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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.
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
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.
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.
Visible man: Tracy Kidder gets into the picture
Published in the Portland Phoenix and the Boston Phoenix
As Tracy Kidder’s immersive journalism matures — his latest book recounts his travels through genocidal East Africa — he becomes more visible. He featured significantly in his debut book, The Road to Yuba City (1974), which chronicled the murders of migrant farm workers in California. But he so regretted putting himself in the story that in 1981 he bought the rights back to prevent future republication, and he declines to list Yuba City on his books’ “Also by this author” pages. He began to disappear from the narrative in The Soul of a New Machine (1981), which won the 1982 Pulitzer for general non-fiction. By House (1985), he had perfected the art of invisibility. A passage describes the view from the ground, then quotes a builder on the need for everyone who goes up a ladder to carry a box of shingles, and then — with no acknowledgment that Kidder himself climbed and carried — moves to a scene on the roof.
He stayed hidden through the rest of what became a four-book-deep study of his community in Western Massachusetts: Among Schoolchildren (1989), Old Friends (1993), and Home Town (1999). But he allowed himself back in Mountains Beyond Mountains, the 2003 volume that garnered lots of publicity for the book’s subject, Dr. Paul Farmer, and Farmer’s effort to bring health care to rural Haiti. After a reflective Vietnam War memoir, My Detachment, in 2005, Kidder releases Strength in What Remains: A Journey of Remembrance and Forgiveness, the second in what might become a series of intensely personal global social-issues investigations.
Strength’s prologue shows Kidder and Deo, the book’s main subject, driving through Burundi, returning to Deo’s home village more than a decade after his escape to America from the Hutu-Tutsi massacres of 1993 and 1994. The first section covers Deo’s youth, the civil war’s interruption of his studies to become a doctor, his flight through the wilderness, and how he rebuilt his life starting as a poor refugee in New York City.
Kidder’s gift is in the way he merges eagle-eye on-the-spot reporting with probing after-the-fact interviews, making us not just observers but privy to people’s innermost thoughts. In his previous books, we were left to imagine the exhausting work of assembling all these details. But in Strength’s second section, he gives a master class in interviewing, offering his own thoughts, as well. His devotion to his work and his compassion for those he writes about is most poignant when he confesses that he feared he was asking Deo questions that would “traumatize him all over again. On several occasions, I offered to stop my search for his story and let his memories die, if they would. Once or twice, I hoped he would accept my offer. But he always declined.”
We accompany Kidder and Deo as they travel to Burundi, retrace Deo’s route to safety, and also launch a Burundi branch of the medical initiative Kidder described in Mountains. We research with Kidder the baseless “distinctions” between “Hutus” and “Tutsis” that were so central to the mass slaughter. We, too, feel terror when he and Deo explore the now-vacant hospital where the massacre began for Deo, and from which Deo fled into the wild. “Up until now I hadn’t fully understood . . . that even his most lurid dreams weren’t weirder or more frightening than what inspired them. He didn’t wake up from his nightmares thankful they weren’t real.”
Strength in What Remains: A Journey of Remembrance and Forgiveness | By Tracy Kidder | Random House | 277 pages | $26
As Tracy Kidder’s immersive journalism matures — his latest book recounts his travels through genocidal East Africa — he becomes more visible. He featured significantly in his debut book, The Road to Yuba City (1974), which chronicled the murders of migrant farm workers in California. But he so regretted putting himself in the story that in 1981 he bought the rights back to prevent future republication, and he declines to list Yuba City on his books’ “Also by this author” pages. He began to disappear from the narrative in The Soul of a New Machine (1981), which won the 1982 Pulitzer for general non-fiction. By House (1985), he had perfected the art of invisibility. A passage describes the view from the ground, then quotes a builder on the need for everyone who goes up a ladder to carry a box of shingles, and then — with no acknowledgment that Kidder himself climbed and carried — moves to a scene on the roof.
He stayed hidden through the rest of what became a four-book-deep study of his community in Western Massachusetts: Among Schoolchildren (1989), Old Friends (1993), and Home Town (1999). But he allowed himself back in Mountains Beyond Mountains, the 2003 volume that garnered lots of publicity for the book’s subject, Dr. Paul Farmer, and Farmer’s effort to bring health care to rural Haiti. After a reflective Vietnam War memoir, My Detachment, in 2005, Kidder releases Strength in What Remains: A Journey of Remembrance and Forgiveness, the second in what might become a series of intensely personal global social-issues investigations.
Strength’s prologue shows Kidder and Deo, the book’s main subject, driving through Burundi, returning to Deo’s home village more than a decade after his escape to America from the Hutu-Tutsi massacres of 1993 and 1994. The first section covers Deo’s youth, the civil war’s interruption of his studies to become a doctor, his flight through the wilderness, and how he rebuilt his life starting as a poor refugee in New York City.
Kidder’s gift is in the way he merges eagle-eye on-the-spot reporting with probing after-the-fact interviews, making us not just observers but privy to people’s innermost thoughts. In his previous books, we were left to imagine the exhausting work of assembling all these details. But in Strength’s second section, he gives a master class in interviewing, offering his own thoughts, as well. His devotion to his work and his compassion for those he writes about is most poignant when he confesses that he feared he was asking Deo questions that would “traumatize him all over again. On several occasions, I offered to stop my search for his story and let his memories die, if they would. Once or twice, I hoped he would accept my offer. But he always declined.”
We accompany Kidder and Deo as they travel to Burundi, retrace Deo’s route to safety, and also launch a Burundi branch of the medical initiative Kidder described in Mountains. We research with Kidder the baseless “distinctions” between “Hutus” and “Tutsis” that were so central to the mass slaughter. We, too, feel terror when he and Deo explore the now-vacant hospital where the massacre began for Deo, and from which Deo fled into the wild. “Up until now I hadn’t fully understood . . . that even his most lurid dreams weren’t weirder or more frightening than what inspired them. He didn’t wake up from his nightmares thankful they weren’t real.”
Strength in What Remains: A Journey of Remembrance and Forgiveness | By Tracy Kidder | Random House | 277 pages | $26
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