80/20 Legislation Moves

Senate Reforms, Restructuring and Reinventing Committee Chair Senator Mark Jansen’s (R-Gaines Township) plan to require all public employees to pay 20-percent of their health care costs took one step Wednesday as the panel approved Senate Bill (SB) 7 and Senate Joint Resolution (SJR) C. The plan would affect all state and local government employees, including school districts and the state’s 15 public universities. SJR C would require a two-thirds vote in both legislative chambers and approval on a statewide ballot by the people as the Constitution provides autonomy to the public universities.

The reform would go into effect January 1^st of 2012, impacting a portion of the FY 2012 budget. There is some discussion of moving the date to 2013, as well as discussion about moving to a required 25-percent employee contribution. The chairman noted that there are many steps remaining in the legislative process allowing for further debate by all legislators.

Estimates point to a potential $600 million plus savings from the plan, not including the savings from municipalities which are not yet available. The measures now move to the Senate floor for action, expected as early as later this month.

posted by PAA Online , Friday, April 15, 2011 10:47 AM
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