Budget Commission Approves 'Plan B' in Case of Union Talk Failure

This afternoon the Woonsocket Budget Commission approved a "Plan B" enacting savings they're attempting to negotiate with unions by the end of June.

"Our position is our authority under the law allows us to do these things," said Mayor Leo Fontaine, a member of the Commission. He said while the Budget Commission intends to continue negotiating to effect the changes, they still need a backup plan in case the negotiations aren't successful.

"It essentially spells out what takes place July 1st," said Commission member City Council President John Ward, if negotiations with city unions don't resolve the changes.  

The changes, listed under item #6 on the Commission's agenda for today's 11 a.m. meeting, include moving all city employees under one unified health insurance plan and previously announced changes to retireee benefits. In February, City Finance Director Thomas Bruce spoke with Woonsocket Patch about the list of concessions the Commission is seeking from unions as part of a 5-year plan to bring the city back to financial solvency. 

Previously, officials, including Bruce and RI Director of Revenue Rosemary Booth Galoogly, have stated that failing to negotiate those savings would send the city into receivership.

Today, Bruce and Fontaine said the Commission's approval of the contingency plan provides the City with a final option short of receivership. Should something prevent the Budget Commission and the City from making those changes, such as a court injunction, then the Commission would have to vote to acknowledge they can't enact the city's 5-year plan, making recievership the next likely step.

Bruce said a reciever would be handed the Budget Commission's plan at that point, and may follow with it. However, "Our goal is to continue negotiations," Fontaine said. "We just need to have a Plan B."