Republican U.S. Senate hopeful Peter Schiff got an enthusiastic response Monday from Bristol Republicans who listened to his harsh rejection of what Democrats are doing in Washington.
Schiff, a wealthy financial advisor, said the government's vast deficit spending is "sucking all the lifeblood out of the private sector."
He said that senators are "completely clueless" and fail to recognize they "are being lied to by Wall Street" about the best way to respond to the economy's troubles.
Schiff told the GOP's town committee that the problems that caused the economic collapse were all rooted in national politics. He blamed the Federal Reserve for making borrowing too cheap and government agencies for insuring housing loans that would never have passed muster if the private sector had been forced to look closely at them.
He said he's made his money "trying to protect the wealth of my customers from the destructive policies coming out of Washington."
Schiff, who's locked in a three-way battle for the right to claim the GOP line in this year's Senate race, said that because of federal money policy and too much regulation, "Free markets weren't allowed to function."
That's why they ground to a halt in September 2008, he said.
Schiff said that U.S. Sen. Chris Dodd's financial regulation bill "doesn't do anything to address" the underlying woes that caused the crisis. Instead, he said, it just adds more red tape.
"We are making the problems worse," he said.
Schiff said that during the past decade, the volume of regulations covering financial institutions has grown substantially, to the point where it is "unreal." It's getting so hard for anyone but the largest banks and finance firms to comply with the rules that forming new businesses is becoming all but impossible.
Schiff said he never could have set up his own shop with today's red tape.
His main concern, though, is an out-of-control federal deficit that has reached $12.5 trillion and is heading for $14 trillion by next year.
To pay the interest on that debt today is possible, he said, only because of policies that have held interest rates in check.
But when interest rates rise, Schiff said, the government won't be able to pay back the money it owes.
"Where are we going to get that money?" Schiff asked.
He said the government will only have two choices: default on its obligations or rely on inflation to undermine the money, "which, unfortunately, is exactly what we['re going to do."
Schiff said that the high-tech bubble's burst a decade ago at least left us with some interesting new companies and technologies. When the housing bubble burst a few years ago, at least we had some new houses to show for it.
Now, he said, we're in the middle of a "government bubble" that will leave us with nothing at all when it bursts.
"Nothing is getting better. We are digging ourselves into a deeper hole," Schiff said. "We can't keep spending and regulating the economy and expecting it to survive."
Schiff said he would block further efforts to spend money the government doesn't have.
He would also, he said, take the hard steps necessary to shave spending.
"The problems cannot be solved without pissing people off," Schiff said.
He said the Congress has to begin to do the right thing "before it's too late."
Unless it acts soon, Schiff said, "they'll wipe out the savings of an entire generation."
If he's elected and can get 39 others to join him in the Senate, "we can shut down the government."
*******
Copyright 2010. All rights reserved. Contact Steve Collins at scollins@bristolpress.com
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
April 27, 2010
November 9, 2009
Live with Larson, part II
Next up is U.S. Rep. John Larson, who's being introduced by Thomas Phillips, president of the Capital Wokforce Parners, the main sponsor of the event.
"He truly is a champion on the national level when it relates to health care," Phillips said.
"It is quite an accomplishment to see health care reform finally pass," he said, referring to the House vote this weekend to endorse a national health care plan. The Senate has yet to act.
Now it's Larson at last...
"We had a very long weekend," Larson said, and his voice is hoarse. The more he talks, he said, the better he'll sound.
Congratulations to Ward "on his great reelection" who's doing a great job, Larson said.
He told Nicastro the presentation was outstanding.
"It's important that we have these kinds of intermodal transporation to all of our cities," he said. A new transportation bill should invest in infrastructure, including rail.
"This will put the country back to work and leave us on the other side of this recession" with an upgraded commerce, Larson said.
He said that when President Obama was sworn in, he said there were three pillars to achieve to turn things around: education reform, health care reform and energy and climate reform.
The House "has passed all three," Larson said, to thin applause. But all three wait for action in the Senate.
The congressman said that Obama "inherited a cavernous hole" with a national debt so big "that they should have passed out coal miner's hats so we could see the depths" of how big it is.
Connecticut got $6 billion in stimulus money, but only a quarter of it has been "let out" so far.
The stimulus package was really a stabilization program, Larson said, to cope with "the implosion that occurred on Wall Street."
The problem was "a lot deeper than first suspected" so the president pushed through the stimulus package, passed legislation to help people go to college and more, Larson said.
"We find ourselves in a jobless recovery," he said, and there's a need to keep investing to build the country."
The work remains to focus "on jobs, jobs, jobs,"
Larson said that the House will focus on transportation bill when it returns to work. The goal is to create a long-term infrastructure bank.
"It is a travesty that our banks will still not lend money to American companies that need it," Larson said.
People on Main Street are getting pink slips while Wall Street hands out bonuses, the congressman said.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
"He truly is a champion on the national level when it relates to health care," Phillips said.
"It is quite an accomplishment to see health care reform finally pass," he said, referring to the House vote this weekend to endorse a national health care plan. The Senate has yet to act.
Now it's Larson at last...
"We had a very long weekend," Larson said, and his voice is hoarse. The more he talks, he said, the better he'll sound.
Congratulations to Ward "on his great reelection" who's doing a great job, Larson said.
He told Nicastro the presentation was outstanding.
"It's important that we have these kinds of intermodal transporation to all of our cities," he said. A new transportation bill should invest in infrastructure, including rail.
"This will put the country back to work and leave us on the other side of this recession" with an upgraded commerce, Larson said.
He said that when President Obama was sworn in, he said there were three pillars to achieve to turn things around: education reform, health care reform and energy and climate reform.
The House "has passed all three," Larson said, to thin applause. But all three wait for action in the Senate.
The congressman said that Obama "inherited a cavernous hole" with a national debt so big "that they should have passed out coal miner's hats so we could see the depths" of how big it is.
Connecticut got $6 billion in stimulus money, but only a quarter of it has been "let out" so far.
The stimulus package was really a stabilization program, Larson said, to cope with "the implosion that occurred on Wall Street."
The problem was "a lot deeper than first suspected" so the president pushed through the stimulus package, passed legislation to help people go to college and more, Larson said.
"We find ourselves in a jobless recovery," he said, and there's a need to keep investing to build the country."
The work remains to focus "on jobs, jobs, jobs,"
Larson said that the House will focus on transportation bill when it returns to work. The goal is to create a long-term infrastructure bank.
"It is a travesty that our banks will still not lend money to American companies that need it," Larson said.
People on Main Street are getting pink slips while Wall Street hands out bonuses, the congressman said.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
September 21, 2009
Larson calls Pratt decision 'a major blow'
Press release from U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:
Congressman Larson’s Statement on Pratt & Whitney Plant Closure Decision
Hartford, CT- U.S. Congressman John B. Larson (CT-01) released the following statement on Pratt &Whitney’s decision to close the Cheshire Engine Center and the East Hartford-based Connecticut Airfoil Repair Operations:
“I am deeply disappointed by today’s announcement. It’s a major blow to our state’s manufacturing industry, Connecticut’s economy, and most importantly, to the hard working men and women of Pratt & Whitney. I still believed that a compromise that would have saved these jobs in Connecticut could have been achieved between Pratt & Whitney, the Machinists Union and the state of Connecticut.
“During my tenure in Congress, I have worked with the Connecticut delegation to preserve manufacturing jobs in Connecticut by securing critical federal funding to continue the production of Pratt & Whitney’s engines, and by protecting important military programs like the F-35 and C-17. This delegation in Washington, time and time again, has worked and voted in favor of the best interests of the machinists and employees of Pratt & Whitney. It is disappointing that at the end of the day, the interests of shareholders, and not the years of hard work and sacrifice by these employees, motivated the company’s final decision.
“I will continue to fight for the Connecticut worker and to protect Connecticut jobs. Through the bold action of our President and this Congress, our nation has begun to climb out of the cavernous economic hole that we faced a little more than a year ago. I will continue to make the economy my number one priority.”
Congressman Larson’s Statement on Pratt & Whitney Plant Closure Decision
Hartford, CT- U.S. Congressman John B. Larson (CT-01) released the following statement on Pratt &Whitney’s decision to close the Cheshire Engine Center and the East Hartford-based Connecticut Airfoil Repair Operations:
“I am deeply disappointed by today’s announcement. It’s a major blow to our state’s manufacturing industry, Connecticut’s economy, and most importantly, to the hard working men and women of Pratt & Whitney. I still believed that a compromise that would have saved these jobs in Connecticut could have been achieved between Pratt & Whitney, the Machinists Union and the state of Connecticut.
“During my tenure in Congress, I have worked with the Connecticut delegation to preserve manufacturing jobs in Connecticut by securing critical federal funding to continue the production of Pratt & Whitney’s engines, and by protecting important military programs like the F-35 and C-17. This delegation in Washington, time and time again, has worked and voted in favor of the best interests of the machinists and employees of Pratt & Whitney. It is disappointing that at the end of the day, the interests of shareholders, and not the years of hard work and sacrifice by these employees, motivated the company’s final decision.
“I will continue to fight for the Connecticut worker and to protect Connecticut jobs. Through the bold action of our President and this Congress, our nation has begun to climb out of the cavernous economic hole that we faced a little more than a year ago. I will continue to make the economy my number one priority.”
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
Pratt & Whitney move to cost 79 jobs for Bristol residents
Among the thousand people that Pratt & Whitney plans to lay off in Connecticut are 79 Bristol residents, according to Mayor Art Ward.
The mayor told me awhile back that the Mum City is home to 79 of the employees who would lose their jobs if the Cheshire factory is shut down and some operations in East Hartford are also transfered elsewhere.
So the misery spreads.
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
August 20, 2009
Bristol event Friday to focus on business taxes
Press release from state Rep. Bill Hamzy --
Impact of Business Tax Hikes on Employers, Workers, to be Aired at ‘Real World Round Table’ in Bristol Friday
Fourslide Spring Event Hosted by Pres. Arthur Funk, state House, Senate GOP Leaders Cafero and McKinney, Rep. Hamzy
The impact of proposed business tax increases on Connecticut employers and the state’s workforce will be the focus of discussion at a “Real World Round Table” scheduled for 10 a.m. Friday, August 21st at Fourslide Spring and Stamping Inc., at 87 Cross Street in Bristol
Hosting the event will be Fourslide President Arthur “Bud” Funk, state Representative William A. Hamzy, R-78th District; state House Republican Leader Lawrence F. Cafero Jr., R-142nd District, and state Senate Republican Leader John McKinney, R-28th District.
“The super-majority Democrats at the state legislature currently are pushing a two-year state budget plan that includes an increase in the surcharge on corporate profits to 8.625 percent and the elimination of certain tax incentives that originally were implemented to attract new employers to Connecticut and encourage existing companies to expand,” said Representative Hamzy, R-78th District. “If their business tax proposals are put in place, they will make it even more difficult for employers to stay afloat during the current recession, which already is well into its second year.”
“Sales are down 33 percent at Fourslide Spring, which has forced the company to reduce its workforce from 26 to 21 people,” Representative Hamzy said. “Increasing business taxes on companies that are struggling to remain open will force them to make difficult decisions to reduce their costs, and that almost always means layoffs. What troubles me most about the Democrats’ budget plan is that the $1.8 billion overall tax increase they are proposing is completely unnecessary. Republican state legislators earlier this month unveiled an alternative budget plan that shows that we can eliminate the state’s projected $8.5 billion deficit without raising taxes - while keeping aid to municipalities and local school districts at current levels and maintaining funding for essential social and human services programs.”
“I look forward to hearing what Mr. Funk and other area business leaders have to say about how the business tax increases the Democrats are supporting will affect their companies and whether they believe higher taxes will lead to more layoffs and another spike in Connecticut’s overall unemployment rate, which currently stands at about 8 percent,” Representative Hamzy said.
In addition to Mr. Funk, other Greater Bristol business people expected to participate in the round table include Bill Lathrop of Colonial Handee Spring; Scott Kirkpatrick, Radcliff Wire; Mark Divenere, Gemco; Mark Leahy, Connecticut Spring and Stamping; Richard Ray, ERA Wire; and Bill Waseleski, of Century Spring.
Fourslide Spring and Stamping Inc. is a recognized leader in the fabrication of formed metal parts. The company produces precision metal stampings, flat springs, metal clips and wire and ribbon forms for a wide range of medical, electrical, automotive, aerospace, military and general industrial goods applications.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
Impact of Business Tax Hikes on Employers, Workers, to be Aired at ‘Real World Round Table’ in Bristol Friday
Fourslide Spring Event Hosted by Pres. Arthur Funk, state House, Senate GOP Leaders Cafero and McKinney, Rep. Hamzy
The impact of proposed business tax increases on Connecticut employers and the state’s workforce will be the focus of discussion at a “Real World Round Table” scheduled for 10 a.m. Friday, August 21st at Fourslide Spring and Stamping Inc., at 87 Cross Street in Bristol
Hosting the event will be Fourslide President Arthur “Bud” Funk, state Representative William A. Hamzy, R-78th District; state House Republican Leader Lawrence F. Cafero Jr., R-142nd District, and state Senate Republican Leader John McKinney, R-28th District.
“The super-majority Democrats at the state legislature currently are pushing a two-year state budget plan that includes an increase in the surcharge on corporate profits to 8.625 percent and the elimination of certain tax incentives that originally were implemented to attract new employers to Connecticut and encourage existing companies to expand,” said Representative Hamzy, R-78th District. “If their business tax proposals are put in place, they will make it even more difficult for employers to stay afloat during the current recession, which already is well into its second year.”
“Sales are down 33 percent at Fourslide Spring, which has forced the company to reduce its workforce from 26 to 21 people,” Representative Hamzy said. “Increasing business taxes on companies that are struggling to remain open will force them to make difficult decisions to reduce their costs, and that almost always means layoffs. What troubles me most about the Democrats’ budget plan is that the $1.8 billion overall tax increase they are proposing is completely unnecessary. Republican state legislators earlier this month unveiled an alternative budget plan that shows that we can eliminate the state’s projected $8.5 billion deficit without raising taxes - while keeping aid to municipalities and local school districts at current levels and maintaining funding for essential social and human services programs.”
“I look forward to hearing what Mr. Funk and other area business leaders have to say about how the business tax increases the Democrats are supporting will affect their companies and whether they believe higher taxes will lead to more layoffs and another spike in Connecticut’s overall unemployment rate, which currently stands at about 8 percent,” Representative Hamzy said.
In addition to Mr. Funk, other Greater Bristol business people expected to participate in the round table include Bill Lathrop of Colonial Handee Spring; Scott Kirkpatrick, Radcliff Wire; Mark Divenere, Gemco; Mark Leahy, Connecticut Spring and Stamping; Richard Ray, ERA Wire; and Bill Waseleski, of Century Spring.
Fourslide Spring and Stamping Inc. is a recognized leader in the fabrication of formed metal parts. The company produces precision metal stampings, flat springs, metal clips and wire and ribbon forms for a wide range of medical, electrical, automotive, aerospace, military and general industrial goods applications.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
July 3, 2009
Bristol can thrive, GOP council hopeful says
An address by Republican City Council candidate Derek Czenczelewski to the GOP's town committee this week:
At our last Republican Town Committee meeting we discussed the idea of a clustered approach towards business, in particular the technology sector. The idea, brought to our attention by Ed Krawiecki, is very intriguing. To summarize what “clustering” entails, it basically creates a job cluster of associated or related industry. When businesses cluster, everyone tends to win. Prices are adjusted to be the most competitive in the area, the best products are created and the cluster becomes known for the type of industry or service it provides. In our case, we would be utilizing ESPN’s name and reputation for communications and technology to attract other, related companies. This doesn’t mean we would become the “Sports Media Mecca” of the world, but rather a hotspot for IT and technology-related business.
Following the meeting I began to do a host of research on the technology sector, including IT companies in the state. I started out by asking individuals in the sector where the best talent is, both in state and in the region. The overwhelming majority told me that the best talent is coming from Massachusetts. Unfortunately, that talent is staying in Massachusetts. The northeast contains one of the largest hot spots for IT, and Connecticut is a player in this industry. With nearly 800 IT companies calling Connecticut home, we currently rank number 21 for states with the most IT companies. However, Bristol isn’t even in the top 10 among Connecticut cities despite being the home of ESPN. Of our neighbors, Connecticut ranks 5th, behind New York, New Jersey, Pennsylvania, and Massachusetts. According to MSNBC’s list of the “most expensive states for business,” New York, New Jersey and Massachusetts rank in the top 10. We have a great opportunity to attract these businesses from our neighbors by offering a cheaper alternative. Unfortunately, our state ranks 4th on that very list. We need to work with the state government to make doing business here in Connecticut a more attractive option. It’s the only way we will be able to create a high tech cluster here in Bristol. High tech industry will bring the best and the brightest to the city, and will further help us build up our local economy, reducing our tax burden.
I’ve heard a lot of excuses for why Bristol doesn’t have a thriving downtown yet as well, how we are too poor, too small, and too isolated. These excuses are used for basically everything that is questioned about Bristol. But this list of excuses is just that, a list of excuses. With Route 72 nearing completion, Bristol is nearly out of excuses. For instance, 5 of the top 10 IT cities in the state are actually smaller than Bristol, so we certainly aren’t too small. Cities like New Britain, whose median household income is significantly lower than Bristol’s, was named Connecticut’s 2008 Most Business Friendly City, so we aren’t too poor. People suggest that Bristol couldn’t sustain a downtown like Blue Back Square, yet Canton, with a population nearly 7 times smaller than Bristol’s, and possibly even more difficult to access, has The Shoppes at Farmington Valley. These shops, or similar ones, would do tremendous business here in Bristol. We have no excuses left to give as to why we can’t be more than what we are! We are the only ones holding ourselves back.
I understand why some have become so disillusioned. Suffering major blows like the loss of Yarde Metals, New Departure and falling short in our attempt at landing WFSB have caused this. The long, drawn out process that has become our downtown has continued this theme. However, we have every qualification to be a thriving city capable of sustaining many new ventures: a strong median household income, a top 10 population and with the completion of Route 72, easier access.
There has been an effort given to try to make our city a better place, but I just feel that these efforts have been too little, and are quickly approaching “too late” status as well. The BDA’s recent decision to find developers utilizing an RFQ (Request for Qualifications) instead of the RFP (Request for Proposals) they had initially used is a start. However, we should be doing our own part to find qualified developers. Why wait for firms to come to us, when we could be finding our ideal candidate? It’s not overly difficult to get a firm’s portfolio to see what they have accomplished and if they would be capable. We know what we want in downtown: a mixed-use development aimed at bringing young professionals (like myself) and others from around town, downtown. We need to take a more concerted effort to make the change we seek.
I’m not going to stand here criticizing our efforts thus far without putting my hat in the ring. I’m not scared to put my name next to our numerous development projects, nor am I afraid of making hard decisions. I highly suggest to our elected officials and the Board of Finance to start working on next year’s budget now, if they haven’t already begun to do so. I don’t have all the answers to our problems, but I do have a different viewpoint. It’s true that I’m young, but I also represent the very demographic so many of you that I’ve spoken with wish to keep in town, and want in local government. If this is what you truly want, if positive change and a new beginning for downtown is what you want; if new business, low taxes and new blood is what you want, then I will represent your views and do my best to make this a reality for my hometown.
Sincerely,
Derek A. Czenczelewski
(Running for 3rd District City Council)
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
At our last Republican Town Committee meeting we discussed the idea of a clustered approach towards business, in particular the technology sector. The idea, brought to our attention by Ed Krawiecki, is very intriguing. To summarize what “clustering” entails, it basically creates a job cluster of associated or related industry. When businesses cluster, everyone tends to win. Prices are adjusted to be the most competitive in the area, the best products are created and the cluster becomes known for the type of industry or service it provides. In our case, we would be utilizing ESPN’s name and reputation for communications and technology to attract other, related companies. This doesn’t mean we would become the “Sports Media Mecca” of the world, but rather a hotspot for IT and technology-related business.
Following the meeting I began to do a host of research on the technology sector, including IT companies in the state. I started out by asking individuals in the sector where the best talent is, both in state and in the region. The overwhelming majority told me that the best talent is coming from Massachusetts. Unfortunately, that talent is staying in Massachusetts. The northeast contains one of the largest hot spots for IT, and Connecticut is a player in this industry. With nearly 800 IT companies calling Connecticut home, we currently rank number 21 for states with the most IT companies. However, Bristol isn’t even in the top 10 among Connecticut cities despite being the home of ESPN. Of our neighbors, Connecticut ranks 5th, behind New York, New Jersey, Pennsylvania, and Massachusetts. According to MSNBC’s list of the “most expensive states for business,” New York, New Jersey and Massachusetts rank in the top 10. We have a great opportunity to attract these businesses from our neighbors by offering a cheaper alternative. Unfortunately, our state ranks 4th on that very list. We need to work with the state government to make doing business here in Connecticut a more attractive option. It’s the only way we will be able to create a high tech cluster here in Bristol. High tech industry will bring the best and the brightest to the city, and will further help us build up our local economy, reducing our tax burden.
I’ve heard a lot of excuses for why Bristol doesn’t have a thriving downtown yet as well, how we are too poor, too small, and too isolated. These excuses are used for basically everything that is questioned about Bristol. But this list of excuses is just that, a list of excuses. With Route 72 nearing completion, Bristol is nearly out of excuses. For instance, 5 of the top 10 IT cities in the state are actually smaller than Bristol, so we certainly aren’t too small. Cities like New Britain, whose median household income is significantly lower than Bristol’s, was named Connecticut’s 2008 Most Business Friendly City, so we aren’t too poor. People suggest that Bristol couldn’t sustain a downtown like Blue Back Square, yet Canton, with a population nearly 7 times smaller than Bristol’s, and possibly even more difficult to access, has The Shoppes at Farmington Valley. These shops, or similar ones, would do tremendous business here in Bristol. We have no excuses left to give as to why we can’t be more than what we are! We are the only ones holding ourselves back.
I understand why some have become so disillusioned. Suffering major blows like the loss of Yarde Metals, New Departure and falling short in our attempt at landing WFSB have caused this. The long, drawn out process that has become our downtown has continued this theme. However, we have every qualification to be a thriving city capable of sustaining many new ventures: a strong median household income, a top 10 population and with the completion of Route 72, easier access.
There has been an effort given to try to make our city a better place, but I just feel that these efforts have been too little, and are quickly approaching “too late” status as well. The BDA’s recent decision to find developers utilizing an RFQ (Request for Qualifications) instead of the RFP (Request for Proposals) they had initially used is a start. However, we should be doing our own part to find qualified developers. Why wait for firms to come to us, when we could be finding our ideal candidate? It’s not overly difficult to get a firm’s portfolio to see what they have accomplished and if they would be capable. We know what we want in downtown: a mixed-use development aimed at bringing young professionals (like myself) and others from around town, downtown. We need to take a more concerted effort to make the change we seek.
I’m not going to stand here criticizing our efforts thus far without putting my hat in the ring. I’m not scared to put my name next to our numerous development projects, nor am I afraid of making hard decisions. I highly suggest to our elected officials and the Board of Finance to start working on next year’s budget now, if they haven’t already begun to do so. I don’t have all the answers to our problems, but I do have a different viewpoint. It’s true that I’m young, but I also represent the very demographic so many of you that I’ve spoken with wish to keep in town, and want in local government. If this is what you truly want, if positive change and a new beginning for downtown is what you want; if new business, low taxes and new blood is what you want, then I will represent your views and do my best to make this a reality for my hometown.
Sincerely,
Derek A. Czenczelewski
(Running for 3rd District City Council)
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
May 5, 2009
Larson aims to find out why the economy collapsed
A proposal to investigate the roots of last year’s economic collapse is expected to win approval by the U.S. House Wednesday as part of the Fraud Enforcement and Recovery Act.
U.S. Rep. John Larson, an East Hartford Democrat whose 1st District includes Bristol, has pushed for months for a bipartisan commission to probe the cause of the crisis.
The American people need to understand how we got here – and lawmakers need to know how to prevent this type of economic crisis in the future,” Larson said in a prepared statement Tuesday.
“This commission can answer those questions. It will help as we move forward with common sense reforms to prevent this from happening again,” the congressman said.
The 10-member panel proposed by lawmakers would be modeled on the Depression-era Pecora Commission that investigated the Wall Street crash of 1929.
The Pecora Commission’s high-profile investigation uncovered a range of fraud and manipulation of the markets, leading to public pressure that eventually caused Congress to enact the Securities Act of 1933 and the Securities Exchange Act of 1934 that created the regulatory oversight of Wall Street that’s been in place for the past 75 years.
“Unfortunately, 75 years later, bankers, traders and corporate executives have managed to outsmart that regulation, or the regulators were asleep at the switch. The structure is now outdated, full of holes and blind spots,” Larson wrote recently in a piece in Roll Call, a Capitol Hill weekly.
“ So we must begin again where Pecora did, shedding ‘fierce light’ on today’s schemes so we can build a modern regulatory framework that first and foremost protects working Americans,” Larson said.
The congressman said that if the federal government is going to pour money into salvaging financial firms “we must determine the exact causes of this economic meltdown. We owe at least that much to the 3.6 million Americans who have lost their jobs in the past year.
“We need a commission that looks back, not just at the last eight years, but to the last 28 years of regulation and legislation that led to this crisis,” Larson wrote.
Larson, who heads the House Democratic Caucus, said a commission “would help build a framework under which America’s new financial leaders could excel. In the end, the goal is to deliver not just a report but an ‘investor’s bill of rights’ to protect Americans’ savings, 401(k)s and pension plans.”
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
March 10, 2009
February 25, 2009
Larson hails Obama's address
Statement issued by U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:
CONGRESSMAN LARSON RESPONDS TO OBAMA SPEECH
Washington, DC – Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, issued the following remarks after President Barack Obama’s Address to a Joint Session of Congress.
“Tonight, President Obama personified the calm and determined assurance that resides in every American during these difficult times. He described the rough road ahead as we begin our steep and steady climb out of this recession. President Bush left this nation in a deep and cavernous hole. President Obama and this Democratic Congress have mapped out a clear and comprehensive strategy to get us back out.
“The economic problems our nation faces are complex and it will take a lot of work on many fronts to resolve them. The American Recovery and Reinvestment Act that Congress passed and President Obama signed into law is a key part of that work. It will put millions of Americans back to work and give a tax cut to 95% of working Americans. Combined with our efforts to stabilize the financial and housing markets, the Recovery Act will help us begin to rebuild and renew our economy.
“We as a Congress and our new President are tasked with a much bigger responsibility than stimulating the current economy. This country has failed for years to make the tough choices necessary to stay strong and robust in the global economy. Now, we must make those choices. We have and will invest in alternative energy sources, education for our children, science and innovation, and health care reform - the areas that will be the foundation of our future economic success. President Obama reiterated tonight the need for major regulatory reform to make sure the financial crisis we are experiencing today does not happen again.
“The Presidents message was realistic yet optimistic. I share his faith that our people and our country will rebuild and recover and America will emerge stronger.”
*******
Copyright 2009. All rights reserved.Contact Steve Collins at scollins@bristolpress.com
February 14, 2009
Foreclosure help offered in Hartford
HARTFORD – Many homeowners struggling to stave off foreclosure in today’s shrinking economy gathered up their paperwork Saturday and headed to the Connecticut Convention Center for private consultation with financial experts hoping to lend them a hand.
Bringing together hard-pressed buyers and mortgage loan providers for face-of-face talks about how best to resolve tough situations, the Foreclosure Prevention Workshop sought to help people avoid losing their homes.
The event was off-limits to the press and a few people leaving politely declined the chance to talk about it.
But Saleed Khoury of Stamford said his cousin came because her husband lost his job and wanted to explore options to keep their house. Khoury said the family was trying to round up enough cash to give his cousin’s family time to find another position that paid well enough.
He said he appreciated that there are organizations and government officials who are doing what they can, too.
Organizers of the event said that they tried to provide advice that might make it possible for people to remain in their homes.
Sponsored by the Federal Reserve Bank of Boston, HOPE NOW and NeighborWorks America, the workshop was part of a growing effort by housing activists and the government to stem the tide of foreclosures that has battered some communities.
Faith Schwartz, executive director of the HOPE NOW Alliance, said in a prepared statement that in the 15 months ending in September that “more than 20,200 Connecticut residents avoided foreclosure because of our efforts, but we know there is still more to be done.”
According to RealtyTrac, there were 387 foreclosures in Hartford County, second only to New Haven County’s tally in Connecticut.
In Bristol, there are 93 properties currently in default, according to RealtyTrac, most of them private homes. New Britain has 272 properties in foreclosure, the company’s website shows.
While the numbers in Central Connecticut are well short of the crisis in some communities across the country, they are up from the historically normal rates. They are, however, down significantly from the foreclosure rates a year ago, according to RealtyTrac.
Data from the Warren Group in Boston indicates that the hardest hit parts of Connecticut for foreclosures are Bridgeport, New Haven and New London. Even Hartford, which is among the worst in this region, has only half the foreclosure rates of New London.
Experts say, too, that for every house in foreclosure, there are a number of families struggling to hang on.
“We know that families facing foreclosure are in crisis mode and they need neutral, expert guidance to help them understand their options,” Kenneth D. Wade, chief executive officer of NeighborWorks America, said in a prepared statement.
Foreclosure rates last year
New London – 33.1
New Haven – 21.4
Bridgeport – 21.3
Hartford – 17.4
Waterbury – 16.8
New Britain – 12.5
Source: The Warren Group, based on number of foreclosures per 1,000 properties
PS: I couldn't find Bristol's rate, but I think that it must be about 5 or 6 given the difference between the number of foreclosures in Bristol and New Britain.
Copyright 2009. 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.”
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
January 28, 2009
Larson hails Obama's stimulus package
U.S. Rep. John Larson, an East Hartford Democrat whose 1st District includes Bristol just sent this:
LARSON: RECOVERY PACKAGE IS A FIRST STEP IN A LONG CLIMB TO ECONOMIC STABILITY
Washington, DC – Today, the House of Representatives will vote on America’s Recovery and Reinvestment Act. Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, said on the floor of the House:
“Last week President Obama stood on our nation’s front lawn in front of 2 million Americans and delivered a message that was clear and realistic but hopeful.
“We face a rendezvous with reality. The Bush Administration left us with the worst financial crisis this country has seen since the Great Depression. Nearly every component of our economy has deteriorated. Our budget deficits, trade deficits and debt have reached record level. Unemployment has reached the highest level in fifteen years– nearly 4 million manufacturing jobs have been lost. On Monday of this week alone companies cut 71,000 jobs. Inflation is on the rise and household savings are down. States are facing enormous budget shortfalls and are being forced to cut services. My home state of Connecticut is facing a $1 billion deficit this year.
“Most Americans don’t need to see these statistics to know how serious this problem is. They feel it in their communities as their neighbors lose their jobs, health care and homes. Our economy is in a deep, cavernous hole. Our climb out will be steep and steady and it will take the hard work, innovation and sacrifice of the American people.
“The recovery package we will vote on today will not solve all of our problems, but it is a first and necessary step. It will provide short term help to those who have been hurt most by the economic downturn and long term solutions to put our economy back on solid footing.
“This package brings recovery, investment and hope."
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
January 9, 2009
Larson dismayed by rising unemployment
Press release just issued by U.S. Rep. John Larson, an East Hartford Democrat whose 1st District includes Bristol:
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
LARSON RESPONDS TO DISMAL UNEMPLOYMENT NUMBERS
WASHINGTON, DC -- The unemployment rate hit a 15-year high today at 7.2%, according to a Labor Department report.
Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, said:
“Today’s unemployment numbers are the harshest evidence so far of the severity of our economic crisis. But, for many Americans, it reinforces a reality they are already too well aware of. Addressing the crisis of the unemployed is the top priority of our economic recovery plan. We will provide short term help and long term solutions to this problem. First, we will help those most impacted by the economic downturn by extending unemployment insurance and access to health care. We cannot allow our fellow Americans to suffer while their jobs are slashed and wages cut.
“Our recovery and reinvestment plan must also be focused on creating jobs. Our goal is to save or create 3 million jobs over the next two years -- a far cry from the 1 million we have lost in just the last two months. We must create jobs that stay in America and rebuild our economy over the long term. We need to build new industries like an American energy base and reinforce those that have made our nation great. We need to make America competitive in the global marketplace by training the world’s best workforce for the jobs of the 21st century.
“There is no easy path ahead. We have a lot of work to do and more bad news to endure before it is done. But, I have confidence that we can bring our economy out of this downturn and restore pride and integrity to our workforce.”
******Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
January 6, 2009
Barbara Franklin pushing to restore confidence in American business
Reporter Jackie Majerus wrote this story:
Hoping to help bring back confidence in American business – and in the corporate boards that oversee them – Barbara Hackman Franklin will take over the leadership of the National Association of Corporate Directors in the spring.
"There's been a real loss of trust," said Franklin, a former U.S. Secretary of Commerce who lives in Bristol and Washington, D.C.
Elected vice chair of the 10,000-member association's board last October, Franklin will start a three-year volunteer term as chair of the national organization in March.
Franklin, who has decades of experience on corporate boards, said it's important to bring back faith in capitalism as well as the governance structure used by corporate boards across America.
Her experience on corporate boards and in the world of Washington will help Franklin with her new role in the directors' group.
"We are in a greatly uncertain economic time," said Franklin on Monday. She said she believes in better corporate governance.
"People are not sure where the bottom is," said Franklin. "There's been a huge loss of confidence in American business."
Directors, she said, "have to do their part" to restore it.
In a prepared statement issued Monday, Kenneth Daly, president of the National Association of Corporate Directors, said Franklin has provided "extraordinary leadership" in the organization.
"I couldn't think of a better person to serve as chair, particularly in this time of economic uncertainty," Daly said.
Franklin, who is president of Barbara Franklin Enterprises, a private consulting firm based in Washington, said members of corporate boards are
"in a heightened position of responsibility."
Congress and the public are taking a new interest in corporate boards in the wake of the meltdown in the financial sector, according to Franklin, and new regulations may be on the way.
"Boards are going to be under the gun more," she said, adding that there's a need to re-establish trust in the American way of doing business and "to help to govern companies right."
The organization is designed to serve the board members who belong to it, offering courses to help individual board members be more effective and can facilitate discussions within boards, according to Franklin.
"Our intent is to help directors do a better job," Franklin said, and "restore the trust that's been lost."
She said it can also help teach lawmakers and others about corporate governance.
"We're not lobbyists," said Franklin. "A lot of people don't understand what boards do. It's an education type approach."
Boards don't take direction from company executives, said Franklin, but rather provide checks and balances. They provide oversight, set policy and can hire and fire a chief executive officer, she said.
Franklin, who has served on the boards of 14 public companies in addition to private companies and non-for-profit corporations, has spent more than 20 years speaking and writing about corporate governance.
She said she wants the directors' organization to address four issues: risk, executive compensation, strategy for corporate growth and transparency, "so the investors and the public know" what boards are doing.
Companies are facing increasing risk in today's economy, so boards must learn to manage, assess and mitigate those risks, she said.
"It's a risky business environment," said Franklin.
The global financial collapse came about in part because some of the risks of doing business were overlooked, according to Franklin.
Executive compensation is likely to continue to be a hot topic in the coming year, Franklin said, that boards will have to face.
"There's a lot of public sector concern about that," Franklin said.
Franklin, who served as Secretary of Commerce under President George H.W. Bush, helped open American trade with China, Russia, Japan and Mexico. She is a commentator on the Nightly Business Report on PBS.
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
December 18, 2008
Larson sympathic to employees dumped by Aetna today
Press release from U.S. Rep. John Larson, the East Hartford Democrat whose 1st District includes Bristol:
LARSON EXPRESSES SUPPORT FOR LAID OFF AETNA EMPLOYEES
Hartford, CT -- Congressman John B. Larson (CT-01) responded to Aetna’s announcement of layoffs in their Connecticut offices this week.
“My sympathies and support are with the laid off employees of Aetna. In these daunting economic times, the task of recovering from a job loss can seem overwhelming. I want to reassure every citizen in Connecticut’s First District who has lost their job that I will stand by them. My offices and I are ready to help you secure any federal benefits to which you are entitled. I also encourage you to take full advantage of benefits at the state level.”
Anyone with questions regarding federal unemployment benefits, federal job corps services or other unemployment related issues can call Congressman Larson’s district staff at (860)278-8888.
*******
Copyright 2008. All rights reserved.Contact Steve Collins at scollins@bristolpress.com
December 7, 2008
'Every little bit helps'
A letter to the editor from former Mayor William Stortz:
Stortz wrote:
I apologize for the length, but in reality the economy is a critical issue for Bristol and hopefully action will be taken to alleviate the situation. Bristol couldn’t/can’t stop the global and national recession, but it CAN and MUST take action to mitigate the local impact.
Clearly, there has been an impact on this years budget, and will impact next years also. The question is, just how much is that impact. The public deserves to know, in meaningful numbers, publicly and promptly.
Even though the mayor indicates that there won’t be any layoffs, many other steps are possible.
The longer we wait the worse the impact we will be facing.
Letter to the Editor,
The Global Financial Crisis has traveled from the International Arena, to Wall Street, to Main Street, and now to North Main Street here in Bristol.
I understand that the mayor has started to take some steps in addressing the situation, trying to reduce expenditures, and I commend him for that. I just wonder why it has taken him so long.
Last year, in August 2007, when the Sub-Prime problem surfaced, as Mayor, I asked certain Department heads for their input as to the possible impact on Bristol, especially the Revenue side.
I said, in part, “ The issue of sub prime mortgages, and resulting foreclosures, the acting of the Federal Reserve Board and interest rate changes, the rising price of oil, among other things, can all affect our budget, the current one, and next year’s also”.
I pointed out a few areas that might be of concern: Interest Income, Conveyance Tax Revenue, Tax Collections, especially vehicle taxes, rising price of Fuel Oil and Heating Oil. As part of the concern, I mentioned the fact that our daily “surplus” might be lower could also reduce interest income.
Other areas of possible impact were Building permits, and opportunities for state revenues.
At that time the impact had not been felt, which was the basic response from the department heads. But it should have been a “heads up”.
I concluded my letter to the Board of Finance and City Council suggesting that the situation was more problematical than it was 6-8 months previous, and that it will not recover overnight. I suggested that steps be taken early on to reduce the need for drastic steps in the future.
For those that follow the overall economic situation, or should, there were many signs indicating possible problems on the horizon. Energy costs, the weakening of the dollar, foreign involvement were items of concern. Nationally, personal debt was increasing, the spread between income levels was increasing, and there were questions being asked as to the reliability of some of the economic figures that were being used. Reduced housing sales and prices were looked at as a possible sign of things to come.
Looking at ways to reduce costs is always good, but with those ominous signs, efforts should have been initiated and implemented promptly. Even small savings over a period of time are better than forced drastic ones in critical times. The question leads to “What are we doing to address this situation, are we doing enough”?
The question now is, do we know if we are facing a deficit this fiscal year. And if so, how much? If we don’t know, why not? If we are facing a deficit, how much do we have to make up?
There are many other areas that should be evaluated also such as monitoring by Police and Fire of abandoned and foreclosed houses for break-ins and thievery, and a possible increased crime rate The likelihood of a reduction in the Grand list of motor vehicles, due to the purchasing a fewer new vehicles and of smaller vehicles. We know that he state is in trouble and that will affect state assistance to some degree.
While very little of the national and international economic impact is controllable at the local level, knowing how much and how we might be affected will better enable us to address the impact. If the public was to be informed of any shortfall, and of any need for reductions in the coming budget, they would certainly be more cooperative and understanding. But they must be made aware of the facts.
At the same time, they might have some ideas for savings that are not apparent to those close to the action. I’m sure that others have offered willingness to help: has the mayor accepted any of the offers? I am sure we all have some possible suggestions to help us through these tough times. Bristol is our city, and I am sure we are all willing to help.
Other cities are taking some drastic action. Maybe we don’t have to be as drastic, but every little bit helps, and having a better and specific report on our situation will help all of us to better accept what has to be done.
Even though the mayor indicates that there won’t be any layoffs, many other steps are possible.
The longer we wait the worse the impact we will be facing.
Letter to the Editor,
The Global Financial Crisis has traveled from the International Arena, to Wall Street, to Main Street, and now to North Main Street here in Bristol.
I understand that the mayor has started to take some steps in addressing the situation, trying to reduce expenditures, and I commend him for that. I just wonder why it has taken him so long.
Last year, in August 2007, when the Sub-Prime problem surfaced, as Mayor, I asked certain Department heads for their input as to the possible impact on Bristol, especially the Revenue side.
I said, in part, “ The issue of sub prime mortgages, and resulting foreclosures, the acting of the Federal Reserve Board and interest rate changes, the rising price of oil, among other things, can all affect our budget, the current one, and next year’s also”.
I pointed out a few areas that might be of concern: Interest Income, Conveyance Tax Revenue, Tax Collections, especially vehicle taxes, rising price of Fuel Oil and Heating Oil. As part of the concern, I mentioned the fact that our daily “surplus” might be lower could also reduce interest income.
Other areas of possible impact were Building permits, and opportunities for state revenues.
At that time the impact had not been felt, which was the basic response from the department heads. But it should have been a “heads up”.
I concluded my letter to the Board of Finance and City Council suggesting that the situation was more problematical than it was 6-8 months previous, and that it will not recover overnight. I suggested that steps be taken early on to reduce the need for drastic steps in the future.
For those that follow the overall economic situation, or should, there were many signs indicating possible problems on the horizon. Energy costs, the weakening of the dollar, foreign involvement were items of concern. Nationally, personal debt was increasing, the spread between income levels was increasing, and there were questions being asked as to the reliability of some of the economic figures that were being used. Reduced housing sales and prices were looked at as a possible sign of things to come.
Looking at ways to reduce costs is always good, but with those ominous signs, efforts should have been initiated and implemented promptly. Even small savings over a period of time are better than forced drastic ones in critical times. The question leads to “What are we doing to address this situation, are we doing enough”?
The question now is, do we know if we are facing a deficit this fiscal year. And if so, how much? If we don’t know, why not? If we are facing a deficit, how much do we have to make up?
There are many other areas that should be evaluated also such as monitoring by Police and Fire of abandoned and foreclosed houses for break-ins and thievery, and a possible increased crime rate The likelihood of a reduction in the Grand list of motor vehicles, due to the purchasing a fewer new vehicles and of smaller vehicles. We know that he state is in trouble and that will affect state assistance to some degree.
While very little of the national and international economic impact is controllable at the local level, knowing how much and how we might be affected will better enable us to address the impact. If the public was to be informed of any shortfall, and of any need for reductions in the coming budget, they would certainly be more cooperative and understanding. But they must be made aware of the facts.
At the same time, they might have some ideas for savings that are not apparent to those close to the action. I’m sure that others have offered willingness to help: has the mayor accepted any of the offers? I am sure we all have some possible suggestions to help us through these tough times. Bristol is our city, and I am sure we are all willing to help.
Other cities are taking some drastic action. Maybe we don’t have to be as drastic, but every little bit helps, and having a better and specific report on our situation will help all of us to better accept what has to be done.
*******
Copyright 2008. All rights reserved.Contact Steve Collins at scollins@bristolpress.com
December 1, 2008
Stortz weighs in on budget and the economy
Former Mayor Bill Stortz posted this comment on a thread that many might miss so I'm reposting it here:
It is somewhat surprising AND disappointing that it has taken this long for the city to point out that we are in a tough economic situation here in Bristol. Also, it is disappointing that we are not given a clearer picture of where we are and what potentially lies ahead.
The city was given an early on warning that the economic situation was at best questionable and should be monitored.
In October 2007 (yes, over a year ago), after getting feedback that I requested from several department heads, as Mayor, I sent a memo to the Board of
Finance and the then City Council, suggesting that things did not look good, and steps should be considered that would hopefully minimize the need for more drastic steps at a later date.
Her is a copy of that letter.
To: Board of Finance
From: William T. Stortz
Date: October 23, 2007
Sub: Budget concerns
As you are aware, there has been some interesting activity in the economy in recent weeks.
The issue of sub prime mortgages, and resulting foreclosures, the acting of the Federal Reserve Board and interest rate changes, the rising price of oil, all can affect our budget, the current one and next year’s also.
With that in mind, I have asked some departments to document their thoughts in this regard. Granted theses are somewhat subjective, and they were not asked to do extensive research, but only to provide some basic thoughts and awareness.
I have included these reports for your review and consideration.
Keep in mind that some costs have increased, and we will be over budget because of that. Fuel oil and heating oil are good examples. This could cut into our contingency account, or at least affect these departments that budget for fuel and./or heating fuel.
While the conveyance tax make still make budget, keep in mind that the past years showed a surplus in this account, which affects other items that were over budget.
Also, last years interest income exceeded budget. This was taken into consideration in developing the budget, but with interest rate changes, this account could be affected even more. This account also was over budget last year and provided us with a buffer also; we may draw down money short term to meet Mall needs which could reduce interest even more.
Tax collection also might be affected.
Due to the efforts of the Tax Collector, over the past few years we have realized increased results in back tax collection.
Because of this, the amount left to be collected has been reduced, and has become more difficult.
At the same time, current foreclosures might delay some collection to subsequent budget years.
We will virtually always get our money, but the back tax amount may increase for the short term.
Vehicle tax collection may also be affected. In some cases we may lose the taxes altogether, as vehicle tax collection is difficult if cars are not reregistered.
While the situation is not dire yet, it is more problematical than it was 6-8 months ago, and there is no consensus that it will recover overnight.
Now is the time to take these factors into consideration, and see what can be done to evaluate the impact, as well as to see where current expenditures can be reduced or better controlled. Small changes made early on can educe the need for drastic changes in the latter part of the budget year.
cc City council
Encl.
(End of letter)
I am aware that that some steps are now being taken. Based on what I have read, I wonder if they are/and will be enough to avoid a huge tax increase or drastic cuts in service. Certainly there are many ideas that people, including myself, have that might help, and I did offer, and it would behoove this administration to take advantage of those resources so that we experience minimal impact.
Bristol is a good city, with good people, and working together, we can and will work through this situation. But it will best done utilizing the efforts and help of many, not just a few.
I have submitted a follow up letter to the media, but it is equally lengthy and probably will not get printed. If so, it will be submitted to this blog.
The city was given an early on warning that the economic situation was at best questionable and should be monitored.
In October 2007 (yes, over a year ago), after getting feedback that I requested from several department heads, as Mayor, I sent a memo to the Board of
Finance and the then City Council, suggesting that things did not look good, and steps should be considered that would hopefully minimize the need for more drastic steps at a later date.
Her is a copy of that letter.
To: Board of Finance
From: William T. Stortz
Date: October 23, 2007
Sub: Budget concerns
As you are aware, there has been some interesting activity in the economy in recent weeks.
The issue of sub prime mortgages, and resulting foreclosures, the acting of the Federal Reserve Board and interest rate changes, the rising price of oil, all can affect our budget, the current one and next year’s also.
With that in mind, I have asked some departments to document their thoughts in this regard. Granted theses are somewhat subjective, and they were not asked to do extensive research, but only to provide some basic thoughts and awareness.
I have included these reports for your review and consideration.
Keep in mind that some costs have increased, and we will be over budget because of that. Fuel oil and heating oil are good examples. This could cut into our contingency account, or at least affect these departments that budget for fuel and./or heating fuel.
While the conveyance tax make still make budget, keep in mind that the past years showed a surplus in this account, which affects other items that were over budget.
Also, last years interest income exceeded budget. This was taken into consideration in developing the budget, but with interest rate changes, this account could be affected even more. This account also was over budget last year and provided us with a buffer also; we may draw down money short term to meet Mall needs which could reduce interest even more.
Tax collection also might be affected.
Due to the efforts of the Tax Collector, over the past few years we have realized increased results in back tax collection.
Because of this, the amount left to be collected has been reduced, and has become more difficult.
At the same time, current foreclosures might delay some collection to subsequent budget years.
We will virtually always get our money, but the back tax amount may increase for the short term.
Vehicle tax collection may also be affected. In some cases we may lose the taxes altogether, as vehicle tax collection is difficult if cars are not reregistered.
While the situation is not dire yet, it is more problematical than it was 6-8 months ago, and there is no consensus that it will recover overnight.
Now is the time to take these factors into consideration, and see what can be done to evaluate the impact, as well as to see where current expenditures can be reduced or better controlled. Small changes made early on can educe the need for drastic changes in the latter part of the budget year.
cc City council
Encl.
(End of letter)
I am aware that that some steps are now being taken. Based on what I have read, I wonder if they are/and will be enough to avoid a huge tax increase or drastic cuts in service. Certainly there are many ideas that people, including myself, have that might help, and I did offer, and it would behoove this administration to take advantage of those resources so that we experience minimal impact.
Bristol is a good city, with good people, and working together, we can and will work through this situation. But it will best done utilizing the efforts and help of many, not just a few.
I have submitted a follow up letter to the media, but it is equally lengthy and probably will not get printed. If so, it will be submitted to this blog.
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
November 7, 2008
Theis lays off 20 workers, eliminates third shift
Reporter Jackie Majerus wrote this story:
With orders declining in the troubled economy, Theis Precision Steel Corp. is eliminating its third shift and laying off nearly 20 percent of its union workforce, a company executive said Thursday.
Bill Ramaccia, vice president of finance and general administration at Theis, said the global financial crisis is taking a toll on Theis.
"We're responding to the current slowness in our sales, much like companies in this and many other industries," said Ramaccia, who said the company saw a 30 percent drop in incoming sales in October.
Theis has 104 hourly workers represented by Local 712 of the United Auto Workers Union.
Of those, 20 will be laid off starting Monday, said Ramaccia.
Unlike a restructuring earlier this year that cost 30 union workers their jobs, Ramaccia said Theis plans to call this group of 20 back to the factory as soon as possible.
"We're very hopeful," said Ramaccia, who said Theis intends to use "a very aggressive" sales program to boost business.
But Ramaccia said it was "extremely difficult" to say when sales would be robust enough to bring the workers back.
"Things are still so uncertain," said Ramaccia.
Ramaccia said the layoffs were needed, but that they weren't easy.
"These are very deliberative actions. These are not actions we take lightly," said Ramaccia. "We regret having to do that."
Zeke Zalaski, president of Local 712, said the jobs are mostly semi-skilled but also include some skilled workers. Most are earning $18 to $22 an hour, he said.
"They're very upset," Zalaski said, especially because the holiday season is beginning. "They lose their insurance as of the end of the month. They either go Cobra or head for Husky."
Layoffs will be done by seniority, Zalaski said and will include some who have been on the job for as long as 15 years. He said the company has promised to bring the workers back as soon as possible.
"They're committed that they're going to call all these people back once the orders start up again after the first of the year," Zalaski said.
In the meantime, the union is trying to get help for the laid off workers from the state Department of Labor with unemployment, health care and other assistance.
"The people are scared. There's layoffs all over this country," said Henry Raymond, a union steward at Theis. "Everybody's on edge. It's very hard. The company's in a bind. The union's in a bind. We pray that it's only temporary."
Zalaski said everyone understands the situation and how fortunes are tied.
"We're all in it together," said Zalaski. "There's not much animosity between us anymore."
Both union and company officials said the company is solid and not closing.
"In the last three months, they've made money," said Zalaski. "The place is turned around."
Through its German parent company, Theis invested $1 million into a program to boost productivity.
"You don't spend that kind of money if you're thinking of closing," Zalaski said.
Ramaccia, who has served as the company's chief financial officer for 22 years, said the extensive program ran from March until June. It was a serious restructuring to improve Theis for the future by building revenue, controlling costs and improving productivity.
"They are pushing the guys a lot harder than they used to," said Zalaski. He said productivity is definitely up.
During the restructuring, Ramaccia said, three or four salaried workers were laid off, as well as 30 union workers.
After the layoffs Monday, there will be 84 union and 33 salaried employees, which include sales positions, Ramaccia said.
The current global economy challenges workers with constant changes, according to Ramaccia. People have to come to work prepared to do something different each day, he said.
"We saw a very marked slowness" in sales in October, said Ramaccia. He said the "sharp decline" in the automotive and housing industries had an impact on Theis, which he said is a "middle market manufacturer."
Theis buys coils of steel and customizes it for buyers, rolling, thinning, and cutting the metal to a specific thickness and hardness.
Customers that used to order a year in advance are no longer doing that, Ramaccia said, making planning and advance purchases difficult for Theis.
The customers are giving "very little definitive" information about what their future orders will be, Ramaccia said.
Zalaski said customers are pushing back orders until after the first of the year, creating a slowdown in work.
And besides the advance sales in limbo, Theis is seeing very little in the way of spontaneous orders, Ramaccia said.
Slowdowns in sales have happened before, said Ramaccia, but in this economy, it's different.
"In the past, we used to try to wait for sales to catch up," said Ramaccia, but he said Theis can't do that anymore.
Raymond, who has worked at Theis for 25 years, said the company had more than 200 union workers when he started there and ran three shifts, seven days a week.
He's never seen things this dire, said Raymond, because this economic crisis is of global proportions.
"Nobody's safe in these times," Raymond said. "We never went through this before."
Zalaski said Theis sold off some "real old furnaces" for scrap and has been sprucing things up inside. He said it's for the customers who thought the place "looked like a dungeon," said Zalaski. "It's not to sell it."
He's seen this before, said Zalaski, at Associated Spring, which shares Local 712 with Theis workers.
Associated Spring, which does 70 percent of its work for the automotive industry, Zalaski said, laid off a dozen people about two months ago, due to the economy. There are now 86 union workers at the downtown factory, he said.
Zalaski, who won the union presidency post in June, started at Associated Spring 30 years ago. At the time, there were 600 workers there, he said. Just six years ago, the number was at 225.
"It's constantly gone down," said Zalaski.
Union workers at Associated Spring took a five year wage freeze last year to protect their jobs, Zalaski said.
Theis workers did the same for a three-year contract that started in 2006, and last year, Zalaski said, Associated Spring did a little sprucing up inside its plant like Theis did recently at its Broad Street factory.
Copyright 2008. 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 9, 2008
How low will it go?
It's stunning how the Dow and other market indexes just keep plummeting.
Thank goodness my company is rock solid. ;)
*******
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
Thank goodness my company is rock solid. ;)
*******
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
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