TEACHER HEALTH PLAN DIDN'T DELIVER PROMISED SAVINGS, DISTRICTS SAY
Many
The Chapter 44 plan, signed into law by Gov.
In
Had the savings materialized, they would potentially have benefited other programming and school services, said
The law requires all health plan savings to be used to reduce the property tax burden.
What is Chapter 44?
The law is the result of a deal between former Senate President
The law passed unanimously with a 34-0 vote in the state Senate in
Local school officials agree the plan reduces the contributions teachers make to their health plan, but the costs are passed on to districts and therefore taxpayers. Some district officials have called the law an unfunded state mandate that is causing "significant hardship," as it also adds layers to their negotiations with local employee unions.
State officials and the NJEA don't agree with local districts' assessment of the plan, saying that providing teachers with affordable health benefits is not an "unfunded mandate."
School districts are required to automatically enroll staff hired after
After it was implemented 15 months ago, 2022 is the first year that savings from the new plan will be reflected in local tax levies.
A
Shouldering the cost
In complaints filed with the state
In 2021, a number of school districts, the
Chapter 44 "results in greater costs to individual school districts and should therefore be enjoined as to those districts," the three districts and their supporters wrote to the
Out of 158 districts surveyed by the
Among the districts that said Chapter 44 would increase their costs are the
The
Providing teachers with affordable health benefits is not an "unfunded mandate," the NJEA said in its written response to the
"There's been a lot of numbers that have been thrown around for the last year or so and very little ability to follow through and actually back up the allegations that districts have been making about the costs associated with this, or about the lack of savings,because frankly when we've challenged them on it, and to, kind of, come to the table and show us that, they haven't done so," said NJEA spokesperson
The schools argue that leaving local districts to negotiate contracts with teachers' unions to offset costs from the new plan is as good as not funding the law. Districts and unions don't always agree, they said.
Districts said their hands are tied because they are not authorized to collect money to offset their expenses from any source other than property taxes, according to documents furnished to the
The new health plan
The new plan reduces the employee contribution percentage from a range of 3% to 35% to a range of 1.7% to 7.2%, leaving school districts to absorb this difference, according to legal documents submitted by the districts.
The association said the law has also exposed school boards to lawsuits for violating labor agreements if they do not offer the new health plan to cut costs.
In
In response to the districts' complaints, the
Like
On
"Some districts may be able to demonstrate that the health care savings was unrelated to Chapter 44." the
"I don't think it was anyone's fault. This was a new law," said
The state's overassessment of savings from the law was understandable, and it was addressed smoothly, said Young. "The law as it relates to these tax levy adjustments was written very broadly. I don't think anyone, whether it was school districts or the
The savings that districts have seen in the last two years in health insurance costs, however small, are due to Chapter 44, said Baker, of the NJEA.
Not true, said Young. There are "many, many reasons why the net benefits for a school district may go up or down that have nothing to do with the implementation of the EHP plan."
The law did not take into account the other ways in which the district was saving money for taxpayers, she said.
Email: [email protected]
Twitter: @MaryAnnKoruth
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