It's not just Walker and other evil Repugs that are demonizing and scapegoating public service employees in order to close budget holes in this nation's cities. In the capital city of the biggest (and damn near bluest) little state in the Union, the Democratic mayor and the democratic city council are working to violate the sanctity of contracts and balance the budget on the backs of those that have served the city, fulfilled their obligation to the contracts they worked under and expect the city to honor that contract and their service.
A little background: Providence, like many American cities is in a financial mess. Lower state aid, housing bust, and the (lack of) leadership in past administrations has magnified long term problems like poverty (22% of total pop., which is 4th highest in country among cities over 100,000) and a large portion of the city being off the tax rolls (state govt., universities and hospitals) and has put Providence in a tough position. An example of the mismanagement and destruction caused by previous administrations is a period of time when municipal employees retired with guaranteed annual COLAs of 5 and 6%. This doubles the benefit every twelve years. I agree with the mayor and the council that these benefits are excessive and unsustainable.
It is there that my agreement ends. What was voted on and passed unanimously by the city council last week and receives its second vote tonight is an ordinance that would suspend COLAs until the fund is 70% funded. Actuaries estimate that to be around 25 years, if funding continues as planned. It should be noted that the severe underfunding of the pension fund has gone on for years, over the objections of (and occasional legal action by) municipal unions. So, no guarantees that you would get your 3% (what most get) come year 26. It should be pointed out that this ordinance is not just going forward, which would still be inequitable unless a similar ordinance prohibited all raises for an equal amount of time. It also applies to those who have already retired. Apparently the sanctity of the contract is violable when adhering to shock doctrine tactics (unless it is with someone receiving a property tax break).
It should also be noted that as this budget crisis hit (completely unforeseen and/or lied about by our previous mayor) our current mayor made overtures of negotiating with retirees. Before what was a very short deadline was even reached, an ordinance was drafted and passed with a promise to be signed after tonight's second vote.
It will surely undergo a legal challenge, which means it will not provide immediate relief. This is a rush job. Please consider sending along a message to our city council. The mayor's office already sent out email to city residents, urging them to forward a very one-sided email to all council members.
Copy and paste, if you like.
Dear Council Member,
As a supporter of public service and as an individual that understands the financial strains of this nations cities, I urge you to reconsider the current pension reform plan. It is not a way forward. It is a way backwards. Please pause and negotiate. Find a solution that helps Providence get through these tough times without passing punitive legislation that will harm and disgrace public servants for decades to come. Once again, reconsider these 'Shock Doctrine' tactics as you are poised to do permanent harm to individuals and the reputation of your city. I have watched the attacks by Walker on public servants in Wisconsin. I am watching what happens in Providence and wishing you the best of luck in finding a solution which preserves the dignity of those that have served your city and enhances your city's reputation as a city founded on human goodness, built with honest labor and guided with wisdom.
Thank you
Since the previous vote was unanimous, I give you the contact info for the whole lot of them
Sorry for such a quick diary. I have to get going pretty soon, but I will be back to update and/or respond later tonight. Thanks