Most Read
    Image 01 Image 02 Image 03

    Providence update – big union concessions prevent bankruptcy

    Providence update – big union concessions prevent bankruptcy

    I’ve written numerous times over the past two years about the horrible fiscal mess David Cicilline (D-RI01) left behind in Providence when he was Mayor, and how he concealed the problem from voters during his 2010 congressional race.

    The city has been teetering on the verge of bankruptcy, but a tentative deal just struck with city unions likely will prevent a bankruptcy through union pension concessions and by moving retirees to Medicare:

    Under the deal, automatic pension increases would be suspended for a decade, future pensions would be capped and the most generous pension plans would be eliminated. The deal would also move retired city workers ages 65 and older into Medicare.

    The changes are expected to help the city save $18.5 million next fiscal year….

    Paul Doughty, head of the local firefighters union, called the agreement “a bitter pill to swallow” but better than bankruptcy….

    Under the proposal announced Wednesday, all cost-of-living increases would be suspended until fiscal year 2023. Future pension increases would be capped and only some retirees would be eligible.

    The agreement ends a lawsuit filed by retired police officers and firefighters that attempted to block the city from shifting retirees to Medicare coverage to save money.

    The city aims to save about $40 million over the next 10 years by moving retirees over the age of 65 to Medicare. Under the agreement the city would agree to pay for some Medicare benefits.

    Now that the City is savex, expect Cicilline to try to take credit, as if his lies about City finances have been washed away by his successor’s success.

    DONATE

    Donations tax deductible
    to the full extent allowed by law.

    Comments


    Since the Cicnci Admin signed off on Compounding Cola’s This is as close to reform as the City has ever been. Cicilline will find a way to claim victory. COnsider the Irony of the Democratic party in Rhode Island. As former Mayor of Providence David Cicilline leaves the City’s finances circling the bowl, Incoming Mayor Tavares in the course of shoveling the train load of Horse —- that Cicilline left behind, Tavares Endorses Cicilline in his re-election bid…


    Leave a Comment

    Leave a Reply

    You must be logged in to post a comment.

    Notify me of followup comments via e-mail (or subscribe without commenting.)

    Font Resize
    Contrast Mode
    Send this to a friend