Monday, August 8, 2011
Say it isn't so, Setti
I’ve also been a big fan of the state’s giving cities and towns the right to join the state’s Group Insurance Commission to provide health insurance more affordably for their employees. Setti’s approach was to restate his support of collective bargaining and to say that he’d prefer to negotiate savings that would be equivalent to what could be achieved through joining the GIC. In the wake of concluding contracts with all ten Newton unions, Setti announced success in that regard and further asserted that the increases negotiated were well within the Prop 2 ½ framework, and would save the city $6 million over the next three years.
I’m puzzled about how this could be so. The City maintains it would have spent $100,000 more buying health insurance for its different bargaining units under the state health pool, the GIC. (Savings from the GIC wouldn't kick in during the first year.) But what the city may have saved in reducing projected growth in health care costs may well have been given away in other, salary-related provisions.
Take the three-year police contract, for example. While the average salary goes up only 1 percent the first year, by the time you add cost-of-living increases, step increases, longevity increases and lump sum payments, wages are up 2.8 percent. When you then add health insurance, the total package could well be over three percent. This could well compound and add to the city’s structural deficit. Plus, surprisingly, on June 30, 2014, the last day of this new three-year contract, the Mayor built an additional 10 percent pay raise over the ensuing three fiscal years, which weren’t even being negotiated right now.
Here's another wrinkle. The Quinn Bill started out with the superficially appealing notion of increased police pay for increased education, with the state and cities sharing the costs. But it proved unaffordable at the state level, leading the state to defund it. Not so Newton. Now Mayor Warren has agreed to extend Quinn-like benefits to Newton firefighters for the first time. They are now slated to get ten percent more pay if they get an associate’s degree, 20 percent for a full bachelor’s degree and 25 percent for a master’s degree. With this provision, it's difficult to see how the contracts negotiated stay within the desired 2 1/2 percent increase.
Posted by Margie Arons-Barron