There has been plenty of talk regarding the potential of Duluth going bankrupt. Opinions are varied: some think it is a remote possibility and others view it as an eventual reality. Regardless of one’s conviction, the absolute certainty is that Duluth can no longer afford its retiree health care benefits.
We promised health care for life and we must provide it – although we must do in a way that does not break the bank. To date we have heard, and verbally supported, the City Council Task Force on Retiree Health Care report and action plan. City administration indicates they are making progress. Yet, in reality, the solutions remain elusive. Progress will be noted when the five current employee bargaining units offer significant concessions. These concessions must include significant reductions in their health care plans that reflect significant co-pays and deductibles, and, at the same time limit provider payee options.
This is a difficult pill for current employees to swallow and an especially bitter one for retired employees. But these concessions must be made and made soon. We can no longer think that we can raise taxes or utility rates for businesses and citizens without addressing the expense side of the equation. This includes demanding flexibility on the part of employees and the potential option to bring significant reform to the antiquated civil service system.
We all want our city to thrive economically. But to do so, we must begin to demand accountability. Mayor Bergson didn’t create this problem but he agreed to the job of solving the problem when he ran for mayor. We must now ask him and his administration for something past administrations could not or would not deliver: the ability, courage, and leadership to get the job done.
If the job does not get done, we’ll have a serious talk about the ramifications of poor fiscal management, including bankruptcy.
I, for one, prefer we get the job done now rather than waiting for a crisis.
**If you would like to hear more about this issue, attend the Chamber’s June 19 luncheon, featuring State Auditor Pat Anderson. Note the following details:
State Auditor to Address Duluth Financial Crisis and Implications
Monday, June 19
11:30am – 1:00pm
Holiday Inn, Great Lakes Ballroom
$20 – RSVP required
RSVP to
inquiry@duluthchamber.com or 218.722.5501 by Thursday, June 15
