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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | December 10, 2013 12:46 PM |
|---|---|
| From: | Representative Sid Michaels Kavulich |
| To: | All House members |
| Subject: | Consolidation of public school employees' health care benefits |
In the near future, I plan to introduce legislation directing the Legislative Budget and Finance Committee to determine the feasibility and cost-effectiveness of placing public school employees under the Commonwealth's jurisdiction for the purpose of providing health benefits. In recent months, our chamber has thoroughly discussed one of the most contentious issues in Pennsylvania, property taxes. Unfortunately, the discussion has been focused on the reduction or elimination of those taxes, rather than the causes. Regardless, many efforts have failed due to concerns regarding revenue neutrality, the future solvency of school districts due to state funding formula issues, and various other reasons. My resolution looks to examine one of the highest expenses incurred by school districts, employee health care benefits. As you may recall, in 2003, the House adopted House Resolution 159, which commissioned the same study I am proposing. In February 2004, the LBFC released a report entitled, “The Feasibility of Placing Public School Employees Under the Commonwealth’s Jurisdiction for the Purpose of Providing Health Benefits,” which concluded that local education agencies could have saved $585 million, or 23.9% in health care costs out of an estimated total expenditure of $2.4 billion in 2003. I believe it is time that we revisit this study and gather up-to-date information to determine the achievability of such a proposal. Please know that my reasons for introducing this resolution are not just property tax relief. I believe that placing public school employees under the Commonwealth's jurisdiction for the purpose of providing health benefits could also help reduce the duration and frequency of teachers’ strikes. In my district, one of the most cited issues in teacher strikes is the rising costs and reduction of health care benefits. As you may know, the size and composition of an insured group directly impacts the costs of coverage, with larger groups being afforded better rates. Future legislation resulting from the findings of this study could provide a variety of benefits to all Pennsylvanians including lower health insurance costs for many public sector employees, fewer and shorter teacher strikes, and lower tax liabilities for all Pennsylvanians. Please join me in sponsoring this important legislation. If you are interested in co-sponsoring this legislation, please contact my Taylor District office, at 570-562-2350. |