At Issue & In Focus

Merrill Lynch Repays Springfield

Last week, the Attorney General’s Office announced that investment bank and financial services firm Merrill Lynch will make a $300,000 payment to the Commonwealth related to its sales of auction rate securities to the city of Springfield.  The payment stems from an investigation conducted by the Attorney General’s Office regarding whether Merrill representatives misled the city into investing in funds the company should have known were impermissible under Massachusetts state law.

In January 2008, after discussions with the Attorney General’s Office, Merrill repaid Springfield the amounts it had invested, which totaled nearly $14 million.  The $300,000 payment includes $225,000 for fees and investigative costs, as well as $75,000 to educate and train town treasurers and other municipal financial officials on investment management practices and to review Massachusetts entities’ investments to determine their appropriateness.  In the past month, the Attorney General’s Office conducted a series of 4 regional meetings  with municipalities throughout the Commonwealth designed to provide information and resources to support careful decision-making and identification of scenarios that might create significant risk. 

This week’s payment follows earlier recoveries by the Attorney General’s Office in the auction rate securities arena.  In 2008, the Attorney General recovered more than $75 Million from UBS , Merrill Lynch, Citigroup  and Morgan Stanley for Massachusetts governmental entities. 

Looking for Other Ways to Give Back

As we continue to explore our “civic engagement” theme of this week, we understand that sometimes giving back can be a strain on your wallet, especially during difficult economic times.  But what about giving of your time?  If you are looking for ways to give back, but are feeling the pinch in your wallet or pocketbook, get creative. While the economy may affect the way you give, it does not have to prevent you from giving.

Local food banks, shelters, or social services are always willing to have volunteers; check out the sources we noted in Tuesday’s blog post.  Volunteer locally with your community’s youth sports or arts programs.  Or do something as simple as helping an elderly neighbor or making a meal for a family dealing with an illness.  In our overscheduled lives, an hour of your time giving back may feel like a relief!

Consider other simple ways to give back.  When you clean out your closet, donate used items – clothing, accessories, coats – to a shelter or social service agency.  Nearly every community has a drop-box location to benefit charities.  Instead of throwing away old books, donate them to the library or a local school or youth center.  Throwing a party to celebrate a special event?  Consider asking guests to bring a canned good or non-perishable food item for a local food bank. 

Now, more than ever, charities are in need of your donations. To find a service agency in your community, contact your local community action program.

Question of the Week: What is Civic Engagement?

“Civic engagement means working to make a difference in the civic life of our communities and developing the combination of knowledge, skills, values and motivation to make that difference. It means promoting the quality of life in a community, through both political and non-political processes.” (Civic Responsibility and Higher Education, edited by Thomas Ehrlich, published by Oryx Press, 2000)

This week, At Issue & In Focus has focused on civic engagement. On Monday, we blogged about veterans’ resources: “Observances of Independence Day throughout Massachusetts give us another opportunity to recognize our veterans and active military personnel for their work, sacrifices and continuing commitment to the principles upon which our country was founded.”  Yesterday, we blogged about volunteering, and listed a number of resources to get involved in your community.

We want to know …

What does civic engagement mean to you? 

How do you work “to make a difference in the civic life of” your community?

Altruism Alive and Well in Bay State

With contributions from Miles Goodwin, teen leader with Pride Productions, Inc.

All throughout the Commonwealth, adults and teen leaders give their time and energy in service to their neighbors and communities. Often pursuing altruistic goals for little pay or as volunteers, they work as GED instructors, big brothers/sisters, coaches, and mentors. They work out of church basements, community centers and small office space, often supporting their programming through fundraisers and unpredictable grants. The populations they work with tend to be what we describe as at-risk, but they refer to as their kids or neighbors. The Attorney General’s Office has had the pleasure of working with a number of these individuals over the years around such issues as community safety, youth employment, and promoting safe schools.

One such organization, Pride Productions, Inc. (PPI), uses multi-media technology to promote and encourage civic engagement and community development with the City of Worcester’s teen population. PPI”s Urban Community Action Planning Team (UCAPT) empowers teenagers to use the latest technology to engage their communities around issues such as youth in politics, youth unity, and teens of tomorrow. UCAPT encourages teens to look beyond their traditional focus and comfort zone and ask the tough questions. They have met with both the Mayor and City Manager for the City of Worcester to discuss the effects of economic development on the teenage population. They have also met with urban political activist and artist Chuck D, of Public Enemy fame.

The Obama administration recently launched Serve.gov, a clearinghouse for volunteer and community service opportunities.  Locally, Connect and Serve is the Commonwealth's initiative to increase volunteering in Massachusetts.  Governor Patrick and his partners in the Legislature established the Commonwealth Corps, which works with non-profit organizations and public entities to reinvigorate civic involvement to help address the Commonwealth's most urgent needs.  More volunteer opportunities can be found through organizations such as United Way and websites such as Idealist.org or VolunteerMatch, among others.

Resources for Veterans

Observances of Independence Day throughout Massachusetts give us another opportunity to recognize our veterans and active military personnel for their work, sacrifices and continuing commitment to the principles upon which our country was founded.

The AGO is charged with enforcement of certain federal and state laws which protect the rights of veterans and service members. These laws are designed to protect them from discrimination in employment, help them avoid credit or foreclosure problems, and maximize their healthcare, disability, and education benefits. 

In November 2008, the AGO released a Veterans' Resource Guide, available for download as a PDF from our website.  We also created a new website section dedicated to resources for veterans, service members, and their families.  Topics covered include:

• Financial guidance and assistance (such as pensions, bonuses, tax benefits)
• Medical care and death (insurance, VA benefits, long-term care, mental health resources)
• Service-related information (discharges, replacement decorations, obtaining records)
• Education benefits
• Housing resources (homelessness, home loans, adapted housing for disabled vets, debt and foreclosure)
• Motor vehicle-related information (license plates, fee waivers, vehicle adaptations, terminating leases)
• Legal assistance (default judgments, stays of proceedings)
• Help with discrimination issues
• Employment rights (USERRA, FMLA, finding employment)
• Benefits for family members (education benefits, death pensions, compensation, support groups)

This Independence Day,and throughout the year we thank our Veterans for their service. 

M.I.T Report Says New Technology Key to Addressing Climate Change

A new report released on June 19, by MIT suggests that the U.S. and China – two of the biggest carbon emitters in the world – must find new ways to reduce carbon emissions from coal power plants if the U.S. wants to meet its goals to combat climate change. As if that wasn’t a tall order in itself, the report goes on to note that any new technology that is devised to capture carbon dioxide emissions from coal power plants must be an economically feasible option – or else China and other countries that emit large amounts of greenhouse gases won’t get on board purely for the sake of reducing carbon emissions.

Without China’s willingness to address climate change, there is no real chance of combating the problem. The report also notes that retrofitting existing coal plants with carbon capture technology will be economically challenging, but that shouldn’t be a road block to progress. Government research will have to support the industry as it transitions to cleaner coal technology if the U.S. wants to realize its goal of reducing dangerous greenhouse gases in the atmosphere.  The U.S. and China account for 20 percent of the world’s carbon dioxide from coal plants, the report said.

The good news is that this type of technology exists –but it’s never been explored on a large scale. Carbon capture technology and research is moving too slowly, the report further notes, and an uptick in research and support for advancing technology in this field is vital to progress. 

The report represents the views of a consortium academics, utilities, government, and industry experts.

For more information on what the AGO does with climate change, visit the Taking Action on Climate Change section of the AGO website.

Lead Poisoning Prevention

The AGO recently awarded over $433,000 in grants to nine nonprofit community agencies and health advocacy organizations in an effort to increase childhood lead poisoning awareness reduce lead poisoning and increase the percentage of children who are screened for lead exposure.  The funding for the grants stemmed from a national, multi-state settlement agreement with Mattel, Inc., and its subsidiary, Fisher-Price, Inc., and the grant money was awarded for Fiscal Year 2010 (July 1, 2009).  To see what the programs are doing, view the Childhood Lead Poisoning Prevention Grant Program page of this website.

Although there has been a significant decrease in the number of children diagnosed with elevated blood lead levels, lead poisoning still remains a public health issue.  Experts still agree that even with low levels of lead exposure, there remains a risk of harm to a child’s health including developmental and learning disabilities, and behavioral issues.  With adults, exposure has been linked to high blood pressure and can cause illness.

Individuals may be exposed to lead through a number of sources, such as soil, water, toys, jewelry or pottery, products from other countries, bullets, and fishing sinkers.  In particular, the age of the housing stock in Massachusetts leaves children are at risk for lead exposure, as lead paint in homes – the primary source of exposure – was not banned until 1978. Pregnant women exposed to lead can transfer lead to their fetus.  Adults who work at certain jobs where they are exposed to lead, such as construction or auto repair, can unknowingly bring lead home and expose their children.

The Massachusetts Childhood Lead Poisoning Prevention Program (CLPPP) is the major source of information on lead poisoning in Massachusetts.  For work-related exposures, the Division of Occupational Safety oversees the Occupational Lead Registry.  Additionally, there are many nonprofit groups statewide which can provide outreach, education and training on preventing lead poisoning and resources for making homes lead safe. 

Question of the Week: ‘Green Collar Jobs’ Reviving the Economy

While many industries have shed jobs and laid off workers as a result of the global economic slowdown, a new study by the Pew Charitable Trusts predicts that the clean energy economy will be a decisive factor in the future health and growth of the economy. According to the report (The Clean Energy Economy: Repowering Jobs, Businesses, and Investments Across America), between 1998 and 2007, clean energy jobs grew at a faster rate than any other industry and could be the answer to America’s economic woes if investments continues to flow into these industries.

This state-by-state study came about after researchers observed an emerging trend of states and the federal government offering tax credits, incentives and passing legislation to increase so-called green jobs in their states and communities. For example, Massachusetts passed the Green Communities Act in 2008 which offers benefits to municipalities that make a commitment to efficiency and renewable energy.  The Green Communities Act also made energy efficiency programs compete in the market with traditional energy supply.  Utility companies are now required to purchase all available energy efficiency improvements that cost less than it does to generate power, ultimately saving money on consumers’ electricity bills.  Customers who take advantage of these incentives will save money as they reduce how much energy they use.  The goals of this economic movement in Massachusetts and beyond are to both further environmental goals and increase jobs and investments in their states.

According to the study, Massachusetts had a total of 1,912 clean businesses and 26,678 clean jobs in 2007. The study also found that Massachusetts saw a 4% increase in clean job growth from 1998 to 2007.  The study says clean energy jobs encompass these five categories: 1) clean energy; 2) energy efficiency; 3) environmentally-friendly production; 4) conservation and pollution mitigation; and, 5) training and support.

We want to know:

Would you like to see more green jobs added to the Massachusetts business community?

Do you currently hold a green energy job; and if so, what is your profession?

Ticket Exploitation

It’s summertime here in Boston and for many of us that means two things, Red Sox games at Fenway Park and concerts at the outdoor arenas in the area. As you search for those often hard to get tickets, you should be aware of ticket scalping and other scams.

The AGO’s Public Inquiry and Assistance Center recently received a call about the purchase of two Taylor Swift concert tickets through an online retailer. Unbeknownst to the caller, she was charged over 10x the face value of the ticket, paying over $150 for each $15 ticket. While some of us are more than willing to pay a inflated prices entertainment, others feel slighted that they may have been price gouged.

Under Massachusetts law, ticket resellers may charge a service fee, which may include but is not limited to, charges for messengers, postage, and long distance telephone calls, extensions of credit and costs attributable to resale. Ticket resellers may also charge for the cost of the ticket. However, it is illegal to increase the price of the ticket by more than two dollars ($2) above the face value of the original ticket.

If you feel you have been exploited by a ticket reseller, contact the Department of Public Safety (DPS) and file a complaint with their office. The DPS Commissioner may revoke the license and/or fine a ticket reseller found to be in violation of the statute.

While summer is all about entertainment, beware of ticket reselling scams that may leave your pockets empty!

National Grid Rate Changes Trigger Public Hearings

The Department of Public Utilities (DPU) will host a series of public hearings this month in response to National Grid’s recent petition to increase electric rates in Massachusetts. 

National Grid, the Commonwealth’s largest electric utility, is looking to increase the rates that Massachusetts customers pay for electricity.  The company, comprised of Massachusetts Electric Company and Nantucket Electric Company, filed a petition with DPU this May for a $111 million increase in electric rates.  For residential customers, this is an 18% increase in distribution rates (5.5% for total bill). National Grid is requesting the DPU provide this increase as of January 1, 2010.

The purpose of DPU’s rate-setting hearings is to solicit comments from the public about the National Grid petition.  The hearings are an ideal way for you to assure that your opinions on the rate changes are heard.  The hearings will take place in the following Massachusetts communities:

• Nantucket – July 7, Nantucket High School, 7:00 p.m.
• Worcester – July 8, Worcester Public Library, 6:00 p.m.
• Andover ‐ July 9, Andover Town House, 6:00 p.m.
• Quincy – July 14, Quincy City Hall, 7:00 p.m.
• North Adams – July 15, North Adams City Hall, 7:00 p.m.

If you would like to comment on the proposed rate changes, but are unable to attend a hearing, you may also file written comments anytime before 5:00 p.m. on Thursday, July 16 (instructions are available on the Submitting Comments section of the AGO website).

For more information about the proposed rate increases, and for instructions to access National Grid’s full petition, visit the National Grid Petition section of the AGO website.