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Carcieri budget redux
Feb 04, 2010 | 565 views | 4 4 comments | 6 6 recommendations | email to a friend | print
Meet the governor’s new state budget…same as the old budget.

Except in this case, for local municipal leaders trying to balance a budget – like Mayor Scott Avedisian and School Committee Chairman Christopher Friel – the general aid cuts to cities and towns are even worse than last year’s.

In addition to the $6 million reduction in the reimbursements from the phase out of the motor vehicle tax in the current year, the city faces a $13.7 million cut next year.

Governor Donald Carcieri, followed the same budget blueprint as last year – cutting aid to cities and towns, asking for changes to the pension system, and relying on aid from the federal government ($95 million) to balance the state’s books.

In sum, if this budget is adopted, the City of Warwick will have reached the peak of a downward trend in a reduction of $62 million in aid and lost inventory tax revenue over the last 10 years.

If the past is any predictor of the future, the legislature will, more likely than not, approve these cuts, if not totally, at least in some portion.

To save the kind of money the city will need to save, it will need substantial, and in some instances, painful concessions from the city’s public employee unions – fire department, police department, teachers, and municipal.

School Committee member Patrick Maloney made the point most succinctly in his comments about the school finances yesterday in saying, “financially, we can’t sustain things at the level we’re at.”

Friel agrees with Avedisian that the school department should share in the cuts. That means the school department, just like the city, ought go back to its employees in order to gain concessions to balance the budget.

In defending his cuts in aid, Carcieri argues that municipal leaders haven’t achieved the same cost savings most city and town employees haven’t made the same concessions as the state workers he’s responsible for.

Avedisian takes issue with that assertion. He points out that Warwick’s firefighters, police officers, and municipal employees all agreed to pay roughly 10 percent of their health insurance premiums last year, and give back 3-5 percent of their pay for four months.

But that still pales in comparison to the state workers, who are paying 20-25 percent of their health insurance co-share payments. Warwick teachers are paying just $11 a week towards their health insurance. Members of the Warwick Independent School Employees pay nothing towards their health insurance. (Though it ought to be noted that they haven’t been given a raise in almost 4 years.)

If the Carcieri budget proposal becomes reality, without substantial concessions, there is going to be a combination of layoffs and a huge tax increase. Thanks to binding arbitration laws, minimum manning, and plenty of other state mandates, taxpayers can rest assured they’ll be asked to pay more next year to make up these aid cuts.

House Finance Committee Chairman Steven Costantino (D-Providence) pointed out that the budget doesn’t formally change the governance structure in Rhode Island – and “could have been submitted in August.”

True enough. But Costantino, perhaps the second most powerful man in state government behind Speaker William Murphy (D-Coventry, Warwick, West Warwick), ought to take matters into his own hands and actually support the removal of the mandates that prevent city leaders from curbing the size of the government to protect taxpayers.

Until that happens, the finger pointing and blame games will go on – and property taxes will continue to increase.

comments (4)
« NOTENOUGH wrote on Friday, Feb 05 at 11:22 PM »
I DON'T CARE HOW YOU PEOPLE DO THE MATH. THIS SALEM WITCH HUNT HAS TO BE RE-THOUGHT OUT. BECAUSE IT'S JUST NOT ENOUGH TO BAIL YOU PEOPLE OUT. 70 PERCENT OF THE BUDGET GOES TO THE TEACHERS. THEY HAVE GIVEN BACK NOTHING. 0 PERCENT. NADDA. EVEN IF MORE BLOOD IS DRAWN FROM THE HARD WORKING IT'S NOT A DROP IN THE BUCKET THE CITY NEEDS. TIME TO THINK OUTSIDE THE BOX AND START CLOSING THINGS LIKE LIBRARIES, SOCIAL PROGRAMS AND BUILDINGS, SCHOOLS, PERHAPS A FIRE STATION EVEN. TIME TO TURN OFF THE CITY LIGHTS AT NIGHT. TIME TO COME UP WITH NEW IDEAS. PERHAPS TRY TO GET SOME MORE MONEY FROM THE STATE FOR HOSTING THIS TERRIBLE AIRPORT...
« private indust math wrote on Thursday, Feb 04 at 10:36 PM »
According to the terms of the new contract, from March 1, 2009 through June 30 a, "5% reduction in base pay per member, in exchange for 2 holidays per member to be "banked""

Also as of July 1, 2009 through June 30, 2010, "The pay schedule from FY 08-09 in the 2006-2009 CBA shall be re-implemented as the pay schedule starting July 1, 2009."

That means the 5% cut in pay was only for 16 weeks but each firefighter gets two paid holidays in return, to be paid out at a future date.

Keep in mind under the terms of the previous contract, firefighter received a 3.75% raise beginning July 1, 2008 that was suppose to extend to June 30, 2009. That means before the new contract was signed they received the 3.75% raise in pay from July 1, 2008 through February 28, 2009, or a total of 36 weeks.

If you do the math that means from July 1, 2008 through June 30, 2009 firefighter actually received a little over a 2% raise factoring in the 5% reduction for the 16 weeks.

The 5% sounds good in the media but in reality they still got raises last year. How many in private industry can say that?

In private industry a pay cut is a pay cut. You don't get banked holidays and deferred uniform allowances and you pay on average 30 - 40% of your health coverage, not the $28 a week paid by city employees (about 10%)

« Check your math wrote on Thursday, Feb 04 at 05:13 PM »
Private Industry - I don't know where you get your info (or math skills) from but they are all wrong. Try and come back with correct information instaead of spreading false informations about cuts and contracts you have no clue about. Not one issue in your comment was correct.

Yes your pay cuts are perminent, but when times are very good you share in the profits and don't run your mouth.
« Private industry wrote on Thursday, Feb 04 at 03:47 PM »
In what private company does the employee take a pay cut for just 14 weeks. Doesn't happen. The cuts are perminate.

So when the mayor claims the employees took a cut last year, he lies.

For example firefighters received a 3.75% raise for the first 38 weeks of the year, then took a pay cut of 5% for the last 14 weeks. That equates to a litlle over a 2% raise for the fiscal year. Also, pension contribution were made at the orginal pay scale.

When July 1st came they got a 5% increase in pay. Is that really a pay cut?

If every employee in the city and schools paid a 25% co-pay on healthcare and took a 3% cut in pay the problem would be just about solved.
 
 
 
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