Costs rising, consumer confidence plummeting

Patriot Ledger, The (Quincy, MA) - Monday, February 11, 2008

By Adam Riglian, The Patriot Ledger

Paul Gallagher keeps the heat in his home at 65 degrees, drives his SUV less and buys groceries in bulk.

The father of a 13-year-old son and 8-year-old triplets has changed his lifestyle to help deal with the high price of necessities, stagnant wages and a slowing economy.

'It's getting more and more difficult to keep a budget,' said Gallagher, a vice president of State Street Bank and a Kingston selectman. 'You are cutting into your savings to pay for (heating) oil, you're not going out to eat as often, you're not buying anything in excess you are going to BJ's and buying in bulk.'

Like many, Gallagher is feeling the financial squeeze from an economy that some say is already in recession, coupled with near-record prices for food and fuel.

The U.S. Labor Department recently reported that consumer prices rose by 4.1 percent in 2007, the biggest increase in 17 years, while wages went up by only 3.2 percent. Energy costs rose by 17.4 percent and food costs rose by 4.9 percent. Both were the biggest increases since 1990.

And, according to the U.S. Bureau of Economic Analysis, the gross domestic product the total market value of all final goods and services produced in the country grew by just 0.6 percent in the fourth quarter of 2007, down from 4.9 percent in the third quarter.

The RBC CASH Index, a monthly national survey of consumer attitudes on the current and future state of local economies and people's financial situations, shows that consumer confidence is the lowest it's been since the survery began, in 2002.

Lee Forker of Hingham, the founder of New England Research & Management, says he believes the economy is already in a recession that could last at least a year.

'I am part of the minority group of economists and strategists that think this recession is in the early stages and that it will get worse,' Forker said.

Prices of necessities have been creeping up in the last few years, so the hit on people's wallets has grown, he said. Consequently, people have less discretionary money to spend, he said.

Forker advises consumers to scrutinize 'every single expenditure they make from this point forward.'

Dan Heitzman of Marshfield, founder and president of Stonebridge Financial Consultants in Rockland, says people should pay down credit-card debt and apply for a home equity line of credit in case money is needed for an emergency.

'Pay down some debt and get (yourself) situated for the long haul,' Heitzman said.

Normally, prices come down when the economy slows, but Heitzman and Forker expect food and fuel prices to remain high because of strong worldwide demand.

Paul Phillips, president of the Quincy Education Association, said workers are beginning to notice that wages are lagging behind inflation.

'You agree to a 3 percent raise and you find out whether you won or lost later,' said Phillips, who added that his union 'broke even' in 2007.

Phillips said members of the union are 'nervous' about their wages keeping pace this year.

Michele Stokes Howes, a Weymouth mother of 8-year old twins, is trying to pinch every penny in her $150-a-week food bill.

Her family eats out less frequently and she is shopping at a supermarket that offers better deals.

'We used to go out a lot more than we do now,' Stokes Howes said. '(Now) we go maybe once every other week. Even a Coke nowadays is $2.50 at some places.'

Stokes Howes has even resorted to using discount coupons, a first for her.

'I've started cutting out coupons,' she said. 'I used to have that 'I can't be bothered mentality.''

For Gallagher, energy costs have been even more difficult to cope with than high food prices.

'It's killing me,' he said. 'My oil bill for November was $417; in December it was $577. I just wrote a check yesterday for $617 for January. And I can tell you, we don't have the heat going.'

Gallagher also said he pays $50 a week to fill up his Toyota Camry with gasoline and $75 every two weeks for his Chevrolet Suburban.

'I think oil is going to kill everybody,' he said.

Adam Riglian may be reached at ariglian@ledger.com.

Film producer with Plymouth ties wins Sundance prize

Patriot Ledger, The (Quincy, MA) - Saturday, February 9, 2008

By Adam Riglian, The Patriot Ledger

It is an honor to be considered for the Grand Jury Prize at the Sundance Film Festival. It's a big surprise to win it.

Producer Chip Hourihan felt that rush of shock and joy when his film, 'Frozen River' was selected as this year's best dramatic feature.

The film focuses on two women's struggles between working minimum-wage jobs and the lucrative world of illegal-immigrant smuggling across the Quebec-New York border.

'Ours was a very small film, so we were very pleased just to get in to Sundance,' Hourihan said. 'We were just so honored by the attention they paid it.'

So unexpected was Hourihan's success, that his parents, Bill and Joan of Plymouth, did not make the trip to Park City, Utah, the ski-resort hot spot that annually plays host to the festival.

'He honestly did not expect to win,' Bill Hourihan said. 'We said to him, 'We'll book a flight out to Park City,' and he said 'don't bother.''

The award, which has been given to such films as 'American Splendor,' 'Blood Simple,' and 'The Brothers McMullen,' was presented to the 'Frozen River' team by actor William H. Macy.

The jury was composed of filmmakers Quentin Tarantino and Mary Harron and actors Diego Luna, Sandra Oh and Marcia Gay Harden.

Hourihan recounted the anticipation on awards night.

'We didn't know in advance, so we were sitting there and I was thinking 'It was an honor just to be here,'' he said.

Tarantino began discussing the winning film without naming it, dropping clues as to what film was chosen.

'When Tarantino said, 'it put my heart in a vice,' that's when I thought 'this could be us.''

Hourihan, who has produced six features planning to shoot two films in Massachusetts, one in New Bedford, the other in Cambridge and Somerville.

The latter film, titled 'Angry Candy' after an E.E. Cummings poem about Cambridge is set to shoot in early 2009.

The proposed Plymouth movie studio project has caught Hourihan's attention. Hourihan lives in Brooklyn, but views Plymouth as one of his hometowns.

'Film studios in a community like Plymouth are a wonderful idea,' Hourihan said. 'Come in to a local place and try to support the craft industry.'

The idea that Hourihan could be back in Massachusetts someday, working on films, is exciting to his father as well.

'I'm sure that would be a real advantage because he loves this area,' Bill Hourihan said.

Adam Riglian may be reached at ariglian@ledger.com.

Ex-Duxbury manager chosen for Marshfield administrator job

Patriot Ledger, The (Quincy, MA) - Tuesday, January 29, 2008

By Adam Riglian, The Patriot Ledger

Marshfield selectmen have unanimously offered the town administrator position to Rocco Longo, a former Duxbury town manager.

Selectmen and Longo were to meet today in closed session to negotiate a contract. Longo, the Duxbury town manager from 1994 to 2005 and current Billerica town manager, has 31 years of management experience.

'Mr. Rocco Longo and his experience clearly surpasses all the other candidates,' Selectman Michael Maresco said Monday.

Without discussion, the board decided Monday night to offer the job to Longo, citing his ability to work with schools, his hands-on approach and his openness.

He was among the finalists chosen by the town administrator search committee, and selectmen interviewed him in public on Sunday.

'I just felt that Mr. Longo's leadership style would be a better fit for the town,' Selectman Katie O'Donnell said.

'He intends to be available 24/7, which is great, but what impressed me more was that he was very committed,' Maresco said.

Longo earns $130,000 as town manager for Billerica. Marshfield's advertised maximum for the town administrator position is $135,000, Maresco said.

Selectmen said they hope Longo can start March 1. He will succeed John Clifford, who resigned late last year, citing the need to devote more time to his law practice. He has since been chosen to become Rockland's interim town administrator.

In other business, selectmen diverted some of the $158,000 the town pays the MBTA to another regional transportation authority.

Under the deal, the Greater Attleboro-Taunton Regional Transportation Authority will extend its bus and van services to Marshfield. The new service will not require any extra money, although the exact amount Marshfield will pay remains to be determined.

Also, Police Chief William Sullivan reported that a police captain position will be filled by Lt. Phillip Tavares.

Tavares, 38, has worked his way up the Marshfield ranks for the past 14 years. He started as an assistant animal control officer.

'I have no reservations, and I can't imagine anyone else coming into that position with his skill level,' Sullivan said.

Adam Riglian may be reached at ariglian@ledger.com.