Patrick Proposes $65 Million Local Aid Cut
BOSTON (AP) -- Gov. Deval Patrick told Massachusetts city and town leaders Friday he will cut some of their local aid in the fiscal 2012 budget he proposes next week, but attempt to offset the reduction with legislation granting them long-sought power to trim their employee health insurance costs.
In his annual address to the Massachusetts Municipal Association, the governor said he will propose a $65 million cut in unrestricted local aid, reducing it to $834 million overall.
WBZ NewsRadio 1030's Bernice Corpuz reports.
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Simultaneously, he will propose increasing school aid by $140 million, to $4 billion overall. The budget will cover the period from July 1, 2011, to June 30, 2012.
Patrick also pledged to file legislation Friday afternoon forcing cities and towns to join or adopt a program similar to the state's Group Insurance Commission.
It is free to adjust state employee premium payments and make other changes as it sees fit.
Municipal leaders have complained for years they have been blocked from shifting their employees into such a program -- and gaining the savings latitude it would provide -- by a requirement to get union approvals that is practically impossible for them to achieve.
The governor, who courted union support during his re-election campaign last fall, has resisted lowering that threshold -- as high as 70 percent of union members in some communities -- without union negotiation.
The bill would also force municipalities to place eligible retirees into Medicare, which many have paid for but don't use.
He estimates the changes will save about $120 million annually -- offsetting the local aid cut.
The governor received a standing ovation after his 10-minute remarks.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
