Tuesday, March 22, 2011

City Manager O'Brien's fiscal State of the City presentation

For those looking for liveblogging, I should note that WordPress is down, so Worcester Magazine is offline. Also, the internet connection is SLOW. UPDATE: Cover It Live is now up.
Updating as I go; hit refresh!

City Manager cites North High construction as a sign of fiscal progress


Revenue declines, including excise taxes

Local aid reduced 40% since FY08 (note that the bar graph starts at $30,000,000; this exaggerates the size of the drop)

layoffs + loss of 225 city side positions in the past three years
Rx management saving $2M

"fiscal foundation for our city remains strong"

fixed costs eating up all new cityside revenues
increase in foundation formula raises contribution to WPS by $1.5 M

Look! It's another graph that doesn't start at zero: 1650 employees to 1450 down to 1300 employees

new city revenue eating up by ed funding formula (as required by state law) and fixed costs

"education funds continue to increase..." (as required by state law)
12% increase in costs for education
state aid to education increased over past few years (not at the same rate as inflation, incidentally)

NO SNOW REMOVAL DEFICIT
construction slowdown, vehicle excise is up a bit

Likely service reduction (1900 in FY01)
police down to 911 response
additional closure of fire station
DPW: reduction of basic function
Manager plans: loss of 46 police, 45 fire, 40 DPWP, 19 non-reps plus frozen positions
 
GIC plan: would close deficit on both sides, more or less
"mirror state group insurance plans"
"costs have to work on to be contained"
Manager is sure that it will go forward this session (interesting, as this is not as clear to, say, the state unions)
Yearly deductible $250/$750
copay from $10 to $20
tiering of specialists, jump in all other costs
reduction in premium costs would likely cover jump in deductible
Open enrollment begins in April
 
any health care changes will not take place, likely, separately, but will happen as part of the budget (I've heard this too)
 
Council response:
Toomey: "Just when you think you've hit bottom..."
can see all hard work of maintaining services going away
asks if the 5% increase in population (we found this out today!) will help us at all; Manager says that generally, yes, but maybe not now
School side "talking about reaching massive retirement age" in the next few years; is that true in city?
Manager says it's best dealt with in a full report
"everybody's nightmare come to visit us"
Petty: "not the only city out there trying to wrap our hands around this"
House Speaker says he's going to do something (on GIC)
"are we going to get there one way or the other?"
Manager basically says yes
100 recent position drop on public safety: "not just a safety issue; it's an economic development issue"
"at least you're out there...we should be thankful that we have you"
Clancy: not surprised we're going to have to reduce services and government
worked very hard on how we can cut expenses
very impressed by GIC; haven't heard anything about retirees
asks about a "bonus" for those choosing a lowest cost plan; city picks up cost of premium for two months
wants to know of savings if all represented employees went into GIC (or like); what if retirees went GIC(or like)...asks for a report
Haller: either we can attempt to stay local in our health care (even if they end up looking GIC like), or health care can be removed from negotiations with employees (and it would be in the sole decision making power of the Manager; OR just mandated by the state, depending on what the bill is that is passed)
Do we know how certain we are they will take action this year?
The Mayor says NO; the Manager says we know they'll do something (get the difference?)
Rushton: what exactly are you doing with the retirees?
did not move the retirees en masse: assessing the realities of these programs
like the plans they have now? Yes, says the Manager...costs would reflect the state, though
some reflection of total health care costs would be taken into account (as it's a greater proportion of their income)? Manager "would engage retirees in conversation..." (which doesn't mean yes)
asks for changes in out of pocket payments
appreciates awareness of costs for people
Lukes: "this is the kind of reform that would be considered revolutionary in other parts of the country"
cuts in personnel "has not wrecked havoc on city services"
level of professionalism that does credit
"no increases in wages?" Yes, no wages built into this budget
"you're not making any recommendations for new taxes?" No
"question (on GIC) of local control or state control"
Net layoffs are 131
budget has to be balanced; if he can settle with unions OR if GIC goes through, we may have fewer layoffs
"you're actually representing those 131 employees by trying to resolve this prior to the budget presenation"
(oh, softball!)
"taxpayers..will want to hear that we aren't going to hear that they're not having new taxes"
Palmieri: "we seem to be generally focused on the cost of health care...and how do we take Lincoln off the penny"
creative wellness program: "fewer people using the services"
"if they're not going to get out there, costs are going to" continue to go up
"if you have a stroke or you DON'T have a stroke...but boy! Nothing about wellness!"
"I don't know how much further we can go, without looking at something with regard to wellness"
"a rarity for me to have to go" (to the doctor)
Mayor O'Brien: a lot of this depends on the numbers
"I think it's really important that we take another look at this and get some more information"
"we pay all the bills...Councilor Palmieri is absolutely right..we pay all the bills"
"some additional fitness times..I think those are some ideas that should be explored"
"we did this successfully 4 1/2 years ago on the school side...not all are on the same level...so thinking a little creatively as an approach..recognizing that we have people that are on FAR different places on our salary scale" to equalize the hit by salary
Toomey: can we look at entirely population of employees?
paring back administrative postions: manager says this has happened
"they're taking zeros and they're taking health care reforms...present the same to unions"
relating positions to unions that are there; not that the others aren't included
does the entire city have to be moved over to GIC-like to get the benefits?
yes, up until we have to put in layoffs


REFERRED TO MO

No comments: