To the editor:

Second chances for good deals don't come around often, but the recent action by the state Legislature extends the deadline until Dec. 1, 2008 for cities and towns to join the Group Insurance Commission (GIC).

Although Hamilton's astute town administrator Candace Wheeler secured financial assistance in July for a grant to access private-sector, professional benefit analysis, the town's selectmen voted in late September to study the issue for another year without disclosing their reasons for the deferral. What were the results of the consultant's study, and what are the potential financial savings that would accrue to the town by joining GIC?

While I realize that a negotiating committee comprised of union employees and retirees must attain a 70-percent majority to make the change, the selectmen have an obligation to disclose the cost/benefit analysis that led them to table the decision for another year. Savings of about $70,000 to $75,000 per year, without any benefit adjustment, are nothing to sneeze at, particularly in these challenging economic times. Even if the financial benefits were more modest, the health-care cost growth for cities and towns is almost double the GIC rate on an annualized basis.

The neighboring town of Wenham took the initiative this year and negotiated a favorable financial outcome for the town and its union and retiree constituents. It is anticipated that Wenham will save more than $100,000 per year, as well as increase health care coverage from 60 percent to 75 percent for retirees and provide dental coverage. On top of that, the town administrator has represented that families will save $100 per month on overall health-care contributions.

In Groveland, with 65 employees, the town is expecting to save an estimated $120,000 to $150,000 per year by joining GIC.

These difficult economic times necessitate that town government capitalize on all opportunities to save dwindling taxpayer dollars. Hamilton does not have to be a pathfinder in this quest — there is clearly a growing trend toward municipal participation in the GIC. With its superior purchasing power, GIC can negotiate more favorable financial contracts with health maintenance providers, which helps to contain the upward climb in health-care costs.

To avoid cuts in service, employee layoffs, and perennial overrides, the town of Hamilton and its union partners need to go back to the drawing board now, while there is a second chance to do so. In our collective effort to identify real savings without damaging the quality of our educational and municipal services, the selectmen should be strongly urging the Hamilton-Wenham School District to act now to meet the new deadline in December.

If, however, the town of Hamilton's municipal government and school district have researched this issue thoughtfully, and arrived at different decision; or it can be shown that the economics of a switch to GIC would not be favorable to the town; then that information should be made public and shared with the community at large.

There is everything to be gained from an open and responsive government, at this time, when homeowners are carefully controlling all of their spending.

Bob Baker

Hamilton