Spokane7
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March 9, 2011 in Opinion
Editorial: Fewer plans for teachers could save state millions
As Washington state lawmakers work to close a difficult budget hole that will undoubtedly lead to hundreds of educators losing their jobs, they ought to closely read a report from the state auditor’s office that could save the state significant money on health benefits for teachers.
The office hired a consulting firm to study the more than 1,000 pools of money that finance the more than 200 health benefit packages offered by the 295 school districts and nine educational service districts across the state. The report suggests that by consolidating those pools, paring the offerings and making other changes, the state could potentially save $180 million per biennium, or enough to cover 1,000 teacher pay-and-benefit packages.
It’s not news that the state has myriad plans. As a nod to local control, the state has given school districts the money and allowed them to devise their own plans as they bargain with teacher units. But with budgets so tight, the state should take back control and curb the administrative costs associated with managing so many different plans.
By putting teachers into a similar arrangement as other state employees, the state can also narrow the wide differences in benefits that teachers receive. The audit found that 52 percent of teachers cover just themselves and pay, on average, 5 percent of their out-of-pocket premium costs, or $27 a month. But average teachers on the family plan pay 39 percent of their premium costs, or $500 a month, which is higher than other state employees and many private-sector plans.
The audit notes that this disparity runs counter to the goal of pooling funds. In 1990, the Legislature clarified the intent, saying the system was created to “eliminate major differences in out-of-pocket premium expenses for employees who do and do not need coverage for dependents.”
The unions themselves have highlighted inequities with the system, but would probably not support changes that would lessen benefits. However, any changes will mean there are going to be winners and losers. The state does not have the money to increase its share, and any savings it can pick up through consolidation might be needed to help fill the chronic budget hole.
Of the 23 states studied by the consulting firm, 21 offer teachers health care benefits through statewide plans. The report notes that for technical reasons it would be difficult to put teachers on the same plans as other state employees, but the state could set up a parallel system with similar choices. As each unit’s collective bargaining agreement expires with a district, teachers would transition to statewide options.
The consolidation of health care packages has the potential for big savings and addresses the inequity issues. The state can’t afford to overlook this opportunity.
To respond to this editorial online, go to www.spokesman.com and click on Opinion under the Topics menu.
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hawken on March 09 at 7:22 a.m.
The only reason this is just now coming to light, is the push back against public employee unions.
Ninety million a year in waste is not a small number. Only one and another example of the wasteful mismanagement of tax dollars.
It does exemplify the need for the public to continually push back on excessive government spending, in all areas.
DickAdams on March 09 at 10:14 a.m.
I don`t think its a secret, governmental growth is running amok. I`m encouraged though about the Americans opening their windows and shouting, “we`re mad as hell and we are not going to take it anymore”. Hip, hip, hooray!!
Dazzeetrader11 on March 09 at 11:32 p.m.
No it’s a close secret Dick. Nobody knows but the unions and the government.Kinda like thieves….nobody will speak up unless they’re threatened by daylight.
When the government ‘s leaders ( Dems in Wa St) don’t want to lose thir jobs, there’s more in it for them to tell the public than continue to be blackmailed by the health plans supported by the unions. Cafeteria plans galore for their members.
Cut it to the cheapest ten and let them chose. Things will straighten out. And remember this: citizens pay for all salaries whether it’s the unions or the government. There’s more than a few choices to the taxpayers. Cut both and have these people live just like the public does, Fund your own pensions and fund your own insurances. As an aside…government unions funded by the public are now getting 42% more than non government jobs who do the same thing. Noose is closing on these unions. They just don’t like it. Wahhhhhhh……..wahhh.but it’s not the deal we made! Oh wahhhhhhh….the party’s over kids. The old trade off of longeveity but for less money and benefits….gives BOTH now.