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February 12, 2009

Layoffs and Municipal Budgets

by at 7:27 am.

New Bedford Standard-Times

[New Bedford] Mayor [Scott W.] Lang put the number of police, firefighters and other city employees who stand to be laid off at roughly 200, but he did not say how that number would be spread across departments….Layoffs will begin this week.

Worcester Telegram

City Manager Michael V. O’Brien says there could be “hundreds” of municipal employee layoffs in the coming months because the budget shortfall the city is facing may be insurmountable.

Lowell Sun

In other business, [City Manager Bernie} Lynch said he has been meeting with the city’s unions to discuss a plan to bridge the remaining $561,994 budget gap for fiscal year 2009 created by Gov. Deval Patrick’s midyear cuts to local aid…So far, I have been very pleased. The bargaining units understand the problems we are facing,” Lynch said, adding that he expects to have a full report for the council within the next three weeks…We are likely to avoid layoffs in this fiscal year, but it is likely that there will be job reductions in 2010,’ he said.

Do you think that it was luck that Lowell will not need to layoff anyone in FY 2009 and that we will, through successful discussions with City employees, figure out a way to close the FY 09 budget gap ($561,994) or was through the proper planning by the City Administration (CM and CFO, especially) in May/June 2008. I am going with the latter.

18 Responses to “Layoffs and Municipal Budgets”

  1. inside Says:

    Good to see Lowell’s unions get it and appear to be willing to help be part of the solution. New Bedford’s obviously don’t get it:

    http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20090212/NEWS/902120393

  2. BPC Says:

    But Lynch didn’t call Mike Lenzi about the Arena negotiations! He must go!

  3. Just Me Says:

    Inside,

    You shuold read the article that you linked to. They already take an hour a week furlow thats 2.5% of a 40 hour week and the mayor wants them to take another ten percent pay cut. That’s to cover the rest of this fiscal year. In July I’m sure they will be laying off more people anyway.
    10% is a lot of money to some people. I would have a hard time financially if I had to take a 10% pay cut.

  4. joe from Lowell Says:

    We’re also in better shape than those other cities because of far-sighted redevelopment and economic development policy over the past two decades.

    Grady Mulligan, if you can hear me up there, your city thanks you.

  5. Eleanor Rigby Says:

    Actually Just Me, the article says some unions found a way around that furlough. So now the Police, Fire and 93 of 450 AFSCME members in New Bedford said no to a wage reduction to save the jobs of brother and sister union members. There will be layoffs in New Bedford. Who wins?

    I guess they don’t understand what a UNION is all about and it makes me glad that I am not part of those unions!

    Lowell is going to face similar issues beginning next fiscal year. Everything, and I mean everything needs to be on the table in order to save jobs and deal with the budget.

  6. K-R-S Says:

    For right now, this FY, our city employees are far better off than many and that is no accident. Prior to this mgr. this city was poised to go into oversight from the state. I’d say overall we’re doing alright.

    Just me…would you rather take a 10% cut and retain your job? Or do you have another job in the wings that would pay you just as much, if not more AND is recessionary proof? WOuld you rather good health insurance for you & your family or not? It’s all in your priorities.
    When I have to ay off staff, it means more work put on the rest of us and forces myself and my staff to work more efficiently.

  7. Anonymous Says:

    Too bad we didn’t have the $45K WASTED on PA Sports!!

  8. elmer Says:

    You mean the money spent to get the Spinners to increase their rent from zero to at least $150,000 and the money that got the arena management people to “suddenly” find several hundred dollars in savings? And I think its $25K that was “wasted”

  9. Anonymous Says:

    Talking about the PA Sports that almost LOST us the Spinners. Everybody should really be hoping and praying that that does not happen.

  10. kpem Says:

    I had a dinner party tonight with 19 people at my home tonight. The main topic people were talking about is the layoffs in New Bedford, Worcester, and Chelmsford,Tewksbury and NH’s financial condition. When I told my friends and family about Lowell’s financial picture they were amazed. They had more of a shortage just in their school departments. They want to know what Lowell did right. My uncle and aunt from Chelmsford said “they hired Bernie”. I had to agree.

  11. waittilnextyr Says:

    The Governor’s budget for FY ‘10 assumed a substantial amount of money from the Federal Economic Recovery bill. However, now that it is about to become reality, I would think there may be somewhat more in Federal money that could be used to recover some of the lost State aid to cities and towns.

    As for the PA Sports effort, the primary benefit of bringing in such a consultant is that they are generally free of the political pressures when developing a plan to save money. If the State took such an approach with respect to the many authorities and the perks that they give out we may be able to get a roadmap for reform that would make the State much more efficient and reduce the continuing drain on the taxpayer.

  12. waittilnextyr Says:

    The Federal Economic Recovery bill includes grants for education, including new construction, for which the tentative allocation to Lowell is $22M. Although that may not be the final number, whatever it is should go a long way toward mitigating underfunding of the schools in the next couple of years. But that doesn’t alleviate the need for more efficiency in Government, as when this bill runs out we cannot be faced with huge deficits once again.

  13. warmer_in_NC Says:

    The Lowell teacher’s union has always said yes to layoff and no to wages freezes. This is typical of all teacher’s unions. That is why MA faces such huge losses of teaches to retirement over the last several years. 50% is some districts.

    Down here in NC, there is no teacher’s union. And the schools are superior to Massachusetts. 79% go on to 4 year college. Over 90% graduate in 4 years. And 8th graders are taking algebra as regular math not honors.

    And one more thing about that “recovery bill.” It includes a “go home and die” provision for those who do not meet “cost effectiveness criteria” under new medicare guidelines. These guidelines are to be extended to private health insurance as well.
    People who do not meet “cost effectiveness” criteria will be denied treatment. Cost effectiveness is determined by dividing the cost of a procedure by the number of years one will benefit from it. This is already done in Oregon. Just ask Barbara Wagner about the letter she got saying the state would pay for assisted suicide but not cancer treatment.

    Hello Paul. How are thing at Cobham?

  14. Eleanor Rigby Says:

    warmer_in_NC wrote in part
    “…Down here in NC, there is no teacher’s union. And the schools are superior to Massachusetts. 79% go on to 4 year college. Over 90% graduate in 4 years. And 8th graders are taking algebra as regular math not honors…”

    Your claim and numbers that North Carolina schools are superior to Massachusetts is somewhat baffling. You say 79% go to college, but NC only has a 66.6% high school graduation rate…

    According to the American Legislative Exchange Council your claim just doesn’t ring true.
    http://www.alec.org/am/pdf/education/2008_report_card/ReportCard_StateSnapshots.pdf

    Massachusetts ranks #3 in the nation for best education,
    North Carolina ranks #30

    Massachusetts ACT Composite scores are #1
    North Carolina #30

    Massachusetts SAT ranks #30
    North Carolina #37

    Massachusetts students taking SAT 83%
    North Carolina students taking SAT 63%

    Mass High School grad rate 74%
    NC High School grad rate 66.6%

    NAEP Score national rankings 2007

    Mass Grade 4 reading #1
    NC Grade 4 reading #19
    Mass Grade 4 math #1
    NC Grade 4 math #35
    Mass Grade 8 reading #1
    NC Grade 8 reading #22
    Mass Grade 8 math #1
    NC Grade 8 math #35

    Average Teacher Salary:
    Massachusetts $56,587
    North Carolina $43,922

    Now, will Lowell teachers accept a pay cut to save the jobs of other teachers? That remains to be seen. I think this time things are different in that there is no doubt in anyone’s mind that the threats of layoffs are real and not a just a bargaining tool.

  15. joe from Lowell Says:

    Thanks, Eleanor.

    That SAT score looks really strange. We’re first, second, or third in just about every category, but 30th in SAT Composite score?

  16. waittilnextyr Says:

    On SAT score, it makes a difference as to what percentage take the test. In NC it was 63%, whereas MA it was 83%. If MA was 100%, it would likely drop in average SAT score. Conversely, if MA were 63% the results of average SAT score would likely be higher. And it may not take much higher to run up near the top of the scale.

  17. warmer_in_NC Says:

    Varies by district.
    Forget the salary part. Can’t compare to one of the highest cost of living states in the nation. Massachusetts would have to pay nearly 2X to be roughly equal in real pay. We took a $60K cut in household income but cash flow is even. And my wife can stay home if she chooses to. (ah, but by doing so she is stealing from taxpayers since our tax bill is lower now)
    The number I quote are from the district my children attend. They went from an advanced charter school in Massachusetts to a more advanced public school.
    Very few 8th graders in MA are taking Algebra. But every student is down here.
    For schools alone I would not move back to MA. And certainly not a regular public school.
    My wife and I proposed taking the “Math At Work” program to her school. Engineers coming in and linking the math they are learning to what engineers do every day. The principal said “these kids aren’t going to be engineers. maybe if we can get plumbers and carpenters to come in.” Now that’s setting the bar high. This was in a Lowell Public school where my wife taught 8th grade math.

  18. Eleanor Rigby Says:

    Warmer_in_NC

    First you write “…Down here in NC, there is no teacher’s union. And the schools (plural) are superior to Massachusetts.”

    Now you write “The number I quote are from the district (singular) my children attend.”

    It doesn’t work that way. You are comparing ONE school to an entire state. I’m sure that if I had the ambition I could pull a reverse on you.

    Comparing schools state by state taking the good with the bad and from what I read MA has it all over NC.

    Another way to look at the salary difference between MA in NC is…”you get what you pay for!”

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