks after that.  Each of us needs to call up our representative and ask them why they voted to make DiMasi their leader.  Read my post from January, when I asked what our legislators are made of: We all knew he was ethically compromised, but they elected him anyway.  Why?

I’m particularly unhappy with my legislator, Jay Kaufman.  Kaufman didn’t just vote for DiMasi.  He nominated him, complete with glowing speech.  He even went on a publicity tour to shore up DiMasi’s reputation.  Check this quote, given after one of DiMasi’s claims of innocence:

“This should put an end to the questions about the speaker’s integrity and about his seriousness of purpose, ” said Representative Jay Kaufman, Democrat of Lexington and chairman of the Joint Committee on Public Service. “But cynics and skeptics abound in this business, and all of us in it know that.”

End of questions about his integrity, Jay?  Really?  A grand jury still has some questions.  So do I.  And they’re questions about you.

Real or Onion: Mass Hires Spending Czar

My friends and I play a silly game online.  We send each other news headlines on instant messenger under the headline of “Real or Onion.”  To win, you have to fool your opponent into mis-classifying the headline.  “Congressman Wants to Talk with Rodriguez” – it’s real, on nytimes.com right now.  “Genetic  Experiment Goes Horribly Right” – that’s Onion.

So, here’s today’s winning contestant: “Governor Appoints Spending Czar.” You and everyone else guessed Onion, right?  Sorry, it’s real.

The writers at Blue Mass Group, generally defenders of the governor, are as baffled as I am.  You can read the back and forth yourself – from “what the heck” to “it’s good project management” to “don’t we already have that?” and back.

The state has what, 100,000 employees and spends more than $50 billion dollars a year.  There are countless methods the state already uses to spend money.  I do not understand why we’d need a new, special person to spend more money.  It begs the question – what do the other state employees do?

This obviously isn’t the end of the world.  In the grand scheme of thing, this guy isn’t going to break the bank.  But it strikes me as tone deaf on the governor’s part.  Thousands of people are being laid off in Massachusetts this year, and the correct response is to hire someone with skill in spending money?

Real, not Onion.