For Immediate Release
February 10, 2009
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Cabinet Members Volunteer to Take 3% Reduction Also
Mayor Thomas M. Menino announced yesterday his decision to take a 3% pay cut in light of the challenging economic realities confronting the City's budget. All of the Mayor's cabinet members volunteered to take a 3% pay reduction as well. The pay cuts will be effective for the pay period beginning February 14, 2009. The reduction brings Mayor Menino's salary to $169,750, down from $175,000.
"Over the recent weeks and coming months, I am asking employees across the City of Boston to sacrifice a little to help minimize the impact of layoffs," Mayor Menino said. "My decision to take a pay cut is about more than the bottom line. By coming together to share the burden of this troubling economy, we can all do our part to save jobs and protect core services. I'm proud that my cabinet has volunteered to stand with me in this fight."
In addition to the pay cuts, the City announced several other cost-saving measures being taken with regard to all non-union personnel.
- The City will not grant wage increases in FY2010.
- The City will not grant step increases in FY2010.
- For those employees who retire after June 30, 2009, and before June 30, 2010, the City will provide a lump sum payment f 8% of the employee's salary. The payment is being provided to mitigate the reduction in value of individual retirement allowances resulting from the lack of a wage increase in FY2010. In order to be eligible for this payment, an employee will need to be at his/her maximum pension benefit.
In his January State of the City address, Mayor Menino emphasized that despite a challenging budget, his administration's primary objectives continues to be providing high quality City services and preserving jobs. To help achieve these objectives, Mayor Menino has asked all City unions to consider accepting a one-year wage freeze that would help save an estimated $55 million next fiscal year.
The City successfully completed negotiations with the Boston Police Superior Officers Federation (BPSOF) for a four-year contract beginning July 1, 2006 and ending June 30, 2010. The BPSOF ratified a contract which includes a wage increase effective June 30, 2010. By deferring the wage increase until the last day of FY2010, the BPSOF contract is consistent with the City's wage freeze request.
In the last month, the City's fiscal situation has grown increasingly challenging with the announcement that the state will reduce the City's FY2009 local aid by $22.9 million. Governor Patrick has also released his proposed budget for FY2010. The budget includes a $51 million reduction in local aid to the City of Boston, assuming that the Governor's proposal for a meals tax and a hotel tax become law. However, if the Legislature votes to reject these proposals that would generate revenue for municipalities, Boston can expect an FY2010 reduction in local aid of approximately $78 million.