THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

INTRODUCED BY MARKOSEK, BRENNAN, CUTLER, FRANKEL, FREEMAN, PRESTON, READSHAW, SIPTROTH, WALKO AND WHITE, JANUARY 26, 2009

REFERRED TO COMMITTEE ON TRANSPORTATION, JANUARY 26, 2009  

A RESOLUTION

Directing the Legislative Budget and Finance Committee to study

the feasibility and cost-effectiveness of placing transit

agency employees under the Commonwealth's jurisdiction for

the purposes of providing health benefits and pension

benefits and to make a report.

WHEREAS, Pennsylvania's public transportation and highway and

bridge systems are in crisis in terms of funding and

deteriorating physical condition; and

WHEREAS, There is increasing concern among citizen taxpayers

of this Commonwealth over the rising cost of postretirement

health care, pensions and other benefits in private and public

sectors; and

WHEREAS, There are 74 transit systems in this Commonwealth,

and the extent of health benefit coverage provided to transit

employees is currently negotiated on a system-by-system basis,

giving the State little or no control over the growth in these

expenditures; and

WHEREAS, State operating assistance currently used to pay for

a portion of health insurance for transit employees, including

transit employees in the Pennsylvania Employee Benefit Trust

Fund, which currently provides health care benefits to

Commonwealth employees, may reduce the annual allocation to

transit agencies or allow current State funding to be used more

efficiently; and

WHEREAS, The Transportation Funding and Reform Commission, in

its 2006 report, recommended a series of opportunities to

optimize transit operations, with the potential to improve

productivity, increase revenues and decrease costs within the

Commonwealth's transit systems; and

WHEREAS, Commission recommendations include exploring

opportunities for transit agencies to join the State employee

health benefit program and the potential to form a Statewide

transit pension system or include transit employees in the State

pension plan; and

WHEREAS, It is critical to assure taxpayers that governmental

agencies are providing services in an efficient and cost-

effective manner, thus optimizing utilization of taxpayer

dollars; therefore be it

RESOLVED, That the House of Representatives direct the

Legislative Budget and Finance Committee to study the

feasibility and potential cost-effectiveness of placing transit

agency employees under the same group health and pension

benefits provided for Commonwealth employees; and be it further

RESOLVED, That for the purposes of this study the committee

examine health benefits, including medical, dental, vision and

prescription drug programs and pension benefits and be charged

with the following:

(1)  Analyzing specific health benefits and retirement

programs currently provided by transit systems throughout

this Commonwealth, the premium costs related thereto and the

pattern of growth in these costs.

(2)  Comparing the cost of transit system health benefits

and retirement benefits with benefits provided for

Commonwealth employees.

(3)  Determining prospective benefits, particularly

potential reductions in costs to the Commonwealth and to

transit systems that might accrue as a result of the addition

of 15,000 transit employees to the estimated 144,000 current

members of the Pennsylvania Employee Benefit Trust Fund.

(4)  Determining prospective benefits, particularly

potential reductions in costs to the Commonwealth and to

transit systems that might accrue as a result of the addition

of 15,000 transit employees to the estimated 217,000 current

members of the State Employees' Retirement System.

(5)  Reviewing other considerations in a possible merger

of these two groups for health benefit and retirement

purposes, including the impact on collective bargaining and

the possible effect on the Pennsylvania Employee Benefit

Trust Fund, as well as the State Employees' Retirement

System.

(6)  Reviewing the manner in which other states may be

providing health and retirement benefits for their transit

employees in order to better control growth in related costs;

and be it further

RESOLVED, That in compiling this report the committee seek

input from the Department of Transportation, the Pennsylvania

Public Transportation Association, the Southeastern Pennsylvania

Transportation Authority, the Port Authority of Allegheny

County, the Governor's Office of Administration, group insurance

providers and any other groups or individuals who may have

relevant information; and be it further

RESOLVED, That the committee report its findings and

recommendations to the House of Representatives no later than

December 31, 2009.