Category: Massachusetts
Sen. Kennedy Returns to Washington Home
KENNEDY
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 28, 2008
WASHINGTON – Sen. Edward M. Kennedy’s office confirmed that the senator, who was diagnosed with brain cancer in May, returned to his home in Washington Tuesday.
Though it is unclear whether Sen. Kennedy will go to his office on Capitol Hill, a spokesperson confirmed that the senator will continue working from his Washington home.
While in his home in Hyannis Port, the senator was working to lay groundwork for health care legislation for next year’s Congress. Sen. Kennedy has been on the phones and holding teleconferences with his staff and other members of the Senate, the spokesperson said, and would continue those activities while in Washington.
Sen. Kennedy plans to stay in Washington until the Thanksgiving holiday, when he will return to Cape Cod, the spokesperson said. Sen. Kennedy, who has served in the Senate for 46 years, is still planning on making his official return to the Senate in January when the first session of the 111th Congress convenes.
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Local Presidential Campaign Donations Similar to 2004
ZIP CODES
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 27, 2008
WASHINGTON – New Bedford area contributions of $200 or more to presidential candidates have amounted to only slightly more in 2008 than they did in 2004.
In 2004, according to the Center for Responsive Politics, Sen. John Kerry and President George Bush received a combined $177,365 in contributions from the area. This year, New Bedford area residents gave Sens. Barack Obama and John McCain a total of $185,157 – an increase over four years ago of $7,792.
While the difference in total contributions may be minimal, the division between the Republican and Democratic presidential candidates has changed significantly. In 2004, President Bush received about $35,775 from local residents. Four years later, Sen. McCain received $64,454 through Oct. 15, an increase of nearly $30,000. This increase could indicate a shift in donation patterns for the area.
Freetown residents, for example, contributed more than $12,000 to Sen. Kerry, but in this election cycle have donated $3,301 to Sen. McCain and none to Sen. Obama. Similarly, Westporters gave only $650 to President Bush in 2004 but contributed more than $9,000 to Sen. McCain.
Most jurisdictions that gave primarily to Sen. Kerry in 2004 continued to donate to Sen. Obama, but there have been a few exceptions. Much like Freetown, North Dartmouth residents, for example, donated more than $12,000 to Sen. Kerry but only $700 to Sen. Obama through Oct. 15.
Kenneth Manning, a political science professor at the University of Massachusetts Dartmouth, said it was important to realize that patterns of campaign contributions could easily be skewed by one large donation.
“All it takes is one fat-cat business associate, a close buddy or somebody to write a check for two, three, four thousand dollars to skew this data in one small town,” he said.
Barney Keller, spokesman for the Massachusetts Republican Party, said he believes Sen. McCain’s political agenda and message are responsible for the increase in donations from area residents.
“John McCain has a history of reaching across the aisle to get things done,” Keller said via e-mail. “As a ‘maverick,’ he appeals to Republicans, Democrats and independents, which makes him well-suited to receive a lot of support of Massachusetts.”
Doug Roscoe, another UMass Dartmouth political science professor, said President Bush’s lack of primary competition also could have been a factor in his low contribution numbers.
“People didn’t feel like they had to come out and support George Bush in the primaries,” Roscoe said, “whereas John McCain fought a battle.”
Unlike Sen. McCain’s, Sen. Obama’s area-wide contributions have not surpassed what Sen. Kerry raised in 2004. As of the most recent presidential finance filing, Sen. Obama was trailing Sen. Kerry’s local numbers by about $20,000. However, Sen. Obama is not a hometown senator – a key factor, Manning said.
“The numbers are going to be somewhat skewed here because you’ve got a home state guy,” Manning said of Sen. Kerry. “It basically means that 2004 was somewhat of an outlier, not a typical election.”
Roscoe said he agreed, and added that Sen. Obama’s competitive primary race probably held down his contributions. In 2004, he said, every Democrat in Massachusetts was donating to Sen. Kerry, whereas this year, donations were spread between other Democratic candidates.
“There’s no clear home team,” Roscoe said, “so that’s obviously going to shift things a little.”
Some shifts have also occurred in the way money has been raised throughout Sen. Obama’s campaign.
“Clearly he raises significant sums from wealthy interests, but the bulk of money is coming from everyday folks, sending him $50, $100, $150,” Manning said.
According to the Federal Election Commission, Sen. Obama has raised $639 million for his campaign – with 90 percent contributed by individual donors. More than half of the individual contributions – $280 million – are coming in donations of less than $200, which don’t have to be reported to the commission.
The Center for Responsive Politics, which analyzes politics and money, does not factor donations of less than $200 into its statistics. Manning said factoring in the smaller donations for both Sens. Kerry and Obama would show that, even locally, Sen. Obama was “blowing Kerry away in terms of fund raising.”
In the final stages of the campaign, funds have kept flowing toward Sen. Obama. Since Aug. 31, Sen. McCain has received two donations of more than $200 from the New Bedford area totaling $701. Sen. Obama has received 44 large donations from the area, totaling more than $24,000.
That’s because Sen. McCain, by agreeing to accept public financing for the general election, has been barred from accepting individual donations since he accepted his party’s nomination on Sept. 4. Sen. Obama has chosen not to accept public financing.
Manning credited Sen. Obama’s overall campaign strategy for his financial successes.
“At the end of the day,” he said. “I think what’s driving Obama’s dollar figures is the passion that is underlying his candidacy.”
Nationally, Sen. Obama has surpassed Sen. McCain’s total campaign funds by more than $100 million. Even locally he has received nearly double the donations that his Republican counterpart has, continuing the area’s pattern of giving to Democratic candidates.
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Obama Leads McCain in Local Fundraising
WorcesterFEC
Worcester Telegram and Gazette
Rachel Kolokoff
Boston University Washington News Service
October 24, 2008
WASHINGTON – Democrat Barack Obama has raised far more money in Massachusetts than Republican John McCain, a trend also seen in campaign contributions in seven Central Massachusetts cities.
Through September, 335 residents of Worcester, Fitchburg, Leominster, Auburn, Shrewsbury, and Westborough made 1,173 contributions of $200 or more to Mr. Obama totaling $192,749. That amount is almost three times the $72,809 that 101 McCain supporters in those cities gave in 193 contributions of $200 or more in that same time period, according to campaign filings with the Federal Election Commission.
In Southbridge, alone among the seven cities, Mr. McCain out-raised Mr. Obama, collecting $7,650 from three donors to Mr. Obama’s $1,259 from five donors.
Throughout the state, Mr. Obama received $12.1 million in campaign contributions through August, more than triple Mr. McCain’s $3.6 million in receipts.
Beginning on Sept. 4, when he accepted his party’s nomination, Mr. McCain, who had agreed to accept $84.1 million in public financing of his campaign, could no longer receive private donations for his campaign; Mr. Obama, who opted out of the public system, continued to accept private contributions.
Thus, in September alone, Mr. Obama raised $58,054 to Mr. McCain’s $4,105 in the seven Central Massachusetts cities.
In Worcester 173 residents contributed 614 times to Mr. Obama’s campaign, raising $85,389 through September, almost half the total Democratic dollars raised by all seven cities.
“I truly believe in him and his platform,” said lifetime Worcester resident Rosemary Leary, who gave $1,250. “It’s time for a change.”
Ms. Leary, 59, said she often received e-mail messages from Mr. Obama’s campaign and felt it was urgent to contribute money and help ensure his election. As president, she said, Mr. Obama would help end the war in Iraq.
“I lived through Vietnam and I can’t do it again,” Ms. Leary said. “We've already lost thousands of young people, part of a future generation.”
Not all Worcester residents agree with Ms. Leary: 40 of them contributed 74 times to Mr. McCain's campaign for a total of $32,677 as of the end of September, according to the campaign’s filings.
Another lifetime Worcester resident, Wallace Myers, 78, contributed seven times for a total of $222, to Mr. McCain’s campaign. Mr. Myers said he received at least three solicitations for every contribution he made.
Mr. Myers, who described himself as moderate and informed about politics, said he thinks Mr. McCain is the better presidential candidate because Mr. Obama is too liberal.
“The Democrat is an ultra leftist, and I feel he would totally destroy the country, not that it isn’t in pretty bad shape as it is,” Mr. Myers said. “I wouldn’t trust him as far as I can throw him.”
Like Mr. Myers, Thomas Ardinger, who has lived in Leominster for 38 years, said he trusts Mr. McCain more than Mr. Obama when it comes to running the nation. Mr. Ardinger, who donated $500 to Mr. McCain, is one of 7 people in Leominster who contributed a total $3,865 to Mr. McCain.
“While the economy is important, the general position of character is something I look for in a presidential candidate,” Mr. Ardinger said. “I look for someone I can trust.”
Mr. Obama raised more than twice that amount in 47 contributions from 15 contributors in Leominster.
College of the Holy Cross professor David Schaefer said he is not surprised that Mr. Obama received more money than Mr. McCain in six of the seven cities because Republicans are a minority among Massachusetts residents.
“Like the state as a whole, though less so than Boston and its suburbs, Central Massachusetts leans Democratic,” Mr. Schaefer said.
In 2004, all seven of these Central Massachusetts cities, including Southbridge, voted for Democratic presidential candidate Sen. John F. Kerry. Even so, Southbridge residents contributed more money to President George W. Bush than to Mr. Kerry.
Keith Stone, a 46-year-old Fitchburg resident who retired last year, contributed 14 times to Mr. Obama’s campaign, giving a total of $640. Mr. Stone said Mr. Obama should be president because he will change current political policies.
“To have John McCain admit on TV that he voted 90 percent of the time with the president showed that voting for him is like asking for another four years of the same policies,” Mr. Stone said.
Mr. Stone said residents of Fitchburg, whose mayor may turn off certain streetlights to help manage the city budget, cannot afford four more years like recent ones. He and 18 other Fitchburg residents contributed $9,691 through Sept. 30 to Mr. Obama through 121 contributions, more than 12 times the amount given to Mr. McCain in the same period in that city.
But lifetime Democrats are not the only people supporting Obama. Professor Frank Minasian, chairman of Worcester State College’s Political Science Department, said some traditionally Republican areas in Massachusetts are becoming more Democratic.
Jonathan Carey, a 34-year Auburn resident who voted for Mr. Bush in 2004, said Mr. Obama will be the first Democrat he has ever voted for.
“I think the final straw for me with John McCain was when he picked Sara Palin, who I just don't think is qualified to take over this country,” Mr. Carey said. “It frightened me, and it should frighten everybody.”
Because he feels so strongly that Mr. Obama should be president, Mr. Carey has donated $189, his first ever political contribution, to Mr. Obama’s campaign, he said.
Mr. Carey also said he supports Mr. Obama because his policies will help end the war in Iraq and help the middle and lower classes financially.
“My wife and I adopted three little girls with special needs who are now teenagers,” Mr. Carey said. “A lot of the policies the Democrats are proposing are things that will help my family and my children, which is key to us.”
While Mr. Carey and 51 other Auburn residents contributed $4,616 to Mr. Obama, 6 Auburn residents contributed $3,711, or about 20 percent less, to Mr. McCain.
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Frank, Kerry Receive Perfect Marks in Environmental Issues
LCV RANKINGS
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 22, 2008
Frank, Kerry receive perfect marks in environmental issues
WASHINGTON – U.S. Rep. Barney Frank and U.S. Sen. John Kerry received perfect scores in the League of Conservation Voters annual congressional ranking for 2008.
The 2008 National Environmental Scorecard, released Oct. 17, provides a record of how members of Congress vote on key environmental bills. The League of Conservation Voters is a non- partisan organization that supports pro-environmental candidates.
This year, the organization identified 11 Senate and 13 House bills to use in tabulating the scorecard. Both Sen. Kerry and Rep. Frank voted with the league’s position on all of the bills. Last year Sen. Kerry scored 93 and Rep. Frank received 80.
All but one of the 10 House members from Massachusetts received a perfect score; Rep. William Delahunt (D-10th) received an 85 percent.
Rep. Frank said he was “very pleased” with the rating he received.
“I’m very proud of it and I think it shows we have a mutual understanding in the importance of conservation,” he said.
Josh McNeil, a spokesman for the League of Conservation Voters, said Rep Frank’s lifetime voting record of 92 percent was “one of the best in Congress.”
Sen. Edward M. Kennedy scored 36 percent, reflecting his absence for several environmental votes. In its tabulation of scores, the league counts an absent vote as a negative vote.
McNeil was quick to defend Sen. Kennedy’s score, pointing to his lifetime score of 82 percent as evidence of his support of environmental issues.
“He’s been a champion on our issues for a long, long time,” he said.
Sen. Kerry, who has a lifetime score of 96 percent, said in a press release last week that he was proud to receive his rating from the League of Conservation Voters and wanted to commend the league’s environmental efforts.
“LCV should be applauded for its work championing the protection of our environment,” he said. “Over the years we have worked together to stop drilling in the Arctic refuge, increase fuel efficiency of cars and trucks and reduce carbon emissions from power plants.”
McNeil said Massachusetts members of Congress have consistently received high marks on the scorecard.
“The entire Massachusetts delegation really leads the way on energy and environmental issues,” McNeil said.
Barney Keller, spokesman for the Massachusetts Republican Party, said the scores released by the League of Conservation Voters are not surprising because of the organizations’ public endorsement of Barack Obama for president.
“They’re running ads against John McCain,” he said. “For them to give 100 percent rating to another Democrat doesn’t really matter.”
In addition to its endorsement of several Democratic candidates, the League of Conservation Voters has thrown its support behind some Republican candidates. Of the nine senatorial candidates endorsed, one is Republican; of the 46 endorsed House candidates, 12 are Republicans.
The issues covered in the bills brought before the House and Senate range from clean energy tax credits to public land protection and subsidy reforms in the farm bill. In both chambers, the issue of offshore drilling was often a point of contention for several members of Congress.
In the House, Rep. Frank helped to defeat motions to allow offshore drilling. Similarly, Sen. Kerry voted against increasing offshore drilling areas. Despite both of their efforts, Congress allowed the moratorium on offshore drilling to expire at the end of September.
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Massachusetts Gets Boost in Home Heating Funds
MassHeating
Worcester Telegram and Gazette
Rachel Kolokoff
Boston University and Washington News Service
October 17, 2008
WASHINGTON - Massachusetts is receiving $213.5 million in federal funds to help low-income families heat their homes this winter, the U.S. Department of Health and Human Services announced on Thursday.
“These funds will help reduce the risk of health and safety problems exacerbated by the exposure to extreme temperatures,” said U.S. Department of Health and Human Services Secretary Mike Leavitt.
The money, an increase of $87 million from last year’s funding, is part of an omnibus spending bill the Senate passed in September for the fiscal year 2009.
Melissa Wagoner, spokeswoman for Sen. Edward M. Kennedy, D-Mass., said Mr. Kennedy is very pleased the money has been released.
“No family should have to make impossible choices between heating their home or putting food on the table or taking a sick child to the doctor,” Ms. Wagoner said. “These funds will ease that burden.”
Sen. John F. Kerry, D-Mass., said this funding will reassure families that help is on the way.
“This is welcome news for thousands of families in our state who have been struggling to make ends meet because of skyrocketing home energy prices,” Mr. Kerry said in a statement.
The omnibus spending bill gave $5.1 billion to the federal Low Income Home Energy Assistance Program for distribution among the 50 states and the District of Columbia.
Massachusetts’ $213.5 million includes some $50 million in contingency funds, which are distributed in times of need at the discretion of federal and state governments.
Mark Sanborn, director of energy resources for the Worcester Community Action Council, a non-profit organization that helps homeowners and renters with heating costs, safety and applications for assistance, said the state usually makes the contingency funds available immediately.
He said while he and others at the Council are pleased that the total funding has increased, they are anxious to know what formula will be used this year to determine who is eligible to receive those funds.
“We are on pins and needles waiting at this point,” Mr. Sanborn said.
The council started an outreach program in July where members traveled to senior centers and councils on aging urging people eligible under the current formula to apply and be certified before distribution begins on Nov. 1.
The current formula, Mr. Sanborn said, includes households with a gross income of up to 200 percent of the poverty level or $42,400. State officials are considering changing the formula to include households with a gross income of up to 60 percent of the median income level, or $51,252.
Under the current formula, the council has denied 308 of the 6,356 households that have applied so far this year, Sanborn said.
“And we’re still in October,” Jill C. Dagilis, executive director of the council said. “The real rush and flood will come as soon as it’s November and really cold weather strikes.”
Mr. Sanborn said that while state officials must specify which formula will apply by Nov. 1, they usually do so early enough to notify oil vendors, utility companies and others of any changes.
In addition to the $213.5 million in federal funding, the state has $11.5 million in unused contingency funding released on Sept. 21 for the fiscal year 2008, according to Phil Hailer, spokesman for the state Department of Housing and Community Development.
The state also approved in August the distribution of $10 million in state money for heating oil assistance for low-income families.
Mr. Hailer said his office is pleased that $213.5 million has been released, especially since energy prices increased so much in the past year.
“It’s great news to see this type of funding come for LIHEAP clients this winter,” he said.
U.S. Rep. James P. McGovern, D-Worcester, said the increase should make home heating a little easier for people already struggling to buy prescription drugs and food.
“This is something the New England delegation bas been fighting and lobbying for,” Mr. McGovern said.
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Democratic Politics Dominate the Life of New Bedford Resident
KAVANAUGH
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 16, 2008
WASHINGTON – In the weeks preceding Election Day, Gerry Kavanaugh’s time belongs to the Democrats.
“There’s no question, in even-numbered years, I don’t take a vacation,” he said. “I don’t have time.”
By day, Mr. Kavanaugh, 54, works at DCS Online Communications, based in Washington, offering up technological strategies to members of Congress, advocacy organizations and Democratic candidates across the country. But his efforts don’t end there.
During his time away from the company, when he is not commuting home to New Bedford, he volunteers for Barack Obama. The Dartmouth native helped organize a fund raising effort in New England that raised $1 million for the Obama campaign. Next week, he’ll head to the battleground state of Ohio, where he’ll continue campaigning for Obama.
“I have tried to devote as much of my personal time and also as much of the company time as possible to make sure that, one, we take back the White House and, two, that we increase our margins in both the House and the Senate,” Mr. Kavanaugh said.
There was a time, however, when his support was thrown behind Sen. Hillary Clinton (D-N.Y.). In fact, he worked “very hard” up until the senator ended her campaign. Not long after, though, he said he received a call from the Obama camp asking for his help.
“That normally doesn’t happen,” Mr. Kavanaugh said. “There were a lot of frayed nerves and a lot of angst between the two campaigns, but they called me immediately, and so I was very happy to start working for them.”
His support of Obama stems from a genuine belief that the candidate’s policies are in the best interest of people in cities like New Bedford. Mr. Kavanaugh and his wife, Colleen, still reside in New Bedford – they commute to Washington every week. Living in New Bedford, Mr. Kavanaugh said, gets him “back to the real world.”
“New Bedford is a very real place with real people with real problems,” he said.
Problems he said he hopes can be resolved if Obama wins. Until then, Mr. Kavanaugh and his wife, a partner at DCS, will continue their efforts to help members of Congress and Democratic candidates by providing internet and technological strategies.
Mr. Kavanaugh said the company, which he founded in 2002, does “all of the conventional things,” such as building and maintaining Web sites and databases for voter communication, as well as online advertising and Web videos. But they’re also moving toward new strategies.
“We try to do things that are actually new this election cycle,” he said. “We’re doing lots of what we call behavioral targeting, which is where we’re advertising with people based on what they read.”
And Mr. Kavanaugh tweaks his online ads to appeal to a niche demographic. In the same breath that he mentions the company’s efforts to target Democratic gun owners, he talks of attempts to cater to environmentalists.
The company’s varied audience is a reflection of its diverse clientele. DCS serves groups and people across the country, including House Speaker Nancy Pelosi (D-Calif.), Sen. Evan Bayh (D-Ind.) and Ohio Gov. Ted Strickland..
Back in his office, Mr. Kavanaugh showcases the Web site for one of his clients, Dan Seals, a Democratic candidate in Illinois’ 10th District. DCS manages the e-mail communications for Seals’ campaign and as Mr. Kavanaugh looks at the Web site, he mentions how impressed he is with the way Seals is using the Web.
As the page finishes loading, a miniature version of Seals walks onto the screen to greet the site’s visitor and briefly explain the candidate’s platform.
“Isn’t that awesome?” Mr. Kavanaugh asks after the miniature candidate has finished his pitch.
Seals’ Web site is just one example of how the company hopes Democratic candidates can harness new Web-based tools to turn the political tide in favor of the Democrats. According to company research, between one-third and one-half of people interested in politics turn to the Internet for information. The key, Mr. Kavanaugh said, is to grab their attention.
“We found that you’ve got about two or three seconds to get people’s attention and keep it,” he said. “So, you have to do creative, innovative things to get people interested and to keep their interest.”
Coming up with new ideas to keep the visitor’s interest never gets boring, Mr. Kavanaugh said. Despite the 80-hour work weeks he’s been keeping, he said he’s going to miss the energy of campaign season.
“I’m sort of disappointed that it’s going to end, because it’s fun every single day,” he said. “I look forward to it every day.”
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Federal Funds Add to New Bedford Efforts to Fight Foreclosures
FORECLOSURE
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 8, 2008
WASHINGTON – Two new federal foreclosure relief programs will help New Bedford’s efforts to deal with the home mortgage crisis.
The U.S. Department of Housing and Urban Development on Sept. 26 allocated $3.92 billion for its Neighborhood Stabilization Program. Five days later, HUD kicked off the Hope for Homeowners program. Both programs aim to alleviate the problems of foreclosures.
Patrick Sullivan, director of the New Bedford Office of Housing and Community Development, said the federal programs will provide resources to continue local efforts and initiatives already in place to fight foreclosures in the New Bedford area.
Foreclosure prevention efforts
The Hope for Homeowners program is a three-year initiative that will allow qualifying homeowners to refinance their mortgages. The new loan, insured by the Federal Housing Administration, would be for 30 years at a fixed rate.
The program aims to prevent foreclosure on up to 400,000 homes nationally over the next three years. Kristine Foye, spokeswoman for the New England region of HUD, said via e-mail that the success of the program depends largely on communication between lenders and borrowers.
Initiatives are already in place in New Bedford to collaborate with lenders, Sullivan said. Along with Fall River, the city began working with lenders two years ago to prevent foreclosures.
“We’ve been a little bit proactive on the local level working with these community banks,” he said. “We’ve formed a nice little collaboration with local lenders [and with] non-profits [on] the prevention side and educating everyone about what’s out there for assistance.”
Still, more work is needed beyond the local level, Sullivan said. Local banks, he said, do not hold a lot of properties facing foreclosure, so working with larger, national banks would be a necessary step.
“That will be a challenge for us to kind of reach out and work with those banks that are not local in trying to implement this new mechanism,” he said.
Sullivan said he hopes the Hope for Homeowners program would help overcome that challenge to allow banks to negotiate for a lower mortgage to help people remain in their homes.
“That’s something that’s beyond the control of local governments,” Sullivan said.
New Bedford Mayor Scott Lang said he believes the program would offer another tool for foreclosure assistance.
“It gives us the ability to rework these mortgages, provided that the lenders are in agreement with that type of approach,” he said. “I would think most lenders would be from the standpoint that they don’t want to end up with a vacant piece of property.”
Nationwide, 50 lenders had signed up for the program as of Wednesday, according to Lemar Wooley, spokesperson for HUD. As far as Sullivan knew, no local banks had signed up for the program.
Aftermath of foreclosures
The Neighborhood Stabilization Program is targeted at acquiring and redeveloping foreclosed homes. HUD allocated $54.8 million for Massachusetts, including $4.2 for Boston, $2.2 million for Brockton, $2.6 for Springfield and $2.44 for Worcester. The remaining $43.4 million will be divided among the rest of the state.
Sullivan said he had hoped his office would receive a direct allocation from HUD instead of vying for its share of the $43 million. As part of the preparation, Sullivan said, 25 properties were located that could be acquired quickly and turned around to be sold as rental properties or even homes for first-time buyers.
“We’ve been anticipatory of this funding and have put some things in place to help us be prepared to spend some of that money,” Sullivan said.
He said his office would be working closely with the state Department of Housing and Community Development “to ensure that we get some direct money.”
Phil Hailer, a spokesman for the state agency, said it is unclear how the funds will be divided. The state must submit an action plan to HUD by Dec. 1 explaining how the funds will be distributed, he said.
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U.S. House Members Vote for Senate Financial Rescue Bill
HOUSEVOTE
Worcester Telegram and Gazette
Rachel Kolokoff
Boston University Washington News Service
October 3, 2008
WASHINGTON - Members of Congress from central Massachusetts stuck by their “yes” votes on Friday as House members passed the Senate’s version of the financial rescue bill.
All agreed that passing the imperfect bill was better than doing nothing, which they said would only have caused further economic upset.
“The credit markets would further tighten and the people that I represent – even those who want me to vote ‘no,’ would be hurt very badly,” U.S. Rep. James P. McGovern said on the House floor Friday, before the vote.
Mr. McGovern said that he appreciates the sentiment of one of his constituents, who suggested that Wall Street businessmen “take a long walk off a short pier.”
Still, he said, acting based on that anger would not help any struggling homeowners, small business owners, or people desperate for loans.
“I want someone to pay a price – or to at least assume responsibility – for this economic mess before we do anything else,” Mr. McGovern said. “But while that might be good therapy, it’s not good economic policy.”
That is why Mr. McGovern supported the bill, he said, even though he would have preferred it contained strong bankruptcy protection, stricter limits on CEO compensation, an economic stimulus package aimed at helping working families and firmer pay-back provisions.
U.S. Rep. Richard E. Neal also said in an interview on Friday that the bill was necessary, despite its imperfections, because it would bring some stability to the markets.
Mr. Neal said that the bill contained other necessary provisions such as one to shield more than 20 million taxpayers nationwide from the Alternative Minimum Tax..
“The AMT legislation is welcome relief for tens if not hundreds of thousands of people in Massachusetts,” Mr. Neal said.
U.S. Rep. Niki Tsongas said in an interview on Friday that she was persuaded early on by Treasury Secretary Henry Paulson and Ben Bernanke that the legislation would help steady the markets.
“I think it’s very fortunate that today we had much larger numbers both on the Democratic and Republican sides, enough to pass the bill,” Ms. Tsongas said.
Mr. McGovern said in an interview on Friday that as late as Thursday night he was uncertain enough people would vote to pass the bill.
Mr. Neal said more people voted for the bill than he had expected.
Unlike the original House bill that failed on Monday, this bill contained sweeteners added by the Senate on Wednesday, including the three key ones:
· An extension of a number of tax breaks including business tax breaks for people using, producing and investing in renewable fuels
· A temporary increase in the limit on federal bank deposit insurance from $100,000 to $250,000
· An adjustment of the Alternative Minimum Tax, an income tax for the wealthy, to reflect inflation.
In a statement on Friday U.S. Rep. John W. Olver said no one is confident that the bill’s passage signals an end to legislation needed help the financial system.
“We will almost certainly be back next year to overhaul our financial regulatory system so the same practices that caused this crisis will not reoccur,” Mr. Olver said.
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Foreclosure Aid in Sight with ‘Hope for Homeowners’ Program
HOMEOWNERS
The New Bedford Standard-Times
Courtney Hime
Boston University Washington News Service
October 2, 2008
WASHINGTON – New Bedford residents fearing foreclosure could see relief with the implementation of a new federal program aimed to reduce the number of foreclosures.
The U.S. Department of Housing and Urban Development kicked off the Hope for Homeowners program Wednesday. The three-year program will allow qualifying homeowners to refinance their mortgages. The new loan, insured by the Federal Housing Administration, would be a 30-year fixed-rate mortgage.
The program aims to prevent foreclosure on up to 400,000 homes nationally over the next three years. Kristine Foye, spokeswoman for the New England region of HUD, said via e-mail that the success of the program depends largely on communication between lenders and borrowers.
“The final participation numbers will depend on lenders, and we encourage them to work with borrowers to determine if this program is right for them,” she said.
Homeowners may be eligible for the program if their total monthly mortgage payment accounts for 31 percent or more of their gross monthly income, if the home is the borrower’s primary residence and if the existing mortgage started on or before Jan. 1, 2008 with at least six payments made.
There is lingering concern that lenders might be reluctant to take part because they would lose money on the original mortgage.
Tanisha Warner, spokeswoman for Consumer Credit Counseling Services, a division of Money Management International, for example, said this could put lender participation in question.
However, she said, the losses suffered by participating in the program might be less than the cost of foreclosing.
“Most lenders do not want to foreclose,” she said. “In the long run, they would lose money anyway. This is just a way of taking a smaller cut and keeping someone in the home and guaranteeing the home is still on the books.”
HUD’s Foye said, “Everyone benefits when a lender doesn't have to take possession of a foreclosed house and try to sell it.”.
Nationwide, 19 lenders had signed up for the program as of Thursday, according to Lemar Wooley, spokesperson for HUD. He said the department is working to determine where the interested lenders are located and whom they serve.
Foye said she was unsure what impact the program would have on the New Bedford area specifically.
“We don't have an indication of how the program will impact local areas because it will really depend on how many people apply,” she said.
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McGovern Says He Would Vote for Senate Economic Bill
REVOTE
Worcester Telegram and Gazette
Rachel Kolokoff
Boston University Washington News Service
October 1, 2008
WASHINGTON - U.S. Rep. James P. McGovern, D-Worcester, said on Wednesday that he would vote for the Senate’s version of the $700 billion financial system rescue bill should it reach the House floor on Friday.
Despite its imperfections, he said, the bill would prevent an economic meltdown in which markets would tighten further or even collapse.
“All of us are angry at Wall Street and this culture of greed, but we are where we are, and I think it’s irresponsible to do nothing,” Mr. McGovern said. “We need to act, and hopefully there will be enough votes to get this thing passed.”
Mr. McGovern said one of the bill’s imperfections is the tax-break package the Senate added to the bill on Wednesday. The package, which Mr. McGovern said would add to the biggest government debt in U.S. history, includes tax breaks for people who spend on alternative energy, businesses and children.
“I would’ve liked it [the tax break package] more if it was paid for, but the Senate has decided not to pay for it,” Mr. McGovern said.
Despite that flaw, Mr. McGovern said, the inclusion of tax breaks for Main Street may give members who voted against the bill on Monday an excuse to vote for it on Friday.
At this point, he said, House members must vote up or down on the package to avoid more amendments that would stall the package further, forcing each chamber to vote again.
“You can’t do anything unless you stabilize the economy, and that’s what this rescue package is all about,” Mr. McGovern said. “We need to take the next two steps, which are putting in proper regulations so it doesn’t happen again and then talking about enacting an economic stimulus package that will meet …basic needs, including infrastructure.”
Since Monday Mr. McGovern has been in his district, speaking with community members and explaining the reasons why he voted for the bill on Monday and why he continues to support it.
“To be honest with you, it was good to be home and away from Washington for a couple of days,” Mr. McGovern said.
A spokesman for U.S. Rep. Niki Tsongas, D-Lowe, said the Democrats are expected to caucus Thursday to discuss the Senate bill in greater detail and build bipartisan support for it.
Tsongas, who voted for the bill on Monday, said then that bipartisan action must be taken as soon as possible to restore market stability.
“We will continue to keep working in a bipartisan way, in coordination with the Bush administration, to come up with a solution to alleviate this crisis,” Tsongas said.
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