What's next for Mitt Romney? Possibly some R&R in
Hawaii, a bit of local skiing, and next month's Paralympics here. Then back to Boston to consider
his political options.
The Boston Globe
Feb. 25, 2002
Romney mulling his options
With the governor's race heating up, Swift's
standing with voters is precarious. Polls paint a bleak picture for her future.
Her aides blame her poor standing on bad economic times. But analysts outside her office
say her problem is closer to home: Politically, Swift has a tin ear....
Still, her actions have sent chills down the backs
of some Republicans who fear she cannot regain her political standing in time for the elections. The
situation has sparked reports that Mitt Romney, the wealthy venture capitalist who ran a spirited but
losing campaign against Kennedy in 1994, could be lured back to Massachusetts to challenge Swift.
The Boston Globe
Feb. 23, 2002
Political miscues are a problem for Swift
But House Democrats staring down a $2 billion budget
gap in the fiscal year that begins in July say it's irresponsible not to discuss new funding sources.
The idea that gets the most attention is delaying the voter-approved income tax cut, or even
rolling back the so-called rollback....
The revenue working group, co-chaired by Reps. Paul
Casey (D-Winchester) and William Greene (D-Billerica) holds a public hearing this week. The
same group will hold hearings March 7 in Fall River and March 12 at the State House. (Wednesday, 6:30
pm, Middlesex Community College cafeteria, Lowell)
* * *
Between major increases in education aid and general
hikes in unrestricted local aid, cities and towns have been among the largest beneficiaries of a state
budget that has doubled in a decade.
State House News Service
Advances - Week of Feb. 24, 2002
BOSTON - All five Democrats seeking to replace
acting Gov. Jane Swift support raising taxes to ease the state's economic woes, putting them in direct
opposition to Swift's pledge not to increase taxes.
Treasurer Shannon O'Brien, Senate President Thomas
Birmingham, and former U.S. Secretary of Labor Robert Reich say they would freeze the state's
voter-approved income tax rollback until the economy improves....
Birmingham, who predicts a budget gap of up to $3 billion in fiscal year 2003, is the only
candidate who has said he is willing to raise the income tax to 5.6 percent, padding revenues
by $500 million.
Associated Press
Feb. 24, 2002
Democrats support raising taxes to fill budget gap
With economists now predicting that the recession is
over, the question is how long is it going to take before we start to feel it....
That means they'll have to do something that often
seems anathema to politicians: live within their means.
Trimming state government is never fun work, but with Massachusetts now facing a
projected $3 billion budget deficit, it's unavoidable. Lawmakers will simply have to prioritize
their spending and, most important, avoid the rush to raise taxes, which
simply takes more money out of the pockets of consumers....
Panic is hardly needed now, even though it is an election year. If government leaders
recognize the importance of doing the least possible damage during tough times, the
economic rewards are sure to be enjoyed by everyone.
A Fall River Herald News editorial
Feb. 24, 2002
State must prioritize as economy heals
Republicans might still have a chance to hold the corner
office: Mitt Romney is coming home.
It's become blatantly obvious that Jane Swift cannot and
will not be re-elected; that in a race between her and any of the Democrats, she will lose.
And every one of the Democrats are campaigning on a promise
of tax increases. Without exception, all of them are bad news for taxpayers: some are just worse than others.
Taxpayers desperately need an electable "no new taxes" candidate for governor in November. Today, we
don't have one.
The stakes have never been higher. If a Democrat is elected
-- as would likely happen if the election was held today -- not only will that guarantee new taxes and more broken
promises from an entirely Democrat-controlled state government, but it will also indefinitely
drag out the current recession in Massachusetts.
 |
|
Chip Ford |
The Boston Globe
Monday, February 25, 2002
OLYMPIC NOTEBOOK
Romney mulling his options
By John Powers
Globe Staff
SALT LAKE CITY - What's next for Mitt Romney? Possibly some R&R
in Hawaii, a bit of local skiing, and next month's Paralympics here. Then back to Boston to consider his political
options.
"Three things," said Salt Lake's chief organizer, who's
riding the same wave of approval that Peter Ueberroth did after the 1984 Summer Olympics in Los Angeles. "Is there an open
window, a race that I can get into? Is it a position where you can make an important
contribution? And, can I win?"
Though Romney says he's going to "look at the entire
landscape," he said he won't take on another US Senate race against Edward Kennedy. People close to him say he hasn't ruled
out this year's gubernatorial race, but wouldn't want to split the Republican party by
challenging acting governor Jane Swift. If Swift's approval numbers continue to decline,
though, and the corner office appears to be in jeopardy, Romney might be
open to a draft - just as he was when besieged Utahns begged him to ride in on a white charger and save their
Games. Romney, by the way, last night was awarded the Olympic Order in gold,
the International Olympic Committee's highest honor.
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The Boston Globe
Saturday, February 23, 2002
ANALYSIS
Political miscues are a problem for Swift
By Frank Phillips
Globe Staff
Preparing for a tribute to those who died in the Sept. 11
attacks, US Senator Edward M. Kennedy's staff asked if he could speak. So did aides to US Senator John F. Kerry and US
Representative Martin Meehan. But the word came back from the acting governor's office:
Only Jane Swift will speak.
The rebuff to the state's two Democratic senators and the
Lowell congressman last week was another, albeit subtle, example of the political missteps that seem to be damaging
Swift.
Swift was awarding the first Madeline Amy Sweeney Award for
Civilian Bravery at Faneuil Hall, honoring the flight attendant from Acton on American Flight 11.
Kennedy had spoken eloquently to the victims' families on
the same stage last fall after the attacks. Meehan had worked closely with the Sweeney family and the other two families
who received the award. For an hour, the three Democrats stood behind her, props for her
event.
"You don't play politics with an event like that," said a
Democratic leader.
But that is the problem: Swift didn't play politics, at
least the right politics.
With the governor's race heating up, Swift's standing with
voters is precarious. Polls paint a bleak picture for her future.
Her aides blame her poor standing on bad economic times. But
analysts outside her office say her problem is closer to home: Politically, Swift has a tin ear.
Those close to Swift say she is most comfortable engaging in
policy discussions. She has earned respect on Beacon Hill for her command of details and ability to articulate her
position.
But what has become obvious after nearly 11 months in office
is that Swift remains uncomfortable with and averse to the
horsetrading, ego-stroking, interpersonal side of politicking.
The political toll has been heavy. She is facing a bloodletting Republican primary battle over
her choice for lieutenant governor. The turnpike is in turmoil after two board
members defied her over toll increases, and continue feuding with the administration.
She snubbed Boston's black ministers recently, failing to
consult them over her selection of a new district attorney for Suffolk County, the most diverse of the state's counties. Her
failure to notify the supporters of convicted child molester Gerald Amirault of her decision to reject
his commutation request before it was leaked out inflamed passions already
overheated by the case.
Last fall, Swift had a fairly strong standing among voters.
But a recent Globe/WBZ poll and a survey by the business group Mass Insight show a dramatic decline. Sixty-six percent of
those surveyed in the Mass Insight poll gave her marks of fair to poor for job performance, a
negative rating that will almost certainly doom her election hopes if it remains at that level.
"She just doesn't have those political instincts that Bill
Clinton tended to have," said Tobe Berkovitz, professor of communication at Boston University. "Her first instinct is
almost always wrong."
Her aides and supporters express confidence she can bounce
back as she has before. They say Swift is paying temporarily for taking tough positions on issues like budget cuts and
cleaning up the Massachusetts Port Authority.
"When people start to pay attention to what a smart woman
she is and what a good leader she is, those poll numbers will turn around," said James Borghesani, her press secretary. He
also dismissed any notion that Swift was intentionally blocking the Democrats from speaking
at the Sweeney Award event. "It was simply a matter of enough time."
Still, her actions have sent chills down the backs of some
Republicans who fear she cannot regain her political standing in time for the elections. The situation has sparked reports
that Mitt Romney, the wealthy venture capitalist who ran a spirited but losing campaign against
Kennedy in 1994, could be lured back to Massachusetts to challenge Swift.
The Faneuil Hall rebuff was the second slight in as many
weeks to Kennedy and Meehan. Swift had just days earlier tried to beat Kennedy and Meehan to the punch on an
announcement of a federal economic development designation for the cities of
Lowell and Lawrence. The two Democrats had engineered the designation as renewal communities to
stimulate development.
Kennedy would never publicly complain, and his aides insist
he was not ruffled over the incidents. They insist the relationship between the Massachusetts senior senator and the
acting governor is smooth.
But the Faneuil Hall event reflects the sharp difference in
Swift's approach from that of her Republican predecessor.
Former governor Paul Cellucci carefully cultivated Kennedy,
knowing that the senator carries huge clout in Washington. His deference paid off in 2000, when a frenzy erupted over the
cost of the Big Dig. Kennedy kept the issue under control on Capitol Hill.
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State House News Service
Advances - Week of Feb. 24, 2002
NEW REVENUES: Acting Gov. Swift has pledged to veto any new or
higher taxes and make tax policy her central campaign theme this year. But House Democrats staring down a
$2 billion budget gap in the fiscal year that begins in July say it's irresponsible not to discuss
new funding sources.
The idea that gets the most attention is delaying the
voter-approved income tax cut, or even rolling back the so-called rollback.
But after cutting taxes 45 times over the past decade - an
exercise that analysts say removed $4.57 billion from the state's tax base - lawmakers may be interested in revisiting
other tax cuts, including the estate tax cut and the six-year effort to phase out taxes on capital gains.
Lawmakers are also talking about boosting the gas tax, the
cigarette tax or the alcohol tax. And then there are fees. Legislators are hoping to have a frank discussion with Swift
administration agency managers about fee levels and adjustments.
House Speaker Finneran has convened a working group on
revenues to look at the panoply of quick cash options. Others include delaying pension system payments, tapping larger
amounts from the tobacco settlement, borrowing against anticipated revenues, cashing out
obscure funds that carry balances from year to year, selling state assets, and expanding
gambling by allowing casinos or slot machines.
Finneran wants new ideas to be ready for discussion in a
closed Democratic caucus on April 3. The House plans to consider revenue options in a floor debate the week of April
29.
The revenue working group, co-chaired by Reps. Paul Casey
(D-Winchester) and William Greene (D-Billerica) holds a public hearing this week. The same group will hold hearings
March 7 in Fall River and March 12 at the State House. (Wednesday, 6:30
pm, Middlesex Community College cafeteria, Lowell)
* * *
LOCAL AID: Between major increases in education aid and general
hikes in unrestricted local aid, cities and towns have been among the largest beneficiaries of a state budget that
has doubled in a decade. But now it appears the good times are over.
Acting Gov. Jane Swift's January budget proposal called for
a $100 million increase in education assistance but cuts in other local aid accounts. And House budget chiefs have
made a point to go public with warnings that local aid in the fiscal year that begins in July may
be cut by as much as 10 percent to help state government close a budget gap estimated at
$2 billion....
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Associated Press
Sunday, February 24, 2002
Democrats support raising taxes to fill budget gap
BOSTON - All five Democrats seeking to replace acting Gov. Jane
Swift support raising taxes to ease the state's economic woes, putting them in direct opposition to Swift's pledge
not to increase taxes.
Treasurer Shannon O'Brien, Senate President Thomas Birmingham, and former U.S.
Secretary of Labor Robert Reich say they would freeze the state's voter-approved income
tax rollback until the economy improves.
Former Democratic National Committee Chairman Steve Grossman
and former state Senator Warren Tolman said they would not oppose voters on the income tax issue, but they
are on the same side as their Democratic opponents with their support for
raising state cigarette taxes by 50 cents per pack.
All the Democrats also support tapping state reserves for
$500 million to $750 million to help close the state's budget deficit, estimated at between $1.6 billion and $2 billion in
fiscal year 2003.
The shrinking economy poses difficult questions for Beacon
Hill, as revenues fall and lawmakers cut programs.
Michael Widmer of the Massachusetts Taxpayers Foundation
said detailing budget plans makes for "a difficult recipe for campaigning."
"Candidates like to get elected on spending increases and
tax cuts, and we're heading in the opposite direction on both," he told a Boston newspaper.
The Democrats agree that the deficit will be about $2
billion next year, but differ on how best to fill the gap.
Reich said he believes up to $600 million can be cut by
slimming down administration and eliminating patronage jobs that serve little purpose.
Tolman for now suggests minor cuts, such as the state's $5
million subsidy for racetracks, and wants to cut out government "waste and inefficiencies. But he said he won't commit to
supporting most new taxes until a clearer budgetary picture emerges.
Grossman and O'Brien have the most detailed plans for fiscal
recovery.
Grossman calls for taking $750 million in reserve funds,
raising the cigarette tax, spending all of the state's settlement with tobacco companies, purchasing prescription
drugs in bulk, and lowering lottery payouts.
"I'm prepared to take on a whole herd of sacred cows," he
said.
O'Brien's plan calls for closing the gap by $1.4 billion
through tax increases and spending reductions, and trimming administrative budgets by $100 million. More program cuts will
be necessary, she said.
She also said she would freeze the income tax rollback at
5.3 percent, rather than allowing it to drop to 5 percent, as scheduled. That would generate $240 million next year, she
said.
"We're going to be producing a more detailed budget plan
later," she said.
Birmingham, who predicts a budget gap of up to $3 billion in
fiscal year 2003, is the only candidate who has said he is willing to raise the income tax to 5.6 percent, padding
revenues by $500 million.
He supports annual reviews of agency budgets, rather than
automatic yearly increases. He was circumspect about his budget plans, saying he has to help write the state spending plan.
"I've got to really do this budget, and not just talk about
it," he said. "A budget is a complicated document, but it's easy to make generalizations. I can't just unilaterally
pontificate."
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The Fall River Herald News
Sunday, February 24, 2002
Editorial
State must prioritize as economy heals
With economists now predicting that the recession is over,
the question is how long is it going to take before we start to feel it.
That's as important a question for job seekers who have
become discouraged at how tough the market is, as it is for state officials nervously watching as tax revenues continue a
downward slide.
Patience is a virtue, particularly for government leaders
who have to make tough choices in an election year. The next few months will determine whether our political leaders set the
stage for a rebound later this year or in early 2003, or make politically expedient mistakes
that hinder a full recovery.
If the recession has indeed ended, it will likely be
recorded in the history books as one of the shortest and mildest in recent history. It could also be remembered as the
recession that was seriously exacerbated by the Sept. 11 terrorist attacks.
Even today, amid upbeat reports about slowing job losses and
a rise in consumer confidence, the lingering effects of Sept. 11 can still be felt. The major airlines carried 6
million fewer passengers in January than during the same period in early 2001, a 14.2
percent drop in business. The only bright spot is that the declines were even sharper in
October and November.
But other sectors of the economy are picking up steam. The
National Association for Business Economics maintains the economy has turned the corner and is growing again. It is
forecasting growth at 1.5 percent throughout the rest of this year, and at an even stronger
pace of 3.8 percent in 2003.
The Conference Board's Index of Leading Economic Indicators,
viewed as a significant predictor of future activity, rose 0.6 percent in January, its fourth consecutive monthly
increase.
Some economists now think the recession may have ended in
November. The nation's Gross Domestic Product fell at a 1.3 percent rate in the third quarter, and that may turn out to be
the last negative period.
The good news is that people who have jobs can probably feel
more secure about keeping them, since the wave of job losses since last spring has significantly abated. As consumers
become more confident that they're not in danger of losing their jobs,
they'll likely increase their spending.
That doesn't automatically help job hunters who are finding
a tough market out there. But in the coming months, it surely will. Businesses have already whittled down their excess
inventories, and when consumers start spending more, eventually companies will have to start
re-gearing again to boost production and meet consumer demand.
However, it's going to take months before state governments
feel the impact of that hiring through increased tax receipts. Taxes won't grow until the unemployment rate sinks much
lower. That means they'll have to do something that often seems anathema to politicians: live
within their means.
Trimming state government is never fun work, but with
Massachusetts now facing a projected $3 billion budget deficit, it's unavoidable. Lawmakers will simply have to prioritize
their spending and, most important, avoid the rush to raise taxes, which simply takes more
money out of the pockets of consumers.
If lawmakers can take on this difficult task, they could be
poised for budget growth by 2003. That may seem like an awfully long time away, but it's not.
The last recession, which began in 1989, did not officially
end until 1992, and the job market didn't feel a rebound until 1996. By 1998, the economic doom and gloom seemed like a very
distant memory, as jobs were plentiful and employers struggled to find workers.
In comparison, this recession truly was mild. It started
last March, and may have ended by November, or this winter. Panic is hardly needed now, even though it is an election year.
If government leaders recognize the importance of doing the least possible damage during
tough times, the economic rewards are sure to be enjoyed by everyone.
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