Wednesday, September 16, 2009

Party Politics: Snowe: A party of one

Published in the Portland Phoenix

US Senator Olympia Snowe has maneuvered herself into a position where she is the only hope Democrats have of getting a "bipartisan" agreement on healthcare reform. But it's really less that she's being bipartisan than that her bloody-minded Republican colleagues have left her as the last remnant of a system in which the two parties disagreed but found middle ground on which to govern together.

As we have told you before, Snowe is seen as politically crucial to President Barack Obama's efforts to fix our nation's broken healthcare system, but has stuck fast to her idea of compromise — in which a public-option plan would only be available if competition did not improve some yet-to-be-specified amount over some yet-to-be-specified period of time after a bill was passed (see "Snowe Misses the Point of Healthcare Reform," by Jeff Inglis, July 10).

Of course, with Snowe's major campaign donors coming from the insurance and medical sectors, it's unclear what specifics would be suitable to her. (And it's worth noting that many of the hardcore public-option Dems are heavily indebted to labor unions.)

Snowe was able to reshape the financial bailout and economic-stimulus package because the Republicans refused to be bipartisan. She is again a party of one on healthcare reform, less by her own doing than because she has been abandoned — not only by the rightmost ideologues in her party but even by fellow "moderate" Republican Senator Susan Collins. Long a fence-sitter, Collins took to CNN Sunday to tell State of the Union viewers that she opposes a public option, even if it were delayed and watered down along the lines of Snowe's proposal.

Now Snowe herself has gone even farther, outright asking Obama to drop the public option, saying on CBS's Face the Nation Sunday that there is "no way" a plan with a public option can pass Congress. And she may be right about the vagaries and perversities of how Congress works. But with that declaration, she made clear that while the Democrats retreated on the public option in hopes of getting a bipartisan agreement, they are likely now to end up with neither.

But in the wake of recent polls showing strong public support for a public option, and even one showing that nearly three-quarters of doctors favor a public option or just outright single-payer healthcare, Democrats are starting to climb back, with many saying it's important to have a public option in some form, specifically because of the need to provide competition to health-insurance companies.

It remains to be seen if Snowe will support a bill with a public-option trigger like the one she originally proposed, or if she will instead stick with her new request that any sort of public option should be "off the table." It also remains to be seen whether anyone else joins what we might as well start calling the Snowepublican Party.

Monday, September 14, 2009

Wednesday, September 2, 2009

Your Money: Here comes the FairPoint bailout

Published in the Portland Phoenix

We thought the bailouts were over. They're not. FairPoint Communications, the nightmare that has become northern New England's landline provider, is seeking tax dollars that could help it fulfill the promises made to regulators in Maine, New Hampshire, and Vermont when the company spent $2.3 billion to buy Verizon's systems here.

FairPoint is in serious trouble. Next week, officials from all three states will hold a rare joint hearing with the company, which has been scheduled for several weeks but is likely to include discussion of an anonymous e-mail sent August 14 to regulators in all three states alleging that FairPoint faked test results regulators relied on to determine that the company was ready to take over from Verizon. (Monday, FairPoint issued a strong denial based on its own internal investigation.)

Vermont is considering revoking the company's license to conduct business. In July the company threatened bankruptcy. Its business model still depends on customers leaving more slowly than they left Verizon — when in fact the company's terrible service has caused a customer-departure rate higher than Verizon's, and incurred $3 million in poor-performance fines from state officials.

But you don't enter the picture until we look at FairPoint's promises, which are enforceable because they are also orders from the three states' utilities regulators. As part of its proof that the Verizon takeover was in the public interest, the company must pay a minimum of $131 million by March 31, 2010, to expand broadband Internet coverage in Maine, New Hampshire, and Vermont (even if other companies offer better, faster, or cheaper broadband in the same area). And it must pay a further $114 million before March 31, 2013 to do even more.

FairPoint is asking for nearly $38 million in federal economic-stimulus money (out of $7.2 billion approved to broadband expansion) to provide coverage to areas of all three states that the company "otherwise would have been unable to serve within an identifiable timeframe," according to a company press release. Under federal rules, the company will have to contribute $7.5 million of its own in matching funds to those projects.

But because of a loophole between the states' requirements and the federal rules for doling out its money, tax money could be used to meet the company's existing obligations. The states only require that FairPoint spend certain amounts within the timeframe — regardless of how the company gets the money. The feds require that the company prove "that the project would not have been implemented during the grant period without federal grant assistance."

But what the feds call "the grant period" ends three years after the government approves the application, expected to be late this year. FairPoint's commitments to the states don't end for another year beyond that.
FairPoint probably can't get federal money to cover what the states already require be spent before March 31, 2010. But the states' rules allow it to claim it was going to spend all the rest of the money just before the 2013 deadline. And then the company could say it was bringing forward, into the federal "grant period," work originally slated for 2013 — in which case the rules appear to allow federal money to fulfill state demands.

Indeed, Maine and New Hampshire regulators more or less admit that their requirements don't cover this possibility. "It's all in terms of expenditures," says Andrew Hagler of the Maine Public Utilities Commission, adding that the federal rules are the only way to will prevent FairPoint from subverting taxpayer money to meet its prior corporate obligations.

Leave it to Vermont to set the bar. The state that acted first on the e-mailed tip that FairPoint might have faked its test results is taking the hardest line about double-dipping. The money FairPoint promised to Vermont is "a separate, standalone obligation to the state," says Stephen Wark of the Vermont Department of Public Service. He said he would be "surprised" if the feds allowed it, adding that "generally, the rule is you cannot supplant" money already committed, and replace it with federal dollars. "That is what we're going to hold them to," Wark says.

Good thing, too, because if it's up to the feds, they're not talking. Mark Tolbert, spokesman for the National Telecommunications and Information Administration, which is overseeing the broadband stimulus money, referred the Phoenix to "eligibility and matching" documentation that didn't lay out whether double-dipping in this way would be allowed.

Labor of Love: No rest for these union activists

Published in the Portland Phoenix


Most of us will sleep in on Labor Day. Not the Southern Maine Labor Council, who will be working hard to remind us what the holiday's actually all about.

They'll start at the ungodly holiday hour of 8 am with a breakfast at the Maine Irish Heritage Center hosted by the Southern Maine Labor Council, the Western Maine Labor Council, and the Metal Trades Council. After 45 minutes of chow, they'll head upstairs for a labor-music performance by Nine to Nine, a singing group with an odd name for union types. There will also be an exhibit of photos by Brunswick-based documentary photographer Guy Saldanha, who has visited and photographed labor sites around the world, and across Maine.

The big attraction, though, will be Wilma Liebman, a woman whose name most of us haven't heard. She's the chairman of the National Labor Relations Board, who will be receiving the "Working Class Heroine Award" for her efforts on behalf of workers' rights.

Liebman, one of only two serving NLRB members (three seats are vacant), has spent 12 years on the board, and was chosen by President Obama to lead it shortly after he was inaugurated.

We caught up with her on the phone from Washington DC last week, just as she was heading to Australia to deliver a keynote address at the 19th World Congress of the International Society for Labor and Social Security Law.

She holds out hope for unions not just in the workplace (and notes that the percentage of organized workers in the private sector is in "obvious decline") but in the nation's public sphere, calling union activism "a political counterweight to the political influence of corporations."

While not taking a stand on the Employee Free Choice Act and other labor-related legislation (the board, as a quasi-judicial body, stays out of legislative debates), Liebman says she hopes "things will not be made worse between labor and management."

As far as general principles, she says seeking a balance between corporate and individual power is "both a matter of democracy and a sound economy." Specifically, "if you address the inequality" that exists in society, then increased purchasing power for workers will help boost the economy out of the recession.

At the moment, she says, she sees a sort of "holding pattern," in which everyone is mostly waiting for the outcome of the legislative process. Key to the success of whatever law is passed, Liebman says, is shared understanding. "If the business community could acknowledge that workers have rights — not just to a voice in the workplace but to a standard of living," and labor can recognize "the terrible competitive pressures" of doing business today, both will be better able to work together.

But as the agency tasked with making sure they do, the NLRB is facing its own "crisis of confidence," she says. Three board members' terms expired in December 2007; George W. Bush made three appointments; the Senate never acted. Obama made three nominations in July, but the Senate has been busy with other business.

In the meantime, Liebman says, "our authority to act as a two-member board has been challenged in several circuit courts." Though she and fellow board member Peter Schaumber have nearly 500 decisions with no other members available, the US Court of Appeals for the DC Circuit ruled in May that the two-person body did not have the power to make rulings. Three other federal appeals courts, including the Boston-based 1st Circuit, have ruled that it does. The matter is likely to go to the Supreme Court to be resolved.

Portland Labor Day Breakfast | September 7 @ 8 am | Maine Irish Heritage Center, 34 Gray St, Portland | $25 | 207.892.4067

Wednesday, August 26, 2009

Press Releases: Talking points

Published in the Portland Phoenix


Rich Connor's reforms have brought a much-needed sharpened focus to the Portland Press Herald/Maine Sunday Telegram and its sister papers. Certain changes, though, are raising eyebrows not just for what they are, but because of how Connor is doing them.

Many newspapers report on themselves as businesses on inside pages, and occasionally below the fold on the front; Connor has chosen top billing for his paper's self-references.

Lead "stories" have described how he came to buy the papers, announced how much his investors like him, lauded his investors' real-estate developments (without mentioning either their similarities to others' projects or the paper's relationship to the developer), and explained why he's about to shut down a printing plant and sell a landmark building in Augusta.

Lately he is taking the editorial pages in a new direction, as we can see in the now-clarifying picture of his ouster of Kennebec Journal and Morning Sentinel editorial-page editor Naomi Schalit. Unlike her counterpart at the Portland papers, John Porter, Schalit (a well-known and award-winning journalist who has also worked for Maine Public Broadcasting) survived the ownership change and was, by all accounts, settling in and attempting to get to know the new boss.

But she announced her resignation in early August, just after returning from a week's vacation. Readers might have been startled by the abruptness, but they must have been even more surprised at the editorials that ran in her absence. At a time when the editorial-page editor was not around to discuss the ramifications of such a shift, and without so much as a nod to the long-held former position, the papers overturned years-old editorial positions, most notably chastising Republican senators Olympia Snowe and Susan Collins for being bipartisan moderates on health-care reform.

It's that kind of move that suggests Connor, while certainly more hands-on than the absentee Blethens, doesn't have a feel for Maine. And the situation may not improve for a while: Schalit's replacement, Bill Thompson, is, like Connor's new executive editor and new head of advertising, an out-of-towner who has never worked in Maine (though a longstanding Connor employee).

But while these efforts may ruffle a few professionals' feathers, the real question is whether the readers notice — or care.

Sadly, the Pew Project for Excellence in Journalism suggests they do neither. Its latest State of the News Media report declares bluntly that in the latest research, "There was no indication that Americans altered their fundamental judgment that the news media are politically biased, that stories are often inaccurate and that journalists do not care about the people they report on."

Connor instead appears to be trading on the results of Northwestern University's Readership Institute's 2003 "Newspaper Experience" study, which concluded that people read newspapers to have "something to talk about" more than for any other reason. There, he is definitely succeeding.

• Also of note for those TV watchers who still don't use cable, satellite, or the Internet, if you're missing your fave ABC shows, you might just be in luck. WMTW, the Hearst-owned ABC affiliate on Channel 8 in Portland, wants to resume analog broadcasting to recover viewers lost in the digital-TV transition. While its filing with the Federal Communications Commission says there are "unresolved" problems with digital reception in both greater Portland and Lewiston-Auburn, this proposal would potentially restore a signal only as far out as Freeport and Biddeford. If it's approved, it'll be on channel 26 on your analog dial.

Hat tips to Al Diamon and NorthEast Radio Watch.