Gov. William Weld plans to ask the Legislature to approve appointment of a state receiver to take over operation of the bankrupt city of Chelsea.
The governor was to file a bill Friday morning that would replace Chelsea's mayor with a Weld-appointed receiver and make all other elective offices advisory.Weld said he wants the bill acted on within 48 hours and the Legislature planned to hold a rare Saturday session on the issue.
The first-term Republican governor huddled with his top financial and legal advisers Thursday before announcing he would propose the receivership.
Weld said the receiver would be given extraordinary powers to deal with Chelsea's extensive financial problems, including the ability to "revisit" existing union contracts, but would not be empowered to raise taxes or other revenues.
The receiver could remain in control of the city for as long as five years, Weld said.
"I don't think we have any choice," he said at a Thursday news conference. "The city has run out of money and no one is in charge."
The city would be the first in the state since 1934 to be taken over by a receiver.
The decision came following the refusal of the state Finance Control Board Wednesday night to approve an interim one-month city budget. Mayor John Brennan subsequently urged the state to put the city into receivership.
"We legally can't spend one penny," Brennan said.
The mayor said police have told him they will remain on the job, and said he is confident the firefighters will also continue working, even though the city cannot meet its next payroll.
"No one can get paid now," Brennan said.
"It's time to take Chelsea out of the hands of the politicians and put it into the hands of people who have the financial capability to do something for the city," he said.
City aldermen met Thursday night and voted 6-3 to ask the mayor to resign, citing opposition to the receivership idea.
"I believe he has orchestrated a deal to turn the health of the city over to strangers," Alderman Stephen Powers said. "This is a mayor selling the city down the river."
Brennan, who refused to resign, has been pushing for receivership because he said city residents have refused to allow him to raise property taxes, and he has been thwarted in attempts to cut the city's payroll because of union contracts.
The state's failure to approve the interim budget forced the School Department to keep schools for 3,700 pupils closed until the budget situation is resolved.
The state Finance Control Board had passed interim budgets for July and August, but voted 6-2 against passing a third one-month budget, leaving the city without authority to spend money or pay its bills.
Chelsea faces a $9.2 million deficit in its $40 million annual budget, officials estimate.