FOR IMMEDIATE RELEASE
CONTACT:
Chuck McDonald, 512-708-8655
McDonald Public Relations, Inc.
Gary Anderson, 512-476-2691
Texas Public Employees Association
AUSTIN, Texas (April 17, 2003) – The 2004-05 spending plan approved by the Texas House Wednesday cuts state employee health benefits too deeply and is a disservice to workers who have repeatedly sacrificed salary increases in order to balance the budget, Gary Anderson, executive director of the Texas Public Employees Association said today.
“Our members are disappointed that the Texas House has cut nearly five hundred million dollars in health insurance benefits without also approving an offset to help state employees compensate for the increased out-of pocket expenses employees will have to pay for themselves and their families to afford the more expensive care,” said Anderson.
“TPEA is mindful that this budget crisis put legislators in a difficult position,” Anderson added. “And we have been working diligently with both houses of the Legislature to identify solutions. . . but a half billion dollars in cuts to state employee benefits is simply too deep to absorb without any compensation offset.”
“During the last decade a troubling trend has developed. The State told its workers that instead of pay raises, they would receive improved health care benefits,” Anderson said. “Now the Texas House has hit public employees with both barrels, severely cutting their health benefits while at the same time failing to raise salaries to replace those lost benefits.”
“These cuts hit state employees disproportionately hard because they do not have the financial ability to cover the increased out-of pocket expenses due to the infrequency of salary adjustments over the last ten years,” Anderson added.
As the budget continues throughout the legislative process, Anderson urged Senate budget writers to recognize the contribution of state employees by approving compensating offsets for any reduction in benefits.
Realizing the state is facing tough budget times, TPEA previously documented almost $700 million in savings that could be achieved in state-funded health insurance programs. But the association had also urged elected officials to offset those cuts in benefits with a compensation adjustment.
“All cuts are unfortunate and a lot of sectors are making sacrifices. State employees are willing to shoulder our share of the burden, but we’re not willing to stand by and allow benefits we have earned be taken away from us without being fairly compensated,” Anderson said.
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