Municipal leaders applauding contract veto

As municipal leaders, we would like to thank Gov. Gina Raimondo for vetoing legislation to automatically extend collective bargaining agreements for municipal employees and teachers. We know firsthand the importance of providing quality services to our residents while controlling property taxes. Perpetual collective bargaining agreements would make it harder for us to negotiate in the best interests of taxpayers. We thank the Governor for her support of taxpayers and strongly urge the General Assembly not to override the Governor’s veto of the perpetual contracts bill.

We deeply appreciate and support the work that municipal employees and teachers do for our communities, and we have worked to maintain good relations during contract negotiations. Unfortunately, automatic contract extension would disrupt that productive relationship. The expiration date of collective bargaining agreements is important because it motivates all of us to come together and resolve our issues. If the parties are not able to complete negotiations before the contract expires, we support extending the contract terms temporarily if both parties agree. In the vast majority of cases in Rhode Island, that is exactly what happens — the parties agree to continue their contract terms until they can complete negotiations.

However, automatically extending a contract would provide greater leverage for employees at the expense of municipal officials and taxpayers. Employees would have no incentive to make concessions on wages, health care or work conditions. Our cities and towns have all experienced rising health care costs in recent years. If perpetual contracts were in place, what motivation would employees have to absorb any of those cost increases — particularly if the previous contract limited their premium co-shares to a fixed dollar amount? The perpetual contracts bill would tie local officials’ hands and limit our ability to control the costs of government.

Municipal leaders have also worked to make government more efficient — offering better services and stretching taxpayer dollars further. Yet perpetual contracts would force cities and towns to preserve outdated contract provisions that prevent the use of modern technology, more efficient staffing levels, or best practices from other municipalities. Our residents expect efficient and responsive government, and we must be able to provide it to them.

If the General Assembly overrides the Governor’s veto and the perpetual contract bill becomes law, it will lead to greater costs to local government and higher property taxes for our residents. Rhode Island already has one of the highest property tax burdens in the country. In recent years, we have worked to control property tax growth, but this misguided legislation would undermine our recent successes. Perpetual contracts will limit our ability to promote efficient and cost-effective government, ultimately lead to higher costs to taxpayers.

In her veto message, Gov. Raimondo noted that few other states had similar perpetual contract laws. In New York during the Great Recession, she noted, “Labor had little incentive to come to the bargaining table and negotiate in earnest, and as such municipalities were forced to find cuts elsewhere and raise taxes. With a similar law on our books, how could we expect any different result?” Rhode Island cannot afford to make such costly mistakes. We appreciate the Governor’s advocacy for our cities and towns and taxpayers. We hope the General Assembly now recognizes the dangers of this legislation and will sustain the Governor’s veto.

T. Joseph Almond, Town Administrator, Lincoln Scott Avedisian, Mayor, Warwick Allan W. Fung, Mayor, Cranston Donald R. Grebien, Mayor, Pawtucket William S. Murray, Mayor, Cumberland Joseph M. Polisena, Mayor, Johnston