My Annual 10 Real Estate Predictions for the Upcoming Year

A simple answer to any questions about the real estate market in 2012 is: If you want to know what the housing market will be like next year, ask the government. At this point, low mortgage interest rates only exist thanks to its efforts and job recovery is essential to real estate recovery.

But if you were to ask me, I predict:

1.  Foreclosures and short sales will play a key role in U.S. housing.  The U.S real estate market is poised to be hit by another surge of bank repossessions.

2.  Buyer confidence levels will remain low due to election-year mud-slinging. 

3. Expect a fight over the home mortgage interest deduction.

4.  Rates will remain low through the year. 

5.  Builders will begin building…slowly and cautiously…and their primary pool of buyers will be those that have sat on the sidelines and now believe that if we are not at the bottom, we are close enough to make a move without significant negative consequence…especially considering today's prices for new construction.

6. Many lower end move-up buyers will remain cautious, wary of further market reductions and/or fear of job loss.  Consumer confidence will be tied to unemployment numbers.

7.  We will see a rise in home sales in terms of units sold.  The baby boomers began turning 65 in 2011, which will cause a rising number of retirement-driven listings.

8.  There will be little or no appreciation in home values.

9.  Homebuyer's real estate tools will become even more mobile… everything from smart phones, iPads, netbooks, portable scanners, e-signatures and more.

10.  On the commercial front... retail, office and industrial vacancies will decline as more tenants seek, and receive, landlord concessions.

All in all, I predict a slow and steady recovery in real estate for 2012.  Consumer confidence is the key to a turnaround in the market. The government has to stimulate the jobs recovery and when it does, the real estate market will follow.

Have a great year and remember this...2012 may be the BEST year ever to buy a home, with incredibly low interest rates and property prices.  Don't be one of those that in 2013 or 2014 says: "I remember when I could have bought that home for $X" or "I missed the opportunity of a lifetime in 2012."

Best regards,

Jay 

School Committee Relents...Agrees to Return $500k to the Taxpayers

HALLELUJAH!

I frankly do not know what else to say.

Somebody lend me a defibrillator.

The Hamilton-Wenham Regional School District School Committee tonight (June 23rd) astonishingly RE-VOTED and re-certified the fiscal 2012 budget to include the so-called $500k "give back" to the towns for last year's over-funded school budget (approximately $1 million).

There is no further need to discuss the controversy, anger and angst that has now been extinguished by this momentous decision. All that is left is to offer kudos and congratulations to the School Committee for having stepped up at the last minute to end the issue in a right, fair and just manner and also to those community leaders and citizens that helped play a major role in this positive outcome.  You know who you are.

This also means that Hamilton will not need to hold the Special Town Meeting that had been scheduled for next Monday, which is likewise a good thing for our community.

THANK YOU again, School Committee, for doing the right thing.  I would agree with Hamilton Selectman Jeff Hubbard who said:

"I think this is a night where we can turn the page."

Now...

...about of those fiscal recommendations from the Operational Audit?

(Hey... you didn't think we'd let you off the hook that easily did you?)

This Is the Truth...These Are The Facts.

To borrow a quote from my friend Barbara Anderson...

"There are two kinds of people, from various perspectives, reading this column: 1. People who want to know the truth; and 2. People who would rather not know until it's too late."

This week's blog article explores the belief that the Hamilton-Wenham Regional School Committee is a liability to our towns, our residents AND our schools. Their budgeting ineptitude, autonomy and arrogance for at least the last 10 years has resulted in a property tax rate that is one of the highest on the North Shore and a school district reputation that is in steep decline.

Follow along for a minute to see how the School Committee's many poor decisions have resulted in the unfortunate position we now find ourselves in.  Here are the facts:

School override after school override (aka: "overandoverrides"). Since 2001 the school district has demanded nine Proposition 2.5 overrides. Eight have been granted. The cumulative cost to the taxpayers for those eight overrides = $43,970,000.  "Budgeting by Override" never was a sound accounting process and was most certainly unsustainable.

Loss of property values. The overrides have resulted in Hamilton and Wenham having two of the highest property tax rates on the North Shore. This means that many home buyers are circumventing Hamilton and Wenham in favor or surrounding communities, many with equally good schools. The end result is a significant loss of value in your home and your equity.

Highest per pupil cost.  Two independent reports have concluded that residents in Hamilton and Wenham pay about $2,000 more per pupil in our school district than in peer school districts.

Blue Ribbon Report on school district costs. The Blue Ribbon report, and a subsequent update to the report, indicated that our school district costs residents $2 - $4 million more per year than comparable school districts in Massachusetts.

School Superintendent departure. In a move some have called "fleeing from a sinking ship", former School Superintendent Marinel McGrath resigned and took a position in Andover, MA. Her assistant superintendent and business manager, Paul Sysmanski, also departed... moving first to Billerica and then over to Andover to join with McGrath again.

New School Superintendent. In a rush to replace McGrath, despite calls to slow down and seek an interim superintendent, the School Committee unanimously approved the hiring of Dr. Raleigh Buchanan and granted him a three-year contract at a significantly higher salary than that of his previous position as Superintendent in Haverhill.  Residents were told that we needed to offer a high salary in order to attract the best candidates.

School Operational Audit. Hamilton and Wenham voters overwhelmingly supported funding an Operational Audit of the School District to determine what was wrong and where efficiencies could be found. The audit report suggests that savings of up to $15 million over 5 years are possible and offers 125 financial recommendations. The School Committee has all but ignored the cost-saving recommendations and has focused solely on implementing the cost-enhancing recommendations. The School Committee has resolutely claimed the audit is "flawed"...EXCEPT when it supports their agenda of additional spending.

2012 School Budget Season. The School committee's WORKING FINANCE GROUP, after determination that the 2011 district budget was OVER-FUNDED by more than $1 million, recommended a so-called "give back" to the towns of $350k.

The School Committee refusal. The School Committee ignored their own WORKING FINANCE COMMITTEE'S recommendation and voted to give nothing back to the towns... Nothing.  Zip.  How's that for "compromise"?

The School Committee violates the Open Meeting Law. The School Committee was forced to admit they violated the State's Open Meeting Law on numerous occasions during the budget season, despite, as their attorney stated, all members having been trained in procedures and processes of the law.

Towns boards seek return of unspent funds. Town officials (ALL members of both Boards of Selectmen and Finance and Advisory Committees of BOTH towns) requested the School District return $500k in unspent taxpayer funds (half).  They cited additional approved state funding of $120k and a Latin teacher salary ($77k) with no Latin teacher. Recognizing that the district was OVER-FUNDED by more than $1 million in 2011, the Selectmen and FinCom members felt that requesting only the return of $500k represented an extremely fair compromise proposal.

The School Committee's refuses. Again...No willingness whatsoever to compromise.

School budget rejected by voters. Voters at the Hamilton Annual Town Meeting approved the motion to give back $500k to the taxpayers and rejected the School Committee's budget, requiring the School Committee to certify a new budget and resubmit it for consideration.

School Superintendent reviews delayed. For various reasons, the yearly reviews of the Superintendent of Schools were delayed repeatedly until AFTER both Town Meetings were over.  Once they were released, it became abundantly clear that the School Committee had been on a collision course with Dr. Buchanan.

Another School Superintendent departs. Less than one year into his three year contract Dr. Buchanan abruptly resigned claiming "irreconcilable differences" with the School Committee, the result of scathing reviews by most members of that committee...the same committee that unanimously and emotionally approved his hiring one year ago. (Cost to the district to buy out his contract: $115,000.00)

Middle/High School Principal moves on. Matt Fox accepts a job as Middle School Principal in Marblehead.

Another School Principal looks to move on.  Winthrop School principal Carrie Vaich sought a new position and was named a finalist in Newburyport and at the Rollinsford Grade School in NH.  After Newburyport chose the other candidate, she chose to remain in Hamilton.

School Committee incumbents are voted out of office. All three open positions on the School Committee are won by new candidates...sending a clear message, one would think.

A School District in trouble.  We now have no Middle School principal, no High School principal and no full time Superintendent (Peter Gray, thankfully, is serving as acting superintendent...for the time being.)

School Budget "re-certification". As a result of the Hamilton Town Meeting vote, the School Committee certified a new budget, this time with only a $300k "give back" instead of the $500k approved by the voters and recommended by town officials.  The SC has referred to this amount as a "compromise proposal"...suggesting that the STARTING POINT was $500k, instead of $1 million, which is the ACTUAL OVER-FUNDED AMOUNT.  This means Hamilton will have to hold a Special Town Meeting later this month and incur the additional COSTS, INCONVENIENCE and ANGER of the residents.

This last decision was perhaps the most unfortunate and misguided act yet by the HWRSD School Committee. A significant opportunity was lost by the blindness of all but two committee members (newly elected members, I would point out).  Had they not been so blind, they surely would have understood that most of the divisiveness, the mistrust, and the angst of the residents of Hamilton and Wenham could have been eliminated had they simply agreed to what the majority of COMBINED VOTERS OF BOTH TOWNS expressed at the two May Town Meetings: Give us back just HALF of our unspent tax funds.  Half...that's all we're asking for.

The truth... there it is.  The facts...there they are.

As Barbara's quote at the beginning of this article stated, it may be too late for those of you who do not want to know the truth.

But I sincerely hope it's not.

Please plan to attend the Special Town Meeting on June 27th at the Winthrop School at 7:00 PM and let your voices, and your votes, be heard again. 

Vote NO to the proposed school budget at the Special Town Meeting.

Thank you.

4 Reasons Why The School Committee's "Compromise Solution" is NOT

I thought about titling this blog: "Hello?...Wake Up!"  I may still.  Or perhaps I'll just insert the wake up notices wherever I feel they are appropriate.

But I digress...the main issue of this blog concerns the results of the Hamilton-Wenham Regional School Committee's (SC) meeting of June 9.  It was at that meeting that the SC voted to "re-certify" the school district budget as a result of voter opposition to their original budget at the Hamilton Annual Town Meeting in May.

You may recall that the 2011 school district budget was OVER-FUNDED by more than $1 million and as a result, by unanimous consent of both Hamilton and Wenham's Boards of Selectmen and Finance Committees, the 2012 school budget approved at the Hamilton Town Meeting required a "give back" (or reduction from the towns) of $500k from the district, or just half of the unspent funds.  Sounds like a fair and reasonable compromise, right?

Unfortunately, the School Committee has now (once again) chosen to defy our town officials and the taxpayers by choosing to certify a new budget with only a $300k give back.

They are calling it a "compromise solution".  Here are just 4 things to consider regarding the SC's so-called "compromise solution":

1.  This spring, the SC's Working Finance Group voted to give back $350k to the taxpayers for OVER-FUNDING the 2011 school budget.  The lone dissenting vote on that committee came from SC member Richard Boroff who was subsequently trounced at the polls in a re-election bid.  (Hello?...Wake up!)  The Finance Working Group's recommendation was ignored by the full School Committee who chose instead to keep the $350k...without any kind of compromise.

2.  Both Hamilton and Wenham's Boards of Selectmen and Finance Committees originally voted to accept the $350k figure recommended by the Finance Working Group until it was discovered that the state would be providing an additional $120,000 in funding AND it was discovered that the 2012 school budget included, among other things, a salary for a non-existent Latin teacher (approximately $77,000).  At that point, all the same town officials then voted to increase the amount of the give back to $500k, again unanimously.  (Hello?...Wake Up!)

3.  The School Committee had the opportunity to end this entire issue had they agreed to give back half of the taxpayers' unspent funds.  If they had agreed to the $500k, we would be done.  It would be over.  No more Special Town Meetings.  No more arguments and fighting over what rightfully BELONGS to the taxpayers.  But instead, the SC has once again arrogantly chosen to go to battle and burden the residents of our towns with more expense, inconvenience and angst.  (Hello?...Wake Up!)

4.  Lastly, $300k is simply NOT a "compromise solution".  The SC may like the sound of that, but it's a misnomer.  You see, when it was shown that the school district had been OVER-FUNDED by $1 million in fiscal year 2011 and the Towns asked for just half of that amount to be returned...THAT was a compromise solution.

The $300k figure agreed to by the SC this week "compromises" the actual compromise solution, which is simply to give back half of what was overcharged to the taxpayers.  (Hello?...Wake Up!)

$500k is the compromise solution.  Even a third grade math student could figure that one out.

******************

UPDATE: 6/14/11: The following is an excerpt from a white paper provided by the Hamilton Board of Selectmen and the Finance Committee days before Hamilton's Annual Town Meeting in May.  It seems appropriate to revisit the statement as we head into another Town Meeting, faced with the same issue:

"At the risk of oversimplifying, the entire question of which approach to support could be boiled down to one question: do voters/taxpayers want to put money into the District's E&D fund for either potential problems in FY12 or for expenses in FY13, or do voters/taxpayers want to keep the money in their own pockets and fund the District as needed based on the merits of those needs as they arise?  The FinComs and BoS of both towns believe that voters/taxpayers would prefer the latter."

*******************

I want to personally offer thanks and kudos to SC vice-chairman Roger Kubel and new SC member Bill Dery for eloquently expressing what I have attempted to communicate above and for trying to make the other members of the SC understand what the real, and fair, compromise solution is.  It appears however that the remaining incumbent members learned little from the Hamilton Town Meeting's voter's wishes regarding the original budget OR the election results on their own board.  (Hello?...Wake Up!)

Loss of Confidence is Claim for School Superintendent Dismissal in Hamilton/Wenham

Heads were spinning and reality seemed off balance this past week in Hamilton and Wenham when the School Committee abruptly announced that the employment of School Superintendent Dr. Raleigh Buchanan was being terminated...less than one year into a three-year contract.

The principal reason?...Loss of Confidence.

LOSS OF CONFIDENCE is a term often used as grounds for termination of an employee.  Loss of confidence arising from fraud or willful breach of trust by an employee is generally seen as a just cause for termination.

Ordinary breach should not suffice.  It should be willful and without justifiable excuse and should be supported by substantial evidence, not merely by the whims or caprice of the employer.

For her part, School Committee member Dacia Rubel took great pains to justify her long and disparaging performance review of Dr. Buchanan.  Her review was 10 times longer than any other board member's review of the Superintendent.  As someone with a law degree (not currently practicing), Ms. Rubel surely knew the term "loss of confidence" and how to use it in order to justify her desire to see Dr. Buchanan removed from his position as School Superintendent.

I counted the term "loss of confidence" no less than eleven times in her evaluation survey.  Considering her harsh analysis of Dr. Buchanan's performance, once would have sufficed.

But wait.  There are other legal terms that may bear consideration in this instance, such as:

"Wrongful Termination" or "Wrongful Discharge" and most notably "Constructive Dismissal".

Definition: CONSTRUCTIVE DISMISSAL: forcing of resignation of employee: action taken by an employer intended to make continuing in a job intolerable for an unwanted employee, thus forcing the employee to resign.

All we heard after the Executive Session last Thursday night right was a statement issued by the School Committee's attorney, Naomi Stonberg:

"Parties have had a frank conversation about the employment relationship between the Hamilton/Wenham Regional School District and Superintendent Raleigh Buchanan.  They have agreed that their mutual interests will be best served by bringing the relationship to a conclusion.  There will be no further comments until a final agreement has been reached."

Despite stating "there will be no further comments...", the School Committee issued a statement on Monday ostensibly to clarify the reasoning for that Executive Session meeting.  They claimed that it was Dr. Buchanan who requested the meeting and that his performance reviews were not discussed.  Surely they would not have us believe that the reviews had nothing to do with Dr. Buchanan's asking to meet in Executive Session.  It would be naive to suggest such a thing.

Obviously the meeting was called by Dr. Buchanan as a direct result of the negative performance reviews of most of the School Committee members, in particular Ms. Rubel's - she is clearly the leading spokesperson - and  I would suggest that Dr. Buchanan may have felt no choice but to "resign" for reasons imposed by the School Committee.

And that sounds a lot like "Constructive Dismissal".

We'll know more soon, but in the interim there are lots of comments on The Patch and an editorial in the Salem News [click here] for you to review.

When Is An Override NOT An Override?

Several readers of this blog have asked me to print the statement which I had the honor to deliver on behalf of Enough Is Enough at the Hamilton Town Meeting, in support of an amendment to the School Committee's proposed budget.  Here it is:

**********************

Good Morning fellow residents…I come before you today to speak on behalf of Enough Is Enough.

We support the proposed amendment before you.

QUESTION:...When is an override NOT an override? We suggest it’s when a budget includes funds that are not needed. This year the School committee is demanding $500k MORE than our Finance Committee and our Board of Selectmen and our Town Manager unanimously agree the school’s need.

If you think about it, bloating the school budget by $½ million is quite clever. You see, the last time the School Committee asked for an override, it was denied by the voters. And despite claims to the contrary, the sky did not fall in. That last attempt at an unneeded override was for $1.2 million. I say “unneeded” because the schools got along just fine without it. In fact… even without that $1.2 million, services remained in place, teachers were not laid off…AND this past year the district ended up with a SURPLUS of over $1 million. A SURPLUS!

Today, rather than risk being denied another override by already overburdened taxpayers, the School Committee has simply added unneeded funding into their budget. Don’t be fooled by this ploy. It’s tantamount to an override… but disguised as a budget. At least a real override is for a specific purpose. This unneeded $500k is for things that “may” or “could” or “might” happen…....possibly.

All we have heard over the past few weeks from the School Committee and their budget supporters has been non-specific rhetoric, such as:

QUOTE: “We can’t rule out POSSIBLE service cuts and teacher cuts.”

QUOTE: “It’s POSSIBLE that the E&D account may not be large enough to cover UNEXPECTED expenses.”

(B/T/W…one veteran member of the SC has stated that the E & D balance would be one of the highest amounts he has seen in 19 years on the committee.)

QUOTE: “Anytime you take money away you put things AT RISK.”

QUOTE: “We COULD be faced with revenue shortfalls”

QUOTE: And this is my personal favorite: “It’s difficult to IMAGINE what services might be cut.” YES, it is. It surely is.

That’s a whole lot of innuendo… a lot of “could’s” and “might’s” and “maybe’s” and “possibly’s”. On the other hand, here are some FACTS we would like you to consider:

FACT: The Blue Ribbon Committee (remember them?) came to the conclusion that our school district outspends comparable school districts by between $2 and $4 million a year. As did the Department of Education.

FACT: An expert and detailed independent Operational Audit came to the same conclusion in a four hundred page report.

FACT: The district administration’s original budget, supported by a majority of the members of the School Committee's Working Finance Sub-Committee, was for $350,000 LESS than what the School Committee is demanding from you today.

FACT: Since that time we now know that an additional $120,000 in state funds will be available to the schools.

FACT: The School Committee’s budget ALSO includes salary compensation ($77,000) for a Latin teacher…but there is NO Latin teacher.

I could go on, but in the interest of time and in conclusion, we ask you to consider the following 3 things as you prepare to vote on this important issue:

1. Since 2001, our towns have funded 8 school overrides that have cost the taxpayers $43,947,000 over that 10 year period.

2. With over $1 million in EXCESS funding left over from LAST year, it is fair and appropriate to ask the school district to return a portion of those unspent funds to the taxpayers. This year the Town of Hamilton mistakenly over-charged the taxpayers $275,000. The Selectmen, with the support of the Fincom, did the right thing and immediately voted to return it to you, not keep it in a reserve fund as the schools are demanding. The school district owes you the same courtesy and respect your Selectmen provided you when they “gave back” your money. And although the chairman of the School Committee has publicly referred to the $500,000 as (quote) “our money”, it is NOT their money…it’s yours.

If UNEXPECTED costs are incurred, we suggest the district use the other $500,000 in unspent fiscal year 2011 funds… and if need be, include the $77,000 salary of the non-existent LATIN TEACHER.

3. Lastly, it’s no secret that Hamilton’s property tax rate is one of the highest in Massachusetts, the direct result of unchecked and spiraling school spending. As a Realtor, I can assure you that such a high property tax rate diminishes your home’s market value and your equity…as well as your ability to sell should you need to. If you want to reverse this trend, you need to vote to approve the amendment before you.

Please join me and EiE’s members and supporters… along with ALL the Selectmen and Finance Committee members and our Town Manager… and cast your vote to APPROVE this amendment.

It is right… and it is fair… and it DOES NOT and WILL not result in diminished educational services for our children.

Don’t approve another unnecessary override… cleverly hidden inside the School Committee’s proposed budget.

Please vote YES... in favor of this amendment.

Thank you.

*******************************

The motion passed 181 to 128.  Congratulations to those who supported the Town budget, as amended.

UPDATE: Posted 5/22/2011: By now you have likely heard that the School Committee has abruptly TERMINATED the employment of Superintendent Dr. Raleigh Buchanan.  It makes you wonder about the "unexpected" expenses they touted at Town Meetings earlier this month in support of keeping the over-funded $500k of unspent taxpayer's money.  Also, does anyone else sense that they deliberately waited until AFTER Town Meetings were over to announce their reveiw of Dr. Buchanan...which in turn led to this unfortunate event?

Update: Things You Need To Know About The School Committee

Recently I posted an article on this blog titled: THERE'S A NEW GROUP IN HAMILTON & WENHAM (Enough Is NEVER Enough)

At the end of that posting, I added:

Question: If 8 out of 9 School Committee members were present at this meeting, shouldn't it have been posted as something other that a Finance Working Group meeting?  Smells a little like a violation of the Open Meeting Laws.  Anyone care to comment?

Fortunately, at least one resident did care and he looked into the issue and properly filed a complaint.  The attorney for the Hamilton-Wenham Regional School Committee researched the claim and had this to say:

"The School District recognizes that it violated the Open Meeting Law because a quorum of the full School Committee attended and deliberated at the Finance Working Group subcommittee meetings and a meeting of the School Committee was not posted in accordance with M.G.L Chapter 30A, Section 20."

As it turns out, the School Committee received training on the Open Meeting Law in July, 2010.  Their willingness to simply ignore the law and hold unposted School Committee meetings in which the new (contested) budget was discussed and deliberated and straw votes were taken is unexcusable as well as unlawful and shows that the lack of transparency within the School Committee is alive and well.  If not for this single citizen's complaint, the unlawful behavior would surely have continued.  If you wondered why the recent SC meeting, in which the new school budget was voted, appeared so well rehearsed and pre-determined... well, now you know.  The vote was rehearsed and pre-determined...unlawfully!

Read more about School Committee issues at The Hamilton-Wenham Patch.
Read more about School Committee issues at The Boston Globe, North Section.
Read more about the School Committee issues at The Hamilton-Wenham Chronicle.

Most of you will recall that the topic of TRUST was mentioned by several speakers at last year's Town Meetings in Hamilton and Wenham and it was reported in the Salem News by the late Steve Landwehr.  We were assured by the School Committee that trust would be restored and transparency created.

Obviously, that is simply not the case.  The only way to begin to break the arrogant behavior of this committee and restore trust is to vote out all incumbents running for re-election to the School Committee.  That will be a good start.  A beginning.

Here are a few other things to consider before you cast your vote:

• $300,000 was "found" in the HWRSD kindergarten account.
• $70,000 was "found" in the school choice account.
• $121,000 was "found" in the Medicaid account.
• $110,000 was "given back" to the teachers after they had agreed to one day without pay as part of their salary negotiations.
• $350,000 budgeted for unemployment was never needed or used.
• An extra $120,000 is available through Chapter 70 that was not included in the new school budget.
• There is a salary for a Latin teacher included in the new budget...but there is NO Latin teacher.

The Selectmen and Fincoms of both Hamilton and Wenham have voted to approve the School budget LESS $500,000.  Even with that, the new budget is $1 million MORE than what was spent last year.  That's not what I call "level funded", as the SC claims.

TRUST is earned... not demanded.  Vote wisely.


Update 5/6/2011: At this week's scheduled public meeting, the Chairman of the School Committee read a letter written by their attorney admitting that they had violated the Open Meeting Law on numerous occasions.  Shamefully, NO APOLOGY was proferred.  The chairman stated that "in the context of the new Open Meeting Law" what they did was a violation.  Actually, in the context of the old Open Meeting Law what they did was a violation as well, so let's not blame it on changes to the Open Meeting Law.

My view: Vote NO INCUMBENTS for Hamilton Board of Selectmen and School Committee

Both the Hamilton Board of Selectmen (BoS) and the Hamilton-Wenham School Committee (SC) have positions that are opening up...one on the Board of Selectmen and three on the School Committee.

For Hamilton Selectman, the position currently held by Bill Bowler is up and he is running for re-election.  His opponent is Jeff Hubbard.

On the School Committee, the positions currently held by Richard Boroff, Tess Leary and Lauren Prior, are being by challenged by Roger Kuebel, Bill Dery and Sean Condon.

All four of these positions are extremely important for the future of our town and schools.  All four of the incumbents have held their current positions long enough.  It is well past time for all four to step aside and let new candidates step forward to correct the many mistakes made by those currently in office.

Here are a few of the reasons why I feel this way...

On the School Committee, the members now seeking re-election have burdened the taxpayers of Hamilton and Wenham beyond the tipping point.  Since 2001 (the last 10 years), the cost of overrides imposed by the school district have totaled nearly $44 million.  Yes...that's MILLION, and that's just the cumulative override costs.  It does NOT include the Cutler Boiler project or the additional 2.5% added to the tax levy each year.  Those same overrides now cost the taxpayers of our two towns nearly $7 million a year...every single year...forever.

So how do you feel about re-electing the very people that proposed, supported and defended the costs that have resulted in nearly the highest property tax rate on the North Shore?  These are the people that made it critically necessary to conduct a complete and thorough operational audit of the school district because of their inability to provide an education for our children at a reasonable and sustainable cost.

They are also the same people that voted against the audit from inception to citzen petition to approval and they are now doing little or nothing to implement cost saving recommendations from the audit report.  On the contrary, they are seeking to implement changes that will serve to INCREASE costs, not REDUCE them.

Example: You have undoubtedly heard about the Latin teacher salary that is included in the new school budget....despite there being NO Latin teacher. Or how about the unused $300k found this year in a kindergarten account?  Or the fact that this year's school budget is expected to be underspent by about $1 million?  Or that $350,000 in expenses were included in this year’s budget to cover unemployment costs for layoffs... but NO layoffs occurred.

Despite all of that, the SC wants an additional $350,000 to put into their reserve E and D account.  Thankfully, both Wenham and Hamilton"s Finance Committees and Boards of Selectmen have all said "NO" and have voted to to fund the school budget with a $500,000 decrease. Bravo.  [Read the full story here in The Patch]

One member who is running for re-election, Richard Boroff, had this to say when asked by the Hamilton-Wenham Chronicle "What experience would you bring to the School Committee?"

ANSWER: "Three years ago I was chair of the School Committee and led the committee to success in getting passed the largest override we had ever had."  That statement alone should convince you to vote for ANY candidate other than Richard Boroff.

(Note: The override was for $1.8 million and at the end of the school year there was more than $800,000 left over...which the district naturally kept and now taxpayers continue to pay that unneeded $1.8 million every year.)

It's time for a big change on the School Committee...a clean sweep.  Please vote for Roger Kuebel, Bill Dery and Sean Condon for School Committee.  That's a good start in the right direction.

Let's move on to the Board of Selectman...

As I previously mentioned, Bill Bowler is seeking re-election.  Bill's been around town a long time and has served Hamilton well on several different boards.  But it's now time for him to step aside.  It's difficult to understand why he is running again considering all the controversy surrounding Hamilton since he began serving as Selectman.  Perhaps the medical insurance benefits he, and he alone among all the Selectmen, receives from our town has something to do with wanting to hold on to an elected postion.  Not a single (non-employee) elected Hamilton official takes advantage of this insurance perk.  Only Bill...compliments of the already over-burdened Hamilton taxpayer.  At the League of Women Voters Candidates Night held on April 27th, in his closing statement, Bill said: "I hope to be re-elected, but if I'm not I'll probably put my hat in the ring for Zoning Board again or something like that."

It's unnecessary to go into detail about Bill's record of obstructionism (he has referred to it himself) or the legal problems he has caused and burdened our town with.  You need only recall that it was REQUIRED, by the Essex County District Attorney's office, that a member of the BoS read out loud and for the record at last year's Annual Town Meeting a portion of the DA's letter to the town regarding multiple violations of the Open Meeting laws.  Bill read the text as required, but without contrition, and certainly without enthusiasm, and he offered no apology to the residents of Hamilton for his part in the unlawful activities.  He is one of only two remaining members of the BoS that were involved with the offenses described in the letter.  It's time he was replaced by someone without "skeletons" in his closet...someone not known by so many as "Grumpy".

Please support and vote for Jeff Hubbard for Selectman.

My view: Vote NO INCUMBENTS for the Board of Selectmen and the School Committee in Hamilton and let's start heading in the right direction rather than continuing down the wrong path, led by the wrong people.

UPDATE: 5/27/11: Hamilton voters overwhelming supported the notion of "No Incumbents" and elected all new members to the three positions on the School Committee and the single position on the Board of Selectman yesterday.  Thank you!

There's A New Group In Hamilton & Wenham

You've all heard of the citizen taxpayer watchdog group known as Enough Is Enough (EiE) right?

They're the ones that successfully ended the previous addiction to school overrides in Hamilton and Wenham and also drew overwhelming support from voters in both towns for an Operational Audit of the school district that is still being debated and considered by the School Committee (SC) and the towns.

Well, it appears there is a new group in town, known as Enough Is NEVER Enough (EiNE).

Who are these people?  You know them as the Hamilton-Wenham School Committee and their actions this past week and at last night's school budget vote is nothing less than appalling.

To his credit, school committee member Don Gallant, one of the three members on the Finance Working Group, had this to say at the opening of the discussion on whether or not to vote for a level funded school budget, less $350,000:

Gallant: "The Finance Working Group had another meeting on Monday...this past Monday night...in which 8 of the 9 school committee members were there. (*See note below) By a 2 to 1 vote...Ann (Minois) and myself in favor, and Richard (Boroff) not in favor...we passed this budget as our recommended budget to the full school committee.  This budget includes the (so-called) $350,000 give back to the towns.  For a variety of reasons we did tax too much for this current year."

He went on to say: "In my 19 years (on the SC) this is one of the highest amounts of money left in the Excess & Deficiency account."

The lone NO vote on the the Finance Working Group, Richard Boroff, had this to say:

Boroff: "I don't see any reason to give it back.  If it's a give back, it would be a give back for a political reason only and it does not make sound educational sense to me.  I've been around long enough to see the district get screwed when it tried to help out the towns do something and I'm not willing to put that foot forward."

How about putting that same foot in your mouth, Mr. Boroff?  Can you believe this guy?  He must be vying to serve as president of the new Enough Is NEVER Enough group.  But wait, there's more:

Boroff: "In all those 8 years (that I have been on the SC), the school district has taken a hit.  Every single one, except for one year.  On the other hand, the towns have funded or increased their funding and refused funding to us at times.  And one time it was a minuscule override...it was about $250k or $260k override which failed on the first go round, and we refused to accept that and went for the same thing.  It was an insult.  A very big insult."

A very big insult?  Really?  Then consider this...

It's insulting to suggest that any override is "minuscule".  In the case of the override Mr. Boroff refers to, the year was 2006 and the amount was $203,000...that year.  In 2007 it was another $203,000.  And again in 2008, 2009, 2010... and again this year...and again without end, because overrides are added to the tax levy and go on FOREVER.  So that's $1,218,000 since the override was approved in 2006.  I don't think anyone but Mr. Boroff would call that a "minuscule" amount.

Now let's go back to the first Boroff quote above where he says, ever so politely:

Boroff: "I've been around long enough to see the district get screwed..."

Is that what you call eight Proposition 2.5 overrides for the district since 2001?  Overrides whose cumulative total, over the past 10 years, adds up to $43,947,000.00.  Overrides that cost the taxpayers nearly $7 million every year going forward?  And that's NOT including the 2.5% tacked on each year to that amount by the towns.  I think it's the taxpayers that got, in Mr. Boroff's words...."screwed".

But I digress.  Let's get back to the Enough Is NEVER Enough group.

At one point in the meeting John McWane, chairman of the Hamilton Finance Committee, got up and asked a few enlightening questions:

McWane: "It is my understanding that initially you had proposed a Latin teacher.  Is that still in the budget?"

Alexa McCloughan (SC chairman): "The funding for the Latin teacher is still in the budget.  It is doubtful that we will have Latin."

McWane: "So you don't have the teacher in, but you do have the money?"

Alexa: "Correct.  We have the money in."

McWane: "Which is a little odd to me.  It seems to me that if you take something out of the budget...if you take a position out..."

Alexa (interrupting): "It's in our instructional line."

McWane: "Right.  I'm just saying that typically when you take a position out, you also take the money out.  But I guess that's not your practice."

Alexa (nodding): "That's not the case."

And finally...perhaps the most obvious exchange of the night indicating the birth of Enough is NEVER Enough:

McWane: "We should be clear that your budget, in terms of what you spend for the schools would not change under either scenario (with or without the give back).  Is that correct?"

Alexa: "Correct."

McWane: "And it's up a million dollars over last year...over the current year"

Alexa: "Uh huh."

WcWane: "Okay.  So what we're really discussing is the $350k and the question is: Should it go to your E&D...or should it go to the taxpayers' pockets.  Is that correct?"

Alexa: "Yes."

WcWane: "Okay.  I just want to make that clear."

So there you have it folks.  Please join me in welcoming the new group: Enough Is NEVER Enough.

...but remind them at Town Meeting and the polls that in Hamilton and Wenham, Enough IS Enough.

******************
*Question: If 8 out of 9 school committee members were present at this meeting, shouldn't it have been posted as something other that a Finance Working Group meeting?  Smells a little like a violation of the Open Meeting Laws.  Anyone care to comment?

Update 5/6/2011: click here to read what happened.

WARNING: Do Not View This Week's Hamilton Selectman's Meeting

If you were not in attendance at the March 21st meeting of the Hamilton Board of Selectmen and you did not watch it on TV or view it online...here's a word of advice: DON'T WATCH IT!

Not since Selectman Bill Bowler was required to get up at Town Meeting last year and apologize to Hamilton residents for violating (numerous times) the Open Meeting laws have I witnessed a more embarrassing moment than the one that came at the end of Monday night's BoS meeting.  Chairman Scuteri chose that time to publicly condemn Selectman Jeff Stinson for answering a question posed to him by a member of the media.  His statement to the reporter was essentially the same as the statements he made in open session at the previous Selectman meeting.  But the chairman made it clear that she wanted all correspondence with the media to run through her...so she can filter it.

QUOTES:

Stinson: "It sends a bad message to the public to say that you are filtering what you're telling the public on certain items."

Scuteri: "We are absolutely not filtering...it's because I think it (your statement) needed to be filtered...because we took a vote."

What?  Point of Information: NO VOTE WAS TAKEN ON THE ISSUE.  (The issue, by the way, was whether or not $275,000 of mistakenly collected taxes should be returned to the taxpayers.  Selectmen Stinson stated he thought it should be returned, as did most others... including the Chairman of the Finance Committee.)

Scuteri: "It sounded like you were standing up for the people and the rest of us weren't."

That's not how I interpreted what Selectman Stinson said.  To me it sounded like a reiteration of what he said publicly at the BoS meeting where the issue was discussed.

Scuteri: "It's also important for the right person to be getting the credit."

Is that what this is all about?  Who gets the CREDIT?

Well, if it is, then I can tell you who deserves all the credit for stirring up controversy and embarrassment for the BoS...and it's not Selectmen Stinson.  As of this writing, an article in the Hamilton-Wenham Patch, Selectmen Spar About Comment To The Press, has generated twelve replies, all in favor of Selectman Stinson's position and opposed to Chairman Scuteri's position.

In support of her condemnation of Stinson, Chairman Scuteri said, "We need to know when we leave here (that) no one is going to be disparaged for possibly taking a position that is controversial."

Unfortunately, that is exactly what happened when she brought up this unnecessary and embarrassing discussion in a public forum.  And you know what is particularly interesting?  It's not Selectman Stinson that is being disparaged as a result.

3/25 Update: Link to Salem News Editorial: http://tinyurl.com/6y5beov

 

5 Reasons Why Experts Say Now Is The Time To Buy Real Estate

I am frequently asked "Is it a good time to buy a new home?" I can frankly say that I have never, in 30 years of selling homes, seen a better time than RIGHT NOW. Here a are five reasons why (compliments of the Downey Patriot):

*****

After the Great Depression of the 1930s, the real estate market looked like a 98-pound weakling after going 12 rounds with Mike Tyson in his prime.

However, those market conditions sparked a post-Depression boom that sustained 65 straight years of appreciation in real estate. And according to one expert, it’s about to happen again.

"This is an unprecedented economic crisis, but it is spawning an unprecedented opportunity," said Greg Rand, a 20-year real estate veteran and author of Crash-Boom (www.crashboom.com) from Career Press. "Real estate prices are at their lowest ebb in years, but anyone with a sense of history in the real estate market knows that those prices will rise as the economy improves and the people who got burned in the mortgage crisis are ready to try their hands at home ownership again. You can’t suppress the American Dream, but you can profit from it if you can have the strength and confidence to act."

Rand’s argument is that recessions and depressions aren’t just about economics. There are other forces at play, too.

"There is a real and powerful psychological component married to a down economy," he added. "When bulls turn into bears, they create a chilling effect that makes even Joe Six-Pack afraid of the economy. Wall Street loves to track ‘consumer confidence’ statistics, and the market always fluctuates based on fear. When there’s an uprising in the Middle East, gas prices go up to $4 per gallon on the irrational fear that any new regime will say, ‘You know, we don’t really want all that money from those Americans for this gunk we pull out of the ground.’ The prices always stabilize. The real estate market is no different. People act and react out of fear. Only the smart ones see through that haze to understand the historic reality that the prices always come back up."

Rand cites five reasons why now is the best time to put your investment dollars into real estate:

1)  No Meltdown - There is no housing meltdown. There was a media and Wall Street meltdown. Housing will save us in the long haul.

2)  It’s Not About The Real Estate - The product at issue is not real estate. It’s America. You can own a piece of it, and as far as its long-term value goes, it’s better than Apple stock.

3)  Flipping Houses is a Myth -The "buy and flip" model is a sucker’s bet. It’s about building real, generational wealth.

4) Condo = College Fund - Have a kid, buy a condo. If you invest the right way, you can build an investment that is comparable to any of the riskier alternatives investors lose their money on every day.

5) Don’t Zoom In, Zoom Out - To understand the stock market you must zoom all the way in and see the pulse of the market, and that changes hourly. To understand real estate, all you have to do is zoom all the way out. If you stand too close you miss the trends, and the trends don’t change with the wind. They stay for the long term.

"It comes down to the idea that no matter how the markets change, no matter which way the winds shift, people will always need a place to live," Rand added. "That’s been true of America since the first log cabin. If you plug into that concept, and leave fear in a box on the shelf, you can be ahead of the curve and ride the wave of the trends that matter."

Reprinted from the Downey Patriot

New Policy Regarding Comments Section of SalemNews.com

Want to comment on stories and articles at salemnews.com?

Beginning Feb. 25, commenters will be required to use their real names when posting on salemnews.com.

In this blog post I will address the reasoning and some of the benefits behind this new policy.

As many of you know, when you write a letter-to-the-editor of most newspapers, you are required to include your name, address and contact information.  I have found that most of the newspapers will then call to verify that you are the author of the letter.

This is a good policy.

Why?...Because to it establishes a level of responsibility and accountability.  Anonymity, on the other hand, allows blowhard commenters to hide behind their pseudonyms and spew all kinds of nasty, angry, and senseless rhetoric...with no accountability for hatespeech.

They are known on blog sites as "trolls".

Allow me to share just a few quotes from an anonymous commenter who has used several pseudonyms to hide his identity.  Most of his comments were directed at me personally or against Enough Is Enough (EiE), a fiscal watchdog group I belong to that spearheaded the popular operational audit of the Hamilton/Wenham Regional School District and successfully ended a decade of Proposition 2.5 overrides in Hamilton and Wenham.

QUOTE:

• "You are the only one on this (comment/message) board that is using you own name. That speaks volumes to your stupidity."
•  "I knew that as soon as I mentioned the village idiot, you would respond."
• "I think that the School Committee and the citizens of Hamilton don't trust you and your group of fools."
• "Most people are sensible enough to not form one of these foolish groups.  But, then there are the exceptional groups like EIE who continue to act as fools."
• "When a vigilante group like this forms, they usually don't last for long.  Maybe they should go back to harrassing the children from Gordon Conwell."
• "The village idiots are at it again."
• "I love when people with no clue and a bad cause come together with collective ignorance."
• "If you wore the Jester's hat when speaking for EIE it would be easier for me to understand."
•  "I have always thought of you as a dim wit but I didn't think that you were this stupid."

How's that for "constructive" commenting?  Would this person spew such nonesense if he were made to provide his real name?  Maybe...maybe not.  But if he did, at least he would be held accountable for what he says.  He would have to take responsibility for his words.  Having seen this individual change pseudonyms in the past, I doubt that he will be willing to stand behind his diatribe if he has to tell the world who he is.  To do so would be an embarrassment to him and he prefers to try to embarrass others, not realizing his words have an opposite effect.

Fortunately, most reasonable and rational people recognize the difference between diatribe and substance and are unwilling to accept the former as the latter.

So I say "BRAVO" to the decision makers at the Salem News and their new policy.  As one reader stated in the comment section of the article announcing the Salem News policy decision:

• "THANK YOU Salem News for taking a step sorely needed a LONG time ago. Resident trolls will hate it, as will those with axes to grind but don't seem to have the guts to be upfront about who they actually are.  No progress can be ever made amongst hardliners and haters. Looking forward to seeing the effect of honesty."

By the way...he used his real name.

Want to read more? . . .
Online Blogging or Online Flogging?: http://tinyurl.com/4fpgrmn
Using Real Names Can Elevate The Discussion: http://tinyurl.com/4hyo8rj

4 Reasons Home Prices Are Likely To Keep Falling

It's been almost five years since the housing bubble peaked, and the bust isn't over yet.

Home prices around the country fell 4 percent last year. They're now down about 31 percent from their peak, according to today's Case-Shiller numbers (see graph).

Last year's declines were widespread: Prices fell in 18 of 20 major metropolitan areas last year. (The two exceptions were San Diego and Washington, D.C.)

More declines are likely to come. Here are four reasons why.

1. There's still a glut of houses on the market.

At the current pace, it would take about seven months to sell all of the newly built houses on the market, and eight months to sell all of the existing homes on the market. In an ordinary market, it would take about six months to sell all of the homes on the market. This excess supply tends to push prices down.

2. Distressed sales account for a huge chunk of all home sales.

Distressed sales include foreclosures and short sales, where the owner sells for less than he owes on the mortgage. According to one measure, distressed sales accounted for nearly half of all home sales in January. These homes typically sell at a discount.

That in turn tends to bring down the prices of other homes, even those that aren't distressed sales. This problem is likely to persist: Nearly 5 percent of all mortgages are in foreclosure, which matches the all-time high. (For more on distressed sales, listen to our interview with Mark Zandi.)

3. Interest rates are rising.

The rate on the average, 30-year mortgage hit 5 percent this month, up from a low of 4.17 percent last fall. Higher interest rates make it more expensive to buy houses. As this morning's WSJ points out, that pushes some would-be buyers to keep renting, which in turn reduces the demand for homes.

4. The government will continue to wind down some of the extraordinary measures it took to support the housing market.

More than 90 percent of new mortgages are guaranteed by taxpayers. This props up home prices by making it easier for people buy houses. This is exceptionally high by historic standards, and will decline over time.

The Obama administration has already recommended lowering the cap on the size of mortgages that are guaranteed by taxpayers through Fannie Mae and Freddie Mac. The cap was raised to as much as $729,750 during the crisis, and is scheduled to fall to $625,500 later this year.

The latest downward leg in home prices started after the end of the another government program — first-time home-buyer tax credit, where the government paid people thousands of dollars to buy houses.

It will probably be a long time before prices get back to the heights of the bubble. A study last year looked at more than a dozen financial crises from the past century, and found that home prices tend to remain below their bubbly peaks during the entire decade after each crisis.

by Jacob Goldstein

NPR - Planet Money