PRINTER'S NO. 3149
No. 568 Session of 2008
INTRODUCED BY DePASQUALE, YUDICHAK, CAPPELLI, BELFANTI,
BLACKWELL, BOBACK, CALTAGIRONE, CURRY, DALEY, FREEMAN,
GEORGE, GINGRICH, GOODMAN, HENNESSEY, HERSHEY, HORNAMAN,
KIRKLAND, KORTZ, LONGIETTI, McILVAINE SMITH, MELIO, MYERS,
NAILOR, PALLONE, PASHINSKI, PETRONE, READSHAW, SHIMKUS,
SIPTROTH, STURLA, SWANGER, THOMAS, WANSACZ AND YOUNGBLOOD,
JANUARY 29, 2008
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 29, 2008
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to study
2 and make recommendations for the establishment and
3 administration of a voluntary, opt-in Statewide system for
4 health care and other employment-related benefits, including
5 and excluding pensions for purposes of comparison, for
6 uniformed and nonuniformed employees of local government
7 units.
8 WHEREAS, There has been extensive discussion in many public
9 and private forums of the potential risks and benefits of
10 consolidating certain functions of local government units within
11 this Commonwealth; and
12 WHEREAS, The debt of certain larger government units may
13 preclude their actual merger with surrounding municipalities;
14 and
15 WHEREAS, Many local government units throughout this
16 Commonwealth struggle to meet their obligations to their
17 employees without limiting services to residents; and
18 WHEREAS, The continuing failure of local government units to
1 share provision of services and financing of employee benefits
2 is widely perceived as creating a risk for future tax increases;
3 and
4 WHEREAS, County, city, borough and township officials are
5 searching for ways to reduce taxpayer expenses without cutting
6 employee benefits or residential services; and
7 WHEREAS, In some regions of this Commonwealth, social
8 services and public health services are provided by one central
9 authority for many surrounding municipalities, thus providing
10 one model for consolidation; and
11 WHEREAS, It is unknown whether a group benefits purchasing
12 and financing system would save significant revenue; and
13 WHEREAS, It is unknown what type of group purchasing system
14 for health care and other employee benefits is the most cost
15 effective; and
16 WHEREAS, It is unknown which participation rates or other
17 financial thresholds are the most economically viable; and
18 WHEREAS, It is unknown what sort of Statewide plan would
19 reduce member expenses and standardize costs, benefits and
20 administrative policies; and
21 WHEREAS, It is unknown how many different ways local
22 governmental service and benefits are calculated; and
23 WHEREAS, It is unknown whether a Statewide system which
24 standardizes costs and benefits would reduce benefits or
25 increase contributions for some member employees; and
26 WHEREAS, It is unknown what percentage of employees of local
27 government units are represented through collective bargaining
28 agreements, what terms and conditions exist under those
29 agreements and when those agreements expire; and
30 WHEREAS, It is unknown what range of choices, participation
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1 levels, contribution levels and benefits portability, including
2 transfer of assets and transfer of benefits, would encourage
3 maximum enrollment in a Statewide system; and
4 WHEREAS, It is unknown whether a Statewide system should be
5 administered through an existing State agency or through a newly
6 created administrative body and, if so, how the administrative
7 body should be constituted; therefore be it
8 RESOLVED, That the House of Representatives direct the
9 Legislative Budget and Finance Committee to commence a study to
10 investigate existing benefits models within and without this
11 Commonwealth upon which legislation might be drafted to create a
12 voluntary, opt-in Statewide system for group purchasing of
13 health care and other employee benefits for uniformed and
14 nonuniformed employees of local government units; and be it
15 further
16 RESOLVED, That the House of Representatives direct the
17 Legislative Budget and Finance Committee to make recommendations
18 on ways to establish such a group benefits purchasing and
19 financing system, including, but not limited to, any necessary
20 legislation; and be it further
21 RESOLVED, That the Legislative Budget and Finance Committee
22 submit a report of its findings and recommendations to the House
23 of Representatives within one year of the adoption of this
24 resolution.
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