Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts

December 2, 2010

Limbaugh botches Bristol "bailout"

I didn't listen to Rush Limbaugh today, but apparently the radio legend bashed Bristol a bit for allegedly receiving billions in federal bailouts.
Of course, anyone who knows Bristol understands that the charge is ludicrous. Bristol doesn't have anything to bail out with billions. Millions maybe, but billions? Never.
What happened is that Limbaugh relied on a badly written news story somewhere that lumped Bristol in with those who got bailouts because its pension fund had invested some money in a program to help kick start the economy back when credit had dried up.
The investment in a tiny way helped get the economy moving again during the worst days of the recession and wound up making a profit.
But it was peanuts in the scheme of things.
T.J. Barnes, the city GOP chair and pension guru, said that Bristol didn't get a single dollar in bailout money.
Barnes said that Limbaugh, who apparently repeated his charge a few times during his three hour show, was simply wrong.
He said he tried to call in to let the guy know, but couldn't get through.
I don't even want to begin trying to explain the financial ins and outs of what the pension fund did. Just know that it made a little money and is still among the nation's best funded plans.
So, Rush, if you're seeing this... you should check the facts. You blew it, big guy.
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Copyright 2010. All rights reserved. Contact Steve Collins at scollins@bristolpress.com

April 26, 2010

Dodd hopes for bipartisan financial bill

During a stopover at the state Capitol this morning, U.S. Sen. Chris Dodd said there is "a very strong likelihood we'll have a bipartisan bill" to regulate the financial industry.
Dodd said there will be a vote later today on whether to begin debate on the issue. He said he hopes there are 60 votes to let the discussions get underway.
Dodd, who is meeting with Republican counterpart Richard Shelby at 1:30 this afternoon, said that clamping down on the excess of financiers "shouldn't be a partisan issue."
Dodd said that 18 months ago, when Wall Street imploded, the government was left with no option except for the controversial bailouts begun under President George W. Bush.
If it happened again today, he said, the results would be the same.
"We have not changed a thing," Dodd said.
But the regulations proposed in Dodd's bill would change everything, the senator said.
Dodd, the senior Democrat from Connecticut, said that once the measure becomes law, there will be no more bailouts.
"If you fail, you fail" under the new proposed rules, Dodd said.
The regulations set rules for exotic financial transactions such as derivatives swaps, he said.
Dodd said that if the Senate agrees to take up the bill, "then we begin the slog through the legislative process" to fine-tune the measure.
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Copyright 2010. All rights reserved. Contact Steve Collins at scollins@bristolpress.com

March 2, 2010

A look back on the effort to save the Press

With a new CPTV documentary airing this week, I've been thinking quite a bit about those strange couple of months at the end of 2008 when it appeared The Bristol Press might close down forever. The documentary captured some of that on film, though it wound up focusing more on the future of newspapers since, of course, the Press remains open.
We beat on a lot of drums in November and December of 2008 in the hope that by creating a stir, a buyer for The Bristol Press might emerge. That the strategy actually worked is still kind of astounding to me. Michael Schroeder, who bought the paper (and the New Britain Herald, too), entered the picture because he read Dan Barry's brilliant piece about our plight in The New York Times -- a piece that got written because of all the attention we stirred up in Connecticut, Barry's old stomping ground.
A key part of what happened was the effort we made to get state officials involved -- the so-called "newspaper bailout" bid that was never anything like it got portrayed. But we (reporters Jackie Majerus, Adam Benson and yours truly) really couldn't stop the bailout focus -- though we tried. Even so, maybe it was just as well because it helped spread the story across the globe, which meant that it came to the attention of more people.
One thing that we never said at the time was that I wrote a memorandum to the state's commissioner of economic development that became a sort of blueprint for what the state tried to do to help. When state officials and legislators met behind closed doors, they read it -- and acted on it, too, to my great joy. The memo had to be secret then because I ripped into the company that was still paying my salary.
Now, though, there's no reason not to share it, because the memo does capture the truth of what was going on. I'm not sure that journalists would generally agree that writing secret memos to state leaders is fine, but I would counter that watching helplessly as an evil company shutters 13 newspapers surely isn't fine either. So we did what we did. And I think the results make it pretty clear that it was the right thing to do.
I really have no doubt the Press and the Herald would not have survived if we'd just gone along doing nothing more than our daily quota of community journalism.
Anyway, here's the memo:
December 4, 2008
Memorandum about the Bristol Press and New Britain Herald
To:  Joan McDonald, Commissioner of the Department of Economic and Community Development
From: Steve Collins, Bristol Press reporter
Subject:  What you can do to help preserve Central Connecticut’s newspapers

Let’s say the most important thing right up front: We don’t want a bailout.
What we want instead is the assistance of the many astute development officials in the state government to help identify potential buyers for these papers and to pinpoint what existing programs and policies might prove beneficial to a new owner.
Without that helping hand, there is a good chance that two important dailies and 11 weeklies in Central Connecticut will close on Jan. 12, leaving a number of communities without any source of news, putting more than 100 employees on unemployment and undercutting any number of local businesses that depend in part on the newspapers.
The background on this issue is straightforward. In the mid-1990s, the Journal Register Co. bought The Bristol Press, The Herald in New Britain and a number of weekly newspapers in Central Connecticut. At the time, most of them were profitable to a degree almost unimaginable today. After 14 years of JRC ownership, all of the papers are struggling and most of them are losing money, or so we’re told.
Let’s address the reason why the papers are struggling, because that is the root of the business criteria that must drive what you do now.  The JRC’s former management believed that by paring expenses at every opportunity, it could maximize profits. But what happened instead is that almost every step the company took to raise profits instead drove away both readers and advertisers, from switching its dailies to morning delivery to dumping the traditional broadsheet design in favor of a tabloid style. It added a Sunday paper, The Herald Press, without adding any staff at all to give it substance, serving merely to weaken every one of its papers every day. Those of us who worked in the trenches saw calamity after calamity, with everything from customer service to circulation slashed in misguided, nonsensical attempts to turn things around.  It’s taken 14 years at The Bristol Press, but the results of the company’s experiment are clear: Eventually, cutting service and ignoring customers leads to losses rather than profits.
Now we hear daily that people can’t get their paper delivered at home, can’t get their letters to the editor printed, can’t get their church or group announcements into print, can’t get even get their advertisements done right. The management of these papers has created a system so inept that many of the things newspapers have always done, from editorials to fire calls, have simply fallen by the wayside.
It doesn’t have to be this way.
We know that the halcyon days of newspapers are gone, perhaps forever, but they can still make money while performing a crucial public function. There is no reason to shut their doors, fire 100+ workers and turn off the lights.
What’s needed to turn them around? Nothing more than a chance to let employees do their jobs under management whose aim is to respond to the public, treat workers with respect and take seriously its role as guardians of the First Amendment. Treat the community as a partner and it will be. Treat it as a place for plunder, as the JRC did for years, and the trust that is the linchpin of a successful paper is undermined.
I was lucky enough to get to know a great old newspaper publisher, Bart Barnes, during his last years.  I know that his success went far beyond making some good money for The Bristol Press. He championed Freedom of Information in Connecticut. He pushed for Bristol to get good roads, good schools, new development and so much more. He was an active, interested participant in almost everything that happened in his hometown and in the newspaper world for well over half a century. But Bart was not just a crusader, not just a businessman. He was also a journalist. I remember how proud he was that his story of what happened in Bristol during the 1955 Flood made it onto the national Associated Press wire, even if they mistakenly attributed the piece to his brother. He cared about the news. His successors at the JRC don’t even know what news is all about.
Perhaps the era of Bart Barnes is gone, but the paper he shepherded is not. The JRC’s former management tried in so many different ways to undermine it that it’s a little hard to believe the Press remains alive and still relatively vibrant for something that is a shadow of what it should be. We still serve as a watchdog, still deliver hard-hitting and important stories, still make sure that what’s important to Bristol is in the paper. The Press is, despite the company’s efforts, not dead and it’s not a trifle from the past that can be tossed aside.  Don’t let the JRC, which did so much to wound this valuable community institution, turn around now and kill it.
What can you do?
To begin with, get involved.  Talk to the JRC’s executives today who are perhaps trying to make the best of the terrible situation they inherited. Talk to the broker in New Mexico who’s trying to sell the paper. Look at the books with a steely eye and see if the numbers presented for the papers that are slated to close – and those that might remain open – actually show the dire situation claimed by management. Consider that newsprint, the most costly part of a paper, is likely going to come down in price quickly in the coming year, helping to cushion the blow of a recession that’s been especially hard on America’s newspapers. And then go out and see if you can find potential buyers because the JRC is unlikely to be doing anything much to round them up on its own. It’s barely afloat at all given its huge debts. Talk to community leaders who might be interested in the role Bart once held. Talk to competing newspapers that remain true to their ideals, such as the Journal Inquirer, the Record-Journal or the Republican-American. Talk to newspaper companies such as Hearst, Tribune and Gannett. Talk to the paper’s own employees and see if perhaps a nonprofit or an employee-owned enterprise could be created to keep them alive. Search for a buyer wherever you can because jobs are at stake, yes, but also because the very soul of our communities is at risk.
Scour the existing programs that Connecticut, Bristol and New Britain can offer to potential buyers, the sorts of incentives and tax breaks that businesses are routinely allowed in order to create or preserve good jobs here. Find the ones that might matter, the programs that might induce a wary buyer to take the chance. This isn’t charity or a bailout. It’s what Connecticut does for businesses that want to be here rather than somewhere else, or simply gone.
I recognize that in speaking so candidly, I’m sticking my neck out, and everything I’ve seen from the JRC for years makes me wonder if I’ll still be around to collect the pathetic little severance package promised to workers who remain on Jan. 12. But this isn’t about what’s best for me. It’s about saving something integral to the functioning of a large region of our state, not just preserving two daily papers and 11 weeklies that are crucial parts of their communities, but pumping life back into them – and partly through that effort, pumping life back into places that face a dire future without a paper to rally them to greater heights.
The Bristol Press, The Herald in New Britain and these weeklies deserve better than to be struck down by a company that drained them for years and now wants to discard them. With assistance, they can be what they always were: the voice of the people, the conscience of the community, the sounding board for cranks and kingpins, the preserver of our history, the path to our future, the most crucial element of our democracy.
This effort isn’t just about lending a hand to some little papers that are easily overlooked in the mad rush of day-to-day living. It’s about securing a path for the flow of information that government and society depends on. And while the Press, the Herald and the weeklies may be the first targeted for closure, they won’t be the last unless we collectively find a way to keep this valuable gift from our ancestors thriving.
Connecticut, where America’s oldest continually operating newspaper is still pumping out pages, should not now be the spot where American journalism begins to die.
We don’t need a bailout to remain in business. We don’t need the taxpayers’ money. We only need a helping hand and some hard work from the people we pay to do just this for us.
I’m not alone in saying thank you for anything you can do, for the papers, their towns and the people of Connecticut.
Note:  There are many stories and links on my Bristol Blog at www.bristoltoday.com that go into many of the issues involved in much greater detail. Here are a few worth noting:
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Copyright 2010. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

February 10, 2009

Larson: Time for greedy Wall Street CEOs to go

New statement issued by U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:

LARSON CALLS FOR NEW LEADERSHIP ON WALL STREET

Washington, DC – Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus released the following statement today.
“We need new leadership on Wall Street, leadership of a higher caliber that can be trusted with taxpayer money. We need leadership that understands the value of a dollar to the average American. We need CEO’s that don’t spend obscene amounts of money on personal luxuries and bonuses while their actions have caused millions of Americans to lose their homes, their jobs and their health care.
“To date, few of those who got America into this economic crisis have been required to take responsibility for it. In fact, they have continued to make it absolutely clear that they are incapable of restoring the viability and integrity of our financial system. Therefore, it is time for the CEO’s of Wall Street’s crippled financial institutions to pack their bags and go.
“Because of this financial crisis, Americans are being forced to put their trust in corporate leaders more than ever before. They must trust that these CEO’s and top executives will do the right thing to restore the economy, create new jobs and begin lending again. The current leaders on Wall Street are not the people to do this.
“If Americans are going to invest billions more in public and private funds they must know that money is going to responsible actors who will restore our financial system and not to those who have failed us already.”
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Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

January 21, 2009

Larson: Congress taking steps to make bailout recipients more accountable

Press release from U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:

LARSON: TARP ACCOUNTABILITY IS BEGINNING OF NEW ERA OF GOVERNMENT TRANSPARENCY
WASHINGTON, DC – The House of Representatives approved legislation today that would put strict accountability and reporting requirements on the money spent under the Troubled Assets Relief Program.  Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus said:
“The Bush Administration wholly mismanaged the first $350 billion in TARP money that Congress entrusted to them to rescue our financial system.   They began by spending the money contrary to the clear intent of Congress.  And, they gave it to company’s who offered no record of how taxpayer’s money was spent.  Now, we will do better.  
“With President Obama in the White House we will usher in a new age of transparency and honesty.  And, the first step in that is ensuring that the additional TARP money will be used to revive our financial system, not pad the pockets of high-paid executives. We must make sure that the American people understand how every penny is spent and what they get out of it.  
“The legislation that passed the House today will require reporting from the financial institutions that receive TARP money.  We limited compensation for the top executives of these firms.  And, we require that a substantial portion of the money be directed at the root of our economic problems – the housing industry and foreclosure.
“I believe it is also important that we take this opportunity to look back at how our financial system collapsed and what we can do to make sure it never happens again. That will mean taking a close look at the corporate culture and regulations that created this crisis.
“With the Obama Administration at the nation’s helm I am confident that we will work in the best interest of the American people by ensuring the utmost transparency and accountability not just in the TARP program and our economic recovery, but in everything we do.”
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Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

October 23, 2008

Visconti takes aim at Larson in Thursday debate

WEST HARTFORD – Republican congressional contender Joe Visconti came out swinging in a one-hour debate Thursday with the 1st District’s long-time incumbent, Democrat John Larson.

Visconti, a West Hartford town councilor, said the $700 billion Wall Street bailout bill that Larson backed recently “a major mistake” that undermines the Constitution with its heavy government intrusion into the private sector.

“It’s what had to be done,” Larson responded, in order to ensure that companies large and small could access the credit they need to function.

At the debate sponsored by the League of Women Voters of Greater Hartford at West Hartford’s town hall, the two men took aim at each other on issues ranging from the war to bridge repairs.

They both agreed, however, that Green Party challenger Stephen Fournier of Hartford should have been included in the televised showdown.

“He deserves a voice,” said Larson, who hails from East Hartford and whose district includes Bristol.

Visconti said the nation is “on the eve” of an economic collapse that “may be even worse” than the Great Depression that tossed a quarter of the country’s workers onto the unemployment rolls.

The solution, he said, is to pare back on government and return more money to taxpayers so they can afford health care, investments and more.

“The federal government needs to get off our backs,” Visconti said.

Larson said the country has “to put people back to work,” in part with a Apollo-style program to create alternative energy sources that would end the nation’s dependency on oil from the Middle East.

“It’s not ‘drill, baby, drill,’” Larson said. “It’s jobs, baby, jobs.”

“We need a bailout for the taxpayers,” Visconti said.

Larson said the middle class is getting squeezed and deserves a break to help compensate for shrinking income and rising costs.

While Larson called for “ a strategic redeployment” of troops from Iraq to Afghanistan and a new focus on diplomacy, Visconti said that Americans need to keep in mind that “we are in a holy war with extreme Islam.”

Visconti said that Islamic extremists are focused on destroying Israel and targeting America.

Larson said that the United States needs to go in “a new direction for the sake of our troops and for the sake of our nation.”

Not every issue carried global ramifications.

Both candidates, for example, said that AT&T’s television service should be required to provide channels for public access.

Visconti said the company wants “to relegate public access to the recycle bin” by putting all of Connecticut’s public access stations on a single channel with  a pull-down menu required to pick one.

The election is Nov. 4.


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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

October 8, 2008

School project may get KO'd by Wall Street mess

When the state of Connecticut sought a routine refunding of $500 million in bonds a couple of weeks ago, it found that Wall Street's credit crisis had hit home.
Only about $90 million of the state's bonds were bought, raising all sorts of questions about how the state can cope with billions in projects that are planned or underway.
Bristol's comptroller, Glenn Klocko, said that if the state can't sell its bonds and other towns, including AAA-rated Avon, can't find buyers either, then it's time to consider a freeze on all capital projects.
"Those who are looking to bond are going to have serious problems," Klocko said.
Klocko said the credit crisis that has contributed to tumbling stock values and corporate panic is going to have an impact on Bristol, too.
He said, for instance, that if the $130 million school project had to be financed now, "it would be a no go."
Klocko said that Bristol wouldn't be able to bond for its share of the cost and the state would likely pull out of it anyway, since it's on the hook for 74 percent of the tab.
"You can't do it now," Klocko said. "The bets are off. The numbers are very shaky."
Klocko said the financial situation is unprecedented since the Great Depression, with nobody having the cash to buy bonds.
"It's the worst ever. It's extremely tough," Klocko said.
With such uncertain markets, he said he intends to recommend to the City Council and the Board of Finance to hit the brakes on everything they can.
"It's not the time to fool with new projects," Klocko said.
The city has about $25 million in borrowing that it intended to roll into a bond sale next year. For now, it's simply borrowing the cash from its own reserves, including the $5.3 million it used to buy the downtown mall several years ago.
Klocko said that the city can't finance any more projects itself. It would have to sell bonds if anything new arose, even an emergency allocation to fix a bridge or other type of crisis.
"We no longer have the capacity" to handle any more significant spending needs, the comptroller said.
The chaos in the markets may have an immediate impact on the school plan because the city is negotiating the final purchase of the former Crowley dealership on Pine Street and is eyeing an empty lot off Matthews Street. Each would house a 900-student school.
But if officials are not confident that they'll be reimbursed at the promised 74 percent rate by the state, those purchases may not happen, because the city might prefer not to risk getting stuck with land it can't use.
Delaying the purchases might well kill the project since there's a tight timetable already.
"It's not the time to fool with new projects, including schools," Klocko said.
Calls to the state treasurer's office have not been returned yet today, but Reuters quoted an anonymous person in the Connecticut government today who said the state got only about $88 million in retail orders during a presale period and had slashed its sale to $100 million overall.
That means about $400 million in expected transportation infrastructure work around the state won'tt have any financing in place and, presumably, may not happen until bonds can be sold. It's not clear if that would have any impact on Bristol.
Most of the municipalities around the country that have sold bonds in recent weeks have seen the interest rates they pay soar, which can have a drastic effect on the cost of projects.
State Rep. Frank Nicastro, a Bristol Democrat who is also on the City Council, said he warned months ago that the economic crisis would worsen.
He said that the city can have terrific school buildings, but if it's taxes are too high, there won't be any children to attend them.
More later.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

October 3, 2008

Larson backs Wall Street bailout bill

Press release from U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:

LARSON VOTES FOR ECONOMIC STABILIZATION ACT
Short-term Solution for a Problem in need of Comprehensive Oversight and Reform
Washington D.C.-Today, the House of Representatives passed the Economic Stabilization Act of 2008 by a vote of 263 to 171. The bill is similar to the bill that was voted on and failed in the House on Monday, but it adds an important expansion of FDIC insurance from $100,000 to $250,000 in order to protect small businesses' ability to make payroll and meet their needs.  It also adds billions of dollars in energy and business tax extenders, AMT relief for 23 million Americans, disaster relief and mental health parity reform.  However, these provisions from the Senate, unlike those previously passed by the House, are not fully paid for.  
U.S. Congressman John B. Larson (CT-01), Vice Chair of the Democratic Caucus made the following statement:
"I am outraged over the earmarks that the Senate has added to this bill.  The House of Representatives has consistently supported these tax extenders for wind, solar, fuel cells and clean energy because we know that this is the future for energy independence for America.  We also know that these tax credits means jobs in America and right here in Connecticut.  But we've supported these provisions in a fiscally responsible way and insisted that they must be fully paid for.  We also have supported AMT relief for 23 millions of Americans but we supported it in a fiscally responsible way.  However, the Senate has left us with no choice in this matter and the gravity of the economic situation we find ourselves in necessitates a vote in favor of this bill. 
The bill makes significant changes to the original Treasury proposal. I commend the hard work of the House Democratic Leadership and Connecticut Senator Chris Dodd, who worked to ensure that were protected by requiring the plan to be repaid in full.  They also ensured that the bill requires Congressional review after the first $350 billion disbursement and gives taxpayers a share of the profits.  It puts limits on excessive compensation for CEOs and executives, including no golden parachutes or CEO compensation that encourages unnecessary risk-taking.  It also provides strong independent oversight and transparency, including four separate independent oversight entities to protect the taxpayer's investment.  Finally, it allows the government to work with loan providers to change their terms of mortgages; thus reducing the number of foreclosures in coming years and preventing home foreclosures from crippling America’s economy.
"This bill is by no means the silver bullet to solve this economic crisis. I remain as frustrated and skeptical as the constituents I serve.  However, I believe this is a foreshadowing of the economic fallout that we face.   This response is a short-term solution to a long-term problem that congress must now deal with.  We must now begin the hard work of revamping our entire regulatory system to ensure that this cannot happen again.  We must be ever vigilant; it is the American people's hard earned money, their retirement security and their futures that are on the line.  We cannot simply allow these markets to operate in the dark and without oversight.  We must root out the fraud and abuse and make Wall Street work for Main Street so that everyone can prosper. "  

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

October 1, 2008

Green Party contender blasts Larson for bailout vote

Press release from Green Party congressional contender Stephen Fournier:

Green Candidate for Congress Stephen Fournier today criticized his opponent, Democratic incumbent John Larson, for the congressman's vote in favor of the Wall Street bailout.

"My question for John Larson," said Fournier, "is which faction of the Democratic caucus--the 140 in favor or the 95 against--abandoned principle to cast this vote? This bailout is a patchwork of political deals and does nothing to address the corruption of the financial system. Voters oppose it overwhelmingly as too radical, too expensive, and un-American. It amounts to the payment of blackmail to crooked bankers, who threaten to cancel further credit if they don't get this money. Credit markets have been stressed for over a year, while Democrats and Republicans sat on their hands. Now, suddenly, it's an emergency requiring an unprecedented transfer of wealth from ordinary people to the rich anti-citizens who finance these same Democrats and Republicans. They inflated the economic bubble, cashing in at every expansion, and now Larson wants to compensate them because it popped."


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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com

September 30, 2008

Dodd puts national economy ahead of breakfast in Bristol

U.S. Sen. Chris Dodd, who heads the Senate Banking Committee and is a key player in the $700 billion bailout talks in Washington, won't make it to Thursday's "Eggs & Issues" in Bristol.
So those of you who were hoping to tell Dodd to put Main Street -- or North Main Street -- ahead of Wall Street are going to have to wait until it's probably too late.
But, as city Republican Party Chairman T.J. Barnes said last night, those of you who have something to say should let your elected representatives know what you want from this bailout deal.
All of Connecticut's delegation in Washington except for Democratic U.S. Rep. Joe Courtney are backing the bailout so far, including Dodd and U.S. Sen. Joe Lieberman, as well as U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol.
"Ultimately, we're paying for it," Barnes pointed out, and this is the time to make your voices heard.

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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com