With state aid to Methuen’s general government side level funded from last year, and with all of the increase in local tax receipts mandated by the state to go to the school department it has become necessary to come up with new ways to save money at the local level. Local government, by necessity, must shrink. As we explore ways to fund the upcoming budget I had proposed a series of modest changes to our health care plan. These changes, which would have saved both employee and city, have been rejected by the coalition. While much debate in health care has centered on cities and towns being able to join the state health care plan (GIC) the ability of local unions to block such a move has meant that almost no movement has occurred in this area. As many of you know from prior posts it has been my contention that the advantage enjoyed by the state plan in terms of rate inflation has not been due to better management (as some at the state would have you believe) but rather from the greater management flexibility that the governor can exert on the plan itself outside of the collective bargaining process. In this budget cycle alone unilateral changes made by management to the GIC will save the State some 50 million dollars. Such authority needs to be vested in local management in light of the state’s inability to provide additional funding to support these benefits. On the basis of that belief I have submitted to the Methuen City Council a Home Rule Bill that would create a local health care commission (in Methuen)analogous to the state GIC Commission, which would have ultimate authority over plan composition and rate structure. This Commission would have no more authority over the local health care plan than the Governor’s Commission has over the State plan, and would have a majority of management appointees. While I am sure there will be opposition to such a proposal I believe that conditions on the ground make such a choice unavoidable for Methuen, and in the short to medium term for all other localities as well. I will attach a copy of this legislation to this posting shortly.
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Bill Manzi.com 
Your Honor,
I hope you are going to be able to withstand the slings and arrows you are about to receive from the union and their allies (unions means votes to some)
This may be the equivalent of a Shays Rebellion and hopefully will lead to giving town leaders a free hand to to manage the cities and towns. (I can dream can’t I?)
If you want to lead a rebellion I will be right beside you. I’ll be the fellow with the bloody bandage on his head beating the drum and limping.
Do you think other mayors have the tenacity to join you?
I expect our local legislators to join the fray and clear a way for in the House and Senate of the Peoples Republic. I place the chances of that happening at slightly less than winning three lotteries in a row with three different randomly chosen numbers.
Jules
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I have been a member of the GIC for over ten years with a family plan. We utilize the Tufts Navigator Plan and have always felt we had thorough coverage at a reasonable cost. There is economy in numbers and I think your idea to include municipal employees and retirees in the GIC plan is a good one.
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Mayor, make sure when you tell some departments they may have to lay off some employees to let them know their own unions are the reason.
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Derek brings up a very good point. Why should some people have to lose their jobs so that others can save some coin on their medical benefits. Not fair!!
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Derek brings up a very good point. Why should some people have to lose their jobs so that others can save some coin on their medical benefits. Not fair!!
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Mayor, you wrote “…to come up with new ways to save money at the local level.” Several weeks ago I asked you a question (off topic) regarding a proposal to merge city and school accounting systems. The idea being to save money. You didn’t respond. So I’ll ask again. Is the merger proposal dead? Being reviewed? What is the status?
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Sorry about not responding earlier. It remains a goal to consolidate functions and save money. I would be prepared tommorow to produce a plan that would do exactly that in the area of city and school finance functions. Unfortunately STATE LAW gives the School Committee veto power over such a consolidation, and the current committee is against it. It is in effect an unfunded mandate that the regional mayors have asked the legislature to remove.
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Your Honor,
How’s the free the mayor from restrictive state mandates” coalition doing?
I can taste the free coffee now.
Jules
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I can feel the pain in my wallet now. I am trying to ascertain where the package is, as it was added as an outside section to the senate budget. If passed by the senate then I am still in the hunt. If rejected then we will set a date for Starbucks!
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