Sudden Stop

Baptists, bootleggers and bottles

Governor Patrick's fiscal 2010 budget announces that extending the Bottle Bill to non-carbonated beverages will promote recycling.  

Classic Baptists and bootleggers.*  Remember to begin with, all the money from deposits goes to the State, and if you, the consumer, don't return the bottle, the state keeps the change.  If the State really wanted more recycling, it would raise the deposit to, say a dime rather than the current nickle.  The trouble is, that would actually cause more people to recycle, and that would mean fewer coins for the state to keep.  The solution therefore wasn't for the state to raise the deposit, but rather for the state to expand the requirement to other containers.  The Baptists (aka environmentalists) swoon; the bootleggers (aka the state) profit.

* The story begins with Baptists in a rural community demanding the local government ban the sale of alcohol on Sundays. "Alcohol", they might say, "is a vile drink and efforts should be curbed to restrict its spread through society, especially on the Lord's day." Under this noble tone, the government complies and enacts a ban.

But the demand for alcohol doesn't disappear when the supply does. People still want to drink on Sundays and so the bootleggers step up and illegally sell alcohol. And because the supply is restricted because far fewer people are selling liquor, one day a week the bootlegger gains monopoly power and the lucrative market that goes with it.

Tax Policy Center Report Card on Stimulus Program

Here

It's a gift, not a bribe

Christmas, check.  Train set for Johnny, Barb wants a cell phone, and $12,000 for my State Senator.

I'd like a Democrat executioner

Because he'd be much more sympathetic.  Odd logic, but to each his own.

As expected, Patrick said yesterday that his midyear budget cuts won't touch the nearly $4 billion that goes to communities for public schools. The last time the state endured local aid cuts in the middle of a fiscal year was in 2003, when Romney cut $114 million. He followed that up with more cuts in the next budget. Together, the reductions in local aid resulted in about 14,500 teachers, police officers, librarians, and others losing their jobs.

But while Romney was lambasted by local officials, Patrick so far has generally avoided major political fallout.

"He's making the same cuts Romney did, but it's how he's done it," said Everett Mayor Carlo DeMaria, who said this year's local aid cuts will total $860,000 for his city. "He's much more sympathetic about the decisions. Romney came in like it was a business decision."

"This governor doesn't give slide shows," Menino said in his remarks to municipal officials yesterday.

As we wrote weeks ago, Romney, in response to declining revenues, raise taxes, raised fees, cut State government and cut local aid.  Patrick has raised taxes more, and cut local aid more.  It's a matter of time before fees are increased--Patrick in search of his inner-Romney.

However, according to Mayor DeMaria, it's how he done it that makes it better: without slide shows.  It makes all the difference.  Again, "But while Romney was lambasted by local officials, Patrick so far has generally avoided major political fallout."  Key: "so far". Take a look at the smiling faces when Governor Patrick made the announcement; they seem pleased.

Scolder in chief

Still, there was palpable tension in the Hynes Convention Center as Patrick announced his budget-cutting moves. At one point, the governor had a frosty exchange with Worcester Mayor Konstantina B. Lukes, after she appeared to smirk while the governor answered her question.

"Before you make a face, mayor, let me finish my answer, all right?" Patrick snapped.
Once he finished his response, he glanced over at her again and said, "Is that clear? OK. Now you can make your face."  boston.com

Simply bizarre.  It's so obvious, I shouldn't even bother to write that, regardless if the Mayor sneered, laughed, gave the Governor a raspberry or mooned him, the professional, polite and appropriate response in turn would be to ignore her and continue with business.

Bank Nationalization FAQ

What Bank Nationalization Means to You.  WSJ.

Palmer Gambling Redux

Legislation to allow casino gambling in the state, including one site in Hampden County, has been proposed by a state Senate leader and other legislators.

Whether the bill, which has the backing of two Western Massachusetts senators, has any chance of success this year is uncertain.

It is being backed by the AFL-CIO labor union and the Mohegan Sun which is eyeing a casino in Palmer.  ... LINK

It's a sensible idea.  Palmer has endorsed the idea before; the area is undeveloped with easy and uncongested off and on ramps to the Mass Pike, and Palmer is in serious need of commercial activity

The new paradigm

Whenever you're stuck for a reason to advance your cause, and it's contradictory to common sense, go with "it's a new paradigm."  Green energy for example.  The paybacks are long, even with government subsidies, which by the way, aren't free (eye for obvious).

You can't look at paybacks, some say, "because of global warming and peak oil there's a new paradigm".  And new paradigms don't come cheap.

West Boylston’s Municipal Light Commission is tapping into renewable energy sources to meet consumer demand for electricity by installing a $2.4 million, 359 kilowatt solar generation project in the spring, according to H. Bradford White, manager of the town’s electric utility.

“The Light Commission’s philosophy is to do whatever we can to lessen our dependency on foreign oil, reduce our carbon footprint as much as possible and explore green energy,” White said.

The proposed solar array will produce 440,000 kilowatt hours a year and be located at the corner of Shrewsbury Street and Paul X. Tivnan Road, which is town-owned land. The light commission must get approval from the Zoning Board of Appeals. Once that is granted and the snow melts, the system should be installed in the early spring, White said.

“The cost of solar power is coming down. It’s certainly not the cheapest system, but over the long run there is a 20-year payback…” he said.

$2.4 million for a plant to generate 440,000 kWh per year.  You or I, buying at retail will pay, including delivery charges $77,000 for 440,000.  That's retail; that's with delivery.  Even at that top rate the payback on the project is over 30 years.  The company boasts a 20 year payback, but even that's lousy.

Picture a salesman going into a private business and boasting of a product which yields a 20 year payback.  How quickly would he be shown the door.  Yet, in the world of new paradigms, solar with a 20 to 30 year payback, is a winner.

View of the office

How to save $250 million without layouts or program cuts

Do this.

The state has asked workers in its largest labor union to accept a 5 percent across-the-board pay cut, a shorter work week and unpaid holidays to help balance the state's troubled budget, according to a document obtained by The Plain Dealer.

The list of cuts and changes Gov. Ted Strickland's administration has asked the workers to accept, which also includes mandatory furloughs and paying more for their health insurance, would amount to $250 million in concessions, according to a members-only e-mail from Ohio Civil Service Employees Association president Eddie L. Parks.

In the e-mail updating members on bargaining, dated Thursday, Parks said that the union expected to have to fight to keep its wages and health care agreements intact. But the union's negotiating team nonetheless was "aghast at the scope of the concessions the state proposed."