Dear Local 580 members:

On Monday, 14 December 2009, the Providence Journal released an interoffice memorandum from the Office of the Governor (Carcieri) about the 2010 Supplemental Budget.  I am attaching that memorandum in PDF format for your review.

In his memorandum, the Governor reports that the state has made “considerable structural changes and reduced personnel expenses and state spending across the board.”  He further notes that “significant” (emphasis added) pension reform was passed by the General Assembly last session.  Unfortunately he has not wrecked enough damage on RI State Employees, and declares

                        …, as I stated last year when I signed the budget, the pension reform

                        did not go far enough.  We need to go back at it this year, specifically

                        with regards to COLAs (cost of living increases).  ….  I am again asking

                        the General Assembly finally do away with COLAs.

My dear friends and members, this is wrong!  We have all taken pay cuts for the good and security of our jobs and clients; our pensions are less, and our time to work is more; we are all working harder than ever doing the jobs of two, three, in some cases even four staff because people are not being replaced and the work must get done.  On top of that, we continue to contribute 8.75% of our salary to our pension plans—one of the highest contributions in the Nation.  Governor Carcieri makes a point in his memorandum that COLAs are not offered as part of “retirement” plans in the private sector, and that a COLA is an “archaic idea.”  However, what he fails to disclose is that most retirement plans in the private sectors have COLA like increases built into them, and furthermore, that most employees in the private sector do not contribute a dime to their pensions. 

At this time, I implore you, your families, and friends to call your representatives and senators in the RI General Assembly.  Tell them “ENOUGH is ENOUGH.”  We have given and given and given and have no more.  Let them know that you will not support them in future if they go along with the governor’s plan.

It is indeed likely that your senators and representatives may ask you how they might resolve the supplemental budget without cutting the COLAs.  I will leave you with a few talking points to help you answer them.  I am sure there are more and feel free to use your own, but these are a good start:

            1.  Reamortize the pension—this will provide a significant amount of money and

                 there will be no reason to get rid of the COLA.

            2.  Repeal the Flat Tax that only benefits the richest of the rich in our state, many of

                 who are not even Rhode Island residents.

Thank you very much for taking the time to fight this fight—we must be united in this effort. 

As always, I ask you to let us know the results of your communication(s) with your senators and representatives.

Yours in solidarity,

 Phil Keefe

Philip Keefe

President