On January 29, when Governor Romney announced a $114 million cut in local aid for the current fiscal year, to say nothing of a looming FY04 $2 to 3 billion deficit, he also filed a 5-year 2003 ERI bill for local governments. The dates and parameters are exactly the same as the 2002 ERI.

Chapter 116, last year’s local ERI, was passed by the Legislature and signed into law on May 15. It allowed cities, towns, counties, authorities and districts to offer a five-year service time or age bonus to eligible employees who retired by the end of 2002 or earlier.

Acceptance of Chapter 116 by a local governing authority permitted the mayor, selectmen, etc. to set a limit on the number of retirements in total, and by group.

The city of Worcester, for example, set a limit of 100 Group 1 employees and 30 Group 4 (public safety) employees.

Boston adopted an ERI that set a limit of 350 Group 1 employees, 20 Group 2 employees and no Group 4 employees.

Although communities could also limit the bonus to less than five years, only two of which we are aware chose to do so. North Adams offered a three-year bonus and Rockport’s 3.5-year bonus with a one-person limit was obviously tailored for a specific individual.

Prior to 2002, the last statewide local early retirement legislation was passed in 1993. That year, 62 cities and towns offered an ERI, and there were approximately 1,400 retirements.

However, the revenue slump of 1992-93 did not approach the magnitude of the current shortfall, which is now in its third year and facing a lengthy recovery period.

Unfortunately, even with early retirements, it is doubtful that local governments can avoid some layoffs, which, unlike the state, they were able to dodge last year.