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Senate Committee Approves Teacher's Health Pool
February 02, 2007
Author: CFM Staff
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In a party-line vote, the Senate Committee on Education approved legislation this week to lump school employees into a single pool for health insurance benefits.
Governor Kulongoski, Democrats and teacher unions say the measure will save millions of dollars per year, though school boards, administrators and many Republicans disagree.
The legislative debate on Senate Bill 426, which now heads to the Senate floor, featured contrasting studies, mirroring arguments made in 2005, when the proposal passed the Senate but died in the GOP-controlled House. This time, with Democrats in control of both chambers, the bill could become law.
Supporters cited a 2005 Michigan study that claims Oregon schools could save $54 million per year under SB 426.
But school administrators say they already get the benefits of pooling workers via a plan offered by the Oregon School Boards Association. Craig Roessler, the Silver Falls school superintendent who sits on that plan's board, said SB 426 would cost his district nearly $1 million per year more, or the price of paying 12 to 13 teachers.
Supporters of SB 426 point out the school boards association has a self-interest because it derives revenue from operating the plan that pays for many of its activities, including assisting school districts in labor negotiations.
OSBA leaders counter that their plan operates more cheaply than a similar pool for state workers. They also contend large school districts, such as Beaverton, will be forced to subsidize health insurance in smaller districts. Beaverton currently negotiates its own health insurance coverage outside the OSBA pool.
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