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TOWNIE: CITY ON A HILL

Worcester MA with covered wagon

 

Global warming will flood Boston. Why not move the state capital to Worcester?

 

May 26, 2018

BY JASON PRAMAS @JASONPRAMAS

 

Many small American cities have boosterish metro research organizations that look like a cross between a public policy outfit and a chamber of commerce, and the Bay State’s second biggest urban area is no exception. The Worcester Regional Research Bureau (WRRB) was founded in 1985 during a period when all of Massachusetts’ major cities were facing a funding crisis caused by the tax-slashing Proposition 2 1/2 and needed to find ways to keep their local economies functioning with less funding from state government. Since that time, according to its website, the “Research Bureau has prepared over 220 reports and held over 200 forums on topics including public administration, municipal finance, economic development, education, and public safety.” Its board is like a who’s who of the Worcester power structure.

 

In March, WRRB released a 10-page report, “Brokering a New Lease: Capturing the Value of State Offices for Massachusetts.” Not exactly the kind of title that’s going to inspire headlines, and it didn’t—only receiving coverage in the Worcester Business Journal and Commonwealth magazine. But the white paper actually makes an interesting point: Why are the headquarters of the many state agencies mainly in the Hub?

 

Boston has very expensive real estate prices. And even though the state owns some office buildings around town, many agencies lease commercial space for their headquarters. So, WRRB reasons, wouldn’t it make good sense to move some of those HQs to Worcester? Saving the Commonwealth money, and helping the Worcester economy with lots of decent state jobs in the process?

 

Consider that, according to the report, Class A office space in Boston was running as high as $60.85 per square foot in 2017. It then points out that the “state pays an average of $37 per square foot across its Boston lease agreements, with a high of $73 per square foot near Boston City Hall and a low of $19 per square foot in Hyde Park.”

 

Meanwhile, “Brokering a New Lease” continues: “The [WRRB] consulted the City’s Economic Development Office and local real estate brokers and identified 275,000 square feet of available space across eight buildings that could feasibly house a state office. … The average rent was $21.31 per square foot, and one local broker said $22 per square foot would be a reasonable minimum estimate for new leases involving capital investment.”

 

A savings of $15 per square foot on average—which translates to my back-of-the-envelope estimate of $4,125,000 a year that would stay in the Commonwealth’s coffers—is nothing to sneeze at. It’s true that removing 275,000 square feet of the 1,675,806 square feet that the state currently has under lease in Boston, according to the report, would mean that the Hub stands to lose 16.4 percent of its state office space. Not an inconsiderable economic hit for Boston’s commercial real estate market, and something WRRB staff do not seem to be concerned about. But Worcester’s gains would potentially offset Boston’s losses from such a deal, when considering the state economy in its entirety.

 

Which makes the report’s rationale for moving some agency offices sound reasonable on cost-benefit grounds alone—although I can understand why many state employees might not want to move from more cosmopolitan Boston to a city with less social and cultural opportunities on offer. On the other hand, with a significantly lower cost of living, state salaries will stretch a lot further in Worcester County. To the point of allowing low-level bureaucrats, who couldn’t dream of buying so much as a condo in Boston these days, to buy a house out there.

 

But what interests me about the report is not so much its original subject as something I’m sure that WRRB staff hasn’t yet given the slightest thought. Over the last few years, I’ve written numerous columns and editorials sounding the alarm about what I feel is Boston’s woefully inadequate preparations for the several major global warming-induced crises that scientists expect coastal cities to endure in the coming decades. One of the most dangerous of those is sea level rise. Much of Boston is low-lying former wetlands, and unless we start building major harbor-wide flood defenses soon, we don’t have a prayer of slowing the Atlantic Ocean’s reclamation of those areas. And doing grave damage to critical systems like power, transportation, and sewage in the process.

 

Even if Boston does build huge dikes, and make other needed changes to the city design, it’s only a matter of time before the ocean wins. Since sea levels are expected to continue to rise for hundreds of years until, potentially, all of Earth’s major land-based ice sheets have melted into the ocean.

 

So why not move the state capital to Worcester—a city whose elevation is 480 feet—in stages? Starting with getting state agencies out to the city appropriately nicknamed the “Heart of the Commonwealth” in the manner the WRRB suggests. Then building the bullet train to Boston that former gubernatorial candidate Setti Warren is so excited about. And gradually transferring more and more of state government to the “City of Seven Hills” (the place really has a lot of nicknames). Until, eventually, we move the State House itself.

 

In addition to helping state government better weather global warming, having our capital in the middle of the state could go a long way toward healing the many divisions between eastern and western Massachusetts.

 

Don’t get me wrong; this is not the kind of proposal I’d make if we weren’t facing climate change dire enough to threaten the survival of the human race. But we are. Not today. Not tomorrow. Someday soon, though. We’re already seeing signs and portents now in the increasingly frequent “wild weather” that dishonest meteorologists like to prattle on about on Fox and its ilk. Including Worcester becoming more of a tornado alley than it already was—something I don’t think is nearly as much of a threat as the anticipated 10 feet of sea level rise Boston is facing by century’s end. More, if the land-based Greenland and Antarctic ice sheets start sliding into the ocean faster than the majority of climate scientists are currently projecting.

 

In past writing, I’ve suggested moving critical Boston infrastructure to the hills in and around the city. We will still need to do that. But growing Worcester while shrinking Boston is another smart move to consider. And why stop at just moving the state government? Why keep the city’s population exposed to ever more fierce hurricane- and winter storm-driven flooding when we can gradually move to a nearby city that could absorb quite a lot of our population before reaching capacity? A city acceptably far from the sea and major river systems, and high enough to not have to worry about being permanently flooded out (except, perhaps, in the worst possible scenarios).

 

Anyhow, food for thought. I’d be curious to hear what the WRRB staff—and other policy wonks and urban planners in “Wormtown” (loving these nicknames)—think about my proposal. I make it in earnest, and hope it is taken in the spirit with which I offer it. They can reach me, as ever, at jason@digboston.com.

 

Townie (a worm’s eye [ironic, no?] view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: WHAT GOES AROUND COMES AROUND

former GM Framingham plant

 

Or how tax breaks for fat cats relate to a defeat for Harvard management rats

 

April 26, 2018

BY JASON PRAMAS @JASONPRAMAS

 

“Opportunity” for the few

Gov. Charlie Baker submitted paperwork to the US Department of Treasury last week, according to the Republican, asking the federal government to consider 138 tracts in dozens of Massachusetts communities for inclusion in the new “Opportunity Zones” program—passed in December as part of the Trump administration’s sweeping tax reform legislation.

 

As the name implies, each opportunity zone is a low-income area of an American city or town. According to Next City, acceptance to the program makes such areas eligible to receive investment from “Opportunity Funds”—which are to be certified by the treasury department. The funds “will be required to invest at least 90 percent of their investment dollars into businesses or properties located in designated Opportunity Zones,” and the initiative “allows investors to defer some of their taxes on capital gains in exchange for investing some of their accumulated wealth into the opportunity zones.”

 

This week, MetroWest Daily News looked at tracts chosen for the program in Framingham and Marlborough. In Framingham, “City officials nominated a pair of contiguous neighborhoods on the southeast side of the city, which has struggled to rebound from the decline of manufacturing and the legacy of environmental contamination in the area.”

 

One of those tracts is particularly interesting because it contains “a significant amount of industrial land, including the state prison and the former General Motors plant, which is now the site of Adesa, the vehicle auction house.” And thus encapsulates everything that’s wrong with neoliberalism—the return to 19th-century dog-eat-dog capitalism in which private interest must always outweigh any possible public good.

 

Which is germane to this discussion because the opportunity zone scheme was cooked up by a “bipartisan” (read “neoliberal”) think tank called the Economic Innovation Group—led by a who’s who of Silicon Valley movers and shakers, according to the Los Angeles Times. Napster founder Sean Parker, former Facebook general counsel Ted Ullyot, and a rogue’s gallery of major West Coast venture capital investment house leaders are all part of the organization’s “founders circle.”

 

So it’s absolutely no surprise that the program is essentially yet another tax break for the rich. In a federal tax regime that’s now replete with them—especially after Trump’s ungentle ministrations. More problematic, however, is the fact that the so-called opportunity zones give the rich and powerful even more control over economic development in areas already impoverished by the rich and powerful.

 

Which brings us back to the Framingham tract in question. It houses MCI-Framingham, a medium-security women’s prison with a population that includes a majority of nonviolent offenders. Most of whom are from working-class families, and most of whom would not be there if the state and federal government put less money into the “prison-industrial complex” and more money into guaranteeing economic opportunity for those families.

 

It is also home to the former General Motors plant. Which once employed as many as 5,000 workers in high-paying jobs unionized with the United Auto Workers. Just the kind of jobs that increasingly downwardly mobile working-class families need, if they want to avoid turning to crime to make ends meet.

 

According to the New York Times, the last 2,100 workers were laid off from the GM plant in 1989. And the working families of Framingham and environs have never really recovered since then. Because pols and CEOs and policy wonks can talk all they want about Massachusetts having recovered from the Great Recession of 10 years back. They can claim we’ve achieved “full employment.” But the jobs that working people have been able to get since the destruction of the Bay State’s largely unionized industrial base between the 1950s and the 1990s are not nearly as good as the ones that were lost.

 

Gone also is the social—and therefore political—solidarity that once enabled the local working class to defend and maintain the improvements they won on the job for decades.

 

In its place, we have programs like the “opportunity zones” that help the rich find new and exciting ways to get richer. But that don’t mandate the creation of good jobs for working families, or provide for the democratic control of new enterprises that are created by the people that work in them.

 

Furthermore, as Next City points out, “Opportunity funds could end up raising too much capital without enough deals in the designated census tracts, blunting the impact per tax dollar lost, or they could end up without enough capital raised to make a discernible difference.”

 

Seems likely that the new program will go the way of a similar neoliberal program from the Clinton era: “Empowerment Zones.” Which never produced gains for poor communities that could be tied to the program. Instead lining the pockets of legions of contractors and investors along the way.

 

Harvard University grad union victory

In light of the loss of 5,000 good jobs unionized with the UAW at GM Framingham decades back, it’s extremely ironic that 5,000 graduate assistants at Harvard University just successfully unionized with—you guessed it—the UAW. Big congrats to all concerned.

 

The labor campaign was absolutely necessary because the same neoliberal system that purposely depresses working-class wages and benefits worldwide to increase corporate profits also hurts grad assistants. Harvard is a large employer, and—nonprofit or not—like most large employers it always strives to save money on staffing costs. So it makes perfect sense that a union that was decimated by decades of assaults from auto industry tycoons should get vengeance of a sort by unionizing grad assistants at a ruling-class university that continues to help spearhead the corporate drive to crush global labor power. Grad assistants that—together with various kinds of adjunct faculty—get overused by fully corporatized university management to avoid increasing the ranks of more expensive (and far more powerful) tenured faculty.

 

Naturally, being a teaching or research assistant for a few years is not the same kind of job as the ones lost at GM Framingham. And the fortunes of people with advanced degrees from an elite school are typically much different than those of auto workers that often only had high school degrees. But beyond the improvements that grad assistants will see in their working lives during their short time at Harvard, and the bump that the labor movement will get from their very public victory, here’s hoping that the students will learn to feel genuine solidarity with working families the world over. And move into their professional lives with the determination to help undo the grievous damage that too many of their predecessors did, and continue to do, to the billions of people who don’t control the commanding heights of politics and the economy.

 

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE EXTRA: YASER MURTAJA, PRESENTE!

Cartoon by Mike Flugennock
Cartoon by Mike Flugennock

The killers of the Palestinian journalist must be brought to justice

 

April 11, 2018

BY JASON PRAMAS @JASONPRAMAS

 

Typically, I mainly focus on Bay State issues in this column. But I’ll make an exception this time and stand with my colleagues at the International Federation of Journalists (IFJ) and their affiliate the Palestinian Journalists’ Syndicate (PJS) to protest the killing of Palestinian photojournalist Yaser Murtaja by the Israel Defense Forces (IDF) in the strongest possible terms, and to demand that his killers be brought to justice. I encourage all working journalists and editors to do the same.

 

Murtaja was shot Friday by an IDF sniper near the border of the Gaza Strip and Israel, according to the Guardian. He had been covering one of an ongoing series of Palestinian protests demanding their right of return from Gaza to their families’ ancestral homes in Israel—from which they were driven in the 1947–1948 Civil War in Mandatory Palestine and the 1948 Arab–Israeli War. He was wearing a flak jacket clearly marked “PRESS” in English in huge block letters. According to the press rights group Reporters Without Borders, he was 31, the father of a young son, and one of the founders of the independent news agency Ain Media (“Eye Media”).

 

Based in the Gaza Strip, Murtaja was never able to travel anywhere else even once. Largely because of the difficulties created by the longstanding Israeli military blockade of the territory.

 

The IDF has promised to investigate the killing and the wounding of four other Palestinian journalists the same day, according to the Intercept. Regardless, calls are rising from the global human rights community to charge Israel with war crimes over the use of live ammunition on the “Great Return March” demonstrations. Starting with the 15 unarmed protesters killed and hundreds wounded by IDF snipers at a March 30 border rally of 50,000 Gazans. Followed by nine more killed—including Murtaja—and hundreds more wounded at last Friday’s action, according to Haaretz. Plus more deaths and woundings at other border demonstrations. Fatou Bensouda, prosecutor of the International Criminal Court, issued a statement on Sunday saying the court is considering opening an investigation into both the Israeli actions and the possible use of Gaza civilians as “human shields” by Hamas’ military brigades.

 

The Gaza border demonstrations are expected to continue until May 15—known as Nakba Day (Day of the Catastrophe) to the Palestinians, the commemoration of the ethnic cleansing of their land that took place before and after the Declaration of the Establishment of the State of Israel on May 14, 1948.

 

According to the IFJ, “In a statement, the PJS confirmed that they will pursue action against Murtaja’s murderers in the international forums and courts and that they will intensify their efforts to bring the murderers of Palestinian journalists to international justice. The PJS also called on the UN and all its bodies’ to act immediately and to implement its decisions, specifically the [UN] Security Council’s decision no. 2222, and to take concrete steps to provide immediate protection to Palestinian journalists on the ground.”

 

For up-to-date information on the campaigns to hold Israel accountable on this and related matters, check out the websites of the International Federation of Journalists, Reporters Without Borders, and the Committee to Protect Journalists.

 

And read the main 4.11.18 TOWNIE column AIRLINES SUING, UMASS SCREWING here.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: AIRLINES SUING, UMASS SCREWING

TOWNIE: AIRLINES SUING, UMASS SCREWING

 

Corporate attack on workers rights and a corporate-style attack on UMB by UMA

 

April 11, 2018

BY JASON PRAMAS @JASONPRAMAS

 

If there’s one thing I think people should do every day, it’s read the business press. Because that’s where you see how the world runs. A world that naturally includes Massachusetts.

 

Airlines sue Mass over sick time law

Case in point, Airlines for America—a coalition that includes JetBlue Airways, United Airlines, American Airlines, and several other carriers, according to the Boston Globe business section—sued Mass Attorney General Maura Healey last week over a 2015 law that guarantees sick leave to many Bay State workers. Including airline employees. “Now surely,” you’re all doubtless thinking, “an industry that wouldn’t exist were it not for decades of massive government subsidies couldn’t possibly consider doing anything that might hurt its workers by attacking a government program that helps them.” But no, the airlines are totally doing that. It’s what big corporations always do to their workers. Along with endless union busting.

 

According to the Mass.gov Earned Sick Time page, the law states that most workers “in Massachusetts have the right to earn and use up to 40 hours of job-protected sick time per year to take care of themselves and certain family members. Workers must earn at least one hour of earned sick leave for every 30 hours worked.” It further states that employers “with 11 or more employees must provide paid sick time. Employers with fewer than 11 employees must provide earned sick time, but it does not need to be paid.” Employers can “ask for a doctor’s note or other documentation only in limited circumstances.”

 

The airlines are basically trying to argue—in the fashion of sadly deceased comic Phil Hartman in the role of Unfrozen Caveman Lawyer—that the Mass sick time law “frightens and confuses” them. And that with all the billions of dollars they either gouge out of travelers or simply have the federal government hand them whenever they cry poverty, they can’t possibly figure out how to sync up all their various state, national, and international sick time laws they’ve already handled for decades with the Commonwealth’s more decent law. Despite, you know, computers.

 

Bottom line, they want an exemption from the law to make slightly bigger profits and escape regulation, and they’re suing Healey to get their way. Claiming it’s unconstitutional and shouldn’t apply to airlines. The same thing they did in Washington State in February, according to the Seattle Times.

 

The AG should have fun with this one. But readers can give her a hand by calling up the airlines and their front group and telling them to stop attacking the Commonwealth’s sick leave program.

 

UMass Boston suffers more cuts while UMass Amherst buys Mount Ida College

A couple of related developments in the UMass system over the last several days. First, UMass Amherst is buying the private Mount Ida College in Newton for $37 million, according to WBUR. It plans to use the campus as a base for Boston-area internships and co-ops for its students. The school will also assume Mount Ida’s debt of up to $70 million.

 

The situation is widely viewed as an unfortunate attack on UMass Boston turf by the more “elite,” better-funded, and melanin-challenged UMass Amherst. With UMB faculty, staff, and students; higher ed experts; and the editorial boards of publications from the Boston Globe to the Lowell Sun asking why it’s necessary for UMA to spend big money on a separate suburban campus to connect its students to Boston. Especially given that there’s already the perfectly good but woefully underfunded UMass Boston campus in the city itself. Which could certainly use an injection of tens of millions of dollars from any source of late.

 

Speaking of which, second, UMass Boston is slashing the budget of 17 of its research centers by $1.5 million, including the famed veteran-focused William Joiner Institute for the Study of War and Social Consequences, as part of its attempt to get out from under the $30 million in mostly new construction-related deficit it’s been saddled with by a state government that insists on running its colleges like individual businesses. Rather than branches of a single statewide public service.

 

It’s worth mentioning, as I do on a regular basis, that we need to move the state and nation to the kind of fully public higher education system that many other countries have. Which spends sufficient tax money to guarantee every US resident a K-20 education. And tells private schools like Harvard that they can only remain private if they stop taking public money.

 

That’s the only way we’re going to stop this kind of spectacle. Where two parts of the same state public university system—one, Amherst, that primarily serves middle-class white suburban students, and one, Boston, that primarily serves working-class urban students of color—work at cross-purposes to one another. Amherst with a larger budget, and Boston with a smaller one. Separate and unequal.

 

For the moment, readers can help out by joining me in signing the petition to save the William Joiner Institute at change.org. And those so inclined can protest the Mount Ida College sale to UMass Amherst at the Board of Higher Education meeting on April 24. But I think critical calls and emails to UMass President Marty Meehan will likely be most effective. You can find his contact page on the massachusetts.edu website.

 

Check out TOWNIE EXTRA: YASER MURTAJA, PRESENTE! here.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: MASS REGIONAL TRANSIT AUTHORITIES FACE MAJOR BUDGET CRISIS

RTA bus

 

Gov. Baker’s proposed cuts throw gasoline on raging policy fire

 

February 21, 2018

BY JASON PRAMAS @JASONPRAMAS

 

A quarter-century ago, I lived in Lawrence for a few months. Because it was the closest place to Boston that I could find a cheap apartment on short notice. Unfortunately, I had a low-paying job in the city and couldn’t afford a car. So I took the commuter rail over an hour each way back and forth whenever I had a shift. Then at the end of the day, I was faced with getting to my apartment a couple of miles away from the station. Merrimack Valley Regional Transit Authority (MVRTA) bus service ran near my place. But even in the early 1990s with a state budget that looks more humane in retrospect, it was infrequent at best. And my bus dropped me off a few blocks away from where I lived when it was running.

 

Now that was during rush hour on a weekday. If I got home later than early evening—especially on weekends—MVRTA buses had already stopped running. I moved there in December. And until I moved back to Boston the following March, through what proved to be a very cold winter, I would often get off my train, watch all but a handful of people get into waiting cars and leave, and then begin the long, frozen slog home. Across the Merrimack River, on sidewalks that were mostly unshoveled and roads that were indifferently plowed.


Standing in the middle of Duck Bridge one Sunday night in mid-February during a fierce snowstorm, I experienced a moment of nearly perfect alienation. The scene was completely desolate. No vehicles were on the road. It was pitch black except for the occasional street light with the darker black of largely abandoned textile mills looming in the middle distance. Snow was piling up all around me. The brutal wind off the water cut through my coat. My sneakers were entirely insufficient to the task of keeping me consistently upright—let alone keeping my feet warm and dry. And I remember thinking that if I had slipped and fallen into the river, no one would have the slightest idea of where I’d gone until spring. Because in the era before ubiquitous cell phones or texters, I could not have typed “aaaaaaah” to my girlfriend as I fell. So who would be the wiser?


Fast-forward to this week, and that memory immediately sprang to mind when I read the transportation section of Gov. Charlie Baker’s annual state budget proposal. And discovered that he’s planning to level-fund the 15 regional transit authorities (RTAs) for $80.4 million, according to the Mass Budget and Policy Center, while most Bostonians are focusing on the ongoing fight to keep the MBTA solvent. Authorities like the Merrimack Valley Regional Transit Authority… which is already cutting back bus, van, and Boston commuter service and eliminating that Sunday service I kept missing in the early ’90s. Since level-funding means a budget cut, given annual cost increases. And it’s not looking like the legislature is likely to swoop in to save the RTAs later in our now-normalized austerity budget process.


After all, if the legions of working- and middle-class Bostonians that rely on public transit can’t yet force elected state officials to properly fund the MBTA, the smaller numbers of riders in outlying cities like Brockton, Fitchburg, Lowell, and Lawrence are in even worse straits. Especially when many of them are immigrants who can’t vote.


Yet the need for public transit gets more dire the farther you get from Boston. If you don’t have a car in places like Athol, Greenfield, Holyoke, and Pittsfield, literally your only inexpensive transit option is bus service run by your regional transit authority. Which I’ve already made quite clear is of limited usefulness at the best of times. RTAs don’t go everywhere riders need to go and don’t run many of the times riders need to use them. As I experienced during my brief, unpleasant Lawrence sojourn.


People without cars in the many parts of the state that aren’t reached by the MBTA’s main bus and subway lines are already at a major disadvantage in terms of their ability to access jobs, laundry, shopping, education, social services, daycare, and healthcare in the best of times. If RTA service continues to be whittled away year by year, eventually there will be no public transportation left in many locales. And taking an Uber or Lyft won’t be an option for people that can’t even afford a hike in bus fare. Even while those private transportation services are angling to replace public transit for those that can pay their largely unregulated fares.

 

That is no minor problem—lest readers think that only small numbers of people lack cars in Mass cities outside of the Boston metro area. It’s a major crisis. For example, according to a Governing magazine article looking at car ownership in US cities with a population over 100,000, 19.3 percent of Worcester households and 22.2 percent of Springfield households did not have a car in 2016. Meanwhile, my colleague Bill Shaner at Worcester Magazine just reported that “[t]he Worcester Regional Transit Authority Advisory Board voted to send proposed service cuts to a public hearing after decrying the possible changes as a ‘death spiral’ for the bus system.


He continued, “WRTA officials unveiled several possible measures to bridge a $1.2 million budget gap, due mostly to budget cuts to the RTA system at the state level. The possible measures include routes cut wholesale, cut weekend service, and diminished routes, which would increase wait times between buses.”

 

Both WRTA Board Chairman William Lehtola and WRTA Administrator Jonathan Church agreed that the system would “cease to exist in a few years” if the funding crisis continues unabated.

 

Meanwhile, the Republican reported that Springfield RTA “the Pioneer Valley Transit Authority has proposed a 25 percent across-the-board increase in fares and pass prices and a slate of service cutbacks, all to take force July 1.”

 

So make no mistake, this is a significant escalation in the war on Mass working families by Baker and any legislators that back similar cuts to public transit around the state. Cuts that RTAs have already been struggling with for years. As with the battle to save the MBTA and other public services, the RTAs can only be defended with a concerted fight from their riders. Whose goal must be to increase taxes on corporations and the rich in the Commonwealth, and to change state and local budget priorities to better serve the needs of all Mass residents.

 

Failing that, you’ll see a lot more people walking long distances in inclement weather statewide. And all too many of them won’t be able to escape their “transit desert” like I did. They will simply become more and more isolated. Until they literally disappear. The way I feared doing on a lonely bridge in the depths of a Merrimack Valley winter half a lifetime agone.

 


Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

 

December 12, 2017

BY JASON PRAMAS @JASONPRAMAS

 

Big local corps quiet about huge profits to come from Repub tax scheme… except GE

An interesting WBUR article, “Largest Mass. Companies Are Mostly Silent On GOP Tax Plans,” asked the top 12 corporations in the Commonwealth to comment on the recently passed Republican scheme to transfer vast amounts of money from the working and middle classes to the rich and the corporations they control—euphemistically called “tax reform” in most of the major news media. Unsurprisingly, Bay State business leaders didn’t want to take time away from rubbing their hands together and cackling with glee about all the free money they’re going to get—choosing instead to remain mum for the moment.

 

But WBUR did get a statement out of General Electric after the Senate vote on the tax plan:

 

GE commends Congress and the White House for their commitment to comprehensive tax reform. GE supports the Senate tax reform plan because it would upgrade the U.S. to a territorial tax system, bring rates in line with other countries, and allow U.S. businesses and workers to compete fairly around the world, so it’s the quality of our products that determine whether we win global deals, and not tax differences.

 

No surprise GE would say that, since it will benefit tremendously from the drop in federal corporate tax from 35 percent to only 20 percent. But it will also get to repatriate as much of the lucre it’s been offshoring as it would like at a one-time tax rate of merely 12 percent. And now that the feds are “upgrading” to a “territorial tax system,” the company will make even more money. Why? Because a territorial tax system means that all the profits multinationals sock away in offshore tax havens will be taxed at a rate of zero percent. You read that correctly. Nada. No taxes at all on foreign profits.

 

Currently, companies like GE stash profits in other countries because, although they have been technically taxed on all profits—foreign and domestic—at the base 35 percent rate (basically a total joke since there are so many corporate tax loopholes that big companies like GE actually end up with a negative tax rate some years, but let’s play along for the purpose of this explanation), they are only required to pay those taxes when they “repatriate” the money back to the US. Which has often been never thanks to a complicated system called “transfer pricing” where corporations book profits in low tax countries, and take deductions in the US and other higher tax countries. And then borrow cheap money on the strength of their foreign bank accounts to make more profits.

 

The result will be even more offshoring of both money and jobs by megacorps. Because why would a company like GE not move more of both away from the US if foreign profits are  tax free—without nearly as much of the tricky accounting that’s currently needed to play the transfer pricing game? Just really bad news for Mass workers. And for boosters of the GE Boston deal. And anyone who thinks big companies like Amazon are going to have much incentive to add lots of jobs anywhere in the US going forward.

 

BPDA “PLAN: Glover’s Corner” protested in Dorchester

As the neoliberal capture of the government and the public sector continues apace, earnest technocrats at the Boston Planning and Development Agency (BPDA, formerly known as the BRA) still find it necessary to play the communitarian “public meeting” game when trying to sell bad deals that advance corporate interests to the working families who are all too often the targets of such deals.

 

Communitarianism being the decades-old fad where institutions representing the rich and powerful work hard to make sure that “every constituency has a seat at the table” when they want to do something that will harm those constituencies. But, of course, the power relations remain unchanged. The rich and powerful remain rich and powerful. Everyone else does not. And “the table” isn’t the real table—where bankers, CEOs, and top government leaders meet to make policy decisions happen. Usually behind closed doors. It’s basically a kiddie table where regular people can pretend they have some impact on a process that’s over before it begins.

 

Which is why it’s nice to see that housing activists with the Dorchester Not For Sale coalition decided to crash a recent BPDA transit-oriented public meeting on its “PLAN: Glover’s Corner”—which is slated, among other things, to add hundreds of units of housing that will be mostly unaffordable to current Dot residents.

 

According to the Bay State Banner and the Dorchester Reporter, the Dorchester activists are taking a page from JP and Roxbury housing activists with the Keep It 100% for Egleston coalition who protested the larger BPDA PLAN: JP/Rox—which might ultimately involve thousands of units of new housing—until the city relented and mandated that 36 percent of the new units (and 40 percent overall, including units currently permitted for construction) must be affordable.

 

The definition of “affordable” for the JP/Rox plan area is pegged to percentages of the average median income of the Boston region set by the US Department of Housing and Urban Development (HUD). So, for example, according to an August Spare Change News article, some “affordable” units being rented and sold as part of the 3200 Washington complex are being offered to households making 70 percent of the region’s average median income, and some to households making 100 percent.

 

But JP and Roxbury advocates have continued to protest PLAN: JP/Rox even after it was made official because its definition of “affordable” remains too high.

 

Spare Change continues, “For the Boston metropolitan region, the average median income is just over $100,000, and according to the U.S. Census Bureau, the average household income for all of Jamaica Plain is $76,968. However, households within the plan’s range have an average income of just over $50,000.”

 

According to a March Bay State Banner article, activists three goals for the plan are “to deepen the affordability level on designated affordable housing units so that they are attainable by households making less than $35,000 per year; increase goals for the portion of new housing that’s designated as affordable from 36 percent to 55 percent; and require the conversion of 250 market-rate units into affordable units..”

 

So while their activism raised the amount of “affordable” housing the BPDA planned to offer in the deal from 30 percent to 36 percent, it’s not going to help many people currently living in or near the affected neighborhoods to stay in the area unless the definition of affordable is changed to reflect economic reality. Given that fact, Mayor Marty Walsh’s much-vaunted progress on getting more affordable housing built on his watch is based largely on smoke and mirrors because much of it remains unaffordable to the people who need it most.

 

The Dorchester activists, meanwhile, are demanding that the BPDA accept a six-month moratorium on PLAN: Glover’s Corner, use the extra time to provide more data to the community on the plan, and do things like provide childcare at public meetings to allow more locals to attend.

 

Thus far, the BPDA is blowing off such demands and trying to plow forward without significant changes to its plan. Boston City Councilor Frank Baker, who attended the Glover’s Corner meeting, agreed with the BPDA in a recent Spare Change article, saying “As far as I’m concerned, it’s not a valid request.”

 

Seems the fight for housing justice is far from over in Dorchester.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: UMB DRUBBING, PAWSOX GRUBBING

UMB DRUBBING, PAWSOX GRUBBING

 

University cuts and a (possible) corporate scam just in time for the holidays

 

November 27, 2017

BY JASON PRAMAS @JASONPRAMAS

 

UMass Boston admin lays off more staff, unions push back

The neoliberal war on public higher education continues unabated in Massachusetts as the UMass Boston administration announced the layoff of 36 personnel last week, and a reduction in hours for seven more. According to the Boston Globe, all of them are “staff who clean the school, help run academic programs, work in the student health office, or in other ways support the daily operations of the university. Some have worked there more than 30 years.” UMB had 2,095 employees in 2016, but has cut 130 jobs so far this year. The university serves over 16,000 students.

 

As of this writing, campus unions are planning protests. Hopefully, such actions will ultimately build a political movement capable of operationalizing the prescriptions of the fine report a coalition of UMB “students, staff unions, and faculty” released in September. Entitled “Crumbling Public Foundations: Privatization and UMass Boston’s Financial Crisis,” it lays the responsibility for the budget crisis currently engulfing the university at the feet of the UMB administration, the UMass Board of Trustees, and the state legislature.

 

As well it should. The legislature has been slashing the state higher ed budget since the 1980s. The board keeps raising the tuition and fees paid by students and families to cover the resulting gap. And the UMB administration continues increasing the number of high-level administrators with questionable job descriptions and fat paychecks who somehow rarely face layoffs—despite costing the school far more per capita than each of the low-level employees who keep getting axed of late. All while expanding the campus in ways that don’t always benefit the urban students that institution was built to serve… running up unsustainable debt loads in the process.

 

The report calls for five major reforms that its authors believe would set the campus to rights:

 

  1. UMass Boston should not be required to show a positive net income in its budget. Instead, it should be allowed to make debt payments using the reserves it’s been forced to build up for the last few years—and the Board of Trustees should “release Central Office reserves” to help with those payments. Rather than compelling students and their families to shoulder such costs through ever-increasing tuition and fees.
  2. The UMB administration should engage in an open and transparent planning process with faculty, staff, and students that will “ensure that the campus can continue to provide an affordable and diverse education along with appropriate support services to its students,” review interest and principal payments, and review the rapid increase in high-level administrator expenses.
  3. The UMass Board of Trustees should endorse the Fair Share Amendment that will levy an additional 4 percent income tax on millionaires and spend the money on public higher education, pre-K-12 education, and transportation if passed by binding statewide referendum next year.
  4. The Mass Legislature should cover the cost of rebuilding crumbling campus infrastructure.
  5. The Mass Legislature should annually increase appropriations for public higher education until we are at least on par with the national average based on our state’s wealth.  The Commonwealth is presently at the bottom of the pack for state appropriations for public higher ed.

 

The white paper concludes with a visionary sentiment that’s worth reprinting in full: “In considering these recommendations, we ask that we all—members of the Massachusetts legislature, the UMass Board of Trustees, UMass Boston’s administration, and the larger community of Boston—remember the purpose with which we are tasked. Chancellor John W. Ryan, at UMass Boston’s 1966 Founding Day Convocation, reminded those gathered that ‘we have an obligation to see that the opportunities we offer… are indeed equal to the best that private schools have to offer.’ This is the expectation that the citizens of our Commonwealth have for themselves and their family members when they come to UMass Boston. This is the responsibility that UMB staff, faculty, and administrators take on each day on behalf of our students. This should be what guides the decision of the Board of Trustees and the Mass legislature as we work to address the crisis at UMB.”

 

PawSox Worcester visit: boondoggle in the making?

Meanwhile, in faraway central Mass, my Worcester Magazine colleague Bill Shaner is tracking what could be another big giveaway of local and state money. Seems that the Pawtucket Red Sox—the BoSox Triple A affiliate team—have been courting Worcester for a few months and might be looking to move there in exchange for lashings of public lucre. Shaner reports that multiple sources said that Jay Ash, secretary of Gov. Baker’s Executive Office of Housing and Economic Development, attended a meeting last week between Worcester officials and PawSox bigs. Though “City and PawSox officials both declined to comment on the meeting, or whether or not it took place.” While “Ash’s staff confirmed he was in Worcester Monday but couldn’t say what for.” All I can say for now is that, like some capitalist Santa Claus, whenever Ash appears corporate leaders can virtually always expect a yuuuuge present from the Bay State and any municipal government in range in the near future. So this nascent Woo-town deal is definitely worth watching.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: TAX DELINQUENT, TAX GIVEAWAY

 

Crutchfield sues Mass over online taxes, unions protest Siemens

 

Online retailer tries to duck sales taxes

For a long time, the internet was like the Wild West for online sales. Companies sold products to consumers all over the US, and the feds and many states were slow to tax those transactions. You know, because “innovation goooood” and all that. On Oct 1, Massachusetts finally started collecting its standard 6.25 percent sales tax on internet sales from out-of-state companies with 100 or more online transactions last year. And last week, according to the Salem News, “online car stereo and electronics retailer, Crutchfield Corp., says Massachusetts’ policy violates interstate commerce laws and is therefore unenforceable.”

 

Why? In its legal challenge the company is basically saying: You collect taxes on us, but not on other companies who might do the same business by other means. Virginia-based Crutchfield also says it’s covered by a Virginia law designed to protect businesses in that state from having to pay taxes in other states where the business has no brick-and-mortar presence. Yet the Commonwealth has already argued that under a 1992 Supreme Court decision, having “cookies” stored on consumer’s computers from companies like Crutchfield counts as a physical presence in the Bay State. The Salem News also notes that NetChoice—a group representing online retailers like eBay and PayPal—is arguing “that the Baker administration doesn’t have the authority to tax businesses with no actual presence in Massachusetts.”

 

What’s most fascinating about these developments is the lengths big online retailers will go to avoid paying very standard state taxes (and, of course, federal taxes) in places where they do a significant amount of business. Any corporate victory on this front translates to millions of dollars being effectively stolen from the public that could be used to pay for social goods like education, housing, environmental, and welfare programs. Just what we don’t need.

 

German multinational faces protests over job promises, tax breaks

Walpole is a town with a population of 24,000 at the 2010 Census, but it’s punching above its weight in lavishing tax breaks on the huge German conglomerate Siemens. And area labor unions—led by the Building and Construction Trades Council of the Metropolitan District (Metro BTC)—are not happy. According to Wicked Local Walpole, hundreds of residents and area union members turned out for an Oct 19 protest on Walpole Common to demand that Siemens Healthineers, the goofily renamed healthcare division of the company (formerly Siemens Healthcare Diagnostics Inc.), follow through on its 2016 promises to the community.

 

In March of that year, the Walpole town meeting representatives voted 76-51 in favor of giving tax breaks worth millions between 2018 and 2037 to Siemens—an average savings of 75 percent on its property tax for the 20 years, according to the Brockton Enterprise—in support of the $300 million expansion of its existing plant there. The company said it would add 400-700 “permanent jobs” to its existing workforce of about 700 by 2026.

 

But at the recent rally, Walpole Selectman David Salvatore told the crowd that Siemens has “only hired 32 Walpole residents” to date out of the 170 jobs the company says it has created since the deal was cut. In an earlier Boston Globe article—released just after the town meeting vote on the agreement—he had provided more background: “The benefits of this project are regional, and the burden is local. Of the 620 current employees at the Siemens plant, a mere 33 are Walpole residents; most are not even from Norfolk County, and 83 are from Rhode Island.” So, Walpole is putting a bunch of money on the table for a big company that has thus far only created about 60 jobs for town residents.

 

Union leaders, according to an Oct 16 press release, are angry that Siemens has not committed to using union labor to build the 300,000-square-foot expansion of the factory or to hiring more local workers—especially since it’s getting such a large tax break. Their pressure campaign is calling for “slowing down the slated expansion for further community input and review.” One would think that a company with a market capitalization of $109.8 billion in May, according to Forbes, can afford to work things out with its critics. But it will be interesting to see how the situation plays out, regardless.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: A WORM’S EYE VIEW OF THE MASS POWER STRUCTURE

Students at rally at Boston City Hall by NewtonCourt (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Students at rally at Boston City Hall by NewtonCourt (Own work) [CC BY-SA 4.0], via Wikimedia Commons

From the guy that brings you Apparent Horizon

October 18, 2017

BY JASON PRAMAS @JASONPRAMAS

 

The rich and powerful interests that control Massachusetts politics and the state economy have their fingers in every conceivable pie. So numerous are their projects that it’s difficult for most news outlets to keep track of them, let alone cover them all. Yet it’s critical for our democracy that they be covered. Which is why I’m launching Townie—a regular news column that will provide short takes on all the elite wheeling and dealing that most people never hear about.

 

Business Organizations Sue to Down “Millionaire’s Tax” Referendum

In an era when taxes continue to be slashed for wealthy people and corporations as government social programs are starved for funds, one would think that the Fair Share Amendment (a.k.a. “millionaire’s tax”) proposed by the Raise Up Massachusetts coalition of religious, labor, and community organizations would be a no-brainer. The idea is slated to be put in front of Massachusetts voters as a binding referendum question in November 2018. If passed, it would amend the state constitution to add a 4 percent tax on top of the Bay State’s infamously inadequate 5.1 percent flat income tax for all households earning $1 million or more. The money collected will be mandated to fund public schools, transportation, and road maintenance. All sectors that really need the money. And best of all, only 19,500 families would have to pay in 2019 if the tax goes into effect—0.5 percent of all filers.

Well apparently any tax is a bad tax in the eyes of the Commonwealth’s “business community.” No matter how many people it would help, and how painless it would be for the tiny number of 0.5 percenters. So, according to an Associated Industries of Massachusetts (AIM) press release,  the leaders of five pro-corporate organizations are trying to torpedo the referendum before it can be voted on by filing a lawsuit against it at the Supreme Judicial Court. The plaintiffs are: Christopher Anderson, president of the Massachusetts High Technology Council, Inc. (MHTC); Christopher Carlozzi, Massachusetts state director of the National Federation of Independent Business (NFIB); Richard Lord, president and chief executive officer of AIM; Eileen McAnneny, president of the Massachusetts Taxpayers Foundation (MTF); and, Daniel O’Connell, president and chief executive officer of the Massachusetts Competitive Partnership (MACP).

They claim that the referendum language is “riddled with constitutional flaws,” with the MTHC’s Anderson remarking that “Amending the Constitution to achieve taxing and spending by popular vote is just a terrible idea, and could undo much of the good work that Massachusetts has done in terms of creating a successful economic climate.” But no matter what kinds of arguments they try to make, it seems like what they’re most afraid of is democracy. Let’s see how far they get with the SJC.

 

About That Opioid Epidemic…

More proof that the rising number of deaths from opioid abuse has more to do with corporate greed than any personal failings of individuals suckered into addiction by pliant doctors colluding with pharma sales reps. And also that those few drug companies that pay any penalty at all for their role in destroying communities across the state, get little more than a slap on the wrist. According to a press release by the office of Mass Attorney General Maura Healey, “An opioid manufacturer will pay $500,000 to resolve allegations that it engaged in a widespread scheme to unlawfully market its fentanyl spray and paid kickbacks to providers to persuade them to prescribe the product…  Insys Therapeutics, Inc. misleadingly marketed Subsys, a narcotic fentanyl product that is sprayed under a patient’s tongue.” The money will be used to “help fund the AG’s prevention, education and treatment efforts.”

Fentanyl is a synthetic opioid that is 30-50 times more powerful than heroin. The company claimed its spray version of the drug was useful for treating “minor” pain in non-cancer patients—despite the fact that the FDC had only approved the drug for use in more severe pain in cancer patients. It then pushed its sales staff to give kickbacks to doctors in the form of “fees paid to speak to other health care providers about the product.”

 

Boondoggle in Progress?

When a public college gets involved in land deals, it’s definitely worth keeping an eye on. Especially when that college is UMass—a troubled multi-campus institution whose leadership would rather engage in property speculation than fight the legislature for more money for public higher education.

In 2010, the school’s independent development wing, the UMass Building Authority (UMBA), bought the former Bayside Expo Center property after its owners went into foreclosure. According to the Dorchester Reporter, in August, the UMBA issued “a Request for Information (RFI) as it seeks out ideas for the ‘highest and best use’ of the former Bayside Expo Center site on Columbia Point in Dorchester with an eye toward transforming the 20-acre site into a ‘modern-day Harvard Square.’”

Last week, the newspaper reported that 16 developers have responded to the university’s request, including: Accordia Partners; American Campus Communities; Beacon Capital Partners; Bracken Development; Capstone Development Partners LLC & Samuels & Associates; Corcoran Jennison & BTUHWF Building Corp; Core Investment Inc.; Hunt Development Group, LLC & Drew Company Inc.; The HYM Investment Group, LLC; LendLease; Lincoln Property Company; Lupoli Companies; Rhino Capital & Ad Meliora; SKANSKA; University Student Living; and Waterstone Properties Group Inc. The Reporter says the UMass Building Authority “hopes to leverage public-private partnerships toward the massive mixed-use project.” Which usually means big public giveaways to corporations. One way or the other. Stay tuned.

Townie is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.