Sunday, April 17, 2011

Budget Alert


Please consider contacting your local legislator (letters attached below) to push for passage of municipal health care reform.  Franklin and its employees are ahead of the curve on this issue, and we've been able to realize significant benefits over the past few years by working together to implement changes to health care plan design outside of collective bargaining.  Our local efforts have saved money for both the employees and the town.  It is time to codify the right of a municipality to manage this out of control cost.  The measures below do this, while maintaining many of the collective bargaining rights of unions.

Thanks for your consideration.

Tina Powderly


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MMA Alert 617-426-7272






HOUSE BUDGET COMMITTEE RELEASES FY 2012 BUDGET PROPOSAL
·  POWERFUL MUNICIPAL HEALTH INSURANCE REFORM INCLUDED
·  MAJOR LOCAL AID ACCOUNTS MATCH GOV'S BUDGET
·  PLEASE CALL YOUR REPRESENTATIVES TODAY

Earlier this afternoon, the House Ways and Means Committee released their proposed fiscal 2012 state budget, which seeks to close an estimated $1.9 billion shortfall. In a major development for cities and towns, the House budget document includes a strong and powerful municipal health insurance reform proposal that would provide meaningful relief for cities and towns.

Despite the state's difficult fiscal condition, the House Ways and Means budget would fund the Unrestricted General Government Aid, Chapter 70, PILOT, Regional School Transportation, and Special Education Circuit Breaker accounts at the same level proposed by Governor Patrick earlier this year.

The House is in the process of adopting an order providing that amendments to the budget must be submitted by Friday, April 15, with debate commencing on Monday, April 25. The House will finish its budget deliberations by Friday, April 29.

PLEASE TAKE ACTION TODAY:

CALL YOUR REPRESENTATIVES AND ASK FOR THEIR COMMITMENT TO SUPPORT THE MUNICIPAL HEALTH INSURANCE REFORM PROVISION WITH NO WEAKENING AMENDMENTS

SEND A FOLLOW-UP LETTER TO YOUR REPRESENTATIVES (DOWNLOAD A SAMPLE BY CLICKING HERE)

SEND A LETTER TO THE EDITOR TO YOUR LOCAL NEWSPAPERS (DOWNLOAD A SAMPLE BY CLICKING HERE)

HOUSE LEADERS PROPOSE FULL MUNICIPAL HEALTH INSURANCE REFORM

The MMA has strongly endorsed the municipal health insurance reform proposal included in the House Ways and Means Committee budget, and commends Speaker Robert DeLeo, Chairman Brian Dempsey, Vice Chairs Stephen Kulik and Marty Walz, the members of the House Ways and Means Committee and the Speaker's leadership team for recognizing the need for reform, and proposing a plan that offers powerful relief for local taxpayers and all communities. (You can see a copy of the MMA's statement by clicking here).

The plan proposed by the Speaker and the House Ways and Means Committee offers real reform for cities, towns and taxpayers. The measure would give cities and towns the same power the state has to implement necessary cost savings changes in municipal health insurance plans outside of collective bargaining, saving local taxpayers up to $100 million. The reform proposal would also require all municipalities to enroll all eligible retirees into Medicare (in Section 44 of the HW&M budget).

The key provisions of the reform proposal (Sections 46 and 47 of the HW&M budget) are as follows:
  • As drafted, municipalities that accept the new law would be able to modernize the design of their employee health plans outside of collective bargaining, with a guarantee that all municipal and school employees would still have health plans that are the same or better than what state employees receive, meaning no city or town could use this authority to implement higher co-pays or deductibles than the state.
  • Communities would also have the power to join the Group Insurance Commission outside of collective bargaining if they demonstrate that joining the GIC would provide greater financial relief than making plan design changes on their own.
  • Ten percent of the savings or costs avoided in the first year would be set aside to fund a health reimbursement account that would be structured based on an agreement between municipalities and their unions.
  • Cities and towns would still negotiate any change in the employee-employer premium share, giving municipal unions more bargaining authority over health insurance than state employee unions. Any new co-pays or deductibles higher than the GIC plans would have to be approved in collective bargaining. The bill simply gives plan design parity and options to cities and towns.

The MMA will be working with the Ways and Means Committee to advocate for the smoothest possible local acceptance mechanism. As currently written, local acceptance would be the same process as used for the original Chapter 32B, which is Mayor and Council in cities, and a referendum in towns. The committee is aware that this language is a major problem, and is committed to working with the MMA to fix the local acceptance process to ensure swift and smooth implementation in communities.

Municipal employees would benefit from the legislation in three ways – union jobs would be protected, employee premiums would be lower, and communities would establish health reimbursement accounts to offset a portion of the costs for those employees who are heavy users of the health care system.

Please Call Your Legislators Today And Ask For Their Commitment to Support the House Ways and Means Municipal Health Insurance Reform Proposal With NO Weakening Amendments. Key points to make are:
·  The legislation proposed by Speaker DeLeo, Chairman Dempsey and the House Ways and Means Committee saves taxpayers money, preserves essential local services, protects municipal union jobs, guarantees equity with state employee health benefits, and still leaves municipal unions with more bargaining power than state unions. This is a balanced, meaningful, fair and transparent reform that would allow cities and towns to save $100 million in avoided health insurance costs.

·  Communities are in fiscal crisis, and municipal health insurance reform offers meaningful relief that taxpayers deserve. Skyrocketing health insurance costs are forcing cuts in essential municipal and school services, and forcing the elimination of teachers, firefighters, police officers and other key employees from local budgets. Cities and towns will use this reform to provide relief for local taxpayers, protect essential services, and preserve thousands of municipal jobs.

KEY LOCAL AID ACCOUNTS IN THE HOUSE WAYS AND MEANS BUDGET FOR FISCAL 2012

The fiscal 2012 state budget recommendation filed by the House Ways and Means Committee would generally match the local aid numbers in the Governor's budget filed earlier this year. Unrestricted General Government Aid would be cut by $65 million, but the state appropriation for Chapter 70 school aid would increase by $140 million.

Preliminary Cherry Sheets for fiscal 2012 showing estimated municipal and school aid amounts based on the Governor's and House Ways and Means budget recommendations have been posted on the Division of Local Services Web site.

The proposed cut to the Unrestricted General Government Aid (UGGA) account, formerly Lottery and Additional Assistance, would mark the fourth year of cuts and result in a total drop of $481 million, about 37 percent, since fiscal 2008. The HW&M budget would level fund the Cherry Sheet Payment-in-Lieu-of-Taxes account at $25 million and fund the Regional School Transportation account at $40.5 million, the same level as House One and Fiscal 2011. Funding for the Police Career Incentive Pay Program would be eliminated (the program is currently funded at $5 million). The bill also includes small increases to the Charter School Reimbursement Account to fully fund the Commonwealth's estimated obligation, and to the Regional Library Aid account.

The Senate President announced today that the full Senate would adopt a local aid resolution tomorrow, agreeing with the proposed House local aid levels for Chapter 70 and Unrestricted General Government Aid. Full debate on all other accounts will wait until the Senate takes up the budget in late May.




If you have any questions, comments or suggestions, feel free to contact us.
You can also always find additional information on our website at:
www.mma.org




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