Category: Spring 2002 Newswire
Congressional Web Sites Act As Conduits Between Members And Constituents
WASHINGTON, Feb. 06– Red, white and blue are the three primary colors on Congressman Barney Frank’s Web site. But there’s more to the site (www.house.gov/frank) than mere flag waving. On the left, a blue navigation bar flanks a page-long message from the Congressman; on the right is a photo of Mr. Frank on NBC’s Meet the Press. Links to recent speeches and press releases appear below Mr. Frank’s photo on the site’s home page.
“It’s my obligation to give [my constituents] information about what positions I am taking,” Mr. Frank said. “In fact· I will put my voting record on it. I don’t use it as a campaign tool. I put on the Web site illustrations of what I’m doing.”
Members of Congress have been slow to join the information age, but increasingly, they are using their Web sites to communicate directly with their constituents. Especially after last fall’s anthrax scare disrupted mail service to the Capitol, e-mail suddenly was no longer a luxury; it became one of the few lines of communication between congressman and constituent.
Senator Edward Kennedy agreed that the Internet improves the government’s connection to the people. “By searching government websites, citizens can access government services and find the information they need faster and more efficiently,” he said. “We should continue to take advantage of new technologies to achieve more responsive, informative and interactive government.”
Mr. Kennedy’s site is one of the few whose content is changed regularly. The site (www.senate.gov/~kennedy) has links to recent press releases, issue spotlights, streaming headlines, weather updates and the Web sites of Boston-area sports teams. Currently, the consumer can access streaming video of Mr. Kennedy’s recent speech at the National Press Club.
The Kennedy and Frank Web sites, however, were not singled out for awards of excellence, which may make them be typical of congressional sites, the bulk of which merit grades of “C” or lower, according to a study by the Congressional Management Foundation, sponsored by Pew Charitable Trusts. The study concluded that users “want congressional Web sites to be the conduits for congressional and legislative information, not the filters of it.”
No Web site of any member of the Massachusetts congressional delegation, in fact, received the foundation’s gold or silver mouse wards when those prizes were presented in late January. Mr. Frank’s page, however, meets the foundation’s basic criteria: easy navigation, up-to-date legislative and issue content and information geared to the needs and desires of the consumer. Additionally, the site is user-friendly, and Mr. Frank said he has not received a complaint about its accessibility.
In the foundation’s study, 90 percent of all congressional-related sites, including those for member, committees and leadership offices, received average or below-average grades. Only 2.5 percent of 605 sites merited an “A.” But even that was a slight increase over the results in a similar study two years ago. In all, 35 Web sites were deemed worthy of recognition.
“Next year, we expect to see a dramatic improvement,” said Brad Fitch, the foundation’s deputy director. “In the last week, over a hundred offices have called us to discuss improving their sites. I think the Senators recognize the value [of a Web site]. To be honest, they’ve been busy with other things. But they recognize that this is a valuable tool to improve constituent services and to provide information to the public. We’re getting overwhelmingly positive responses from Congressmen.
“We’re going to develop new criteria for next year, and we may raise our standards a little bit. But because it’s a new technology, we may have given Congress a little slack this year. An innovation for Congress that may have [reached] the private sector in 1998 may only be hitting Capitol Hill now.”
Mr. Fitch said new criteria for assessing Web sites next year could include a closer look at innovations and interactivity. Mr. Frank, however, said he does not expect to change his site greatly in the coming year. “I don’t plan to increase interactivity, but I think I’m pretty accessible in person,” he said. “If any constituent wants to see me, they can call the office and schedule an appointment.”
Congressman James McGovern, on the other hand, intends to spruce up his Web page (www.house.gov/mcgovern). Press Secretary Michael Mershon said a re-launch of the site is likely within the year. “In terms of content, [the new site] will be similar,” he said. “We’re hoping to make the presentation a little more attractive and easier to use. We’re going to beef up content.”
Mr. Mershon acknowledged that some of the links posted on the page are updated more frequently than others. But “the statements that are up there related to Sept. 11 continue to be relevant,” he said.
Senator John Kerry’s site (www.senate.gov/~kerry) offers constituents easy access through a useful navigation bar, including links to recent news, legislative issues and constituent services. It is one of the more visually agreeable sites among members of the Massachusetts delegation.
Mr. Frank is accessible via e-mail; directly and through a link on his Web site. “I write many of the responses myself,” he said. “No text goes out without my seeing it or approving it.” Mr. Mershon said Mr. McGovern also writes or approves all responses to constituent e-mails.
For most of the fall last year, e-mail was one of the few available outlets to contact congressional members. “After the anthrax scare on Capitol Hill, our postal service mail was suspended for several months,” Mr. Mershon said. “We tried to encourage people to correspond to us via e-mail. Now that mail service has been resumed, we’re getting mail from October.”
Researchers acknowledge a danger for members with inadequate sites: non-profit and for-profit organizations will compete with Congress as the “sites of first choice for people interested in the activities of Congress,” the foundation’s recent report said. The report gave mediocre grades to sites that promoted the boss instead of providing “useful and unbiased information [that] citizens, reporters, and advocates are seeking.” In addition, most sites failed to update their content regularly. “Some of the most embarrassing mistakes the Congress Online Project Team saw were offices that had not updated their bill sponsorship links to point to information for the 107th Congress. Many offices still pointed to 106th Congress bill sponsorship information, and some still pointed to 104th and 105th Congress information,” the report said.
Mr. Fitch said the foundation’s role is not to frustrate or condemn Congress but to encourage its members to design more polished and efficient Web sites for the consumer.
Written for the New Bedford Standard-Times in New Bedford, Mass.
Local Delegation Reviews Bush’s Budget with New Hampshire Concerns in Mind
WASHINGTON, Feb. 05--Members of New Hampshire's congressional delegation have pledged to introduce Granite State priorities - including a new access road to the Manchester Airport, the purchase of International Paper Co.'s lands for conservation and increased funds for low-income heating assistance - into President George W. Bush's $2.13 trillion budget proposal, which calls for substantial defense spending increases and another round of tax cuts.
"The president's budget reflects the extraordinary times the country is facing," John Sununu (R-NH), the vice chairman of the House Budget Committee, said. "He set his priorities in the State of the Union - homeland defense and security, getting the economy moving once again, and I think these will continue."
Now it's the members' turn to advance New Hampshire's concerns as they review the budget for the fiscal year that begins on Oct. 1.
"The [Manchester Airport] access road is one of the state's highest priorities," said Sununu, who expressed confidence the state will receive the necessary transportation funds.
Rep. Charles Bass (R-NH), also a member of the Budget Committee, pledged to keep the access road in mind when preparing the House's version of the budget.
"As a former member of the House Transportation and Infrastructure Committee, I worked to secure $12.2 million to enhance the state's access to its largest airport," Bass said in a statement. "This project will be important to the state's economy."
Sen. Judd Gregg (R-NH), a member of the Senate Budget Committee, pledged to get more money for the Low Income Home Energy Assistance Program (LIHEAP). He and other members of the state delegation are upset that this year's money for the program has not yet been made available, and Gregg is disturbed by the amount that Bush has included in his budget for next year.
"They have put a number in of $1.7 billion for LIHEAP [heating assistance], which was the number about three years ago, down from $2 billion, so I'll be working within the Budget Committee to see if we can't adjust that number upwards." Gregg said.
"This is a program that's important · in the Northeast," Gregg said, "especially for retired people who live on low income and have a real problem when their heating bills go up."
Bass said he would work to secure additional federal money from the Land and Water Conservation Fund to purchase an easement on International Paper Co.'s land in the North Country and dedicate part of the land to wilderness uses. Sununu joined Bass in pledging to work closely with Sen. Gregg to bring the land deal to fruition.
Bush's proposed budget would reduce Environmental Protection Agency spending by approximately $500 million. A spokesperson for the Environment and Public Works Committee, on which Sen. Bob Smith (R-NH) is the senior Republican, said the proposed cutbacks could potentially affect some environmental projects near and dear to the Granite State.
Smith, the only member of the New Hampshire delegation who does not sit on a budget committee, said he hopes the Senate will approve legislation he has introduced that would return to New Hampshire citizens "even more of their hard-earned money." His proposals include a ban on state commuter taxes, an end to collection of the federal income tax on tips and full deductibility of state and local property taxes from the federal income tax, he said in a statement.
Bass, in a statement, said that he is "concerned about the impact of the President's proposed budget on the federal deficit."
The Sept. 11 terrorist attacks erased $177 billion of revenues previously expected for 2002, the budget says, and spending to respond to the attacks cost an additional $31 billion. Changed economic and technical factors reduced the surplus by $1.345 trillion, according to the budget.
"If we are going to win this war, we must be prepared to invest in it," Smith said in his statement. "As a fiscal conservative, I continue to monitor the annual rate of growth for our federal budget."
Published in The Union Leader, in Manchester, New Hampshire
Snowe on Budget: Economic Stimulus and Controlled Spending, But More Local Support
WASHINGTON, Feb. 04--Senator Olympia J. Snowe pressed Tuesday for an immediate economic stimulus package, more federal spending for domestic programs that benefit Maine and renewed her push for a "trigger mechanism" that would control the level of government spending and taxes.
Snowe spoke at a Budget Committee hearing at which Office of Management and Budget director Mitchell E. Daniels outlined President Bush's "two-front budget" that focuses on homeland security and the war on terrorism, a focus that Snowe said she endorsed.
Snowe said that it's "essential to pass an economic stimulus package, especially as so many economists and the [Bush] administration have projected that we could double the rate of growth and produce thousands more jobs."
Addressing Daniels, Snowe advocated an immediate economic stimulus package to revive a sluggish economy. Snowe is putting forth a proposal which would provide "in excess of $17 billion through a displaced worker credit ($13 billion) to cover health costs and national emergency grants to states ($4 billion)," Dave Lackey, Snowe's press secretary, said in a press release.
Snowe also discussed with Daniels a budget "trigger mechanism" that would suspend the tax cuts that Congress approved last year if the government slides into deficit. The trigger idea is supported by Federal Reserve chairman Alan Greenspan, and was a major issue last year. Snowe, in collaboration with Sen. Evan Bayh (D-Ind.), intends to press for inclusion of the trigger in next year's budget.
"Last year, we based our budget on 10-year projections, and then saw $4 trillion evaporate in just one year," Snowe said. "The circumstance could not be anticipated. We can take a proactive, responsible stance that would control spending as well as tax cuts. I think it's an approach we should revisit."
Snowe said she agrees with the President's budget proposal for the most part, but she disagrees with the lack of federal funds for programs affecting Maine, such as Medicare, education and transportation.
Bush's budget allocates $190 billion to Medicare, but Snowe said that she wants to raise that number to $300 billion, especially to cover prescription drug programs.
"I intend to continue my effortsáto set aside $300 billion or more for a new [drug] benefit, and will do all within my authority to ensure this is the year Congress passes a new benefit," Snowe said. "Seniors can't defer their prescription drug bills - and Congress should not delay any longer on passing a new benefit."
Snowe also said she was "disappointed" that the $11.4 billion Bush's budget proposes for special education "falls short of the federal commitment to fund 40 percent of special education costs. States like Maine are staggering under the additional burden of special education."
Snow also expressed concern about the Treasury Department's projection of a substantial decline in national highway trust fund revenue that she said would hurt Maine's highway plans. She said she wanted to look at ways that the highway fund, financed by taxes on highway users, could be augmented out of the general budget.
"If [highway fund] revenues drop by one-quarter, as currently projected, states will measure the impact not only in delayed projects and reduced tax revenues but also in construction jobs," Snowe said.
Published in The Bangor Daily News, in Maine.
Keene Activists Protest Economic Summit
NEW YORK, Feb. 03--On Saturday morning in midtown Manhattan, surrounded by an estimated 25,000 people gathered to protest the World Economic Forum summit, Keene State College student Scott Bawden rubbed his hands together, blowing into them to stay warm in the chill.
"This is incredible, there's so many people here," said Bawden, 22, a sociology senior and campus organizer. Wearing baggy pants, a leather jacket, and worn sneakers, with bleached-blond hair tucked into a winter knit cap, Bawden may look like a typical college student but he doesn't sound like one.
"People want to believe the government is working for them when in essence it's actually working for the corporations," Bawden said.
Lisa Malloy, a Nashua native and a junior at Keene State College, agreed. "Politicians are puppets and they're in bed with corporations," she announces, shivering from the cold in her red fleece jacket and a flag draped over her shoulders. The "corporate American flag" designed by the anti-advertising magazine Adbusters replaces the fifty stars with the logos of Microsoft, McDonald's, Nike and other corporate entities criticized for labor or environmental practices.
At 5 a,m. Saturday morning, Bawden, Malloy and four friends left Keene for New York City to demonstrate their opposition to the global forum. "This is our opportunity to actually get out there and question," said Keene State senior Tiffany Karkman, who also attended the protests. "I needed a pep rally, and I needed personally to get out and put my money where my mouth is."
Among other issues, increases in defense spending, the Enron collapse, and subsequent investigations into corporate influence on government policy have made the students critical of how the federal budget is spent. "The money isn't going to the right places," Karkman said.
When the students arrived they knew traffic would be congested downtown, so they parked in the Upper West Side and took the subway to Columbus Circle. In the subway station the group was approached by police officers for smoking cigarettes and fined fifty dollars apiece. "We told them we were out of town and didn't know, but they took down all our information, they even asked us how much we weighed," Bawden said. By the time they reached the intersection of Columbus Circle at mid-morning there were already several thousand protesters gearing up to march to the Waldorf-Astoria hotel, where the global summit was being held.
Last November the Keene students helped organize a campus-wide rally on human rights and the war in Afghanistan. The success of that effort peaked their interest in attending the New York protests. With the help of the New Hampshire American Friends Service Committee, a Quaker organization that has been successful in organizing youth around social problems, the students attracted both support and criticism from classmates.
By noon, the packed intersection of Fifty-Ninth Street and Eighth Avenue was abuzz with energy as demonstrators converged for a weekend of planned marches and teach-ins against the World Economic Forum, a Swiss-based group of corporate representatives and world leaders. Since 1971 the group has met annually in Davos, Switzerland but last year's protests led organizers to relocate to New York. Flanked by shoulder-to-shoulder rows of riot police, the milling crowd of anti-corporate globalization activists had arrived through the efforts of coalitions with names like "Reclaim The Streets" and "Another World Is Possible."
The Keene students viewed the September 11th attacks as having largely discredited those who used violence as a political means.
"Non-violence is clearly the only way to go," Bawden said. However, the students also view those attacks as having pushed the American public further into an acceptance of government authority.
"I think September 11th forced [the American public] back into a box that we were slowly coming out of before·it forced us to 'consume, consume, consume' to rescue the economy," Bawden said. "I think it's easier for people to turn their back on environmental issues right now when their leaders are constantly telling them to reprioritize things in a corrupt way."
The issues that are discussed on the streets of New York are also being discussed in their classrooms, the students said. "A lot of teachers are very supportive of what we do," Malloy said.
One such teacher is Janaki Tschannerl, a resident faculty member in Keene State's sociology department who leads open-group class discussions, in which "she has a goal but allows us to reach that goal ourselves," Bawden explained.
Tschannerl taught in China and in American prisons, and arranges summer trips to her native India for students to see the effects of economic inequality. Bawden describes a friend's experience on such a trip, shaking his head in astonishment. "She couldn't believe what the conditions were like over there," he said.
Bawden hopes to bring the spirit of the protests back to Keene, where he says "political activism needs to be upped hardcore."
"Hopefully by coming here we'll have something to talk about when we get back and that'll get people more excited," Bawden said.
"I think people in my classes are interested, even if their opinions aren't strong enough to be here, cold and hungry," said Keene State junior Jenna Shales, who plans to discuss her experience at the protests in class on Monday.
"The most important thing on a campus is for people to think critically," said Karkman. "Most people walk around sporting their stereotypical Abercrombie gear·with their stereotypical mentalities," she said, referring to the apathy many campus organizers struggle with.
But Keene students believe their political activism has met with disapproval from some local residents. Kate Schultz, a junior at Keene State College, put a sign in her window with the lyrics to a Pink Floyd song, "Mother should I trust the government?" Neighbors asked her to remove the sign "because they were offended," Schultz said.
The violence that marred protests of major trade summits in Seattle, Washington D.C., and Quebec City were all but invisible at this weekend's demonstrations. There were only 39 arrests on Saturday, a small number for a relatively restrained gathering due largely to a change in tactics following September 11th. Out of fear of being branded "domestic terrorists," protesters kept a low profile and held to non-violent actions. By late afternoon, the police blockade and frigid air had succeeded in dispersing most of the protesters.
The students who spent their day to be "a face in the crowd," as Bawden put it, expressed optimism for promoting change.
"If people want there to be a change and enough people get together then change will happen," Bawden said. And by informing themselves and their classmates the Keene students believe that, as Malloy claims, "change is inevitable."
Published in The Keene Sentinel, in New Hampshire
Jeffords ‘Absolutely’ Sure on Party Switch (UPI)
WASHINGTON, Feb. 1 (UPI) -- Eight months after Vermont Sen. James Jeffords threw Washington into turmoil by leaving the GOP and handing control of the Senate to the Democrats, he said Republican stinginess with education dollars convinced him he "absolutely" did the right thing.
"Many people have asked me given everything that has happened, if I would do this all over again," Jeffords, now an Independent, said. "My answer is, 'absolutely.'"
"As Congress debates the economic stimulus package, the annual spending bills [and] a national energy policy, because of my switch, the Democrats have a seat at the table and will be part of the final decision-making process," Jeffords said.
"It is not that I believe the Democrats should get their way on every issue, or that the Republicans should get their way on every issue.
"My decision to become an Independent has forced all branches of government to compromise, to seek moderation, and to find a balanced consensus."
Jeffords criticized Republicans for stripping a provision to allocate $450 billion over 10 years for education from last year's budget. He also announced a new task force with Sen. Chris Dodd, D-Conn., to push an education agenda for very young children.
"It was a clear signal to me that the Republican leadership had no intention, nor need, to work with the moderate wing of the Party," Jeffords said of the budget experience. "Something radical needed to be done."
Republican spokesman Kevin Sheridan dismissed Jeffords' complaints.
"The president has put education at the very top of his domestic agenda," she said. "We're very proud of the leadership he's brought in finally bringing all sides together and achieving this historic education bill."
Bush signed the bill into law last month.
Jeffords' speech at the National Press Club in Washington comes three days before the Bush administration was set to release its budget for the next fiscal year. Bush has said he would dedicate vast new resources to the Pentagon and for domestic security -- leaving Democrats and some interest groups staring at the prospect of shrinking budgets.
In his response to Bush's State of the Union speech Tuesday, House Minority Leader Dick Gephardt, D-Mo., said the government must spend more on education as it sets new performance standards for public schools.
"We want to work together to recruit high-quality teachers and invest more in our schools while demanding more from them," Gephardt said.
Jeffords said that at least last year, the GOP was unwilling to compromise on education funding, leading to his famous decision.
"There was a feeling of extreme partisanship from those in the majority, almost a lust, with no reason for compromise," Jeffords said.
Published in The Bangor Daily News, in Maine.
Rhode Island Residents See New Landscape From Brownsfield Redevelopment
WASHINGTON, Jan. 31--Rhode Island will receive up to $4 million in the next four years under a new law sponsored by U.S. Senator Lincoln Chafee (R-R.I.) to clean up so-called brownfields sites badly polluted by hazardous chemicals.
The federal funds are to be used to restore and redevelop brownfield sites extending from Washington County through Providence.
"Whether it's office buildings, shopping-type establishments, restaurants or green spaces, the brownfields bill is a victory for the environment and a value to the community," Chafee said.
The Brownfields Revitalization and Environment Restoration Act, which Senators Bob Smith (R-N.H.), Harry Reid (D-N.V.) and Barbara Boxer (D-C.A.) sponsored along with Chafee-and which President George W. Bush signed on Jan. 11, authorizes $250 million a year for the fiscal years 2002-2006 to clean up polluted brownfield areas around the nation.
The new law provides funds to assess and clean up abandoned and underused brownfield sites, legal protection for property owners and money to augment state cleanup programs. It will also create a public record of brownfield sites and increase community involvement in site cleanup and reuse.
Brownfields are abandoned industrial or commercial properties where redevelopment and remediation have been delayed by environmental contamination and potential liability under the Superfund law, which holds prospective property owners liable for environmental hazards.
In Rhode Island, most brownfield properties were old mill sites located on the water. Their locations open doors to a host of community activities, but potential buyers are apprehensive about the potential liability associated with buying and restoring a site that may be polluted. The brownfields law places Superfund liability with the landowners.
The cleanup and redevelopment of these old industrial properties, including more than 60 sites already identified in Rhode Island, is intended to create new jobs, clean up the environment and protect small businesses from lawsuits.
"The brownfields bill is a very positive thing for the state, and it will help the economy. Most importantly, it will give people a place to live," said Susan Arnold, the chief executive officer of the Rhode Island Association of Realtors. "Currently, these sites are a blight on the urban core, and no one would want to live on them. Once they've been redeveloped it will be better for the economy and produce more affordable housing."
The money allocated to the state for brownfields revitalization "can't help but be a positive thing for the Rhode Island economy," she added, "This bill will allow the properties to get back on the tax roles, reduce hangouts for criminal activity and will help utilize the finite number of environmental resources we have in Rhode Island."
In the late 1980s, the North Central Industrial Parks in Lincoln, occupied by approximately 20 businesses, were filled with tall buildings, green trees and buyers eager to get a piece of the land. The buyers, however, were unaware of high levels of chemical contamination that threatened the lining of the buildings, hazardous chemicals that were polluting the water and the prospect of out-of-pocket expenses that they, as property owners, would have to incur, including legal fees, to ensure the safety of area residents. Years later, the North Central Industrial Parks were labeled an environmental and health hazard.
"This is a success story because there was zero activity in the park. And then in the early nineties we did four deals within a few years, and the activity in the park increased," said Michael Giuttari, president of NAI MG Commercial Real Estate Services in Providence. "The park now has no available lots or vacancy."
Because of brownfield liability concerns, valuable property is sitting idle and providing nothing to a city's tax rolls and might also encourage crime, Chafee said. "I know that the city managers and mayors around the country are very happy because anytime you have an abandoned site it's not generating property taxes," he said. "And when you put a building on an abandoned site -- depending on the value of that building -- that generates revenue to the community."
The Rhode Island brownfield sites currently being assessed for redevelopment are important in strengthening Rhode Island's economic status, those involved in redevelopment say.
"There are a lot of positives to that," Chafee said. "Here sits this old burnt-out laundry building that sits at the gateway to the community, and what a scare it is to look at. So maybe the cost of living is lower, but no one wants it."
Because of the attractive nature of the new law, potential buyers are starting to take notice, particularly of the ability to get financing, Giuttari said.
"What we deal with are existing buildings that have environmental problems. We need to define the problem, put a remediation plan in place, get covenant not to sue and then put a brownfield mark in place and begin financing," he said "What really needs to be done is to specifically define the environmental problems for the buyers. The buyer of the building then redevelops, tears down or starts from scratch with the building in an effort to produce a better park that has no available lots or vacancy."
The Rhode Island Economic Development Corp. has set up a revolving loan program for hazardous sites, which the federal Environmental Protection Agency has called a "model for the nation."
The YMCA of Greater Providence and Save the Bay became the first recipients of the revolving loan fund in December.
"Our goal with the brownfields loan is to get people out on Narragansett Bay," said Marvin Ronning, Save the Bay's director of project planning and administration. "Save the Bay is exploring a camp for educational programming infrastructure, and we are building a new educational facility and new vessel at Fields Point."
Fields Point, a bathing area before it was developed as a shipyard and, in part, as a construction dump, will be reclaimed with six acres of parcel property where a new education facility and habitat restoration project will be built and bay-friendly practices will be demonstrated, Ronning said.
"The brownfield loan specifically helps make the area safe, which is the remediation process, and helps in the building of the site," he said. "We are excited about the site because of its beautiful location and close proximity to Providence as an urban core. We are turning back to the community what was historically public access, and everyone recognizes the public value of this."
Written for The New Bedford Standard-Times in New Bedford, Mass.
Bush’s Proposal to Increase Defense Spending Could Lead to Big Bucks for Fairfield County’s Defense Industry
By Justin Hill
WASHINGTON, Jan. 30--President George W. Bush's proposal to increase defense spending could lead to big bucks for Fairfield County's defense industry.
"I think it's very important for the employees and the economy of the region," said Mark Prislone, chief economist at the Connecticut Dept. of Economic and Community Development in Hartford. "Since Connecticut does have a strong defense industry in its economic base, the consensus is that the Bush budget will only help Connecticut employers and their workers."
Fairfield County ranks first in the state in defense contracts awarded per capita, according to Prislone. In fiscal year 2000, Fairfield County was awarded $847 million in defense contracts. Connecticut received about $2.2 billion, about 2 percent of the Defense Department's of total contracts with all 50 states.
Bush announced his proposal during his State of the Union speech on Tuesday. His budget will be announced on Monday.
"We will see the benefit of [Bush's defense proposal] to the Connecticut economy," Rep. Jim Maloney (D.-Conn.) said Tuesday. "I think the defense budget will be a plus for Connecticut."
Many defense companies are located in Connecticut, including Stratford-based helicopter manufacturer Sikorsky Aircraft Corp. and Norden Systems, which is headquartered in Norwalk.
"It's anticipated that the company is going to benefit. We are anticipating good things to come," said Fran DiMeglio, spokeswoman for Norden Systems, which employs about 500. The company, which makes radars and is a unit of the electronics systems sector of Los Angeles-based Northrop Grumman, is one of the largest defense companies in Norwalk. The business does $100-500 million in sales, Prislone said.
Bush's defense spending proposal "certainly will benefit the economy," said Katie Levinson, spokeswoman for Rep. Christopher Shays (R.-Conn.).
Defense spending has been sluggish in Connecticut in the past few years, Prislone said. But a decade ago, when the state was more dependent than it is today on defense production, "the Connecticut economy was hit hard by the last recession. Since then, he said, "we had diversification of our industries," and Connecticut is now less dependent on defense spending.
In his State of the Union speech, Bush promised to spend whatever amount it takes for the United States to defend itself.
"It costs a lot to fight this war. We have spent more than a billion dollars a month, over $30 million a day, and we must be prepared for future operations," the president said. "Afghanistan proved that expensive precision weapons defeat the enemy and spare innocent lives, and we need more of them. We need to replace aging aircraft and make our military more agile to put our troops anywhere in the world quickly and safely."
Connecticut's congressional delegation hailed the president's call for an increase in defense spending, but some called for Bush to keep long-term objectives in mind.
"I think defense spending falls quite literally in the category of emergency spending," Maloney said. "The issue is whether we have a plan in the long term to return to fiscal responsibility. We always have to be flexible for emergencies, but that gives us no right to abandon fiscal responsibility."
Published in The Hour, in Norwalk, Conn.
Congressmen Bet on the Super Bowl
By Kelly Field
WASHINGTON, Jan. 30--For Congressman Marty T. Meehan, D-Lowell, there is more at stake in Sunday's football game than honor, glory and a Super Bowl title. There is a case of beer as well.
Meehan, an avid Patriots fan and 22-season ticket holder, took up the gauntlet House Minority Leader Richard A. Gephardt, D-MO threw down yesterday, waging a case of Sam Adams beer and a gallon of Legal Seafood's New England clam chowder that the New England Patriots will win on Sunday in New Orleans. Gephardt countered with a case of Budweiser beer, a supply of Gus's Pretzels-made in his district--and toasted ravioli on behalf of the favored St. Louis Rams.
"The Republican House leadership underestimated our ability to get 218 signatures on the campaign finance reform discharge petition," Meehan said. "I went to Pittsburgh and watched as the Steelers underestimated the Patriots. And I will be there to watch the St. Louis Rams make the same mistake."
Referring to Rams general manager Charley Armey--and implicitly to House Majority leader Richard K. Armey, R-TX--Meehan quipped that it "really hurts to see the Minority Leader working with Armey."
Gephardt assured him that the game "was probably the only issue I've ever been able to agree with Armey on."
Meehan, in turn, said he hoped that the pretzels "aren't the ones you sent to the President."
Meehan wasn't the only Congressman to bet on the Super Bowl. Senators Edward M. Kennedy, D-MA, and John Kerry, D-MA, took on Missouri Senators Kit Bond and Jean Carnahan yesterday, waging a traditional New England clambake from Legal Sea Foods that the Patriots will triumph. If they win, they'll get Ted Drewes Frozen Custard, a St. Louis specialty.
"The Rams have an excellent team, and their quarterback was the league MVP," Kennedy said, "but we all know that having two great quarterbacks is better than one."
Said Senator Kerry: "Custard?"
Published in The Eagle-Tribune, in Lawrence, Mass.
Tales of Lost Life Savings Deja Vu for One
By Kelly Field
WASHINGTON, Feb. 07--For Karl Farmer, a former Polaroid Corp. employee, the tales of devastated employees losing their life savings in a company's catastrophic collapse were deja vu. He lost $210,000 in similar circumstances not too long ago.
Farmer's story, which he told to the Senate Health, Education, Labor and Pensions Committee yesterday, resembles that of many Enron employees. He joined the company 30 years ago, picking it for its progressive attitudes toward minorities and its reputation as a "family company with a caring upper management." Until 1998, he invested 2 percent of his pay in the Polaroid 401(k) retirement plan, receiving a matching contribution from the company.
Then, in 1988, Polaroid began a mandatory employee stock ownership plan (ESOP) plan that required him and other employees to contribute 8 percent of their salary to the plan. Before long, all of his retirement money was tied up in Polaroid's ESOP shares and in Polaroid stock.
But it wasn't until last August, when he was laid off, that Farmer realized the dangers of not diversifying, he said yesterday. The day after he was supposed to receive his first severance payment, Polaroid declared bankruptcy. He was left, as he said, "unemployed, with no benefits."
"I had to break a lease and vacate my apartment," Farmer recalled. "I had also taken out two loans on my 401(k) plan, and I will now be unable to pay those back." A few days later, he said, Polaroid decided to liquidate the ESOP plan. His 3,500 shares, worth $210,000 at their peak, were sold for about $300. A letter signed by Gary DiCamillo, Polaroid's chief executive officer, said the liquidation was "in the best interest of participants in the fund."
Now, Farmer and other disenfranchised former company stockholders are doing what many Enron employees are doing: trying to get back what they can. They've made some progress: The entire Massachusetts delegation has sent a letter to DiCamillo denouncing Polaroid's actions, and recently, the Official Committee of Retirees of Polaroid, which Farmer chairs, was recognized by the bankruptcy court.
Published in The Eagle-Tribune, in Lawrence, Mass.
Local Congressmen Work to Strengthen Retirement Account Protections for Workers Nationwide
By Kelly Field
WASHINGTON, Feb. 07--As former Enron Corp. employees struggle to recover savings they lost in the company's financial implosion in December, local Congressmen are working to strengthen retirement account protections for workers nationwide.
U.S. Senator Edward M. Kennedy, D-Mass., is one of several Congressmen who are crafting legislation to safeguard pensions against another Enron. At a hearing yesterday before the Senate Health, Education, Labor and Pensions Committee, he called the Enron debacle "a crisis of corporate values" that "demonstrates the urgency of reforming 401(k) [pension] plans."
"It is wrong--dead wrong--to expect Americans to face poverty in retirement after decades of working and saving," Kennedy said.
Massachusetts has experienced similar catastrophes in recent years, Kennedy said, citing bankruptcies at Lucent Technologies and Polaroid Corp. In both cases, workers lost millions in retirement funds because they had over-invested in company stock, he said.
"Enron is not an isolated example," Kennedy said. "The retirement security of workers at many other major companies has been similarly undermined."
As evidence, Kennedy produced Karl Farmer, a former Lawrence resident and Polaroid employee who lost $210,000 in Polaroid's collapse last summer. In testimony, Farmer described how he lost his retirement savings by being forced to invest too heavily in company stock and urged the committee to change the pension law "to allow employees some control of their destiny." (See sidebar.)
Senator Judd Gregg, R-N.H., the committee's ranking minority member, committee, agreed that reform was needed, but admonished Congress not to "throw the baby out with the bathwater" and impose too many restrictions on employee investments in company stock. Senators Barbara Boxer, D-Calif., and Sen. Jon Corzine, D-N.J., have proposed legislation that would prevent employees from investing more than 20 percent of their 401(k) retirement funds in company stock. They say a 20 percent "diversification requirement" would have saved much of the retirement money of Enron employees.
"Why should we arbitrarily tell employees that they have to sell company stock?" Gregg asked yesterday. "I thought sound financial principle was that we allow investors to make their own decisions."
On average, Enron stock made up about 62 percent of its employees' retirement portfolios. At some companies, such as Procter & Gamble Co., company stock makes up as much as 94 percent of employees' pension plans. About 42 million American workers own 401(k) accounts with about $2. in assets.
Congressman John F. Tierney, D-Salem, also participated in Enron pension reform hearings this week before the House Education and Workforce Committee, on which he sits. And Senator John F. Kerry, D-Mass, is a member of the Commerce, Science and Transportation Committee that has subpoenaed former Enron chairman Kenneth Lay. Lay had been expected to testify on Monday, but backed out late Sunday, citing "prosecutorial" and "inflammatory" statements about Enron by some committee members on Sunday news shows.
The Senate Judiciary Committee, of which Kennedy is a member, also weighed in on Enron this week, considering legislation that would make it easier for shareholders to sue to recoup losses. Critics say the law unfairly shields accounting firms like Enron's accountant, Arthur Andersen, from liability in civil lawsuits.
At the Kennedy, Gregg and Tierney pension hearings, the bulk of the conversation centered around President Bush's proposed Retirement Security Plan. It would give employees greater freedom to sell company stock and require that employees be given 30 days' notice before the beginning of any blackout period during which stocks in a 401(k) account could not be traded. It would also bar senior corporate executives from selling company stock during times when workers are unable to trade in company-contributed stock they hold in their 401(k) plans. At Enron, company executives cashed out on millions of dollars in company stock while Enron workers were forced to sit idly while their stock devalued and their savings were lost.
Bush also urged the Senate to pass the Retirement Security Advice Act, which Tierney's Education and Workforce Committee passed last year. The act would encourage employers to provide their workers with qualified financial advisers, according to Labor Secretary Elaine L. Chao, who testified before the committee Wednesday. Bush has charged Chao, Treasury Secretary Paul H. O'Neill and Commerce Secretary Donald L. Evans with leading a task force on retirement security.
"As the President said, a good job should lead to a secure retirement," Chao said.
Yesterday, before Tierney's committee, Cindy Olson, Enron's executive vice president of human resources and Mikie Rath, Enron's benefits manager, both endorsed the proposed reforms while saying that they could not comment on the reasons for Enron's collapse.
Tierney said that Bush's plan was "good so far as it goes" but called for additional steps to offset the "asymmetrical effects of corporate mismanagement: Executives vote themselves huge raises while workers' benefits go down the drain."
Tierney also said Bush's plan didn't go far enough to ensure that workers are able to obtain unconflicted advice about investing their retirement funds.
Kennedy criticized Bush's plan for not requiring the investment diversification that the Boxer-Corzine bill would mandate.
Meanwhile, Congressman Charles F. Bass, R-Peterborough, a member of the House Energy and Commerce Subcommittee on Oversight and Investigations, spent the week interviewing William C. Powers, the author of a scathing report by an Enron internal review committee and attempting to interview Enron employees. The Powers report blamed Enron's collapse on a "fundamental default of leadership and management" extending up to former chairman Lay and Andersen managing partner Joseph Berardino.
Yesterday, the subcommittee invited several senior Enron employees involved in crafting the controversial partnerships that led to the company's demise to testify, but most of them declined, invoking their constitutional protection against possible self-incrimination.
During opening statements yesterday, Bass said of the Enron collapse, "The more we learn, the more nauseating the whole story becomes." The subcommittee, he said, was charged with determining "how much illegality occurred and what we can do to ensure that the tragedy perpetuated by these business cowboys never happens again."
Published in The Eagle-Tribune, in Lawrence, Mass.
