MEMPHIS, TN - Fighting for their benefits, that's what dozens of city employees showed up at City Hall to do Wednesday, September 1, 2010. The Mayor has asked business leaders to help streamline city government. Cops and firefighters showed up to have their say.
This is all part of Mayor A C Wharton's “Strategic Business Model Assessment Committee.” The Mayor says the city government’s business model is broken. He's asked local business minds for advice on how to fix it. The group discussing health care and benefits met Wednesday afternoon, and they had a lot of company.
From health care plans to pensions, this committee is looking for ways to cut costs.
“It looks like they're looking to cut us,” said Firefighters Association President Larry Anthony. “And we're not going to be any part of that.”
From Morgan Keegan to FedEx, these business leaders have proven their worth.
“Hopefully, when it's all said and done, we'll be able to pass along a set of recommendations to Mayor Wharton that he can then work with the City Council on and help close that budget gap that exists today,” said retired Morgan Keegan President and CEO Doug Edwards, who chairs the Mayor’s committee.
But the City of Memphis’ government has a big budget problem.
“Like having a teenage child that had a credit card with no limit on it for the last 10 years,” Edwards told the group. “And, all of a sudden, you get laid off and say we're going to have to put a limit on your credit card, that's kind of where we're at.”
A situation made even worse by the millions owed to Memphis City Schools.
“It's about creating business efficiencies,” said Edwards. “The specifics of the $57 million shortfall, that just makes it tougher for the Mayor, and, unfortunately, we had problems before we got that.”
These City workers say changing their way of life shouldn't be the solution.
“We worked hard to have what we have now,” Larry Anthony said. “We deserve it. We earned it, and we want to keep it.”
And they want a say.
“It's strictly private sector,” Anthony said of the committee meeting. “They've got one labor person on here that represents the police department. Other labor organizations have nothing involved in it. It's wrong.”
Committee members say they get the message, and they want to hear from all sides.
“At the end of the day, this is about people,” Edwards said. “And I understand why every one of these people are here, because, at some point in time, the recommendations from this group and the actions of the City Council and the Mayor may have an impact on these people.”
And their efforts didn't go unnoticed. They stopped the meeting altogether. The Fire Marshall said they were violating code.
Some snapshots of the City's financial situation; the employee health care program costs the City $109 million a year. The City also took a hit when the market did. From June of 2008 to June of 2009, the city's pension assets dropped $500 million. Committee members say a lot of other cities are facing the same situation right now, but it's clear some tough decisions will have to be made.
The personnel and benefits committee is one of five subcommittees the Mayor created to make recommendations. It meets again in two weeks on September 15th. The City workers requested they find a bigger room.
