Hey, there! Log in / Register
Menino to unions: Wage freeze or layoffs
By adamg on Tue, 01/13/2009 - 7:41pm
Mayor Tom Menino tonight called on city unions to accept a wage freeze or face "painful, painful" layoffs as the city grapples with declining revenue.
In his state of the city address, Menino said the city is facing a $140 million shortfall in its annual budget, due to declining tax revenues and anticipated cuts in state aid. The city has already saved $30 million by refinancing debt, but "we cannot tighten our belts out of the situation," he said. Rather than cutting deep into core city services, he said he will try to convince municipal unions to accept a one-year freeze on wages. With that, "I can protect core services for residents."
"$140 million means cuts in core services, it means cuts in core services, we're talking about real pain for working families. I don't want that. ... We have to work together to move our city forward. The state of the city is in our hands and for that reason, I know the state of our city is strong."
Also, Menino gave a strong hint he'll be running for re-election this year, concluding his speech by saying he would work tirelessly to improve Boston "this year and in the years ahead."
Neighborhoods:
Free tagging:
Ad:
Support Universal Hub
Help keep Universal Hub going. If you like what we're up to and want to help out, please consider a (completely non-deductible) contribution.
Comments
What would a successful campaign have to do to unseat the Mayor?
What would a successful campaign have to do to unseat the current Mayor?... is it impossible?...
What are your objections to the current Mayor?
Why do you think he should be unseated?
well obviously the zak
well obviously the zak doesnt think that the rest of the world is in a recession and that Boston doesnt need to cut back on expenses
zak != yak
I am having a difficult time connecting the so-called dots between The Zak's question and your statement.
The implication that I got
The implication that I got from the "question" was that Hizzonar should not be reelected and that someone should run against him. The fact that he would say that after this story implies that he thinks that because of the need for Wage freezes or layoofs Menino should be reelected.
I think he triggered off the mention of Menino in general
Based on a quick skim of posting history, I think "the zak" is either a pseudonym for a certain long-time Internet personality known for seeming non sequiturs, or spiritual kin of that person. :)
Ive seen that guy post under
Ive seen that guy post under his name and as the zak, Im thinking that the zak is a robo web crawler?
Tough Times
I work for a financial services firm in Boston. A couple of months ago our CEO told us there would be no raises in 2009 (we always got a cost-of-living raise every year!) Our company will take a hit because of the financial meltdown. Yet our CEO said he won't lay anyone off. A friend of mine, who works for a non-profit, has to take two days off per month without pay (in effect, a 9-10% pay cut). The funding, which his orginization depends on, has been reduced. Yet, isn't that better than maintaining the current pay structure while laying off 10% of the employees? I have no problem with city and state employees sharing in these hard times.
Miss the speech?
Here it is, via NECN:
Tank woo
Will this "freeze" be like the "hiring freeze?"
I expect the government employee unions to express outrage and anger over having to face reality.
He's running again?
Good. Can't wait to vote against him...again.
Petty commentary on the speech
David Bernstein breaks it down, noting everything from how many times Menino used the word "neighborhood" (and which specific neighborhoods he mentioned) to the fact that Charles Yancey actually made it to the speech on time.
And more serious analysis
Bernstein notes Menino's political mastery in handling the whole fiscal-hole issue, which started with the leaks about massive police layoffs and ended with a wage-freeze call that left potential opponents completely unprepared:
But they still have an opening, he adds and explains.
FY '10 budget - no revenue lost - lots of expense increases
The Pro forma budget for FY '10 is available at :
http://www.cityofboston.gov/TridionImages/02%20Sum...
(this does not reflect $60 million in possible state aid losses, or losses in things like excises and licenses - bottom line - there will almost certainly not be a revenue decline - we will have flat or slightly higer revenues in a worst case scenario)
Amazing - even before all the cuts they were projecting a $33 million LOSS - some expense highlights:
1)Schools - up $45 million even though we will have 500-1000 fewer students and we are closing schools and we saved $10 million in additional fuel costs from last year
2)Debt service - up $10 million - I thought the mayor said we saved $30 million on refinancing - does that mean debt service is up $40 million without refinancing
3)The one legit increase not the city's fault is state assessments - mostly for the MBTA - comes to an extra $14 million
4)Note pensions are up 4% - and it will get worse
5)See that "OPEB" stabilization fund - that's a 1% down payment on retiree healthcare that we've promised away
Hold on to your wallets boys and girls!
This $140 million "shortfall" is all spin - there's no shortfall, this is the equivalent of saying - I spent like a drunken sailor and owe a lot of people a lot of money and now it's my boss' fault I can't pay it back because he won't give me a raise that he can't afford!
Hmm, Schools are not a
Hmm,
Schools are not a "legitimate" service..... funny.
Thanks, Steve. Some facts
Thanks, Steve. Some facts and stuff. I'll check the link when I get some time.
freeze vs. layoffs
When times are tough and budgets are short, it's better to freeze wages than to lay off people. The financial and psychological effects of layoffs are especially devastating in an economy like this one.
True labor solidarity means sharing burdens rather than tossing a few off the side of the boat. Assuming that the City is dealing with the unions in good faith, the public employee unions could give their members some peace of mind about job security and look good in the public eye by opting for an approach that saves jobs.