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CLT UPDATE
Friday, January 9, 2015

Good News and Better News


In one of his final acts in the Corner Office, Gov. Deval Patrick said last night he won’t give lawmakers raises for the next legislative session, depriving them of a pay bump many lawmakers have openly yearned for since 2009, the last time their salary went up.

Just hours after Patrick took his ceremonial “Lone Walk” out of the State House gates, the outgoing CEO told the treasurer’s office in a letter that “there would be no increase or decrease” to lawmakers’ $60,032 base pay for the next two-year cycle.

“I regret this outcome,” Patrick wrote. “As you know, I believe that an adjustment in base compensation for legislators and constitutional officers is warranted. While I could reach a different conclusion using a formula recommended by the recent Special Commission on Public Officials’ Compensation, I believe that I should not depart from current methodology without legislation to authorize the new formula.”

The Boston Herald
Thursday, January 8, 2015
Lawmakers stiffed by departing Deval Patrick


Senate President Stanley Rosenberg said he “vehemently” disagrees with outgoing Gov. Deval Patrick’s move yesterday to freeze legislators’ pay for the next two years, chiding the soon-to-be-ex-CEO for ignoring the advice of a commission he helped construct.

“I’m extremely disappointed with that decision,” Rosenberg, the upper chamber’s newly named leader, told reporters this morning, pointing to the recommendations last month from a commission, which included several Patrick appointees, to change how the governor calculates lawmakers’ biennial salary adjustments.

Patrick, in a letter yesterday, said he would neither cut or raise legislators pay, arguing he used the same method he used in past years to calculate change in the median household income to which pay is tied....

In his letter, the outgoing governor — who officially hands the reins of state government to Baker at noon today — said there would no increase or decrease to lawmakers’ base pay of $60,032 this time, a decision he said he made with “regret.”

“While I could reach a different conclusion using a formula recommended by the recent Special Commission on Public Officials’ Compensation, I believe that I should not depart from current methodology without legislation to authorize the new formula,” he wrote.

The Boston Herald
Thursday, January 8, 2015
Senate president blasts Patrick’s pay freeze


In his inaugural address, which was delivered to members of the Democrat-controlled Legislature in the House chamber, Baker said, "History will record that a budget deficit exceeding half a billion dollars is being transferred to my administration."

Patrick administration officials had claimed that $250 million in unilateral spending cuts they implemented had left only a $70 million to $80 million problem in the $36.5 billion budget. But while Beacon Hill Democrats have pointed to revenues as a source of the problems, Baker focused elsewhere.

"If we're honest with ourselves then we can't blame our deficit on a lack of revenue," he said. "We have to recognize that this is a spending problem. And that dealing with it now will make balancing next year's budget that much easier."

Saying he would "hold the line on taxes," Baker added, "We're already demanding enough from hard working people. And we will protect cities and towns and fulfill our promise to end the cuts to local aid. Otherwise, every line item will be looked at." ...

House Speaker Robert DeLeo and Senate President Rosenberg on Thursday morning declined to rule out higher taxes as an option to address budget woes.

Baker said there were "efficiencies to be gained and structural changes to be made," but predicted "there's no doubt that we have to make difficult decisions. We will do so with great sensitivity and careful judgment."

Asked about Baker's assessment of the reason for the budget imbalances, Rosenberg said after Baker's speech, "Some of the parts of this problem go back to tax cuts in the early 2000s..."

Asked if spending was the problem in the budget, DeLeo said, "Right now I mean in terms of what we do in terms of preparing our budgets, all of our estimates are based upon the estimates that we have before us at the time that we have our revenue hearings so that is based upon what we do relative to the money that we appropriate in our budgets. During that period of time certain things can change in terms of the economic conditions that neither we nor some of the economic experts were aware of."

State House News Service
Thursday, January 8, 2015
Baker budget chief says state "bleeding" money


Gov. Charlie Baker put the Democrat-dominated Legislature on notice yesterday, vowing within minutes of assuming the Corner Office to hold the line on taxes and tackle the state’s “spending problem” — a description that had legislative leaders tip-toeing around an outright rebuttal to the newly sworn-in CEO.

“I know we can do better,” Baker told a packed House chamber about a looming budget gap he said will exceed $500 million. “If we’re honest with ourselves then we can’t blame our deficit on a lack of revenue. We have to recognize that this is a spending problem.”

In a 26-minute inaugural speech, Baker promised that he will “challenge the status quo” to create a lean, nimble, but inclusive state government....

Baker’s blunt description of a “spending problem” put House Speaker Robert A. DeLeo and Senate President Stan Rosenberg on the defensive. They emphasized that they’re optimistic about working with Baker, but denied any free spending created their precarious fiscal situation.

“It’s on both sides of the ledger,” Rosenberg told reporters, blaming years-old tax cuts and “unanticipated increases” tied to Obamacare implementation. “The important thing is we have the ability to get the budget in balance...."

Both Rosenberg and DeLeo yesterday declined to rule out tax increases to help cover the deficit.

The Boston Herald
Friday, January 9, 2015
Gauntlet is thrown: Baker vows to hold the line on taxes


And sad to say we’ve managed to endure eight years under a governor who for all his personal charm seemed to have no interest in or particular skill at getting under the hood of state government and making it work. We’ve endured years of platitudes and press releases and precious little management of the state’s myriad problems.

That’s about to change — or so Baker pledged yesterday as he did throughout his campaign....

He cited in particular the Registry of Motor Vehicles — which is in need of being restored to the glory days of its previous transformation under the Weld and Cellucci administrations — and the Health Care Connector — a costly disaster for the state and a nightmare for consumers....

Now to anyone still laboring under the mistaken notion that Baker isn’t a real Republican (memo to our Boston Globe counterparts, yes, the time for self-delusion is now over), he made it abundantly clear that Massachusetts’ deficit is due to a “spending problem” which he doesn’t intend to solve by raising taxes.

“We’re already demanding enough from hard-working people,” he insisted.

The Boston Herald
Friday, January 9, 2015
Baker out to right ship of state
By Rachelle Cohen


Chip Ford's CLT Commentary

Yesterday we got good news and better news.

To my shock, departing Governor Deval Patrick, on his way out the door denied legislators any pay raise whatsoever.  Instead of their pay increasing by $4,000 per year as recommended by the recent so-called compensation commission and expected by legislators, Patrick decided to freeze base salaries at $60,032.

In his message to the state treasurer's office he wrote:

“As you know, I believe that an adjustment in base compensation for legislators and constitutional officers is warranted. While I could reach a different conclusion using a formula recommended by the recent Special Commission on Public Officials’ Compensation, I believe that I should not depart from current methodology without legislation to authorize the new formula.”

I appears that Patrick may have recognized that changing the formula unilaterally just might be unconstitutional, as we've been insisting it is.

An outraged new Senate President, Stanley Rosenberg, doesn't seem to appreciate "freezes" when it comes to legislators' benefits only when it affects what's taken from taxpayers' by not rolling back the 25-year old "temporary" income tax hike and "freezing" the voters' 2000 mandate to roll it back to 5 percent by 2004.  That voter mandate for a rollback was "frozen" by the Legislature in 2002; a dozen years later the promise still hasn't been kept.

What a breath of fresh air blew into the State House yesterday after eight years of stagnation and decline!  Charlie Baker was sworn in as the 72nd governor of the Commonwealth and in his inaugural speech stated:

"With respect to the state's budget our Constitution requires that the budget be balanced. No one understands that better than I do. The responsibility now rests with us.

"History will record that a budget deficit exceeding half a billion dollars is being transferred to my administration.

"If we're honest with ourselves then we can't blame our deficit on a lack of revenue. We have to recognize that this is a spending problem. And that dealing with it now will make balancing next year's budget that much easier.

"We will hold the line on taxes, we're already demanding enough from hard working people. And we will protect cities and towns and fulfill our promise to end the cuts to local aid. Otherwise, every line item will be looked at.

"I look forward to working with House Speaker DeLeo, Senate President Rosenberg and the members of both legislative branches to close this gap."

2015 is starting off on good footing for taxpayers. Former-Gov. Patrick (what a joy writing that term!) somehow, for some reason, finally did the right thing as he exited the office.

Governor Baker announced his support of taxpayers and opposition to any new taxes on his first day in office.

Savor the moment.  There's no telling how long it can or will last, but it's nice to have one now and then.

Chip Ford


 

The Boston Herald
Thursday, January 8, 2015

Lawmakers stiffed by departing Deval Patrick
By Matt Stout


In one of his final acts in the Corner Office, Gov. Deval Patrick said last night he won’t give lawmakers raises for the next legislative session, depriving them of a pay bump many lawmakers have openly yearned for since 2009, the last time their salary went up.

Just hours after Patrick took his ceremonial “Lone Walk” out of the State House gates, the outgoing CEO told the treasurer’s office in a letter that “there would be no increase or decrease” to lawmakers’ $60,032 base pay for the next two-year cycle.

“I regret this outcome,” Patrick wrote. “As you know, I believe that an adjustment in base compensation for legislators and constitutional officers is warranted. While I could reach a different conclusion using a formula recommended by the recent Special Commission on Public Officials’ Compensation, I believe that I should not depart from current methodology without legislation to authorize the new formula.”

Patrick’s decision is likely to surprise some. The Herald reported last month that experts, including Michael Widmer, the president of the Massachusetts Taxpayers Foundation, expected lawmakers to get their first raise in six years thanks to the state’s improving economy.

“It surely is going to go up. The question is how much,” Widmer said then.

But Patrick said he used the same formula he’s used in the past, which includes a mix of the U.S. Census’ American Community Survey and weekly average wages for the state to determine changes to median household income, off which lawmakers’ raises or cuts are based.

The decision also affects the pay of Gov.-elect Charlie Baker, whose annual salary will stand at $151,800 when he is sworn in today.

Pay became a hot topic in December after a committee proposed a range of increases to legislative leaders’ salaries, as well as those of the governor and other constitutional officers, that called for hikes that would push the Senate president and speaker of the House’s annual haul to $175,000 and the governor’s to $185,000.

The committee also recommended using a set of federal data to determine the biennial adjustments that, according to its report, would this time bump lawmakers’ pay by 6.6 percent, or nearly $4,000 a year.

Patrick noted in his letter he would have signed legislation putting the pay bumps recommended by the commission into affect if lawmakers had acted on his bill to close a budget gap.


The Boston Herald
Thursday, January 8, 2015

Senate president blasts Patrick’s pay freeze
By Matt Stout


Senate President Stanley Rosenberg said he “vehemently” disagrees with outgoing Gov. Deval Patrick’s move yesterday to freeze legislators’ pay for the next two years, chiding the soon-to-be-ex-CEO for ignoring the advice of a commission he helped construct.

“I’m extremely disappointed with that decision,” Rosenberg, the upper chamber’s newly named leader, told reporters this morning, pointing to the recommendations last month from a commission, which included several Patrick appointees, to change how the governor calculates lawmakers’ biennial salary adjustments.

Patrick, in a letter yesterday, said he would neither cut or raise legislators pay, arguing he used the same method he used in past years to calculate change in the median household income to which pay is tied.

“We have a commission that he helped name that contained economists, academic economists, a former head of the federal reserve bank of Boston, and they looked to identify a fair way of determining what the increase or decrease in median family income was,” Rosenberg said. “They came up with an answer and it was ignored. I don’t know how you take people of that caliber, ask their advice, not challenge the results of their research and then dismiss it.”

Rosenberg, speaking to reporters after attending a legislative reception for incoming Gov. Charlie Baker, pointed to Patrick’s argument that he wanted to remain consistent in how he determine the adjustments.

“So when a new idea comes to the table and it conflicts with the old idea, that means you dismiss it? I don’t understand that thinking,” the Amherst Democrat said, adding that he is now focused on a looming budget deficit and not addressing lawmaker compensation with legislation.

“The governor fulfilled his constitutional obligation. I disagree vehemently with his decision,” he said. “But that was yesterday and today I am focused on the deficit.”

Lawmakers haven’t received a raise in pay since 2009, and Patrick ordered cuts of 0.5 percent and 1.8 percent the last two legislative cycles.

In his letter, the outgoing governor — who officially hands the reins of state government to Baker at noon today — said there would no increase or decrease to lawmakers’ base pay of $60,032 this time, a decision he said he made with “regret.”

“While I could reach a different conclusion using a formula recommended by the recent Special Commission on Public Officials’ Compensation, I believe that I should not depart from current methodology without legislation to authorize the new formula,” he wrote.

Patrick noted in his letter he would have signed legislation putting the pay bumps recommended by the commission into effect if lawmakers had acted on his bill to close a budget gap. But lawmakers didn’t agree with Patrick’s calls to cut local aid, and it languished, leaving it to Baker and the next legislative cycle to close a deficit that some have pegged at $750,000.

Speaker of the House Robert DeLeo said that it was Patrick’s “prerogative” to freeze the pay, but said he’s “sure” that addressing compensation is “going to be one of the topics that members are going to talk about.”

“The thing you have to remember,” DeLeo said, “especially during this last session, we lost a whole host of folks, good talented folks, many of whom would come up to me and say, ‘Hey, you know, I’m at the stage now, I have children who are growing, I have children who are talking about moving on to college. And although I love my job, I love helping people, I love this work, I just can’t afford.’”

Sen. Benjamin Downing said he had no problem with Patrick’s move.

“I don’t need a raise to do this job,” he said.

House Minority Leader Brad Jones said Patrick’s move to agree with the task force’s findings but not implement them speaks to problems he saw with the Democrat’s governing.

“I think the governor says one thing and does another, and that’s sort of typical of the eight years,” the North Reading Republican said. “And why should the last day be any different?”


State House News Service
Thursday, January 8, 2015

Baker budget chief says state "bleeding" money
By Michael Norton and Andy Metzger


Not long after Gov. Charlie Baker said he'd inherited a mid-year state budget gap of more than $500 million, his top fiscal adviser said the state is "bleeding" money every day, creating a dire need for action.

"We have to address it immediately. Every day counts. Every single day that goes by we're just bleeding more money. We have to address it immediately," Administration and Finance Secretary Kristen Lepore said minutes after she was sworn in by Baker.

In his inaugural address, which was delivered to members of the Democrat-controlled Legislature in the House chamber, Baker said, "History will record that a budget deficit exceeding half a billion dollars is being transferred to my administration."

Patrick administration officials had claimed that $250 million in unilateral spending cuts they implemented had left only a $70 million to $80 million problem in the $36.5 billion budget. But while Beacon Hill Democrats have pointed to revenues as a source of the problems, Baker focused elsewhere.

"If we're honest with ourselves then we can't blame our deficit on a lack of revenue," he said. "We have to recognize that this is a spending problem. And that dealing with it now will make balancing next year's budget that much easier."

Saying he would "hold the line on taxes," Baker added, "We're already demanding enough from hard working people. And we will protect cities and towns and fulfill our promise to end the cuts to local aid. Otherwise, every line item will be looked at."

While Baker highlighted the need to balance the budget, his first official action was to release $100 million in local road and bridge funds authorized by the Legislature, but held back by former Gov. Deval Patrick. Patrick had signed off on a $200 million Chapter 90 program, noting it was the highest level of funding for that program, and argued limited transportation funds needed to be spent judiciously.

Baker's team said releasing the funds was important to job creation, public safety and economic growth.

House Speaker Robert DeLeo and Senate President Rosenberg on Thursday morning declined to rule out higher taxes as an option to address budget woes.

Baker said there were "efficiencies to be gained and structural changes to be made," but predicted "there's no doubt that we have to make difficult decisions. We will do so with great sensitivity and careful judgment."

Asked about Baker's assessment of the reason for the budget imbalances, Rosenberg said after Baker's speech, "Some of the parts of this problem go back to tax cuts in the early 2000s and some of it is unanticipated increase in expenses that are tied principally with the transition we're going through in our health care system as a result of the federal government's passing the ACA, which basically comes into some conflict with our successful state health reform. So it's on both sides of the ledger. The important thing is we have the ability to get the budget in balance and that's our job one."

Asked if spending was the problem in the budget, DeLeo said, "Right now I mean in terms of what we do in terms of preparing our budgets, all of our estimates are based upon the estimates that we have before us at the time that we have our revenue hearings so that is based upon what we do relative to the money that we appropriate in our budgets. During that period of time certain things can change in terms of the economic conditions that neither we nor some of the economic experts were aware of. So that's the reality of the problem. But what's good to know about Massachusetts unlike many other states when we have issues such as that we address them as opposed to waiting and waiting and waiting and quite frankly that's why you saw here in Massachusetts the fact that we saw our bond rating increase because when we had those economic issues that we had to address we addressed them immediately and we moved forward as a Commonwealth."

The Massachusetts Taxpayers Foundation last year estimated the deficit at about $750 million after accounting for Patrick's spending cuts, an estimate that Patrick budget chief Glen Shor disputed.

"I think that the estimate that the Mass. Taxpayers Foundation issued is a credible number. They're a very credible organization," Lepore told reporters in the State Library where the swearing-in was held. "We're going to be working through the weekend to try to verify and develop our own number, so we should know hopefully within the next three days."

Lepore said all manner of spending cuts could be up for consideration.

"It definitely is a spending problem. Revenues have been coming in on benchmark. And as he said today, everything is on the table except for local aid to cities and towns," Lepore said.

Sen. Vinny deMacedo (R-Plymouth) said he is concerned about the fiscal impact associated with thousands of people placed on MassHealth coverage when they were unable to access coverage through the Connector Authority due to technological problems. "There are a lot of unknowns," said deMacedo, who was the ranking Republican member of the House Ways and Means Committee when he served in the House.

The longer Beacon Hill officials wait to deal with the budget dilemma, the more the spending cuts will be amplified, deMacedo said.

"It's something that we are all going to have to deal with, whether we like it or not. That is a reality. The challenge is we have to deal with it sooner rather than later."

Fall River Mayor Sam Sutter said he liked Baker's bipartisan tone and interest in stemming the opiate addiction crises, and that Baker's reference to a "spending" problem was not a surprise. "He does come from the party that thinks that is a problem," said Sutter, a district attorney who won the office after a special election in December.

Sen. Dan Wolf (D-Harwich) said Baker's charter school promises in the speech will also need revenue. "It was a beautiful speech, but delivering on that under the financial pressure, I think that's going to be a challenge," Wolf said.

The Senate last year rejected a charter school expansion effort after the House agreed to the measure. "I'm expecting there will be a very robust discussion on that issue yet again," Rosenberg said. "The Senate spoke last year. We have new members. We'll revisit the subject in the months ahead."

Matt Murphy and Gintautas Dumcius contributed reporting


The Boston Herald
Friday, January 9, 2015

Gauntlet is thrown: Baker vows to hold the line on taxes
By Matt Stout and Chris Cassidy


Gov. Charlie Baker put the Democrat-dominated Legislature on notice yesterday, vowing within minutes of assuming the Corner Office to hold the line on taxes and tackle the state’s “spending problem” — a description that had legislative leaders tip-toeing around an outright rebuttal to the newly sworn-in CEO.

“I know we can do better,” Baker told a packed House chamber about a looming budget gap he said will exceed $500 million. “If we’re honest with ourselves then we can’t blame our deficit on a lack of revenue. We have to recognize that this is a spending problem.”

In a 26-minute inaugural speech, Baker promised that he will “challenge the status quo” to create a lean, nimble, but inclusive state government.

He also knocked Beacon Hill for having ignored some of its “toughest challenges,” likening it to “kicking a can down the road because they’re not politically convenient or easy to fix.”

Baker’s blunt description of a “spending problem” put House Speaker Robert A. DeLeo and Senate President Stan Rosenberg on the defensive. They emphasized that they’re optimistic about working with Baker, but denied any free spending created their precarious fiscal situation.

“It’s on both sides of the ledger,” Rosenberg told reporters, blaming years-old tax cuts and “unanticipated increases” tied to Obamacare implementation. “The important thing is we have the ability to get the budget in balance. ... We’re going to find a lot of common ground based on that speech.”

DeLeo, too, cited changing “economic conditions” beyond their control, and brushed off questions that Baker had laid blame at the feet of lawmakers’ for putting off fixes.

“The governor wants to get things done, and he wants to get things obviously in a bipartisan fashion,” the Winthrop Democrat said. “I thought he set the right tone with his first speech.”

Baker campaigned on providing a counterweight to the Legislature, and the immediacy of the budget gap — which he said he plans to address within two weeks — will likely provide the first test of that.

Both Rosenberg and DeLeo yesterday declined to rule out tax increases to help cover the deficit.

Baker’s budget chief, Kristen Lepore, called the Massachusetts Taxpayers Foundation’s estimate of a $750 million budget shortfall a “credible” number, and told reporters, “Every single day that goes by we’re just bleeding more money. We have to address it immediately. Every day counts.”

Former Gov. William F. Weld, a Baker confidant, told the Herald that Baker introduced his chief of staff, Steve Kadish, at a breakfast yesterday “as a man who’s going to make the lives of many miserable,” drawing chuckles from the attendees.

“It means being disciplined and assuming nothing and zero-basing every decision,” Weld said on Boston Herald Radio. “By that I mean: Don’t assume that the appropriation is going to be the same as last year’s. Assume it’s zero until proven otherwise.”

Baker also moved quickly yesterday to release $100 million in local road funds to cities and towns, fulfilling a campaign promise to mark one of his first official acts.

Richard Weir contributed to this report.


The Boston Herald
Friday, January 9, 2015

Baker out to right ship of state
Shares Menino’s idea that basic services truly matter
By Rachelle Cohen


After the hugs and the smiles and the air kisses, after the bursts of applause and the occasional standing ovation, after the last crumbs of the State House replica cake have been consumed, there is the governing.

Charlie Baker knows that better than any governor who has held the office in the past half century — with the possible exception of Paul Cellucci. As a member of the Weld administration he saw life inside the sausage factory. He saw it up close and personal, and yet he still wanted to do this — really govern.

And sad to say we’ve managed to endure eight years under a governor who for all his personal charm seemed to have no interest in or particular skill at getting under the hood of state government and making it work. We’ve endured years of platitudes and press releases and precious little management of the state’s myriad problems.

That’s about to change — or so Baker pledged yesterday as he did throughout his campaign.

“We will challenge the status quo, look for and try new approaches and recognize they might not always work,” Baker said in his inaugural message. “When that happens, we’ll acknowledge it. Learn from it. And try again.”

He cited in particular the Registry of Motor Vehicles — which is in need of being restored to the glory days of its previous transformation under the Weld and Cellucci administrations — and the Health Care Connector — a costly disaster for the state and a nightmare for consumers.

Baker’s role model? The late Boston Mayor Tom Menino.

“He believed that government was about high ideals. But he also equally believed that basic services mattered and that every detail counted,” he said.

Not a bad role model to have.

And by all accounts Baker and Menino’s successor, Marty Walsh, have found ample common ground in Baker’s commitment to charter schools, tackling the opiate addictions that are the scourge of too many communities and supporting neighborhoods “that have not benefited from our economic success.”

Citing the “tragic events in Ferguson and New York City,” he added, “When people lose hope, bad things happen.

“I’ve said a thousand times I want every community to be a place where people believe tomorrow is going to be better than today. I say that not just because I believe it, but because I believe in it.”

It was the compassionate side of the Charlie Baker agenda that, not surprisingly, drew the rare standing ovation from a crowd that included members of the overwhelmingly Democratic Legislature.

And let’s face it, with the bad blood that flowed between Deval Patrick and legislative leaders — blind-siding them on his pitch for a massive $2 billion tax hike, really? — that relationship has nowhere to go but up.

Senate President Stan Rosenberg threw out the opening day olive branch, offering “to work as partners with you,” adding, “there may be issues on which there may be disagreement, but we pledge to do so without being disagreeable.”

And that’s a start.

Now to anyone still laboring under the mistaken notion that Baker isn’t a real Republican (memo to our Boston Globe counterparts, yes, the time for self-delusion is now over), he made it abundantly clear that Massachusetts’ deficit is due to a “spending problem” which he doesn’t intend to solve by raising taxes.

“We’re already demanding enough from hard-working people,” he insisted.

Nor will he solve the budget deficit — likely in excess of a half billion dollars — by squeezing cities and towns with a local aid cut, another Patrick proposal that made Democrats happy to see him take that Lone Walk on Wednesday.

Beginnings are invariably wonderful. What’s not to like when everything is fresh and new and there are no promises yet broken?

Asked by State House News Service how he thought Baker would get along with Democratic legislative leaders, Bill Weld replied, “like ham and eggs.”

You’re free to pick your own metaphor here, but this one works as well as any.

Rachelle Cohen is editor of the editorial pages.

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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