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Elorza’s Firefighter Contract is Deeply Flawed Says Finance Chair Igliozzi

Friday, October 14, 2016

Kate Nagle, GoLocalProv News Editor

Finance Chair John Igliozzi has said he will not take up the city's proposed firefighter contract until he has a fiscal note - and is questioning why the financial proof of cost savings is not already available.

Providence City Council Finance Chair John Igliozzi is accusing Mayor Elorza and the City of Providence of “backing into” the proposed five year contract with the city’s firefighters, after he said that he has still not received a fiscal note from the city to show how savings would be achieved, more than a month after the city’s announcement.

Igliozzi released a statement Thursday as to why the Finance Committee has not yet taken up the contract — and spoke with GoLocal about his additional concerns.

“The administration has submitted a four-page document to the City Council that alleges savings in its precedent-setting request for a five-year contract with the Firefighters’ union, but has yet to submit a fiscal note or any substantive financial documents to support its claim that this deal will benefit Providence taxpayers,” said Igliozzi. “It would be financially irresponsible for the committee to begin vetting this proposal before the administration provides the Council and the public with full disclosure of the proposal’s financial impact.”

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On September 12, Elorza claimed the city would see $15 million in savings over the next five years as the result the newly negotiated contract with Providence firefighters.

“What is troubling is that the administration touted a contract with all of these savings with no financial backup or fiscal note -- so what is concerning is that they seem to be doing the financial work now, after they negotiated terms, which leads one to believe they're back into these “savings,” said Igliozzi. “Which makes the whole submission of the contract suspect.”

The city did not respond to request for the status of the fiscal note on Thursday.

Addressing Pension Reform

Igliozzi said Thursday that he was concerned that the proposed five year contract would not be addressing any pension reforms — and said that by not doing so, it would create a “dangerous precedent” for negotiations with other unions.

Mayor Jorge Elorza and Providence firefighter union head Paul Doughty at the September contract announcement.

“Under state law, a five-year contract is only available to municipalities with pension systems in critical status,” said Igliozzi in his statement. “The City of Providence’s pension system is currently 74% unfunded with an unfunded liability of almost $1 billion; by seeking this legal provision, the administration implicitly acknowledges that the city’s pension system is in crisis."

“The administration will have to use the state law that allows a five year contract, which implies if you enter into a five year contract, there will be pension reform,” Igliozzi told GoLocal. “The administration has not shown any interest that they are looking to do any pension reform in this proposed contract. Do what the state did - create a hybrid system. The time is now for pension reform. It is just as important today as yesterday - or more. We need to take every opportunity to further mitigate the pension problem the city has.”

“There are alleged healthcare savings [in the contract], but that has zero impact on the city's approximately $1 billion unfunded pension liability, and the alleged healthcare savings will have little impact on the [city’s] OPEB liabilities,” said Igliozzi. “We need to mitigate this.”

Igliozzi said it was the prospect for dealing with other municipal union contracts that concerned him.

“The issue is what happens now, is every other union will want the same 5 year guaranteed pay raise with no pension reform,” said Igliozzi. “Pension reform should be part of it or it sets a dangerous precedent."

Related Slideshow: Providence Firefighter Tweets

Paul Doughty responds to a post by Elorza on another subject, to steer the fight back to the firefighters.

A photo meme that was orginated by firefighters in social media, before being used on signs during a recent firefighter rally at City Hall.

The fighfighters take to Twitter to convey their positions on a number of issues.

Local 799's Derek Silva tweets a cartoon "fantasty" Tweet with Elorza.

Elorza's post recognizing fire chief Cunha's service gets minimal interaction.

On May 21, when Elorza announced the platoon shift, he tweeted instead about a volunteer event he attended -- and not of the firefighter decision.

Other press coverage of Elorza is often commented on by Doughty on Twitter.

Doughty uses Twitter to show the contrast of a prior Elorza statement, versus his current position.

A pro-union tweet garners significant Twitter interaction.

Doughty takes to social media to tell firefighter supporters than any threats against the Mayor would not be tolerated.

Doughty often comments on other actions by Mayor Elorza in an effort to bolster the firefighters' position.

Doughty takes immediate social action after the Mayor weighs on about the recent court decision.

Media coverage on the fight is often retweeted by Doughty -- something which Elorza does not do with firefighters.

A pro-union post retweeted by Doughty; the firefighters often engage other unions' support.

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