Those state and teacher retirees, who retired prior to July 1, 2001, will receive the 3% COLA retroactive to July 1, 2002. An attempt to raise the COLA base from $12,000 to a higher level was unachievable this year due to the severe deficit. Thankfully, the COLA itself is built into the state’s pension funding schedule and was never in jeopardy.

The same can’t be said for a host of other important state programs that have either had the funding reduced or outright eliminated. Budget writers were forced to address a $2.5 billion deficit by raising $1.16 billion in new taxes, utilizing the rainy day and tobacco funds, and spending cuts.

What began as a mild economic downturn in March 2001, was exacerbated into a full-blown recession after the September 11 terrorist attack. Over the course of the 2002 fiscal year, state tax receipts dropped by $2.5 billion.

As news broke in the late fall that companies such as Enron had mislead investors, the stock market began a sharp decline. This decline, which worsened over the summer, was a further setback to state revenues that depend heavily on capital gains taxes.

“First and foremost, it’s important to note the Legislature honored the commitment to retirees and passed the full 3% COLA, which Acting Governor Swift did sign into law,” said Association President Ralph White. “State and teacher retirees will receive the retroactive (July 1) COLA payment in their August checks.”

All but one of our 104 city, town, county, authority, and district retirement boards voted for the maximum 3% COLA, which was paid locally in the July checks. The one exception, Attleboro, voted for a 2.6% COLA.

White went on to add, “By voting for a 3% COLA, these boards exercised their authority to the fullest for their retirees and survivors. They should be commended for their unwavering support.

“These tough times have proven the value of our 1997 COLA reform law (Chapter 17). Prior to 1997, a number of years passed where no COLAs were paid. Our new system, which established the COLA as part of the pension funding schedules, virtually ensures an annual payment will be made.”

Just minutes before the legislative session ended on July 31st, the Association’s lobbying team was able to override Acting Governor Jane Swift’s veto of retiree health care benefits, that would have raised some members’ premiums by as much as 120%.

Refusing to slip quietly into the annals of history, the Swift administration would also have cheated state retirees and a number of local retirees, including retired teachers, of their annual Medicare Part B reimbursement check.

In a shameless attempt to gain public support, Swift’s budget leaders termed the state’s share of Medicare premiums to be a “handout to sacred cows,” an unfounded charge, which ignored the fact that retirees save the state tens of millions of dollars each year by enrolling in Medicare.

“Shawn Duhamel and Bill Hill of our Association’s lobby team did an outstanding job under tremendous pressure,” said Association President Ralph White. Swift’s budget vetoes came only two days prior to the end of the session, leaving little time for overrides.

Leaders of the House and Senate made it clear that the state’s dangerous fiscal situation meant that most of the acting governor’s vetoes would have to remain intact and that there would be few if any overrides. “Swift’s $355 million in vetoes included $75 million in education, $31 million in aid to cities and towns and $60 million in Medicaid prescription drugs,” explained White. “There was simply not enough money available to override most of the vetoes.”

As word of the pending veto leaked out in the days prior to Swift’s action, the Association made the decision to send a letter to thousands of state insured retirees, asking that they contact their legislators. This rarely used tactic proved crucial to our lobbying efforts.

“There is no question that the phone calls from our members had a huge impact on the legislators,” said Association Legislative Chairman Bill Hill. “When the legislators heard that retiree insurance premiums would more than double, they were quick to come to our defense.”

Once again it was a core group of key legislators that spearheaded our efforts on the floor of the House and Senate. Without their support, the veto most likely would have been allowed to stand.

In the House, Reps. Maryanne Lewis (D-Dedham), Tom Petrolati (D-Ludlow), Brian Dempsey (D-Haverhill), Marty Walsh (D-South Boston) and Brad Jones (R-North Reading) prevailed heavily on Speaker Tom Finneran to bring the insurance override to the floor for a vote. Late in the evening, just before the session ended, the Speaker met the request.

“State retirees made a special plea, and a plea that had special appeal,'' said Finneran. “Retirees have just received a large increase in their insurance costs. It was not palatable to the members of House to double their premiums.”

Throughout the day, Senators Marian Walsh (D-West Roxbury) and Brian Joyce (D-Milton) were in constant contact with the Association in anticipation of the veto reaching the Senate. Both urged Senate President Tom Birmingham to suspend the rules in order to take up the insurance vote before time ran out at midnight.

“I can’t thank the legislators enough for what they did for our members. It had been touch and go for two days and at times prospects looked bleak,” recalls Association Legislative Liaison Shawn Duhamel. “Maryanne Lewis, Tom Petrolati, Marian Walsh and Brian Joyce made themselves available to us throughout our two-day fight. Many legislators were helpful, but these individuals really went out on a limb for retirees.”

“Although some employee unions had other priorites, there was total unity when it came to seeking the insurance override,” said Ralph White. “It’s always nice when we can all work together on an issue of great importance.”