Mayor James Fiorentini said he had a "hopeful meeting" Jan. 7 with some leaders of city workers' unions regarding a move to join a state-sponsored insurance plan.

The Group Insurance Commission, which provides health and life insurance to all state employees and retirees, is also open to municipalities. Fiorentini has said Haverhill could save $2 million, on average, if the city were to join the commission.

Current state law, however, requires 70 percent approval of city unions and Haverhill municipal workers have so far been unwilling to switch.

But during a Municipal Outlook Breakfast held on Jan. 9, Fiorentini said he believes there might be movement on the part of some of the more reluctant union leaders, who have either re-entered discussions with him or have agreed to begin.

Groveland Treasurer and Tax Collector Greg Labrecque said his town's 60-plus employees agreed to join the GIC, which saved $150,000.

House Speaker Sal DiMasi has indicated that he would support legislation to allow communities to join the GIC without union approval. Merrimac Finance Director Carol McLeod and Fiorentini said they support that measure, and other tools from the state that would allow more autonomy in raising revenue.

Fiorentini said that despite gloomy financial news and predictions, Haverhill is moving forward in 2009 by renovating former factories for downtown housing and welcoming Southwick Clothing, maker of Brooks Brothers suits.

The company, which is moving into the industrial park on Route 97, recently received state approval for tax incentives promised as part of the package that lured the company here.

"It was between Haverhill and Thailand," Fiorentini said, "and Haverhill won."

Fiorentini said Haverhill has about $4 million in reserves, but that will not be able to absorb a predicted 10 percent cut in state aid that is on the horizon.

Because the schools side of the budget is not allowed to carry any reserves, Fiorentini said he worries education will bear the brunt of the cuts.

A cut of 10 percent of Haverhill's total local aid would equal about $4 million, Fiorentini said.

The Municipal Outlook Breakfast was sponsored by the Greater Haverhill Chamber of Commerce and organized by its Government Affairs Committee.

Speakers included Boxford Selectmen Chairman Charles Costello and Georgetown Town Manager Steve Delaney.