MARCH 2005 - Is a Member of Romney-Controlled Finance Board - Tom Tramarco, a member of the five-member Finance Control Board, which oversees all fiscal activity in the City of Springfield, is now a member of the Springfield Retirement Board. Tramarco replaced Donna Williams as the mayor's appointee on the Board.

Board Created By City's Financial Plight

The Finance Control Board was created last year as the result of Springfield's financial plight, which saw the Western Mass. city seeking assistance from the state. In order to receive a $52 million loan a five member Control Board was established to monitor all fiscal activities of the city.

In addition to Tramarco, Romney also appointed Alan LeBovidge, the Commonwealth's Revenue Commissioner, to the Finance Control Board as chairman, and Michael Jacobson who heads a Cambridge consulting firm. The Finance Control Board's other two members are Springfield Mayor Charles Ryan and City Council President Tim Rooke. The majority vote, however, is under the control of Romney and his Chief Secretary, Eric Kriss.

When asked about the legislation that created the Control Board, Springfield Representative Gale Candaras said the Legislature was confronted with a situation where there were no other options.

"In seeking to get the financial relief we needed from the state there were actually no good options or choices. The city's request for grant money was denied. In order to receive a $52 million loan the Legislature and Governor demanded very strict financial supervision. The Finance Control Board has been granted most of the power of a city under receivership, such as happened in Chelsea," she said.

If the state had actually granted money to rescue Springfield from its fiscal dilemma, the Governor would have demanded receivership and all union salary contracts would have been voided. Under the current situation, contracts have been recognized, but the city will eventually have to pay back every cent of the loan, plus the salaries and expenses of the Control Board and its staff, which includes Philip Puccia, the executive director of the Board.

Health Insurance Under Fire

The empowered Finance Control Board has also shown its muscle in dealing with the Springfield group health insurance contract.

Last year when the city decided to drop its contract with Blue Cross-Blue Shield and award its contract to CIGNA beginning in January, the Finance Control Board told the retirees that they would be required to purchase Medicare Part B (if eligible). There had also been a promise that the retirees would be reimbursed the $78.20 monthly Part B payments.

"We now understand that this promise will not be kept," said Bob Brown, President of the Springfield Retired Police and Firefighters Association. "Since Medicare is now our primary insurer, we're saving the city millions of dollars. Our co-payments and deductibles have been doubled and tripled. The Control Board is also attempting to introduce a $2,000 hospital co-payment. We had one of the best insurance plans in the state before the Finance Control Board took over."

Brown, who is also a member of the city's insurance advisory committee, has found the Finance Control Board and the Mayor to be arrogant and indifferent to the retirees.

"The Finance Control Board is going after retirees in order to solve the fiscal problems of Springfield," he said. "These are the people who served and protected and developed this city and made it great. And now they are being stripped of one of the most important possessions left to them, a good health insurance plan. They've (Control Board) been arrogant ever since they came to Springfield. And Mayor Ryan, who was so approachable when he was first elected, is now indifferent and we can't get past the front desk."