Business Groups: Give Cities, Towns the Tools to Operate Efficiently
Posted by Brian Gilmore on Tue, Jun 15, 2010 @ 11:44 AM
A coalition of business groups led by Associated Industries of Massachusetts (AIM) and the Massachusetts Taxpayers Foundation (MTF) today urged the Legislature to help local government preserve essential services through efficient design of employee benefits.
The coalition supports granting Massachusetts municipalities the ability to alter health-care plan design without having to bargain each change with municipal unions, and to require by statute that all eligible local retirees enroll in Medicare as their primary source of health care coverage.
These reforms are urgently required.
Since 2000, municipal health insurance costs have increased at double-digit rates - more than five times the rate of inflation- growing from 6 percent of municipal budgets in 2001, to a projected 20 percent by 2020.
The groups support allowing municipalities to change their health benefit design outside collective bargaining, as is the case at the state level. The change would save cities and towns roughly $100 million in the first year alone and as much as $2 billion annually by 2020. Those saving dwarf the benefit from all other pending municipal relief proposals.
The coalition believes that maintaining the quality of local schools and other services is critical to the economic future of the commonwealth. However, exploding health care and pension costs are forcing cities and towns to curtail services and shed jobs in order to balance budgets. Unless these employee benefit cost issues are addressed, cuts and layoffs will intensify over the next several years
The coalition urged members of the Legislature and Governor Patrick to approve the legislation necessary to give communities the authority to make changes in health care plan design before the legislature adjourns its formal 2009-2010 session on July 31.
The coalition includes Affiliated Chambers of Commerce Greater Springfield, Assabet Valley Chamber of Commerce, Boston Municipal Research Bureau, Cape Ann Chamber of Commerce, Cape Cod Chamber of Commerce, Chicopee Chamber of Commerce, Fall River Area Chamber of Commerce, Massachusetts Business Alliance for Education, Metro South Chamber of Commerce, NAIOP Massachusetts, National Federation of Independent Business-Massachusetts, North Central Massachusetts Chamber of Commerce, North Shore Chamber of Commerce, North Suburban Chamber of Commerce, Plymouth Area Chamber of Commerce, Tri-town Chamber of Commerce.
To join the business coalition or to learn more about the campaign contact Brian Gilmore, Executive Vice President of Public Affairs for AIM, by calling 617-262-1180 or email bgilmore@aimnet.org. Also, join and follow the latest news through Facebook.