Category: Connecticut
As Congress Prepares Budget, Sub Suppliers Descend on Capitol to Secure Funding
SUBMARINE
The Day
Katie Koch
Boston University Washington News Service
3/5/09
WASHINGTON—It was hard to miss the victorious mood at Thursday’s Submarine Industrial Base Council breakfast, where submarine builders and suppliers from across the country mingled with members of Congress to kick off a day of visits to members’ offices on Capitol Hill.
Last year’s record-breaking $14 billion contract for eight new Virginia-class submarines, to be built in part by Groton’s Electric Boat, was cause for celebration and record-breaking turnout at the council’s 17th annual meeting, organizers said.
“The feeling in the room was definitely much more upbeat,” said Rep. Joe Courtney, D-2nd District, who spoke to the nearly 200 attendees.
But there wasn’t much time to rest on their laurels. With President Obama’s proposed budget still vague on defense spending—and with more-immediate priorities looming in the midst of the economic crisis—industry representatives came to Washington prepared to push for two new priorities: increased funds for research and development and a program to design a replacement for the aging Ohio-class Trident submarine.
“Even though awards have been made…the new administration has put a hold on everything,” said the council’s co-chairman, Dan DePompei of DRS Power Technology in Fitchburg, Mass. “Block 3 funding [for the Virginia-class subs] is pretty safe, but R&D could be questioned.”
Obama’s budget outline would set the Defense Department’s basic budget, which excludes war costs, at $533.7 billion—a 4 percent increase over this year that barely keeps pace with inflation. By contrast, George W. Bush increased the department’s budget by 74 percent from 2001 to 2008.
After an era of heightened spending and ambitious defense projects, council members said, they must now market their services as long-term investments in the country’s economic prosperity and national security.
“There is an economic impact across the country for what we do, and we need to reinforce that message with Congress,” Electric Boat president John P. Casey said in an interview.
He said Congress and the Navy need to start thinking now about replacing the Ohio-class submarines, the first of which is set to be retired in 2029.
“We’re not early, we’re not late, but we need to start now,” Casey said.
Courtney said an Ohio-class redesign program would bring more entry-level design jobs to Electric Boat. In the past year, the company has added about 200 engineers and 400 designers to its workforce, many of them younger employees whose ranks had thinned at Electric Boat over the years.
“It’s really been exciting to see, on the design side, younger workers going through the doors in the morning,” Courtney said in an interview. “Trying to hold onto our young people is a profoundly significant issue in our state.”
Sen. Chris Dodd, D-Conn., stressed the urgency of keeping research-and-development funding levels high to keep pace with emerging naval powers like China.
“If you have any doubts about whether this is Cold War technology, just ask other nations that are eager for this technology,” Dodd said after speaking to the council. “It would be awfully shortsighted to find out the whole world was right and we were wrong.”
Rep. C.W. Bill Young, R-Fla., the senior Republican on the House Defense Appropriations Subcommittee, assured the council audience that Navy procurement programs would not face the chopping block when Congress starts debating the budget in April.
“The Appropriations Committee will be supporting these programs, and we’re looking forward to that Trident submarine,” Young said to applause.
Rep. Jim Langevin, D-R.I., cautioned that as the Navy falls behind in the number of submarines in its fleet, the submarine industry must work even harder to ensure that Congress will pay for the “complex engineering and precise craftsmanship” necessary for an updated fleet.
“We can’t take it for granted that other members of Congress are as passionate and knowledgeable as we are about submarines,” said Langevin, co-chairman of the Congressional Submarine Caucus.
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Adm. Allen Stresses need for Modernization in Annual Address
COAST GUARD
The Day
Katie Koch
Boston University Washington News Service
March 3, 2009
WASHINGTON—Anticipating a tight budget in the midst of the current fiscal crisis, Adm. Thad W. Allen, Coast Guard commandant, said Tuesday that the Coast Guard must focus on modernizing its communications and processes before upgrading its fleet.
Modernization remains “job one” for the Guard, Allen said. But, he emphasized, the process “is not budget driven. It is driven by the motivation to change and adapt to ensure future readiness.”
Allen’s remarks came as Congress debates the federal budget submitted last Thursday by President Barack Obama, who vowed to streamline the defense budget in his address before Congress last week.
Allen pointed to increased use of the web to communicate both within the Coast Guard and with the public as an important area of modernization.
He mentioned the Guard’s new partnerships with Google, YouTube and other major Web sites, as well as a new Facebook page, that are part of his goal to build an “effective and secure presence in cyberspace.”
“While funding levels set general limits on what is possible,” Allen said, “our internal organizational structure, our ability to create effective doctrine and our ability to plan and execute operations must be optimized to make the best use of every dollar appropriated.”
Still, Allen did not downplay the “deteriorating condition” of the Coast Guard’s fleet. Cutter availability for missions is decreasing, he said, as older vessels like the Dallas and the Gallatin are removed from active duty to repair structural decay. Meanwhile, the cost of operating the Guard’s major cutters is increasing.
“Time is a merciless thief, and it is stealing readiness with each passing year,” he said.
The recently passed stimulus package allocated $98 million for the Coast Guard to replace some aging equipment and upgrade older facilities. But despite that additional funding, Allen warned, high demand for the Guard’s services could ultimately strain it to a breaking point.
“The good news…and bad news is there’s never been a greater demand for our services,” he said.
In the meantime, Allen acknowledged, manpower shortages in the Guard must be addressed to meet high demand for the Guard’s services.
“This notion of doing more with less needs to leave our lexicon,” Allen said in a question-and-answer period after the speech.
“One of our combatant commanders recently told me, ‘You know, the Coast Guard is like a great fighter that punches above his weight,’ ” Allen said. “I appreciated his comment, but it’d really be nice to move to a higher weight class.”
Allen was aggressive in asserting that, despite the formidable budgetary and logistical challenges the Coast Guard still faces, it has made significant progress in his two-and-a-half years at the helm.
“This is not the same Coast Guard that existed even one year ago,” Allen said.
Allen emphasized that the Coast Guard has begun to implement acquisition reforms “not only for Deepwater but for all initiatives,” and that the progress made in that area over the past two years “needs to be recognized.”
He said the Coast Guard took the lead in streamlining communication between planners, technical experts and acquirers for the recently completed USCG Cutter Bertholf and will do so for future cutters, boats and aircraft.
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Finance-Strapped Volunteer Programs May Hinder Sen. Dodd’s Service Initiative
VOLUNTEER
Norwalk Hour
Tait Militana
Boston University Washington News Service
03/03/09
WASHINGTON – Lawmakers need to do more to help ensure the survival of community service programs and nonprofit organizations in the wake of the economic crisis, Connecticut volunteer leaders said.
Though they applauded recent initiatives to increase volunteers nationwide, they said in a series of interviews, the initiatives will have little effect if there are few programs left for the volunteers to join.
Michael Johnston, CEO of United Way of Western Connecticut, said he worries that the economic situation and state budget cuts will leave little money for nonprofits and volunteer organizations, forcing them to cut back on services.
“We are not entirely sure the nonprofits are going to get through this very difficult time,” Johnston said. “We certainly worry that there will be challenges in the next few years because this is as bad as we’ve seen it.”
Last week, Sen. Chris Dodd, D-Conn., introduced four bills to create incentives for people of all ages to volunteer in their communities.
The bills, promoted with Rep. Rosa DeLauro, D-3, who will introduce companion legislation in the House, will expand funds for grants and awards to make education more affordable for volunteers.
Co-sponsored by Sen. Thad Cochran, R-Miss., the legislation includes the Semester of Service Act to offer academic credit to teens for service done during the school year, the Summer of Service Act to provide a $500 educational grant for students who volunteer during the summer between middle school and high school and the Encore Act to offer $1,000 educational scholarships for citizens 50 and older who volunteer 250 to 500 hours per year with local non-profits.
A final bill, known as the Action Act, would increase educational awards for AmeriCorps graduates from $4,725 a year to $6,585, with subsequent increases each year during the four years of college.
However, Ronald Cretaro, executive director of the Connecticut Association of Nonprofits, said rather than creating incentives to persuade more people to volunteer, it is better to make sure the programs that currently exist are financially able to continue operations.
Volunteer programs and nonprofits “are going to be faced with further cutbacks or packing it in,” he said. “I would like to see more initiatives out of the government to help make sure nonprofits are going to be around in a couple years.”
In the past two months two nonprofit groups in Fairfield County have closed because of financial problems associated with the poor economy. The Safe Neighborhoods AmeriCorps Partnership, a Bridgeport-based program that fought to reduce crime and violence, was discontinued in January because the program could not raise enough to match federal grants.
Last month, Dress for Success Mid-Fairfield County, a program that provides professional attire for disadvantaged women based out of Fairfield, suspended its services because of financial challenges and economic uncertainty, according to its Web site.
A spokesman from Dress for Success was not available for comment.
Thyda Korng, a former Bridgeport AmeriCorps program director, said though she is happy that there has been a call for public service from Washington, she is disappointed that her program could not be included in the volunteer expansions.
“It’s about the many people who had their lives changed by the program,” Korng said.
AmeriCorps is in the preliminary stages of creating a new program in Bridgeport, Korng said.
According to Dodd, the programs closing around the country present a problem for his plan, but there are other ways for people to help out. He said it is important now more than ever to volunteer because so many people are suffering.
“The need now is greater than it has ever been,” Dodd said. “There are still churches and community organizations and ways for people to plug into those.”
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Himes Gave Big Money to His Campaign, But Defied Odds by Winning
SELF
Norwalk Hour
Tait Militana
Boston University Washington News Service
March 3, 2009
WASHINGTON - Rep. Jim Himes, D-4, put just over a half million dollars of his own money into his campaign against incumbent Republican Christopher Shays last fall, which was 13 percent of his total spending.
According to political experts, self-financing is a common tactic for challengers to try to make up for the fundraising advantages incumbents have. But what is surprising, experts said, is that for Himes it worked.
Candidates who spent more than $350,000 of their personal wealth to challenge incumbents have won just two out of 32 times since the 2004 election, according to the Center for Responsive Politics, a Washington-based research group that tracks money in politics.
Jennifer Steen, a New Haven campaign finance expert and author of the book “Self-Financed Candidates in Congressional Elections,” said self-financing often creates a disadvantage for candidates because the money does not necessarily translate into votes.
“If you do ask for money in increments you are asking each individual for support,” said Steen. “Each check adds more than monetary value to the campaign. If you write yourself a check, it doesn’t contain any of that.”
Himes defeated Shays with 51 percent of the vote in what was the fourth most expensive congressional race of 2008, according to year-end candidate reports filed with the Federal Election Commission. By raising just over $3.9 million Himes out fundraised Shays by nearly $165,000, though $527,088 was his own money. Shays contributed $22,000 to his own campaign or less than 1 percent of the total money he raised.
Don Carlson, Himes’ chief of staff during the transition, said the decision to use the congressman’s money was made very late in the campaign to provide an extra boost to the field organization and advertising effort.
“It was a bridge loan to get us over the hump,” said Carlson. “It enabled the campaign to do the things it needed to do in final weeks.”
Himes’ communications director Elizabeth Kerr, said she believed Himes platform and message had a larger role in his success.
“He presented a strategy to help bring change,” said Kerr. “That was something that resonated with Connecticut residents. I think that has a lot more to do with the victory.”
According to data filed with the Federal Election Commission, Himes has been paid back $138,300 of the money he loaned his campaign.
Kerr said Himes expects to eventually receive back all of the money he lent his campaign, though she declined to specify how that would happen.
It is common for candidates to continue fundraising in non-election years to help pay off their campaign debt including debt to themselves. Months after her loss in the presidential primary, Hillary Clinton continues to ask supporters to donate to her campaign to help pay off her nearly $6 million debt.
Nonetheless, several experts agreed with Kerr that Himes’ message was much more important to his success than money. Vincent Moscardelli, an assistant professor of political science at the University of Connecticut, said though self-financing can help candidates get their names out there or keep the campaign afloat through hard times, it cannot overcome serious popularity flaws.
“You can’t overcome the larger political forces at work, said Moscardelli. “Chris Shays did not lose because he faced a self-financed candidate. He lost because he was the last Republican in New England.”
Scott McLean, professor of political science at Quinnipiac University, said this is one reason why so many self-financing candidates lose. Often they are forced to rely on their own money because they are a weaker candidate and cannot match their opponents in fundraising.
“That result is entailed in the very reason why candidates have to finance their own campaigns,” said McLean. “They are simply weaker candidates for the most part or first time candidates.”
Ultimately, McLean said one can point to the low success rates of self-financed candidates to disprove the theory that candidates can buy their seats in Congress.
“I don’t think rich candidates can just buy their seats,” said McLean. “They can get into the game and be a player, but it won’t make them win. Money matters, but in the end it’s the votes that count.”
Steen said the fundraising process changes once a candidate becomes an incumbent.
Because it’s much easier for incumbents to raise money, they almost never contribute as much of their own money to their campaign once they have been elected.
“Self-financing candidates almost always lose but when they win, they very rarely self-finance reelection campaigns,” said Steen. “That says it all right there.”
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No Longer an Underdog, Courtney had Support From Business Interests in 2008
COURTNEY
The New London Day
Katie Koch
Boston University Washington News Service
2/26/09
WASHINGTON—What a difference two years can make in politics.
Rep. Joe Courtney’s win in his first reelection campaign last November—he trounced Republican challenger Sean Sullivan by a 33-point margin—proved he could muster the broad majorities his 2nd District predecessor, Republican Rob Simmons, once commanded.
Now, recently released fundraising data shows Courtney was able to move not just votes, but dollars—especially from the business interests that shied away from the staunchly liberal Democrat in 2006. Although Courtney raised slightly less in this election cycle—$2.37 million in 2008 versus $2.46 million in 2006—his contributions from business interests went up.
According to the Center for Responsive Politics, which tracks money in politics, four of the top five sources for contributions to his 2008 campaign were employees and political action committees of the area’s largest corporations: General Dynamics, Northeast Utilities, Pfizer Inc. and United Technologies.
Employees and PACs affiliated with these four companies gave Courtney $73,506. While that does not yet match the $111,050 Simmons raised from those four companies in 2006, it far exceeds what they contributed to Courtney when he ran as a challenger that year.
For instance, Courtney received 70 contributions of $200 or more from General Dynamics Electric Boat employees over the last two years, according to data from the Center for Responsive Politics. When he ran as a challenger in 2006, he received none.
Although big business tends to favor Republican candidates on ideological grounds, last year major corporations could see they needed to curry favor with the increasingly powerful Democrats, according to Kenneth Dautrich, an associate professor of public policy at the University of Connecticut.
“They were purely reading the tea leaves,” Dautrich said. “Obama was going to win, Democrats were going to retain their margins in Congress, and once they got into office, they were going to spend a trillion dollars on the economy.”
For instance, Pfizer employees and political action committees contributed more than twice as much nationally to Republicans as they did to Democrats in the 2006 election cycle. By contrast, they gave roughly the same—$901,067 to Democrats, $908,343 to Republicans—in the 2008 cycle, Center for Responsive Politics data shows.
“Pfizer and others saw the writing on the wall, and right now they’re working as hard as they can to get the [federal] money,” Dautrich said.
As the representative of a district housing several large corporations, Courtney benefited even more from business’s increased generosity toward Democrats. He was the fourth-highest recipient of campaign funds from General Dynamics and the second-highest from Pfizer among all House candidates in 2008, according to data from the Center for Responsive Politics.
According to Dautrich, Courtney’s sway with major donors—despite his relative lack of power or seniority in the House—shows the degree to which companies’ major donors take their home base into consideration when choosing where to give.
“They can depend on him more, because he’s more interested in their success,” Dautrich said.
Brian Farber, a spokesman for Courtney, said Courtney’s donors weren’t buying influence but rather expressing their approval of Courtney’s performance for the district.
“You don’t work for donations, you work for respect,” Farber said. “At the end of the day…you have to show that you’re someone they can trust.”
Peter Halvordson, vice president of engineering at Electric Boat, gave $450 to the Simmons campaign in 2006. In the most recent election cycle, he contributed $750 to Courtney. He said he is more pragmatic than partisan when deciding which candidate he will support.
Halvordson said his quick turnaround on Courtney—to whose campaign he contributed fewer than five months after he gave to Simmons—was a result of Courtney’s impressive ability to fight for the district’s needs and concerns, including his efforts to save the Navy submarine base in New London from closure in 2007.
“Since he was elected, I think his understanding, depth of knowledge and intellect have been astounding,” he said.
Courtney’s increased campaign receipts from the business community filled a void left by more issue-oriented groups, which contributed heavily to his 2006 campaign.
Ideological and single-issue groups gave Courtney $517,323 to help fuel his exceptionally narrow win in 2006—which was more than twice as much as any other sector, according to the Center for Responsive Politics. In 2008, this sector still gave the most to Courtney, but the overall total was much less: $293,872.
For instance, the Democratic Congressional Campaign Committee, the official campaigning arm of the House Democrats, gave $97,563 to Courtney in the 2006 election cycle, but only $10,550 in the last cycle, the Center reports.
Shripal Shah, the committee’s Northeast regional spokesman, said the committee did not make any independent expenditures on behalf of Courtney’s most recent campaign. In competitive races, the committee will often spend many thousands of dollars to run advertisements or otherwise bolster support in the district.
Farber, Courtney’s spokesman, said the drop-off in Courtney’s contributions from some liberal interest groups does not indicate their waning support for the congressman. Instead, he said, it had more to do with the high number of races in play around the country.
“In such a historic and unprecedented year, resources were probably stretched a little more thinly,” Farber said.
Courtney’s ability to raise money from Simmons’ old supporters isn’t too unusual, according to Scott McLean, a political science professor at Quinnipiac University. In historically competitive districts like Connecticut’s 2nd, he said, groups will often give to both candidates to ensure they have some influence regardless of who wins.
“In the 2nd District it seems that nobody’s advantages are insurmountable,” McLean said.
Farber agreed, saying Courtney was not overconfident about 2010 despite the $625,253 left in his campaign treasury after his easy win over Sullivan.
“This is a district that you can never let your guard down,” he said. “We know that this is always a challenge, that it’s always a fight to the finish.”
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In The Face of Record Deficit, Recovery Will Take Time, Himes Says
PRELIMINARY
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 26, 2009
WASHINGTON – Connecticut residents should have modest expectations about the economic recovery, said Rep. Jim Himes, D-4, following the release of President Barack Obama’s preliminary budget outline Thursday morning, which charts the government’s spending for the next decade.
Himes said it is important for everybody to understand that it will take time for the current economic hardships to end and that residents need to work together to get through them.
“Confidence is critical, but it’s important for everybody to understand that we’re not coming out of this economic crisis tomorrow, next week or next month,” said Himes in an interview after the budget announcement. “This economic crisis was eight years in the making and will be more than one month in the undoing.”
Obama’s preliminary budget estimates a $1.75 trillion deficit for the rest of the fiscal year, which began in October, and $3.55 trillion in spending in 2010. It will increase taxes on families making more than $250,000 by allowing President George W. Bush’s tax cuts to expire and will introduce new tax cuts for the middle class.
According to 2007 census data, about 45,000 or 20 percent of families in Fairfield County make more than $200,000.
In a press conference Thursday morning, Obama said the budget is full of hard choices, but with the harsh economic realities it is important to focus on what is needed to move the economy forward.
“There are times where you can afford to redecorate your house and there are times where you need to focus on rebuilding its foundation,” said Obama. “Today we have to focus on foundations.”
Despite heavy spending and revenue shortfalls in the first few years of the budget, Obama predicted he would slash the deficit to $533 billion by 2013. It is estimated to balloon again in 2019 by more than $200 billion. Obama estimated savings in health care by cutting Medicare payments to private insurance plans and computerizing medical records. He also planned to close tax loopholes for businesses and end government payments to farms making more than $500,000.
Sen. Chris Dodd, D-Conn., said he is pleased with the outlines proposed by the president, especially reducing the high cost of health care.
“When it comes to health care reform, the president’s budget provides Congress a good starting point,” said Dodd. “To create a stronger, healthier nation in the long-term, I believe it will take an up-front investment in prevention and primary care, health information technology and expanding insurance coverage.”
Obama followed his call for energy investment in his congressional address Tuesday night, by allocating $15 billion a year for 10 years to develop wind and solar power technologies. Obama has asked Congress to take up a new energy bill by the spring recess.
“We need to make clean, renewable energy the profitable kind of energy,” he said.
Sen. Joe Lieberman, I-Conn., said in a statement that he considers defense spending a top priority in the coming years. In addition to the $69 billion already budgeted to fund the wars in Iraq and Afghanistan, the Obama administration has requested $75.5 billion for the rest of the year and $130 billion for 2010.
“I will fight to make sure that the Connecticut defense industry receives full support for the capabilities that only it can provide to our nation’s military,” Lieberman said.
Himes also set about fixing the country’s financial regulatory agencies Thursday, by announcing a set of broad guidelines for financial oversight reform in a press conference with the New Democrat Coalition. Himes, co-chair of the Task Force on Financial Services, called for a risk regulator to help prevent mass financial collapse and increased coordination between oversight bodies
He said the reforms are “complicated and technical and unsexy, but terribly important to the future of financial services industry and the strength of our economy.”
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Connecticut, Members of Congress Call for Bipartisanship
ADDRESS
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 25, 2009
WASHINGTON – Connecticut’s members of Congress called for bipartisanship following President Barack Obama’s address to a joint session of Congress Tuesday night, with Rep. Jim Himes D-4, saying the stimulus bill and the President’s speech marked the beginning of the country’s recovery.
Himes said there is still work to be done, but he was optimistic about the country’s recovery moving forward.
“I think he [Obama] recognizes this, and we all do, that one of the key underlying aspects of our economy is confidence,” he said in an interview at the Capitol after the speech. “His optimism and his confidence should set a good tone.”
Himes said he appreciates the concerns of Republicans who have said the stimulus bill threatens future generations that will have to pay for today’s spending. But, Himes said, at some point both parties need to put aside differences and return to building confidence in the markets.
“I’ve said all along I don’t mind an opposition,” he said. “When the debate is done we need to come together and say this is going to work. It may not be perfect, but it’s going to work and it’s going to help us turn the corner.”
Obama spent a large part of his speech defending his stimulus bill, which he signed into law last week. Seeking to reassure Americans that the country will recover, he encouraged Congress to take up health care, energy and education reform in the coming months. He also called on all Americans to commit to at least one year of higher education or career training, saying dropping out of high school is no longer an option.
“It’s not just quitting on yourself,” said Obama. “It’s quitting on your country.”
On several occasions throughout the night Obama was met with jeers from Republicans on issues dealing with the stimulus bill, which passed the Senate with just three Republican votes, and government spending in general. However, lawmakers said, it would be important to work together to pass the much needed reforms.
Sen. Joseph Lieberman, I-Conn., said in a statement that the stimulus alone will not save the economy but must be coupled with steps forward on the health care and energy bills.
“I am committed to working with my colleagues in Congress to build bipartisan coalitions to make progress in all of these areas,” he said.
Sen. Chris Dodd, D-Conn., reiterated the importance of cooperation between the parties, saying he is already working with several Republicans to reform the health care system and make it affordable to more Americans.
“The challenges facing our nation are not Democratic or Republican,” Dodd said. “They are challenges to America. I am confident that we will be able to address many priorities in a bipartisan fashion.”
Himes said lawmakers in both parties will realize how important the next few months will be in turning the country around. He said that several tough issues are still ahead, but that Obama’s speech represented an understanding between opponents.
“It was really moving,” Himes said. “I was sitting with a couple of Republicans, and I’ve got to tell you they were moved too.”
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Dodd, DeLauro Introduce Service Bills to Reach Volunteers Young and Old
SERVICE
The Day
Katie Koch
Boston University Washington News Service
2/24/09
WASHINGTON—Responding to what he called “a moment for national service,” Sen. Chris Dodd, D-Conn., introduced four bills Tuesday that would increase federal spending for community volunteer initiatives.
The ambitious legislation would “create the architecture and the structure that will serve as the invitation for everyone to serve,” Dodd said. The bills would target everyone from schoolchildren to the elderly and aim to create new bases of volunteers beyond the usual young-adult pool of service program participants.
Two bills, the Summer of Service Act and the Semester of Service Act, would allow middle-school and high-school students to earn credits or stipends for their community service programs.
The Encore Service Act would provide stipends and education awards to Americans 50 and older in exchange for service in their communities.
The Action Act would raise the amount awarded to AmeriCorps volunteers to pay for college tuition from the current $4,725 to $6,585 to reflect the current average tuition at a four-year college.
The legislation was met with hope and some trepidation by those familiar with Connecticut’s financially strapped schools and departments, who say that federal dollars could jump-start some stalled community service initiatives in the state.
Robert Rader, executive director of the Connecticut Association of Boards of Education, said federal dollars for such programs could give a boost to education initiatives that the state has been considering for years. In its 2006 secondary school reform plan, known as the Connecticut Plan, the State Department of Education considered a capstone project requirement for graduating seniors that could be fulfilled by a service project, but the plan has not been implemented because of its cost.
“Many of the aspects of that secondary school reform bill were being held for now because of the economic climate,” Rader said.
“Many boards have required students to take part in service activities and have found that these are very positive for the students as well as for the communities,” Rader said. “But under the present financial difficulties, schools would have to look very carefully” at adding volunteer projects to their graduation requirements.
The Encore Act for volunteers 50 or older could also help the state’s social services agencies, according to Robert J. Norton, director of communications for the Connecticut Commission on Aging.
One provision would give volunteers $1,000 for 250 to 500 hours of service in a year. Another would create a fellowship for older Americans to serve in management positions at nonprofit or public institutions.
With large numbers of young people leaving Connecticut and the average age in the state climbing rapidly, the state should welcome federal programs that help older workers, Norton said.
“We have a million people who are baby boomers, almost a third of the overall population of the state,” Norton said. “Keeping them engaged in the workforce either full or part-time or in volunteer pursuits is critical.”
Dodd said he was reintroducing the bills—which he sponsored but failed to bring to a vote in 2007—in response to President Obama’s call in his inaugural address for national service. He said it echoed John F. Kennedy’s inaugural speech that inspired him to serve in the Peace Corps in the Dominican Republic from 1966 to 1968.
“People ask me why I joined—I joined because the President asked,” Dodd said. “We’ve got a President who’s asking.”
The Senate bills, co-sponsored by Thad Cochran, R-Miss., are companion legislation to bills Rep. Rosa DeLauro, D-3rd District, introduced Tuesday in the House.
DeLauro praised the bills for providing volunteer opportunities that would both improve communities and give Americans eager to serve the financial means to do so.
“If we are serious about getting this nation back on track, we need to give everyone the opportunity to do their part,” DeLauro said.
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Local Businesses View Stimulus Bill With Mixed Emotions
FAIRFIELD
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 17, 2009
WASHINGTON – For months Norwalk-based developer Greyrock Homes has been selling houses at a loss.
The company’s award-winning residential development in Cos Cob has so few buyers that Jerry Effren, the company’s principal, said he decided to sell houses below cost, hoping to ride out the economic storm.
Effren said he also recently decided to shelve a 20-home residential development in Wilton, after almost five years of planning and approvals. He said the slumping economy has wreaked havoc on the housing market.
“We had to shut it down and wait it out,” Effren said. “In this marketplace, the sales are just not strong enough.”
Effren is not the only one suffering. Business owners from various local industries said the recession has hurt their bottom lines. However, many had differing opinions on the potential effectiveness of President Barack Obama’s economic policies and the stimulus bill that the president signed into law on Tuesday.
Effren called Obama’s economic plan a disaster, saying he expects the stimulus package to do nothing to help him.
“I’ve cut 90 percent of my workforce,” he said. “The people I work with have done the same thing. You ask me what’s going to fix this. I don’t think it’s the stimulus.”
According to Effren, the largest problems with the stimulus bill are the lack of transparency and its size. He said Obama has not followed through on the transparency he has promised and said he could not be more frustrated with politicians who think huge government spending will stabilize the markets.
“It will do absolutely nothing,” said Effren. “It will delay any meaningful restructuring of the economy. People are waiting on the sidelines.”
Nonetheless, some business leaders who have experienced financial problems similar to Effren’s expressed hope that Obama’s economic plan will represent a significant improvement over the policies of President George W. Bush.
Kenneth Olson, president of POKO Partners, a developer based in New York that is working on the Wall Street Place mixed-use project in downtown Norwalk, said his company, like others, has faced economic challenges. The Wall Street Place residential component has been converted from apartments and condominiums to all apartments.
“It’s so much harder to get financing,” Olson said. “Those buyers [of condominiums] have been dramatically impacted by the economy.”
As long as funds are distributed fast enough, Olson said, the stimulus package should help his business because it provides funds for urban development, a major aspect of his industry. He said the stimulus plan has flaws, but the Obama administration’s approach to the economy is dramatically better than that of the Bush administration.
“There is no comparison,” he said. “At least Obama is engaged and trying to move things forward. Bush was not engaged.”
David Levinson, president of Norwalk Community College, was optimistic about Obama’s measures to fix the economy, saying potential infrastructure development projects in Norwalk would help stimulate the town and the college.
“We provide a number of workforce training programs,” Levinson said. “It is going to be a wonderful opportunity for us, so we can expand and create a new workforce.”
According to Levinson, the largest issues facing community colleges during the recession are budget cuts. He said he has already seen a 3 percent cut in state block grants and expects an additional 7 percent in cuts by the fall. These cuts, coupled with higher enrollment as students look for alternatives to expensive four-year schools, Levinson said, mean that the school must try to teach more students with less money.
Yet Levinson said the school is well positioned for the future and the stimulus will help. The college is continuing its work on a new science center and is entering a partnership with J.M. Wright Technical High School to facilitate a smoother path for students between high school and college.
“We believe we are right on the front line in providing a health work force that is needed,” Levinson said. “I’m very encouraged by how the community has come together.”
For Effren, the stimulus package represents a potential harm to Norwalk. He said as long as the government is involved, the market will not stabilize, prolonging already delayed projects in the city.
“Norwalk has some great developments on the books,” he said. “Unfortunately it’s taken too long to get them approved. Many could already be making revenue for the city. It [the city] has a lot of tremendous potential but will have to weather a poor economy.”
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Himes Says Norwalk Well Positioned to Weather Recession, But Housing Struggling
BUSINESS
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 17, 2009
WASHINGTON - Though the Norwalk economy is strong enough to survive a recession, the declining housing market presents a long-term threat, according to Rep. Jim Himes, D-4.
In addition to the $787 billion stimulus bill, which President Barack Obama signed on Tuesday, Himes said in a series of recent interviews, a foreclosure prevention plan is needed to help Fairfield County residents stay in their homes. He said in a phone interview that as long as people are in fear of losing their homes and real estate values are plummeting it will be hard to get the economy back on track.
“We can stimulate till the cows come home, but it won’t work if people are worried about losing their houses,” Himes said.
According to Himes, Norwalk’s community strengths put it in good position to face tough economic times ahead. He said the people of Fairfield County are resilient and will get through this recession better prepared to be competitive in the future.
Nonetheless, Himes said, a weak housing market could put a damper on efforts to improve other aspects of the county’s economy.
Last week Treasury Secretary Timothy Geithner announced a plan to distribute the remaining $350 billion in Troubled Assets Relief Program funds that Congress originally approved in October. A nationwide foreclosure prevention plan will be included in the redesigned program.
Though Geithner said specifics were still being worked out, he expected to announce more-concrete plans in the next few weeks. According to the Treasury Department, every day more than 10,000 families lose their homes to foreclosure nationwide.
Mayor Richard Moccia said in an interview Tuesday that though the coming months will not be easy, the city is in a position to move forward. He reiterated Himes’s view that fixing the problems in the housing market are an important part of fixing the rest of the economy and added that it was essential that stimulus funds be directed through municipalities as much as possible.
“We are in good shape,” Moccia said. “Beyond that, a lot of it depends on what happens with the state. As best we can judge, we are in safe haven; should things get worse, then I think we are all going to be in the same boat.”
Moccia said Norwalk may be in a better position than other cities because it still has a strong bond rating. He also said he there is a potential for business investments in the near future by a film production company and a knife manufacturer.
Fairfield County is home to many Fortune 500 companies and a number of growing businesses. It is also a transportation and information corridor that plays a role in both the area’s economy and in homeland security.
Himes said that the stimulus law and the remaining bailout funds are not the end-alls and that continued investment in infrastructure is also needed. He applauded Obama’s creation of a public oversight Web site to show how stimulus funds are being spent and said several projects in Norwalk, including investments in transportation, are vital to the overall state economy
“I am confident Gov. [M. Jodi] Rell understands the importance of the I-95 corridor to Connecticut’s economy,” Himes said. “I look forward to breaking ground on projects in Norwalk and throughout the 4th District very soon.”
Himes also was recently named co-chair of a Democratic task force to lead an investigation into financial regulatory reform. He said he will be working throughout the year to monitor efficient money distribution.
“We are making sure we don’t put taxpayers’ dollars on the table for private benefit,” he said. “Most of my time in the next year will be about stabilizing the economy so we can produce jobs.”
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