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Where Fiscal Discipline Is a Pipe Dream

In a Boston Globe op-ed, Lovett C. Peters, the founding chairman of the Pioneer Institute (what the Boston Globe would refer to as "a conservative think tank"), offers up a clear-eyed assessment of the Commonwealth's fiscal health and what measures are necessary to restore it. In many other locations of this country his suggestions would be regarded seriously. Here in Massachusetts, however, Peters' recommendations will receive as much consideration as any other idea coming out of a "conservative think tank:" None. I herein examine his observations and offer my own more jaded view of the status quo. First, Peters sets the table nicely by ticking off the baseline facts to support the imposition of fiscal discipline:
  • Anticipated FY '08 budget deficit of $1.3 billion.
  • Proposed $2 billion to "repair crumbling state colleges."
  • Proposed $1 billion for biotech industry.
  • Proposed $1.4 billion for commuter rail to New Bedford.
  • Uncosted universal early childhood education, longer school day and free community college for all Commonwealth residents (including illegals).

Getting vertigo yet?

(Can we just save some time and cross off the biotech and commuter rail numbers? Please? The hottest venture capital sector in the country hardly needs taxpayer support; and the MBTA is in no shape to be larding another $21 million to its annual operating deficit.)

Then, in what has to be one of the singularly greatest uses of irony ever to appear on the Boston Globe editorial page (which is saying a lot), Peters quotes Sal DiMasi saying to a business group, "I like to say, 'What about efficiencies and cutting costs?'"

That Sal, what a card. Funny, the only thing I've known him to say is "you're away." So let's just kill that baby in its crib right now. Sal DiMasi's appetite for "cutting costs" could be measured at 4:00 p.m. on Thanksgiving Day.

But let's humor ourselves a bit longer while we examine Mr. Peters's eminently sensible recommendations:

1. Get public employee benefits under control.

Excellent idea. Elsewhere the idea that a person can collect his pension before his retirement age is a quaint notion. Here it is firmly embedded in state collective bargaining agreements. Ridiculous. Elsewhere, public employees pay at least 25% of their health insurance costs. Here it's 15% (up from 10%!).

This idea has about as much chance of being taken seriously as Dennis Kucinich's UFO claims. In fact, I'll bet there are some people who read Mr. Peters'editorial this morning and asked themselves, "what planet is he from?"

The bottom line is inescapable and irremediable: the Commonwealth of Massachusetts is a wholly owned subsidiary of the public employee unions. Without a hostile takeover, they'll be telling Sal DiMasi what to do before he gets to the second tee.

2. Eliminate mandatory union contracts in public construction.

See above. Peters tells us that only 20% of Massachusetts construction workers choose to join a union, even though 100% of public construction projects are done at the (euphemistically named) prevailing wage. The cost is about $120 million for every $1 billion spent. Wow, that adds up fast! Where are the cities and towns who have to pay this tab? They're sitting over there in the corner with their hands in their pockets, waiting for more local aid. Where is Sal DiMasi? Putting out on two.

3. Eliminate Police traffic details.

Question: If such a vast majority of citizens in this state understand what a ridiculous waste of money this is, why does eliminating it never get past first base? See above. When you get that telephone call from the Police Benevolent Association, tell them you already gave, and gave, and gave.

Riddle: What do Mitt Romney and Deval Patrick have in common? They both publicly proposed eliminating police details and then ran and hid.

4. Privatize the Mass Pike. This idea is far too cutting edge for us. Heck, Chicago only got $1.8 billion for its toll highway, that's not even real money. Besides, there isn't any way that Sal is going to give away all those "jobs." And given the insidious Pacheco Law (imagine how fatuous and vain you have to be to want your name attached to a law that squanders your constituents' money), a law that privatizes the second biggest public trough in the state would be tied up in court until the Segway becomes an accepted mode of urban transportation in Boston.

5. Privatize the Lottery. The third biggest public trough? Next thing, you're going to want to take over the MBTA! Another Pacheco nightmare, too.

I admire and respect Mr. Lovett C. Peters, and I am thankful that the Pioneer Institute does the work that it does. That it has so few adherents in positions of power is lamentable -- in fact downright disgusting. But this is Massachusetts, after all, which stands before the nation as the paradigm of entrenched one-party rule.

7 comments
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11/24/07 @ 10:02 pm
capemom [Member] writes:
Peter, right on 100%.

All states have government cheese. A lot of times it's a measly slice of Velveeeta. But here in Mass. it's a 5 ton slab of triple-cream camembert. And guess what--a lot of Mass. voters eat it 3 times a day. If you, as a politician, try to take it away, they won't vote for you.

At some point in the past, Mass. descended the slippery slope of thinking the purpose of government is to provide cushy jobs with bennies.

Your 5 proposals, esp. #1 -3, are just plain common sense. They come from a conservative think tank? It sounds like just a think tank, as in, they are thinking.

We the citizens have allowed the government to grow so large that a significant percentage of the voters in every politician's constituency benefit from taxpayer-funded jobs and perks--be they teachers, cops, firemen, government and municipal employees, MBTA, you name it. So the pols can't vote against any of it or they won't be re-elected.
11/25/07 @ 10:05 am
Democrant [Member] writes:
Before one drives the stake through the heart of government employees, one needs to look at more than the benefit package to be fair. What is the overall compensation package people get? Tilt the wheel too much and you lose many good people. You know, it's like people feel about Congress... people say they can't stand Congress, but keep voting for their incumbent. When you put a face on it, rather than "those people", amazing how attitudes change.

Yes there are efficiencies that need to be enacted, but no one in this state has the courage to say if you want government to do the things you want it to do, you need to pay for it.
11/25/07 @ 11:03 am
Buzz [Member] writes:
Peter,

It's not all roses for state workers who retire early with full pensions. Some, are forced to take an additional state job and get a second retirement pkg to afford their Florida homes.
11/25/07 @ 11:09 am
capemom [Member] writes:
Democrant, tell me , where would the "good people" go if they didn't have 75% of their salary paid as a pension for the rest of their lives after working as a secretary for the MBTA for 20 years? Where would they go if tomorrow, they didn't get cash for unused sick days? Where would they go if they had to pay 25% of their health insurance?

The answer? Nowhere. Because nowhere else, (the private sector) pays even close to the bloated bennies these people get.
11/25/07 @ 11:55 am
wavemaker [Member] writes:
Democrant, you're going in circles so fast you make my head spin.

How does the "need for efficiencies" related to the (ridiculous) "courage" statement?

Want to consider how much more government service could be delivered to the truly needy if the state wasn't paying out a half-billion a year in utterly needless debt service on over-budget construction projects? Have an idea why the state college infrastructure is crumbling (it is)? Because the cost of bonding is so high the state can't afford to borrow more to fix it. Why? Because project labor agreements make a $100 million project $120 million.

The courage is not in saying "we need to spend money." It is in telling greedy interest groups that they're ripping us off and voting against legislators who enable them.

Your perspective is a big part of the problem. "Oh, but there are PEOPLE," we need to think of their FEELINGS.

Baloney. There is a fair wage and benefit to be paid for a necessary job to be done competently and faithfully. But the problem is we don't.

We pay inflated wages and benefits for an unnecessary job, paid to a cousin of a chairman who shows up (maybe) Tuesday through Thursday and moonlights at the Lottery double-dipping. You think that's an exception to the rule? Don't delude yourself.
11/26/07 @ 9:42 am
Democrant [Member] writes:
You all understand that the pension gap has more to do with how the privates have cut way back to screw their own. Your taxes will pay to support all those people also.

No one is against efficiencies in spending. There could be none more clearer than the absurd idea that a state cop is needed on these road details. But many of the ideas espoused here are not cut and dry. Nor will I for a moment apologize for thinking about actual people. Pretty easy for the keyboard cowards to rail on. Yes Wavemaker, your last paragraph is more the exception, people latch on to a single news story and get the idea that most people are like that. The cynicism in this country is sickening.
11/26/07 @ 9:58 am
wavemaker [Member] writes:
Democrant, you clearly are operating from a position of ignorance (of the facts). If you knew how many people there are with a state government job (I won't say "working") that ws created for them (of one of "them"), you'd be ashen. "A single news story" is not the exception, my friend. It is endemic in the system. Failure to acknowledge that is a big part of the problem.

Cynicism does not come naturally to me. It has taken years and years to come about.

The "real people" you care so much about are the ones who get hur the most by this institutional sloth and greed.

Wake up, dude.
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About This Blog

petermorin140_176Peter Morin grew up during the early 1960's in the rural Boston suburb of Wayland, where he honed his pond hockey skills sufficiently to be recruited by the University of Vermont. He graduated from UVM and Boston University Law School. After graduating he moved to Cape Cod to practice land use and zoning. Sheriff Jerry Bowes and his wife Jeanette, Morin encouraged him to run for state representative against then incumbent Thomas K. Lynch. He lost that race, but enjoyed the experience enough to announce on election eve that he would run again in 1984 where he narrowly defeated Barnstable favorite son John Klimm.

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