Union Monopoly Dubbed "4th Branch" of Government at Forum

February 27, 2004

State of the City's Finances: How Will Worcester Balance the FY05 Budget

Eric Kriss, Commonwealth Secretary of Administration and Finance
Full text of Eric Kriss' remarks.

John Pranckevicius, City of Worcester Budget Director

Jim DelSignore, City of Worcester Auditor
Full text Jim DelSignore's remarks.

Contact us for a videotape copy of this forum

February 27, 2004 (Worcester, MA) -- State Secretary of Administration and Finance, Eric Kriss, addressed a Worcester Regional Research Bureau forum along with City budget director, John Pranckevicius and City Auditor Jim DelSignore at an event moderated by WBDC President David Forsberg.

Kriss addressed what he called the "fourth branch of government," the public employee unions which have a monopoly on labor for the state and municipalities. He explained that unions--by law--collect mandatory payments from all employees--regardless of union membership.

Kriss cited a recent Research Bureau report, as well as data released from the City budget office and Worcester Public Schools that show how municipal employee raises and health benefits are placing an inordinate strain on city budgets.

Secretary of Administration and Finance, Eric Kriss, "opposition to a labor monopoly is not anti-union any more than opposition to a business monopoly is anti-business"

City Manger, Tom Hoover, standing center

The City Manager voiced his agreement with the Secretary's assessment of Worcester's predicament. Hoover asked if health insurance contributions could be addressed through state level actions, as has been done for state employees. City Councilor Konnie Lukes asked how a reform effort could get off the ground in a state controlled by the Democratic party with extensive ties to the unions.

Pranckevicius echoed some of Kriss's assessments also, explaining that the costs of union negotiated salary increases and health insurance (20% increase in Worcester) will lead to additional layoffs this year. He also indicated that help from the state may be necessary to change the status quo. DelSignore offered a whirlwind breakdown of Federal, State, and local finances, and explained that many of the City actions used to get through FY04 may make FY05 more difficult as one-time actions left few reserves at the state and local level.


Kriss also used the occasion to announce that Worcester's Courthouse project will proceed, with ground breaking as early as this summer.