Coleman Cuts Pensions, Promises Jobs, Revenue

NBC 4: Flanked by city department heads and council members, Columbus Mayor Michael Coleman announced a 10-year plan to reform and improve city government to save between $100 to $150 million over the next 10 years. The plan included new approaches to employee benefits, public safety reforms and strategic partnerships.

The reform proposals unveiled are part of a three-part plan that includes creating jobs and raising new revenue to shore up the city’s long-term economic future. They are the result of the recommendations of the economic advisory committee, an independent panel appointed last year by Coleman, city council and City Auditor Hugh Dorrian to study the city’s long-term finances.

“These proposals demonstrate we committed to renewing our city government and making it work more efficiently,” Mayor Coleman said. “Many of these reforms will take time, but we will accomplish them.”

Most of the cost saving in the plan is years away from happening. The city has to negotiate with employee unions and city workers are unlikely to just give those benefits away without getting something in return. While Columbus city workers contribute 9 percent of their healthcare costs, state workers pay 15 percent.

Many private sector employees pay 20 to 30 percent and now, Coleman said, the city needs to be less generous with workers. The mayor said he would like to move forward on phasing out the employee-pension benefit that cost the city $30 million in 2008. The city currently picks up the tab for employees’ share of retirement costs.

“There’s going to have to be a make-up in the compensation package somewhere else, whether its in terms of wages or in terms of earned time off,“ said Firefighters Union President Jack Reall.

Reall said the city hasn’t even suggested cutting pension payments in recent negotiation sessions—a perk that amount to 7 percent of members’ salaries. The mayor also called for city employees to contribute more for health-care costs, revisit overtime policies and expand online auctions for city asset sales. Dorrian said the city is facing “an unprecedented financial dilemma.“ “It’s crisis time,“ he said.

“Having already taken measures to significantly reduce expenditures, we are forced to re-examine how city government is run as revenues continue to decline,” City Council President Michael Mentel said. “We are committed to a realistic plan that will be phased in over time, and the city will be in a better long-term financial position due to the decisions we are making today.”

Coleman said the public can hold the city accountable each year when Columbus produces a report of its progress on these efforts. Coleman also vowed to raise new revenue but would not discuss the details Thursday.