FROM: State Rep. Don Walko, D-North Side

TO: Editor

DATE: Feb. 4, 2008

MEDIA CONTACT: Ben Turner, 717-787-7895, bturner@pahouse.net

State Representative Don Walko Reports:

Walko backing way to save taxpayers on school costs

            The House Education Committee recently approved legislation I am co-sponsoring that could save Pennsylvania hundreds of millions of dollars, hold down property taxes and reduce the likelihood of teacher strikes.

The bill (H.B. 1841) could eventually place most public school teachers and other school employees in Pennsylvania under a statewide health benefits plan. One of the biggest advantages to a statewide plan is the leverage that 500 combined school districts would have when purchasing coverage. One legislative study has already suggested that a statewide plan could lower health-care costs for school districts by half a billion dollars.

Skyrocketing employee health-care costs are the one of the biggest – if not the biggest -- drivers of school budget increases and rising property taxes. Employee health benefits are also routinely the biggest point of contention during contract negotiations, and the cause of many contract impasses and teacher strikes. Addressing school employee health-care coverage is a big part of addressing school cost containment. Any effort to reduce property taxes will be compromised if we don't do something to control the costs that drive property tax increases.

The bill would create a Public School Employees' Benefit Board comprised of representatives from state government, local school boards and school employees. The board's first responsibility would be to study the way health benefits are delivered in school districts. Depending on the study results, the board would have the option of designing and implementing a statewide health benefits plan for school employees, or implementing an alternative plan to lower health benefits costs, such as encouraging best practices or helping school districts consolidate certain aspects of their current plans, such as prescriptions.

If the board chose a statewide plan, it would still have the flexibility to design a plan that ensures uniform, quality coverage for teachers and other school employees while recognizing regional differences in cost and other factors. School districts would enter the statewide plan as their current contracts expire.

Between 2003 and 2005, the cost of providing health coverage to employees rose by 24 percent in Pennsylvania school districts. School districts pay about $1.5 billion a year on employee health care, about $1 out of every $6 collected in school property taxes.

The legislation has been sent to the full House for consideration.

If you have questions on a state-related issue or subject, please call my office at 412-321-5523.