State backing loan for Claremont newspaper

Further down in Kevin Landrigan's Sunday column is a note on a the Executive Council backing a loan for the new owners of the Claremont Eagle Times.

Sign of the Times

The council approved a state guarantee loan of up to $250,000 for the new publishers of the resurrected Claremont Eagle Times.

The loan is for working capital for Eagle Printing and Publishing, the company linked to the Pennsylvania media group that emerged as the suitor after its previous ownership sought bankruptcy protection four months ago.

The lenders will pay an interest rate of 5 percent for the first year and following that, the prime lending rate plus 1.25 percent.

For its part, the guarantee makes the state liable for up to 75 percent of any amount on which the group defaults.

Putting New Hampshire taxpayers on the hook for a private business is a fundamentally bad idea, especially since the loan is at the whim of elected officials rather than through an independant revolving loan fund. The implications of a newspaper existing because of the generosity of politicians is even more disturbing.

Sweetheart Rail Lease getting more attention

The Union Leader's John DiStaso reports on the growing controversy surrounding Transportation Commissioner George Campbell's decision to renew a rail lease owned by State Represenative Peter Leishman, even though Leishman failed to renew it in time:

Fink wrote that Campbell told him "he was currently seeking approval of his budget and that Representative Leishman's membership on the House Finance Committee could adversely affect that budget if the commissioner were to cause any disturbances."

Fink wrote that on July 1, Campbell told him that "he was contacted by House Finance Committee Chairperson Marjorie Smith (D-Strafford County) and was told to execute a renewal of MBRR's agreement.''

Such political interference in a state contract, especially on behalf of a fellow Representative would be highly improper if not outright illegal. Smith denies "contacting Campbell or telling him to execute the contract."

This lease goes before the Executive Council for approval tomorrow. Hopefully, the Council will delay its approval until all information comes to light.

Trimming the Council Agenda

Governor Lynch has sent up a trial balloon to see if the Executive Council would give up its review of low-dollar purchasing and contracts. It popped. Several Councilors were very cool to the idea of lessening their oversight role of state spending and contracting, as Kevin Landrigan reported in the Nashua Telegraph:

Expensive reviews

The Executive Council decided it would take public testimony in the coming months before deciding whether to review fewer government contracts in the future.

As a cost-cutting move, Pignatelli had suggested the threshold for council review be raised. It now deals with personal-service contracts of more than $2,500 and all other contracts above $5,000.

This threshold hasn't been changed in more than a decade.

Massachusetts ($100,000), Vermont ($100,000) and Connecticut ($10,000) all have higher thresholds, while Maine's is set lower ($2,500), according to Administrative Services Commissioner Linda Hodgdon.

Rhode Island reviews all its contracts regardless of costs, although that state doesn't have an executive council that has to approve them.

This state estimates that in the last budget year, the cost to prepare the 3,255 contracts the council reviewed was $594,508. If the threshold were raised from $5,000 to $20,000, this would get rid of 455 items at a savings of $78,125.

Hodgdon said one advantage of this reform is it would save vendors from having to wait an average of six weeks to get started on a job.

"This will make it easier to do business with the state,'' she said.

Manchester Republican Councilor Raymond Wieczorek said he doesn't like the idea of raising the limit.

"I am not inclined to increase the amount," he said. "You would be surprised the things you can catch through this process as it uncovers the loopholes that could occur."

Burton agreed.

"I feel comfortable with the way that it is right now,'' Burton said.

Hampton Democratic Councilor Beverly Hollingworth said she, too, wasn't moved to act.

"I'm not ready to make any kind of decision on this,'' Hollingworth said.

Pignatelli said she merely brought it up for discussion, given that the state is facing tough economic times.