As a community college educator you will be hearing a great deal about the cost of health benefits over the next few years. As reported here frequently, the 2011 Regular Session enacted unprecedented cuts for the next biennium. Since colleges must still provide these benefits, the missing revenue will undoubtedly affect the educational mission of each school.
The Texas Association of Community Colleges has compiled its summary of laws enacted by the 82nd Texas Legislature. Taken as a whole, the story is extremely grim. There will be plenty to say on the subject of instructional formula appropriations and many other issues, but the damage done to health benefits is especially dramatic.
For many years community college stakeholders have fought against a budgetary concept known as "proportionality" in funding their health benefits—a struggle that included a gubernatorial veto (actually two if you go back to Gov. Bill Clements) and subsequent restoration. Now the Legislature has accomplished a similar objective, simply by truncating the level of appropriations for benefits. Under classic proportionality, some colleges would have fared better than others, depending upon their level of state funding. Under the newly enacted regimen, all schools lose big.
Below is a concise narrative from TACC, some of which has been reported here before. Note the comparisons, which contain new information:
In the initial appropriations bill, the House appropriated $57.1 million for community college group health insurance ($266 million less than 2010-11 appropriation). The basis for the House appropriation was a methodology which treated community colleges like public school districts, $75 per employee per month.
In the Senate version of the initial appropriations bill, $198.4 million was appropriated for community college group health insurance; this appropriation was based on the ERS method for determining the cost of health insurance.
Led by Representative Jimmie Don Aycock (R-Killeen), HB 1 was amended on the floor of the House to restore health benefits to the Senate level. The floor amendment was adopted without opposition.
Funding Level:
According to the Legislative Budget Board, the level of funding for group health insurance (HEGI) for 2012-13 is 41.7%. For the last four biennia, HEGI for community colleges was appropriated at 83.5% (FY 2010-11), (FY 2008-‐09), 97.5% (FY 2006‐07), and 90% (2004-05).
We’re in some of the most difficult negotiations we’ve ever been in because of the economic environment, and health care is very much on the table
Posted by: Events Management Courses | November 14, 2011 at 11:05 PM