The Romney Book Part 3 of 4

100

HEALTH CARE

PRESCRIPTION DRUGS AND GENERAL ISSUES

Romney Flip-Flopped On Importing Cheaper Prescription Drugs From Other Countries, Now Opposes It

101

Romney Aide In 2003: Romney “Not Opposed To Legalizing Drug Importation.” “The governor is not
opposed to legalizing drug importation, but this is a short-term solution because drug companies are already
acting to limit their sales to Canada in an effort to curb re-importation. Gov. Romney is committed to devising a
comprehensive, long-term strategy to bring down the high cost of prescription drugs and will work with all
interested parties, including members of our legislature, on this important issue.” (Jacqueline Reis and Danielle
Williamson, “Statewide Tour Touts Importing Drugs,” Telegram & Gazette [Worcester, MA] 10/22/03)

Romney In 2004: Importation “Not The Solution To America’s Problem.” “Importing drugs from other
countries could leave U.S. citizens vulnerable to unsafe medicines and hurt the development of a vital
Massachusetts industry, Gov. Mitt Romney said yesterday to biotechnology executives. ‘I believe that drug
importation is not the solution to America’s problems,’ Mr. Romney said at the annual meeting of the
Massachusetts Biotechnology Council at the Sheraton Boston hotel.” (Lisa Eckelbecker, “Leaders Deride Drug Imports,”
Telegram & Gazette [Worcester, MA], 4/30/04)

Romney Criticized 2003 Medicare Prescription Drug Benefit

“Romney … Joined Some Of His Fellow Republicans In Chastising The Bush Administration On … The
Medicare Prescription Drug Benefit.” (Susan Milligan, “Romney Faults Bush On War, Medicare, And Ports Pact,” The Boston
Globe, 2/27/06)

Romney Criticized “Outrageous Rate” Of Growth Of Drug Costs. “I’d like to see a holistic program that says,
‘OK, what are we going to do for people who are retiring in Medicare and those that are poor on Medicaid, how do
we make sure that this doesn’t become an overwhelming burden?’ Let’s include prescription drugs but keep it
from growing at such an outrageous rate.” (Fox’s “Fox News Sunday,” 2/26/06)

“Romney … Criticized The Medicare Prescription Drug Package As Too Expensive.” (Susan Milligan, “Romney
Faults Bush On War, Medicare, And Ports Pact,” The Boston Globe, 2/27/06)

 Romney: “Well, I think we have a great advance in our health care in the country by providing prescription
drugs to seniors. But I think that we cannot afford a major new entitlement.” (Fox’s “Fox News Sunday,” 2/26/06)

 Romney: “In fact, we need to find a way to reduce our entitlement burden, particularly as the baby boomers
get ready to retire.” (Fox’s “Fox News Sunday,” 2/26/06)

Romney Attacked Bush White House Record On Health Care, Prescription Drugs

Romney Faulted White House For Not Tackling Broader Entitlement Reform During Part D Debate.
“Massachusetts Gov. Mitt Romney (R) put some distance … between himself and the Bush Administration on the
issue of health care, criticizing the White House for failing to demand significant reforms in Medicare and
Medicaid when Congress enacted a prescription drug benefit for senior citizens.” (Dan Balz and Chris Cillizza, “A
Romney-Kerry Rivalry?” The Washington Post, 1/27/06)

 “Romney Said … The Administration Created A New And Costly Entitlement Program Without
Exacting Changes Aimed At Holding Down Costs.” (Dan Balz and Chris Cillizza, “A Romney-Kerry Rivalry?” The
Washington Post, 1/27/06)

Romney Wanted To Finance Drug Benefit With Savings Achieved From Overall Health Care Reforms. “I
would have hoped to do it differently … I would have hoped to include within the additional prescription benefit
certain reforms to Medicaid, Medicare and our entire health care system to be able to pay for a very helpful
prescription benefit … It’s a new entitlement program, and I would have wanted to finance that entitlement with
reforms and changes and adjustments in the overall program.” (Dan Balz and Chris Cillizza, “A Romney-Kerry Rivalry?” The
Washington Post, 1/27/06)

MASSACHUSETTS HEALTH INSURANCE PLAN

Romney Used To Take Credit For State’s 2006 Health Insurance Law, Calling It “Once In A Generation”
Achievement

April 2006: Romney Went Extra Mile To Stage “Near-Presidential” Signing Ceremony, Including Slogan-
Bearing Banners And A Fife-And-Drum Corps. “In a Colonial-era hall, with a fife-and-drum corps marching in
with him, Gov. Mitt Romney (R) signed a bill Wednesday requiring all Massachusetts residents to purchase health
insurance – portraying the measure as a historic solution to health-care costs, even as questions emerge about
102

whether the state can afford it. The signing [was] staged with a near-presidential attention to theatrics and slogan-
bearing banners … ‘I want to express appreciation to Cecil B. DeMille for organizing this event,’ quipped Romney,
who is considering a run for president in 2008, and seems likely to use his work on the bipartisan health-care bill
as a talking point on the campaign trail.” (David A. Fahrenthold, “Mass. Marks Health-Care Milestone,” The Washington Post,
4/13/06)

“Romney, As He Prepares For A Potential White House Bid In 2008, Is Casting The Bill As A Republican
Solution To The Healthcare Crisis Democrats Have Failed To Fix.” (Scott Helman, “Author, Author,” The Boston Globe,
4/16/06)

 Boston Herald: “Romney … hailed the legislation as a national model that can be replicated to help eliminate
inequities in the nation’s system of paying for health care.” (Casey Ross, “Critics Slam Insurance Plan As Intrusive And
Unwieldy,” Boston Herald, 4/13/06)

 USA Today: “Romney has touted the law as a national model for universal health care coverage without a
government-run system.” (Paul Leavitt and William Welch, “Health Coverage Now Requirement In Mass.,” USA Today, 4/13/06)

Romney Called Health Bill “Once In A Generation” Achievement, Claiming “Massachusetts Is Leading
The Way.” “Governor Mitt Romney signed landmark legislation today that through a private, market-based reform
will make health insurance available to every resident of Massachusetts within the next three years. ‘An
achievement like this comes around once in a generation, and it proves that government can work when people of
both parties reach across the aisle for the common good,’ said Romney. ‘Today, Massachusetts is leading the
way with health insurance for everyone, without a government takeover and without raising taxes.’” (Gov. Mitt
Romney, Press Release, 4/12/06)

On Day Of Signing Ceremony, Romney Told Fox News He’d “Authored” The Measure. “Was it a slip of the
tongue by Governor Mitt Romney, or a subtle effort to take credit for the healthcare bill? Hours after he signed the
bill Wednesday in an elaborate ceremony at Faneuil Hall, Romney told Fox News that he ‘authored’ the bill, which
was actually crafted not just by the governor and his administration, but by several state legislators, their staffs,
healthcare advocates, and representatives of the business community and the healthcare industry.” (Scott Helman,
“Author, Author,” The Boston Globe, 4/16/06)

 “Host Of Democratic Legislators … And Sen. Edward M. Kennedy” Attended Romney’s Signing
Ceremony. “Also attending the [signing] ceremony were a host of Democratic legislators, who
overwhelmingly passed the bill, and Sen. Edward M. Kennedy, D-Mass., a frequent target of conservatives
but a collaborator with Romney on the measure.” (Glen Johnson, “Romney Plays Down Health Care Plan,” The Associated
Press, 4/12/07)

 Romney Called The Measure “Landmark” Accomplishment. “The reason this is so landmark is that we
have found a way, collectively, to get all of our citizens insurance without some new government-mandated
takeover or a huge new tax program.” (Casey Ross, “Critics Slam Insurance Plan As Intrusive And Unwieldy,” Boston Herald,
4/13/06)

Romney Said Final Legislation “Incorporates About 95 Percent Of My Original Proposal.” “The final
legislation incorporates about 95 percent of my original proposal. So I think, overall, it is a major step forward. We
will have health insurance for all our citizens without a government takeover and without new taxes required.”
(Jennifer Barrett, “Person Of Faith,” Newsweek.com, 6/7/06)

Romney Press Release Included Quote From National HHS Secretary Urging “Policy Makers In
Statehouses And Congress” To Follow Massachusetts’ Lead. “Former U.S. Health and Human Services
Secretary Tommy G. Thompson commended Governor Romney for signing what Thompson termed
‘groundbreaking legislation to provide health coverage to all Massachusetts families.’ ‘Massachusetts is showing
us a better way, one I hope policy makers in Statehouses and Congress will follow to build a healthier and
stronger America,’ said Thompson, a former Republican governor of Wisconsin.” (Gov. Mitt Romney, Press Release,
“Romney Signs Landmark Health Insurance Reform Bill,” 4/12/06)

Romney Proposal “Requiring Individuals To Buy Health Insurance … Gave Democrats The Political Cover
They Needed” On More Controversial Parts Of Health Bill. “The Governor was also the one who put on the
table the idea of requiring individuals to buy health insurance if they were not covered by their employers—a
move that gave Democrats the political cover they needed to put other controversial parts of the plan into place.”
(Karen Tumulty, “What Romney Believes,” Time, 5/21/07)

103

Romney Advocated For Bill’s Passage, Lobbying Reluctant Business Leaders To Get On Board

Prominent Business Leader Claimed Romney Convinced Him To Support Universal Health Insurance Bill.
“On Wednesday, Governor Romney held a listening session with business leaders about the bill … One noted
dissenter had been Chris Anderson, president of the Massachusetts High Technology Council. … So imagine my
surprise when I asked Anderson how to characterize his feelings on the legislation after the meeting and got this
reply: ‘Supportive.’ Supportive? ‘The bill could be a national model if implemented properly,’ said Anderson, who
added that Romney had persuaded him it would be.” (Scot Lehigh, “Will Public Buy The Healthcare Plan?” The Boston Globe,
4/7/06)

Romney Recently Has Re-Embraced His Program After Distancing Himself From It

 Romney, During Reagan Library Debate, On The Bill: “I Love It.” POLITICO’S JOHN HARRIS: “Governor
Romney a year ago it seemed that you couldn’t wait to tell about your health care experiment in Massachusetts.
Since then, it’s been criticized by conservatives as something Hillary Clinton could be devised. You hardly
mention it on your website. What’s changed?” ROMNEY: “I love it. It’s a fabulous program.” (MSNBC Republican
Presidential Candidates Debate, Simi Valley, CA, 5/3/07)

Romney Was Perceived To Be Running Away From His Own Plan As Flaws Emerged And Conservatives
Revolted

Romney Often Avoids Speaking Of His Health Care Reform Measure, Which “Many On The Right Abhor
As A Classic Example Of Big Government.” “As Mitt Romney aggressively courts conservatives in his bid for
the Republican presidential nomination, landmark health-care legislation that the former Massachusetts governor
signed into law about a year ago has been largely left out of his pitch. … When he does speak about the
measure, which many on the right abhor as a classic example of big government, his comments are measured,
even though when he signed it on April 12, 2006, he described the legislation by saying, ‘an achievement like this
comes around once in a generation.’” (Perry Bacon Jr., “Romney Plays Down Role In Health Law,” The Washington Post, 4/13/07)

 When Romney Does Address His Plan, He Complains Of Provisions Added By Democrats. “In his
major speeches, including the announcement of his candidacy in Michigan in February, Romney has often
omitted mention of the health-care law. When he does talk about it, he frequently complains about provisions
the legislature added that he opposed.” (Perry Bacon Jr., “Romney Plays Down Role In Health Law,” The Washington Post,
4/13/07)

 Romney Claims Democrats Will Be To Blame If His Health Reforms Fail. “Romney told Maryland
conservatives this month that the law was a bipartisan creation. He emphasized that the state’s Democratic
leadership is handling the rollout. This has become a common theme. In January, Romney said much the
same thing during a forum hosted by the conservative National Review magazine. ‘We believed we’d get
everybody insured in an economic way, but I don’t know what is going to happen down the road as the
Democrats get their hands on it,’ Romney said.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass.
Health Plan,” Investor’s Business Daily, 3/7/07)

Wall Street Journal: Romney Oversold Virtues Of Healthcare Plan, Imposed Government Mandate And
Now Distances Himself From Own Policy. “[Romney] made a big deal of the health-care ‘reform’ he steered
through the Massachusetts legislature last year, and we suppose he deserves credit for trying. But he oversold
the results – to the applause of the national health-care lobby – and imposed an insurance mandate without
reforming the state insurance market. As it unfolds, this law is turning out to be far from a free-market success.
And so now Mr. Romney is distancing himself from it – never mind that he upbraided his critics last year for not
understanding its virtues. The episode suggests a thin political skin and perhaps a too malleable policy core.”
(Editorial, “The GOP Field,” Wall Street Journal, 2/10/07)

“Romney Has Subtly Lowered Expectations For The Law He Championed As Governor.” “At recent political
appearances, Romney has subtly lowered expectations for the law he championed as governor. At the
Dartmouth-Hitchcock Medical Center in New Hampshire on Thursday, he warned that the Democrat-dominated
Massachusetts Legislature may cause the collapse of a system he helped design. … Romney sounded a similar
warning in Washington last weekend at a forum sponsored by the National Review.” (Rick Klein, “Romney Distances Self
From Mass. Health Plan,” The Boston Globe, 2/3/07)

104

 “With Signs Emerging That His Signature Healthcare Plan Faces Hurdles … Romney Has Begun To
Distance Himself From The New Law And Is Suggesting That Democrats Will Be To Blame If The Plan
Falters.” (Rick Klein, “Romney Distances Self From Mass. Health Plan,” The Boston Globe, 2/3/07)

Investor’s Business Daily: “He’s Now A Critic Of His Own Biggest Achievement.” “As governor of
Massachusetts he signed a bipartisan law intended to ensure that every resident has coverage. Romney touted it
as an innovative free-market solution. Yet these days, Romney … is much more likely to present his state’s
universal coverage law as not a model to copy but an example for other states to learn from. He’s now a critic of
his own biggest achievement. That’s likely because the law, which requires uninsured residents to buy insurance
by July through a state agency or be fined, is proving to be more costly to consumers than anticipated, even for
those who already had coverage.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass. Health Plan,” Investor’s
Business Daily, 3/7/07)

 “At Last Week’s Conservative Political Action Conference … Romney Never Mentioned The Law In
Two Speeches.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass. Health Plan,” Investor’s Business Daily,
3/7/07)

Romney Also Distanced Himself From Health Plan During 2007 Appearance At Club For Growth
Convention. “At a closed-door meeting of the Club for Growth, a conservative anti-tax group, last month in Palm
Beach, Fla., he soft-peddled his role in the bill, said Pat Toomey, the group’s president. ‘He was very quick to say
the final product was not what he had initially proposed to the legislature,’ Toomey said. ‘He was very open about
saying this could be a better bill and other states might find some things and make them better.’” (Perry Bacon Jr.,
“Romney Plays Down Role In Health Law,” The Washington Post, 4/13/07)

National Center For Public Policy Research’s David Hogberg: Romney “Is Now Slowly Backing Away
From His Health Care Plan,” Noting “RomneyCare Was A Pretty Liberal Health Care Plan Right From The
Start.” “Mitt Romney’s most-heralded achievement as governor of Massachusetts was his overhaul of the Bay
State’s health care system. However, as I’ve noted on the AmSpec blog, ‘RomneyCare’ began running into
problems pretty quickly. After much initial self-promotion, Romney now is slowly backing away from his health
care plan, hinting that the Democrats now in charge should be blamed if it flops. ‘I was a little concerned at the
signing ceremony when Ted Kennedy showed up,’ Romney recently quipped.” (David Hogberg, “Mitt’s Biggest Flop,” The
American Spectator Blog, www.amspec.org, 3/30/07)

 Hogberg: Romney “Trying To Deflect Blame For The Law’s Problems Onto His Successors.” “The fact
is that then-governor Romney was all too eager to promote and sign RomneyCare into law last year despite
its shortcomings. He did it because, up to that point, he had no notable achievements as governor – not a
record one could use to run for president. Now, he is trying to deflect blame for the law’s problems onto his
successors. Personal responsibility, indeed.” (David Hogberg, “Mitt’s Biggest Flop,” The American Spectator Blog,
www.amspec.org, 3/30/07)

 “[T]he Fact Is That RomneyCare Was A Pretty Liberal Health Care Plan Right From The Start.” (David
Hogberg, “Mitt’s Biggest Flop,” The American Spectator Blog, www.amspec.org, 3/30/07)

 “Romney Is Now Avoiding Responsibility For RomneyCare.” (David Hogberg, “Mitt’s Biggest Flop,” The American
Spectator Blog, www.amspec.org, 3/30/07)

National Review’s David Frum: Romney Avoiding Talk Of His Own Health Plan Is “Great Disappointment.”
“[B]ecause many conservatives dislike his Massachusetts healthcare plan, he prefers to avoid the subject. Instead
we get empty talk about ‘waste, fraud, and abuse.’ It’s a great disappointment.” (David Frum, “Romney & Spending 2,”
www.nationalreview.com, 4/25/07)

Romney Aide Claims Law Is Now “Different From The Approach The Governor Submitted.” “[Romney aide
Kevin] Madden stressed the law now ‘is different from the approach the governor submitted’ and is in the hands of
‘a state government that he is no longer in charge of.’ So if the plan does work, he can still claim authorship. If
not, his distancing might prove a canny move.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass. Health
Plan,” Investor’s Business Daily, 3/7/07)

 “Romney Told Reporters That He Cannot Be Held Responsible For Decisions That Beacon Hill
Lawmakers Make About The Sweeping Plan Now That He Is Out Of Office.” (Rick Klein, “Romney Distances
Self From Mass. Health Plan,” The Boston Globe, 2/3/07)

105

Despite Romney’s Denials, “[E]ven Bay State Democrats Say He Played A Major Role In The Law’s
Creation.” “Romney’s action on health care was pushed by a coalition of liberal groups who were considering a
ballot initiative to expand health coverage if the state did not do anything, but even Bay State Democrats say he
played a major role in the law’s creation. Many of the law’s core elements, including the requirement that all
people in the state get insurance, were in Romney’s original proposal in 2005.” (Perry Bacon Jr., “Romney Plays Down
Role In Health Law,” The Washington Post, 4/13/07)

Romney’s Comments On His Own Health Plan Are A Marked Shift From Early 2006. “At a September forum
in D.C. he urged other states to ‘improve’ on the Massachusetts model. ‘Would I adopt this at a national level?
No. Let’s experiment,’ he said. That’s a shift from early 2006, when Romney touted the law as proof that
conservative health care reforms can work. Critics such as Mike Cannon of the Cato Institute say Romney is
fleeing from his own program.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass. Health Plan,” Investor’s
Business Daily, 3/7/07)

Plan Encountering Higher Costs And More Bureaucracy Than Romney Promised

All Residents Must Purchase Some Form Of Health Insurance By July 1, 2007 Or Face Tax Penalties. “The
Commonwealth Health Insurance Connector Authority also voted to give residents until Jan. 1, 2009, to comply
with the stringent new rules. All individuals who do not obtain a waiver must buy some insurance by July 1 or face
a tax penalty in 2008. The postponement of the more stringent requirements was designed to allow businesses
more time to voluntarily improve their health insurance plans and give insured individuals time to upgrade.” (Alice
Dembner, “State Board OK’s Basic Drug Coverage In Universal Plan,” The Boston Globe, 3/21/07)

Deductibles As High As $4,000 Per Family Would Place Undue Burden On Many Massachusetts
Residents. “[O]ne of the strategies used to keep premium prices under control has come under fierce criticism
from some advocates for low-income residents: the high deductibles. Harvard Pilgrim’s deductibles are $1,500 for
an individual and $3,000 for a family. Two of the other Boston-area plans have deductibles of $2,000 for
individuals and $4,000 for families, and Blue Cross has no deductible. Copayments and coinsurance – in which
members pay a percentage of the total bill – add to subscribers’ expenses. The annual maximum payment for
most plans is $5,000 for an individual and $10,000 for a family.” (Jeffrey Krasner, “State Got Insurers To Trim Health Rates,”
The Boston Globe, 3/30/07)

 Brother Jack Rathschmidt Of The Greater Boston Interfaith Organization: “For some families the
possibility of having to pay $10,000 in premiums, copays, deductibles, and prescriptions is way beyond their
means.” (Jeffrey Krasner, “State Got Insurers To Trim Health Rates,” The Boston Globe, 3/30/07)

Over 200,000 People Who Already Have Insurance May Be Forced To Buy Additional Coverage. “The threat
of state oversight came as insurers warned that more than 200,000 Massachusetts residents who already have
health insurance would be forced to buy additional coverage to meet the proposed minimum standards under the
law.” (Steve LeBlanc, “State May Mandate Health Plan Rates,” The Associated Press, 1/31/07)

Rules Will Require All Insured Adults To Have Prescription Drug Coverage. “Massachusetts is poised to
become the first state to require that all adults have health insurance that includes prescription drug coverage. A
state board voted unanimously yesterday to require drug coverage as part of draft rules for the minimum
insurance that everyone older than 18 must have, under the state’s universal health insurance law.” (Alice Dembner,
“State Board OK’s Basic Drug Coverage In Universal Plan,” The Boston Globe, 3/21/07)

 “The Board Declined To Support A Last-Minute Plea From Business Leaders And Insurers To Allow
Plans Without Drug Coverage And To Extend The Deadline To July 2009.” (Alice Dembner, “State Board OK’s
Basic Drug Coverage In Universal Plan,” The Boston Globe, 3/21/07)

 Mandatory Drug Coverage May Mean 15% Higher Premium For Average 30-Year-Old In Good Health.
“It turns out that, as feared, the Commonwealth Health Insurance Connector Board has decided some
individuals will be forced to purchase more insurance than they want or need – specifically prescription drug
coverage. That means a healthy 30-year-old who may take the occasional Tylenol for a headache will have
no choice but to pay about 15 percent more in premiums to guarantee prescription drug coverage. It’s the
same old ‘we know what’s good for you’ approach that brought us mandatory coverage for chiropractic
services.” (Editorial, “The Health Care Hurdles,” Boston Herald, 3/22/07)

Business Leaders Remain Wary Of Proposed New Laws. “[B]usiness leaders said they would continue to
press for changes. ‘We remain concerned that the proposed standard will in the future eliminate affordable
106

products currently available in today’s marketplace,’ Jon B. Hurst, president of the Retailers Association of
Massachusetts, and William Vernon of the National Federation of Independent Businesses, said in a statement
yesterday.” (Alice Dembner, “State Board OK’s Basic Drug Coverage In Universal Plan,” The Boston Globe, 3/21/07)

Critics Fear High Costs Of Care And Lack Of Affordable Plans Could Cause Repeat Of Failed 1988
Universal Coverage Effort. “Critics claim that the new law lacks adequate funding and cost controls that would
assure long-term success. They fear that Massachusetts’ exorbitant health-care costs and the dearth of
affordable health plans ultimately could derail the measure, much the same way that opposition from the business
community helped kill a 1988 law that also sought statewide universal health coverage.” (Tony Pugh, “Experts Debate
Plan’s Potential For National Impact,” Knight Ridder, 4/13/06)

Officials Warn Costs Must Be Controlled Or Program Will Be Unsustainable

Officials Say Health Care Costs Must Be Controlled Or Program Will Not Be Sustainable. “To sustain the
landmark Massachusetts health insurance initiative, the state must find ways to control the climbing costs of
healthcare, policy-makers said yesterday at a forum on the first year of healthcare reform.”

 MA State Senate President Therese Murray (D): “If we do not constrain healthcare costs, the system we
worked so hard to create and implement will collapse.” (Alice Dembner, “Officials Say State Must Curb Health Cost,” The
Boston Globe, 5/15/07)

Initiative Will Cost “Nearly $1.7 Billion” This Year And Federal Government Says It Will Not Provide
“Significant Increases” In Funding Going Forward. “The insurance initiative, designed to ensure most
Massachusetts residents have coverage, is expected to cost nearly $1.7 billion this year. The federal government,
which is providing the bulk of funding, has said it will not provide significant increases in future years.” (Alice
Dembner, “Officials Say State Must Curb Health Cost,” The Boston Globe, 5/15/07)

Plan Will Cost Millions More Than Anticipated While Exempting 20% Of Uninsured From Coverage
Mandate

On One Year Anniversary Of Romney’s Plan Becoming Law, State Administrative Board Announced
Nearly 20% Of Uninsured Adults Would Be Exempted From Coverage Mandate. “To remove the threat of a
public backlash, the state plans to exempt nearly 20 percent of uninsured adults from the state’s new requirement
that everyone have health insurance. The proposal, expected to be approved by a state board today, is based on
calculations that even the lowest-cost insurance would not be affordable for an estimated 60,000 people with low
and moderate incomes who do not qualify for state subsidies. Forcing them to buy insurance or pay a penalty
could jeopardize the rest of the state’s initiative, officials said. Instead, the state board appears prepared to settle
for near universal coverage, all but 1 percent of the state’s population.” (Alice Dembner, “Health Plan May Exempt 20% Of
The Uninsured,” The Boston Globe, 4/12/07)

 “The Decision Has Been Widely Seen As One That Could Make Or Break The Success Of The
Initiative.” (Alice Dembner, “Health Plan May Exempt 20% Of The Uninsured,” The Boston Globe, 4/12/07)

Board’s Plan Also Included Expanded Subsidies For Over 50,000 Low-Income Residents And Would
Extend More Free Coverage – Costing State An Extra $13 Million Over Next Fiscal Year. “In addition to the
exemptions, the proposal from the Connector Authority staff would expand subsidies for 52,000 of the lowest-
income individuals and families who qualify for a state-sponsored insurance program called Commonwealth Care.
Specifically, it would extend free coverage to individuals earning up to about $15,000 a year and families of four
earning up to $31,000. … The increased subsidies would cost the state about $13 million more than the $470
million estimated for the fiscal year that starts July 1.” (Alice Dembner, “Health Plan May Exempt 20% Of The Uninsured,” The
Boston Globe, 4/12/07)

MIT Economist Jonathan Gruber Backed Proposal, But Cautioned “We Can’t Solve All Our Problems By
Spending More.” “Jonathan Gruber, an MIT economist on the [Connector] board, also said he would support the
proposal although he believes that ‘people can afford health insurance at higher levels than the compromise.’ ‘My
primary concern is fiscal,’ he said. ‘… We can’t solve all our problems by spending more.’” (Alice Dembner, “Health Plan
May Exempt 20% Of The Uninsured,” The Boston Globe, 4/12/07)

Pacific Research Institute’s Sally Pipes: Plan Falls 20% Short Of Goal With Costs To “Skyrocket.” “[O]ne
year in, we have a plan that, even if no more concessions to liberal advocates are made, falls 20 percent short of
its stated goal. Its costs have already increased by at least $13 million and are on track to skyrocket by some
107

multiple of this once the doctors’ bills start coming in. Happy Birthday.” (Sally C. Pipes, Op-Ed, “At One Year, Mass.
Healthcare Plan Falls Short,” The Boston Globe, 5/15/07)

 Pipes Called Plan “A Gourmet Recipe For Runaway Spending.” “The structure is a gourmet recipe for
runaway spending. With this level of premium, those who don’t value insurance enough to make financial
sacrifice to purchase it will neglect to do so. The fine – set at $216 – will be more attractive than the premium.
Politicians will be under strong pressure to not enforce the mandate once the fines increase to meaningful
levels.” (Sally C. Pipes, Op-Ed, “At One Year, Mass. Healthcare Plan Falls Short,” The Boston Globe, 5/15/07)

Romney Health Plan Expanded Access To Abortion, Required Planned Parenthood Representative On
State Panel

October 2006: Romney Took Credit For “Officially” Launching Commonwealth Care, Calling It “Key
Component” Of RomneyCare. “The following information was released by the Massachusetts Office of the
Governor: Governor Mitt Romney today officially launched Commonwealth Care, an innovative health insurance
product that will allow thousands of uninsured Massachusetts residents to purchase private health insurance
products at affordable rates. Commonwealth Care is a key component of the state’s landmark healthcare reform
law approved by the Governor in April. ‘We are now on the road to getting everyone health insurance in
Massachusetts,’ said Governor Romney. … ‘Today, we celebrate a great beginning.’” (“Romney Unveils First New
Healthcare Reform Product,” States News Service, 10/2/06)

 “On Oct. 2, Romney Traveled To Dorchester To Announce The First Enrollee In The Commonwealth
Care, Part Of The State’s New Universal Health Plan.” (Glen Johnson, “Romney Skips Marine’s Funeral To Campaign
Out Of State,” The Associated Press, 10/13/06)

 Romney: “Earlier this year, I offered a plan called Commonwealth Care that opens the market to much lower-
cost insurance than is now available.” (Mitt Romney, Op-Ed, “Health-Care Reform Gets A Fair Shake,” Boston Herald, 6/21/05)

Commonwealth Care, Which Is “Funded By The State,” Provides Access To Abortion Services.
“Commonwealth Care is run by the Commonwealth Health Insurance Connector Authority and funded by the
state. … Commonwealth Care health plans include: outpatient medical care (doctor’s visits, surgery, radiology
and lab, abortion, community health center visits) …” (MassResources Website, www.massresources.org, Accessed 2/5/07)

Romney’s Health Care Plan Also Requires That One Member Of MassHealth Payment Policy Board Must
Be Appointed By Planned Parenthood Of Massachusetts. From Chapter 58 of the Acts of 2006: “SECTION 3.
Chapter 6A of the General Laws is hereby amended by inserting after section 16I the following 6 sections: . . .
Section 16M. (a) There shall be a MassHealth payment policy advisory board. The board shall consist of the
secretary of health and human services or his designee, who shall serve as chair, the commissioner of health
care financing and policy, and 12 other members: … 1 member appointed by Planned Parenthood League of
Massachusetts …” (Massachusetts General Court Website, www.mass.gov, Accessed 2/5/07)

 Romney Failed To Veto Section Of Law Requiring Planned Parenthood Representation. Romney
vetoed Sections 5, 27, 29, 47, 112, 113, 134 and 137. Romney did not veto Section 3, which contained the
mandated Planned Parenthood representative on the MassHealth payment policy advisory board.
(Massachusetts General Court Website, www.mass.gov, Accessed 2/5/07)

National Center For Public Policy Research’s David Hogberg: Planned Parenthood Issue “Yields A Sense
Of How Much Romney Gave Away To The Liberals” On Health Care Plan. “The reform creates 11 new
councils, boards, commissions and bureaus. One of the new boards, the MassHealth Payment Policy Advisory
Board, yields a sense of how much Romney gave away to the liberals in the state legislature. It must include a
member appointed by the Planned Parenthood League of Massachusetts.” (David Hogberg, “Romney’s Responsibility
Principles,” The American Spectator, 4/14/06)

Planned Parenthood Mandate Called “Controversial Provision … That Will Not Help Romney With The
GOP Base’s Abortion Opponents.” “Another controversial provision in the Massachusetts plan creates a board
on health-care financing that must include one member of the state’s Planned Parenthood office, something that
will not help Romney with the GOP base’s abortion opponents.” (Perry Bacon Jr., “Romney Plays Down Role In Health Law,”
The Washington Post, 4/13/07)

Free Market Advocates And Health Care Experts Criticize Romney’s Plan

108

Conservatives Have Criticized Romney’s Health Reform As Big Government Plan To Force Insurance
Mandate On All Citizens With Threat Of Tax Penalties As Punishment. “During the past 12 months, Romney
has moved from governor to Republican presidential contender, and some conservatives have criticized the plan
as fostering big government. The program, which Romney signed into law a year ago Thursday, includes a
requirement that everyone in Massachusetts get some form of health insurance by July 1. If they don’t, they face
a series of increasing tax penalties. That mandate amounts to an ‘unprecedented expansion of government
power,’ says Michael Tanner, a health policy expert at the Cato Institute, a libertarian Washington think-tank.”
(Glen Johnson, “Romney Plays Down Health Care Plan,” The Associated Press, 4/12/07)

 “Even Coverage For Those Already With Insurance Must Meet State-Prescribed Minimums. The
Insurance Mandate, The Former Governor Says, Is A Means Of Ensuring ‘Personal Responsibility’…”
(Glen Johnson, “Romney Plays Down Health Care Plan,” The Associated Press, 4/12/07)

Cato Institute’s Michael Tanner: “Slippery Slope To Government Control Of Health Care.” “In my paper on
then-Governor Romney’s plan, I warned that the state’s new managed competition bureaucracy, the
Commonwealth Health Insurance Connector Authority, would operate as a regulatory body, setting up just such a
slippery slope to government control of health care. The more we see from Massachusetts, the more it looks like I
was right.” (Michael D. Tanner, “Romneycare: The Slippery Slope Slips Some More,” Cato Institute Blog, www.cato-at-liberty.org, 3/21/07)

 Tanner: “In Essence, You Have Romney Embracing ‘Hillarycare.’” “There is a likening of this central
concept of his — the Connector — to managed competition, which was at the heart of the 1993 Clinton health
care proposal … In essence, you have Romney embracing ‘Hillarycare,’ and that doesn’t play well on the
right.” (Glen Johnson, “Romney Plays Down Health Care Plan,” The Associated Press, 4/12/07)

 Tanner: “This Mandate Is Unprecedented.” “‘This mandate is unprecedented,’ said Michael Tanner, a
health expert at the Cato Institute, a conservative think tank in Washington. ‘It’s the first time a state has said
simply because you live there you must buy a specific product. If he wants to be the Republican who
embraces Hillary-care, I don’t think that’s going to go hand in hand with him trying to portray himself as
Ronald Reagan’s heir.’” (Perry Bacon Jr., “Romney Plays Down Role In Health Law,” The Washington Post, 4/13/07)

Pacific Research Institute’s Sally Pipes: “RomneyCare Is In The Intensive Care Unit, Soon To Be Wheeled
Into Hospice.” “When then-Gov. Mitt Romney, a Republican, introduced a universal health-insurance plan in the
Bay State early last year, it was widely acclaimed. But less than a year after passage, RomneyCare is in the
intensive care unit, soon to be wheeled into hospice.” (Sally Pipes, Op-Ed, “Intensive Care For RomneyCare,” The Wall Street
Journal, 2/26/07)

 Pipes Criticized Plan’s Reliance On Regulators “Dictating Health-Insurance Design” By Creating
Minimum Insurance Standards. “Regulators are however settling in comfortably to their jobs, dictating
health-insurance design by creating the standards for Minimum Creditable Coverage (MCC) that individuals
must meet to avoid paying the fine. If these standards are implemented, they would render illegal roughly
200,000 high-deductible policies currently in force – exactly the sort of insurance that makes sense for the
self-employed and young individuals.” (Sally Pipes, Op-Ed, “Intensive Care For RomneyCare,” The Wall Street Journal,
2/26/07)

Cato Institute’s Mike Cannon: Wheels Are Coming Off RomneyCare. “It looks like the wheels are coming off
… it is costing more to the individual consumer and the taxpayer than they said it would. His story now is that is
not how we envisioned it.” (Sean Higgins, “Ex-Gov. Romney Keeps Distance From His Own Mass. Health Plan,” Investor’s Business
Daily, 3/7/07)

National Center for Public Policy Research’s David Hogberg: Romney Had “Little Excuse” For Not
Realizing His Plan Would Cost More Than Advertised. “In April 2006, Romney claimed that his plan would
‘need no new taxes.’ By November, as he was leaving office, it was clear that the plan would cost $150 million
more in 2007 than Romney had initially claimed. Government programs almost always cost more than advertised,
and Romney had little excuse for not realizing this.” (David Hogberg, “Mitt’s Biggest Flop,” The American Spectator Blog,
www.amspec.org, 3/30/07)

Harvard Professor Regina Herzlinger: Plan Will Hurt Small Businesses And Compel Outsourcing. “One
health specialist speaking to the Wall Street Journal predicted that the plan would require a subsidy of about $700
million - about four times what the plan provides. We asked Regina Herzlinger, a professor at the Harvard
Business School and a fellow at the Manhattan Institute what she thinks of the plan. … She predicts it will hurt
109

businesses, especially small ones; it will force employers to favor capital improvements over labor, and compel
outsourcing of jobs overseas.” (Editorial, “Big Health In Massachusetts,” The Washington Times, 4/6/06)

Boston University School Of Public Health’s Dr. Alan Sager: “We Will Look Back At This New Legislation
As A Well-Motivated But Naive, Underfunded Political Approach.” (Tony Pugh, “Experts Debate Plan’s Potential For
National Impact,” Knight Ridder, 4/13/06)

Galen Institute President Grace-Marie Turner: “Massachusetts May Not Have A Miracle, But Rather A
Muddle, On Its Hands.” “[I]f Massachusetts is the model, others may want to go back to the drawing board. The
details show Massachusetts may not have a miracle, but rather a muddle, on its hands.” (Grace-Marie Turner, Op-Ed,
“Universal Health Care: Proceed with Caution,” National Review Online, 1/31/07)

 “Plethora Of Mandates” And Numerous Boards And Commissions: “A plethora of other mandates,
reporting requirements, penalties, and enforcement provisions affect both individuals and businesses. …
Massachusetts has created at least ten new boards and commissions to run the new health system, such as
the Health Care Quality and Cost Council, the Payment Policy Advisory Board, and the Health Access
Bureau.” (Grace-Marie Turner, Op-Ed, “Universal Health Care: Proceed with Caution,” National Review Online, 1/31/07)

Many Conservatives Feel Elements Of Romney-Care Are “Anathema To Their Principles.” “Romney’s
recent comments underscore how sensitive an issue the plan is with conservative audiences, whose support is
crucial to his presidential aspirations. Many conservatives view the concept of requiring individuals to purchase
health insurance – and penalizing some businesses that don’t offer it – as anathema to their principles.” (Rick Klein,
“Boston Globe: Romney Distances Self From Mass. Health Plan,” The Boston Globe, 2/3/07)

The Heritage Foundation – One Of The Few Conservative Groups Praising Romney’s Plan – Received
$25,000 Donation From Romney Months Before The Bill Became Law

Heritage Foundation Is One Of Few Conservative Groups Praising Romney’s Health Insurance Plan. “‘The
Connecter is a new market arrangement_ a health insurance exchange — in which individuals and families can
choose and own portable health insurance without the loss of the current generous federal tax benefits,’ Robert E.
Moffit, the director of the Heritage Foundation’s Center for Health Policy Studies, wrote in a recent policy memo.”
(Glen Johnson, “Romney Plays Down Health Care Plan,” The Associated Press, 4/12/07)

“Romney Made A Personal Contribution Of $25,000 To The Think-Tank In December 2005, Although A
Heritage Spokesman Said It Had No Influence Over The Group’s Opinions.” (Glen Johnson, “Romney Plays Down
Health Care Plan,” The Associated Press, 4/12/07)

Conservative Media Criticize Romney’s Plan As Unfunded Big-Government “Misfire”

Wall Street Journal Blasted Romney’s Big-Government Plan As “Mitt’s Market Misfire.” “Massachusetts
Governor Mitt Romney signed a bill recently that’s being praised as a model for how to achieve ‘universal’ health
care. But while the governor claims his plan is market based, it does little to reform the regulations that have
made coverage in his state among the most expensive in the country.” (Editorial, “Mitt’s Market Misfire,” Wall Street Journal,
4/24/06)

 “Guaranteed Issue” Provision – Which Drives Up Premium Costs For All – Left Unaddressed. “The
new Massachusetts health care legislation does little to address the root causes of this [health insurance] cost
problem. Guaranteed issue is explicitly preserved. And while a new insurance regulation board could in theory
do something about other costly mandates, it’s not likely to do much in practice.” (Editorial, “Mitt’s Market Misfire,”
Wall Street Journal, 4/24/06)

o Requires Providers To Cover Applicants Regardless Of Pre-Existing Condition: “Guaranteed issue
is the name of a regulation that requires insurance companies to sell policies to all comers, even those
who wait until they’re sick to seek coverage. Naturally the requirement to accept those free riders makes
insurance much more expensive for everyone else.” (Editorial, “Mitt’s Market Misfire,” Wall Street Journal, 4/24/06)

 Plan Forces People To Buy “Needlessly Expensive Coverage.” “We note all this because there’s a far
simpler way to begin tackling the problem of the uninsured than the Massachusetts path. To wit: Let the
market start operating as it should. … States like New York and New Jersey, meanwhile, might try getting the
regulators out of the way before following the Bay State in forcing people to buy needlessly expensive
coverage.” (Editorial, “Mitt’s Market Misfire,” Wall Street Journal, 4/24/06)
110


 Insurance Costs Remain Well Above National Average: “The $200 per month target price Governor
Romney is talking about for the state’s new mandatory insurance is higher than 80% of the individual policies
eHealthinsurance reported in a study of 80,000 customers nationwide late last year.” (Editorial, “Mitt’s Market
Misfire,” Wall Street Journal, 4/24/06)

Journal Also Noted Romney’s Plan Forces People “To Buy Insurance Many Will Need Subsidies To
Afford.” “[T]he core flaw is that the plan forces individuals to buy health insurance, and penalizes businesses that
don’t provide it, before deregulating the market for private health insurance. So the state is forcing people to buy
insurance many will need subsidies to afford, which is a recipe for higher taxes and more government intervention
down the road. Could this be why Mrs. Clinton, Ted Kennedy and the Families USA government medicine lobby
are all praising it to the skies?” (Editorial, “RomneyCare,” The Wall Street Journal, 4/12/06)

 “By Making A Fetish Of ‘Universal’ Coverage, Governor Romney Has Bought Into A Bidding War That
Democrats And Advocates Of Socialized Medicine Are Bound To Win In The End.” (Editorial, “RomneyCare,”
The Wall Street Journal, 4/12/06)

Washington Times Called Romney Plan “Frankenstein’s Monster Of Tax Penalties, Expanded
Government-Insurance Programs And Unfunded Mandates.” “Massachusetts Gov. Mitt Romney had a dream
of universal consumer-driven health care. Then he met Beacon Hill and its Democratic legislators. Their plan,
introduced this week, is a Frankenstein’s monster of tax penalties, expanded government-insurance programs
and unfunded mandates. A presidential aspirant, which Mr. Romney certainly is, will decide what is the best he
can do for his state. The rest of us, however, should not take this plan for a model.” (Editorial, “Big Health In
Massachusetts,” The Washington Times, 4/6/06)

 Expands Existing Government Programs: “The fault of this bill is that it really isn’t ‘consumer-driven’ at all.
The resource-wasting reliance on third-party payers and employers remains intact as existing government-
insurance programs are expanded. So are insurance subsidies.” (Editorial, “Big Health In Massachusetts,” The
Washington Times, 4/6/06)

 “[I]ts Unfunded Mandate Is Large Enough To Make Michael Dukakis Blush.” (Editorial, “Big Health In
Massachusetts,” The Washington Times, 4/6/06)

 “Clearly This Is No Model For The Rest Of The Country…” (Editorial, “Big Health In Massachusetts,” The Washington
Times, 4/6/06)

Romney’s Health Reforms Praised By Ted Kennedy, Hillary Clinton And John Kerry

Ted Kennedy Attended Signing Of Romney Health Care Plan, Said It’s “Just What The Doctor Ordered.”
“Gov. Mitt Romney signed legislation Wednesday that would make Massachusetts the first state to require
everyone to have health insurance, just as drivers must have automobile coverage. … Sen. Edward Kennedy, D-
Mass., who attended the signing ceremony in Boston’s historic Fanueil Hall, praised Romney for giving the state
‘just what the doctor ordered.’ ‘With the signing of this landmark health reform bill, after so many years of false
starts, our actions have finally matched our words and we have lived up to our ideals,’ Kennedy said.” (Steve
LeBlanc, “Mass. Governor OKs Landmark Health Bill,” The Associated Press, 4/12/06)

“[Hillary] Clinton Praised Romney’s Efforts Yesterday, Telling The Associated Press, ‘To Come Up With A
Bipartisan Plan In This Polarized Environment Is Commendable.’” (Scott Helman, “On National Stage, Potential Gains
And Pitfalls For Romney,” The Boston Globe, 4/6/06)

John Kerry, On Romney’s Plan: “I Think It’s Terrific.” “I liked this health care bill that passed. I think it’s
terrific. ... We really need to be doing that on the national level.” (MSNBC’s “Imus In The Morning,” 4/6/06)

ENERGY AND ENVIRONMENT

In 2003, Romney Said “I Think The Global Warming Debate Is Now Pretty Much Over”

Romney: “I think the global warming debate is now pretty much over and people recognize the need associated
with providing sources which do not generate the heat that is currently provided by fossil fuels …” (Jack Coleman,
“Massachusetts Governor Urges Use Of Alternative Energy,” Cape Cod Times, 3/14/03)

111

Later That Year, Romney Warned Carbon Dioxide Emissions Were Harming The Environment And Agreed
To Join Northeast Regional Emissions “Cap And Trade” System

2003: Romney “Acknowledged That Carbon Dioxide Emissions Are Harming The Environment And
Agreed To Help Design A Regional Emissions Cap” With Surrounding States. “In another nod to
environmentalists, Gov. Mitt Romney has joined with New York Gov. George Pataki in a plan to limit greenhouse
gases from Northeast power plants. In a July 21 letter to Mr. Pataki, Mr. Romney acknowledged that carbon
dioxide emissions are harming the environment and agreed to help design a regional emissions cap for power
generating plants.” (Shaun Sutner, “Romney Joins Bid To Curb Emissions,” Telegram & Gazette [Worcester, MA], 8/6/03)

Romney, In July 2003 Letter To Then-Gov. George Pataki (R-NY): “Now Is The Time To Take Action
Toward Climate Protection.” “I concur that climate change is beginning to affect our natural resources and that
now is the time to take action toward climate protection. … I share your interest in ensuring that the economic and
security contributions made by our electricity generating system are not negated by the impact of emissions from
that system on the health of our citizens. … Our joint work to create a flexible market-based regional cap and
trade system could serve as an effective approach to meeting these goals.” (Shaun Sutner, “Romney Joins Bid To Curb
Emissions,” Telegram & Gazette [Worcester, MA], 8/6/03)

The Economist Named Romney “Climate-Friendly” Republican Along With New York Governor George
Pataki And Sen. McCain. “Other ‘climate-friendly’ Republicans include Governor George Pataki of New York,
Governor Mitt Romney of Massachusetts and Senator John McCain.” (“Schwarzenegger v Bush?” The Economist, 10/2/04)

Less Than Two Years Later, Romney Abruptly Pulled Massachusetts Out Of Compact Agreement On
Same Day He Announced He Would Not Seek Second Term

December 2005: Romney “Abruptly” Pulled Out Of Compact Talks Hours Before Deadline For Agreement.
“Officials in New York, New Jersey and several other Northeastern states scrambled yesterday to hold together
what was left of a landmark regional pact to control power plant emissions after the governors of Massachusetts
and Rhode Island abruptly refused to sign on. … Gov. Mitt Romney of Massachusetts, a Republican who is
expected to run for his party’s presidential nomination in 2008, pulled his state out of the agreement yesterday,
hours before the deadline for reaching an agreement, and just before announcing that he would not run for a
second term next year.” (Anthony DePalma, “Greenhouse Gas Pact Is In Disarray,” The New York Times, 12/16/05)

 “Environmentalists Were Stunned And Angered By Governor Romney’s Decision.” (Anthony DePalma,
“Greenhouse Gas Pact Is In Disarray,” The New York Times, 12/16/05)

Romney Pulled Massachusetts Out Of The Pact On December 14 – The Same Day He Announced He
Would Not Seek Reelection As Governor. “Massachusetts yesterday pulled out of a landmark multistate pact to
reduce carbon dioxide emissions from Northeast power plants, Governor Mitt Romney confirmed last night. … An
announcement of the pact was scheduled for today in New York, but it has been put on hold as the seven
remaining states discuss changes because of the loss of the two states.” (Beth Daley, “Mass. Pulls Out Of Agreement To
Cut Power Plant Emissions,” The Boston Globe, 12/15/05)

 “Mr. Romney Defended His Actions. ‘I’ve Been In The Deal Business All My Life … A Deal Is Not A
Deal Until Everybody’s Agreed On It.’” (Anthony DePalma, “Greenhouse Gas Pact Is In Disarray,” The New York Times,
12/16/05)

Other States Were Willing To Compromise “But Not To Go As Far As Massachusetts Wanted.” “The other
states were willing to compromise, the government officials said, but not to go as far as Massachusetts wanted
because they thought it would have undermined the pact’s effectiveness.” (Beth Daley, “Mass. Pulls Out Of Agreement To
Cut Power Plant Emissions,” The Boston Globe, 12/15/05)

Romney Rejected Plan “Over The Advice Of His Advisers” After Requesting Deadline Extension, Raising
Questions About His Intentions Among Other States. “Earlier this month Mr. Romney asked for negotiations
to be prolonged past a Dec. 1 deadline. Massachusetts and the other states negotiated intensely and thought
they had reached an agreement on a proposal to limit the cost of pollution allowances, thereby protecting
customers. … But Mr. Romney rejected the plan on Wednesday, over the advice of his advisers, prompting
officials in other states to wonder whether he had ever intended to accept them at all.” (Anthony DePalma, “Greenhouse
Gas Pact Is In Disarray,” The New York Times, 12/16/05)

112

In 2004, Romney Press Event Announcing State Policy To Combat Global Warming Marred By His Refusal
To Admit Global Warming Is Happening

At Press Conference Announcing New State Policy To Combat Global Warming, Romney Stated He
Wasn’t Sure If Global Warming Was Happening. “As he introduced a new state policy to combat global
warming, Governor Mitt Romney had a surprise for the environmentalists gathered along the Charles River
Esplanade yesterday: Personally, he’s not sure global warming is happening. During a news conference at which
he formally announced the Massachusetts Climate Protection Plan, Romney said he decided not to take sides in
the debate about ‘is there global warming or is there not, and what’s causing it.’ His hedging on the issue
surprised some activists …” (Stephanie Ebbert, “Romney Hedges On Global Warming,” The Boston Globe, 5/7/04)

Though State Plan Pointed To “Consensus Of Climate Change Scientists” Agreeing That Global Warming
Was Happening, Romney Claimed To Be Unconvinced, Wrote Letter Asking “If Climate Change Is
Happening.” “Though the new state plan points to a ‘consensus of climate change scientists’ who agree that an
increase in greenhouse gases is causing global temperatures to rise, Romney attached a letter to the plan’s final
version suggesting he remains unconvinced on the issue at the heart of the proposal. ‘If climate change is
happening, the actions we take will help,’ Romney wrote. ‘If climate change is largely caused by human action,
this will really help. If we learn decades from now that climate change isn’t happening, these actions will still help
our economy, our quality of life, and the quality of our environment.’” (Stephanie Ebbert, “Romney Hedges On Global
Warming,” The Boston Globe, 5/7/04)

 Romney: “I’m not a scientist … I read one book over the summer that said, ‘gee, global warming is
happening for reasons unrelated to human participation,’ and other reports, far more, indicate, ‘no no, it’s very
much driven by humans.’ Well, I don’t know.” (Stephanie Ebbert, “Romney Hedges On Global Warming,” The Boston Globe,
5/7/04)

Some Observers Saw Politics Playing Role In Romney Stance. “Some observers see the governor walking a
subtle but savvy line between the moderate Massachusetts constituents he is courting and the conservative wing
of the national Republican Party, which argues that greenhouse gases do not play a significant enough role in
climate change to warrant mandatory reductions.” (Stephanie Ebbert, “Romney Hedges On Global Warming,” The Boston Globe,
5/7/04)

On Same Day In 2005, Romney Supported, Then Opposed Northeast Regional Compact On Climate
Change

Romney Initially Called Northeast Regional Compact To Address Greenhouse Gas Emissions “Good
Business,” Then Retracted His Support Only Weeks Later. “A group of Northeast states has postponed the
announcement of a landmark agreement to limit greenhouse gas emissions from power plants after Governor Mitt
Romney raised objections to the pact late last week, two government sources familiar with the agreement said
yesterday. … News of the delay comes two weeks after Romney indicated his overall support for the initiative at a
conference in Boston, calling it ‘good business’ because it would prompt Massachusetts companies to develop
state-of-the-art clean-energy technology.” (Beth Daley and Scott Helman, “Romney Doubts Seen Delaying Emissions Pact,” The
Boston Globe, 11/22/05)

Romney Changed Positions On Regional Agreement Within Span Of One Day. “At a clean-energy
conference in Boston on Nov. 7, Romney sounded exuberant about the Northeast state agreement, saying in his
speech that it was ‘a great thing for the Commonwealth.’ ‘We can effectively create incentives to help stimulate a
sector of the economy and at the same time not kill jobs,’ he said. Later that day, however, Romney outlined to
reporters several fears he had about the proposed agreement.” (Beth Daley and Scott Helman, “Romney Doubts Seen
Delaying Emissions Pact,” The Boston Globe, 11/22/05)

Romney Claim, Circa 2007: “No Question … It’s Getting Warmer”

 In February 2007, Romney Said “Scientists Haven’t Entirely Resolved” Global Warming Question But
There’s “No Question About One Thing, It’s Getting Warmer.” “I have to tell you with regards to global
warming that that’s something, which, you’re right, the scientists haven’t entirely resolved, but no question about
one thing, it’s getting warmer, and a lot of good reasons for us to use less energy, to use it more efficiently and to
develop sources here in this country that could allow us to be more independent of foreign sources.” (CNBC’s
“Kudlow & Company,” 2/7/07)

113

Romney “Never Really Contested The Underlying Science” Behind Global Warming Theory. “The debate
about the existence of global warming is over. Mitt Romney, the former Massachusetts governor who will probably
announce next week that he’s officially a candidate for president in 2008, single-handedly erased any lingering
doubts I may have had during his interview yesterday … Romney gave some vague answers regarding his views
on dealing with climate change, other than to emphasize that he wanted market-oriented solutions. But Romney,
a guy who is trying to portray himself as a follower of Reaganomics, never really contested the underlying
science.” (James Pethokoukis, “Romney, Climate Change, And Growth,” USNews.com, 2/8/07)

Romney Still Attacks “Some In The Republican Party” For “Embracing The Radical Environmental Ideas
Of The Liberal Left”

Romney Statement “On The Current Environmental Debate”: Governor Mark Sanford is right. Unfortunately,
some in the Republican Party are embracing the radical environmental ideas of the liberal left. As governor, I
found that thoughtful environmentalism need not be anti-growth and anti-jobs. But Kyoto-style sweeping
mandates, imposed unilaterally in the United States, would kill jobs, depress growth and shift manufacturing to the
dirtiest developing nations. Republicans should never abandon pro-growth conservative principles in an effort to
embrace the ideas of Al Gore. Instead of sweeping mandates, we must use America’s power of innovation to
develop alternative sources of energy and new technologies that use energy more efficiently.” (Romney For President,
Inc., Press Release, 2/23/07)

Romney Feels Oil Companies Should Be Investing Their Profits In New Refineries

Romney: “[B]ig Oil Is Making A Lot Of Money Right Now. And I'd Like To See Them Using That Money To
Invest In Refineries.” CNN’S WOLF BLITZER: “What do you say to the audience out there who believes that
there's too much of an alliance, if you will, between the big oil companies and Republicans?” ROMNEY: “[W]ith
regards to big oil, big oil is making a lot of money right now. And I'd like to see them using that money to invest in
refineries. Don't forget that when companies earn profit, that money's supposed to be reinvested in growth. And
our refineries are old. Someone said to me -- Matt Simmons, an investment banker down in Houston -- he said,
‘Our refineries today are rust, with paint holding them up.’ And we need to see these companies, if they're making
that kind of money, reinvest in capital equipment. But let's not forget that where the money is being made this
year is not just -- and throughout these years -- is not just in Exxon and Shell and the major oil companies. It's in
the countries that own this oil. Russia last year took in $500 billion by selling oil. Ahmadinejad, Putin, Chavez --
these people are getting rich off of people buying too much oil. And that's why we have to pursue, as a strategic
imperative, energy independence for America.” (Mitt Romney, CNN Republican Presidential Debate, Manchester, NH, 6/5/07)

ROMNEY’S PROPOSED SUV TAX

In 2002 Campaign, Romney Promised To Increase Excise Tax On Vehicles With Low Gas Mileage

One Of Romney’s Top Campaign Promises: “Reworking The Vehicle Excise Tax” To “Encourage The
Purchase Of Fuel-Efficient Cars.” “What are your top three environmental/growth priorities? … Mitt Romney: …
The state must also address the pollution resulting from increased commute times. I propose a 10-year sales tax
moratorium on hybrid vehicles and reworking the vehicle excise tax in a revenue-neutral fashion to encourage the
purchase of fuel-efficient cars.” (Anthony Flint, “Development’s Impact To Test Next Governor,” The Boston Globe, 10/12/02)

Romney Campaign Acknowledged Plan Could “Require Owners Of New SUVs And Other Gas-Guzzlers To
Pay A Higher Automobile Excise Tax.” “Romney’s plan to reduce pollution could also require owners of new
SUVs and other gas-guzzlers to pay a higher automobile excise tax. As part of his ‘commuter bill of rights’
package released Tuesday, Romney said he wants to ‘rework’ the excise tax formula to encourage fuel economy.
… [T]he discount given to motorists who buy fuel-efficient cars could be offset by a higher charge for new gas-
guzzlers, his campaign acknowledged.” (John Gregg, “Conserve Fuel, Get Tax Break,” The MetroWest Daily News, 9/6/02)

 “During His Campaign For Governor, Mitt Romney Suggested Charging Higher Auto-Excise Taxes For
Vehicles With Low Gas Mileage.” (Editorial, “Hybrid Car Incentives,” The Boston Globe, 1/30/05)

 “Romney, At Least, Owns Up To The Need For Specific Tax Increases – Excise Taxes On SUVs…”
(Steve Marantz, “Gov Hopefuls Baffle Voters With Fuzzy Details On Issues,” Boston Herald, 10/27/02)

 “Recently Elected Republican Gov. Mitt Romney Of Massachusetts Wants To Peg The Excise Tax On
Motor Vehicles To Fuel Efficiency…” (Brad Knickerbocker, “Out Of Limelight, Environment Resonates As An Issue,” The
Christian Science Monitor, 5/16/03)
114


In 2003, Romney Officials Said Governor “Plans To Push For A Higher Excise Tax On SUVs As Promised
During The Fall Campaign.” “In addition to the policy on cars used by state employees, Romney plans to push
for a higher excise tax on SUVs as promised during the fall campaign … [Romney aide Douglas] Foy said.” (“State
May Dump SUVs Because Of Budget Crunch,” The Associated Press, 1/23/03)

The Boston Globe Urged Romney To Make “A High Priority … His Campaign Promise To Raise The Auto
Excise Tax On Sport Utility Vehicles And Other Gas Guzzlers.” “[O]ne [initiative] that deserves a high priority
while the new governor still has a store of political capital is his campaign promise to raise the auto excise tax on
sport utility vehicles and other gas guzzlers …” (Editorial, “Curbing Gas Guzzlers,” The Boston Globe, 1/6/03)

Massachusetts Taxpayers Group: Romney Plan “Would Be A Tax Increase, And That Is Certainly
Unacceptable”

“Barbara Anderson Of Citizens For Limited Taxation Opposes The Romney Plan On Both Practical And
Conceptual Grounds.” (Editorial, “Curbing Gas Guzzlers,” The Boston Globe, 1/6/03)

 Barbara Anderson, Citizens For Limited Taxation: “[The Romney plan] would be a tax increase, and that is
certainly unacceptable. … I don’t think they have thought this through … To penalize the rest of us because
we are going to put our family safety ahead of an experimental (car) or environmental activism, then that
would be wrong.” (John Gregg, “Conserve Fuel, Get Tax Break,” The MetroWest Daily News, 9/6/02)

 Anderson: “It annoys me especially when rich people who can afford to have more than one car tell me who
can only afford one car what I should have …” (Editorial, “Curbing Gas Guzzlers,” The Boston Globe, 1/6/03)

Democrat State Senator: “It’s A Good Democratic Idea”

Democrat State Senator Praised Romney Plan As “Sensible,” “A Good Democratic Idea.” “The Romney
plan was also declared ‘sensible’ by state Sen. David Magnani, the Framingham Democrat who previously
proposed a similar plan geared to the sales tax. ‘Conceptually, it makes a lot of sense. It’s a good Democratic
idea, a good environmental idea,’ said Magnani…” (John Gregg, “Conserve Fuel, Get Tax Break,” The MetroWest Daily News,
9/6/02)

As Governor, Romney Discouraged State Agencies From Using SUVs, Implemented Strict Purchasing
Requirements

To Increase Fuel Efficiency, Romney Administration Directed State Agencies To Only Use SUVs And 4x4s
When “Absolutely Necessary” And “Required” State To Purchase Most Fuel Efficient Vehicles. “To
increase fuel efficiency … agencies are expected to limit 4-wheel drive vehicles to those absolutely necessary for
emergency or off-road response, and to consider smaller, lower powered passenger vehicles or light-duty pick-up
trucks in lieu of SUVs, large passenger vehicles, and large trucks. … All agencies will be required to purchase the
most economical, fuel efficient and low-emission vehicles appropriate to the mission. Unless a need is clearly
demonstrated otherwise, the goal will be to have all new vehicles achieve a minimum of 20 mpg (estimated city)
and to be Ultra Low Emission Vehicles (ULEV) or better.” (Administrative Bulletin, Executive Office for Administration and
Finance, Commonwealth of Massachusetts, 12/1/03)

Romney Administration Required Agencies To Demonstrate Need For “Off-Road Capacity” Or “All-
Weather Emergency Response” To Justify SUV Purchase. “[I]n order for an agency to purchase a state
owned SUV or 4x4 truck, the need to have either off-road capacity or all-weather emergency response must be
demonstrated. Specifically, the desire for non-emergency personnel to drive in inclement weather will no longer
be justification for the purchase of a 4x4 vehicle.” (Administrative Bulletin, Executive Office for Administration and Finance,
Commonwealth of Massachusetts, 12/1/03)

In 2005, Romney Dramatically Lamented Lack Of Progress On Fuel Efficiency – Then Just Hours Later
Said He Did Not Support Tougher Fuel Efficiency Standards

In 2005, Romney “Issued His Own Call For Conservation” Saying “We’re Going To Have To Rethink How
We Use Energy In Our Society.” “After introducing the new commissioner of the Department of Conservation
and Recreation, Romney launched into a wide-ranging discourse on the nation’s energy challenges. Romney
joked about a cardigan-clad President Carter exhorting Americans to turn down their thermostats during the
115

energy crisis of the 1970s. But then Romney issued his own call for conservation, saying ‘we’re going to have to
rethink how we use energy in our society.’” (Scott Greenberger “Lawmaker Proposes Gas Tax Waiver,” The Boston Globe, 9/2/05)

 Romney: “[W]e’re going to have to rethink how we use energy in our society. … It’s an amazing fact. You’ve
seen that almost everything in America has gotten more efficient over the decade except the fuel economy of
the vehicles we drive, that’s become more inefficient.’” (Scott Greenberger “Lawmaker Proposes Gas Tax Waiver,” The
Boston Globe, 9/2/05)

Later That Day, Romney Said He “He Did Not Necessarily Support” Tougher Fuel-Efficiency Standards,
Saying Market Forces Would Curb Popularity Of SUVs. “Romney … appeared to be departing from the
conservative Republican position that the best way to reduce the price of oil is to find more of it. But later in the
day, the possible presidential candidate emphasized that he did not necessarily support tougher fuel-efficiency
standards. … Romney predicted that simple economics will curb the popularity of sport utility vehicles and other
gas-guzzlers.” (Scott Greenberger “Lawmaker Proposes Gas Tax Waiver,” The Boston Globe, 9/2/05)

Today, Romney Campaign Claims He Opposes CAFE Standard Increase “On Its Own”

Romney “Playing It Safe” On CAFE Standard Increase. “Romney, at least for now, is playing it safe on the
issue. A spokesman said Romney opposes a CAFE standard increase on its own, but he left open the possibility
that Romney would support an increase as part of a broader energy plan.” (Scott Helman, “For Mitt Romney, Son Of The
Man Said To Have Coined ‘Gas-Guzzling Dinosaur,’ His Stance On Fuel Economy Could Be Crucial,” The Boston Globe, 1/28/07)

 Romney Spokesman Kevin Madden: “Governor Romney believes it would be unwise to arbitrarily increase
CAFE standards outside the context of a comprehensive solution to reduce our dependence on foreign oil …”
(Scott Helman, “For Mitt Romney, Son Of The Man Said To Have Coined ‘Gas-Guzzling Dinosaur,’ His Stance On Fuel Economy Could
Be Crucial,” The Boston Globe, 1/28/07)

Romney Was Open To Raising Federal Gas In 2003 And Has Not Ruled It Out In Future – His Top
Economic Adviser Is On The Record Supporting Tax Increase Of $1 Per Gallon

In 2003, Romney Said He Was Open To Federal Increase In Gas Tax. “Governor Mitt Romney refused
yesterday to endorse tax cuts at the heart of President Bush’s economic program, but he told members of the
state’s congressional delegation during a private meeting he also would not oppose the cuts because he has to
maintain ‘a solid relationship’ with the White House. … In addition to refusing to endorse the president’s tax cut,
the governor surprised several people at the meeting by saying he is open to a federal increase in gas taxes.”
(Wayne Washington and Glen Johnson, “Romney Weighs In – Carefully – On Bush Tax-Cut Plan,” The Boston Globe, 4/11/03)

 Rep. Michael Capuano (D-MA): “My memory is that [Romney] supported an increase in the (federal) gas tax
and he wouldn’t take a position on Bush’s proposed tax cuts …” (Casey Ross, Boston Herald’s Daily Briefing Blog,
“Romney Faces Questions On Tax Stance,” www.bostonherald.com, 2/7/07)

 Romney Has Refused To Rule Out Raising The Federal Gas Tax – As His Senior Economic Advisor
Advocates – Only Saying It Would Not Be “Politically Acceptable.” CNBC’s LARRY KUDLOW: “One of your
senior economic advisers, Greg Mankiw from Harvard University, former President Bush economic adviser, he is
pushing very hard for a $1 increase in the gasoline tax. Since he’s close to you, would you go for a $1 rise in the
gas tax nationwide?” ROMNEY: “Well, I think that would terrify everybody in the whole country. A gas tax of that
nature, I think that’s not something that’s going to be politically acceptable to the American people.” (CNBC’s “Kudlow
& Company,” 2/7/07)

Romney Senior Advisor Greg Mankiw: “I Would Like To See Congress Increase The Gas Tax By $1 Per
Gallon, Phased In Gradually By 10 Cents Per Year Over The Next Decade.” (N. Gregory Mankiw, Op-Ed, “Raise The
Gas Tax,” Wall Street Journal, 10/20/06)

Romney Has Not Ruled Out Carbon Tax If Elected President

 Romney Refused To Rule Out Carbon Tax, Saying He Doesn’t “Close Off Inquiry And Discussion.”
CNBC’s LARRY KUDLOW: “[D]o you favor carbon caps? Do you favor carbon taxes?” ROMNEY: “Well at this
stage, we’re going to look at what’s the best way to incentivize more efficient use of energy. …” KUDLOW: “So,
as I hear it, you’re leaving the door open to possible carbon cap or carbon tax?” ROMNEY: “Oh, I’m not a man
that favors taxes, and so I’m not going to -- I’m not going to make a statement of that nature. But I can tell you
that, you know, I don’t close off inquiry and discussion on a lot of topics and I’m willing to talk to people about their
116

perspectives, but taxes and gas taxes are not something that I’d normally be inclined to.” (CNBC’s “Kudlow &
Company,” 2/7/07)

U.S. News & World Report’s James Pethokoukis: “[Romney] was, you know, certainly leaving himself a little
room, you know, with the carbon [tax] issue because he’s – I’m sure they’re not quite sure how they’re going to –
how they’re going to fix that.” (CNBC’s “Kudlow & Company,” 2/7/07)

Forbes Magazine’s Quentin Hardy: “Carbon caps, he’s for them, he just wants them market oriented. … This
guy actually likes a lot of government intervention, clearly.” (CNBC’s “Kudlow & Company,” 2/7/07)

In April 2007, Romney Praised France’s Energy Policies And Noted Hitler’s Use Of Liquefied Coal

Romney Said U.S. Would Need France’s Help To Build Nuclear Power Plant And Noted Hitler Used
Liquefied Coal “I Guess Because He Was Concerned About Losing His Oil.” “‘I’m afraid building a nuclear
power plant in our country today would require us first to hire the French to show us how to do it because they’ve
been building ‘em and we haven’t,’ Mr. Romney said in response to a question about energy policy during his talk,
as captured on video by the Washington Post’s politics Web log. So far, so good. But he kept going. ‘Liquefied
coal, gosh. Hitler during the Second World War – I guess because he was concerned about losing his oil –
liquefied coal. That technology is still there.’” (Ryan Sager, “Romney’s Energy Gaffe,” The New York Sun, 4/20/07)

CAPE WIND RENEWABLE ENERGY PROJECT

Romney And Sen. Ted Kennedy Were Leading Opponents Of Cape Wind Project In Nantucket Sound

Romney Teamed With Ted Kennedy – Whose Family Compound Has View Of Proposed Wind Farm Site –
To Oppose Cape Wind Project. “[G]overnor Romney, a Republican, has sided with U.S. Sen. Edward M.
Kennedy, a Democrat, in opposition to the project. The Kennedy family’s Hyannisport compound has a view of the
proposed site.” (Rachel Lane, “Cape Project May Set Precedent For Offshore Wind Power,” The Providence Journal, 8/14/05)

 “Governor Mitt Romney And Senator Edward M. Kennedy Oppose The Project, Although Both Say
They Are In Favor Of Wind Power.” (Beth Daley, “EPA Deals Setback To Wind Farm Plan,” The Boston Globe, 2/26/05)

 “Romney Has Been A Leading Opponent Of The Wind Farm …” (Stephanie Ebbert, “Cape Wind Is Dealt A
Setback,” The Boston Globe, 4/7/06)

 The Associated Press Refers To Romney As “A Longtime Wind Farm Opponent.” (Andrew Miga, “Wind Farm
Developers Press Forward,” The Associated Press, 7/3/06)

 Romney Said He Would “Use Every Tool At His Disposal” To Kill Cape Wind. “Governor Mitt Romney
has publicly opposed Cape Wind, proclaiming himself ready to do so using every tool at his disposal.” (Editorial,
“Wind Power With No Direction,” The Boston Globe, 2/27/06)

In 2006, Kennedy Worked To Give Romney Veto Power Over Cape Wind Project. “Earlier this year, Cape
Wind foes, including Sen. Edward Kennedy, D-Mass., wanted to hand veto power over the project to Gov. Mitt
Romney, a longtime wind farm opponent, or his successor. Such a move could have doomed the project. The
move stirred controversy and stalled the popular Coast Guard money bill. Cape Wind backers branded it a back-
door deal to kill the project. Kennedy and other lawmakers eventually dropped their veto demands, clearing the
way for a compromise giving the Coast Guard, not Romney or his successor, a central role in approving the
project.” (Andrew Miga, “Wind Farm Developers Press Forward,” The Associated Press, 7/3/06)

Columnist Robert Novak: Kennedy And Romney Joined To Try To Kill Cape Wind, Which Is Also Opposed
By Wealthy Egan Family, “Who Have Been Generous In Political Contributions” To Romney. “Rich
oceanfront residents of Cape Cod do not want their view of Nantucket Sound faintly obstructed by offshore
protrusions of a proposed wind farm. So, they have hired lobbyists to kill Cape Wind, a project providing an
environmentally sound source of energy. Their most important ally in this venture is a fellow wealthy Cape Cod
landowner, Sen. Edward M. Kennedy. Opposition to America’s first offshore wind farm seems a peculiar posture
for the liberal lion of the Senate. The self-indulgent squires of Cape Cod likewise seem a strange set of friends for
Teddy Kennedy. He is also joined in opposition by Massachusetts Gov. Mitt Romney, a Republican presidential
prospect. … The Kennedy neighbors on Cape Cod have traditionally opposed the Kennedys politically, but they
are all in bed together in opposing Cape Wind. That includes the Egan family, owners of EMC Corp. who have
117

been generous in political contributions to Republicans, notably Romney.” (Robert Novak, Op-Ed, “Looking In Vane For
Consistency,” Chicago Sun-Times, 5/4/06)

The Washington Times Blasted Romney For Opposing Cape Wind

The Washington Times: Romney’s Opposition To Cape Wind Sends “The Unmistakable Signal That He Is
More Beholden To His Wealthy Political Benefactors And The Past Than He Is To Middle-Class Energy
Consumers And The Future.” “With oil prices currently approaching $70 per barrel and natural gas prices
reaching once-incomprehensible heights in December, energy policy will continue to be a major concern for
America’s consumers, voters and politicians. Massachusetts Republican Gov. Mitt Romney, who considers
himself to be presidential timber, has a golden opportunity to distinguish himself as an environmentally friendly,
consumer-oriented, technologically savvy problem solver. However, to hit this win-win-win trifecta, Mr. Romney
will have to change his mind. That will require him to abandon his unaffordable, outdated, self-serving NIMBY
instincts. Otherwise, this former venture capitalist will send the unmistakable signal that he is more beholden to
his wealthy political benefactors and the past than he is to middle-class energy consumers and the future.”
(Editorial, “Not-So-Consumer-Friendly Romney,” The Washington Times, 4/14/06)

The Times Cites Major Romney Fundraiser’s Opposition To Cape Wind, Calls His Analogy With Wind
Farm In Grand Canyon “Absurd.” “As it happens, the Cape Wind views of the self-styled gubernatorial
technophile mirror the positions of the billionaire Egan family, which has been a principal fund-raiser for the
governor. As Boston Globe columnist Joan Vennochi reported in December 2004, Jack and Michael Egan were
directors of the Alliance to Protect Nantucket Sound, which spent $2.4 million opposing Cape Wind. Michael Egan
and the Egan Family Trust own mansions overlooking Nantucket Sound. Arguing that his opposition stems from
the wind farm’s perceived impact on tourism, Mr. Romney denies his Cape Wind position is influenced by the
Egan family. Instead, his office offers the absurd comparison that he would also oppose ‘putting a wind farm in the
middle of the Grand Canyon or at the foot of Mount Rushmore.’” (Editorial, “Not-So-Consumer-Friendly Romney,” The
Washington Times, 4/14/06)

 “The People Of Massachusetts Want Him To Lead The Way, But He Seems Anchored To The
Irresponsible NIMBY Policies Of The Past.” “The people of Massachusetts want him to lead the way, but
he seems anchored to the irresponsible NIMBY policies of the past. Indeed, a statewide survey recently
conducted by the University of New Hampshire and the University of Massachusetts revealed that
Massachusetts residents supported the Cape Wind project by 64 percent to 10 percent, with 26 percent
undecided. Among all options, offshore wind-generated energy received the greatest amount of support
among Massachusetts residents, even more than solar power. Even if Mr. Romney doesn’t get it, it is clear
that the vast majority of his non-fund-raising constituents do.” (Editorial, “Not-So-Consumer-Friendly Romney,” The
Washington Times, 4/14/06)

 Romney’s Opposition To Cape Wind “Is Not The Way Any Republican Should Begin A Presidential
Campaign.” “In November, the man [Romney] who opposes Cape Wind had the nerve to declare that ‘clean-
energy technologies will reduce our dependence on foreign oil, air pollution and long-term energy costs.’ He
should have added: ‘Provided that those clean-energy technologies are “Not In My Back Yard” or in the front
yard of my fund-raisers.’ In the midst of an energy crisis, this is not the way any Republican should begin a
presidential campaign.” (Editorial, “Not-So-Consumer-Friendly Romney,” The Washington Times, 4/14/06)

Romney Says He Supports Renewable Energy, But Opposes Cape Wind

Romney Said He Opposed Project “Due To The Visual Impact.” ROMNEY: “I’m enthusiastic about
renewables, I’m enthusiastic about wind, about solar cells and new technology, but I don’t think that the location in
Nantucket Sound is the right place for a major project of the nature that has been proposed due to the visual
impact …” (Jack Coleman, “Massachusetts Governor Urges Use Of Alternative Energy,” Cape Cod Times, 3/14/03)

 Romney: “I wouldn’t want in any way to try and prevent the development and expansion of wind technology
… But I would, however, not want to see wind technology employed in a highly visually impactful way in
Nantucket Sound.” (Jack Coleman, “Massachusetts Governor Urges Use Of Alternative Energy,” Cape Cod Times, 3/14/03)

Romney: “I Don’t Like The Project At All.” (Jon Keller, “Passions Running High In Wind Farm Debate,” WBZ-TV Boston,
www.wbztv.com, 4/24/06)

Romney: “I Love Wind Technology … From A Visual Standpoint It’s Just The Wrong Place To Put A
Project Like That.” ROMNEY: “I love wind technology. I’d love to see it used in Massachusetts. I’m just afraid
118

that in a place that is key to our tourism economy, and is a national treasure, from a visual standpoint it’s just the
wrong place to put a project like that … It’s a little bit like saying, “The Grand Canyon has great winds, let’s put a
windmill project in the Grand Canyon.”‘ (Jack Coleman, “Massachusetts Governor Urges Use Of Alternative Energy,” Cape Cod
Times, 3/14/03)

Romney: “This Is The Wrong Place For A Wind Farm.” ROMNEY: “I want more wind power in the
commonwealth. I’d like to see it on other places in our coast and in our land … But I think in this particular area,
surrounded by state waters and as a tourism treasure for the commonwealth and the nation, this is the wrong
place for a wind farm.” (Elizabeth Mehren, “Cape Cod Wind Farm Project May Be Headed For Pasture,” Los Angeles Times, 5/5/06)

Romney Aide Shawn Feddeman: Romney “Absolutely Does Not Support” Cape Wind Project. “He has
been consistent in that he supports looking at alternative energy sources, but this is something he absolutely does
not support …” (Donna Goodison, “Wind Farm Opposition Is Shared By Romney,” Boston Herald, 2/28/03)

Renewable Energy Advocates Said Congressional Effort To Block Cape Wind Could Harm Wind Power
Development For Decades

Renewable Energy Advocates Said Romney-Backed Congressional Effort To Block Cape Wind Was
Threat To Wind Power Development, “Perhaps Setting Back New Projects As Much As A Generation.” “A
Coast Guard reauthorization bill that would block construction of the nation’s first offshore wind farm is being
viewed by industry officials, financial backers and renewable energy advocates as a threat to other wind-
generation projects in coastal waters. Conferees on the legislation (HR 889) added language to a conference
report agreed to April 6 that would allow the governor of Massachusetts to veto the Cape Wind project planned for
Nantucket Sound. Although the provision would apply only to the Massachusetts project, it could have a ‘very
strong adverse effect on the offshore wind industry,’ perhaps setting back new projects as much as a generation,
said Theodore Roosevelt IV, a managing director at Lehman Brothers, which is spearheading the Cape Wind
financing effort. ‘Going forward, if someone approaches us about an offshore wind project, we’re going to be
deeply skeptical about taking it on because we can’t understand the risk,’ Roosevelt said.” (Kathleen Hunter,
“Opposition To Cape Cod Project Seen As Threat To Wind Power Development,” Congressional Quarterly Today, 4/21/06)

EDUCATION

Romney Supports No Child Left Behind Act, Raises Concerns Over Specific Testing Processes

Romney Supports No Child Left Behind Act. “Massachusetts has not been impacted by the federal No Child
Left Behind law because it was testing public school students before it was enacted, Gov. Mitt Romney said
Thursday, but he supports it because such measurement is necessary to improve schools.” (“Romney Applauds
Student Measurement In No Child Left Behind,” The Associated Press, 8/31/06)

Romney Said Measurement Standards In NCLB “Have A Long Way To Be Perfected” But Backed Concept
Of Measuring Student Progress. “We all want to be successful based on our rhetoric, not actual, measurable
results, and I’m afraid that in the world marketplace, our kids are only going to be successful based on their
performance, and that requires measurement. … I think the president was right to insist on measurement. I think
the measurements themselves have a long way to be perfected, and a lot of room for improvement.” (“Romney
Applauds Student Measurement In No Child Left Behind,” The Associated Press, 8/31/06)

Despite His Campaign Trail Claims, Standardized Testing Started A Decade Before Romney Took Office

Romney, In 2007: “We Set Standards. We Have A Graduation Exam To Get Out Of High School You’ve Got
To Pass…” (O. Kay Henderson, “Romney Calls For End To Bilingual Education,” Radio Iowa, 1/26/07)

Massachusetts’ MCAS Exam For Public School Students Has Existed Since 1993. “The Massachusetts
Comprehensive Assessment System (MCAS) was implemented in response to the Education Reform Law of
1993, which required that MCAS be designed to: Test all public school students across the Commonwealth,
including students with disabilities and students with limited English proficiency …” (Massachusetts Department Of
Education Website, www.doe.mass.edu, Accessed 1/26/07)

As Candidate For Governor, Romney Didn’t Know Vital Details Of State’s Testing System

In 2002, Romney Didn’t Know What MCAS Acronym Stood For. “Romney, 55, said he planned to continue
Swift’s support of Education Reform, the 1993 state law meant to boost spending in the state’s poorest schools,
119

and the MCAS exam, the standardized test state officials use to make sure that money is getting results. ‘I believe
that the MCAS is a system that is working for the children of Massachusetts,’ Romney volunteered. But when
asked what the letters ‘MCAS’ stand for, Romney made his first campaign-trail stumble. ‘I can’t repeat them for
you right now, thank you, but it’s for the kids who are getting ready to graduate this year,’ he said.” (John McElhenny,
“Romney, Swift Show Republican Unity,” The Associated Press, 3/20/02)

Romney Also Didn’t Know When State’s MCAS Testing Standards Took Effect. “In fact, students graduating
this year don’t have to pass the MCAS exam, which stands for the Massachusetts Comprehensive Assessment
System. Students graduating next year are the first who must pass to graduate.” (John McElhenny, “Romney, Swift Show
Republican Unity,” The Associated Press, 3/20/02)

Romney Boasts Of Supporting Charter Schools Yet Failed To Meet With School Choice Advocates While
In Office

On Campaign Trail, Romney Recounts Growth In Charter Schools During His Term As Governor. “On
education, Romney boasted of student performance on federal testing on English and math, growth of charter
schools, state funded college scholarships and approval of a ballot initiative that ended bilingual education.” (Todd
Dvorak, “Romney Touts Conservative Views In Waterloo,” The Associated Press, 1/26/07)

 “[Romney] Told The Crowd That He Favors The Establishment Of Charter Schools.” (Jim Davenport,
“Romney Pushes Married Family Involvement In Education,” The Associated Press, 2/23/07)

Head Of Massachusetts Charter School Association Says He Was Unable To Get A Single Meeting With
Romney In Four Years. “Even his local supporters are cringing. Few issues are as important as school choice
but Marc Kenen, head of the Massachusetts Charter School Association, wasn’t able to get a single meeting with
the governor in four years. ‘We never had an opportunity to sit down with him, we never had a one-on-one
conversation,’ Kenen said. ‘He wasn’t the most accessible guy.’” (Brett Arends, Op-Ed, “Mitt Shoots Holes In His Credibility,”
The Boston Herald, 4/11/07)

Romney Endorsed Vouchers For Private Schools In 1994 But Opposed Them In 2002

Romney Came Out Against School Vouchers In 2002 After Favoring Them In 1994. “During their Tuesday
night debate at WPI, Ms. O’Brien and Mr. Romney said they oppose vouchers for private schools. … Romney
campaigned in favor of vouchers when he ran against U.S. Sen. Edward M. Kennedy, D-Mass., in 1994.” (Richard
Nangle, “Bilingual Ed Produces Stark Divide,” Sunday Telegram [MA], 10/6/02)

2002: Romney Said Vouchers Were “Not A Good Idea For Massachusetts.” “In a statement, Mr. Romney
said ‘vouchers are not part of my plan to improve the quality of education for our students, and they are not a
good idea for Massachusetts.’” (Richard Nangle, “Bilingual Ed Produces Stark Divide,” Sunday Telegram [MA], 10/6/02)

As Gubernatorial Candidate, Romney Opposed Abstinence-Only Education Programs, Later Changing His
Position

2002: Romney Told Reporters He Supported Sex Education In Public Schools And Opposed Abstinence-
Only Programs. “Yesterday, Romney also aimed to head off confusion about his stance on abortion rights by
answering a Mass National Abortion and Reproductive Rights Action League questionnaire with mostly abortion-
rights positions. … Romney said that he would oppose any abortion restrictions, such as mandated waiting
periods or religion-based counseling and that he supports sex education in public schools and opposes
abstinence-only programs.” (Stephanie Ebbert, “Romney Pushes Education At Campaign Stop,” The Boston Globe, 4/10/02)

 Pro-Choice Activists Say Romney Promised To Fight Efforts To Promote Abstinence-Only Education.
“Running for governor, Romney told [Deborah] Allen and other officers of NARAL Pro-Choice Massachusetts
that he would steadfastly support abortion rights. … Romney promised to fight efforts by some conservatives
to require abstinence-only sex education in schools, rather than courses that mention condoms and other
forms of contraception.” (Peter Wallsten, “Activists Remember A Different Romney,” Los Angeles Times, 3/25/07)

In 2005, Romney Unsuccessfully Tried To Steer $740,000 Federal Sex Ed Grant Into Classrooms Rather
Than Advertising. “Earlier this month he tried, unsuccessfully, to persuade the Legislature to use a $740,000
federal sex education grant to teach abstinence in schools, rather than continue the current practice of spending it
on television commercials and ads on subways and buses.” (Scott S. Greenberger, “Roe V. Wade Omitted From
Proclamation,” The Boston Globe, 3/25/05)
120


 Romney Continued To Support Comprehensive Sex Education With Abstinence Emphasis. “[Romney
aide Eric Fehrnstrom] said Romney supports ‘comprehensive sex education with an emphasis on abstinence
as the safest and healthiest choice for our young people,’ and that the criticism from Planned Parenthood and
NARAL is politically motivated.” (Scott S. Greenberger, “Roe V. Wade Omitted From Proclamation,” The Boston Globe, 3/25/05)

In 2002, Romney Initially Refused To Back Ballot Initiative Mandating English Immersion Instead Of
Bilingual Education Before Switching Positions

In April 2002, Romney Opposed Ballot Initiative Replacing Bilingual Education With English Immersion, A
Measure His Spokesman Said Went “Too Far.” “GOP lieutenant governor hopeful James Rappaport, in a
sharp-right break from ticket-topper Mitt Romney, has signed a no-new-tax pledge and is embracing a bid to
dismantle the state’s bilingual education law. … Rappaport will join local leaders of the English for Children of
Massachusetts campaign to endorse their controversial ballot initiative. … Romney has carefully sought to appeal
to moderate and Democrat voters and opposes the ballot question. ‘Mitt Romney is not happy with the status quo
with regard to bilingual education but he thinks the Unz ballot question goes too far,’ said Romney deputy
campaign manager Eric Fehrnstrom.” (David R. Guarino and Joe Battenfeld, “Rappaport, In Break With Romney, Inks No-New-Tax
Pledge,” The Boston Herald, 4/10/02)

 Initiative Required Rapid, Yearlong Language Immersion For All Non-Fluent Children. “The proposal,
backed by Silicon Valley millionaire Ron Unz, would force all children not fluent in English to learn it within a
year. Current state law allows for a three-year introduction to English.” (David R. Guarino and Joe Battenfeld,
“Rappaport, In Break With Romney, Inks No-New-Tax Pledge,” The Boston Herald, 4/10/02)

 Investor’s Business Daily: “[The ballot initiative] would replace the state’s bilingual ed with a one-year
program of English immersion. Early polling shows it running well ahead. Yet the GOP’s nominee for
governor, Mitt Romney, opposes it.” (Tom Gray, “Schools’ Bilingual Ed Failures Push States To Seek Reforms,” Investor’s
Business Daily, 5/29/02)

Less Than Two Months Later, Romney Reversed His Position And Endorsed The Ballot Initiative.
“Republican gubernatorial candidate Mitt Romney is endorsing a California millionaire’s proposal to replace
Massachusetts’ three-year bilingual education system with a one-year “English immersion” program for children
not fluent in the language.” (John McElhenny, “Mitt Romney Endorses ‘English Immersion’ Education Plan,” The Associated Press,
6/4/02)

 “Politically, Supporting This [Initiative] Was Like Saying You Supported Baseball And Apple Pie, And
The Poll Numbers Reflected This.” (Owen Eagan, “Baseball, Apple Pie, And English,” Campaigns & Elections, 10/03)

 Initiative Eventually Passed With 68% Of The Vote, Phasing Out Bilingual Education. “The English
immersion law, which calls for students with limited English skills to spend a year learning almost entirely in
English before moving to mainstream classrooms, replaced bilingual education after 68 percent of voters
approved the switch last November.” (Anand Vaishnav, “School Begins, Immersed In English Bilingual Education Ends Under
Terms Of 2002 Vote,” The Boston Globe, 8/27/03)

Romney Eventually Made English Immersion A “Central Plank” Of His ‘02 Campaign, Spending More Than
$1 Million To Promote It. “Mitt Romney, the former Olympics chief and venture capitalist, adopted English
immersion as a central plank in his campaign for governor. His support for immersion would be promoted in a
constant drumbeat of campaign stump speeches, press events, automated phone calls to voters, and two
separate TV spots that we estimated cost more than $1 million.” (Owen Eagan, “Baseball, Apple Pie, And English,”
Campaigns & Elections, 10/03)

 While Endorsing Ballot Measure, Romney Said He Would Be “The First To Say ‘Stop’” If It Failed And
Would Not Pursue Issue If Voters Rejected It. “Republican Mitt Romney… said he supports the bilingual
education initiative known as Question 2 that voters will decide on Nov. 5. … Romney said that he opposes a
part of the initiative that would allow parents to sue teachers and districts over immersion, and said he would
be ‘the first to say “stop”‘ if immersion didn’t work. He also said he would not pursue the issue if voters reject it
in November.” (Theo Emery, “Hopefuls For Governor, Lieutenant Governor Hit The Road For Votes,” The Associated Press,
10/12/02)

 Ballot Measure Passed With 68% Support. “The English immersion law, which calls for students with
limited English skills to spend a year learning almost entirely in English before moving to mainstream
121

classrooms, replaced bilingual education after 68 percent of voters approved the switch last November.”
(Anand Vaishnav, “School Begins, Immersed In English Bilingual Education Ends Under Terms Of 2002 Vote,” The Boston Globe,
8/27/03)

In 2003, State Legislature Loosened The New Immersion Law And Overturned Romney’s Subsequent
Veto. “About 68 percent of Massachusetts voters last year approved the ballot initiative, Question 2, which
required that immigrant students be placed in all-English classes instead of bilingual programs. But the
Legislature on Monday voted to exempt some provisions of the new law, including ‘two-way’ programs, a form of
bilingual education in which students of different cultures learn each other’s languages simultaneously.” (Anand
Vaishnav, “Romney Hits Softening Of Bilingual Law,” The Boston Globe, 7/16/03)

 “Romney Vetoed The Legislature’s Exemption Of Two-Way Programs, But Both Houses Overrode
Him…” (Anand Vaishnav, “Romney Hits Softening Of Bilingual Law,” The Boston Globe, 7/16/03)

Romney Now Touts English Immersion Education On Presidential Campaign Trail. “Massachusetts Gov.
Mitt Romney, campaigning for Iowa Republicans … said that while the United States should embrace its diversity,
all students should be immersed in the English language. … Romney said he has been a proponent of ‘English
immersion,’ in which a bilingual student is placed in a classroom where all materials, books and instruction are in
English.” (Melissa Walker, “Schools Should Use English, Romney Says,” Des Moines Register, 8/26/06)

 Romney: Kids “Need To Speak The Language Of This Country.” “If kids in this country want to be
successful in this country then they need to speak the language of this country. … Republicans care about
education. Democrats can’t do what needs to be done there. They are so wedded to the teachers union they
can’t put kids first.” (Todd Dvorak, “Romney Touts Conservative Views In Waterloo,” The Associated Press, 1/26/07)

1994: As Senate Candidate, Romney Backed Eliminating Federal Department Of Education

Romney Said Education Should Be State And Local Issue, Called For Elimination Of U.S. Department Of
Education. “When Romney ran for U.S. Senate in 1994, he called for the elimination of the U.S. Department of
Education. He said there’s no contradiction in that stance and his new education proposal, because he has
always believed education should be a local and state issue, not federal.” (John McElhenny, “Mitt Romney Endorses
‘English Immersion’ Education Plan,” The Associated Press, 6/4/02)

CRIME AND PUBLIC SAFETY

Romney Instituted “Top-To-Bottom” Corrections Reform Effort Early In His Term

In 2003, Romney Commissioned Former Democratic Gubernatorial Nominee And Ex-Attorney General
Scott Harshbarger To Lead “Top-To-Bottom” Review Of State’s Correction System. NPR’s LYNN NEARY:
“[T]wo months after the brutal murder of a defrocked priest in a maximum-security prison in Massachusetts,
Governor Mitt Romney has ordered a top-to-bottom review of the state’s Department of Corrections. …
Republican Governor Mitt Romney has appointed Scott Harshbarger to lead a top-to-bottom review of the
corrections system. Harshbarger is a Democrat and former state attorney general who says over the past 20
years the state paid less attention to corrections policies even as it worked effectively to reduce crime.” (NPR’s
“Weekend Edition,” 11/1/03)

December 2003: Facing String Of Bad Press Coverage, Romney “Purged” State’s Correction And Public
Safety Commissioners As Well As Chief Medical Examiner. “Facing daily reports of scandal and abuse in the
prisons, medical examiner’s office and state licensing division, Gov. Mitt Romney yesterday purged three top
public safety officials in the first major shakeup in his administration. The high-level officials swept out in the
personnel changes have been struggling to dig out from a barrage of negative headlines and allegations of
mismanagement.” (Steve Marantz, “Wipeout,” Boston Herald, 12/2/03)

 Department Of Correction: “Michael Maloney, commissioner of the Department of Correction … was placed
on medical leave in the wake of the brutal strangulation murder of defrocked priest John J. Geoghan, and is
being replaced by Kathleen M. Dennehy, deputy commissioner. Admistration officials would not disclose the
nature of Maloney’s illness.” (Steve Marantz, “Wipeout,” Boston Herald, 12/2/03)

 Office Of Public Safety: “Commissioner of Public Safety Joseph Lalli … will resign at the end of December
as federal and state authorities probe the improper issuance of licenses for tradesmen and heavy equipment
operators. No replacement has been named.” (Steve Marantz, “Wipeout,” Boston Herald, 12/2/03)
122


 Chief Medical Examiner: “Dr. Richard J. Evans, the chief medical examiner … will be replaced amid
revelations in Boston Herald of gross mismanagement. Romney will choose his successor from three
candidates to be nominated by a 16-member commission activated yesterday.” (Steve Marantz, “Wipeout,” Boston
Herald, 12/2/03)

Romney Aide: “The Governor Is Interested In A Fresh Start” On Public Safety Issues. “‘The governor is
interested in a fresh start at (the Executive Office of Public Safety,)’ said a senior aide who spoke on the condition
of anonymity. The aide downplayed the personalities involved, saying, ‘These personnel moves should not reflect
negatively on the people involved, rather, they indicate the governor’s prerogative to bring in his own team to
manage critical public safety functions.’” (Steve Marantz, “Wipeout,” Boston Herald, 12/2/03)

Romney Had Been Under Fire For Mismanagement Of Prisons And Lax Oversight Of Sex Offenders.
“Romney has come under fire from Democratic lawmakers for mismanagement of the prisons as well as the Sex
Offender Registry Board, which is part of the Executive Office of Public Safety. A Herald-Fox 25 News
investigation uncovered a failed system of monitoring sex offenders. In scores of cases, state records contained
inaccurate information about the residential addresses and work locations of some of the most dangerous sex
offenders after their release from prison.” (Steve Marantz, “Wipeout,” Boston Herald, 12/2/03)

After Romney Left Office, Top Public Safety Officials Were Dismissed Over Performance Issues, Admitted
System Is Not Working Well

Weeks After Romney Left Office, Commissioner Kathleen Dennehy Admitted System Suffered From
Overcrowded Prisons, Few Effective Rehabilitation Programs And Outdated Sentencing Policies.
“Outdated sentencing policies and a lack of effective rehabilitation programs are forcing inmates unprepared for
civilian life into Massachusetts communities, corrections experts warned at Harvard University’s Kennedy School
of Government last night. The commonwealth’s prisons are overcrowded and cannot accept inmates at the
current rate, Department of Correction Commissioner Kathleen Dennehy [said] … ‘Until we address our
sentencing practices, we are going to be in a box of increasing incarceration rates,’ she said.” (Emily Shields, “Criminal
Justice Officials Speak At Harvard On Prison Sentencing Reform,” The [Boston University] Daily Free Press, 2/28/07)

 Dennehy: “Prisons are starting to look more like hospital wards than institutions for punishment and
rehabilitation.” (Emily Shields, “Criminal Justice Officials Speak At Harvard On Prison Sentencing Reform,” The [Boston University]
Daily Free Press, 2/28/07)

In 2007, Romney’s Handpicked Correction Commissioner Was Asked To Resign Amid Loss Of
Confidence By New Governor, Prison Employees

In April 2007, Romney’s Successor Asked “Controversial” Correction Commissioner Kathleen Dennehy
To Resign. “Correction Commissioner Kathleen M. Dennehy, who was appointed to overhaul the state’s prison
system after the slaying of incarcerated priest John Geoghan, has been asked to leave her post by the Patrick
administration, according to administration sources. … Since Governor Mitt Romney appointed Dennehy in March
2004, she has been a controversial figure. … [S]he inspired optimism among reform activists who believed she
would bring a new openness and crack down on alleged abuse by guards. But she quickly fell out of favor with the
union, which accused her of initiating policies that made the job of correction officers more dangerous.” (Andrea
Estes, “Prison Chief Stepping Down,” The Boston Globe, 4/18/07)

Massachusetts Correction Officers Federated Union’s Steve Kenneway Said Dennehy’s Weak Positions
When It Came To Assaults On Guards Led To Loss Of Confidence In Her Leadership. “[Kenneway] said two
policies in particular turned the union against her. After an inmate was beaten by guards, Dennehy changed the
department’s use-of-force policy, so that an officer who is provoked must stop before acting to consider what a
neutral person would find a reasonable response. Kenneway said that Dennehy has also downplayed the
seriousness of assaults on officers and failed to press for the prosecution of prisoners who attack guards.” (Andrea
Estes, “Prison Chief Stepping Down,” The Boston Globe, 4/18/07)

 Kenneway: Dennehy “Changed Policies That We Believe Will End Up Getting An Officer Killed.” “Her
management style has been nothing but abrasive … Under her leadership, she has alienated the officers and
changed policies that we believe will end up getting an officer killed. Morale has never been lower.” (Andrea
Estes, “Prison Chief Stepping Down,” The Boston Globe, 4/18/07)

123

 Kenneway Noted New Limits On How Guards Can React When Provoked And Study Showing
“Serious Shortcomings” In State’s Handling Of At-Risk Inmates. “Kenneway pointed to a change in the
use-of-force policy, which put new limits on what actions guards could take when provoked, and what he saw
as her reluctance to push for prosecution of inmates who assault guards. The system has also seen a sharp
rise in suicides on Dennehy’s watch, leading her to call for a study that recently highlighted serious
shortcomings in the state’s handling of at-risk inmates.” (Andrea Estes, “Prison Chief Stepping Down,” The Boston Globe,
4/18/07)

Romney Appointed Dennehy In December 2003 After Prison Slaying Of Abusive Priest John Geoghan By
Another Inmate. “Romney appointed Dennehy as acting commissioner in December 2003 to replace Michael T.
Maloney. He was ousted four months after Geoghan, a dismissed priest whose abuse of young boys helped
trigger the clergy sexual abuse scandal, was killed in his prison cell by another inmate. Dennehy was officially
appointed to the post three months later.” (Andrea Estes, “Prison Chief Stepping Down,” The Boston Globe, 4/18/07)

State Rep. Kay Khan (D) Said Dennehy Was “Confined” By Romney Administration. “State Representative
Kay Khan, Democrat of Newton, who has worked on correction issues for more than a decade, said Dennehy
tried to make changes but was met with resistance from the former administration. ‘Her heart and mind have
always been in the right place, though she’s often been confined I believe by the Republican administration. She’s
had to be cautious about how far she’s willing to go,’ said Khan.” (Andrea Estes, “Prison Chief Stepping Down,” The Boston
Globe, 4/18/07)

STATE PRISON SYSTEM

Assessments Of Massachusetts Prison System Revealed Array Of Internal Problems

Prisoners “Routinely Being Released Into Cities And Towns With Highly Infectious Diseases … Because
Of Woeful Medical Care Behind Bars.” “2005 assessment of the Romney administration’s overall progress on
prison reform assigns a ‘D’ to its improvements in health care since June 2004. Massachusetts prisoners are
routinely being released into cities and towns with highly infectious diseases – among them tuberculosis, skin
lesions, hepatitis C and HIV – because of woeful medical care behind bars.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,”
Boston Herald, 4/21/06)

 System Had Inadequate Treatment Facilities For Inmates With Infectious Diseases. “According to a
2003 study from the Massachusetts Public Health Association, a third of the inmates entering the DOC
system had hepatitis C. The entire system had just 55 treatment slots for the highly contagious disease.”
(Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

Twenty Prison Guards Were Paid Over $270,000 In Salary While On Forced Leave After Allegations Of
Impropriety. “Some $270,000 in taxpayer-funded salaries are being paid to 20 prison guards or Department of
Correction civilian staff who are on leave while being probed for prisoner abuse, criminal charges such as rape
and domestic violence and other incidents.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

Guards Filed Over 30 Complaints Regarding Malfunctioning Cell Doors Before Several High-Risk
Prisoners Escaped From Cells At Walpole, MA Prison When Doors Failed. “In 2005, several of the state’s
most dangerous cons escaped their cells at MCI-Walpole’s Disciplinary Disorder Unit after electronic doors
malfunctioned. In one case a prisoner left his cell and went on a rampage, breaking windows and passing out
razors to other inmates. Prison guards filed 34 complaints about the faulty doors before the DOC shut down the
unit for repairs in July. The unit remains closed.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

Lost Security Video May Have Warned Of Impending Jailhouse Murder. “Pedophile priest John J. Geoghan
murdered Aug. 23, 2003, by a fellow inmate, a slaying that his killer, Joe Druce, pantomimed on a security video
that DOC officials were unable to locate.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

Guards Complained About Dangerous Staffing Conditions In One Prison Where Female Counselor Was
Attacked By Sexual Predator. “In December, a convicted sexual predator attacked a female counselor at MCI-
Gardner, a prison plagued with problems because of low staffing levels. Guards have written more than two
dozen reports about dangerous conditions in the prison.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

Romney Efforts At Reforming Prison System Failed, Commissioner Fired By Successor

124

Romney’s Handpicked Correction Commissioner Kathleen Dennehy Forced Out By New Governor “Under
A Cloud.” “Outgoing Correction commissioner Kathleen Dennehy confronted a culture of secrecy, tolerance of
inmate abuse, and rigidity when she took control of the state prison system in 2003 after the ouster of her
predecessor by then-Governor Romney. But now it is the reform-minded Dennehy who is under a cloud, and who
has been asked to leave her post by Governor Patrick, raising questions about what kind of leader is needed next
at the Department of Correction.” (Editorial, “Hard Time For State Prisons,” The Boston Globe, 4/24/07)

Globe Editorial: Romney’s Appointee Couldn’t “Make A Clean Break From The Correction Culture In
Which She Rose.” “On paper, Dennehy seemed the right person to lead the department. … But the 31-year
employee of the department could never fully make a clean break from the Correction culture in which she rose.
She speaks convincingly of the need for transparency and accountability. But murkiness still remains, including in
the important area of prisoner classification.” (Editorial, “Hard Time For State Prisons,” The Boston Globe, 4/24/07)

Romney Advisory Council On State Prisons Fell Apart In 2005 As Members Claimed Romney Lacked
Commitment

Four Members Of Romney’s Advisory Council On Prisons Resigned Their Seats, Charging Romney Was
Not Committed And Didn’t Attend Meetings. “[S]tate Sen. Jarrett T. Barrios (D-Cambridge), who quit Romney’s
DOC Advisory Council last year citing Romney’s inaction on its proposals, said the state’s troubled system is no
model … Romney formed the council after the 2003 murder of defrocked priest John Geoghan by a fellow inmate.
Four members have quit, saying Romney was not committed to change and did not attend a single meeting.”
(Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

April 2006: Romney Toured Guantanamo Bay Detention Facility To Offer Ideas – Despite Lack Of
Experience With His Own State Prison System

Romney Had Only Toured Massachusetts’ Troubled Prisons “Once Briefly.” “Gov. Mitt Romney, who has
only visited the state’s troubled prisons once briefly, will tour the U.S. military base at Guantanamo Bay, Cuba,
tomorrow to share his ideas on prison ‘best practices,’ a spokesman said yesterday.” (Michelle McPhee, “Say It Ain’t Mitt-
Mo,” Boston Herald, 4/21/06)

 Romney’s Spokesman Acknowledged Lack Of Hands-On Experience In State. “Ferhnstrom
acknowledged Romney’s only prison visits while in office were a tour of a residential pre-release program in
Boston and a press conference he held in the parking lot of the Souza-Baranowski Correctional Center in
Shirley, which he did not tour.” (Michelle McPhee, “Say It Ain’t Mitt-Mo,” Boston Herald, 4/21/06)

 Purpose Of Guantanamo Trip Was To Share Best Practices Of State Institutions. “The one-day trip is an
opportunity for them to see how the prison operates and to share ideas on the way their state prisons are run,
Romney spokesman Eric Fehrnstrom said.” (Brooke Donald, “Romney, Huckabee To Visit Guantanamo Bay,” The Associated
Press, 4/20/06)

Boston Herald: Romney Did Not Spend “Any Quality Time” At State Prisons. “The notion that military brass
are just waiting around for this state’s governor to swing by and offer them his best advice on running a military
prison, now in its fourth year of operation, is kind of amusing. Well, it would be amusing if Mitt Romney had
actually spent any quality time visiting prisons here in Massachusetts.” (Editorial, “Gitmo Gov On The Fly,” Boston Herald,
4/22/06)

Romney Brought Corrections Commissioner With Him To Guantanamo Despite Criticism Of Department

Commissioner Kathleen Dennehy Joined Romney’s Trip To Cuba Even Though Her Department Had Been
“Barraged By Criticism.” “Department of Correction Commissioner Kathleen Dennehy is joining Romney on the
trip. Dennehy was named commissioner in 2004 and oversees 18 correctional facilities across Massachusetts.
The state’s prison system under Romney has been barraged by criticism from elected officials, members of an
independent committee appointed by Romney and prison reform advocates.” (Emma Ratliff, “Healey Defends Mitt’s Cuba
Excursion, Record On Prisons,” Boston Herald, 4/22/06)

 Massachusetts Prison System Given Poor Grades In Multiple Areas. “All give the system poor grades for
health care and communicable diseases, the security and safety of guards and inmates, an abusive internal
corrections culture and other failings.” (Emma Ratliff, “Healey Defends Mitt’s Cuba Excursion, Record On Prisons,” Boston
Herald, 4/22/06)

125

CHIEF MEDICAL EXAMINER’S OFFICE

Medical Examiner’s Office Was Investigated For Various Missteps As Whistleblowers Noted Lax
Conditions

State Medical Examiner’s Office, Under Jurisdiction Of Romney Administration, Was Investigated By
Attorney General In 2003 For Botching Infant Death Investigation. “The [Medical Examiner’s] office, which
lawmakers and officials have for years called underfunded and understaffed, is now under investigation by the
attorney general’s office for sending the wrong set of eyeballs for testing following an infant’s death. Lawmakers
plan hearings next month on restructuring the office, and Republican Gov. Mitt Romney’s administration, which
oversees it, is implementing its own changes.” (Ken Maguire, “Medical Examiner’s Office Under Fire,” The Associated Press,
11/14/03)

 “The Medical Examiner’s Office Has Also Been Criticized In Recent Months For … Misidentifying A
Fire Victim’s Body, Which Was Later Cremated.” (Jonathan Saltzman, “DA’s Rap Governor’s Death Penalty Plan,” The
Boston Globe, 5/4/04)

Whistleblowers Sued Medical Examiner’s Office After Being Fired Or Disciplined For Their Actions. “The
state Medical Examiner’s Office, which oversees vital evidence in murder cases, handles body parts and other
evidence in a lax and primitive manner, says a pathologist fired soon after bringing that and other problems to the
attention of the governor. Dr. Abraham T. Philip was in the office as a contractor from October 2003 to March
2004, and also worked there from 2000 to 2002. He is the fourth whistleblower to sue the M.E.’s Office after being
disciplined or dismissed, he claims for trying to reform the embattled department.” (Tom Mashberg & Maggie Mulvihill,
“M.E. Office In Critical Condition,” Boston Herald, 5/24/04)

Romney Vetoed Reorganization Measure Affecting Medical Examiner’s Office And State Crime Lab

In 2003, Joint Legislative Committee Hearing Was Called To Discuss Reorganization Of Medical
Examiner’s Office. “The Public Safety and Criminal Justice legislative committees have called a Dec. 2 joint
hearing into the workings of the office. Public Safety Chairman Sen. Jarrett Barrios, D-Cambridge, said he’ll revisit
a proposal to collapse the medical examiner’s office, State Police crime lab, and related offices into one forensic
sciences department.” (Ken Maguire, “Medical Examiner’s Office Under Fire,” The Associated Press, 11/14/03)

Romney Had Previously Vetoed Measure Allowing Forensic Sciences Department To Take Charge Of
Medical Examiner’s Office. “A state budget provision would have taken those steps, but Romney vetoed it,
opting to increase the medical examiner’s budget by 30 percent.” (Ken Maguire, “Medical Examiner’s Office Under Fire,” The
Associated Press, 11/14/03)

 Romney’s Veto Message: “Although I support the idea of improving forensic services, I am vetoing this
section because I think this initiative requires more study.” (Sean Murphy, “Travaglini Blasts Romney Over Medical
Examiner’s Office Contends Governor Deferred Overhaul,” The Boston Globe, 1/24/04)

Sen. Jarrett Barrios (D), Public Safety Committee Chairman: Romney “Refused” To Deal With ME’s Office
As Part Of Government Reorganization. “The governor himself proposed reorganizing state government to
promote efficiencies and cost savings. He refused to deal with the medical examiner’s office as part of that.” (Ken
Maguire, “Medical Examiner’s Office Under Fire,” The Associated Press, 11/14/03)

Backlog Issues At Medical Examiner’s Office And Crime Lab Led To Criticism Of Romney’s Proposed
“Foolproof” Death Penalty System

District Attorneys Criticized Romney’s Death Penalty Proposal In Part Because Of Problems With Crime
Lab And Medical Examiner’s Office. “Several district attorneys criticized Governor Mitt Romney’s proposal to
establish what he insisted would be a nearly foolproof death penalty system, with the prosecutors saying
yesterday that the troubled state medical examiner’s office and State Police crime laboratory can barely carry out
current responsibilities, let alone make sure that innocent people don’t end up on death row.” (Jonathan Saltzman,
“DA’s Rap Governor’s Death Penalty Plan,” The Boston Globe, 5/4/04)

Norfolk DA Called Romney Proposal “Ridiculous” To Add Responsibility To Overburdened Crime Lab
And Medical Examiner. “But Norfolk District Attorney William R. Keating said it is ridiculous for the state to
consider giving the medical examiner’s office and crime lab the added task of analyzing scientific evidence in
death penalty cases. Both offices have struggled with crushing backlogs, Keating said, with delays of several
126

months in getting scientific analyses for criminal cases.” (Jonathan Saltzman, “DA’s Rap Governor’s Death Penalty Plan,” The
Boston Globe, 5/4/04)

In 2004, Romney Defended Embattled Outgoing Medical Examiner Richard Evans And Kept Him On State
Payroll At Higher Salary After New Chief Was Appointed

Romney Defended Chief Medical Examiner Richard Evans, Who Then Was Facing “Multi-Pronged” Probe
By State Ethics Commission Into His Decade In Office. “[F]lynn and Gov. Mitt Romney defended permitting
investigation-plagued Chief Medical Examiner Richard F. Evans to remain in his $128,000-a-year post after Flynn
said Evans had ‘reached the Peter Principle’ with regard to Evans’ ability to run his besieged office. The Herald
reported Tuesday that Evans is facing a multi-pronged probe by the State Ethics Commission into his 10-year
tenure in the office, including charges he let tens of thousands in federal grant money be misused on salaries and
other inappropriate items.” (Tom Mashberg, “Union Is Calling For Flynn To Resign,” Boston Herald, 1/17/04)

Romney “Defended The Skills Of The Embattled” Evans. “Gov. Mitt Romney defended the skills of the
embattled outgoing chief medical examiner Monday as he appointed a panel of experts to find a new person to
head the office, which has been blamed for losing body parts and accused of misusing government grants.” (Karen
Testa, “Governor Defends Embattled Chief ME As He Seeks Increase In Funding,” The Associated Press, 1/12/04)

 Romney Said Underfunding Was Responsible For Office’s Woes. “Romney blamed years of reported
problems on more than a decade of underfunding and said he’d request a 60 percent increase – an additional
$2.2 million – to bring the office in line with the latest technology and offer higher salaries to attract stronger
candidates.” (Karen Testa, “Governor Defends Embattled Chief ME As He Seeks Increase In Funding,” The Associated Press,
1/12/04)

Evans Retained State Job And Received Generous Salary Increase After Being Demoted And While Under
Investigation. “Disgraced former chief medical examiner Dr. Richard Evans not only still works in the state office
where he was demoted earlier this year following allegations of misconduct – he’s making a lot more money than
he did when he was running the place, the Herald has learned. Romney’s office repeatedly refused to answer
questions about Evans last night.” (Laurel J. Sweet, “Disgrace Brings Dividend,” Boston Herald, 10/28/05)

Romney Appointed Under-Certified Pathologists To Commission Charged With Recruiting New Medical
Examiner

January 2004: One Day After Announcing Intent To Replace Chief Medical Examiner Evans, Reports
Revealed Romney’s Appointees To Commission Tasked With Finding Replacement Did Not Meet
Certification Requirements. “One day after Governor Mitt Romney publicly pledged to replace the state’s
embattled chief medical examiner, his administration conceded yesterday that two of the governor’s appointments
to a commission named to recruit a new medical examiner do not meet legal requirements.” (Sean Murphy, “Concerns
Raised On Examiner Commission,” The Boston Globe, 1/14/04)

 State Law Requires Two Commission Members To Be Forensic Pathologists Certified By American
Board Of Pathology, But Romney Appointed Two Pathologists Who Were Not ABP-Certified. “Wilkins
said in an interview that the governor’s office had made a ‘good faith effort’ to comply with the state statute for
appointing the Commission on Medicolegal Investigation, which requires membership of two forensic
pathologists certified by the American Board of Pathology. … Wilkins said the governor’s office discussed
appointing the commission without the requisite forensic pathologists, but eventually decided to appoint two
pathologists who lack certification in forensic pathology.” (Sean Murphy, “Concerns Raised On Examiner Commission,”
The Boston Globe, 1/14/04)

Romney Allowed Reporters To Be Misinformed On The Status Of Commissioners’ Certification Status.
“Romney made no mention of the lack of forensic pathologists on the commission on Monday when he introduced
and swore into office commission members at a State House news conference. The governor was asked by a
reporter, ‘Are the forensic pathologists on this commission certified as required by statute?’ In response, Romney
turned to the newly sworn-in commission members and asked, ‘Are there any forensic scientists on this
commission that are not board certified?’ After a moment of silence, Romney smiled, and replied, ‘They are all
certified.’” (Sean Murphy, “Concerns Raised On Examiner Commission,” The Boston Globe, 1/14/04)

Romney’s 2005 Choice For Medical Examiner Later Criticized For “Sickening Backlog Of Decomposing
Bodies” At M.E.’s Office

127

March 2007: Medical Examiner’s Office, Led By Chief Examiner Mark Flomenbaum, Criticized For Having
“Dozens Of Corpses Stacked Up For Months.” “Horrified by a Herald report describing a sickening backlog of
decomposing bodies, a top state official yesterday ordered the immediate removal of dozens of corpses stacked
up for months at the medical examiner’s office. … Burke, whose Executive Office of Public Safety oversees the
ME’s office, said he would meet this morning with Chief Examiner Mark A. Flomenbaum to demand answers
about the shocking conditions at the office…” (Laura Crimaldi, “M.E. Ordered To Clear Out Bodies,” Boston Herald, 3/16/07)

Romney Chose Flomenbaum To Be Medical Examiner In 2005. “Last month, Romney installed a new leader in
the office, Dr. Mark A. Flomenbaum, a former New York City medical examiner who aided in the aftermath of the
Sept. 11, 2001, attacks.” (Michael Levenson, “Romney Seeks $1B For State Projects,” The Boston Globe, 5/7/05)

“[Flomenbaum] Took Over The Office With Great Fanfare In 2005, Under Gov. Mitt Romney, Vowing To
Clean Up One Of The Most Discredited Examiner’s Offices In The Nation.” (Laura Crimaldi, “M.E. Ordered To Clear
Out Bodies,” Boston Herald, 3/16/07)

STATE CRIME LAB/DNA BACKLOG

Romney Promised To Upgrade State’s Crime Lab As He Ran For Governor

Romney Campaigned “On Promises To Upgrade The State’s Crime Lab.” “Romney, who campaigned in part
on promises to upgrade the state’s crime lab, says it’s simply a matter of empowering police to solve new crimes
and to match data samples to solve old ones.” (Raphael Lewis, “Romney To Sign DNA Bill Today,” The Boston Globe, 11/12/03)

Media Reviews: Romney Did Little To Address “Severe Backlog” In DNA Testing System

Boston Herald Writers: Romney Administration “Has Done Little To Address The Severe Backlog” In DNA
Testing At State Police Crime Lab. “On the public safety front, the governor’s brochure claims he has
‘toughened public safety’ by cracking down on sex offenders and reforming corrections, forensics and other
agencies. … But the state has failed to join a compact that would inform Massachusetts when dangerous felons
and predators come here, has had difficulty in tracking sex offenders when they move or fail to register and has
done little to address the severe backlog in DNA testing at the state police crime lab.” (Brett Arends et al, “Romney Fails
To Make The Grade,” Boston Herald, 6/29/05)

“The [Crime] Lab Has Often Been The Subject Of Criticism Because Of Chronic Understaffing And Long
Delays In Processing DNA Samples, Which Are Often Crucial To Criminal Investigations And Trials.” (Ralph
Ranalli, “DNA Test Backlog Worsens In Mass.,” The Boston Globe, 4/23/05)

State Recently Spent Almost $270,000 To Hire Firm To Conduct “Top-To-Bottom Review” Of Crime Lab.
“The problems have embarrassed state officials and prompted inquiries by the State Police, the FBI, and a private
consulting company, Vance, recently hired to conduct a $267,000 top-to-bottom review of the crime lab.” (Jonathan
Saltzman, “DNA Chief Fired Over Crime Lab Problems,” The Boston Globe, 4/14/07)

2003 Expansion Of DNA Database – Signed Into Law By Romney – Blamed For Worsening DNA Backlog

Romney Signed Into Law Measure Requiring Everyone Convicted Of Felony In Massachusetts To Submit
DNA Sample For State Database. “Declaring that ‘the long arm of the law just got a little longer,’ Governor Mitt
Romney today visited the State Police Crime Lab to sign legislation requiring all convicted felons to provide DNA
samples to the state’s database. ‘I want to make sure that our law enforcement officials have the best possible
tools at their disposal to do their jobs and keep our neighborhoods safe,’ Romney said. ‘The state’s DNA
database is one of the most important tools they have.’” (Gov. Mitt Romney, Press Release, 11/12/03)

 “Following A Signing Ceremony At The State Police Crime Lab In Sudbury, Romney Called The New
Law One Of The Most Important Tools Available To Law Enforcement Investigators.” (“Romney Signs Bill
Expanding State’s Criminal DNA Database,” The Associated Press, 11/12/03)

 Measure Passed 146-4 In The House: “Lawmakers in the House also voted 146-4 in favor of a bill to expand
the state’s DNA database to include everyone convicted of a felony.” (“Legislature Sends Romney Bill Updating Sex
Offender Law,” The Associated Press, 9/30/03)

128

 Measure Passed 36-1 In The Senate: “Critics say the bill, which was approved by the Senate by a 36-1
margin, is too broad and should be limited only to more serious felonies.” (Steve LeBlanc, “Senate Approves Bill To
Expand The State’s Criminal DNA Database,” The Associated Press, 10/23/03)

Several Experts Have Criticized The ‘03 Law As Cause Of “Overwhelming Backlogs And Administrative
Problems.” “[S]everal prominent figures in the field nationwide have rallied to [Pino’s] defense and characterized
him as a victim of circumstances that afflict many crime labs nationwide. … They also said that a 2003 law that
expanded the state’s DNA database to include samples from all convicted felons – instead of the 33 serious and
violent felonies in the 1997 law creating the computerized archive – led to overwhelming backlogs and
administrative problems similar to those in other states that broadened their databases.” (Jonathan Saltzman, “DNA
Chief Fired Over Crime Lab Problems,” The Boston Globe, 4/14/07)

“[D]etractors Fear That The New Law Represents A Serious Encroachment On Privacy Rights…” “All
convicted felons in Massachusetts, from those who commit murder to those who steal live poultry, will be required
to submit DNA samples to the State Police under a controversial bill being signed today by Governor Mitt
Romney. … But even as Romney tells those gathered today that ‘the long arm of the law just got a little longer,’
detractors fear that the new law represents a serious encroachment on privacy rights, mostly because several of
the hundreds of felonies on the books are low-level offenses. A felony is any crime for which those convicted can
be sent to a state prison.” (Raphael Lewis, “Romney To Sign DNA Bill Today,” The Boston Globe, 11/12/03)

 State Officials Share DNA Data With Federal Government. “Currently, the state’s five-year-old database
holds approximately 20,000 DNA samples collected by swabbing the cheeks of those convicted of any of 33
serious or violent felonies. … State officials share the DNA data with the federal government, which maintains
a database that holds samples from all states compiling such information.” (Raphael Lewis, “Romney To Sign DNA Bill
Today,” The Boston Globe, 11/12/03)

In 2003, Northeastern University Professor James Alan Fox Warned Measure Could Lead To Wasteful
Spending And An Unwieldy, Oversized Database. “[J]ames Alan Fox, a professor of criminal justice at
Northeastern University, said the investment may not be worth it, given that most low-level criminals do not
become repeat offenders. ‘Most low-level criminals will not do it again, so we may be spending lots of resources
on collecting and storing a large amount of genetic data for nothing,’ Fox said. More problematic, he said, is the
possibility that such a large database can quickly become unwieldy and overwhelm law enforcement authorities.”
(Raphael Lewis, “Romney To Sign DNA Bill Today,” The Boston Globe, 11/12/03)

 Fox: “There’s A Recent, Rich History In Which Overburdened Labs Have Made Errors.” (Raphael Lewis,
“Romney To Sign DNA Bill Today,” The Boston Globe, 11/12/03)

Prior Law Required Only Those Convicted Of 33 Specific Violent Crimes To Submit DNA Sample. “The new
law requires every convicted felon in the Bay State, including those now incarcerated or on parole, to provide a
DNA sample to the state database. The prior law only required felons convicted of 33 sex-related and violent
crimes to submit such samples.” (Gov. Mitt Romney, Press Release, 11/12/03)

Law Was Expected To Expand State’s DNA Database Five-Fold While Costing Over $3.5 Million. “The
current DNA database has about 20,000 samples. Under the new law, the number is expected to grow to about
100,000 in a few years. Expanding the database is expected to cost about $3.6 million, although the state could
receive federal reimbursement.” (“Romney Signs Bill Expanding State’s Criminal DNA Database,” The Associated Press, 11/12/03)

Underfunding And Understaffing Of Crime Lab Was A Frequent Complaint

Waiting Nine Months For DNA Testing Results Was “Not Unusual.” “The slow pace of the DNA testing has
drawn attention to a frequent complaint by the state’s prosecutors: the crime lab is understaffed and underfunded
and has had to closely ration how many DNA tests local law enforcement agencies are allowed to submit. Waiting
nine months for results is not unusual.” (Theo Emery, “Worthington Case Draws Attention To DNA Backlog At Crime Lab,” The
Associated Press, 4/23/05)

 Crime Lab Could Only Handle One-Sixth Of State’s DNA Testing Demands Each Year. “The DNA lab
itself occupies just 840 square feet, where a dozen chemists handle about 300 DNA tests per year. That’s
roughly one-sixth of the state’s demand, according to lab director Carl Selavka.” (Theo Emery, “Worthington Case
Draws Attention To DNA Backlog At Crime Lab,” The Associated Press, 4/23/05)

129

 District Attorneys Were Limited To Only Four DNA Sample Requests Per Month. “Each month, the
state’s 11 district attorneys are allowed to submit up to four DNA samples, meaning investigators must
prioritize cases and put DNA testing for less important cases on hold.” (Theo Emery, “Worthington Case Draws
Attention To DNA Backlog At Crime Lab,” The Associated Press, 4/23/05)

 Public Safety Secretary Claimed Crime Lab Had Been Reorganized But Still Needed Funding. “State
Public Safety Secretary Edward Flynn said the crime lab was an ‘absolute disgrace’ before it was put under
the control of the state police in the 1990s. It has since been reorganized and accredited by a national
organization, but until recently, its funding needs were neglected.” (Theo Emery, “Worthington Case Draws Attention To
DNA Backlog At Crime Lab,” The Associated Press, 4/23/05)

Slow Improvement At Crime Lab Was Expected, With Time Frame Of Five To Seven Years Floated By
Officials

Despite Added Funding And Staffing, Improvement At State Crime Lab Expected To Be Slow. “Even if the
state continues to pump money and scientists into its overburdened crime laboratory, it will take ‘five to seven
years’ before DNA testing can be turned around in 30 days rather than the current rate of up to 15 months,
officials told a legislative committee yesterday. Although the state will double the 12 DNA chemists within a year
and plans to build a new crime lab capable of meeting all the commonwealth’s forensic testing needs, it would
take 80 scientists alone to handle the massive requests for DNA testing.” (Tom Farmer, “Crime Lab Shows Evidence Of
Slow Progress,” Boston Herald, 5/13/05)

“The Legislature Has Increased Funding To The Lab, From $6.2 Million In Fiscal 2005 To $16.2 Million In
Fiscal 2007.” (Jonathan Saltzman, “DNA Chief Fired Over Crime Lab Problems,” The Boston Globe, 4/14/07)

State Backlog Of DNA Testing Blamed In Part On Federal Requirement For Inclusion In FBI Database

Massachusetts Officials Blamed FBI Requirement That Samples Be Tested Twice Before Being Logged
Into National Database As Reason For Increase In State-Level Backlog. “The backlog for testing DNA
samples at the State Police Crime Laboratory has doubled in the last few months because of what state officials
are calling a burdensome new requirement that the DNA from convicted felons in Massachusetts be tested twice
before it is submitted to the FBI’s national data base. … State public safety officials said that the backlog caused
by the new FBI requirement means that it now takes 15 months on average for a DNA sample to come back from
the lab, twice as long as before the requirement.” (Ralph Ranalli, “DNA Test Backlog Worsens In Mass.,” The Boston Globe,
4/23/05)

Romney’s “Foolproof” Death Penalty Proposal Criticized Due To Backlog Issues

District Attorneys Criticized Romney’s Death Penalty Proposal In Part Because Of Problems With Crime
Lab And Medical Examiner’s Office. “Several district attorneys criticized Governor Mitt Romney’s proposal to
establish what he insisted would be a nearly foolproof death penalty system, with the prosecutors saying
yesterday that the troubled state medical examiner’s office and State Police crime laboratory can barely carry out
current responsibilities, let alone make sure that innocent people don’t end up on death row.” (Jonathan Saltzman,
“DA’s Rap Governor’s Death Penalty Plan,” The Boston Globe, 5/4/04)

Norfolk DA Called Romney Proposal “Ridiculous” To Add Responsibility To Overburdened Crime Lab
And Medical Examiner. “But Norfolk District Attorney William R. Keating said it is ridiculous for the state to
consider giving the medical examiner’s office and crime lab the added task of analyzing scientific evidence in
death penalty cases. Both offices have struggled with crushing backlogs, Keating said, with delays of several
months in getting scientific analyses for criminal cases.” (Jonathan Saltzman, “DA’s Rap Governor’s Death Penalty Plan,” The
Boston Globe, 5/4/04)

Romney Unilaterally Slashed Crime Lab Funding Weeks Before Leaving Office

Romney Claimed That Irresponsible Legislative Spending Necessitated Cuts As He Left Office. “In a final
splash before leaving the corner office, Gov. Mitt Romney yesterday slashed $425 million from the current year’s
budget, saying the Legislature’s irresponsible spending left him no choice. … Included in Romney’s cuts are
several items that Lt. Gov. Kerry Healey -- who ran for governor on public safety issues -- would likely have
objected to prior to Election Day: funding for the state police crime lab, the Sex Offender Registry Board and anti-
gang initiatives.” (Rebecca Fater, “Romney Slashes State’s Spending,” The Berkshire Eagle, 11/11/06)

130

In 2006, Romney Appointed Former Crime Lab Manager Mark Delaney To Head State Police Force

Romney Appointed Delaney To Lead State Police Following Four-Year Stint Running State Crime Lab.
“State Police Maj. Mark Delaney … was appointed as head of the law enforcement agency on Thursday. …
Delaney was appointed head of the State Police forensics lab in 2002 and presided over a revamping in the wake
of delays in processing DNA evidence. (Glen Johnson, “Head Of State Police Forensic Lab Named To Run Department,” The
Associated Press, 5/18/06)

 Romney, On Delaney’s Appointment: “He’s a law enforcement officer with 32 years of experience, and he
knows the force inside and out.” (Glen Johnson, “Head Of State Police Forensic Lab Named To Run Department,” The
Associated Press, 5/18/06)

Months Later, It Was Revealed Delaney Oversaw Crime Lab During Period When DNA Tests Were
Mishandled

Crime Lab Administrator Failed To Notify Prosecutors Of DNA Matches, Allowing Statute Of Limitations
To Expire. “An administrator at the troubled State Police crime laboratory has been suspended for failing to tell
prosecutors of DNA matches in a number of unsolved rape cases, which now cannot be pursued because the
statute of limitations has expired, the head of the State Police said yesterday.” (Jonathan Saltzman, “Crime Lab
Mishandled DNA Results,” The Boston Globe, 1/13/07)

Administrator Also Falsely Reported DNA Matches To Suspects. “The administrator, whom officials would not
name, also told police and prosecutors that tests in an unspecified number of cases linked DNA recovered at
crime scenes to suspects, when in fact they had not, Colonel Mark F. Delaney, superintendent of the State Police,
said in a statement.” (Jonathan Saltzman, “Crime Lab Mishandled DNA Results State Police Suspend Aide, Ask FBI Audit,” The Boston
Globe, 1/13/07)

Delaney Was Top Manager At Crime Lab When The DNA Test Results Were Mishandled. “[S]tate Police
Colonel Mark Delaney, who now leads the State Police and was the lab’s top manager while the DNA test results
were mishandled, asked for the review.” (John Ellement, “Outside Consultant To Review Crime Lab,” The Boston Globe, 1/27/07)

April 2007: Head Of Crime Lab’s DNA Database Fired After Allegedly Mishandling Dozens Of Test Results

DNA Database Administrator Robert Pino Was Fired After Supposedly Mishandling Test Results For Two-
Dozen Sexual Assault Cases Where Statute Of Limitations Ran Out. “The embattled administrator of the DNA
database at the State Police crime laboratory was fired yesterday, three months after the agency suspended him
for allegedly mishandling test results in about two-dozen unsolved sexual assault cases, according to the lawyer
for his union. Robert Pino, a 23-year civilian employee of the lab who testified in more than 240 criminal cases
and helped set up the state database, was sent a letter yesterday saying he was terminated…” (Jonathan Saltzman,
“DNA Chief Fired Over Crime Lab Problems,” The Boston Globe, 4/14/07)

Pino Was Second High-Ranking Crime Lab Official To Resign In Span Of Five Weeks. “Pino is the second
laboratory employee to lose his job over problems with the handling of DNA test results, including the alleged
failure to report positive DNA matches before the statute of limitations ran out. On March 9, Carl Selavka, the
civilian director of the lab since July 1998 and one of Pino’s supervisors, abruptly resigned under pressure, after
what Public Safety Secretary Kevin M. Burke described as an unfavorable assessment of his performance.”
(Jonathan Saltzman, “DNA Chief Fired Over Crime Lab Problems,” The Boston Globe, 4/14/07)

ROMNEY VETOED SEX OFFENDER REGISTRATION FEE

In 2003, Romney Vetoed Annual Registration Fee For Sexual Offenders And Up To $750,000 To Cut Down
On Backlog Of Sex Offenders Not Classified By State

Romney Vetoed New $75 Annual Fee For Sex Offender Registration – His Veto Was Overturned By The
House. “Beacon Hill lawmakers overturned Gov. Mitt Romney’s veto of $23 million in additional state aid to cities
and towns … House lawmakers also overturned Romney’s veto of a new $75 annual fee for sex offenders when
they renew their listing on the state’s sex offender registry. … Romney vetoed the fee, saying it would discourage
sex offenders from renewing their registration.” (Steve LeBlanc, “Legislature Restores State Aid To Local Communities, Sex
Offender Fee,” The Associated Press, 7/8/03)

Romney Also Vetoed Up To $750,000 In Funding Aimed At Cutting Down Backlog Of Sex Offenders Not
Yet Classified By State – Veto Overturned By House. “Another section of the budget, also vetoed by Romney,
131

would use up to $750,000 collected from the new [sex offender] fees to cut down on the current backlog of sex
offenders yet to be classified by the state. The House overturned that veto too.” (Steve LeBlanc, “Legislature Restores
State Aid To Local Communities, Sex Offender Fee,” The Associated Press, 7/8/03)

Romney’s Own Lieutenant Governor – Republican Kerry Healey – Opposed Veto Decision

Lt. Gov. Kerry Healey (R) Disagreed With Romney Vetoes On Sex Offender Registration Fee And
Classification Backlog Funds. “[Healey] said she disagreed with Romney’s decision in 2003 to veto a $75 fee
that would have been imposed on convicted sex offenders. She also said she disagreed with another veto to
spend $750,000 collected from the fees to reduce a backlog of sex offenders waiting at the time to be classified
by the state. The Legislature overrode those vetoes. … ‘No, I did not,’ Healey said when asked if she supported
Romney’s vetoes.” (Glen Johnson, “Healey Signs Sex Crimes Statute Extension Into Law,” The Associated Press, 9/21/06)

In Wake Of Romney Vetoes, Investigation Disclosed That State Lost Track Of One-Third Of State’s High-
Risk Sex Offenders

In November 2003, Investigation Found State Had Lost Track Of One-Third Of Worst Sex Offenders. “The
Romney administration plans to conduct a monthlong ‘intensive sweep’ for unregistered sex offenders using the
state police’s fugitive hunting squad, officials said yesterday. … [The] announcement comes in the wake of an
investigation by the Boston Herald and Fox 25 that found about one-third of Massachusetts’ high-risk offenders -
categorized as Level 3 - are skirting the sex offender registry law by providing phony or outdated addresses to the
state’s Sex Offender Registry Board.” (Jack Meyers and Jonathan Wells, “Round ‘Em Up,” The Boston Herald, 11/7/03)

Legislature Immediately – And Unanimously – Overturned Romney Veto Of $240,000 In Funding For Sex
Offender Registry Board. “Authorities would get an extra $240,000 this year to help track the state’s worst sex
offenders, under a measure approved Thursday by the House, whose Democratic leaders took issue with
criticism from Gov. Mitt Romney. The unanimous vote was an override of one of Romney’s vetoes … The vote
comes days after an investigation by the Boston Herald and WFXT-TV showed that Massachusetts has lost track
of about one-third of its worst sex offenders because of false or outdated information about their home and work
addresses.” (Ken Maguire, “House Approves Funds To Track Sex Offenders,” The Associated Press, 11/6/03)

 “The Senate Also Voted To Override A Romney Veto And Restore $240,000 To The Sex Offender
Registry Board.” (Steve LeBlanc, “House And Senate Debate Amendments To Supplemental Spending Plan,” The Associated
Press, 11/13/03)

In 2005, Romney Again Vetoed Registration Fee For Sex Offenders

Romney Vetoed Provision Requiring Sexual Offenders To Pay $75 Registration Fee. “Gov. Mitt Romney
signed the state’s $23.8 billion budget into law on Thursday, but vetoed about $110 million dollars in spending
that he deemed ineffective or wasteful. … Romney also got rid of a $75 fee that sexual offenders would have
been required to pay when they registered with the state.” (Theo Emery, “Governor Signs Budget, But Strips About $110
Million,” The Associated Press, 6/30/05)

State Legislature Upheld Romney’s Veto. “Lawmakers let stand Romney’s veto of a $75 fee that sexual
offenders would have been required to pay when they registered with the state. The administration said the fee
would have discouraged offenders from registering.” (“House And Senate Override Romney Budget Vetoes,” The Associated
Press, 7/20/05)

In November 2006, Romney Unilaterally Cut Sex Offender Registry Funds Before Leaving Office

Weeks Before Leaving Office, Romney Again Cut The Budget Of The Sex Offender Registry Board. “In a
final splash before leaving the corner office, Gov. Mitt Romney yesterday slashed $425 million from the current
year’s budget, saying the Legislature’s irresponsible spending left him no choice. … Included in Romney’s cuts
are several items that Lt. Gov. Kerry Healey -- who ran for governor on public safety issues -- would likely have
objected to prior to Election Day: funding for the state police crime lab, the Sex Offender Registry Board…”
(Rebecca Fater, “Romney Slashes State’s Spending,” The Berkshire Eagle, 11/11/06)

SOCIAL SECURITY

Romney “Adamantly” Opposes Raising Taxes For Social Security

132

Romney Said Tax Increases Are Not The Solution. “Mitt Romney told small business leaders in South Carolina
on Friday that tax increases are not the solution to Social Security.” (Meg Kinnard, “Romney Stresses Business Leadership
During S.C. Campaign Stop,” The Associated Press, 4/13/07)

 Romney: “The lever we don’t pull is the tax lever.” (Meg Kinnard, “Romney Stresses Business Leadership During S.C.
Campaign Stop,” The Associated Press, 4/13/07)

Romney “Adamantly” Opposes New Payroll Taxes. “Romney has been adamantly opposed to a new payroll
tax on businesses.” (Scott Helman, “Mass. Bill Requires Health Insurance,” The Boston Globe, 4/4/06)

As Presidential Candidate, Romney Is Not Advocating Clear Solution For Social Security

Romney Has Not Offered “Specific Proposal To Keep Program Solvent.” “Romney: Wants to reform Social
Security for younger workers. Did not offer specific proposal to keep program solvent. ‘It is past time for
Republicans and Democrats to come together and agree on a solution, instead of kicking the can down the road
for some future generation to solve.’” (“GOP Issues,” The State, 5/13/07)

Romney Called For Independent Panel To Fix Social Security. “Gov. Mitt Romney said Friday that because of
a partisan divide on the issue, it’s probably not a bad idea to turn Social Security reform over to an independent
panel similar to the one that recommended military base closings.” (Mike Glover, “Romney: Independent Panel May Best
Reform Social Security,” Associated Press, 8/25/06)

 Romney: “If there’s a partisan divide, then we may have to move to a (base closing) kind of approach to end
up with a solution that makes sure that we honor the expectations of our seniors, but also doesn’t put us in
the position where we can’t honor the promises that are being made to 30- year-olds and 40-year-olds.” (Mike
Glover, “Romney: Independent Panel May Best Reform Social Security,” Associated Press, 8/25/06)

Romney “Intrigued” By President Bush’s Reform Plan

Romney “Intrigued” By Robert Posen’s Plan For “Progressive Indexation” And Personal Savings
Accounts. “Aides say Romney is also intrigued by the ideas of Democrat Robert Pozen, chairman of Boston-
based MFS Investment Management and a member of Bush’s 2001 Social Security Commission. Pozen’s
“progressive indexation” plan would maintain the current Social Security benefit formula for the poor while
providing gradual benefit reductions for wealthier individuals. People who receive reduced benefits would be able
to put as much as 2 percent of their pay into private investment accounts, a favorite Bush idea.” (“Romney, Battered
Over Social Issues, Shifts Focus To Economics,” Salt Lake Tribune, 2/7/07)

 Romney Hired Architects Of President Bush’s Social Security Plan. “Many on Romney’s economic team
worked for President Bush, including Glen Hubbard, the former chairman of the president’s Council of
Economic Advisers, and Robert Posen, who helped craft the president’s failed 2005 plan to reform Social
Security with private accounts.” (Fox News’ “Special Report ,” 2/7/07)

Romney: Personal Savings Accounts “The Right Kind Of Ideas.” CNBC’s LARRY KUDLOW: “And just in the
last few seconds, sir, Bush’s ownership ideas, 401(k)s for retirement, IRA’s for Social Security, health savings
accounts for healthcare, are those things you would favor?” ROMNEY: “Those are the right kinds of ideas. Give
Americans the opportunities to save, to invest in an ownership society. Let them have participation in the future of
this country. And it’s an economic growth so--so we’re all pulling in same direction.” (CNBC’s “Kudlow And Company,”
3/22/06)

Romney Saw Social Security As A Political Opportunity. “Romney said governors want Washington to tackle
problems created by the looming baby boom retirement and growing pressure on programs for the poor. … ‘We
have an enormous age wave about to hit our safety net programs, our senior programs … How do we deal with
that? Now is a political opportunity.’” (Dan Balz, “GOP Governors Want A Seat At The Table,” The Washington Post, 11/22/04)

Romney Now Weighing “Deep Cuts” To Social Security After Opposing Any Cuts During ‘94 Senate Race

In 1994, Romney Promised No Cuts To Social Security. “In 1994, when Mitt Romney ran for U.S. Senate, he
said he would not cut Social Security to meet his goal of balancing the federal budget.” (ABC’s “This Week,” 10/16/94)

 Romney: “I don’t think you go back and rewrite the contract the government has with people who’ve retired.”
(ABC’s “This Week,” 10/16/94)
133


Running For President In 2007, Romney Is Now Reportedly “Weighing Deep Cuts” To Social Security.
“[Romney] is weighing deep cuts in automatic-benefit programs such as Medicare and Social Security.” (Heidi
Przybyla, “Romney, Battered Over Social Issues, Shifts Focus to Economics,” Bloomberg News, 2/7/07)

Romney Considered Cutting Fixed Income Retirement For Workers. “Instead of the traditional pension
program that state-government employees, firefighters, teachers, and municipal workers rely on -- a program that
traces its roots to 1910 -- Romney proposes one modeled after the 401(k) plans popular in the private sector.
Romney’s staff says he wants to bring a more entrepreneurial spirit to the government work force, enticing people
who aren’t looking for a job for life and would be able to take their 401(k) contributions with them when they move
between the private and public sectors.” (Kimberly Blanton, “Massachusetts Governor May Eliminate Fixed Retirement Income for
Workers,” The Boston Globe, 3/30/03)

Romney Has Attracted Criticism For His Changing Positions On Social Security. “From abortion, to gay
marriage, to gun rights, to tax cuts, to immigration reform, to Social Security -- even his own political heroes --
Romney has switched his positions on just about every issue in this campaign.” (Heidi Przybyla, “Romney, Battered Over
Social Issues, Shifts Focus To Economics,” Bloomberg News, 2/7/07)

VETERANS ISSUES

Shortly After Taking Office, Romney Proposed Cutting State Hiring Preferences For Veterans And
Merging Veterans Care Facilities Into Jurisdiction Of Social Welfare Administrators

In One Of His Earliest Moves In Office, Romney Proposed Cutting State Hiring Preferences For Veterans
And Aligning Veterans Services With State Welfare Programs. “Proposals by Gov. Mitt Romney to reduce
hiring preferences for veterans and align veterans services with state welfare programs have triggered a harsh
reaction among veterans groups and their supporters. ‘A veteran should not have to sit in a welfare line waiting for
help,’ said Paul G. Keough, chairman of the Unified Veterans of Massachusetts. He criticized administration
proposals to have veterans programs administered by the Executive Office of Health and Human Services and
Department of Elder Affairs.” (John J. Monahan, “Veterans Groups Critical Of Romney Plan,” Telegram & Gazette [Worcester, MA],
3/18/03)

 Romney Proposed Putting Veterans’ Care Facilities In Same Agency Handling Welfare Services.
“Another provision of the governor’s reforms would place operation of the Soldiers’ Homes in Chelsea and
Holyoke with the same agency that handles welfare services for the disabled.” (John J. Monahan, “Veterans Groups
Critical Of Romney Plan,” Telegram & Gazette [Worcester, MA], 3/18/03)

 Romney Planned To Eliminate Veterans Hiring Preference And Replace It With A Point System. “The
preference puts veterans at the top of civil service hiring lists for many state and municipal jobs, including
police and fire positions. Mr. Romney has proposed eliminating the preference and instead giving veterans
civil service exam bonus points. Disabled veterans would get five extra points and other veterans would
receive two bonus points on the tests.” (John J. Monahan, “Veterans Groups Critical Of Romney Plan,” Telegram & Gazette
[Worcester, MA], 3/18/03)

State AARP President Called Romney Plan To Combine Veterans Affairs With Elder Affairs
“Incomprehensible.” “Gov. Mitt Romney’s plan to restructure the Executive Office of Elder Affairs was expected
to draw pointed criticism today at a state forum in Worcester. … The move to combine elder affairs with veterans
affairs is ‘incomprehensible,’ said Walt Sanders, president of AARP Massachusetts.” (Sue Scheible, “Elder Affairs
Advocates Oppose Romney Plan,” The Patriot Ledger [Quincy, MA], 3/14/03)

 AARP President: Proposal Did Not Make Sense. “Combining veterans services with elder affairs does not
make sense because ‘not all veterans are elders and not all elders are veterans,’ Sanders said. ‘If your
intention is to truly eliminate the current confusing maze of bureaucracy, this runs completely counter to that
goal.’” (Sue Scheible, “Elder Affairs Advocates Oppose Romney Plan,” The Patriot Ledger [Quincy, MA], 3/14/03)

2003: Legislators Overturned Romney Veto Of Tens Of Thousands In Funding For Veterans Cemetery.
“[T]he Legislature last night restored more than $150 million of the $201 million cut by Gov. Mitt Romney. …
Among the vetoes the Legislature overrode yesterday, on what was the final day of formal deliberations before
lawmakers broke for a summer recess, were: … $86,018 for the Agawam-Winchendon Veterans Cemetery.” (John
Monahan, “Most Romney Vetoes Restored,” Telegram & Gazette [Worcester, MA], 7/18/03)

134

Romney Tried To Cut $165,000 From Veterans Outreach In 2003. (Massachusetts Budget And Policy Center, “A Review
Of The FY 2004 Vetoes And Overrides,” www.massbudget.org, 7/28/03)

 Romney Spokesman: “There were line-item reductions in the veterans’ budget, as there were in all areas of
state government, but these reductions did not directly impact veterans’ services …” (Yvonne Abraham, “Democrats
Slam Romney On Tunnel Name,” The Boston Globe, 10/16/03)

Under Romney, State Sought To Increase User Fees For Long-Term Care At The Chelsea Soldiers’ Home.
“Gov. Mitt Romney is vehemently opposed to raising taxes. Yet new fees proposed in his budget would hit a
broad spectrum of people … The changes include … increasing user fees for long-term care at the Chelsea
Soldiers’ Home.” (Jennifer Fenn, “Romney Budget Raises Fees, Which Democrats Say Are Taxes In Disguise,” Lowell Sun, 2/28/03)

 The Chelsea Soldiers’ Home/Quigley Memorial Hospital Is A State Run Veterans’ Hospital With Acute,
Long Term Care And Domicilary Units. “Eligible veterans are provided a dorm style room with full meal
service. As veterans need more care, they may progress to supervised programs with 24 hour nursing care or
may become eligible for Skilled Nursing Care placement on one of the eight inpatient skilled nursing units.”
(MA Commission on End Of Life Care, www.endoflifecommission.org, Accessed 2/9/07)

Romney Staff Spent Tens Of Thousands On New Televisions And Cross-Country Travel While “Making
Funding Cuts To Programs Including Ones Serving Veterans…” “Governor Mitt Romney’s staff spent tens of
thousands of taxpayer dollars on cross-country travel and new televisions, VCRs and furniture for their offices in
their first six months in office, according to a published report. … Romney’s aides spent almost $40,000 on new
office equipment and more than $22,000 on travel … The spending came as Romney was making funding cuts to
programs including ones serving veterans, the mentally disabled and the elderly.” (“Romney’s Staff Spent Thousands Of
Tax Dollars On New Office Equipment, Travel,” The Associated Press, 11/16/03)

Romney Tax On Being Blind Was Opposed By Veterans Groups. “It now costs to be blind in Massachusetts.
The state’s approximately 35,000 blind and legally blind residents must now pay $10 annually for a certificate of
blindness and $15 every four years for a blind identification card. … The fees originated in February, in Gov. Mitt
Romney’s budget proposal for fiscal 2004. … ‘It’s just another form of taxation,’ said Stephen Matthews, a
national service officer for the Blinded Veterans Association, who has lobbied against the fees. ‘They’re burdening
the people who can least afford it.’” (Shaun Sutner, “Advocates Fight Fees For The Blind,” Telegram & Gazette [Worcester, MA],
8/5/03)

 Veteran Speaks Out: “I Just Don’t Understand This Foolishness.” “Previously, both the certificates and
the ID cards were given out free to the 35,000 blind people living in Massachusetts. Romney proposed the
new fees and the Legislature built them into the budget that took effect July 1. John Ray, an 85-year-old Army
veteran of three wars who is blind, called the new fees ‘an amateurish act’ to bleed residents. ‘I just don’t
understand this foolishness,’ he said.” (Elizabeth W. Crowley, “Pols Reconsidering Fee Hikes,” The Boston Herald, 8/2/03)

1994 Romney Remark On Homeless Veterans “Not One Of The Brighter Moments Of His Campaign.”
“From all accounts, Mitt Romney’s visit to that veterans shelter just behind Boston’s City Hall Plaza was not one of
the brighter moments of his campaign for US senator. When director Ken Smith told him that one of the things the
shelter needed was fresh milk, Romney replied jokingly that maybe the veterans should be taught how to milk
cows.” (Michael Kenney, “Romney Comment Leads To Milk Run,” The Boston Globe, 11/27/94)




135

BUSINESS RECORD

EXECUTIVE SUMMARY

 Romney spent most of his business career as CEO of private equity firm Bain Capital – as of June 2007 he
maintained an investor’s stake in the company.

 Bain Capital has been criticized for relentless focus on bottom line at expense of workers and jobs.

 Romney describes himself as a “business legend” in his campaign ads and once said of himself: “I’m basically
in the investor’s Hall of Fame.”

 Bain Capital and Bain & Co. employees donated at least $171,000 to Romney’s presidential campaign in Q1
2007 and gave tens of thousands more in support of his previous political activities.

 Bain Capital financed 1988 buyout with junk bonds issued by Drexel Burnham – when SEC filed charges
against the firm and CEO Michael Milken, Bain Capital maintained their business relationship; Romney later
reminisced about “the glorious days of Drexel Burnham.”

 In 2004, Bain & Co. received a multi-million dollar contract from the National Iranian Oil Company.

 Romney sat on board of directors of Bain portfolio company Damon Clinical Laboratories, which in 1996 was
fined over $100 million for Medicare fraud committed during Romney’s tenure.

 Bain Capital owned company named Ampad that purchased an Indiana paper plant, fired its workers and
offered to bring them back at drastically reduced salary and benefits – the firings became an issue in the 1994
Senate race when workers blamed Romney for their situation and appeared in Kennedy campaign ads.

 After Romney became governor, Bain Capital teamed up with Chinese appliance maker Haier Group in 2005
in effort to purchase Newton, IA-based Maytag Corp. and send jobs overseas.

 At least two Bain Capital companies – Stream International and Modus Media – focused on outsourced
technical support services, expanding facilities abroad while contracting operations in the United States.

 Bain Capital operated steel company called GS Industries which went bankrupt in 2001 after years of labor
strife, closing a plant in Kansas City and laying off over 700 workers.

GENERAL BAIN OVERVIEW

Romney Remains An Investor In Bain Capital, The Private Equity Firm He Funded In 1984 – Partners
Running The Company Today Were Brought On Board During Romney’s Tenure

As Of June 2007, Romney “Remains An Investor In Bain Capital.” “Mr. Romney, who remains an investor in
Bain Capital, said he had not been involved in those decisions but acknowledged that such payments became
part of the buyout business ‘very early on.’” (David D. Kirkpatrick, “Romney’s Political Fortunes Tied To Riches He Gained In
Business,” The New York Times, 6/4/07)

“Romney Started Bain Capital In 1984, Made His Fortune There, And Ran It Before Moving Into The
Governor’s Office Four Years Ago.” (Brett Arends, “American Workers’ Bane,” Boston Herald, 6/22/05)

 Current Bain Capital Managing Partner Josh Bekenstein Founded Company With Romney In 1984.
“Mr. Bekenstein joined Bain Capital at its inception in 1984. He has been a Managing Director since 1986.
Prior to joining Bain Capital, Mr. Bekenstein spent several years at Bain & Company where he was involved
with companies in a variety of industries.” (Bain Capital Website, www.baincapital.com, Accessed 2/26/07)

Romney Ran Day-To-Day Operations At Bain Capital From Its Inception In 1984 Through Early 1999, When
He Left To Assume Control Of The Salt Lake Winter Games. “When Mr. Romney finally set up shop just
across the hall from Bain consulting in 1984, his initial plan centered on providing venture capital – seed money –
136

for ideas spun off by Bain consultants. … By the time Mr. Romney left the firm in 1999, the investments it had sold
off had made enough money to deliver an average annual return that amounted to as much as 100 percent before
fees, several of its investors said.” (David Kirkpatrick, “Romney Political Fortunes Tied To Riches He Gained In Business,” The New
York Times, 6/4/07)

Romney Served As CEO Of Bain Capital Through August 2001, Even Though He No Longer Ran Daily
Operations. “Although he gave up running day-to-day operations at the venture capital firm in order to head the
Salt Lake Winter Olympics, he remained CEO and held his financial interest in the company through August
2001.” (Stephanie Ebbert and Yvonne Abraham, “Camps Spar Over Romney Word Choice,” The Boston Globe, 10/31/02)

Bain Capital Is “Remains Romney’s Creation” As Over Three-Quarters Of Its Partners Came On Board
During Romney’s Tenure, Joining The “Corporate Culture … He Nurtured Over 17 Years.” “Bain Capital
remains Romney’s creation. The corporate culture is one he nurtured over 17 years. A Herald analysis of the
firm’s leadership shows that more than three quarters of the managing partners joined when he was the boss.”
(Brett Arends, “American Workers’ Bane,” Boston Herald, 6/22/05)

Romney: “I’m Basically In The Investors’ Hall Of Fame.” (John McElhenny, “Romney, O’Brien Spar At Gubernatorial
Debate,” The Associated Press, 10/25/02)

Romney Relies On Employees At Bain Capital And Bain & Co. For Sizeable Campaign Contributions

Employees At Bain Capital And Bain & Co. Donated Over $171,000 To Romney’s Campaign In The First
Three Months Of 2007. According to the Center for Responsive Politics, persons affiliated with Bain Capital
donated at least $99,800 to Romney’s campaign in the first quarter of 2007 and he received another $71,250 from
employees of Bain & Co. (Center For Responsive Politics Website, www.opensecrets.org, Accessed 6/15/07)

“Republican Mitt Romney Received Almost $100,000 From Staff At Bain Capital, The Private Equity Group
That The Former Governor Of Massachusetts Founded.” (Alex Barker, “New Tycoons Are Taking A Not Entirely Altruistic
Interest,” Financial Times, 5/30/07)

Bain Executives Also Donated Tens Of Thousands Of Dollars To Support Romney’s Pre-Presidential
Campaign Activities. “[R]ecords of Mr. Romney’s political action committees indicate that he also accumulated a
valuable Rolodex during his years at Bain. Executives of Bain Capital and its sister firm, Bain Consulting,
contributed more than $64,000 over the last two years to Mr. Romney’s federal political action committee,
Commonwealth PAC, and in 2002 they gave more than $14,000 to his campaign for governor.” (David D. Kirkpatrick,
“Romney Reaps $20 Million To Top G.O.P. Rivals,” The New York Times, 4/3/07)

Romney’s Background As CEO And Corporate Dealmaker Seen As Influence On His Political Tactics

Romney’s “Flip-Flops And Business Success” Are Connected Because “Abandoning Deeply Held
Attitudes And Reversing Positions Are Job Requirements” For CEOs. “So, how are Romney’s flip-flops and
business success connected? People suspect, perhaps correctly, that Romney really doesn’t believe all the things
he’s saying. … [S]uch hypocrisy, which turns off voters, is something like a job requirement for CEOs. In the
executive suite, abandoning deeply held attitudes and reversing positions are job requirements. How often have
you seen a CEO proclaim that a struggling unit is not for sale, only to put it on the block a few months later? A
CEO will praise a product to the skies one day and then cancel it the next. He’ll boast, sincerely, that his company
is No. 1 in the industry and then, when he quits the next day to run a rival, claim that the new firm is tops.” (Daniel
Gross, “The CEO Candidate,” Slate.com, 2/26/07)

“Good CEOs … Devise New Business Strategies And Business Plans To Cope With Changing Market
Conditions.” “These business flips are fine, because in the corporate world, people don’t confuse advocacy of a
company’s strategy or products and services with personal honor or integrity. … Good CEOs don’t simply stake
out public positions and stick to them for 20 years. They devise new business strategies and business plans to
cope with changing market conditions.” (Daniel Gross, “The CEO Candidate,” Slate.com, 2/26/07)

Romney “Doesn’t Run In Elections, He Competes In Markets.” “It is clear that Romney approaches politics
not as a crusade but as a business case study. He doesn’t run in elections, he competes in markets. In 1994, the
former management consultant knew his market. … Today, Romney correctly recognizes that what is appropriate
for one market (Massachusetts voters) clearly is not appropriate for another market (Republican-primary voters).”
(Daniel Gross, “The CEO Candidate,” Slate.com, 2/26/07)

137

Romney’s Business Acumen Was “Forged In The Often-Overheated 1980s.” “An examination of Romney’s
nearly 20-year business career in Boston – as a consultant, venture capitalist, entrepreneur and chief executive –
shows a man whose uncanny ability to smell a deal, take a risk and turn a profit was forged in the often-
overheated 1980s.” (Mitchell Zuckoff and Ben Bradlee Jr., “Romney’s Business Record Gives Larger Picture,” The Boston Globe, 8/8/94)

As CEO, Romney “Insisted On Having Almost Dictatorial Powers. … That Was Essential.” “The Boston-
based venture capitalist likes to be in control. ‘(At SLOC) I don’t have the kind of control I’m used to in the
business world,’ he said. ‘When I was involved in (the resurrection of the beleaguered international firm Bain
Consulting), I insisted on having almost dictatorial powers. … That was essential.’” (Lisa Riley Roche, “Mitt Exemplifies
The New Openness Sought For SLOC,” Deseret News, 2/12/99)

Former Business Colleague Said Romney Possessed “Ability To Identify People’s Insecurities And
Exploit Them To His Own Benefit.” “[S]ome colleagues found Romney to be manipulative. Romney had an
‘ability to identify people’s insecurities and exploit them to his own benefit,’ says a source who worked with
Romney but refused to be quoted for ‘fear of retribution.’ This source says that Romney would vary bonuses
among his partners just enough to put people on edge, giving $3.1 million to one, $3 million to another and $2.9
million to another.” (Evan Thomas et al, “Is Mitt Romney Ready For Prime-Time Politics?” Newsweek, 4/16/07)

Romney, On His Business Record: “I Won The Lottery … I Was Absolutely In The Right Place At The
Right Time.” “Romney said he can afford to do this because ‘I won the lottery. I got into something called venture
capital just when the stock market went from, I don’t know, a couple thousand to almost 10,000. I was absolutely
in the right place at the right time.’” (Lisa Riley Roche, “Mitt Exemplifies The New Openness Sought For SLOC,” Deseret News,
2/12/99)

Under Romney’s Leadership, Bain Capital Had History Of Relentless Focus On Bottom Line, Improving
Corporate Profits At Expense Of Local Workers

Under Romney’s Stewardship, “Bain Left Companies In Bankruptcy Or Near Collapse After Selling Off Its
Interests And Made Huge Profits.” “Romney was tremendously successful as CEO of Bain Capital and he
helped build many companies. But his work also involved controversial ventures … that resulted in downsizing or
layoffs. In some cases, Bain left companies in bankruptcy or near collapse after selling off its interests and made
huge profits. Some companies Bain invested in, such as American Pad & Paper of Dallas, Stage Stores of
Houston, and Dynamic Details (DDI) of Orange County, Calif., crashed after Bain went public with the company’s
stock, and then immediately sold its own interest.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston
Globe, 10/10/02)

 Bain Culture: “Possessed By A Mission To Increase The ‘Total Economic Value’ Of Their Clients.”
“Notoriously secretive about itself and its work for clients, Bain has over the years been labeled the ‘KGB of
Consulting’ … Bain consultants seem possessed by a mission to increase the ‘total economic value’ of their
clients. Like religious zealots, they single-mindedly dedicate themselves to improving their customer’s
competitive position. Business is a holy war that the client must win and the competition must lose.” (Nancy
Perry, “A Consulting Firm Too Hot To Handle?” Fortune, 4/27/87)

“Bainies” Were Known For Company Songs And Secrecy, Compared To KGB. “Bain & Co. also was known
for the strict discipline, team spirit - including company songs - and relentless work ethic of its troops. With their
uniforms of white shirts and red power ties, the clean-cut Bain consultants were known as ‘Bainies,’ a knockoff of
the term ‘Moonies’ for followers of Rev. Sun Myung Moon. Bain & Co. also was known for its secrecy, earning
sobriquets like ‘the KGB of consulting.’” (Mitchell Zuckoff and Ben Bradlee Jr., “Romney’s Business Record Gives Larger Picture,”
The Boston Globe, 8/8/94)

 Code Names And More: “From the beginning, Bain cultivated a mystique around the secretive firm, which
was once dubbed ‘the KGB of consulting.’ Partners didn’t carry business cards and referred to clients by code
names. … And it inculcated in the recruits such a sense of mission that young consultants became known as
Bainies, a reference to the Unification Church’s Moonies.” (Paul Hemp, “Did Greed Destroy Bain & Co.?” The Boston
Globe, 2/26/91)

Bain Got “Their Hands Deep into The Trousers Of A Company,” According To One Executive. “How could
a respected, albeit highly aggressive, firm like Bain have left itself open to being tainted by the scandalous
behavior of a client? The answer may lie in Bain’s approach to business: ‘They get their hands deep into the
trousers of a company,’ says an executive who knows the firm well.” (Nancy Perry, “A Consulting Firm Too Hot To Handle?”
Fortune, 4/27/87)
138


 “Like Religious Zealots … Business Is A Holy War That The Client Must Win And The Competition
Must Lose.” “Notoriously secretive about itself and its work for clients, Bain has over the years been labeled
the ‘KGB of Consulting,’ or a ‘Moonie commune’ run by the ‘Reverend’ Bain. Bain consultants seem
possessed by a mission to increase the ‘total economic value’ of their clients. Like religious zealots, they
single-mindedly dedicate themselves to improving their customer’s competitive position. Business is a holy
war that the client must win and the competition must lose.” (Nancy Perry, “A Consulting Firm Too Hot To Handle?”
Fortune, 4/27/87)

 “Stand Aside, Asshole. Here We Come.” “The real problem for Bain & Co., though, may be the firm’s
tendency to alienate and weaken lower-level managers at the companies where it works. … Notes the
chairman of another management consulting firm: ‘Their product is brilliant. It’s the package that has been a
problem. Five million Bainies saying, ‘Stand aside, asshole. Here we come.’” (Nancy Perry, “A Consulting Firm Too
Hot To Handle?” Fortune, 4/27/87)

Romney “Often” Tapped Bain Partners For Management Roles In Bain Capital-Funded Companies,
Raking In Millions In Fees For Bain & Co. “Romney still works very closely with his old company, often hiring
Bain partners to take over management of the outfits he invests in. Last December Bain Capital Partners paid $2
million for a 40% stake in GS Roofing Products, a division of GenStar Inc., which lost in excess of $10 million in
1986. The company, under direction of majority stockholders Berkshire Partners, immediately hired – you
guessed it – Bain & Co. to try to stem the losses. Fees so far: close to $2 million.” (Laura Jereski, “Putting It On The Line,”
Forbes, 11/30/87)

Romney Blasted Critics Of Bain Management Style For “Naivete,” Claiming “There Is Nothing Wrong With
Companies … Trying To Make Money” And “This Is Not Fantasy Land.” “Romney said yesterday that layoffs
can be a part of doing business. ‘This is not fantasy land,’ said Romney. ‘This is the real world and in the real
world there is nothing wrong with companies trying to compete, trying to stay alive, trying to make money.’ …
‘Clearly there is a naivete which sometimes exists in people who have not been in the real world, working with
real businesses with real competition trying to keep jobs and businesses alive,’ Romney said. ‘They live in a
never-never land where not all businesses get better, not all businesses grow.’” (Frank Phillips, “Romney Firm Tied To
Labor Fight,” The Boston Globe, 9/23/94)

Romney Defended Layoffs At Bain Capital-Controlled Indiana Paper Plant In 1994. “In July 1994, Ampad [a
paper company Bain Capital controlled] bought an Indiana paper plant, fired the existing workers, and gave most
employees their jobs back at reduced wages and benefits. Even though Romney was on leave from Bain for the
campaign, the workers came to Massachusetts and dogged his campaign. Romney initially tried to justify the
layoffs, defending them as necessary in corporate restructuring.” (Stephanie Ebbert, “Romney Seeks High Office With
Confidence, Pedigree,” The Boston Globe, 8/14/02)

Bain Capital Called “Bully On The Block,” Blamed For Closing Of Kansas City Steel Plant In 2002. “Out-of-
work steelworkers in Kansas City, for example, blame Romney and Bain Capital for decisions that led to last
year’s bankruptcy of a steel mill that opened its doors in 1888. Bain bought the operation, GST Steel Co., in 1993.
Workers said the new owners cleaned house and brought in an inexperienced management team. Dan Misel,
who worked at GST Steel for 35 years, said Bain came in ‘like the bully on the block,’ assuming its managers
knew how to run the operation better than anyone already in place. … In 1997, two years before Romney left Bain
to run the Winter Olympics, the Kansas City plant endured its first strike in four decades. After a 10-week walkout,
union officials said they offered to work with managers to improve the plant’s competitiveness, but that the Bain-
imposed managers weren’t interested. … When the plant closed earlier this year, amid a generally gloomy climate
for US steel companies, workers lost severance packages and health insurance coverage.” (Thomas Farragher and
Scott Bernard Nelson, “Business Record Helps, Hinders Romney,” The Boston Globe, 10/24/02)

BAIN CAPITAL AND DREXEL BURNHAM

Romney Used Drexel Burnham Junk Bonds To Finance 1988 Leveraged Buyout, Right Around The Time
SEC Officials Were Taking Formal Action Against The Company

Bain Capital Financed Mid-1988 Deal With Junk Bonds Issued By Drexel Burnham And Notorious
Financier Michael Milken. “Sometimes, when Bain Capital was looking to make a deal, the bulk of the money
came not from its investors but from other sources, such as junk bonds. In 1988, for instance, Bain Capital
decided to buy two Texas department store chains, Bealls and Palais Royale, in a deal valued at $300 million. To
fund the purchase, Bain sought out Drexel Burnham corporate financiers, based in Boston, who were working
139

under junk bond impresario Michael Milken. Romney and the Bain Capital partner who oversaw the deal, Joshua
Bekenstein, said they never dealt with Milken.” (Mitchell Zuckoff and Ben Bradlee Jr., “Romney’s Business Record Gives Larger
Picture,” The Boston Globe, 8/8/94)

Two Months After Hiring Drexel, The SEC Filed Extensive Complaint Alleging Insider Trading And Market
Manipulation – Romney Defended The Decision To Keep Using Drexel In Transaction. “On Sept. 7, 1988 -
roughly two months after Bain Capital hired Drexel to issue junk bonds - the Securities and Exchange
Commission filed a 184-page complaint against Drexel, Milken and others alleging insider trading schemes,
manipulation of stock prices and other violations of federal securities laws. Bain Capital was put in the position of
trying to close a deal with junk bonds from a company being sued by the SEC. Romney and Bekenstein defended
their decision to hire Drexel before the SEC suit – at a time when rumors of the investigation were rife on Wall
Street – as well as after the suit was filed.” (Mitchell Zuckoff and Ben Bradlee Jr., “Romney’s Business Record Gives Larger
Picture,” The Boston Globe, 8/8/94)

 Romney: “We did not say, ‘Oh my goodness, Drexel has been accused of something, not been found guilty.
Should we basically stop the transaction and blow the whole thing up?’” (Mitchell Zuckoff and Ben Bradlee Jr.,
“Romney’s Business Record Gives Larger Picture,” The Boston Globe, 8/8/94)

Romney And Bain Capital Continued Using Drexel Burnham To Refinance Bonds Well After SEC Suit Was
Initiated. “Romney and Bekenstein said their main concern was whether the suit would damage Drexel so badly
that it would be unable to sell the bonds for Bain Capital. As it turned out, the bonds sold quickly. Bain Capital
then refinanced the bonds, also with Drexel, in mid-1989. Of 59 Bain Capital deals, only one involved Drexel.”
(Mitchell Zuckoff and Ben Bradlee Jr., “Romney’s Business Record Gives Larger Picture,” The Boston Globe, 8/8/94)

Romney Later Reminisced About “The Glorious Days Of Drexel Burnham,” Saying “It Was Fun While It
Lasted.” “The deal that jump-started Bain’s business came along in 1986, a $200 million buyout of Accuride
Corp., the wheel and rim manufacturing unit of Firestone Co., Phoenix. Bain financed the deal with just $5 million
of its own equity and borrowed the rest. Just 18 months later, Bain sold Accuride to Phelps Dodge Co. for $320
million. Its return on its investment: $130 million. ‘That was in the glorious days of Drexel Burnham,’ Mr. Romney
recalled. ‘It was fun while it lasted, but fortunately, it came to an end.’” (Jennifer Goldblatt, “Boston Buyout Firm Cashes In by
Adding Value,” The American Banker, 12/23/97)

BAIN & CO. AND IRAN

Bain & Company Was Hired By Iran’s National Oil Company In 2004 To Conduct Efficiency Study

In 2004, Bain & Co.’s Italian Branch Was Hired By National Iranian Oil Company To Conduct Study On
“How To Make The Bureaucratic State Company More Efficient.” “[A]s oil minister, Bijan Namdar Zanganeh,
an ally of powerful former president Ali Akbar Hashemi Rafsanjani, in the late 1990s pushed through billions of
dollars in agreements with Shell, France’s Total, Italy’s Eni, Schlumberger and Halliburton to develop large and
technically challenging projects, such as Iran’s huge South Pars field, which is believed to hold 7% of the world’s
natural gas supply. … [National Iranian Oil Company] once tried to put on more of a Western face. Zangeneh
planned to streamline it along the lines of, say, Shell, and even hired Bain & Co. Italy to conduct a $2.3 million
study on how to make the bureaucratic state company more efficient. Bain & Co., headquartered in Boston, says
its independent Italian unit did the work and no U.S. sanctions were violated.” (Daniel Fisher, “Running Dry,” Forbes,
7/3/06)

 Bain & Company Italy – “The Italian Branch Of Bain & Company” – Opened In 1989 And Has Grown
“To Become One Of Bain’s Leading Offices Worldwide.” “Bain & Company Italy, the Italian branch of Bain
& Company, opened in Milan in 1989. Over the years, Bain & Company Italy has grown to become one of
Bain’s leading offices worldwide and the leader in strategic management consulting in Italy. Today Bain &
Company Italy has 350 professionals and intends to further develop its success. Being part of an international
group allows us to manage clients and projects at a multinational level, to develop practices and global
themes, and to access information, research and supporting databases from Bain’s worldwide network. Our
offices share Bain’s approach, values and experiences.” (Bain & Co. Website, www.bain.com, Accessed 2/22/07)

 Bain & Company Italy Listed In “Contact Us” Section Of Main Bain & Company Website. (Bain & Co.
Website, www.bain.com, Accessed 2/22/07)

Romney Served A Stint As CEO Of Bain & Co. In The Early 1990s. “Bain & Co. said that it completed a
financial restructuring and transfer of ownership from eight top-ranking partners to 75 senior partners. Concurrent
140

with the transaction, W. Mitt Romney will become chief executive officer of the Boston-based international
management consulting firm. Romney has provisionally held that position since January.” (Paul Hemp, “Restructure At
Bain Is Completed,” The Boston Globe, 6/19/91)

DAMON CLINICAL LABORATORIES

Romney Was Board Member Of Company Fined Over $100 For Medicare Fraud – At The Time, It Was The
Largest Criminal Fine For Health Care Fraud In History

Romney Sat On Board Of Damon Clinical Laboratories, A Bain Capital Portfolio Company Fined Nearly
$120 Million In 1996 Due To Medicare Fraud. “A Needham clinical laboratory agreed yesterday to pay $119
million in criminal and civil fines after pleading guilty to charges that it defrauded the nation’s Medicare system by
seeking reimbursements on millions of dollars worth of unnecessary blood tests. … Damon Clinical Laboratories
Inc. admitted it tried to boost its profits by submitting the unnecessary tests. The company, the government said,
misled doctors into ordering the tests, ensuring that they would be covered by Medicare, the federal health care
program for the elderly.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)

 At The Time, Largest Criminal Fine In Massachusetts History: “The settlement … would mark the largest
criminal fine ever levied in Massachusetts.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe,
10/10/96)

 At The Time, Largest Health Care Fraud Criminal Fine In History: “The $35.3 million criminal fine in the
Damon case, one piece of the $119 million total settlement, is the largest ever recovered in a health care
fraud case.” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)

Romney Was On Damon’s Board Of Directors While The Fraud Took Place – He Initially Claimed He Was
Unaware Of Any Criminal Investigation. “Mitt Romney, former Republican challenger to US Sen. Edward M.
Kennedy, who was a member of Damon’s board, said he was unaware of any investigation. … Romney said that
[Damon’s then-CEO Robert] Rosen told the board in about 1992 ‘that all current practices at the company were
now in conformity with government regulations and that in the past there may have been practices which would
not be deemed appropriate.’” (Kimberly Blanton, “Needham Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)

 “Made Large Profits … From A Criminal Scheme To Fraudulently Bill The Federal Medicare System…”
“[Romney] and his venture capital firm made large profits from the 1993 sale of a Needham medical testing
company whose robust revenues were generated in part from a criminal scheme to fraudulently bill the
federal Medicare system for unnecessary blood tests.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The
Boston Globe, 10/10/02)

 “Pure And Simple … Corporate Greed Run Amok.” “Damon Corp. pleaded guilty in 1996 to a federal
conspiracy charge of defrauding the government of $25 million between 1988 and 1993. It paid a record $119
million fine and penalty for a scheme that then-US Attorney Donald Stern labeled ‘a case, pure and simple, of
corporate greed run amok.’” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)

1993: Immediately Following Acquisition By Corning, Damon Closed Plant In Needham Heights, Laid Off
115 Massachusetts Workers. “Republican businessman Mitt Romney … helped direct a Massachusetts medical
diagnostics company toward a merger that resulted in the permanent closure of a Needham Heights plant and
layoffs of about 115 Massachusetts workers. Damon Corp. was headquartered in Massachusetts for more than
30 years until it was purchased by Corning Inc. in 1993 and the Needham facility was closed. … The day after the
merger with Corning was completed, the new company notified the Massachusetts Department of Employment
and Training that it was permanently closing the Needham plant and laying off about 115 people.” (Meg Vaillancourt,
“Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)

 Romney “Feared” The Massachusetts Layoffs Would Come, But Voted To Approve Deal Anyway. “As
a board member, Romney pointed out he had a legally binding ‘fiduciary responsibility’ to get the best deal he
could for the shareholders, though he acknowledged that at the time he feared Corning would close down the
plant and lay off the Massachusetts employees. … No one met Corning’s tender offer, which Romney
described as ‘stunning.’ He said he voted to accept the offer, as did the vast majority of other shareholders.
‘There was nothing I could do.’” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)

As A Gubernatorial Candidate, Romney Claimed He Helped “Uncover” And Stop The Fraud At Damon.
“[R]omney said Thursday he helped uncover the fraud at Damon and hired an outside law firm to investigate it.
141

‘We took action based on what was told to us by the law firm,’ Romney said …” (Ron DePasquale, “Romney Downplays
Report He Profited From Firm Tied To Fraud,” The Associated Press, 10/10/02)

 Romney Tries To Take Credit: “Mr. Romney said yesterday that he aided in uncovering and stopping the
fraud one year before the sale. … Mr. Romney said board members, including himself … had started an
inquiry that led to the disclosure.” (John Monahan, “Ex-Presidents Stump For O’Brien, Romney,” Telegram & Gazette
[Worcester, MA], 10/11/02)

 “Romney Has Said He Helped Uncover The Fraud But Never Reported It To Authorities.” (Tom Benner,
“O’Brien Sees Savings Possible In Budget,” The Patriot Ledger [Quincy, MA], 10/23/02)

Federal Investigators Rebuffed Romney’s Claims, Saying The Fraud Continued Until Bain And Other
Owners Sold Damon To Corning In 1993. “A spokesman for Romney, Eric Fehrnstrom, said Thursday that
Romney and other board members helped uncover the fraud at Damon after similar fraudulent practices were
found at another laboratory in 1992. … But court records, including statements by prosecutors and by Damon
officials, indicated that the fraud continued until Corning purchased the firm. Prosecutors gave Corning sole credit
for cleaning up the fraud.” (“Report: Mass. Candidate Romney Profited From Sale Of Firm That Later Admitted Medicare Fraud,” The
Associated Press, 10/10/02)

 “Federal Officials … Have Disputed Mr. Romney’s Claim That He Helped Stop And Correct The
Practice.” “Mr. Romney was a director from 1990 to 1993 and said he and the board of directors learned of
the problem in 1993 when its own legal staff investigated the billings. Federal officials who prosecuted the
case have disputed Mr. Romney’s claim that he helped stop and correct the practice, saying the company did
not report the fraud to federal authorities and the practice was stopped by the company’s new owners after it
was sold.” (John Monahan, “Romney Talks To Crowd At Fallon,” Telegram & Gazette [Worcester, MA], 10/12/02)

 “No Corrective Action Was Taken When Romney Was On The Board…” “In the 1996 settlement, records
show the [fraud] scheme was carried out between 1988 and the time that Damon was sold, indicating that no
corrective action was taken when Romney was on the board and served as a member of its strategic planning
committee.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)

 Officials Gave Corning Sole Credit For Cleaning Up Damon’s Fraudulent Practices. “[C]ourt documents
– and Damon’s admission – reveal that the fraudulent activity was occurring right up until the time Corning
purchased the company from Bain and other owners. … [D]amon’s filings with the federal Securities and
Exchange Commission during the weeks and months just prior to the sale contain no mention of possible
legal problems over its billing system, or potential negative impact that would require downward revenue
revisions.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)

“Damon’s Activities Cost US Taxpayers Nearly $40 Million, The Government Said.” (Kimberly Blanton, “Needham
Lab Fined $ 119m For Fraud,” The Boston Globe, 10/10/96)

Romney Personal Profit From Bain’s Sale Of Damon: More Than $470,000. “Republican gubernatorial
candidate Mitt Romney and his venture capital firm made large profits from the 1993 sale of a Needham medical
testing company whose robust revenues were generated in part from a criminal scheme to fraudulently bill the
federal Medicare system for unnecessary blood tests. Romney personally made $473,000 when Corning Inc.
purchased Damon Corp., on whose board he served between 1990 and 1993.” (Frank Phillips, “Romney Profited On Firm
Later Tied To Fraud,” The Boston Globe, 10/10/02)

 Romney Earned Nearly $40,000 In Directors’ Fees Alone. “Romney’s firm, Bain Capital, and Romney
himself were minority investors in Damon from 1990 through August 1993. The Belmont businessman sat on
Damon’s board of directors, earning nearly $40,000 in directors’ fees, and was a member of the company’s
strategic planning committee when Damon was sold to Corning.” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon
Plant,” The Boston Globe, 10/9/94)

Bain Capital Tripled Its Investment On The Deal: “[Romney’s] firm, Bain Capital, tripled its initial investment,
making a profit of $7.4 million over a four-year period for its investors, according to copies of Bain documents
obtained by the Globe.” (Frank Phillips, “Romney Profited On Firm Later Tied To Fraud,” The Boston Globe, 10/10/02)

Romney “Proud” Of Role With Damon. “‘I’m proud of the small part I played in the growth of Damon,’ Romney
said yesterday. ‘It’s something that Ted Kennedy doesn’t have a clue about – creating real jobs in the private
sector.’” (Meg Vaillancourt, “Romney-Aided Deal Closed Damon Plant,” The Boston Globe, 10/9/94)
142


AMPAD

Romney’s Firm Owned Company Named Ampad That Purchased Indiana Paper Plant, Fired Its Workers
And Offered To Bring Them Back At Drastically Reduced Salary And Benefits

In 1994, Bain Capital-Controlled Company Named Ampad Bought An Indiana Paper Plant And Promptly
Laid Off Hundreds Of Workers – Firings Became An Issue In Romney’s Senate Race. “Romney’s business
background became a liability in his unsuccessful 1994 challenge to US Senator Edward M. Kennedy … The
issue erupted over Ampad Corp., a paper company Bain Capital controlled. In July 1994, Ampad bought an
Indiana paper plant, fired the existing workers, and gave most employees their jobs back at reduced wages and
benefits.” (Stephanie Ebbert, “Romney Seeks High Office With Confidence, Pedigree,” The Boston Globe, 8/11/02)

 Layoffs Came On Top Of Wage And Benefit Cuts, “Sparking A Bitter Strike.” “Bain owned 80 percent of
Ampad when it bought the Marion plant in July 1994, slashing wages, cutting benefits and sparking a bitter
strike. Workers were fired and forced to re-apply for their old jobs at less money.” (Andrew Miga, “Plant Workers May
Resurface,” Boston Herald, 4/4/02)

After First Defending Layoffs, Romney Later Tried To Convince Striking Workers He Was Not Involved By
Showing Them Flowchart Of Bain Capital Management Structure. “Romney initially tried to justify the layoffs,
defending them as necessary in corporate restructuring. Prodded by the workers to meet with them in Boston,
Romney eventually did so, but even then, he further distanced himself, showing a diagram of Bain Capital’s
corporate structure, claiming he was not to blame.” (Stephanie Ebbert, “Romney Seeks High Office With Confidence, Pedigree,”
The Boston Globe, 8/11/02)

Romney Claimed He Was On Leave From Bain Capital When Ampad Layoffs Began, But Former Bain
Executive Said Romney Bore Responsibility. “In 1994, Romney tried to distance himself from the Ampad
controversy, since he was on a leave of absence during the initial downsizing. But [former Bain Capital executive
and Ampad board member Marc] Wolpow, who came to Bain in 1990 from Drexel Burnham, the infamous junk
bond company, says: ‘I reported directly to Mitt Romney … You can’t be CEO of Bain Capital and say, “I really
don’t know what my guys were doing.”‘ And what were Romney’s guys doing? ‘My job was to maximize the profits
to Bain Capital’s partners from the Ampad transaction,’ says Wolpow…” (Joan Vennochi, Op-Ed, “Questions Romney
Shouldn’t Dodge,” The Boston Globe, 10/24/02)

Three Months After Plant Controversy Roiled 1994 Election, Ampad Decided To Close The Plant
Altogether

Union Officials Say Romney Was Running Bain Capital When The Plant Ultimately Closed In February
1995. “Workers blamed Romney for shutting down the Ampad plant in Marion, Ind., three months after he lost to
Sen. Edward M. Kennedy (D-Mass.), eliminating some 200 jobs and sowing misery for hundreds of families. …
[U]nion officials said Romney returned to Bain after the Nov. 8 election and was there when the plant closed Feb.
15, 1995.” (Andrew Miga, “Plant Workers May Resurface,” Boston Herald, 4/4/02)

Candidate Romney Promised He Would Look Into Workers’ Complaints After The Election, Then Sat By
As Ampad’s Board (40% Of Which Answered To Him) Voted To Close The Plant. “Romney was routed
despite promising the Indiana workers that he would ‘look into’ their complaints after the election. So when
Ampad’s five-member board, two of whom answer to Romney via Bain Capital, voted to give up and let the paper
plant close, the defeated candidate felt little need to make noise on labor’s behalf. ‘That was a local decision
made on local merits,’ he said after the Ampad plant received its death warrant. ‘My record on creating jobs here
in Massachusetts speaks well for itself.’” (Tom Mashberg, “Romney Backers, Foes Spar Over Plant Closing,” Boston Herald,
2/21/95)

Then-State AFL-CIO Head Joseph Faherty Promised He Would Remember Romney’s Actions And
“Expose His Record For The Sham It Is.” “If payback is sweet, then Mitt Romney enjoyed his with extra icing
last week when the 250 Indiana unionists who helped scuttle his Senate bid finally saw their own jobs go under.
… Joseph C. Faherty, head of the state’s AFL-CIO, [indicated] that the political payback could keep going around,
and coming around. ‘Romney has exacted the final retribution against Ampad workers,’ he said. ‘Should he
decide to seek office in the future, we will be there to expose his record for the sham it is.’” (Tom Mashberg, “Romney
Backers, Foes Spar Over Plant Closing,” Boston Herald, 2/21/95)

143

 “The Plant Closed … With Hardly A Whimper Of News. ‘We Won’t Forget,’ Faherty Said Yesterday. ‘Be
Warned.’” (Tom Mashberg, “Romney Backers, Foes Spar Over Plant Closing,” Boston Herald, 2/21/95)

Ampad CEO Had No Doubt Romney Authorized “Rollup” Strategy That Cost Workers Their Jobs. “[Charles
Hanson III] was CEO of Ampad from 1992 until 1998, when Bain asked for his resignation. Hanson said that
though he had had no direct contact with Romney after Bain took over Ampad in 1992, it was clear to him that
‘any significant direction we received would certainly have been authorized by him.’ Bain Capital, he said, was
interested from the start in a ‘rollup’ of Ampad, a consolidation of its resources that clearly involved the layoffs the
workers decried yesterday. And Hanson said he had no doubt Romney approved of that strategy.” (Yvonne Abraham,
“Workers Press Romney On Layoffs,” The Boston Globe, 10/29/02)

Ampad Went Public In 1996, Earning Bain Capital Over $100 Million, Then Declared Bankruptcy Four
Years Later

A Year After Indiana Paper Plant Was Shuttered, Bain Capital Made Over $100 Million Profit By Bringing
Ampad Public. “Ampad raised $243 million when it went public in July 1996. Bain Capital earned $107 million by
selling its shares, a sizable profit over its initial $5 million investment in 1992, according to a Bain Capital sales
brochure obtained by The Associated Press. The document did not say how much Romney himself earned.” (John
McElhenny, “Democrats Revisit Labor Deal That Hurt Romney In 1994,” The Associated Press, 10/22/02)

“In January 2000, Ampad Declared Bankruptcy.” (Joan Vennochi, Op-Ed, “Questions Romney Shouldn’t Dodge,” The Boston
Globe, 10/24/02)

HAIER GROUP AND MAYTAG

Romney Touts Business Experience While Campaigning In Iowa, Says Jobs Are Leaving State

In February 2007 Des Moines Event, Romney “Touted His Experience In The Business World.” “Former
Massachusetts Gov. Mitt Romney formally announced his run for president Tuesday in Iowa, promoting his status
as a Washington outsider … ‘If ever a time for innovation and transformation were needed in American
government, it’s now,’ Romney said. … At the Des Moines event, Romney touted his experience in the business
world …” (Lisa Rossi, “Romney Touts Values As He Unveils ‘08 Bid,” Des Moines Register, 2/14/07)

 Romney TV Ad That Was Scheduled To Run In Iowa Called Him A “Business Legend.” (Romney For
President, “Romney for President Launches First Television Ads,” Press Release, 2/21/07)

Romney, In Dubuque Last August: “These Are Challenging Times For Iowa … Jobs Are Leaving Iowa.”
“Nussle made his comments Thursday night in Dubuque at a fundraiser that yieled about $50,000 for the Nussle
campaign. The keynote speaker was Massachusetts Governor Mitt Romney, a Republican who painted the same
dim picture of Iowa’s economy that Nussle sketched. ‘These are challenging times for Iowa. You’ve figured that
out. Jobs are leaving Iowa,’ Romney said.” (O. Kay Henderson, “Nussle: Iowa At Number Three On Act Not Good Enough,”
RadioIowa.com, 8/16/06)

In 2005, Chinese Appliance Maker Haier Group, Working In Tandem With Bain Capital, Attempted – And
Ultimately Failed – To Take Over Newton, IA-Based Maytag Corp.

Haier Embarked On $1.3 Billion Takeover Bid For Iowa-Based Appliance Manufacturer Maytag. “For years,
American workers have worried about losing their jobs to low-cost workers in China. Now a new trend is emerging
that could be nearly as big: Wealthy Chinese companies are coming to the U.S. looking to swallow American
companies whole. Maytag Corp., the maker of such quintessentially American products as Maytag refrigerators,
Amana microwaves and Hoover vacuum cleaners, disclosed Monday night a $1.28 billion takeover bid from a
group led by Haier America Trading, a unit of China’s Haier Group.” (David Greising, “Chinese Firm Wants Maytag,” Chicago
Tribune, 6/22/05)

 Haier’s Effort Described As “One Of The Most High-Profile Attempts By A Chinese Company To Enter
The U.S. Market.” (John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

In Attempted 2005 Buyout Of Maytag, Haier Teamed Up With Bain Capital. “Bain Capital, the venture capital
firm that Romney started and made him a multimillionaire, teamed up with the Haier Group, a Chinese appliance
maker that has a factory in Iran, in an unsuccessful 2005 buyout effort. The target of their $1.28 billion bid – the
144

Maytag Corp., based in the lead presidential caucus state of Iowa.” (Glen Johnson, “Company’s Links To Iran Undercut
Romney’s Call For Divestment,” The Associated Press, 2/23/07)

Haier Is A Mammoth, State-Controlled Company With Opaque Financial Structures, Undisclosed
Ownership Interests, Ties To Communist Party Elites And Manufacturing Facilities In Iran

Observers Struggle To Discern Shareholding Structure Of Company – No Information About Haier’s
Ownership Is Public. “Notwithstanding that deference by Haier’s press office to Qingdao officials, it’s not clear if
Haier is government owned. Zhang, its CEO and top manager since 1984, has told foreign journalists in
numerous interviews that it’s difficult to explain the shareholding structure of the company, and exactly who owns
it. … Technically, Haier is a ‘collective factory,’ a hybrid between state-owned enterprises and privately held
corporations, according to a company spokesman in China. According to its Web site, it was founded by ‘street
side’ governments, a layer of government one step beneath a city. But no information about its ownership is
public.” (John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

 “Haier’s Ownership Structure And Finances Are Opaque…” (David Barboza, “From China, A New Bid For Maytag
And Status,” The New York Times, 6/22/05)

 “Haier … Is Privately-Managed But Still Controlled By The State …” (Francesco Guerrera And Richard McGregor ,
“Price Concerns A Factor In Haier Withdrawal,” Financial Times, 7/21/05)

 Haier “Government-Owned And Based In Qingdao.” “Haier America is the U.S.-based division of Haier
Group, which is government-owned and based in Qingdao.” (“AMC, Loews Cineplex To Merge,” The Kansas City Star,
6/21/05)

 “Haier Is A State-Owned Company That Controls Shanghai-Listed Qingdao Haier Refrigerator And
Hong Kong-Listed Haier Electronics.” (David Teather, “Hoover Is Next On China’s Wish List,” The Guardian (London,
England), 6/22/05)

Haier Also Has A Manufacturing Presence In Iran. “Haier, which is based in the eastern Chinese city of
Qingdao, was one of the first Chinese companies to expand internationally, setting up factories in Algeria, Mexico,
Iran and Southeast Asia before it started up its first U.S. factory, in Camden, South Carolina, in 2000.” (Elaine
Kurtenbach, “China Cos. Show Appetite For Brand Names,” The Associated Press, 6/22/05)

Haier “Largely Government-Owned” And A “Favorite” Of The Chinese Ruling Party. “Haier is also a
consumer goods goliath. The company is still largely government-owned, but has a publicly listed division. … The
company, which has about 50,000 employees, is also a favorite of the Beijing government.” (David Barboza, “From
China, A New Bid For Maytag And Status,” The New York Times, 6/22/05)

Haier’s Longtime CEO Was First Businessman Named To Communist Party’s Elite Central Committee.
“[Haier’s] longtime chief executive, Zhang Ruimin, has even fashioned himself as a Chinese version of John F.
Welch Jr., the hard-driving former chief of G.E. Mr. Zhang is the first businessman named to the Communist
Party’s elite ruling committee, the Central Committee.” (David Barboza, “From China, A New Bid For Maytag And Status,” The
New York Times, 6/22/05)

 “[Haier] CEO Zhang, For Example, Doubles As The Company’s Internal Communist Party Secretary
General…” (John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

Haier’s U.S. Spokesman Instructed By Chinese Superiors To Say The Company Does Not Comment On
Anything. “[I]t was hard to get any information from or on Haier – unusual given that it was bidding for a public
company. A woman at Haier’s U.S. headquarters says there is no press officer and that she is instructed to say
that the company does not comment on anything. The information flow is only marginally better at the home office
in Qingdao, in Shangdong province, where foreign journalists need clearance from the foreign affairs department
of the local Qingdao government before the company will consider replying to written or e-mailed questions.” (John
E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

Haier Wanted To Leverage Maytag’s Brand Identity While Shipping Manufacturing Jobs From Iowa To
China

“If The Chinese Acquire Maytag With Bain Cash, They Would Be Expected To Cut Thousands Of U.S.
Jobs And Move The Manufacturing To Cheaper Locations Back Home.” (Brett Arends, “American Workers’ Bane,”
Boston Herald, 6/22/05)
145


Haier Expected To Have Moved Most Maytag Production From Iowa To China. “Haier would be expected to
move production of most of Maytag’s branded products to China. Company officials have indicated an interest
primarily in Maytag’s strong distribution and product-repair networks and not necessarily its brands.” (David Greising,
“Chinese Firm Wants Maytag,” Chicago Tribune, 6/22/05)

 Washington Post: “Analysts saw Haier’s interests in Maytag as … a deal that would have used the
venerable U.S. brand name to sell machines that could be made in the Chinese company’s existing factories.”
(Peter Goodman and Ben White, “Haier Withdraws Maytag Bid,” The Washington Post, 7/20/05)

Haier’s Business Plan “Envisaged … Moving Manufacturing To Low-Cost China.” “Haier was also worried
about the problems in implementing its business plan – which envisaged keeping Maytag’s sales and distribution
teams in the US while moving manufacturing to low-cost China – in the face of opposition from a highly unionised
workforce.” (Francesco Guerrera And Richard McGregor , “Price Concerns A Factor In Haier Withdrawal,” Financial Times, 7/21/05)

 “Haier’s Initial Plan For Maytag Envisages Cutting Costs By Moving Its Manufacturing From Its US
Base, While Investing In Maintaining The Brand And Sales Channels In America.” (Richard McGregor and
James Politi, “Haier Might Consider Joint Bid,” Financial Times, 6/15/05)

 “Haier Could Leverage The Deal By Shipping Its Own Branded Appliances Through Maytag’s
Distribution Channel.” (David Greising, “Chinese Firm Wants Maytag,” Chicago Tribune, 6/22/05)

 Newton [IA] Daily News Editor Peter Hussman Expressed Concern: “We’ve got this thing hanging over us
… A lot of people feel that if Haier acquires Maytag there would be no chance of future production locally…”
(Jeremy Grant And James Politi, “Haier Offer Casts A Chill Over Maytag Home Town,” Financial Times, 6/22/05)

Haier Interested In Shifting Production “Back To Its Far Cheaper Home Base” In China And Elsewhere.
“Haier’s interest in Maytag would be far more in acquiring distribution and brand than more production facilities in
the U.S. One advantage of a Chinese purchaser for the troubled U.S. maker is the ease with which it could shift
production back to its far cheaper home base. ‘Paying workers $40 an hour, you can’t compete with workers
offshore who are paid $4 a day. This fits the trend,’ says one banker.” (Dennis Berman and Henny Sender, “Private Equity
Heavyweights To Join Haier Bid For Maytag,” The Globe And Mail [Canada], 6/21/05)

 “Haier Would Be Able To Significantly Reduce Maytag’s Costs By Shifting Production To Its Asian
Factories.” (David Teather, “Hoover Is Next On China’s Wish List,” The Guardian (London, England), 6/22/05)

Deal Had “Added Significance” Of Chinese Company Not Only Buying Legendary American Brand, But
Also Moving Jobs Abroad. “Any move by Haier would be a politically fraught one. Manufacturing jobs such as
the ones in Maytag’s Newton, Iowa, headquarters, have for years been moving abroad to Mexico and Asia. But
there would be an added significance of a Chinese-based company arriving in the American Heartland only to
move many or most of those jobs abroad.” (Dennis Berman and Henny Sender, “Private Equity Heavyweights To Join Haier Bid For
Maytag,” The Globe And Mail [Canada], 6/21/05)

History Of Maytag Is Part Of The Fabric Of Newton, Iowa

New York Times, On Newton: “Nearly Everyone … Here Has A Maytag Memory.” “Nearly everyone along the
streets here has a Maytag memory: the Maytag Queen being crowned in the Maytag Bowl amphitheater at
Maytag Park; the arrival of the stackable washer and dryer; the way the company’s ‘suits’ from headquarters once
prided themselves on knowing the names of all of their workers at the plant on the other side of town.” (Monica
Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Former And Current Maytag Workers React To News Of Impending Closing Of Maytag Plant In 2006

40-Year Maytag Worker Leland Smith: “Everything That Has Happened Here Has Depended On Maytag.”
“In the cool, echoey halls of the history museum in this company town, the display cases are full of washing
machines. … In many ways, said Leland Smith, who guided a visitor through the exhibit halls, the story of the
Maytag Company is the story of Newton. … ‘Directly or indirectly, everything that has happened here has
depended on Maytag,’ said Mr. Smith, 75, who, long before he began showing people around the museum,
worked for some 40 years as an industrial engineer -- at Maytag, of course.” (Monica Davey, “With Loss of Maytag, Town
Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

146

Former Maytag Worker Craig Miller Sr.: “Like Everything Else, I Guess, They Went Corporate And You
Were No More Than A Number, Period.” “‘That’s when it was more of a family business,’ said Craig Miller Sr.,
who retired as an electrician from the Maytag plant, whose wife still works there in sheet metal and whose father
worked there briefly in 1946. ‘But as things progressed, like everything else, I guess, they went corporate and you
were no more than just a number, period. That’s when it started going downhill.’ Mr. Miller said people in Newton
had quietly fretted about what might become of Maytag as times got hard and competition was stiff. Suddenly, the
company that had driven the town’s stability and spared it from forces, like the farm crisis, that every town nearby
wrestled with seemed to have trouble of its own.” (Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The
New York Times, 6/7/06)

Laid-Off Maytag Worker Denny Hosting: “I Guess I’ll Go Back To Trimming Trees.” “Denny Hosting sat at
another table, looking numb. Hosting isn’t retired. In fact, he’d gone to work at 7 a.m. to do what he always does,
assemble front-loading Neptune washers. There’d been a big layoff two weeks ago. Then a bunch more got the
word Friday. The only people left, he said, were the ones with the most seniority. Now they were left hanging, too.
‘The company had been laying people off around every three months,’ Hosting said. ‘Fifteen hundred over the last
18 months. I figured they’d do what the meatpacking plants have done for years. Shut it down, break the union,
then start it back up. The only thing that shocks me is the permanent closing. I guess I’ll go back to trimming
trees.’” (Marc Hansen, “Long-Expected Punch Still Subdues Newton,” Des Moines Register, 5/11/06)

18-Year Maytag Worker Tim Hartgers: “Where Else Am I Going To Find A Job That Pays That Well?”
“Casualties include Tim Hartgers, 42, who has worked at the plant for 18 years. He is a sheet-metal worker,
making between $18 and $19 an hour. Hartgers said he knew there was a chance the plant would close after
Whirlpool bought it March 31. ‘There’s not a thing you can do about it,’ he said. ‘But where else am I going to find
a job that pays that well?’” (William Ryberg, “Whirlpool To Newton: You Never Had A Chance,” Des Moines Register, 5/11/06)

Second-Generation Maytag Worker Rick Holmes: “At Least We Know Now.” “‘At least we know now,’ said
Rick Holmes, who worked at Maytag, as did his grandfather. Mr. Holmes said he and his family were likely to
move away, perhaps to somewhere in the South, depending on where he found work. Plenty of houses in town
now have for-sale signs on them, and as Mr. [Craig] Miller, the Maytag retiree, lamented, ‘Who is going to buy any
of them?’” (Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Former Military Wife – And Current Maytag Wife – Manuela Holmes: “Maytag Always Took Care Of Their
People, Or So We Heard. … We’ve Moved So Many Times.” “All day, Manuela Holmes waited by the
telephone, anxious for news about her family’s future. A military wife since age 19, Holmes has had to relocate
every two or three years or so throughout her adult life. Then, seven years ago, her husband, Rick, retired from
the military and took a job at Maytag’s headquarters in Newton. Holmes figured it would be a more stable life for
the couple and their two children, now ages 13 and 18. ‘Maytag always took care of their people, or so we heard,’
she said. … The thought of leaving Newton made her cradle her face in her hands. ‘We’ve moved so many times,’
she said. ‘This was our first place for seven years straight.’” (Jennifer Jacobs, “Uncertain Days Fill Their Futures,” Des Moines
Register, 5/11/06)

38-Year Maytag Worker Curt Jackson: “What Will 1,000 People Do In This Town?” “Curt Jackson, who spent
38 years with Maytag, said it’s a little strange seeing the name ‘Whirlpool’ on his pension checks. He still cashed
them, but it wasn’t the same. … ‘They made all their money in Newton,’ Jackson said, ‘and now they tell us
Newton is the problem. What will 1,000 people do in this town? They can’t all work at the racetrack.’” (Marc Hansen,
“Long-Expected Punch Still Subdues Newton,” Des Moines Register, 5/11/06)

Former Maytag Worker Mary Cass: “This Has Been Really Stressful.” “Mary Cass was laid off a few months
ago. Her husband was a supervisor. He took a buyout and went to Ohio for a job. Mary stayed back and tried to
sell the house. In the meantime, her marriage fell apart. She was already starting over when the news came
Wednesday. She’s taking classes at DMACC, studying to be an accountant and still trying to sell her house,
which has been on the market for a year. The plant closing isn’t going to help. ‘There are so many homes for
sale,’ she said. ‘I just lowered the price this week. This has been really stressful.’” (Marc Hansen, “Long-Expected Punch
Still Subdues Newton,” Des Moines Register, 5/11/06)

Former Maytag Worker Joe Keeler: “There Are Going To Be A Lot More Houses On The Market.” “Joe
Keeler’s former house in Colfax sits empty, as it has for months, with a for-sale sign out front and a price tag
that’s been slashed three times. The most recent drop came last week, when Keeler – who left his mechanical
engineering job at Maytag last November – heard that the factory and headquarters would shut down. ‘The first
thought was: There are going to be a lot more houses on the market,’ said Keeler, who now lives near Milwaukee
with his wife and young daughter.” (Bonnie Harris, “For Sale Very Soon: A Lot More Houses,” Des Moines Register, 5/14/06)
147


Third-Generation Maytag Worker Bill Hull: “Everyone At Work Was Kind Of Numb.” “Bill Hull was shocked
but not crestfallen by Wednesday’s announcement that his job of 12 years would be gone by October 2007.
‘We’ve known for some time that this could happen, and I guess that’s the way we have lived our lives since the
strike back in 2002,’ said Hull, who represents the third generation of his family to work at Maytag. His father, Don
Hull, 57, of Knoxville, retired from Maytag a little more than nine years ago, after 30 years of service. Don Hull’s
father, the late Beryl Hull, worked at Maytag at least 20 years before leaving the company in the mid-1970s.
‘Maytag has been a provider for many, many Hull and Walters families for years,’ Bill Hull said. … [Hull] said the
first thing he did after learning the plant would close was call his wife, Dawn, who stays home with their four
children. ‘Everyone at work was kind of numb,’ he said.” (Juli Probasco-Sowers, “‘We Aren’t In Limbo Anymore,’” Des Moines
Register, 5/11/06)

Local Officials Reacted To News Of Maytag Plant Closure With Sadness And Disappointment

Newton Mayor Chaz Allen: Sense Of Disappointment At News Of Plant Closing. “‘When it comes down to it,
this possibility has been on people’s minds ever since I’ve been here,’ said Chaz Allen, the mayor of Newton, who
moved here six years ago. Still, that did not diminish the sense of disappointment and worry that Mr. Allen felt
when he received a call from company officials on May 9 at 10:23 p.m. – a time that he says is etched in his
memory.” (Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Newton Daily News Editor Peter Hussman: Residents Are “Sorting Through The Rubble And Wondering
What The Aftershocks May Be.” “For now, Newton is ‘sorting through the rubble and wondering what the
aftershocks may be,’ said Peter Hussmann, the editor of The Newton Daily News. The signs are mixed in recent
days: a new bank said it would come to town, Mr. Hussmann said, but a local printer, which had long done
business with Maytag, announced that it would close. And if new companies do come, in a diversified economy,
will any of them mean what Maytag meant? ‘I think that’s what Newton is trying to find out – what its identity will
be,’ Mr. Hussmann said. ‘I don’t think our identity is formed yet. I think we’re looking for one.’” (Monica Davey, “With
Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

UAW Official Dennis Williams: “It’s Sad For The Community.” “A leader of the union representing Whirlpool’s
Newton union on Thursday praised Gov. Tom Vilsack’s efforts to save former Maytag jobs in Newton. United Auto
Workers Regional Director Dennis Williams doubts Iowa leaders had a serious chance to influence Whirlpool’s
decision. … He expressed bitterness about former Maytag Chairman Ralph Hake’s role in Maytag’s sale, which
he felt many UAW members share … ‘It’s sad for the community,’ Williams said. ‘Newton is a great community to
live in. I have family there.’” (Dave Dewitte, “Leader Of Newton Union Praises Vilsack,” The [Cedar Rapids, IA] Gazette, 5/12/06)

STREAM INTERNATIONAL, INC.

Stream International Provided Outsourced Customer Support Services To Corporations

Stream Called “One Of The Bigger Players” In The Outsourced Call Center Industry. “Canton’s Stream
International offers its call centers to corporations on an outsourced basis, and is one of the bigger players in the
industry. The company employs 7,500 call center agents in nine countries, and last fall it bought a system that will
allow its agents to interact with clients using VOIP technology.” (C.A. Soule, “Telco’s New Center Of Growth,” Mass High Tech,
4/30/01)

Bain Capital Invested In Stream International’s Predecessors As Early As 1993 And Held Majority Stake In
Company From November 1999 Through October 2001

Bain Bought Corporate Software Inc. In 1993, Merged It With R.R. Donnelley & Sons Unit (With Bain
Holding Minority Stake) In 1995 To Create Stream International; Bain Purchased Majority Stake In Stream
In November 1999. “Bain’s Stream investment is an offshoot of the firm’s purchase of Corporate Software Inc., a
supplier of software services, for $94 million in late 1993. In 1995 Bain merged Corporate Software with R.R.
Donnelley & Sons Co.’s global software services unit to create Stream International Holdings Inc. At that point,
Donnelley owned 87% of Stream and Bain just 4%, according to a U.S. Securities and Exchange Commission
filing. In early 1998 Stream spun off its Modus Media International unit, a supplier of supply-chain management
services. Bain, which owns about 39% of Modus, bought out Donnelley’s holding in Stream for $96 million in
November 1999.” (David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal, 9/25/01)

Bain Capital Became “Primary Equity Holder” In Stream After Borrowing Over $82 Million To Finance
LBO. “Lehman Brothers, acting as the sole lead arranger, administrative agent and syndication agent, launched
148

into the market at a bank meeting in New York on Oct. 13 an $82.5 million credit facility for Stream International
Inc. … Proceeds from the deal will be used to fund the company’s leveraged buyout by private equity investment
firm Bain Capital Inc. Stream’s primary equity owner is R.R. Donnelley & Sons Co., which owns 87% of the
company. Once the transaction is completed, Bain Capital will become the primary equity holder in the company.”
(“Bain Taps Lehman For Stream LBO,” Bank Loan Report, 10/25/99)

Bain Reportedly Paid $96 Million To Acquire Majority Interest In Stream. “Stream International split off from
its larger parent, now Modus Media International and Corporate Software, prior to the Bain VI investment in 1999.
(However, Bain IV was already an investor in Modus Media since 1993, and still holds a 39% stake.) Bain
purchased R.R. Donnelley & Sons Co.’s stake in Stream International for $96 million.” (Christa Fanelli, “Bain Capital
Sends Company Upstream,” BuyOuts, 10/8/01)

Bain’s Total Capital Outlay In Stream Was Not Publicly Determined. “Bain’s capital outlay in Stream isn’t
quantified in financial statements. The firm has received at least one capital distribution, of $12.3 million, following
its initial investment.” (David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal, 9/25/01)

In October 2001, Bain Sold Its Majority Interest In Stream For What Was Assumed To Have Been A
“Substantial Gain” For Bain Investors

Bain Capital Sold Its 60% Equity In Stream To Solectron Corporation For An Undisclosed Sum. “Boston-
based Bain Capital last month agreed to sign off its investment in Stream International Inc., a customer care and
technology support company for online and technology companies, to Solectron Corp. Terms of the deal, which is
expected to close by the end of October, were undisclosed. Bain will be selling its full ownership stake of
approximately 60% of the company.” (Christa Fanelli, “Bain Capital Sends Company Upstream,” BuyOuts, 10/8/01)

Bain “Probably” Turned Substantial Profit From Its Investment In Stream. “Although the magnitude of Bain’s
profit from the sale isn’t clear, the firm will probably register a substantial gain considering Stream’s recent
performance. Kathleen Nordgren, a Stream press official, said that revenues climbed 36% from 1999 to 2000 and
are on track to grow more than 20% this year. Stream’s Ebitda, she said, is in the black. ‘If the company weren’t
healthy, I doubt Solectron would have been interested in us,’ she said.” (David Carey and Sarah Cohen, “Solectron To Buy
Bain Capital Unit,” Daily Deal, 9/25/01)

Stream Experienced “Significant Growth” Under Bain’s Management. “Under Bain’s ownership, Stream
International has seen significant growth, mainly through acquiring new clients and building up the accounts of
existing clients. Last year the company, based in Canton, Mass., had $323 million in sales. Kathleen Nordgren, a
spokesperson for Stream International, said the company grew ‘well over 30% last year’ and is seeing growth
again this year, though to a lesser extent.” (Christa Fanelli, “Bain Capital Sends Company Upstream,” BuyOuts, 10/8/01)

Solectron Itself Sold Stream To Portfolio Firm Of Private Equity Concern H.I.G. Capital In April 2004.
“Originally a unit of Garland-based Software Spectrum, a software reseller, the business that is now called Stream
was purchased for an undisclosed amount in June 2003 by a Miami private equity concern, HIG Capital. At the
time, the business operated under the name ECE, an acronym for ‘Exceptional Customer Experience.’ In April,
HIG purchased Stream International from California-based Solectron Corp., merged the 8,000-employee Stream
with the 2,000 employee ECE and gave them the Stream name. Terms of that purchase weren’t disclosed.” (Jeff
Bounds and Christine Perez, “Stream Picks Richardson For Consolidated Offices,” Dallas Business Journal, 7/16/04)

 Solectron’s Divestment Was Complete By April 2004. “Solectron Corporation, a leading provider of
electronics manufacturing and integrated supply chain services, said today it completed the sale of its Stream
International call center business to the parent company of ECE Holdings, Inc., a leading global provider of
outsourced technical support and customer service and funded by H.I.G. Capital. Stream and ECE provide
technical support and customer service to high-technology companies and their customers.” (Solectron
Corporation, Press Release, 4/14/04)

Stream International Filed IPO In 1997, Withdrew Offering Four Years Later

Stream Filed For IPO In April 1997 But Withdrew Filing On September 17, 2001. “In the wake of the Sept. 11
terrorist attacks, the psychological impact on how the attacks will affect the economy of the United States is still a
large question mark. When the stock markets tumbled last week, many companies planning their initial public
offerings decided to hold out until markets stabilized, while some pulled out altogether. … Stream International
Holdings Inc., a technical support outsourcing company, filed a $51.6 million IPO in April 1997 with Deutsche
Banc Alex. Brown serving as lead underwriter, but withdrew its offering Sept. 17. The company simply stated it
149

does not intend to conduct the offering of shares of common stock contemplated, according to its Form-RW.”
(Frank Musero, “IPOs On Hold As Market Remains Uncertain,” IPO Reporter, 9/24/01)

In Letter To SEC Dated Sept. 14, 2001, Stream Offered No Explanation For Withdrawing Its IPO
Registration. “In accordance with Rule 477 promulgated under the Securities Act of 1933, Stream International
Inc. (the ‘Company’) hereby withdraws its Registration Statement on Form S-1 (Registration No. 333-26185),
which was originally filed with the Securities and Exchange Commission on April 30, 1997. The Company is
withdrawing the Registration Statement because it does not intend to conduct the offering of shares of Common
Stock contemplated in the Registration Statement at this time. No shares of Common Stock of the Company have
been issued or sold under the Registration Statement.” (Stream International Inc., Letter To The Securities And Exchange
Commission, 9/14/01)

At Time Of Stream’s IPO Filing In 1997, Two Bain Capital Employees Sat On Company’s Board Of
Directors

Bain Capital Principal Jonathan Lavine Served As Director Of Stream International. “Mr. [Jonathan] Lavine
serves as a Director of the Company. He has been a Principal at Bain Capital, Inc. since 1995 and was an
Associate at Bain Capital, Inc. from 1993 to 1995. … Previously, Mr. Lavine worked in the mergers and
acquisitions department of Drexel Burnham Lambert, Incorporated. Mr. Lavine is also a Director of Clarity
Telecom, Inc. and American Pad & Paper Company.” (Stream International Inc., SEC Form S-1/A, Registration No. 333-26185,
Filed 12/23/97)

Bain Capital Managing Director Mark Nunnelly Served As Director Of Stream International. “Mr. [Mark]
Nunnelly serves as a Director of the Company. He has served as a Director of the Parent Company since 1995.
Mr. Nunnelly has been a Managing Director of Bain Capital, Inc. since 1992, and a General Partner of Bain
Venture Capital since 1990. Prior to joining Bain Venture Capital, Mr. Nunnelly was a Partner at Bain & Company,
where he managed several relationships in the manufacturing sector…” (Stream International Inc., SEC Form S-1/A,
Registration No. 333-26185, Filed 12/23/97)

Both Lavine And Nunnelly Were Members Of Stream’s Audit Committee And Compensation Committee.
(Stream International Inc., SEC Form S-1/A, Registration No. 333-26185, Filed 12/23/97)

Bain Capital Financed Position In Stream International Thru Bain Capital Fund VI In 1999

Bain VI Closed In 1998 – While Romney Ran Daily Operations – With $200 Million Committed By Firm’s
Partners And $1.1 Billion In Total Capital Commitments. “Bain Capital’s Fund VI closed in 1998 with $1.1
billion in committed capital and the Coinvestment Fund of Fund VI raised $400 million. Bain’s general partners
committed $200 million to the final closing.” (Christa Fanelli, “New Funds: Bain Capital Fund VII Aims For $2B,” BuyOuts, 5/29/00)

Stream International Was Among Investments In Bain VI Portfolio. “Bain Capital will continue its tradition of
investing in high-cap companies in various industries. The firm’s recent investments include Interpath, an e-
commerce unit of Carolina Power & Light, Mattress Discounters, ChipPac Inc., a semiconductor assembly and
test provider, and Stream International Inc., a technical support provider.” (Christa Fanelli, “New Funds: Bain Capital Fund
VII Aims For $2B,” BuyOuts, 5/29/00)

Bain Capital Took 30% “Carry,” Or Share Of Profits, From Bain VI. “With tight lips, Bain Capital this month
began marketing its seventh buyout fund. Bain Capital Fund VII LP, like Fund VI, will be raised simultaneously
with a Coinvestment Fund. … Reports have indicated that Bain Capital will again charge a 30% carry for Fund VII,
as it did for Fund VI.” (Christa Fanelli, “New Funds: Bain Capital Fund VII Aims For $2B,” BuyOuts, 5/29/00)

Months After Bain’s Acquisition Of Stream, Bain Capital “Point Person” Scott Murray Was Hired As
Stream’s President And Chief Operating Officer

February 2000: Three Months After Being Acquired By Bain Capital, Stream Appointed Longtime Bain
Capital Business Associate Scott Murray As President And COO. “Stream International announced today the
appointment of R. Scott Murray as President and Chief Operating Officer reporting to Steve Moore, Chairman and
Chief Executive Officer. As President and Chief Operating Officer, Murray will be responsible for Stream’s North
American operations, which account for the majority of Stream’s revenues and employees and will be part of the
overall corporate executive team.” (Stream International, Press Release, 2/9/00)

150
The Deal Called Murray “A Point Person” For Bain Capital “As It Deals With Its Portfolio Companies.”
“Knowing that private equity firms like to operate privately, Scott Murray, CEO of Modus Media International Inc.,
doesn’t want to say too much about Bain Capital LLC. But over the past several years he has emerged as a point
person for the Boston-based private equity firm as it deals with its portfolio companies.” (Dennis Fitzgerald and Heidi
Moore, “Movers & Shakers,” The Deal, 4/5/04)

Before Being Tapped To Run Stream, Murray Served As CFO At Bain Capital Portfolio Company “The
Learning Company.” “Before joining Stream, Murray was the Executive Vice President and Chief Financial
Officer of The Learning Company. TLC was the largest consumer software company in the world developing and
marketing educational, productivity and entertainment software for the retail, OEM, direct response, International,
school and e-commerce channels.” (Stream International, Press Release, 2/9/00)

Murray Held Senior Positions For At Least Three Bain Capital Portfolio Companies By The Age Of Forty –
Including His Stint At Stream. “Before Murray, 40, joined Modus two years ago, he was president and COO of
Stream International Holdings Inc., a call center company and Bain investment that in the mid-’90s included
Modus. … Prior to Stream, Murray was chief financial officer of Learning Co., an educational software company
and an investment of Thomas H. Lee Co., Bain and Centre Partners Management LLC.” (Dennis Fitzgerald and Heidi
Moore, “Movers & Shakers,” The Deal, 4/5/04)

Murray Said Bain Capital Had “Asked Me To Work With Them.” “Murray says his continued affiliation with
Bain is largely serendipitous. ‘I have been available, and they have asked me to work with them,’ he says.” (Dennis
Fitzgerald and Heidi Moore, “Movers & Shakers,” The Deal, 4/5/04)

As Of October 1, 1997 – Before Bain Capital Assumed Majority Stake – Stream Employed Over Seven
Times As Many Full-Time Workers In The U.S. As It Did Overseas

Stream International Workforce (As Of Oct. 1, 1997) *
Location Full‐time Employees
Beaverton OR (Gemini) 100
Beaverton OR (Murray) 560
Canton MA 650
Dallas TX (LBJ) 820
Dallas TX (Trinity) 960
Memphis TN *
Domestic Employees 3,090
Amsterdam, Netherlands 220
Londonderry, Ireland 110
Velizy, France 90
Overseas Employees 420

* Source: Stream International Inc., SEC Form S-1/A, Registration No. 333-26185, Filed 12/23/97

Under Bain Capital’s Guidance – And As Result Of “Booming” Outsourcing Business – Stream
Announced Ambitious Expansion Plans In Summer Of 2000

June 2000: Under Bain Management, Stream Announced Plans To Nearly Double Number Of Employees
From 7,000 To 13,000, Including Over 200 New Jobs In Hometown Of Canton, Massachusetts. “Stream
International Inc. of Canton will build up to a dozen new call centers worldwide as part of a $60 million expansion
it plans to announce today. Closely held Stream provides technical support for customers of companies including
Microsoft Corp. and Excite@Home. It now has about 7,000 employees at 14 centers, including about 1,000
workers in Canton. An expansion over the next year will add another 6,000 employees, including about 255 in
Canton, executives said.” (Ross Kerber, “Canton, Mass.-Based Tech Support Company To Announce Major Expansion,” The Boston
Globe, 6/27/00)

 Included In Stream’s Expansion Plans: 600 New Jobs In Mumbai, India. “New sites will include buildings
in Montana, New Mexico, Canada, and northern Spain, among other places. Stream also said it will hire 600
workers in Bombay, to provide support via e-mail. In Canton, Stream plans to upgrade its infrastructure and