City officials declared their inability to pay additional benefits for veterans who, after returning from service, became disabled while working for a municipality, thus creating controversy over local option Chapter 157, Part II of a bill approved in the state Legislature in 2005.
“We can’t afford it,” Mayor Edward “Chip” Clancy said, referring to Chapter 157, Part II.  “Municipal persons, who left the service, then worked for a municipality and were injured while working are entitled to a stipend up to $300.  We are doing that,” Clancy said.
“Section II is different. It allows a municipality to make the payments retroactive,” Clancy said.  The cost is too much for the city to absorb, especially in light of the current fiscal restraints being placed on the city by dwindling local aid and an increase in fixed costs, such as health care.
City officials say it is important to note that the city isn’t holding back on war veterans who were injured on the battlefield, but instead are deciding to exercise their right to not enact an option that would be fiscally irresponsible.
“The state passed this on to local municipalities, because they themselves know that the state couldn’t afford it.  Instead, they pass the buck and let cities and towns deal with it,” said one state official, who requested anonymity.  
With a budget that is threatening massive lay-offs, schools closings and a reduction in services, Clancy thinks he is doing the right thing by bypassing the voluntary statue, which could cost an estimated $400,000.
When it comes to disabled veterans, Lynn has gone above and beyond what is required by any community.
Municipal workers serving in Iraq and Afghanistan are paid the difference in their city salary and military salary.  Though it is a requirement now, Clancy has been voluntarily making up the difference.
“I have never had a problem with doing that, and I am proud to do that.  With that said, the city just can’t afford to pay retroactive stipends,” he said.
How much of an influence Clancy really has on the acceptance of of the voluntary statue is debatable, because it must be approved by the Lynn Retirement Board, which Clancy neither chairs, not sits on.