Cost-savings plan gets hearing in House
January 13, 2010
By Randal Edgar
PROVIDENCE -- By some tallies, the cost-saving measures Governor Carcieri has proposed for cities and towns would almost make up for the millions he wants to cut in state aid. But House Finance Committee members, wrestling with the scope of Carcieri's plan, heard diametrically opposed testimony Tuesday on the merits of the measures -- particularly those that would abolish minimum-staffing requirements, require higher employee health insurance co-shares and change the rules on employee pensions.
The committee heard first from mayors and managers and then from union leaders, and never did the twain meet.
Mayors and managers, while sharply critical of Carcieri's proposed aid cuts, urged lawmakers to approve the cost-saving tools, saying they would at least give cities and towns a chance of offsetting some of the cuts.
"Mr. Chairman, this is not the first time the House Finance Committee has taken testimony on several of these articles," said Pawtucket Mayor James E. Doyle, who recalled appearing before the committee in 2008 and in 2009. "Here we are again."
Union leaders urged lawmakers to reject the proposals, saying they would only punish employees who have already made sacrifices and would also jeopardize employee safety and public safety if minimum-staffing requirements are abolished.
"There's no requirement in state law, in state rules, or anywhere that says there needs to be a certain number of firefighters on a fire truck," said Providence Firefighter Paul A. Doughty, president of Local 799 of the International Association of Fire Fighters. "It becomes a necessity that we put these terms in our contract."
The debate even drew a visit from gubernatorial candidate and former U.S. Sen. Lincoln D. Chafee, who urged the committee to leave benefits alone but allow flexibility on staffing to help managers and mayors "at least address" high overtime costs.
Carcieri, trying to close a $219-million midyear budget shortfall, has unveiled a supplemental budget that eliminates $125 million in municipal and education aid in the unprecedented midyear cuts.
In addition to abolishing minimum-staffing requirements for police and firefighters, the cost-saving measures would also require all future municipal collective bargaining agreements to require a 25-percent employee co-share on health insurance; eliminate automatic cost-of-living pension increases for future state and public teacher retirees; and require locally administered pension plans to follow the state Municipal Employee Retirement System's benchmarks for retirement age, years of service at retirement and employee contributions.
The plan would allow cities and towns to tax residents to make up for the lost revenue, but Doyle and other local leaders said that over the long haul, the measures might roughly offset the proposed cuts. Providence, for instance, would lose $17.1 million under Carceri's plan for the second half of fiscal 2010, but the city could eventually save $32.5 million a year, said Richard Kerbel, director of administration for Mayor David N. Cicilline.
Statewide, the 25-percent co-share on health insurance would save cities and towns an estimated $17.9 million a year, said Carcieri's budget officer, Rosemary Booth Gallogly.
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Linc Chafee is a tested leader of unquestioned integrity and a strong independent voice. As Governor, he will work hard to create new jobs, rebuild our economy, solve our chronic budget problems, end corruption, and forge a new way forward for Rhode Island.
United Food and Commercial Workers Local 328
United Nurses & Allied Professionals (UNAP)
Service Employees International Union (SEIU) State Committee
