Wednesday, December 21, 2005
Retiree Health Care Crisis: Resolution at a Painful Price
Overstatement can be a powerful tool. For example, politicians and special interest groups often create the illusion that “the sky is falling” in order to get things done. When voters realize that politicians and special interest groups have created a false sense of urgency in order to forward their agendas, they come to the conclusion that the process of government is disingenuous. According to Frank Luntz, a national pollster of political values, Americans want government to be accountable – they don’t want elected officials to blame other politicians or groups to gain political advantage. Citizens want their elected leaders to make common sense decisions that reflect the values of the common person.
Last evening, the Duluth City Council made a bold and refreshing move: it followed Mr. Luntz’s advice and voted unanimously to adopt the Retiree Health Care task force report recommendations to fully fund a $278 million dollar unfunded liability. One can be assured the council’s decision reflects the values of the everyday person in Duluth. We needed to get it done – nobody wants our city to go broke and nobody wants the retirees to go without the benefits promised to them while employed.
To be sure, not everyone will be happy with the council’s actions. To avoid the pain and embarrassment of bankruptcy, the council called for stiff resolve and passed around pain for everyone. Results of the council’s decision last night may well include a city property tax increase of 4.5%; an 8% increase in gas, water, and sewage bills; and significant health care insurance reforms from both current and former employees. Additionally, the council strongly recommended that city administration not only adopt the plan but asked the mayor to give monthly reports to the council on progress made in carrying out all fourteen task force recommendations. Clearly, the council acted in our long term interest – for this every property owner and retiree should be thankful. To have adopted anything less would bring additional long term pain for a relatively short term gain.
To the dismay of some within our membership, the Chamber officially advocated for the city council to adopt all fourteen recommendations. We have received some feedback that asking the city to raise taxes and utility rates is crazy. Some have even suggested we cut off the retirees or allow the city to slip into bankruptcy. Most of our members realize that neither of these solutions are viable options. Our city would lose in court once the retirees sued, and bankruptcy would only decimate our bond rating, thereby eliminating any ability to build new streets or attract new business. As a result, business and property owners will have to swallow hard and prepare for increased costs.
Mr. Luntz is right: Americans want elected officials to be held accountable for their actions and to use common sense in the decision making process. Without accountability, elected officials will resort to politics and dismiss common sense when it comes to making decisions. This lack of accountability and disregard for common sense is what got us in trouble in the first place.
Email the mayor and the council your thoughts. Urge them to stay the course until all fourteen recommendations have been fully implemented and we can once again see the light at the end of the tunnel.
The mayor can be emailed at hbergson@ci.duluth.mn.us; city councilors can be emailed at council@ci.duluth.mn.us.
posted by Andy Peterson www.duluthchamber.com at

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