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State Workers Propose Alternative Ways To Cut Costs, Reject Proposed Inequities In Cost Savings Plan
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FOR IMMEDIATE RELEASE
Contact: Gary Anderson
512-476-2691
(AUSTIN) January 13, 2003 – Comptroller Strayhorn’s announcement today of 2004-2005 revenue estimate raises troubling questions about cost-cutting proposals outlined in her office’s e-Texas report last Friday. Placing the burden of trimming back health benefits on only one segment of employees while ignoring the recently added 600,000 public school district employees covered by the state at a cost of $1.25 billion a year simply cannot be realistic.
“We understand that stemming out of control health care costs will require sacrifices, but those sacrifices should be made by all employees receiving state-funded health care benefits, including public school district employees,” said Gary Anderson, executive director of Texas Public Employees Association.
In Friday’s e-Texas report, the comptroller identified ways to save nearly $200 million a biennium in health care costs by shifting some cost back to state employees. The Texas Public Employees Association (TPEA) recognizes that cutbacks on health care benefits may be necessary but believe that sacrifices must be equitable to all employees covered by the state’s taxpayers.
TPEA is working on an alternative plan to reduce health care costs for the state that addresses a wide range of areas where the state provides benefits that are extremely costly.
“One item we have identified is to eliminate state-paid health insurance for appointed board and commission members. These are volunteers who are employed outside of state government,” said Anderson.
Other cost savings items proposed by the group include; eliminating state-paid health insurance for graduate assistants at all state higher education institutions, establishing a waiting period for new state employees and at UT and A&M and reducing the amount of the state’s contribution for less than full time state employees and at UT and A&M.
“Mandatory generic prescriptions alone could save us $5 million a year,” said Anderson.
The group plans present lawmakers with a variety of proposals to cut costs up to $700 million dollars. TPEA’s proposals are going to be equitable and apply across the board to all employee groups receiving benefits at taxpayers’ expense.
“This broad-based approach is what is necessary if we are going to be successful in addressing the sky rocketing health care costs,” said Anderson.
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