Buffalo fiscal woes continue to grow

[WNYresident]

I didn't realize the BILL we get for our city employees benefits..



The full story


BUFFALO -- For the first time, Buffalo will spend more this month on health benefits for retirees than it will on health benefits for active workers. City officials say the unwelcome "turning point" demonstrates why upstate's largest city is in such serious financial trouble.
The trend is expected to continue and, by July, will result in taxpayers paying $28.7 million a year for retirees' health insurance compared with $25.5 million a year for active employees.

"This is a turning point for us," Human Resources Commissioner Leonard Matarese said. "It has never happened before, and it clearly demonstrates why we're facing serious financial problems."


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[WNYresident]

Mayor Anthony Masiello views health insurance and pension costs as the two biggest fiscal problems facing the city and has scheduled a health insurance "summit" for Wednesday. The key proposal would put all 5,500 workers and retirees under one provider. Insurance companies have estimated the change would save the city between $7 million and $11 million a year without any change in coverage.

All seven city unions and every one of the city's retirees would have to agree to the change, which may not be easy.

NO benefits or some benefits.. why is there an issue with this

[CheektowagaFan]

Originally posted by WNYresident
NO benefits or some benefits.. why is there an issue with this

Under New Yorks States Law Retired Members do not have to take anything less then what they have.

Also for Current Employees they do not have to take anything less either. They get to keep what ever they have in there CONTRACT and nothing less unless otherwise agreed apond with the City and the Members.

Take this to the BANK The RETIRED ones will not give in! And they shouldnt. And why should they? Do there pensions go up as well?

[WNYresident]

Your missing the point. It's not that anyone wants to see anyone not get thier benefits. I believe you assume that everyone that isn't in civil service just doesn't want to pay for anyone benefits. You need to have civil servants in general. I also believe in general civil servants are a better way to go than making some services private sector.

The point is there is a lot of retired NON-civil service people that are having a tough time cover thier own expenses. Plus there are a lot of people just like me that look at thier property taxes and say, who is the arse that came up with this stuff.

Tell me this, why should a retired "non-civil servant" lose thier home because property taxes increased to a point where they can't afford to live there? I dont want to hear either "Oh they can move someplace cheaper to live". Some people having issues making ends meet have had thier homes for a lifetime. There's no reason for them to give up thier home. Plain and simple. Ask gabby why all this developement in cheektowaga isn't helping keep cost in check. YOu know what it doesn't. Just like a casino is going to spur developement.

If there's NO money theres no money. I or a lot of retired people didn't sign your contract, you don't seem to get the point. We had some rather un-qualified people running the area for the last 30 years. I guess when they need votes they will give the bank away.

[Curmudgeon]

Yep - the fix is in.

We need a few years of runaway inflation to dilute what we have to pay these people. hopefully, in 2007, gas will be $4.00 a gallon, I'll make $175,000 a year, but we will still pay these people what they get now.

There's a quick fix.

[WNYresident]

I like the idea about bleeding them out better. THen they'll wise up and understand in order to be successful you need to go with the flow and what the economy can bear. There's that free market at work again.

BUt you know what? CHeektwoaga fan just made $75,000 off his home sale rememeber? Let him take that and pay for his own health insurance increases. AND while the money wizard is at it he can fund his own pension. Just his attitude makes me want to pay less in poroperty taxes.

You know why we are in this mess, we don't have term limits on the local level. We allowed little thiefdoms hand thierselves contracts which ANY BRIGHT BUSINESS PERSON would of said NOPE NOPE NOPE, we need caps on items. BUT no, the IDIOTS and i would tell them right to thier faces, the IDIOTS didn't put caps on limits to protect the tax payer. They should of went with actual money amount towards health care and pensions, NOT just here's your healthinsurance free and clear.

[citymouse]

Here we go again.
The Masiello administration created these problems by offering early retirement incentives to reduce the work force and to reduce the number of exspensive tier one employees.
You can't change the coverage of anyone who retired. They are protected by law and the coverage of the existing contract when they retired prevails.
They actually encourged employees to retire by insinuating that coming changes in health care cost could be incurred by them if they waited to go. That by retiring now they would be locked in to thier current coverage.
They did not have the forsight to bargin in good faith to change the coverage before they offered the incentives and now they are stuck in a quagmire of thier own making.
So, as usual, they attack the municiple employee thru the news media by crying "woe is me, and look how these union guys are raping the taxpayer. It's them not us."
And as usual the civil servant bears the brunt of public outrage.
The city once again is guilty of shortsightedness. But no one see's it that way. They look good in the budget year by reducing the number of employees knowing full well that they are going to have these costs down the road.
Actually the city and union set up a health care task force, Kind of a labor managment team, along with our last contract. The stopped meeting after about three meetings over six months because the city lost intrest and cancelled meetings and would not reschedule.
As far as this new health concept of health care. Most of the city unions are open to the idea. However the police have a great contract and will not participate and the fire department is taking a hard line and also will not take part.
Having said that, the city can still save a good amount of money with all the other unions joining in.
The one thing that bothers me is, Independent Health which has been the major carrier for the city for years, and is threatened by this new plan which uses community blue as the carrier, has now come out and said if we keep things as they are we can save the city up to eight million a year by giving them an "expirienced rating" whatever that means. My question is why didn't they do this years ago and why didn't the city persue it?
If your thinking what I am then you know why.

[citymouse]

Originally posted by Curmudgeon
Yep - the fix is in.

We need a few years of runaway inflation to dilute what we have to pay these people. hopefully, in 2007, gas will be $4.00 a gallon, I'll make $175,000 a year, but we will still pay these people what they get now.

There's a quick fix.

Look at the city contracts over the last ten years or so (again, not counting Police and fire) and you will se that has pretty much happened already.