Left In Lowell

Member of the reality-based community of progressive Massachusetts blogs

October 30, 2008

Why My Commenters Are the Coolest Ever

by at 9:52 am.

I have to frontpage this exchange in comments of our first Bernie Lynch podcast, because it’s a perfect example of how people who are engaged and interested, and government officials who are true public servants, can work together to make sure Lowell keeps moving forward. Who needs the agenda filter at the Lowell Sun? (Some typos fixed, and the comments are mixed together into Q&A format.)

waittilnextyr: On the subject of the health care trust fund, and the need to recover that to be sufficient given the escalating cost of healthcare, I understand his approach to raise the current rates into the account, but I would have a concern that a 10-12% rate of increase is unsustainable, both for the City as well as the employees who pay their share of the bill. Is there hope that State and Federal approaches to healthcare could limit this cost escalation?

Bernie Lynch: On Health Trust Fund. The idea of 10-12% is tough and hopefully will not need to be sustained for a long period. It is what we’ve essentially been doing the past couple of years and generally in line (maybe a bit higher) than other communities. Our problem is basically a number of years in the making. For about three years, 05-07, the Trust Fund was underfunded likely to put off the budgetary impact and to keep rates low for employees. During this time rates should have gone up by 8-9% but instead grew by only about 2%. Ultimately, there is a day of reckoning. There is a risk of the fund running out of money….a problem that has caused major issues in other communities. Because of this the state now enforces certain funding levels. Certainly, some state or federal changes could effect future costs.

waittilnextyr: On the subject of the risk to State aid for FY2009, and the likely reduced amount for FY 2010, what actions are the City taking now to build reserves to smooth out the effects of potential cutbacks? Does the City Council get quarterly financial reports to compare with the budget plan?

Bernie Lynch: On Finances, we have been issuing quarterly reports to the council for the last couple of years. We just provided a report on the first quarter that is fairly positive. Costs are running essentially as projected and revenues are doing okay primarily because of conservative budget estimates. We did anticipate some of the economic problem…but certainly not to the extent that we’ve seen over the past six weeks. If we’d have seen that coming we probably would be doing something different career-wise. I am hopeful that we will make it through this year but the bigger problems are in FY10 and FY11. We are well into preparing for various scenarios and have put certain steps into place to control costs in the hopes of making future cuts easier and building some budget surplus to help cushion the pain. Obviously, we’d be better off if reserves were already in place. I would add that we always seek cost savings through careful spending and evaluating filling positions. We are now at a point of not only seeking savings but evaluating service needs at this time given conditions.

waittilnextyr: On the subject of the Hamilton Canal, it was good to hear that the City and Trinity were to sign off on the plan today. But, will the reductions in spending by the State affect the progress with fewer or smaller grants? The manager seemed to say the Trinity’s financing was solid, so can we be sure that the design planning will start immediately and construction will begin in the Spring as planned?

And to the degree that funding is required for infrastructure development for the Hamilton Canal, is there a possibility that Federal Stimulus round 2 will be an opportunity to finance the work in the short term?

Bernie Lynch: On the Hamilton Canal project we remain confident that the project will commence in the spring. To date the developer has been successful in interesting investors. They seem to be impressed with the project, the experience of the developer and the stability/potential of Lowell. Of course things could change but so far things are moving forward. State support is in the works and we are optimistic that the current operational budget issues will not be a major impediment as the needed funding is through borrowings, and there seems to be support for projects that grow the economy.

We are watching the federal stimulus package to see what develops. Certainly the HCD project is one possibility but we also have some other infrastructure projects that are needed. We’ll likely have to see what the parameters of such a program look like.

Hope I’ve addressed all the questions raised.

Yup, I’ve got some of the most thoughtful and engaged commenters ever. You rock!

6 Responses to “Why My Commenters Are the Coolest Ever”

  1. kpem Says:

    waittilnextyr always has great posts and a great way of explaining his or her viewpoint! Always appreciate his/her posts.

  2. trying to stay anonymous Says:

    Manager Lynch: “We are now at a point of not only seeking savings but evaluating service needs at this time given conditions.”

    As a city employee I read this as service cuts, What can we eliminate? This likely isn’t just about the budget woes, but re-evaluating core city services. i.e. my job is now on the line if things don’t get better fast (it won’t) and probably even if it does.

    Watch out 1705, DPW, LFD and possibly (Though doubtful)police and teachers. Regardless of Question 1 the writing appears to be on the wall, layoffs are coming.

  3. waittilnextyr Says:

    I would think a good place to look for savings would be in the snow and ice account. Business as usual leads to $2M budget deficits in that account as happened last year.

    There has to be strict enforcement of no-parking bans to make the job of snow removal easier. And there should be limits on how many times a contractor plows a given street well after the snow has stopped falling.

  4. joe from Lowell Says:

    Is this the year we lose the police horses?

    Shame, but whattyagonnado?

  5. Lynne Says:

    As a city employee, you should always be concerned whether or not some city jobs will be eliminated. As do the rest of us in the private sector. Especially in tough times. Sorry, but it’s true.

    However, there’s necessary or useful cuts, and there’s mindless cutting. No one can say that there’s NO way we can’t gain some efficiencies or reduce costs by streamlining - and that includes cutting the workforce. However, I would not be for cutting the budget simply to reduce the budget - cutting off our nose to spite our collective face. I believe that there are necessary and essential services that our community needs, and I expect any process of belt-tightening to take that into account.

    We’ve already lost so much ground, it’s hard to see where cutting won’t actually be cutting something essential. Let’s at least hope for level funding for the cities and towns for next year.

  6. trying to stay anonymous Says:

    I don’t expect to have guaranteed job security anymore than anyone else. However either the city services are essential public goods or they aren’t, and those services are provided by the employees. You don’t need cops, teachers, 911 operators, public works and firefighters today, but not tomorrow. There isn’t much productivity to be gained especially by emergency services. You can’t create more emergencies, but you still have the same population and infrastructure to protect.

    If they aren’t essential government functions we shouldn’t be paying tax money for them in the first place. I read the manager’s comments to mean future decreased service levels. They are analyzing services in light of what we will have for dollars coming in. That is an attempt to look for efficiency, but if true does it not assume we overspend on services currently? Whether that means laying off DPW and privatizing maintenance functions on a contract basis, less patrol cars, larger classes, fewer code/health inspections or closing firehouses for example, I don’t know.

    Either you need an essential service or you don’t. There is a limit on how far you can cut something before it starts to cost you somewhere else. How does increased crime or a burned out building affect a neigborhood property values and thus asessments? Good luck finding a politician or department head willing to stick their neck out and risk their seat or pension saying (truthfully) you can’t go any lower, this is what we need to do our job. The concept of preparing basic/good/better/best budget scenarios is valid, but I guess I think there are some essential things you shouldn’t ever cut and some things we probably don’t need to provide in the first place. If the possibility exists that jobs need to be cut, why the rush to give raises this year?

    I think expecting level funding is unrealistic from the sounds of things at the state level. I hope I’m wrong.

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