PRINTER'S NO. 734
No. 100 Session of 2005
INTRODUCED BY ORIE, BOSCOLA, PILEGGI, PIPPY, WONDERLING, WOZNIAK, RAFFERTY, RHOADES, D. WHITE, WAUGH AND LEMMOND, APRIL 25, 2005
REFERRED TO LOCAL GOVERNMENT, APRIL 25, 2005
A RESOLUTION 1 Directing the Legislative Budget and Finance Committee to 2 investigate and make recommendations for the establishment 3 and administration of a voluntary, opt-in Statewide system 4 for health care and other employment-related benefits, 5 including and excluding pensions for purposes of comparison, 6 for 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 19 share provision of services and financing of employee benefits 20 is widely perceived as creating a risk for future tax increases;
1 and 2 WHEREAS, County, city, borough and township officials are 3 searching for ways to reduce taxpayer expenses without cutting 4 employee benefits or residential services; and 5 WHEREAS, In some regions of this Commonwealth, social 6 services and public health services are provided by one central 7 authority for many surrounding municipalities, thus providing 8 one model for consolidation; and 9 WHEREAS, It is unknown whether a group benefits purchasing 10 and financing system would save significant revenue; and 11 WHEREAS, It is unknown what type of group purchasing system 12 for health care and other employee benefits is the most cost 13 effective; and 14 WHEREAS, It is unknown which participation rates or other 15 financial thresholds are the most economically viable; and 16 WHEREAS, It is unknown what sort of Statewide plan would 17 reduce member expenses and standardize costs, benefits and 18 administrative policies; and 19 WHEREAS, It is unknown how many different ways local 20 governmental service and benefits are calculated; and 21 WHEREAS, It is unknown whether a Statewide system which 22 standardizes costs and benefits would reduce benefits or 23 increase contributions for some member employees; and 24 WHEREAS, It is unknown what percentage of employees of local 25 government units are represented through collective bargaining 26 agreements, what terms and conditions exist under those 27 agreements and when those agreements expire; and 28 WHEREAS, It is unknown what range of choices, participation 29 levels, contribution levels and benefits portability, including 30 transfer of assets and transfer of benefits, would encourage 20050S0100R0734 - 2 -
1 maximum enrollment in a Statewide system; and 2 WHEREAS, It is unknown whether a Statewide system should be 3 administered through an existing State agency or through a newly 4 created administrative body and, if so, how the administrative 5 body should be constituted; therefore be it 6 RESOLVED, That the Senate direct the Legislative Budget and 7 Finance Committee to commence a study to investigate existing 8 benefits models within and without this Commonwealth upon which 9 legislation might be drafted to create a voluntary, opt-in 10 Statewide system for group purchasing of health care and other 11 employee benefits for uniformed and nonuniformed employees of 12 local government units; and be it further 13 RESOLVED, That the Senate direct the Legislative Budget and 14 Finance Committee to make recommendations on ways to establish 15 such a group benefits purchasing and financing system, 16 including, but not limited to, any necessary legislation; and be 17 it further 18 RESOLVED, That the Legislative Budget and Finance Committee 19 submit a report of its findings and recommendations to the 20 Senate within one year of the adoption of this resolution. C8L82RZ/20050S0100R0734 - 3 -