Worcester County Freedom Trail

As if the assault on American’s freedom and capitalism wasn’t bad enough, it just got worse. The Obama administration has several formerly private sectors on tinder hooks waiting for more bailout money. The Treasury Secretary is now resorting to blackmail to get CEOs from these companies to resign (see story about Wagoner at GM). And now, hot off the press, Rep Barney Frank is determined to make the government responsible for setting EVERYONE’s salary in the new Pay for Performance Act of 2009:

Now, in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the “Pay for Performance Act of 2009,” would impose government controls on the pay of all employees — not just top executives — of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.

The purpose of the legislation is to “prohibit unreasonable and excessive compensation and compensation not based on performance standards,” according to the bill’s language. That includes regular pay, bonuses — everything — paid to employees of companies in whom the government has a capital stake, including those that have received funds through the Troubled Assets Relief Program, or TARP, as well as Fannie Mae and Freddie Mac.

The measure is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds.

The Pay for Performance Act of 2009 will start with companies who’ve accepted bailout money. But don’t be surprised when it spreads its wings to all private sector companies.

At this point, we would do well to heed the words of Russian Prime Minister Vladimir Putin’s at the opening ceremony of the World Economic Forum in Davos, Switzerland, in January 2009. From the Wall Street Journal:

Esteemed colleagues, one is sorely tempted to make simple and popular decisions in times of crisis. However, we could face far greater complications if we merely treat the symptoms of the disease.

Naturally, all national governments and business leaders must take resolute actions. Nevertheless, it is important to avoid making decisions, even in such force majeure circumstances, that we will regret in the future.

This is why I would first like to mention specific measures which should be avoided and which will not be implemented by Russia.

We must not revert to isolationism and unrestrained economic egotism. The leaders of the world’s largest economies agreed during the November 2008 G20 summit not to create barriers hindering global trade and capital flows. Russia shares these principles.

Although additional protectionism will prove inevitable during the crisis, all of us must display a sense of proportion.

Excessive intervention in economic activity and blind faith in the state’s omnipotence is another possible mistake.

True, the state’s increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent.

The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation.

In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.

Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.

And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing.

I was doing a little homework in preparation for the upcoming Worcester Tea Party Rally on April 15th (Lincoln Square, 4-6pm) when I ran across these great thoughts about taxation and limited government on the American Solutions web site.

Well said!

Limited, Effective Government
Government in the United States was designed to serve the interests of the people, not the government. This means that government must realize it does not own the money it spends – that money belongs to the people, who have chosen to tax themselves and offer some of their hard earned resources to government to do very specific and enumerated tasks with it. Our tax policy should reflect the limited nature of the U.S. government.

Work Ethic
Good tax policy rewards work and does not punish it. Our national prosperity depends on the self-motivated actions of purposeful individuals, and to place excessive burdens on productive and hard working individuals through tax policy is a recipe for disaster.

Prosperity
Because government exists to serve the people, rather than people existing to serve the government, our tax policy must recognize the fundamental importance of increasing prosperity. This means that taxes should be kept low and structured to maximize economic growth and efficiency. Individuals are ultimately the best judges of how best to live their lives, and taxation systems must never deprive them of their unalienable right to pursue their own happiness.

We have a right to privacy, contrary to what many of our elected officials think. That’s why I’ve never been a fan of the traffic cameras that have been placed around the city. For all City Manager Michael O’Brien’s talk about safety, you know darn well those are there to eventually be a source of revenue.

Thanks to Brad for pointing us to this in the Wall Street Journal:

The village of Schaumburg, Ill., installed a camera at Woodfield Mall last November to film cars that were running red lights, then used the footage to issue citations. Results were astonishing. The town issued $1 million in fines in just three months.

But drivers caught by the unforgiving enforcement — which mainly snared those who didn’t come to a full stop before turning right on red — exploded in anger. Many vowed to stop shopping at the mall unless the camera was turned off. The village stopped monitoring right turns at the intersection in January.

Once a rarity, traffic cameras are filming away across the country. And they’re not just focusing their sights on red-light runners. The latest technology includes cameras that keep tabs on highways to catch speeders in the act and infrared license-plate readers that nab ticket and tax scofflaws.

Cities and states say the devices can improve safety. They also have the added bonus of bringing in revenue in tight times. But critics point to research showing cameras can actually lead to more rear-end accidents because drivers often slam their brakes when they see signs warning them of cameras in the area. Others are angry that the cameras are operated by for-profit companies that typically make around $5,000 per camera each month.

Municipalities are establishing ever-more-clever snares. Last month, in a push to collect overdue taxes, the City Council in New Britain, Conn., approved the purchase of a $17,000 infrared-camera called “Plate Hunter.” Mounted on a police car, the device automatically reads the license plates of every passing car and alerts the officer if the owner has failed to pay traffic tickets or is delinquent on car taxes. Police can then pull the cars over and impound them.

City leaders have generally maintained that while revenue is a welcome byproduct of traffic citations, the laws are in place to improve public safety or reduce accidents.

But a study in last month’s Journal of Law and Economics concluded that, as many motorists have long suspected, “governments use traffic tickets as a means of generating revenue.” The authors, Thomas Garrett of the St. Louis Fed and Gary Wagner of the University of Arkansas at Little Rock, studied 14 years of traffic-ticket data from 96 counties in North Carolina. They found that when local-government revenue declines, police issue more tickets in the following year. Officials at the North Carolina Association of Chiefs of Police didn’t respond to requests for comment.

I heard Rep Jeff Perry (R-Sandwich) give a speech right before WTKK talk show host Michael Graham the other night. Michael, as expected, was superb. But I hadn’t heard Jeff speak until that night. I must say, he was truly inspirational. So when I saw this tidbit from him today, I thought it was worth sharing.

From Rep Jeff Perry on TheCapitolViewLive.com:

It is that time of year again. The Massachusetts Legislature is about to begin our annual budget debate on Beacon Hill. While Governor Patrick and several liberal legislators are suggesting that the only way to solve our current fiscal situation is via new or increased taxation, the fact remains that the State budget is full of earmarks and special interest spending and we have seen very little reform. Taxes aren’t the solution to this economic situation.

Rather than focus on additional taxes, in this recession, government should be lowering taxes. It is Economics 101 that when government collects fewer taxes from the citizens, the additional money is put into the stream of commerce. This will stimulate economic activity, which leads to higher sales and employment tax collections and less people dependent on government programs and services. This is exactly the logic of the federal government lowering interest rates or sending everyone a rebate check when the economy slows down.

The Majority Party on Beacon Hill does not agree with such a proven economic theory and has proposed more than a dozen new or increased taxes. The most widely discussed has been Governor Patrick’s proposed 27-cent increase in the state gas tax. This would give us the highest such tax in the nation, at a total 50.5 cents of taxes per gallon. An increased gas tax will hurt those who least can afford it. Many folks of low or modest income are high consumers of gasoline and would bear the brunt of this increase.

In a direct assault to the tourism industry, Governor Patrick has revived his proposal to raise the meals tax and the hotel taxes. While tourists would be paying a portion of such increases, we all go out to eat and the psychological impact on the restaurant and hotel businesses is potentially devastating. If the message to would be visitors is that Massachusetts is raising our gasoline, meals and hotel taxes, it is only logical many would consider other vacation destinations.

Other ideas of our tax-happy Governor include increasing Registry of Motor Vehicles fees. Governor Patrick is proposing to “update and consolidate” fees at the Registry to raise over $75 million in new revenue (taxes). The Governor has also proposed the sales tax exemption be eliminated on all alcohol, candy and sweetened beverage purchases. This idea would raise over $121 million to fund the growing size and scope of state government.

Not to focus his ideas on just alcohol, Governor Patrick also wants to add a new 5-cent deposit on noncarbonated drinks, including water, flavored water, coffee-based drinks, juices and sports drinks. This tax would raise $20 million annually as the state gets to retain the money for uncollected bottle deposits. We have also heard talk about vacation home rental taxes, higher income and sales taxes, and let us not forgot about those toll increases.

Instead of increasing taxes, I believe by putting more money into the hands of the hardworking American people, history shows that we see more people saving for their future needs (thus less need for government entitlements) and investing or spending into the stream of commerce (to stimulate our businesses and create employment). It is perhaps an overly obvious point, but one always worth pointing out, every time we get someone off a government assistance program and into a job, we gain in three distinct ways. First, government no longer has to subsidize the unemployed worker with unemployment or welfare benefits. Secondly, that same person is now a taxpaying contributor to government via their payroll taxes, sales taxes and social security contributions. And thirdly, and perhaps most importantly for the long-term, this individual is now a productive member of society with a sense of self-worth and pride.

If taxes are the answer to our slow economy, it should be to lower them and let the American people stimulate the economy. Government does not need or deserve any additional tax revenue. The well publicized ethical and patronage problems within state government need to be corrected rather than additional taxation of the hard working people of Massachusetts.

I learned yesterday that FedEx said they will cancel a $3.5+ billion order for Boeing jets if President Obama signs the “card check” legislation. This bill is a desperate attempt by unions to reverse their declining numbers. But it will add significant costs for businesses if it passes. Read the US Chamber of Commerce’s analysis.

From the Wall Street Journal:

“It is exceedingly unlikely that we would purchase those airplanes” should Congress change the law, said FedEx spokesman Maury Lane. The legislation could cripple the company and eliminate the need for the extra planes, Mr. Lane said.

Now here’s a real life story from Gov Mitt Romney about how card check” can destroy. He fought the unions on this when he was our Governor. Governor Deval Patrick couldn’t wait to approve the legislation. Now there’s a big problem:

In 2006, my last year as governor of Massachusetts, I vetoed a card-check bill that allowed public workers to organize if a majority signed union authorization cards as opposed to casting a traditional secret ballot. The veto was a gain for the rights of employees and employers to a fair election, but the victory was short-lived.

After I left office, organized labor had another run at replacing the secret ballot with a card check. With the support of Democrats in the legislature, that same bill I had vetoed was passed again in 2007 – and my Democratic successor signed it into law. What happened next is a cautionary tale for Congress as it moves toward a vote on national card-check legislation.

With this powerful new tool, for the first time ever in Massachusetts, a charter school was unionized. One reason so many parents want their children in charter schools is precisely because they operate free of union contracts, so that when administrators want to try something new, they can implement it quickly.

For this, charter schools are fiercely resented by teachers unions as a competitor to failing public schools. Charter schools use a merit system, rewarding teachers according to results in the classroom. They don’t have complicated work rules that smother creativity, nor are they burdened with termination rules that make it almost impossible to dismiss an incompetent teacher.

The union drive started last year when the American Federation of Teachers met with a small group of teachers from the Conservatory Lab Charter School in Boston. Throughout the summer, they worked behind the scenes to sign up a majority of the 20 teachers at the school. Administrators learned of the successful organizing effort only after the decision to unionize had been made. For parents who may have liked the idea of a union-free school, there was no chance to be heard.

Not surprisingly, the chairman of the school’s trustees is worried that a collective bargaining contract will be loaded with so many workplace restrictions that it will make it harder for the school to fulfill its mission to experiment with new ideas.

Unfortunately, these kinds of underhanded power plays are what we can expect across the nation if card check becomes the law of the land.

Here’s how Governor Deval Patrick is planning on using the state’s federal bailo…I mean “stimulus” money. I’d like to know what “safety net programs” are. And I can see the teachers unions are very happy today. I’m not sure how $2B to the already well-funded education dept stimulates the economy in the short-run (the whole point of the “stimulus” package). But smarter minds than mine are certainly hard at work on the issue. As long those minds don’t include the Aloisi woman who spent the last 6 months sitting in an empty office!

From State House News Service:

State officials have long estimated that Massachusetts would receive between $6 billion and $9 billion in federal stimulus dollars. Since the passage of that bill on Feb. 17, Massachusetts officials honed in on an $8.7 billion take. Officials warn that, because regulations on this funding have not yet been handed down from the feds, many of the dollar figures are subject to change. Here is a breakdown of the funds, as anticipated by the Patrick administration:

Clean energy: $482 million
Education: $1.955 billion
Housing – $430 million
Labor and workforce: $90 million
Public safety: $71.7 million
Safety net programs: $3.572 billion
Technology and research: $1.295 billion
Transportation: $809 million

In a separate category, Massachusetts residents will receive payroll tax benefits, and municipalities will be offered the chance to sell low-interest and no-interest bonds expected to amount to $5.294 billion.
Other stimulus expenditures for Massachusetts, which fall within the aforementioned broader categories, are expected to include:

$52 million for drinking water projects
$134 million for clean water projects
$1.73 million for diesel emissions reduction
$3.2 million to repair leaky underground storage tanks
$2.5 million for brownfields
$20 million to train workers to audit energy consumption on new weatherization projects

Massachusetts is also set to receive an unspecified portion of $125 million for coastal and marine habitat restoration, $600 million for superfund site cleanup and $589 million for national park construction.

Now I see why President Obama felt he needed to make a highly visible trip to California to, among other things, appear on Jay Leno. He was trying to do everything he could to distract us from what was going on behind the curtains. On Wednesday, the Federal Reserve announced it will print $1 TRILLION – get this – to pay the US Treasury for its enormous debt (aka the US government went to its money tree and plucked a monstrous amount to pay for its own overspending ways on the bailouts).

Huh?!? Are they nuts? That immediately devalues the current dollar and prices are going to shoot up all over the place.

I’m thinking Congressman Ron Paul has it right. It’s time for the Fed to go. Or at least let’s pass H.R.1207, The Federal Reserve Transparency Act of 2009.

From CBS: Inflation fears grow after Fed prints $1.2 trillion

And now the spin from the NY Times: Fed to buy $1 trillion in securities to aid economy

A great summary of this atrocity from Glenn Beck:

And Congressman Ron Paul on the Fed:

Nice to see the Republican Party moving all over the state this spring. First the Hardship Listening Tour — Gov Deval Patrick doesn’t seem to want to listen, so the Republicans on Beacon Hill are giving the voters a voice.

And now, coming soon to a town near you…one of six regional MassGOP Grassroots Forums to rebuild and unify the party from the bottom up. The goal is to bring together people from across the Commonwealth to share their ideas and thoughts on how to elect more Republicans, organize at the local level, and work collaboratively on grassroots initiatives.

As part of these Forums, the Massachusetts Republican Party is launching a Charitable Service Program. Attendees are asked to bring an item to be donated to the local chapter of Big Brothers Big Sisters (BBBS).

MassGOP Chairman Jennifer Nassour said:

I invite all Republicans, independents, and Democrats interested in switching parties to take part in the rebuilding of our party. I believe strongly that our party is the only one with a commitment to lowering the tax burden on the middle class and small businesses, restoring accountability and transparency to government, and ending a broken system that relies on new revenue without a commitment to reform. We hope you will attend at least one MassGOP Grassroot Forum to help us move Massachusetts forward!

Below is the schedule. Contact Kaitlyn Greeley with questions: kgreeley (at) massgop.com

Wednesday, March 25th, 7pm-9pm
The Justin Morgan Auditorium, 2nd Floor
Municipal Office Building
26 Central Street
West Springfield

Attendees are asked to bring games and puzzles or arts and crafts for BBBS.

Saturday, March 28th, 10am-12pm
Plymouth Memorial Hall
83 Court Street
Plymouth

Attendees are asked to bring games and puzzles or arts and crafts for BBBS.

Saturday, March 28th, 1pm-3pm
Elks Lodge
4500 North Main Street
Fall River

Attendees are asked to bring games and puzzles or arts and crafts for BBBS.

Monday, March 30th, 7pm-9pm
The Endicott Estate
656 East Street
Dedham

Attendees are asked to bring school supplies or books for BBBS.

Monday, April 13th, 7pm-9pm
Memorial Hall Library
2 North Main Street
Andover

Attendees are asked to bring games and puzzles or books for BBBS.

Wednesday, April 15th, 6pm-8pm
PNI Club
290 Millbury Street
Worcester

Attendees are asked to bring school supplies, books, or arts and crafts for BBBS.

Sponsored by the Republicans on Beacon Hill, the first of a series of events called the “Hardship Listening Tour,” brought a standing room only crowd to Auburn Monday night. Reps. Paul Frost, George Peterson, and Karyn Polito listened carefully and promised to bring the “no new taxes” message back to Beacon Hill.

Governor Patrick, take note — the people of this state can not afford higher taxes. It’s time you start living within our means.

Watch the news report from Channel 5 Boston.

Watch the full, two hour long hearing on video.

This story is just too horrid not to reprint in full. Gov Deval Patrick, who campaigned on reform and lowering taxes, is simply lining Beacon Hill with people who know how to game the system. In the case of new Transportation Secretary James Aloisi, his games cost taxpayers more than just his salary. Aloisi played a critical role is burying the Mass Transit Authority in Big Dig debt that was far beyond what we could afford. Thus the recent increase in tolls and the call for a new 19 cent per gallon tax. Read the stories:

December 2006
Shortly after being elected as Governor, the Boston Herald reported that Deval Patrick is looking to appoint James Aloisi as Transportation Secretary: After months of decrying the “Big Dig culture” on Beacon Hill, Gov.-elect Deval Patrick is eyeing one of the project’s longtime insiders as a possible pick for transportation secretary, the Herald has learned. Several sources said James A. Aloisi, whose firm made millions as legal counsel for the Turnpike Authority and wrote a Big Dig book, is on a short list of people being considered for the post. (Boston Herald, 12/14/06)
 
The Boston Herald notes that Aloisi is a long time Big-Dig insider, and was also the chief defender of James Kerasiotes, who was fired for concealing cost overruns: Because of his familiarity with the project’s inner workings, Aloisi has remained involved in the Big Dig as an outside legal consultant – work for which he has billed the state more than $3 million. He was also the chief defender of former Big Dig Boss James Kerasiotes, who was fired for concealing billions of dollars in cost overruns. (Boston Herald, 12/14/06)
 
The Associated Press also noted that Aloisi was an advisor to former Turnpike chief Matt Amorello: He also helped advise former Turnpike Chairman Matthew Amorello in the wake of last July’s fatal accident in one of the Big Dig tunnels, helping convince Amorello his legal options were running out in the face of efforts by Gov. Mitt Romney to oust him. Amorello eventually resigned. (Associated Press, 12/14/06)
 
Governor Patrick said he’d be “crazy” not to consider Aloisi as Transportation Secreatry: Gov.-elect Deval Patrick said he would be “crazy” not to consider longtime Big Dig insider Jim Aloisi for transportation secretary, even though Patrick demonized the project’s political culture during the campaign for governor. “He is a very strong and well-respected expert in transportation, “Patrick said of Aloisi during a press conference yesterday. “And I think anybody would be crazy not to consider him.” (Boston Herald, 12/15/06)
 
The Worcester Telegram and Gazette Editorialized that Aloisi presided over “a golden age of patronage, waste, abuse and political manipulation.”  When word got out that lawyer James A. Aloisi Jr., a well-wired mover and shaker in Democratic politics, was being considered for the position of state transportation secretary in the Patrick administration, reporters’ questions focused on his billing for legal work relating to the Big Dig. Far more troubling is his record at the Massachusetts Turnpike Authority.As general counsel, he and former chairman Allan R. McKinnon presided over a golden age of patronage, waste, abuse and political manipulation. (Telegram and Gazette, 12/17/06)

The Telegram noted that Aloisi once dismissed an Inspector General’s report slamming the Big Dig, calling the IG “the Grinch that stole Christmas.”  Two state inspectors general, Joseph R. Barresi and Robert A. Cerasoli, found a pervasive pattern of spendthrift policies, including high-cost perks to executives, donations to private charities, and lavish vacation, attendance and sick-leave policies. In a 1991 report, Mr. Cerasoli concluded the authority – which the Legislature intended to have a 30-year life span – had pursued a hidden agenda aimed at self-perpetuation, staying alive by increased long-term borrowing. Mr. Aloisi dismissed the report condescendingly, calling Mr. Cerasoli “the Grinch that stole Christmas.” (Telegram and Gazette, 12/17/06)
 
Patrick ended up naming Bernard Cohen Transportation Secretary: “It’s probably a good thing that somebody comes into a job like this with some strong experience but also a fresh eye and a clean slate,” Aloisi said. “Patrick’s going to be well-served by this pick.” (Boston Globe, 12/24/06)
 
February 2008
Governor Patrick appoints James Aloisi to the MassPort board: Gov. Deval Patrick has appointed James Aloisi Jr. to the Massachusetts Port Authority Board. Aloisi is a transportation law expert at the Boston firm of Goulston and Storrs. The law firm’s Web site says Aloisi was a principal author of legislation creating the framework for financing of the $14.79 billion Big Dig, the nation’s costliest highway project. Aloisi served in the Dukakis administration, eventually becoming general counsel for the Massachusetts Turnpike Authority in the early 1990s. (AP, 2/11/08)
 
November 2008
The Boston Globe reported that the Massachusetts Turnpike Authority was burdened with excessive debt and its credit rating was close to junk: In the mid-1990s, state lawmakers were desperately searching for a way to pay the state’s share of escalating Big Dig costs. To borrow the billions they would need, they found a financially stable government agency with a consistent source of income: the Massachusetts Turnpike Authority. More than a decade later, the authority is unable to afford needed maintenance, has a credit rating just above junk bond status, and is in such a shambles that Governor Deval Patrick is drafting a plan to split it into parts and wipe it from the face of state government. (Boston Globe, 11/12/08)

The Globe noted that Aloisi drafted the law that made the Turnpike responsible for the Big Dig’s finances: “No one is going to want to repeat the mistakes of the past,” said James Aloisi Jr., an informal Patrick adviser and one of two Patrick appointees on the seven-member Massport board. “And one of the mistakes is that in the mid-’90s, we burdened the turnpike with excessive amounts of debt. And I don’t believe anyone is contemplating anything like that in this plan.” Aloisi should know. He was the Turnpike Authority’s lawyer from 1989 through 1996 and drafted the law that made the agency responsible for the Big Dig’s finances. He now regrets that decision. (Boston Globe, 11/12/08)
 
December 2008
Transportation Secretary Bernard Cohen resigns: Transportation Secretary Bernard Cohen resigned Monday, having lost the confidence of the Patrick administration as it geared up for a major push to resolve the state’s sizable and lingering transportation woes. (Associated Press, 12/16/08)
Republican lawmakers opposed replacing Cohen with Aloisi; Aloisi called a “ghost of Big Dig past,” by Sen. Robert Hedlund (R-Weymouth): Horrified lawmakers and transportation officials were outraged that Patrick is considering Aloisi, who made millions as legal counsel for the Turnpike Authority and was behind tying the $15 billion Big Dig boondoggle to the agency. “He’s a lingering ghost of Big Dig past, and he’s partly responsible for getting us in this mess in the first place,” said Sen. Robert Hedlund (R-Weymouth). “I can’t believe there’s nobody else out there capable of serving at this crucial time.” (Boston Herald, 12/16/08)

The Boston Herald editorialized that Aloisi “helped ensure that Turnpike tolls would live on in perpetuity”: Reports are swirling that Gov. Deval Patrick might soon replace his top transportation aide – with the man who helped ensure that Turnpike tolls would live on in perpetuity. Not quite the “reform” the commonwealth is crying out for. Yes, before he cashed in as a high-priced lawyer and consultant to the Big Dig James A. Aloisi Jr. served as general counsel to the Turnpike Authority. And in the waning days of the Dukakis administration, he helped engineer a controversial sale of Turnpike bonds that breathed new life into an authority marked for oblivion. (Boston Herald, 12/16/08)

The Worcester Telegram and Gazette editorialized that Aloisi played a key role in “placing the burden of paying for Boston’s Big Dig on Central Massachusetts and MetroWest toll payers.” If transportation reform is the goal, Mr. Aloisi’s part in securing the perpetuation of the turnpike authority in the 1980s and ’90s should give Mr. Patrick pause. The authority was supposed to be eliminated when the construction bonds were paid off in the 1980s. As Pike general counsel and adviser to chairman Allan R. McKinnon, Mr. Aloisi was architect and chief defender of a borrowing strategy, hatched in 1989, that gave the authority a new lease on life. Two state inspectors general, Joseph R. Barresi and Robert A. Cerasoli, concluded that self-perpetuation was the turnpike authority’s “hidden agenda.” Mr. Aloisi also played a key role in legislation creating the Metropolitian Highway System that, contrary to its stated purpose, places much of the burden of paying for Boston’s Big Dig on Central Massachusetts and MetroWest toll payers. His declaration in 1995 that the authority’s “hope and expectation” was that any toll hikes would not be to pay for the Big Dig has proved to be disingenuous or naive. (Telegram and Gazette, 12/17/08)

The Boston Globe’s Joan Vennochi said that Aloisi “helped create and nurture the culture of arrogance and secrecy Patrick pledged to change,” and that the selection was “puzzling at best.” When he ran for governor, Deval Patrick promised to end what he called “the Big Dig culture.” Now, Patrick is thinking about putting James A. Aloisi Jr. – a key architect, enabler, and beneficiary of that culture – in charge of reforming it. The prospect of Aloisi as the state’s next transportation secretary is puzzling, at best. Aloisi, the Big Dig’s former chief counsel, has no obvious track record as someone who tried to reform the system from within. In fact, he helped create and nurture the culture of arrogance and secrecy Patrick pledged to change. (Boston Globe, 12/18/08)

Even Democrats called Aloisi “involved in creating the disaster.” “I wish anyone well convincing the public to support tolls, a gas tax or any reforms if you have the very people involved in creating the disaster at the helm,” said Sen. Mark Montigny (D-New Bedford). (Boston Herald, 12/17/08)

Governor Patrick names Aloisi Transportation Secretary: “After railing against the “Big Dig culture” on the campaign trail, Gov. Deval Patrick on Friday tapped a key Big Dig player to serve as transportation secretary and spearhead the overhaul of a state transportation structure imperiled in part by the $15 billion project’s debt.” (Associated Press, 12/19/08)

Note: Governor Patrick was so excited about his appointment, that he announced the pick during a blizzard: There is a time-honored tradition among public officials of releasing controversial news late on a Friday afternoon. That Gov. Deval Patrick chose to announce the appointment of James A. Aloisi Jr. as secretary of transportation during a Friday afternoon BLIZZARD well, maybe the administration just wanted to pay tribute to the old way of doing things. Because that really is what the appointment represents – a return to the good old, bad old days. That Patrick could bill the appointment as part of his effort to “reform” the state’s transportation system, well, it’s frankly laughable. (Boston Herald, 12/22/08)
 
January 2009
The Boston Herald reported that Aloisi received a state pension while consulting for the Turnpike authority as recently as last year: New transportation secretary James Aloisi has made big money off the Big Dig debacle, rolling up in the past two years nearly $1 million in his law firm’s consulting fees from the Turnpike Authority while taking a $31,000 a year pension from the state agency. Critics blasted the transportation chief – who was profiting as a consultant from the $22 billion boondoggle as recently as last year – for taking $343,000 in pension payments while also working for the state…Aloisi, who’s been on the new job for four days, worked for the state and the Turnpike Authority for almost 18 years combined, and began taking early retirement in 1996. Shortly afterward, he went to work for the now defunct law firm Hill and Barlow, which was a Big Dig consultant. Aloisi also collected consulting fees when the Turnpike later hired his firm Goulston and Storrs, taking in a total of $3 million off the project. (Boston Herald, 1/15/09)
 
The Boston Globe reported the Aloisi may have to recuse himself from some policy decisions because of financial ties between the turnpike authority and his previous employer: Governor Deval Patrick’s new transportation secretary has acknowledged he may have to recuse himself from some policy decisions because of the extensive financial ties between his former law firm and the agencies he is now being asked to overhaul.

That firm, Goulston & Storrs, where James A. Aloisi Jr. was a partner, collected $2.8 million from the Massachusetts Turnpike Authority and $1.6 million from the Massachusetts Bay Transportation Authority over the past five years, Aloisi’s spokesman disclosed in response to written questions from the Globe last week. Aloisi, now chairman of both agencies, declined to be interviewed yesterday. Neither Aloisi nor his spokesman elaborated on which decisions, if any, he may have to avoid. But significant limits in his participation could jeopardize his ability to direct a complicated and controversial transportation reorganization that has become a top priority on Beacon Hill. In his new job, which he assumed last week, he is expected to lead Patrick’s push to restructure and bail out the bureaucracies that run roads, tunnels, bridges, subways, buses, trains, and airports. (Boston Globe, 1/22/09)

The Associated Press reports that Governor Patrick is weighing a .27 cent gas tax hike: Gov. Deval Patrick is considering asking the Legislature to raise the Massachusetts gasoline tax by 27 cents per gallon as part of a comprehensive package aimed at solving lingering state transportation problems, The Associated Press learned Monday. (Associated Press, 2/9/09)

February 2009
Aloisi continually interrupts Turnpike board member Mary Connaughton as she proposed alternatives to toll increases: Board member Mary Connaughton voted against the hikes and said she wanted the board to consider fairer alternatives and cost reductions. As she tried to outline a proposed amendment, Transportation Secretary James Aloisi, who also serves as the board’s chairman, continually interrupted her and asked her to remain focused on the vote at hand. As Connaughton sought to explain her amendment, Aloisi stopped her and reread the proposed vote very slowly. (Boston Globe, 2/24/09)

WATCH: Video of Aloisi interrupting Mary Connaughton.

March 2009
Aloisi tells the Boston Globe’s Joan Vennochi that when he worked for the Turnpike Authority, it “wasn’t his job to tell people the truth.”: The truth may set Jim Aloisi free. But it’s going to cost Massachusetts taxpayers. Aloisi, the new state transportation secretary, argues passionately that the gas tax hike promoted by Governor Deval Patrick is urgently needed to make up for “sins of the past,” which include covering up Big Dig costs. As lawyer to the Massachusetts Turnpike Authority, Aloisi knew the sins and the sinners. But, “It wasn’t my job to tell people the truth,” he said during a visit to the Globe last week. Now, he declared, “I am liberated.” A liberated Aloisi admits it was wrong for Big Dig champions to ask the Turnpike Authority to “bankrupt itself” to pay for the project’s ever-escalating costs and wrong for the Turnpike Authority to go along with the request: “It bankrupted itself . . . Congratulations.” Today, Aloisi labels it bad policy for board members to do what he did: arrogantly decide to run a public authority without transparency or accountability to the people or the governor they elect. Now, he calls it “a disgrace” that state transportation officials increased MBTA fares over the years instead of getting behind a politically painful gas tax increase. “I was part of the thinking of the ’90s,” said Aloisi. “I don’t come in here as Caesar’s wife.” (Boston Globe, 3/1/09)
 
In response to Aloisi and Patrick’s proposed “carbon fee” for parking at Logan Airport, the Boston Herald editorialized that “When it comes to arrogance Transportation Secretary James Aloisi is without peer.”: When it comes to arrogance Transportation Secretary James Aloisi is without peer. Aloisi, of course, is the brains behind Gov. Deval Patrick’s 19 cent gas tax hike and the rest of the governor’s transportation reform plan. Among the “reforms” in that plan is a new $2 “carbon fee” that Aloisi and Patrick want assessed on anyone who parks at Logan Airport – whether for 10 minutes or 10 days. Aloisi told the Boston Globe last week that it SHOULDN’T be convenient to drive to Logan and park. “We need people to understand that there are better ways to get to Logan,” he said. Tell that to the mom traveling to Logan from Roslindale with her toddler, a baby stroller and luggage to make a 6 a.m. flight. (Boston Herald, 3/3/09)
 
The State House News Service then reported that Aloisi then referred to “reform before revenue” as a “meaningless slogan”: Taking direct aim at the central mantra behind Senate President Therese Murray’s transportation reform policy, Gov. Deval Patrick’s top transportation aide on Wednesday derided her insistence on “reform before revenue” as a “meaningless slogan.” In a closed-door, standing-room-only meeting with lawmakers and aides, Transportation Secretary James Aloisi stunned several of those in attendance with his harsh dismissal of the policy, to which Murray has clung despite the administration’s approval of a $100 million toll hike and a 19-cent-per-gallon gas tax as mutually exclusive measures. Aloisi said he would advise Patrick to veto a nine cent-a-gallon gas tax hike, one in a series of proposed increases to the state’s existing 23.5-cent levy. (State House News Service, 3/4/09)

Even Democrats said that “reform before revenue” was “certainly not meaningless”: Senate leaders said they were bewildered by the criticism. “I don’t even know what to think,” said Senate Ways and Means chair Steven Panagiotakos. “I would say it’s certainly not meaningless to the citizens of Massachusetts,” said Panagiotakos (D-Lowell). “Everywhere I’ve gone, people have thought that was the proper approach: clean up the transportation system, make it as efficient as possible, then you have an idea of how much it’s going to cost.” (State House News Service, 3/4/09)

Aloisi then referred to Turnpike board member Mary Connaughton as a “gadfly.” Patrick’s new transportation secretary and the chairman of the authority’s board, James A. Aloisi Jr., is not nearly as charitable. His treatment of her during a recent vote to raise tolls – in which she was the only dissenter – attracted criticism from Senate President Therese Murray and a call for an apology from the state Republican Party. “Respect is a two-way street,” Aloisi said, a few days after cutting Connaughton off repeatedly during the Feb. 24 meeting and removing her from a spot on the authority’s audit committee, where she had freer access to agency documents. “And I wasn’t treated with respect and I haven’t been treated with respect by her since the first day I took this job.” “She’s a distraction,” he continued. “She’s a gadfly. And I have more important things to do.” (Boston Globe, 3/9/09)

The Boston Globe then reported that Aloisi’s sister Carol had a no-show job at the State House: Her title was chief of staff, but she had no staff and reported to no one. That did not prevent Carol Aloisi from collecting a $60,000 State House salary for six months, until a state representative found her – literally – sitting in his new office and put her to work. Aloisi, the sister of state Transportation Secretary James Aloisi Jr., was assigned in August by House leaders to the onetime office of former state representative Rachel Kaprielian months after Kaprielian had vacated her post to head up the state Registry of Motor Vehicles. When aides to Representative Garrett Bradley of Hingham, named as Kaprielian’s successor as floor leader this year, arrived to take over the office two weeks ago, they were baffled to find her there. (Boston Globe, 3/17/09)

The Boston Globe editorialized that Aloisi “isn’t the most obvious symbol of reform” and is a “tainted messenger.”: While Governor Patrick wants to fix the state’s transportation bureaucracy, his new transportation secretary, James F. Aloisi Jr., isn’t the most obvious symbol of reform. The Globe’s Andrea Estes reported yesterday that Aloisi’s sister, Carol Aloisi, holds a state job that paid her $60,000 for doing nothing. It’s hard to imagine anyone without connections getting such a plum deal…Passing these reforms – which Patrick says are as vital to his plan as the gas tax hike – means convincing unions and their political allies that the state’s fiscal stability is at risk. Aloisi, who is supposed to press the governor’s message of reform, is a tainted messenger. (Boston Globe, 3/18/09)

Then Aloisi attacked the Boston Globe in a blog post for the story about his sister. He later apologized: State Transportation Secretary James Aloisi Jr., abruptly reversing course yesterday, publicly lashed out at the Globe for a story describing how his sister recently held a legislative job with no apparent duties and then issued an apology to the paper and one of its reporters. The episode, one in a string of high-profile conflicts involving Governor Deval Patrick’s recent appointee, began with a strongly worded blog posting on Tuesday night. In it, Aloisi criticized a Globe story that disclosed Carol Aloisi’s lack of responsibilities for six months despite her $60,000-a-year salary. Aloisi called the story “misleading,” “inaccurate,” and “disgraceful.” (Boston Globe, 3/19/09)

A tip of the hat to the MassGOP for collecting this information. It’s long since time the whole story came out.