Reading today's edition of the Concord Monitor and the statements of Governor Lynch about the budget and the casino gaming proposals.

"Yesterday, Lynch, a Democrat, told reporters that "gambling is off the table for this year" and said he had told lawmakers he would create a commission to study the pros, cons and possibilities of expanded gambling for the future."- Concord Monitor.

Creating a commission to study the pros, cons and possibilities of expanded gambling for the future. Now there's a novel idea. New Hampshire needs another commission. Or does it? Is it politically advantageous for Governor Lynch to make this move? If his office doesn't support the ideas of casinos in New Hampshire shouldn't he have just killed the whole idea and be done with it?

As I reread the article I couldn't help but think about places like Berlin and just today Colebrook and North Stratford as employer Ethan Allen announces a 260 person restructuring.

Who would be on this Commission? State officials like DRED who already have the responsibility to create jobs and economic development? Lobbyists who have expended a great deal of time and resources this legislative session to advance what I think are reasonable plans. What kind of work would this commission do towards this whole idea. Is this work the Legislature hasn't already done?

Questions to be answered.

The race for the NH Second Congressional district has begun. I think the first candidate to step forward is Atty. Ann Mclane Kuster. I don't know the candidate but I do know the Second Congressional District. I looked at the campaign website

"Creating and preserving good paying jobs, making quality health care affordable for all, and taking bold steps to develop clean energy are all positive changes we must make now for a better future for New Hampshire families."

This statement covers alot but is this what the Second Congressional District needs for representation? Then I started thinking about the possibility of Katrena Swett for Congress. Several years back Ms. Swett ran unsuccessfully for Congress she did a campaign swing through northern New Hampshire. I remember her being asked substantive questions about regional economic development and jobs, and all Swett seemed to be able to come up with is that she would support the creation of a national "volunteer job corps." This was while Americorps was still in its fledgling state.

Its early in this race but on this basis I think if it were a primary battle between Kuster and Swett that Kuster appears to be the stronger candidate. Again I don't know Atty. Kuster and what her responses would be to the issues that face New Hampshire.

But even if she would win the primary it will be a race against a strong Republican candidate a candidate I hope isn't Jennifer Horn.

Source: Kuster campaign website.

  This is an editorial from a recent edition of the Caledonian Record newspaper. I really liked both the content and the ideas. Somehow there is and continues to be a void between the hard working business people and the lofty ideas of the policymakers, consultants and state agencies that supposedly are in the business of economic development and jobs.

UNH is apparently starting a curriculum about franchising. It should be interesting to see what kind of leadership and experience the state run college recruits to run this program. Notice I said experience running a business and making money.

Guess that is why I found Gov. Benson to be at least new air in the stodgy lobbyist dominated NH Statehouse.

"Don't forget to bring your brains to work."- Gov. Benson.

Sometimes I wonder if New Hampshire would be in the same set of circumstances that it is today, if, the one term Governor had been re-elected even for just one term. My guess is no but that ain't the way politics works.!

"Three cheers for Duncan Kilmartin and Dena Gray. Kilpatrick, Republican representative to the Vermont Legislature from Newport, and Gray, owner of Newport's Eastside Restaurant, were the only private sector business people out of 50 who attended an economic development forum in Barton. All of the rest were from alphabet agencies that live directly on taxpayer money or grants that ultimately come from taxpayer money, i.e. they are on the dole.

Both Kilpatrick and Gray pointed that out, though a bit less brutally than we do. Both wanted to know, "Where are the people who make the money?" And we ask the same thing. Do academics and public agency people know how to start, run, and succeed at a business? Do those whose salaries don't depend upon their brains and energy, but are guaranteed by a distant public entity, know anything about entrepreneurship other than what they have read in a book? Do those who haven't ever had to meet a payroll know the intense pressure of that necessity in hard times?

Academics and alphabet agency people remind us of a poem by Alistair Reid "Curiosity." It is an allegorical treatment of the differences between those who are involved and those who are not. If the cats are the entrepreneurs who weren't there, all but two of the people at this forum are like the dogs, in this excerpt:

"Nevertheless, to be curious

is dangerous enough. To distrust

what is always said, what seems

to ask odd questions, interfere in dreams,

leave home, smell rats, have hunches

do not endear cats to those doggy circles

where well-smelt baskets, suitable wives, good lunches are the order of things, and where prevails

much wagging of incurious heads and tails."

We agree with Rep. Kilpatrick and Ms. Gray. Next time, whoever sponsors such a forum ought to make sure that some of the people upon whom the economy of Vermont depends are there."
""

  The Christmas Farm Inn in Jackson has been sold. This is the resort property that was once owned by former Representative Bill Zelliff. While he was in politics every July he would have a really neat party called Christmas in July. I used to go to it.

  They had a great band, good food and politicos from everywhere would be there. The greatest experience I ever had at this event was the year Senator Bob Dole was the Republican candidate for President. Its a beautiful mountain day, the music is playing the conversation is cordial and upbeat and I looked up in the sky and a most impressive, white and elegant looking helicopter approaches from the south. It was the candidate himself.

  Day is turning into night as the helicopter lands, the music is still playing and the party is still going on, I saw what I thought to be the next President of the United States exit and head towards the mass of people I'd guess around 250-300. The helicopter quickly lifts off and heads south again.

  I guess with a perception and a scene like this I expected some powerful if not life altering event (likely a speech) would happen; I'm a strong supporter of Senator Dole so I was hoping the words would be a strategic, decisive and powerful as the aircraft that just took off.  

  That didn't happen. Instead Senator Dole just came to the party and said hi to everyone that happened to be around him. No speeches and no policy. And interestingly, as I would later learn there wasn't any press there either.

  Just a great Christmas in July party at the Christmas Farm Inn in Jackson.

  I've never seen a party like this in New Hampshire.  Times have changed.

  Unfortunately.

The State Senate has passed the gaming legislation. Now it moves to the house. Notice on WMUR the only people who were interviewed about this legislation were Sen. Dellasandro and former Senator Rubens who suggested the Senate is controlled by the gaming interests. Or his remarks were at least to this effect.

Is this objective reporting?  A 16-8 vote on a multi million dollar piece of legislation and this is who WMUR chooses to interview about this legislation.

I'm a supporter of casino gaming in New Hampshire. I believe that gaming would add revenue, taxbase, investment and jobs to the state's largest industry and that this investment would lead towards greater economic prosperity statewide. It's being done in other areas. At the end of May the Sands Bethworks Casino in Bethlehem, Pennsylvania opened. A former historic and derelict steel mill transformed into jobs and economic development. Niagara Falls, New York a heavy tourist area with casinos on both sides of the falls. Again an argument of what could be done when tourism and gaming are zoned together.

Please contact your State Representative and ask them to support this legislation.

Something like this could be done in New Hampshire. And it would be successful!

Source: Steve Wynn interview about casino development (Encore).  

  These are the March minutes from the New Hampshire Railroad Revitalization Association, a non governmental agency. However the New Hampshire Railroad Transportation Authority is a governmental agency. And in these minutes I found some issues that concern me:

1. Corridor Analysis- This is the proposed commuter rail between Boston and southern New Hampshire note they haven't said anything about market analysis or exactly how many people would be using this service. But still they push on. Picture millions of dollars being spent for empty seats to roll into Manchester.

2.  Letter of Agreement with NHDOT- The New Hampshire Department of Transportation is going to implement NHRTA policy and provide administrative support. This approved by Gov. Lynch. Is this what the Legislature intended when they started the NHRTA? At one time former Senator Peter Burling sent out a request to business leaders in places like Manchester and Nashua to get involved with the NHRTA including possibly providing funding and administrative support. I think Burling was simply looking for someone to answer the telephone!  So where are the business leaders former Senator Burling?

I think this whole idea is a non starter. If New Hampshire is interested in railroad revitalization and the Capitol Corridor then the starting place should be close coordination with surrounding states in both passenger and freight issues. With the significant capital costs rail can only be effective where there is volume of freight and passenger over a distance that is greater than 100 miles, if it isn't than the highway becomes more competitive and affordable. The Amtrak Downeaster and to a lesser extent the Amtrak Vermonter are examples of this. In both of these cases there is a significant amt. of freight traffic on these lines which can help lower the overall fixed costs creating a viable market or at least an attempt at a market for the passenger trains. Even then both require a taxpayer subsidy.

This environment doesn't exist in New Hampshire. I don't see New Hampshire working with other states in regional cooperation in these areas either.

Tom reported on the latest NHRTA meeting as follows:

1. New NHRTA Board Appointments- Gov. Lynch has appointed Sen. Martha Fuller Clark to fill the seat vacated by Peter Burling necessitated by his leaving the Senate. Peter Burling is back on the Board - he was reappointed by Gov. Lynch to an at-large seat newly created by legislation.

2. Funding -Lisa Levine (Rep. Hodes Staffer ) reported that NH will get $1.9 million for the NH Capitol Corridor alternatives analysis from Hodes’ earmark on the 2009 omnibus funding bill. She said the larger funding needed for corridor construction must come from the 2010 Federal DOT 5-year reauthorization. Kit Morgan (NHDOT) reported that the guidelines for applying for federal stimulus fundsare supposed to be available in April. He said NHDOT, in coordination with the NHRTA, will apply for Capitol Corridor funds.

3. Election of Officers & Executive Committee - The Board voted the following: Peter Burling, Chairman; Steve Williams, Vice-Chair; Kathy Hersh, Secretary; David Preece, Treasurer.These officers plus MikeIzbicki, Ron O'Blenis, Tim Moore, Mark Brewer and Christine Walker make up the nine-member Executive Committee.

4. Letter of Agreement with NHDOT -Chairman Burling announced that, with Gov. Lynch's approval, NHRTA will enter into a Letter of Agreement with DOT for them to implement NHRTA policy and to provide administrative assistance until such time that NHRTA has its own funding and staff.

The next NHRTA meeting is tentatively scheduled for May 8.

This is a video from the Norfolk Southern Corporation showing the benefits on intermodal rail transportation and the creation of economic development and jobs. In this case with the Commonwealth of Virginia as an example a public-private partnership that will build economic value and get results.

I don't know why this isn't happening in New Hampshire.

Source: Norfolk Southern Corporation.

Recently I got in touch with Executive Councilor Ray Burton to ask him why he continues to support a ten million dollar investment in the St. Lawrence & Atlantic Railroad through northern New Hampshire.

 He didn't respond! He didn't respond!

 Instead I get a voice mail from Jack Ferns who is the Director of Railroads for the New Hampshire Department of Transportation. Initially, he was very interested in my concerns but then after I started discussing issues of substance....well, that was the last I heard from him.

 Here are my concerns:

 Executive Councilor Ray Burton supports spending ten million dollars on a railroad line through northern New Hampshire. The question is why?

  The St. Lawrence & Atlantic Railroad runs from St. Rosalie, Quebec through Groveton and the Berlin-Gorham areas before heading southeast towards the Maine coast. Opened in 1859 and known as the SLR a railroad line that was once a strategic link between Canada and the ice free Atlantic. But today a capital intensive business that faces a challenging market environment including the economy in Coos County.

  "This project is critical for all current and future industry in the North County that could use rail freight services." Burton said.  I'm questioning whether this proposed ten million dollar investment can even support this idea. During the past two years the economy in Coos County has been decimated, paper mill closures in Berlin, Groveton and Gorham have thrown over 750 people out of work and killed a major customer and revenue source for the SLR. The SLR is owned by the publicly traded Genesee & Wyoming Industries who claim that a public-private partnership will be a long term asset to Coos County and New Hampshire.

  "This project will also directly help attract future rail-served industry to sites along the main line in Coos County, helping us bring new industrial private sector jobs to the area." said Jerry E. Vest who is the Vice President of Governmental Relations for Genessee & Wyoming Industries the parent company of the SLR. According to its 2008 annual report Genesee & Wyoming Industries reported revenues of $608 million, acquired five railroad companies and has an interest in tax credits under the TARP program which was created by the U.S. Congress. When asked where exactly the industries and jobs would be located in Coos County and how much of its own capital they would be contributing to this project, Mr. Vest didn't answer.

 So where are the jobs? Why is Councilor Ray Burton supporting this project? Is investing ten million dollars  in a railroad line rolling past closed paper mills an effective use of taxpayer capital and good transportation policy? I don't think it is. I think experienced politicians like Councilor Burton are supporting any project or idea that could bring needed capital and resources into a beleaguered Coos County and this is wrong. If the paper mills had remained open then this might be an argument for this project but they didn't. Coos County is sliding downhill and investing ten million dollars isn't going to change this.

Today I spent part of the day playing phone tag and voice mailbox with Director Jack Ferns of New Hampshire Department of Transportation. Director Ferns is the head of Aeronautics but he also has authority over the Bureau of Railroads as well. I'm concerned about the proposed $10 million dollar funding for the St. Lawrence & Atlantic Railroad through northern New Hampshire. I'm concerned that this railroad has very few customers and revenue capability in New Hampshire and if this is a good investment.

I'm still working on my ideas, apparantly, Mr. Ferns was in meetings in Manchester. Below are some of the dynamics of this whole idea.

Executive Councilor Ray Burton supports spending over ten million dollars on a railroad line through northern New Hampshire. The question is why? 

Originally constructed in 1859 the St. Lawrence & Atlantic Railroad runs from St. Roaslie, Quebec through the Groveton and Berlin-Gorham areas before heading south towards the Maine seacoast. Once a strategic link between Canada and the ice free Atlantic, the St. Lawrence & Atlantic known as the SLR gradually fell into a decline and today resembles the economy in Coos County.

"This project is critical for all current and future industry in the North Country that could use rail freight services." Burton said. But whether a ten million dollar taxpayer investment can support this idea is a question that remains. During the past two years the economy in Coos County has been decimated paper mill closures in Berlin, Groveton and now Gorham have thrown over 750 people out of work and killed the only major customer and revenue source for the SLR in New Hampshire. The SLR is owned by the publically traded Genesee & Wyoming who claims that this public-private partnership will be a long term asset to Coos County and New Hampshire.

"This project will also directly help attract future rail-served industry to sites along the main line in Coos County, helping us bring new industrial private sector jobs to the area." said Jerry E. Vest vice president of the Genesee & Wyoming Railroad. Mr. Vest said that this railroad could not afford to do this project on its own. According to its own annual report in 2008 the Genesee & Wyoming completed 5 major acquisitions of railroads for $370 million in addition to receiving tax credits from the TARP program created by the U.S. Congress. And the railroad still needs another ten million from New Hampshire taxpayers. I asked Mr. Vest to explain what industries in northern New Hampshire would be served and exactly how many jobs would be created. He didn't answer.

Why is Councilor Burton supporting this project? Is investing ten million dollars in a railroad line that rolls past closed paper mills and effective use of taxpayer capital and good transportation policy?  I don't think it is. I think career and experienced politicians like Councilor Ray Burton are supporting any project or idea that could bring needed capital and resources into a beleaguered Coos County and this is wrong. If the paper mills had remained opened this might have been an argument for this project but they didn't. Coos County is sliding downhill and investing ten million dollars in a railroad isn't going to change this or even alter the direction.

Several days ago I tripped over an article I found on the CNN finance website. The article was about the economic rebound of the paper manufacturing industry. The first thing I thought about was New Hampshire and the closure of the mills here.

I still don't think these mills had to close. And more importantly, close with the loss of jobs and the very lifeblood of the economy in northern New Hampshire.

I'm down here in White River Junction now. To the left of the this red Vermont Rail System locomotive are the tracks of the former Boston & Maine Corporation Berlin Branch line. These tracks ran up to Berlin and Groveton. Today, most of these line(s) have either been abandoned or are now owned by the States of New Hampshire and Vermont.  And none are profitable.