LETTERS

A plan to address legacy costs before it’s too late

Posted 7/2/15

To the Editor:

No one wants to admit it. No one wants to participate in it. No one even wants to talk about it. Case in point: I asked Scott Small, the president of the Municipal Employees Union, …

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LETTERS

A plan to address legacy costs before it’s too late

Posted

To the Editor:

No one wants to admit it. No one wants to participate in it. No one even wants to talk about it. Case in point: I asked Scott Small, the president of the Municipal Employees Union, “Scott, can we agree that Warwick needs some kind of pension reform?” His response was, “I’ll answer that question in 30 days.”

30 days?? 30 days?? It’s going to take him that long to even answer yes or no?

That’s how unpopular the topic is. It’s like prisons. Everybody acknowledges we need them but “not in my back yard!” With Warwick pension reform, the topic is so unpopular that it takes 30 days to get an answer to even the smallest of questions.

I was even advised not to have an opinion on the matter because any opinion I offer might hurt me politically. But I don’t think that is fair to the 80,000 taxpayers that I have accepted responsibility to, so here goes.

I completely understand why this topic is so sensitive. Decades ago Warwick employees accepted less money in their paychecks in return for a “fair” pension that included “fair” health benefits. No one back then (not me, not the unions, not Blue Cross, not the taxpayers… no one!) expected the cost of these benefits to spiral out of control the way they have. But they have, and the simple fact is we have a growing problem that can’t be ignored. The Warwick employees deserve “fair” and the taxpayers deserve “affordable”. And we have 2 directions we can go in. Do nothing and we end up like Detroit, Central Falls, and Coventry; in bankruptcy court with a solution that no one wants or address the problem today and save our tomorrow.

I have a plan. Please be open-minded about it. You may not like it and I will accept that but please don’t prejudge it.

I called Blue Cross and United Health. I used to handle health benefits for 51 employees here at my mortgage company, Bankers Mortgage Corporation when the mortgage industry warranted us having five offices. I have confirmed that health benefits with a co-pay and a deductible cost the Warwick Taxpayers about half the premium of benefits without. Warwick has employees that are enjoying these benefits with neither a co-pay or a deductible.

Warwick also has employees with lifetime coverage which when Medicare kicks in amounts to double benefits at double the cost to Warwick Taxpayers. Finally we have some employees were both husband and wife have family plan coverage all paid for by the Warwick Taxpayers.

But the challenge is getting these recipients of “too much coverage” to give up the excess and save Warwick Taxpayers millions of dollars. Here’s how we can do it. Invite them all to participate in the reduction of the coverage and give them a check for half of the savings! And make it transparent so they can calculate the total money saved themselves. Like a tax refund check from the IRS our retirees will benefit greatly from the “found money.” I believe that if you give our retirees a share of these savings they will step up in great number. And I think we should make it voluntary. Those that are uncomfortable with it should not be required to participate but those that do will be part of the win-win solution to Warwick’s expensive problem that is growing day by day.

This is part of the Corrente Plan for Warwick. It harms no one and is designed to be “fair” to Warwick participants and yet “affordable” to Warwick Taxpayers at the same time.

I welcome your comments.

Richard Corrente

Democrat for Mayor, Warwick, 2016 

Comments

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  • Notbornyesterday

    I pay a 20% and have deductibles, what employees don't pay a co pay?

    Thursday, July 2, 2015 Report this

  • falina

    Sounds reasonable and fair! Who could possibly object?

    Thursday, July 2, 2015 Report this

  • Scal1024

    On one hand he says he is going to be honest and make tough choices. Yet on the other hand, he's going to make it a volunatry program because he knows if he mandates it he'd never get elected. Making this voluntary will attract no one. I applaud Mr. Corrente for a different idea but it seems like a he's trying to please everybody, which in turn pleases nobody. No retiree would opt-in and I'm not sure I'd blame them.

    Friday, July 3, 2015 Report this

  • richardcorrente

    Dear Sca11024,

    Thank you for your sincere comments. I differ with you however, in the "No retiree would opt-in." statement.

    In Texas the Dallas Morning news of August 2011 reported that the Texas school boards paid out more than $7.7 million in severance pay to school superintendents. Texas bought out 71 superintendent pension contracts on a voluntary basis. Those who participated got what they preferred, a lump sum now, rather than small payments monthly. The Texas taxpayers saved "multiples of the $7.7 million" and everyone agreed it was a win-win situation. You stated that I am "trying to please everyone" and you're right! I am. And this idea DOES.

    As for the comment "No retiree would opt-in"; if that does happen there would be "no foul, no harm". But if even one does, the program will be a success and I believe there will be a hundred or more retirees that actually do.

    Sca11024, the 80,000 taxpayers that I have committed myself to will be well-served with this idea and I would like to discuss it with you personally.

    Pension Reform is going to be a team effort and, quite frankly, I could use your help. You seem open-minded, intelligent, and unafraid to respectfully disagree when necessary. That is the exact kind of constructive criticism I am looking for. Please call me at 401-338-9900. Thanks again!

    Tuesday, July 7, 2015 Report this

  • richardcorrente

    Dear "Not born yesterday",

    That is the best question yet! "What employees don't pay a co-pay?" I have been trying to get the answer to that for over 7 months and no one will give me a straight answer. I respect that you have a 20% co-pay AND a deductible because that SIGNIFICANTLY reduces the cost of your health benefits to the 80,000 taxpayers that I have promised to serve. My "Corrente Plan" would offer a similar benefit to ALL retirees on a voluntary basis, and share the savings with the taxpayers AND the retirees.

    But let's look at this in a "Not born yesterday" point of view. If we can't improve the current system, it costs the taxpayers nothing. If we do (and I sincerely believe we will) then we could save the people who are paying the tab, the Warwick Taxpayers, a bundle. I compared Warwick with Cranston and spoke with Jim Dillon of the Cranston School Dept. who told me that Warwicks' administrative costs are DOUBLE that of Cranston, He also said that Cranston co-pays are 25%; that their pay cuts were over $5 million and that the percentage of union labor is between 40 and 50 % as opposed to Warwick which is almost 100%. My new friend, I think you and I can agree on 2 things: 1. Warwick NEEDS some sort of pension reform and 2. No Warwick Taxpayer (including you and me) was "Born Yesterday". Great nickname!

    Tuesday, July 7, 2015 Report this

  • Notbornyesterday

    If it saves the city money I'm all in. Where do you come up,with cash for pension buyouts....

    Tuesday, July 7, 2015 Report this

  • richardcorrente

    Dear "Falina",

    Thank you for your honest comment, your support and your trust. The most important quality of our next Mayor is to be "reasonable and fair". Every time I get ready to open my mouth I stop and think about that. Every idea; every plan I have, is an absolute commitment to be fair to the retirees, fair to the unions, fair to the employees and fair especially to the 80,000 taxpayers that are paying the bills. Warwick Taxpayers are an 80,000 member-strong group of people that are not just "taxed enough already", they are TBAR'd. By that I mean they are "Taxed Beyond All Reason". Warwicks' unfunded liabilities, (debts) are presently many times their assets. Taxing more and spending more is a recipe for disaster. In 2006 then Florida Gov. Charlie Crist again raised taxes and Florida lost over 832,000 jobs. In 2011 Rick Scott replaced him as Governor, reduced taxes by $500,000,000 and jobs increased by 600,000!! If we do that in Warwick we will attract (for the first time in 10+ years) homebuyers, business owners, and TAXPAYERS. We have lost over 5,800 taxpayers and over 4,666 businesses in the last ten years. I will reverse that trend or die trying. Warwick needs this change and I promise you Falina, we will succeed. I love Warwick just as much as you obviously do.

    Keep writing. Or better yet, call me at 401-338-9900. I would love to hear your ideas. Thanks again Falina.

    Tuesday, July 7, 2015 Report this

  • richardcorrente

    Dear Notbornyesterday,

    "If it saves the city money I'm all in."

    Me too! And don't worry, if we can pay a few dollars to save our taxpayers many dollars, we'll find the seed money! And it applies to benefits-buyouts as well as pension-buyouts. Do you think if we (you and me) ask the city council to spend the buyout money today in order to SAVE our tomorrow they could possibly say "No?" Anything that saves our taxpayers money without hurting our retirees or current employees is a win-win. I think they would also be "all-in!"

    Notbornyesterday, I like the way you think. Can we have coffee or lunch? I will bring a notepad. On me.

    Rick

    Wednesday, July 8, 2015 Report this

  • Scal1024

    I agree with you Mr. Corrente that the cost of administration for the Warwick School Department is too high. I just think if schools are closing and teachers are being laid off, than the administration should be consolidated as well.

    Wednesday, July 8, 2015 Report this

  • Notbornyesterday

    Mr. Corrente, I will entertain all your ideas. Some of them sound great. I love to see different ideas and citizens that work together can make a difference. Please promise me you will not associate yourself with Warwick Watch (Stacia, Rob, Bob, Roger). Their negativity completely erases their points. Anyone associated with them in my opinion will never be a serious candidate. How can this group want to lead when all they do is bash those that would work for them...

    Thursday, July 9, 2015 Report this

  • Scal1024

    You don't need the Warwick Watch page Mr. Corrente. You seem like a smart, reasonable person. You present your points in a clear way that doesn't resort to personal attacks. Aligning with that group will create a perception of partisanship that voters will not accept. Distancing yourself from these folks would go a long way towards showing voters you truly want to move us forward. I already applaud you for being FOR things and not just against the mayor. Not that you need advice from me, but as someone who follows city politics I think it would be a nice step in the right direction.

    Thursday, July 9, 2015 Report this

  • Thecaptain

    Here we go.

    Saturday, July 11, 2015 Report this

  • Scal1024

    Here we go? The RI family shelter closes and Warwick Watch blames the city for cutting their funding and implies its the cities fault. Even though it was an $8,000 cut OVER 10 YEARS which is minimal!!!! Never was it mentioned on the page that the shelter recieves state and federal funding for support. Politicizing the closing of a homeless shelter is problem one of the most disgusting things I've heard. You guys fail to gain support through your ideas (because none of you have ANY!!!) So you choose to lie and distort things instead. Warwick sees right through you guys, keep focusing ypur attention on bathrooms, that's a real winner come election time. Pathetic!

    Sunday, July 12, 2015 Report this

  • FASTFREDWARD4

    that shelter in ward 4 was a big problem from day 1. Lots of people in the ward is happy to see that going. They all came from prov with there 10 kids and there boy friends standing on westshore rd. Hey captain are you going to play pick up the buts. HERE WE GO

    Thursday, July 16, 2015 Report this

  • richardcorrente

    Dear Sca11024,

    Thank you! I agree with what you are saying and will always try to offer a solution with every problem. As for the people you mentioned. Didn't Stacia just discover 19 jobs that the mayor hired without posting? Didn't Rob Cote just save all Rhode Islanders over a million dollars in car taxes. I agree with you as to my techniques. But don't "they" have just as much right to their tactics, so long as they don't break any laws? Isn't that what Democracy is all about?

    Stay well.

    Rick

    Wednesday, July 22, 2015 Report this

  • Scal1024

    Rick that is the problem with this group. They do whatever they can "legally" and make it a point to say that. What they don't realize is that "legally" doesn't always mean right. It's not right to take pictures of 16 year old kids working regardless of how the jobs were posted. It's not right to follow firemen to stop & shop when they're picking a few things up. It's not right to falsely state the closing of a homeless shelter was closed due to city cuts when it wasn't.

    This many false narratives, exaggerations, distortions are sadly what politics is turning into. Filming weeds in vacant parking lots isn't a pressing issue. Sure there are occasionally issues where I hear good ideas, but when any group cries wolf so many times it begins to fall on deaf ears.

    Wednesday, July 22, 2015 Report this

  • richardcorrente

    Good point Sca11024,

    I agree that "they" sometimes exaggerate, but isn't it their right to tell it as they see it, even if it differs with everyone else? And doesn't it open everyone's eyes when an issue is explained in "exaggerated" terms rather than a bland version that doesn't get noticed?

    Stay well sca11024.

    Rick

    Wednesday, September 9, 2015 Report this