June 16, 2010: Karyn Polito runs for treasurer

>> Rooney: SHREWSBURY'S STATE EXECUTIVE IS KARYN POLITO.

HE IS ATTEMPTING HER FIRST RUN IN STATE-WIDE OFFICE.

IN APRIL, SHE WAS UNCHALLENGED AS SHE ACCEPTED THE REPUBLICAN NOMINATION FOR STATE TREASURER.

SHE SAYS SHE'LL PUT HER MONEY WHERE HER MOUTH IS IF ELECTED.

AND KARYN POLITO IS HERE.

WELCOME.

>> I'M HAPPY TO BE HERE WITH YOU, EMILY.

IT IS NOT RADICAL IDEAS.

THESE ARE REASONABLE IDEAS.

MANY OTHER STATES EXCLUDE THEIR ELECTED OFFICIALS --

>> Rooney: I HAVE NEVER HEARD THAT BEFORE.

YOU'RE NOT TALKING ABOUT STATE WORKERS.

YOU'RE TALKING ABOUT ELECTIVE STATE OFFICIALS.

YOU SAY IF YOU'RE ELECTED, YOU'LL TAKE YOUR MONEY OUT OF THE STATE PENSION.

IS THERE A CONFLICT FOR STATE OFFICIALS TO HAVE MONEY IN THE PENSION SYSTEM?

>> I THINK SO.

I HAVE FILED BILLS TO BRING BETTER CONDITIONS TO OUR PENSION.

IT COSTS OUR TAXPAYERS $1.4 BILLION EACH YEAR FROM THE GENERAL FUND.

MONEY THAT COULD BE USED FOR LOCAL SERVICE, TO HELP THE MOST VULNERABLE, BUT IT IS USED TO PAY OUT THE PENSIONS.

I SAY IF WE'RE GOING TO GET TO MEANINGFUL REFORM, TAKE THE POLITICS OUT THE STATE ELECTED OFFICIALS, LIKE MYSELF, OUT OF THE SYSTEM.

AND WE'LL GET TO THE REAL REFORM I THINK IS NECESSARY.

BECAUSE WE CAN'T SUSTAIN THE WAY IT IS WORKING NOW.

>> Rooney: HOW DOES THIS WORK FOR PEOPLE WITHOUT ELECTED JOBS AND JOBS THAT DON'T PAY THAT WELL.

>> IT IS NOT THE CIVIL SERVICE, THE TEACHER, THE FIREFIGHTER OR THE POLICE OFFICER WHO IS EARNING THEIR PENSION.

BUT THE STATE ELECTED OFFICIALS WILL HAVE TO BE IN A 401K-STYLE SYSTEM.

>> Rooney: NO SOCIAL SECURITY?

>> WELL, NO.

THEY HAVE TO SAVE FOR THEIR RETIREMENT, MUCH LIKE THOSE IN THE HIGHER EDUCATION IN U MASS NOW.

THEY'RE IN A DEFERRED COMPENSATION SYSTEM, AND THEY'RE SAVING JUST LIKE EVERYBODY ELSE.

>> Rooney: AND YOU ALSO SAY THAT YOU WANT TO BRING GREATER ETHICAL REFORM, WHICH TOTALLY MAKES SENSE.

YOU SAY ANYBODY -- NO LOBBYING, NO PEOPLE WHO --

>> LET ME PUT THIS INTO CONTEXT.

80% OF THE PEOPLE IN A RECENT POLL SAID THEY DON'T TRUST GOVERNMENT.

PEOPLE ARE REALLY WORKING HARD TO LIVE WITHIN THEIR MEANS BECAUSE THEY HAVE TO.

AND I SEE A BIG DISCONNECT OF WHAT THEY'RE DOING AND WHERE GOVERNMENT IS.

IF YOU LOOK AT THE TREASURER'S OFFICE, THERE IS A SCHEME.

AND PEOPLE ARE SAYING, WAIT A MINUTE, HOW IS THIS HAPPENING?

>> I SAY ANYONE WORKING WITH ME AS A NEXT-DAY TREASURER WILL NOT BE ABLE TO LOBBY DURING MY TERM OF BUSINESS, SO YOU CUT OUT THAT REVOLVING DOOR.

A LOT OF PEOPLE ASK ME ON THE CAMPAIGN DRILL, WHAT DOES THE TREASURER DO?

I'M GOING TO BE THE CHAMPION FOR THE TAXPAYERS.

WHEN IT COMES TO DEBT MANAGEMENT, WE HAVE THE SECOND HIGHEST IN THE COUNTRY, PER DEBT BY MEASURE OF PER CAPITA, AND BY INCOME.

IT IS NOT SUSTAINABLE.

OUR PENSION SYSTEM IS COSTING TAXPAYERS BILLIONS OF DOLLARS.

NOT SUSTAINABLE.

I SAY LET THE SUN SHINE IN.

USE THE WEBSITE.

LET PEOPLE KNOW WHAT THE FUNCTIONS OF THE TREASURY ARE.

AND WHO DOES BUSINESS WITH THE TREASURY --

>> Rooney: WHO IS CONTRIBUTING.

>> WHO IS CONTRIBUTING TO THE TREASURY.

IT DIDN'T TAKE YOU DAYS AND DAYS TO SIT THROUGH O.P.F. RECORDS TO FIND OUT WHAT THE CONFLICTS ARE.

DISCLOSE IT.

LET THE SUN SHINE IN.

>> Rooney: ON THE CASINO GAMBLING THING.

YOU'RE NOT OPPOSED TO IT AT THIS POINT?

>> NO.

I HAVE VOTED IN SUPPORT OF EXPANDED GAMING, BUT IT DOES NEED TO BE IN A SENSIBLE FASHION.

I VOTED AGAINST ONE BECAUSE IT INTRODUCED SIX GAMING VENUES, WHICH IS A LOT OF NEW GAMBLING IN THE STATE.

HE WAS GOING TO LICENSES FOR SLOTS IN RACE STRAX.

I SAY ANY QUALIFIED BIDDER, INCLUDING THE RACETRACK OWNERS, SHOULD COME TO THE TABLE AND BID IN AN OPEN AND COMPETITIVE MANNER, SO WE GET THE MOST AMOUNT OF JOBS AND THE HIGHEST AMOUNT OF REVENUE DOWNSTREAM TO HELP OUR CITIES AND TOWNS.

I SAY OPEN AND COMPETITIVE BIDDING.

I THINK SIX IS TOO MUCH FOR THE STATES.

WE'LL PROBABLY SETTLE ON SOMETHING SMALLER THAN THAT IN REGIONS OF THE STATES WHERE THE COMMUNITIES WOULD WANT THEM.

>> Rooney: SO THIS IDEA OF SLOTS AT THE RACETRACKS, THEY SAY THEY SHOULD BE PUT IN THE POSITION OF BIDDING COMPETITIVELY.

THERE IS NO GUARANTEE.

CBS PUT -- C.V.S. PUT LITTLE PHARMACIES OUT OF BUSINESS.

YOU'RE SAYING THIS IS PART OF DEALING BUSINESS IN THE STATE.

>> I THINK THAT IS PART OF WHY PEOPLE DON'T HAVE CONFIDENCE IN THE GOVERNMENT.

THEY PERCEIVE BEACON HILL AS A PLACE WITH A LOT OF INSIDE DEALS.

THE RACETRACK OWNERS SHOULD BE QUALIFIED TO BID LIKE EVERYBODY ELSE AND COME FORWARD WITH THEIR BEST DEAL.

ONCE WE LOOK AT ALL OF THE PROPOSALS, WE CAN DECIDE WHAT ARE THE BEST VENUES AND WAY TO EXPAND GAMING IN THE COMMONWEALTH.

>> Rooney: CAN ANYBODY HAVE A SLOT POWER?

WHY NOT A GROCERY STORE?

PEOPLE GO IN THERE ALL OF THE TIME?

DOES IT HAVE TO BE A DESTINATION?

>> IT DOESN'T HAVE TO BE.

THERE MAY BE MODELS OUT THERE ACROSS THE COUNTRY THAT ARE FAR BETTER THAN WHAT WE'RE SEEING IN MASSACHUSETTS.

LET'S LOOK AT THEM ALL.

I DON'T FEEL GOING FROM ZERO TO SIX IN A MATTER OF YEARS IS VERY HEALTHY FOR THE COMMONWEALTH AND I DON'T THINK IT IS REALISTIC TO THINK WE'RE GOING TO ACHIEVE THE HIGH NUMBERS THEY'RE SUGGESTING WE WILL IN TERMS OF JOBS AND REVENUE.

MY THINKING IS A SLOW AND MORE MODERATE APPROACH IS A MORE THOUGHTFUL APPROACH.

IT IS NOT GOING TO SOLVE OUR BUDGET PROBLEMS.

WE'RE FACING A $2 BILLION DEFICIT GOING INTO NEXT YEAR.

WHICH IS WHY I PROPOSED YESTERDAY -- GOVERNOR PATRICK SAID LET'S CUT THE BUDGET 3.5%.

I SAY LET THE CUTS SPAN EVEN IF WE GET THE MONEY.

BECAUSE WE'RE FACING A VERY DIFFICULT TIME, EMILY.

IT IS LIKE A POP -- IT'S TERRIBLE.

SO IT'S NOT WORKING.

SO I SAY --

>> Rooney: YOU WOULD PUT THAT MONEY IN THE BUDGET.

TIM CAHILL SAYS HE WOULDN'T HAVE.

GOVERNOR PATRICK IS COUNTING ON THAT MONEY --

>> YOU USE IT FOR WHAT IT IS INTENDED FOR.

>> Rooney: WOULD THEY INCLUDED IN IN THE ORIGINAL BUDGET --

>> NO, I WOULD NOT HAVE INCLUDED IT.

THEY'RE SPENDING MORE THAN THE REVENUE COMING IN, SO THEY'RE BORROWING MONEY.

HOW THAS THE GOVERNOR BEEN ABLE TO GET THROUGH THE BUDGET YEARS.

HE USED ONE TIME REVENUES, LIKE THE RAINY DAY FUND, AND THE FEDERAL STIMULUS MONEY.

THAT MONEY IS NOT GOING TO BE AVAILABLE GOING INTO NEXT YEAR.

THAT'S WHY I SAY KEEP THE CUTS IN PLACE, EVEN IF WE GET THE MONEY FROM THE FEDS, AND FOLLOW MY OTHER PROPOSAL, WHICH IS TO PUT A CAP ON ANY NEW CAPITAL SPENDING.

WE HAVE TO WATCH OUT WHAT WE'RE DOING TO OUR STATE.

WE'RE NUMBER TWO IN THE COUNTRY.

WITH THE HIGHEST DEBT.

NUMBER TWO, PER CAPITA, AND BY MEASURE OF INCOME.

THAT'S NOT SUSTAINABLE.

I SAY WE PUT A MORATORIUM ON ANY NEW CAPITAL SPENDING, EXCEPT FOR EMERGENCIES, AND WHEN YOU LOOK AT WHAT THAT'S DOING -- THEY'RE BORROWING MORE MONEY UNDER PATRICK'S PLAN THAN WHAT IS COMING IN.

IF YOU GET A 3% BUMP IN YOUR INCOME, AND YOUR CREDIT CARD EXPENSES ARE GROWING AT 8% --

>> Rooney: DO YOU HAVE TO HAVE AN M.B.A. TO DO THIS JOB?

>> NO, YOU NEED SOMEONE LIKE ME WITH COMMON SENSE AND A BACKBONE TO STAND UP TO THE SPECIAL INTERESTS ON CAPITOL HILL.

AND WHEN I GET OUT THERE LISTENING TO PEOPLE, I HEAR I'M TRYING TO MAKE ENDS MEET.

I'M DOING EVERYTHING RIGHT, I'M PAYING FOR MY TAXES, SAVING FOR MY KIDS' EDUCATION AND ACING FOR MY REQUIREMENT.

AND THE GOVERNMENT KEEPS TAXING ME LOOK AN A.T.M.

>> Rooney: KARYN POLITO, NICE TO HAVE YOU HERE.

WHEN WE CONTINUE, IF YOU COOK IT, WILL THEY COME.