Education Committee- House

On the table today so uh will do it here they're. Choose your chair fully and. Jeff you coaching from that is. A resident means you're recognized to present the H. B. one zero nine seven thank you Mr chair members presets come in this afternoon you might recall yesterday representive Wardlaw made the comment in the US he was president resolution that you we spent months on this getting C. B. T. rights this is kind of the Big Apple it's a big piece of this that makes all this flow together Mr believes here for maybe D. so I know that he can validate that this this is a really big piece of starting to fix this this issue that we have here in the state. Very simple what we're doing with this is we are taking the contribution amount that school districts in making for the plans for the for the employees that are participating in the plan. Previous rate was somewhere in the average of a hundred sixty one dollars for some schools paid pale bit more based on their ATM moving that up to three hundred this will not cost the district's anything additional of the department is going to back fill that three hundred back to the district's each year you may have had some questions from districts about how this is going to work with their cash flow school districts as many of you know we're always paid a year behind because are paid on October first based on third quarter eighty am from the previous year so they will never be out laying more than what they're being reimbursed back right now they pay in the one sixty one they get that back on the ATM it works the same way October first that'll be back field and then when they get the enrollment and for the new year then they will be paying that back on the three hundred so it all balances out actually puts a better benefit plan in front of the participants it doesn't cost any more their deductibles have not changed and it actually puts of some benefits back in that they didn't have before so with that I'd be happy to take any questions. Representative got free. Thank you Mr I'm just really excited I get to sit at the big kids stable so I'm just gonna have when. Representative eleven we talked a little bit earlier but just in looking at the bill can you tell me a little bit about the work of this committee it looks like it's going from a set amount of the one fifty one whatever that was in statute to now that funding is a part of the adequacy process will that be a part of our adequacy study this year or is that increase up to the three hundred just that's kind of the we're getting the ball rolling and then after this January first increase in twenty twenty three then Education Committee will do the work of that is correct okay need to move the three hundred to get us back in the balance of what our actual cost is three be the after that as of states in the bill it will be the responsibility of of houses Senator jointed as we do adequacy studies to make sure that we're effectively funding that and that will be through studies and analysis that will that will come to us prior to the adequacy study said this increase will take care of it for getting us to January and then said this committee will not have that as part of our adequacy work they'll just be moving forward the next next Education Committee Wardlaw you're recognized thank you Mr representative Wardlaw district not used to not being from my committee the the amount is actually not three hundred at the beginning Mister Rogers I'm just talking about and that's been confusion when you read the bill so you see it is only like a forty seven dollar increase in foundation funding with that don't get you to three hundred get you to an amount of two twenty nine so that first initial hit of two twenty nine get you there six months because you got to think about it the inferences on a calendar year January to December the budgets are on a fiscal year of June to July so you have to take care of that for six months and then you go into the next fiscal year and that's where you hit that three hundred mark so you you're absolutely right the it doesn't look right when you look at it and yes we would want you guys to look at. At at going forward adequacy but this year that amount is feasible for the plan year toward twenty that's exactly what Mr thank you bye thank you. The three hundred was the end goal so I. To to twenty nine is not actually in the bill but that's the move has may get up to based upon the difference in the calendar year the fiscal year representative brown recognized. Thank you Mr chair Representative eleven just to help me understand the SP said that we're going from one sixty four to three hundred. And so that's like one thirty five that's a difference of a hundred thirty five dollars basically. And that's just a one time deal. Or or or I mean it's it's like we're back feeling something for the current year and then going forward is going to be handled through adequacy. So what representative Wardlaw just status so for the for the first six months it will go to two nine and then that that way they'll be balanced out on the fiscal year and the insurance plans work on the calendar year then going forward it will be at three hundred and some changes three three oh one something that neighborhood and then we will study that annually through adequacy to make sure that we're finding that through the matrix at the adequate amount based upon the triggers and the mechanisms that are in some of the other bills the the plan sells one follow up so to add to that when you look at the medical CPI index compared to your normal of inflation rates what we've seen in the past as education adequacy is only between one point eight and two point two percent increase the radicals a committee that's been the basis since I've been here the last twelve years when you look at the health insurance increases at about eight to ten percent so the cost of health care doesn't align with the inflation rates so the way this bill set this out is it set out to see you can handle the cost of insurance separate from the other adequacy items and what you can apply that greater percentage to only the health insurance and not the whole education package so that's the difference and that's what's coming adequacy committee so you guys can see and you'll get a report on what that inflation rate is in your bill to apply that in the same year but in a different different right now it's not across the board education it's only for the insurance. Thank you and I'll save the rest of my questions till afterwards. Resident makes. Thank you Mr so my question is just about how you envision this moving forward we get to three hundred Education Committee begins to study this because obviously our focus is more education and not so much the insurance aspect so do you foresee us getting recommendations from the was that the public school subcommittee that we're gonna be setting up to. Guide us or to make recommendations on this going for how do you how do you see that will get us those recommendations will come through that study three B. D. to this come to the joint Education Committee and then we'll make the final decision at that point that is correct okay and then once we make that final decision I guess this'll be my final question on the public side the my understanding it would all go through A. L. C. to get the final approval on those raises and then on this public school site is going to go through the Education Committee to determine that or my confusing those two. So I you does that make sense any raises into the program the the increases throughout a because he will come through the Education Committee but the final approval for the increase to the actual rates to the ratepayers of premium payers will go through AOC okay follow the governing board set up okay we'll do the increase on the funding side for budgeting process in the actually increases to the to the premiums will go through AOC okay all right thank you. Just for your information we always take a recommendation on what we do every time on there and adequacy for what that rate would be so be the same process just a little bit different way they're going to get it this time so represent Lowery. Thank you Mr chairman I understand with this process and and represent Wardlaw you said something in presenting the resolution that it'd been looked at and discard it is an idea that to put this in the categorical funding rather than the matrix in my understanding always has been if you want to make sure something is spent on the item that you're funding you put it in categorical how would this impact of say you've got a new line item in the matrix for insurance and you know that that's got to be eight percent or whatever the number is what other than I guess the enforcement power VB D. keeps a school district or makes a school district actually return back DVD that amount that was funded in the line item. That's good question you may want to ring me for second. Greg if you would grant your presence at the table we would be so blessed. The state your name for the record please enter your with. I'm let the Department answer that the same way they answer that for me back in October okay. Greg I just want education so the way that it right now currently in law and eleven seventeen it says what the minimum is what this law will be this bill will be increasing that by us so for every participant that participates in the program school district will be required by law to pay three hundred dollars the reason that the categorical situation wasn't ideal situation is because under once this state start requiring the the department of the school district to pay something that and limits the ability from these other funds such as federal funds for it so if you have a title one position that is currently being paid for title one funds but the states requiring a minimum contribution for insurance they would be able to use those federal funds for that anymore so the state would then have to pay for every three hundred dollars for every participant in the insurance. Follows. I guess this is where I'm kinda Leding with this I mean I don't know what is important issue this is for us to address but you know I've been on Education Committee now for five terms we consistently hear this mantra that the matrix is a funding formula not a spending formula so what is so magical that we're gonna be able to mandate a line item actually be spent on it but we can't do it on the other line items. But there's currently in law right now the the and six seventeen eleven seventeen that says that minimum contributions now districts can and do and some sentences play over that three hundred by using their funds but this the law that currently exist on the books sets that minimum at the three hundred so that's not mandating it for everybody and it's it's not mandated for everybody but that's the starting line for their insurance okay so the truth is if there was a strong enough Hammer of an issue something else whether it's technology or ministration we could do the similar thing pass legislation center school district's going to have to spend whatever we've if we've said we need a three percent increase in this line item they have to spend it that way we could do that I mean this is really showing us that we actually can mandate in law that whatever we send a school district on a line item can't has to be spent at that level correct I mean they're radically admitted P. situation and not just to say blanket yes I I wouldn't be able to say that it would depend on what what you're talking about and what the funding is when what purpose that is going for okay correct thank you. Of and. Kensi person with you Mister chair and a couple of my questions of or even coverages have to right now one just a simple one as far as I'm hearing a lot of questions we all are from districts and other folks. Will there be I know you said are there going to be winners and losers in this art everybody be made whole. So. Pretty much everyone is going to be made whole what that school districts that I've talked to about where they're doing their calculations and is what represent Wardlaw addressed earlier they were the three hundred over twelve month period and they were trying to calculate how much they're going to get and it looked like they were kind of short but as you stated earlier that you have to consider the county year over the fiscal year so if you take the six months what they're currently getting funded at in this six months after January first what it will go up to three hundred they're pretty much they're being all there's I would appreciate and everyone in it's really close to how much all of our coming out I didn't see anyone that was losing money on this one okay my second question that's all right and pretty much makes me a little nervous but my question is do you for C. are you going to whom you planning on running this on the floor. If it passes the house more on the committee and the reason why I'm asking that is because this is a big change folks have questions may be great probably is but. I would like to have folks my request is have time to branch out over the weekend they've heard this discussion the questions have chance to look back and okay is are we are we confident in on the pretty much in these figures that we feel like all our concerns are being addressed because as you know this this meeting was called you know this morning. So give people time to I don't think a slow is down on this if we gave the weekend to review it. I just go to that's probably not gonna happen no and and I think that to to to some degree and represent cancer project question and and just the fact of being thorough and making sure the but I mean these these discussions have gone on for months and every group has been at the table the super ten sociais as part of education the teachers association everybody has had the opportunity for months and with the exception of one group everybody's been at the table and provided their input into this and they've all softphone and said this this is going to work there's only one group that has not participated in any of those meetings and everyone just kind of start ups the concern but I think we've really of the last two three days because the the information came out over the weekend I mean we've we've addressed all those issues well with regard to that one group. I mean when not spare day for that one group and also for the spare group that probably. Not affected by this legislation at all is a retired group so we don't have a group with a spare we have a spare when you look at the day's and you live in when you laid out how the thing flows you're gonna is gonna take all this week and all next week and two days into the next week to pass all the bills through the process if you hold a day up you're going to add a day to the session at the end and I'm not going to be responsible to do that and I'm watching a lot of heads down the table not no so I'm not going to advocate this bill of any and all this bill's been vetted very well it's came to council in November it was brought up then after the change from categorical is brought up again in December council they released before Christmas to the total public the house in public they released again in January after some minor edits and they were released again the week before sessions of these bills have been out there they've been public with that it harder there's no reason delay another day on these bills well my question different some superintendent so they would be impacted. I think we've heard from but I don't think there's any problems with that is there's no one signed up here to speak against if they were against that they would be here in fairness they didn't know until this morning now. They do. Well I mean I didn't know it but I mean they have representation setting right here in capital so so that would Dr Anand is yesterday and there was about there is a series of questions on every bill that he had in his or pad and we addressed all those questions yesterday and he said that he was fine with it with everything from that point so that's the superted Association leader. Russia break you're recognized. Thank you Mr you said there would be any changes in benefits but I thought I heard you said be something added back. So this group no change in benefits the retired teachers lost their pharmacy covered into twenty oh seven thank you represent Bragg because we need to get this out as much as possible in two thousand seven the retired teacher associate to retired teachers group lost their pharmacy benefits similar to what happened two years ago which is what triggered this whole look in they were going to take that away from retired state employees we threw they're going through the savings through pharmacy and moving the retired folks to a Imedi plan Medicare advantage plan we were able to reinstall those benefits of pharmacy back to the retired teachers not through that email you got last week they said we were taken away but you can't take away something they didn't have so that is something that is being added back is their pharmacy benefits to retired teachers okay thank you. Ferguson back. Thank you Mr. But my question is related little bit to represent Lowndes question so so you said there's a. Corrected the mechanism that's going to wire the test three hundred dollars be actually spent on the the benefit you said that I think you said that there was as an actor OR some sense of this at a minimum of three dollars had to be spent on that second. That's what's in this bill that right now the right now the the code eleven Centene says that it goes back from when we had the special sessions over years gone insurance is that it a hundred fifty dollars and it's been increased each year by whatever the adequacy of the foundation funding amount increased so currently is the law is it says a hundred sixty eight dollars twenty dollars so that what is in this bill would be changed at eleven seventeen instead of St Senator hundred fifty dollars and only increasing ballot the foundation funding amount it would change it to saying three hundred dollars an increase in upon the recommendations of the Joint adequacy committees so it would sit at three hundred and until you our brought stuff from DVD or from outside groups to see how much the insurance benefits may need to increase by and then I would do that through your adequacy recommendations that would change that law to increase to that so we keep the minimum going that okay so that that was my concern so just make sure I'm gonna close you're saying that if if inadequacy we increases fund it will automatically increase by taking a three hundred right now that whatever increase we put into what I would like to be increased to that three hundred and that would automatic it would therefore by the school district to make sure that they took that money and paid benefits with correct thank you. Mr I would add to that same discussion that is exactly what we were so there is a resolution yesterday bill coming from the Senate that we remove the cap on the state employee's side of the same exact reason so that percentage could to them without a statute change so that would come through council going forward through a recommendation for me B. D. so that we rely on these two programs they've never been aligned with the funding was was raised or could be changed together everyone was always a statute one stuck in actually now they're aligned and they can be changed throughout IT and their counsel on the other side and they can both follow a medical CPI index going forward. So the funds will be not only budgeted but funded soundly. Rison got for. Thank you Mr chair just a follow up on represent the kids is concerned this is the house bill right so even if we pass it out of here today passed off the floor tomorrow it's still gonna go through the Senate so if there are folks who are concerned who want to come in and share their concern to ask more questions we do have the additional chamber that incidents are correct thank you. Robson makes. This quick follow up to represent Wardlaw the assuming all this stuff gets done when with the retirees either prescriptions reinstated all all of all of these changes take affect for plan year of twenty twenty three so the next plane you're SLC open I have everything in effect so they can make educated decisions during the open enrollment is that correct I see you Mr bleaching sets that is correct all right thank you. Any other questions. Representative your name all Deffenbaugh. Post coach for well this is just for clarification I'm not I don't have a problem with it. Hi so if the insurance is raised to two twenty nine a year he said that's a half a year I mean what I'm trying to just understand is if there's three hundred eleven three hundred we're shooting for words to twenty nine come in is I mean I understand goes the first year right that is that a half for half a year you don't again that. That is the calculation that will be in the matrix and it'll probably make more sense when you all have adequate seven you see the matrix there but that is the two twenty I will be in the matrix line item that what we're subject to now be a separate line item and that is for at a hundred sixty eight or hundred sixty five it's six months and in three hundred dollars in six months after January when the actual of the three hundred dollars after January when the rate would actually go up okay. So if you start the year at one sixty eight you had six months of that physical year from January to June to fill in the gaps that to twenty nine plus the one sixty eight when you average that you get to the three hundred for that portion of the year soon as you hit July first a ghost Hendren and that next matrix set for that school year so you had to finish the ones go out and then start the new school year in in the same plan year okay. As long as I taught math they should understand that I guess but. I have a common core and that's that's build out. Deffenbaugh that's that's built out in the fiscal impact which shows that with an increase the funding of sixty four dollars that's what brings it up to the two twenty nine okay the only be for six months until. Yes okay thanks. Any other questions. Seeing none would you like does anybody audience let. For the bill. Against the bill. Seeing none would you like close rebuild you Mr I'm close Preciado questions and I move promotion do pass I have a motion to pass any discussion on the motion. Seeing none all in favor say aye you know. Resolution you'll have passed your bill we are adjourned.