July 14, 2010: Layoffs in Lawrence

>> Rooney: PLACES WITH
SEVERE LOCAL AID CUTS, THE
CITY OF LAWRENCE LAID OFF
ROUGHLY 115 CITY AND
SCHOOL EMPLOYEES.
AMONG THOSE HARDEST HIT,
FIREFIGHTERS WHO NOW PUT
CITY AND STATE OFFICIALS
IN THEIR CROSS HAIRS.
JARED BOWEN HAS MORE.

>> Reporter: WITH 23
FIREFIGHTERS LAID OFF LAST
WEEK AND THREE FIRE HOURS
NOW CLOSED, THE CITY OF
LAWRENCE IS AT A
DEPARTMENT MINIMUM.

>> IF ANY ONE OF MY
MEMBERS GET INJURED OR
WORSE, I'M GOING TO HOLD
THEM ACCOUNTABLE, SO THEY
BETTER LISTEN.
THERE IS SUCH A THING AS
MALFEASANCE, MISFEESANS,
AND NON FEASANCRE.

>> THEY HAVE NO MONEY, SO
WHY ISN'T THE STATE DOING
MORE.

>> Reporter: AFTER THREE
YEARS IN THE RED, LAWRENCE
WAS ABLE TO BALANCE ITS
BUDGET, IN PART BY CUTTING
$1.6 MILLION FROM THE CITY
FIRE DEPARTMENT.

>> LAST YEAR THEY GOT 5%
RAISES.
EVERY YEAR PRIOR TO THAT,
THEY GOT AT LEAST 3%, 4%
RAISES, AND THE LAST FOUR
OR FIVE YEARS, THEY
PROBABLY GOT 15% RAISES.

>> Reporter: HE SAYS THE
CITY GAVE THE FIRE
DEPARTMENT AMPLE TIME TO
MAKE CONCESSIONS, BUT THEY
DECLINED.

>> IF THERE IS A TRAGEDY,
WE'RE ALL GOING TO OWN IT,
BUT THEY WILL OWN IT, TOO.
THEY HAVE NOT OFFERED ANY
SOLUTION.

>> PEOPLE GET KILLED IN
THE LINE OF DUTY, AND
THEIR PAY IS REDUCED?
I DON'T THINK SO.

>> Reporter: THE RANKER
BETWEEN THE CITY AND THE
FIRE DEPARTMENT HAS
ESCALATED, AND THE FIRE
DEPARTMENT FEELING IT IS
UNDER THREAT OF IM MENT
DANGER.

>> IF GOD PUTS HIS HAND ON
ONE OF OUR PEOPLE, DON'T
YOU ALL COME AROUND
WANTING YOUR PHOTO TAKEN
AND ACTING LIKE YOU'RE
REALLY SORRY.
IF YOU'RE SORRY, YOU DO IT
NOW.

>> Reporter: HE INSISTS
THE PUBLIC OPINION HAS
GONE AWAY FROM THE
FIREFIGHTERS, ESPECIALLY
WHEN YOU LEARN THEIR
SALARIES.

>> IF YOU LOOK AT THE
WHOLE GUARANTEED AMOUNT
PAID TO A FIREFIGHTER, IT
IS ROUGHLY 80 GRAND.
THE AVERAGE PERSON THAT
HAS COME TO US CAN'T
BELIEVE HOW MUCH THEY'RE
GETTING PAID.

>> Reporter: TURNING
THIS INTO A FIERY BATTLE
OF THE POLITICAL AND
PUBLIC RELATIONS KIND.

>> Rooney: JOINING ME IS
WARREN DEGNAN.
THE MAYOR WAS SUPPOSED TO
JOIN US.
IS HE DEALING WITH THIS
ISSUE?

>> HE IS DEALING WITH A
LOT OF ISSUES.
HE MET WITH A BUSINESS
TODAY -- HE HAD TAKEN A
FEW DAYS OFF, AND WHEN HE
CAME BACK ON YESTERDAY, HE
HAS BEEN BOMBARDED WITH A
LOT OF STUFF.
THIS IS ONE OF MANY ISSUES
WE'RE FACING.
WE ALSO CUT THE POLICE
DEPARTMENT, AND WE
CONTINUALLY LOOK AT THE
FINANCES.
BUT THERE ARE A LOT OF
ISSUES FACING US.

>> Rooney: WAS THIS
REALLY NECESSARY?
OR WAS THIS A SHOT ACROSS
THE BARREL.
WAS THIS AN IN YOURFACE TO
SAY TO THE FIREFIGHTERS,
YOU HAVEN'T COME UP WITH
SOME OF THE CONCESSIONS,
INCLUDING GIVEBACKS ON
VACATION AND LONGEVITY --
DID YOU HAVE TO TAKE A
LOOK AT THE FIREFIGHTERS,
OR WAS THERE ANOTHER WAY
TO GO?

>> WHEN IT COMES TO
BALANCING THE BUDGET, WHEN
HE BECAME MAYOR BACK IN
JANUARY, WE INHERITED A
$20 MILLION DEFICIT.
WE WOULDN'T WANT TO LAYOFF
ONE FIREFIGHTER OR POLICE
OFFICER.
WE DIDN'T WANT TO LAY
ANYBODY OFF.
WE HAD TO GO TO THE STATE
LEGISLATURE TO BALANCE THE
BUDGET.
THEY GAVE US THE CITY OF
LAWRENCE LEGISLATION ABOUT
$25 MILLION.
THE CONDITION WAS THAT WE
HAD A FISCAL OVERSEER AND
WE BALANCED THE BUDGET BY
JULY 1.
SO BY BALANCING THE
BUDGET, WE HAD TO MAKE
THESE CUTS.

>> Rooney: YOU HAVEN'T
DUG INTO ALL OF THE MONEY
THE STATE GAVE YOU.
YOU ONLY USED 20 OF THE
THE 45.
COULD YOU HAVE USED THE
REST OF IT?

>> WE MAY USE THE REST OF
IT.
WE HAVE A HEALTH CARE
PROBLEM OF $1.3 MILLION --
WE MAY END UP SPENDING IT
ALL.
TO USE IT TO DELAY THE
LAYOFFS, IT WASN'T
PRACTICAL BECAUSE WE STILL
HAD OTHER ISSUES THAT WE
MAY HAVE TO USE --

>> Rooney: YOU USED TO
BE THE MAYOR OF LAWRENCE.

>> YES.

>> Rooney: WAIT A
SECOND, 72,000 PEOPLE, AND
YOUR DOWN TO 72
FIREFIGHTERS, AND THAT'S
ONE FIREFIGHTER PER
THOUSAND.
THERE IS A LOT OF ARSON
AND DESTRUCTIVE FIRE
BECAUSE OF POVERTY.
BUT THIS SEEMS TO BE NOW
KIND OF OUT OF WHACK.

>> WELL, I MEAN -- IF YOU
FOLLOW WHAT'S HAPPENED TO
LAWRENCE THE LAST THREE OR
FOUR YEARS, THEY GOT A
ROUGHLY $15 MILLION CUT IN
LOCAL AID.

>> Rooney: EVERYBODY HAD
THAT.

>> BUT NOT LIKE LAWRENCE.
80% OF LAWRENCE'S MONEY
COMES FROM THE STATE.
NO COMMUNITY IS LIKE
LAWRENCE'S.
LAWRENCE'S BUDGET IS
$250 MILLION INCLUDING
SCHOOLS.
$243 MILLION, AND LOCAL
TAXES ARE $47 MILLION.
ALL OF THE REST COMES FROM
THE STATE.

>> Rooney: IF YOU'RE
DEPRESSED, YOU CAN'T GET
THE MONEY OUT OF --

>> IT IS NOT LIKE ANYBODY
ELSE.
LAWRENCE LOCAL AID -- WE
JUST CAN'T RAISE TAXES.
WE HAD $15 MILLION IN
LOCAL AID CUT IN THE LAST
FEW YEARS.
AND WHAT HAPPENED IS THE
PREVIOUS ADMINISTRATION
DIDN'T MAKE THE CUTS.
THEY WENT INTO A
$24 MILLION DEFICIT
BECAUSE THEY DIDN'T WANT
TO TAKE ANY HEAT, WHICH --
SO WE COME IN, AND THE
MAYOR COMES IN IN JANUARY,
AND HE HAS THIS MAJOR
DEFICIT HE HAS TO DEAL
WITH.
AND IF HE DOESN'T BALANCE
THE BUDGET, WE GO TO A
CONTROL BOARD.
AND A CONTROL BOARD MEANS
NO MORE MONEY -- IT JUST
MEANS LESS CONTROL.

>> Rooney: EXACTLY.
HE IS REQUIRED NOW TO
APPOINT A FULL-TIME FIRE
CHIEF BECAUSE BRIAN MURPHY
IS TEMPORARY.
IN THE MEANTIME, THE
FIREFIGHTERS ARE SAYING,
LOOK, YOU HAVE NOT
BARGAINED IN GOOD FAITH.
YOU NEVER REALLY CALLED US
TO THE TABLE.
YOU NEVER LAID ALL OF THIS
OUT FOR US.
HOW DO YOU RESPOND TO
THAT?

>> WELL, AGAIN, YOU KNOW,
THE GOD LORD UPSTAIRS
KNOWS THE TRUTH.
WE'VE BEEN TRYING TO
NEGOTIATE WITH THE FIRE
DEPARTMENT.
TODAY WE HAD A MEETING SET
UP WITH MR. McCARTHY,
AND I GUESS HE HAD A
MEDICAL THING, BUT THEY
CANCELLED ON US.
WE'VE HAD SEVERAL
NEGOTIATIONS WITH THE
UNION, AND THREE HOURS
BEFORE, THEY'VE CANCELLED.
THEY DIDN'T LIKE -- WE
HAVE SERIOUS FINANCIAL
PROBLEMS, AS YOUR PIECE
HAD ED SAID, WE CUT ABOUT
$1.6 MILLION -- OVER ALL
WE HAD TO CUT $8 MILLION.
AND THE POLICE DEPARTMENT
TOOK A $3 MILLION HIT.
THEY TOOK THE BIGGEST HIT.
THEY LOST 24 GUYS AND WE
DEMOTED 15 PEOPLE IN THE
POLICE DEPARTMENT.
THE FIRE DEPARTMENT TOOK
THE SECOND BIGGEST HIT.
WE LOOKED EVERY WHICH WAY.
WE KNOW THE STATE IS IN A
TOUGH SITUATION.
WE WOULD WELCOME THE STATE
TO GIVE US MORE AID, BUT
THERE IS NO RAISING THE
DOOR FOR A YEAR BECAUSE
NEXT YEAR THEY'LL LAY THEM
OFF.
LAWRENCE HAD TO DO A
STRUCTURAL THING.
THE ISSUE OF COLLECTIVE
BARGAINING -- THE LAST
THREE OR FOUR YEARS EN
LAWRENCE, MOST PEOPLE HAVE
HAD RAISES.
THIS LAST FISCAL YEAR,
THEY ALL GOT 5% RAISES.
IN THE LAST THREE TO FOUR
YEARS, THEY GOT ROUGHLY
15% RAISES.
I UNDERSTAND WHEN THEY SAY
THEY DON'T WANT TO GIVE
BACK, THEY'VE EARNED THEM.
BUT LAWRENCE IS NOT LIKE
OTHER COMMUNITIES.
PEOPLE HAVE TO REALIZE
THAT.
LAWRENCE IS A POOR
COMMUNITY --

>> Rooney: WHICH IS ALL
THE MORE REASON WHY YOU
WOULDN'T WANT TO CUT SOME
OF THE BASIC SERVICES.
THERE IS NOTHING ELSE TO
WHACK, LIKE SOCIAL
SERVICES --

>> THERE IS NOT REALLY
MANY SOCIAL SERVICES.
THE BUDGET, $140 MILLION
FOR SCHOOLS, WHICH IS
EVERY NICKEL OF LAWRENCE'S
MONEY -- AGAIN, I THINK
THAT IS A GREAT QUESTION.
$140 MILLION COMES FROM
THE STATE OF MASSACHUSETTS
TO FUND LAWRENCE'S PUBLIC
SCHOOLS.
LOCALLY WE PAY NOT ONE
NICKEL IN LAWRENCE TO
EDUCATE OUR KIDS.
THE STATE DOES.
IN ADDITION TO THAT, THE
STATE -- THE REST OF THE
BUDGET IS MADE UP OF
ENTERPRISE FUNDS, AND THE
CITY BUDGET IS ROUGHLY
ABOUT $75 MILLION.
$14 MILLION IS HEALTH
INSURANCE, AND $12 MILLION
IS RETIREMENT COSTS.

>> Rooney: WHACK THAT.

>> YOU WHACK THAT AND YOU
CUT THEIR BENEFITS.
THEY'RE ALL POLICEMEN.
THEN YOU CUT THE
POLICEMEN'S HEALTH
INSURANCE AND THE
FIREMEN'S HEALTH
INSURANCE.
YOU CAN'T REDUCE HEALTH
INSURANCE AND PENSION
COSTS.
THAT'S ONE OF THE PROBLEMS
IN LOCAL GOVERNMENT --

>> Rooney: THEY'RE
DEALING WITH THAT ON
BEACON HILL RIGHT NOW.

>> AGAIN, THAT HAS HURT
LAWRENCE.
BUT NOBODY WANTS TO -- MY
GRANDFATHER WAS A DEPUTY
CHIEF LAWRENCE FIRE
DEPARTMENT.
WHEN I WAS YOUNGER, I USED
TO GO TO FIRES.
I HAVE THE UTMOST RESPECT
FOR FIREFIGHTERS AND
POLICEMEN, BUT ONE OF THE
THINGS THAT REALLY KIND OF
MAKES ME WONDER IS THIS IS
MORE ON THE LAST TWO,
THREE YEARS IN LAWRENCE.
NO ONE SAW THIS COMING.
WE BORROWED $24 MILLION.

>> Rooney: ALL RIGHT.

>> TO ME THIS WAS NOSURPRISE.
WE TOLD THEM IT WAS GOING
TO HAPPEN.

>> Rooney: WELL, YOU AND
THE MAYOR HAVE SOME
DEALING TO DO.
THANKS SO MUCH FOR COMING.
WHEN WE CONTINUE, APPLE'S
PROBLEM CHILD, THE NEWEST
iPHONE.