Governor Deval Patrick, in an address to the MMA this morning, announced a mid year local aid cut of $128 million, made against the lottery account and the additional aid account. Governor Patrick also announced that he would make no cuts to the Chapter 70 education aid account, leaving the full burden of the cuts on the city side of government.
The Governor announced that he will refile the Municipal Partnership act, and once again try to give some local taxing options to municipalities. Additionally the Governor will propose a 1 percent increase in the hotel and meals tax statewide, which he estimates will bring in $150 million, which he would propose to use to help offset the big cut coming to local aid in 2010. He offered an undefined ability for communities to reduce “required local contributions” to their local school systems under state formula.
In the area of management rights the Governor flinched, and while we have yet to see the specifics in the area of health care he proposed two items. 1) He proposes lowering the union veto over municipal entry into the state GIC from the existing seventy percent to fifty percent.
2) He proposed a mandate that localities and municipal unions agree to lower municipal health costs to that of the state GIC, and if such efforts fail he would propose to penalize communities by withholding future local aid payments.
The Governor claimed that the management package would give us “new tools” to better manage our communities. He also urged us to call our legislators to talk about the package, and build support for it.
In fairness the Governor, in advocating for local revenues, gives some recognition to the deep hole that municipalities are in, and that is appreciated. But he still proposes, as far as I can see, no meaningful management reforms that would help us to save money NOW. In the area of health care he actually takes a step backwards, giving municipal unions the potential ability to have localities penalized through the cherry sheet by simply not agreeing to health care changes. That is not reform, that is just more of the same. We will await the specific language in the bill before saying much more.
http://services.brightcove.com/services/viewer/federated_f8/271552990
Bill Manzi.com 
Your Honor,
Your friends have done again. Unions take president over citizens.
Looks to me the Governor has given you and the other 300+ mayors and managers (and the folks)the finger.
Do you have an idea what this is going to do to your budget?
Just curious, how much has Methuen saved with the flagman “reform”?
Jules.
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Mr. Mayor:
Forgive my ignorance, but can you tell us how mayors or city managers communicate their ideas up to the state level for consideration in policy?
If this is the gist of what you got, I can see you feeling a little left in the dark. I don’t actually see the possible rationale for the way the governor has laid out the health care negotiation, to be honest.
-FM
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Fred,
With this administration Lt Governor Tim Murray has been the conduit to local officials. We essentially transmit our ideas both directly, and through the Massachusetts Municipal Association and in the Merrimack Valley through the Merrimack Valley Mayors and Managers Association. Don’t see the Governor up in these parts much, but the Lt. Governor has been a frequent visitor.
The Governor’s health care proposal actually refuses to give us the same authority he has with the GIC. He then asks us to match the cost savings that the GIC achieves, but refuses to allow us to utilize the most effective tool in the GIC toolbox that helps it to reduce costs. It is outrageous, and we must wait to see what is proposed in the specific before the heavy criticism comes out, but as of today I am very disappointed.
Bill
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Your Honor,
How much of this cut by the Governor is political and how much “good” budget management?
Is the legislature reviewing its own work for budget savings?
Taking into account Fred’s point, I think the Unions (whose considerations occupy 70% of this piece) and other activists have the Governor’s ear while you and the other city and town leaders have very little. After all, what leverage do all of you have compared to the unions who will provide the Governor with votes?
What leverage do you have?
Who cares if the Lt Governor visits you?
Can you see why I’m cynical?
Jules
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What’s the governor blocking that GIC can do? What’s the tool? Is it with the investment of the funds or renegotiating costs/bidding out?
What do you think about casinos over a gas tax increase? I know they say it’s not profitable in this economy but if they structure them right, I have to think that’s just not true. Casinos to me would be the last places to go under unless you just borrowed way to much to set them up. We don’t need a billion dollar complex for slots, we already have one in South Boston, the convention center not used often enough.
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Why doesn’t the state just take over funding of schools and managment/performance oversight OR give Mayors the power to control that department’s budget just like the budgets of all other departments..then there is a balanced approach ..not arbitrary cuts on one side of government.
The highest cost center for health incurance is with school employees most of whom do not live in Methuen and many not in the state.
The Mayor is right…instead of more talk Governor..give local officials the same power you have to manage health care costs. Do it now!
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Agree 100% with Bob Leblanc.
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Ditto, but won’t happen No one gives up power.
Unions = Votes.
Votes = Power
Therefore: Unions = Power.
How does on correct that one, especially if it is encumbered on the legislators who benefits from the power to change it. Never happen.
Jules
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