22 May 2009

Revenue Gap Threatens New Britain Municipal Budget

It's a year when local and state governments are struggling with falling tax revenues and a severe economic downturn. New Britain is facing all of those struggles plus one more potential hole that could break the city budget in the new fiscal year.

The problem? Mayor Stewart's proposed $216.3 million estimate, now getting scrutiny by the Common Council, has added millions of dollars of revenue that may not exist at all.

The Mayor's numbers for the sale of real property includes a $3.5 million line item, an increase of $3 million over the Board of Finance's $500,000 estimate. The source of the $3 million has been reported to be the city's sale of the former Pinnacle Heights public housing project to Centerplan development company.

Back in March Mayor Stewart told the Herald: "It’s still up in the air but it’s because of the major change in the economy. Unfortunately, that’s something none of us can control. However, we can work to make sure the deal goes through eventually.”

(Democrats questions Pinnacle Heights...)

At issue is whether the $3 million in property revenue and perhaps millions more booked by the city's finance department for the sale of property in previous years are for real, or based on any solid promises to give by the buyers.

The Common Council, in addition to its line by line review of the budget with department heads, needs to ascertain the status of the Mayor's revenue estimates, particularly with regard to sale of property, for a true picture of the city's finances. As the June budget deadline approaches, there are millions of dollars being used to balance the city budget with nothing so far to back it up.

Time is running short on adopting a municipal budget by mid June. It's time for the Mayor to lead, not mislead the public on whether those property sale revenues can be counted on before June 30th.

No one can blame anyone at City Hall for a bad economy but City Hall has an obligation to tell the truth -- even if that truth is bad news.

09 May 2009

Thinking Globally Today: Buy Fair Trade

If you're shopping this weekend for Mother's Day, looking for a graduation gift or just want a latte, there are ways to strike a blow for economic justice and sustainable development.

Saturday May 9th is Fair Trade Day around the globe. It's a weekend filled with all sorts of events -- more in Canada and Great Britain than the U.S.-- that celebrates alternative consumption wherein consumers of the developed countries pay more for coffee, chocolate and other commodities and goods than they would in the mass consumer market.

Buying "fair trade" chocolate or another certified fair trade product ensures that the producers (small farmers and artisans) in under developed and impoverished countries receive a living wage and fair return. In the case of chocolate, it gives you assurance that child slaves didn't harvest the cacao beans that find their way into mass market candy bars. Yes. The practice goes on in strife-torn Cote 'd Ivorie to this day.

My own interest in the subject stems from an unfinished thesis -- "The Market Potential of Fair Trade Cocoa" -- that assesses how the fair trade movement can make a difference in a new era of globalization when the gap between rich and poor still grows.

During the 1990s a movement of religious, civil society groups and environmental and human rights activists spawned and supported these alternative structures that attempt to end the inequities of the market for hundreds of thousands of small to medium-sized farmers. The movement which first gained notoriety in the ubiquitous coffee industry has accelerated into chocolate, bananas and other commodities of value from less developed countries.

The unequal exchange, of course, is nothing new. Colonialism is one long chain of exploitation over several centuries. The more you look into it, the more you realize that the new globalization aptly described by the New York Times' Tom Friedman in his books hasn't ended the exploitation and may be extending it into the 21st century. The transfers between the small producers of tropical crops and the end users in developed countries can be as as inequitable and exploitative as ever.

One of the good resources for this movement may be found at Equal Exchange. While fair trade sales have grown exponentially over the last decade, their percentages as measured against the mass market are in the single digits. But the movement, however limited, does show a way to reduce poverty and provide living wages one farmer and one coop at a time.

So if you are feeling sufficiently guilty, or just want to strike a small blow for economic justice, here are three ways to help on Fair Trade Day locally:

* Get your mother a woven bag from Peru or a necklace from Sri Lanka at Ten Thousand Villages (there's a store in West Hartford)

* Pick up a box of fair trade certified chocolate or coffee at an organic food store or even the supermarket where they can be found now that corporations are finding there are some profits to be made from niche markets.

* Get a latte or cappuccino at Dunkin Donuts which uses fair-trade coffee for all of its brews that aren't just a cup of joe.

29 April 2009

Getting Specter's Vote: Promise Him More Earmarks

The pundits are making much of Senator Arlen Specter's defection to Democrats as proof that a "moderate" Republican can't survive in the GOP; that it puts the Senate Democrats on the verge of that 60-vote threshold needed to cut off debate and move legislation if the cagey Specter goes along. Politically, it clears the way for Specter to skip out on a difficult if not impossible primary. Unlike Connecticut where the "independent" Joe Lieberman put himself on the November ballot after losing the Democratic primary in 2006, Pennsylvania has a sore loser law that would probibit Specter from running on a third line.

Despite all the national implications and the rightward drift of Republicans, don't look for Specter to mimic Lieberman's self-serving pleas for bipartisanship. Specter's calculated move has a lot more to do with "bringing home the bacon" via Congressional earmarks -- something he is a master of in his role as ranking member of the Appropriations Committee. A recent Washington Post story "If 'Earmark' is a dirty word, Pennsylvanians must be blushing" confirms how prolific Specter is at federal largess. A free ride with the Democrats could put Specter in the majority and add clout to his ability to underwrite his annual wish list from back home. Small wonder Specter didn't leave the Republican caucus earlier over John McCain's hammering away at earmarks, be they good or bad pork.

If Harry Reid really needs a vote from Specter, he already knows the way forward will be to serve up a few more earmarks for the newest member of the Democratic caucus.

21 April 2009

Not What Everyone Wants To Hear From CCSU Campus 10 Years after Columbine

"Gun fight at CCSU" blares today's front-page headline in the New Britain Herald.

The story by Jennifer Abel reports on CCSU's Riflery and Marksmanship Club joining a national "Empty Holster Protest" that advocates for the right of students to bear arms on the campus. The protest springs from a national group calling itself "Students for Concealed Carry on Campus".

The student club's president, Sara Adler, said she didn't know why the national group picked April 20th to launch a campaign for students to be allowed to pack a revolver for personal protection. "They didn't choose last week because it was the anniversary of Virginia Tech," said Ms. Adler, referring to the deadliest school shootings in history. Timing must be everything. Instead, the arms on campus protest was launched on the 10th anniversary of the 1999 Columbine High School massacre. There was no official reaction from CCSU about the protest.

The good news is that CCSU is likely to remain a gun free zone and the Riflery and Marksmanship Club are taking their protest to a shooting range off campus Saturday.

08 April 2009

Stewart's double standard on state budget priorities

Mayor Tim Stewart has lashed out at New Britain's all Democratic legislative delegation for reductions in local aid made in a Democratic state budget plan presented last week.

Stewart, facing the prospect of higher property taxes in a bad economy, delivered a "broadside" that takes aim at State Rep. John Geragosian (D-25), the House appropriations Chair, and the entire delegation for a proposed reduction in state aid from casino revenue.

Gambling dollars, originally sold as a means of supporting education, have become another component of state aid to cities and towns since a portion of income from the slots started coming in the early 1990s. The casino revenue is another form of payments in lieu of taxes since the two tribes with casinos are considered sovereign under federal law.

In a statement released this week Stewart takes issue with a reduction in gambling aid in a Democratic plan that addresses a confirmed $2.7 billion shortfall in Rell's original budget proposal presented last February. "Stewart said he was extremely disappointed upon learning the proposal would mean a reduction of $865,000 in state funding for the city," according to the Herald's coverage.

Stewart's complaint, however, rings hollow when you compare his response to the Democratic budget plan with his effusive praise of Governor Rell's budget. In a joint statement last month Stewart and Bridgeport's Democratic mayor, Bill Finch, praised Rell's budget for not reducing allocations for schools under the Educational Cost Sharing (ECS) formula.

What Stewart and Finch forgot to mention was that most other forms of state aid to their cities was cut by substantial amounts in Rell's proposed budget. With her balance sheet more than $2 billion out of whack, you would think Rell could have preserved other forms of local aid. Rell, for example, reduced PILOT funds (payments in lieu of taxes for CCSU, hospitals and state agency property) by $1.6 million. Overall, Rell's numbers give New Britain 2.2% less by reducing PILOT, casino, capital improvement and town aid for roads, not to mention elimination of state services that benefit city residents.

The Mayor conveniently ignores the features of Rell's plan that would severely compromise New Britain's ability to deliver essential services. And Stewart, a Republican, has shown no inclination to ask his Republican Governor to work for a fairer deal for the city.

The Democratic legislative delegation remains a favorite target of Stewart's derisive comments and partisan charges. It's a refrain all too familiar for Stewart who has sniped at legislators in prior years. For all of Stewart's years in office, the delegation and Legislature took on Rell and significantly upped state aid to the city when the economy was better and state revenues weren't dropping off a cliff. Stewart has been the chief political beneficiary of using state aid to hold the line on property taxes thanks to the lawmakers he is so quick to criticize.

A comparison of Rell's proposed budgets and those adopted through the Legislature has a consistent outcome: state aid amounts would have been a lot worse for New Britain had Governor Rell prevailed in the last state budget. And they would be a lot worse for New Britain this year if Tim Stewart's friend in the corner office of the State Capitol has her way.

The reality of this budget cycle, as one state lawmaker put it, is that the Governor and Legislature have "to pick their poison" to balance the budget and maintain services. Stewart's "blame game" tactics are predictable. But given the severity of the budget crisis, it would be a good time for the mayor to set aside partisan sniping and work cooperatively with the delegation. Time is running short as the city and state face a June deadline to adopt budgets for the fiscal year that begins on July 1.

26 March 2009

Why disinvesting in the local community college hurts

The state deficit problem is jeopardizing the state's educational and social safety net resources -- what the Governor and Legislature would call "core" services.

Bristol Press' Jackie Majerus tells a story in today's local papers that can be replicated thousands of times across the state.


Chipping away at schooling - The New Britain Herald News : New Britain, Conn., and surrounding areas (newbritainherald.com)

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23 March 2009

Does New Britain Hospital Figure In Hartford Hospital's Takeover Plans?

The Hospital of Central Connecticut (HOCC), better known in these parts as New Britain General, has been more than an interested bystander in the debate over the future of John Dempsey Hospital at the University of Connecticut Health Center and its possible takeover by Hartford Hospital.

Recent press reports confirm that all area hospitals are concerned about where major medical facilities will be located and what institution or combination of institutions will control them.

Current legislation to build a new John Dempsey is facing dwindling chances because of its $475 million price in a bad recession. Gov. Rell withdrew support and the Legislature is facing some daunting fiscal issues that suggest this is not the year for any new initiatives. If ever built, a new Dempsey would then become part of the Hartford Hospital system.

With everyone's eye on the state-financed hospital bill, however, there is unconfirmed but growing speculation in New Britain that New Britain General campus itself may be the takeover target of a revised Hartford Hospital plan. The New Britain Hospital, a comprehensive hospital with just over 400 beds, is minutes away from UCONN's Dempsey teaching hospital that has over 200 beds. It would be a bigger and, in some ways, more useful acquisition for teaching and the delivery of medical care under the Hartford Hospital system.

HOCC's New Britain General is one of New Britain's largest employers with deep and longstanding ties and relationships in the community. Whatever the merits of mergers and consolidations in the hospital industry, a possible loss of local control and governance may be unsettling to many residents and the health care professionals who serve them.

If the speculation turns real, the community needs to be brought into the conversation sooner rather than later.