City needs concession to balance budget

Greenfield - The city and its firefighters have another week to reach an agreement on a health insurance plan before officials have to consider making 2012 budget adjustments that could affect other departments.

Greenfield Mayor Michael Neitzke said service reductions, layoffs in all areas (including public safety) and reductions in benefits for non-emergency employees might be necessary.

The Greenfield Firefighters Association had asked Milwaukee County Circuit Court Judge Maxine White for a 30-day delay in implementation of a change in health insurance. White denied that request last week, but issued a temporary restraining order until Oct. 20. That was meant to give the two sides more time to reach an agreement.

The city wants concessions from the union to help it balance its 2012 budget that is in a vise because of a loss of state aid and new state limits on how much the city can raise its property taxes.

Because the city is up against a deadline to finish its budget, Neitzke said he will submit an alternative budget that cuts expenses if negotiations don't yield the needed savings and if the restraining order is extended.

If no agreement is reached, the hole in the city's 2012 budget could be $500,000, he said.

The city changed the health care plan for all employees because health care is such a big driver of municipal expenses, Neitzke said. Recognizing that, state legislators earlier this year gave municipal governments the power to unilaterally change health plans for employees including emergency personnel.

The new plan has higher deductibles and co-pays and employees are paying more toward premiums, he said.

The city gave both the police and fire unions the option to voluntarily be part of the new health care plan or a different plan design, Neitzke said. While the police agreed to the plan covering other city workers, firefighters balked, saying the new arrangement was unfair.

Neitzke said he is relieved that the police went along with the plan because he was in an awkward position. The state legislation left half the city's municipal workforce getting something other city workers were not, he said.

- Jane Ford-Stewart