Nesi: Tavares/1033 Deal “saves” 11%

WPRI’s Ted Nesi has done some digging and found out more about the Tavares/1033 deal, particularly how much it has “saved”:

The wages, benefits and other provisions outlined in Local 1033′s contract were projected to cost Providence’s city government about $60 million per year, adding up to $240 million over four years, according to calculations by Director of Administration Michael D’Amico sent along by spokesman David Ortiz. (For context, the entire city budget is somewhere around $638 million this year.)
So the $26 million in concessions approved by Local 1033 this week will decrease the contract’s estimated cost from $240 million to $214 million, a reduction of just under 11%.

At $60 million, the 1033 contract was about 9.4% of Providence’s total budget this year. According to previous reports, this deal saves $2.2 million this year. Providence has a structural deficit of $69.6 million, with $28.6 million of that debt that needs to be paid for by July 1. The savings from this deal covered 7.7% of that cost. If we equate budget share with share of the deficit, then 1033’s deal fell a little short of pulling “their fair share” (to use a familiar trope) when it comes to closing the budget gap this year. Incidentally, next year the 1033 “cuts” of $4.6 million will make up for about 4% of the total projected deficit for 2012. More work needs to be done.

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Warrington Faust
Warrington Faust
10 years ago

Somehow it passed under my radar that Atlas Shrugged had been made into a movie.
One of the “cuts” available on the web shows a refreshing view of how to deal with unions.
I tried to post a link, but it was thrown out as spam. So, Google “Atlas Shrugged The Movie”, and go to the site. A cut about dealing with a union is featured there.

Warrington Faust
Warrington Faust
10 years ago

Somehow it passed under my radar that Atlas Shrugged had been made into a movie.
One of the “cuts” available on the web shows a refreshing view of how to deal with unions.
I tried to post a link, but it was thrown out as spam. So, Google “Atlas Shrugged The Movie”, and go to the site. A cut about dealing with a union is featured there.

Rasputin
Rasputin
10 years ago

Marc,
Let’s get back to Scott Avedisian’s pension reform, seeing you live in Warwick. Does more work need to be done there? Or is that enough just because he’s a Republican and you live and a world of black and white thinking?

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