Budget Commission Tables Firefighter 'Enactment', Hears Challenges to Supplemental Tax Plan

The Woonsocket Budget Commission tabled a discussion and possible vote on "enactments" planned to change non-contractual elements of Woonsocket firefighter employment as a backstop against negotiations Monday. 

Woonsocket City Council President and Budget Commission member John Ward said the item was tabled, "Only because negotiations were continuing."

Since the firefighters union contract doesn't run out till the end of June 2014, they've so far been immune to "enactments" passed by the Commission in April imposing changes on expired union agreements. Last week, Ward said the enactments referred to on Monday's agenda don't concern  elements of firefighter employment covered under their contract. 

A few people took the opportunity during the meeting's public comment segment to contest the $3.7 million in savings from union concessions the Budget Commission announced last week, invoking the conditions allowing the city to begin billing taxpayers to collect an additional $2.5 million for the city's tax base.

Last week, Commissioner Peder Schaefer said, with existing ratified union agreements and the enactment of police union healthcare changes, the Budget Commission has managed to save $4,738,000 in savings from union concessions.

On Monday, Cote said the $1,142,413 savings realized using an "enactment" applied to the police union skirted the intent of the supplemental tax bill law (which Cote sponsored and voted to approve) requiring $3.7 million of savings in union negotiations before allowing supplemental tax bills to be sent out.

According to a spreadsheet of the savings released by the Commission, there is only $3,596,021 in savings without the police union enactment.

Cote said the enactments violate state law, "...that any expired contract stays in full force and effect until the new contract is either successfully negotiated or the result of binding arbitration." 
 
Roland Michaud also challenged the legality of enactments and not honoring the expired police union contract. "As you well know, you have no right to break that contract," Michaud said. 

Michaud said he is preparing a class-action suit to formally challenge the enactments, and asked residents to not pay their taxes until Aug. 31, the deadline to avoid penalties.  By then, he said, he expected to have guidance from his lawyer on the matter, and they would also have time to see if the union concessions can be realized without the enactments.

Michaud also questioned what empowered the Budget Commission to make the enactments. The public comment segment is not a dialogue, so commission members are not obligated to reply, though they have, on occasion. No commission members chose to reply to his question Monday.

RI Chapter 45,-9-9, which governs the Budget Commission's powers over collective bargaining agreements, addresses new contracts. The last sentence prohibits the Budget Commission from altering existing contracts, but does not address expired contracts: "This section shall not be construed to authorize a fiscal overseer, a budget commission or a receiver under this chapter to reject or alter any existing collective bargaining agreement, unless by agreement, during the term of such collective bargaining agreement."

Non-contractual changes are directly addressed in 45-9-6, allowing the Commission to, "Reorganize, consolidate or abolish departments, commissions, authorities, boards, offices or functions of the city or town, in whole or in part, and to establish such new departments, commissions, authorities, boards, offices or functions as it deems necessary..."

After Monday's meeting, Edward Alves, Budget Commission Legal Counsel, said he remains confident the Budget Commission's enactments will withstand a legal challenge.

The Budget Commission's next meeting is scheduled for July 29.