Ken Dixon's Blog-O-Rama

 Given a chance to issue a press release, Attorney General Richard Blumenthal today asked the federal government to block the payment of $100 million in so-called retention bonuses to those AIG Financial Services employees in Wilton.

 Blumenthal sent a letter to federal Special Master Kenneth Feinberg, who has jurisdiction over executive compensation at bailed-out companies.

“I am writing to urge you to prohibit AIG from paying $100 million in employee bonuses,” Blumenthal said in a follow-up news release. “AIG still reportedly owes federal taxpayers $124 billion — and should therefore be barred from company from paying a penny of bonus until it repays its massive loan.”

 Blumenthal, you recall, is running for the US Senate seat being vacated by Chris Dodd, who will live forever as “Doodles” among certain state Capitol reporters.

 Anyway, the Blogster just got a call from Gary Phelan, a Stamford attorney with the New York firm of Outten & Golden, representing some AIG employees. “They are clearly entitled to it under Connecticut law,” he said. “Under the Connecticut Wage Statute, AIG is clearly obligated to make these retention payments. It is also an enforceable contract under Connecticut contract law. Attorney General Blumenthal makes no attempt to explain – because he can’t – that these payments should not be made in March.”

 Some AIG employees collected $100 million in bonuses today as part of a reduced-benefits deal where they took 10 percent-to-20-percent less than they were entitled under their retention contracts. An additional $136 million is scheduled to be doled out in March.

Attorney general Dick Blumenthal, wyho yesterday indicated that Secretary of the State Susan Bysiewicz may need a court ruling on whether she’s had enough practice as a lawyer to be attorney general, is seated at one end of the four constitutional officers, and Bysiewicz is at the other, separated by Comtroller Nancy Wyman and Treasurer Denise Nappier, as Gov. Rell offers her budget adjustments.

The governor kicked off the 2010 budget-adjustment session by asking Democrats, Republicans, even the courts, to be nice and work together.

From the governor’s State-of-the-State speech:

 ”One area where we see a large number of new start-ups of small businesses is in green technology and clean, renewable energy.  Kermit the Frog had it wrong all these years, I’m afraid.  It is easy to be green.  Solar, fuel cells, wind turbines and geothermal – all hold the keys to economic and energy prosperity.
That is why I am proposing that we expand our sales tax exemption to include machines, equipment, tools, materials, supplies and fuels used in the renewable energy and green technology. 

This is in addition to the work of my Electric Vehicle Council that is preparing the way for green business opportunities for the  arrival of zero-emission, electric vehicles.”

If there ever was a word that obfuscates, it’s “securitization.” It’s a term for borrowing against future revenues. Nestled in Gov. Rell’s budget-adjustment proposals is $1.3 billion in securitization. OPM Secretary Bob Genuario just declined to give reporters details of the caper, which will be the subject of a joint announcement this afternoon between OPM and the Treasurer. The Blogster, a fan of the expanded bottle-deposit law, imagines that the nickel-deposit revenue stream, called escheats, will become part of the equation.

Check today’s list of bills in the Capitol mailboxes. The Blogster finds that Sen. Dan Debicella, R-Shelton, seems to be sponsoring many bills that could be translated to his run for the GOP nomination to challenge US Rep. Jim Himes in the Fourth District. Debicella has submitted legislation to “redefine” the state’s constitutional spending cap; requiring the Legislature to “ensure” balanced budgets; and exempting Social Security and pensions from the income tax. The latter, in particular, could be popular back home. But of course the Democrats won’t let it see the light of day.

 There’s a bill in the hopper, for action today, to expand COBRA benefits and contribute more cash to distressed municipalities including Bridgeport, New Haven and Torrington. The Legislature will also increase funding for eight other towns and cities including Hartford, Newtown and Watertown. All of this would occur in the fiscal year that starts July 1. The governor’s office doesn’t feel that the COBRA piece isn’t necessary and is more “feel good” than meaningful legislation for the Ds because the state Insurance Department has been moving ahead with similar plans to continue health benefits for people changing, or losing, jobs.