PRINTER'S NO. 3149
No. 568 Session of 2008
INTRODUCED BY DePASQUALE, YUDICHAK, CAPPELLI, BELFANTI, BLACKWELL, BOBACK, CALTAGIRONE, CURRY, DALEY, FREEMAN, GEORGE, GINGRICH, GOODMAN, HENNESSEY, HERSHEY, HORNAMAN, KIRKLAND, KORTZ, LONGIETTI, McILVAINE SMITH, MELIO, MYERS, NAILOR, PALLONE, PASHINSKI, PETRONE, READSHAW, SHIMKUS, SIPTROTH, STURLA, SWANGER, THOMAS, WANSACZ AND YOUNGBLOOD, JANUARY 29, 2008
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 29, 2008
A RESOLUTION 1 Directing the Legislative Budget and Finance Committee to study 2 and make recommendations for the establishment and 3 administration of a voluntary, opt-in Statewide system for 4 health care and other employment-related benefits, including 5 and excluding pensions for purposes of comparison, for 6 uniformed and nonuniformed employees of local government 7 units. 8 WHEREAS, There has been extensive discussion in many public 9 and private forums of the potential risks and benefits of 10 consolidating certain functions of local government units within 11 this Commonwealth; and 12 WHEREAS, The debt of certain larger government units may 13 preclude their actual merger with surrounding municipalities; 14 and 15 WHEREAS, Many local government units throughout this 16 Commonwealth struggle to meet their obligations to their 17 employees without limiting services to residents; and 18 WHEREAS, The continuing failure of local government units to
1 share provision of services and financing of employee benefits 2 is widely perceived as creating a risk for future tax increases; 3 and 4 WHEREAS, County, city, borough and township officials are 5 searching for ways to reduce taxpayer expenses without cutting 6 employee benefits or residential services; and 7 WHEREAS, In some regions of this Commonwealth, social 8 services and public health services are provided by one central 9 authority for many surrounding municipalities, thus providing 10 one model for consolidation; and 11 WHEREAS, It is unknown whether a group benefits purchasing 12 and financing system would save significant revenue; and 13 WHEREAS, It is unknown what type of group purchasing system 14 for health care and other employee benefits is the most cost 15 effective; and 16 WHEREAS, It is unknown which participation rates or other 17 financial thresholds are the most economically viable; and 18 WHEREAS, It is unknown what sort of Statewide plan would 19 reduce member expenses and standardize costs, benefits and 20 administrative policies; and 21 WHEREAS, It is unknown how many different ways local 22 governmental service and benefits are calculated; and 23 WHEREAS, It is unknown whether a Statewide system which 24 standardizes costs and benefits would reduce benefits or 25 increase contributions for some member employees; and 26 WHEREAS, It is unknown what percentage of employees of local 27 government units are represented through collective bargaining 28 agreements, what terms and conditions exist under those 29 agreements and when those agreements expire; and 30 WHEREAS, It is unknown what range of choices, participation 20080H0568R3149 - 2 -
1 levels, contribution levels and benefits portability, including 2 transfer of assets and transfer of benefits, would encourage 3 maximum enrollment in a Statewide system; and 4 WHEREAS, It is unknown whether a Statewide system should be 5 administered through an existing State agency or through a newly 6 created administrative body and, if so, how the administrative 7 body should be constituted; therefore be it 8 RESOLVED, That the House of Representatives direct the 9 Legislative Budget and Finance Committee to commence a study to 10 investigate existing benefits models within and without this 11 Commonwealth upon which legislation might be drafted to create a 12 voluntary, opt-in Statewide system for group purchasing of 13 health care and other employee benefits for uniformed and 14 nonuniformed employees of local government units; and be it 15 further 16 RESOLVED, That the House of Representatives direct the 17 Legislative Budget and Finance Committee to make recommendations 18 on ways to establish such a group benefits purchasing and 19 financing system, including, but not limited to, any necessary 20 legislation; and be it further 21 RESOLVED, That the Legislative Budget and Finance Committee 22 submit a report of its findings and recommendations to the House 23 of Representatives within one year of the adoption of this 24 resolution. K5L82RLE/20080H0568R3149 - 3 -