Chicopee passes $241 million budget despite concerns over health insurance [masslive.com]

MassLive.com

CHICOPEE — The City Council adopted next year’s budget just days before a new fiscal year, with several members voting no in protest.

They remain unhappy that health and dental insurance premiums were paid to employees and retirees and their dependents who have died or resigned.

The council voted 9-4 to adopt a $241.7 million budget for fiscal year 2024, which begins Saturday. The budget is an increase of 4.6%, with much of the rise going to pay for education.

While no councilors said they were against the spending plan, issues over the health insurance problems, which are believed to date back at least five years, sparked heated discussions among councilors.

“I do think overall it is a decent budget, it is a conservative budget, unfortunately I’m not going to vote for the budget tonight as a statement. I’m concerned about the HR (Human Resources) budget,” Councilor Derek Dobosz said. “I’m confused the City Council has never been updated on the issue.”

He was not alone. City Councilor Delmarina Lopez said she was also concerned that the City Council did not get the answer about a $15 million line item in the human resources department that is labeled for health insurance. She said the budget process should have allowed time for councilors to get answers.

“Who does the overseeing of the health insurance?” Councilor Mary-Elizabeth Pniak-Costello asked. “We have a great, great city but we have a problem here and it has to be fixed.”

Mayor John L. Vieau has said a consulting firm has been hired to do the painstaking work of reviewing each line item to ensure the city is only paying for premiums for eligible employees, retirees and their dependents. He is also conducting finalist interviews for human resource director, a position which has been vacant for about a month, and is hoping to offer a candidate the job by the end of this week.

When several of the councilors proposed cutting the $15 million health insurance line item until they could get answers, others protested that the money is needed to pay premiums for all employees and such a move could cut off funding for medications, treatments and medical appointments.

“Are we putting people’s health insurance at risk?” Councilor Shane Brooks asked. “If we wait and cut these out tonight, people are going to have their health benefits delayed and that’s unfortunate.”

He recommended instead the City Council continue a plan to discuss the issue in the Ordinance Subcommittee with the auditor, treasurer, mayor and human resources employees, so councilors can get answers to their questions.

Councilor George Balakier agreed, calling any proposal to eliminate funding for health insurance premiums “a really dangerous move.”

Not all councilors found the health insurance issue a barrier to approving the budget.

“The FY budget, in my opinion, is the best budget the City of Chicopee has offered in my more than a decade involvement,” Councilor Joel McAuliffe said. “We have record funding for schools, our seniors, parks and rec(reation) and city services, a professional city government, a fully funded pension system, our workers are finally getting closer to getting paid what they deserve to be paid. The city is moving the right direction. I’m thrilled to be part of it.”

He called it a testament to the mayor, City Council and city employees that Chicopee came through the pandemic without any serious financial difficulty and said the budget will move the city forward for the future.

McAuliffe said he has voted against budgets in the past because he does not feel they fully fund the schools. But between federal pandemic relief money and a sizable increase in state funding, the city’s education budget will grow by $9.7 million in the new fiscal year and allow for additional teachers, security officers, supplies and other positions.

“I can’t see not passing this budget because of one line item. They know there is a problem and they are working on it,” Councilor Gerard Roy said.