House Protects Education Jobs with Health Care Reform Vote
You might not expect to see “health care costs” on the list of priorities for a business organization focused exclusively on education. And, we at MBAE didn’t expect to be involved in this debate either. That changed, however, when the findings of our report on the foundation budget, School Funding Reality: A Bargain Not Kept, made it clear that health care costs have become the ultimate education issue.
As I explained in a previous post, our analysis found that despite large increases in Chapter 70 state aid from 1993 to 2000 that brought districts up to foundation (targeted spending levels to meet specific programmatic goals), the dramatic increase in school employee health care costs since 2000 have swallowed these additional funds and crowded out funding for classroom expenditures that directly impact student learning.
When the House Ways & Means Committee unveiled its FY2012 budget proposal, MBAE’s report was cited repeatedly as providing critical evidence that education funds were being diverted to pay for insurance benefits (see April 13 post). Only two weeks later, the Massachusetts House of Representatives voted 113-42 to give cities and towns the flexibility required to control skyrocketing health care costs and protect hundreds of municipal jobs.
The House language lets municipal officials choose plan designs and set co-pays and deductibles outside of collective bargaining but would not affect negotiation with unions over the percentage of premiums paid by employees. The move has the potential to save $100 million statewide while maintaining high quality benefits for municipal employees that are at least equivalent to those state employees receive.
A recent study by the Massachusetts Taxpayers Foundation found that the average municipal family plan premium of $20,925 is $5,600 higher (37 %) than the average private sector family premium, 33 % more than the federal plan premium, and 21 % more than the state’s Group Insurance Commission plans.
The debate now moves to the Senate. Make sure your Senator has the facts from our report about the impact of school employee health care costs on school budgets. For more information about MBAE’s position, read Board Member Joe Esposito’s blog post and the release from the Massachusetts Municipal Association press conference where he spoke on this issue!
MBAE is working with business groups and other organizations to reform municipal health care and protect education jobs and funds. Click here to read the Coalition Statement and Press commending the House for its leadership and action.
