Unions formally rebuff Governor's request for health benefit changes

Illustrating once again the need for the Legislature to have the authority to make budget decisions concerning state employee compensation, state employee unions have rejected the Governor's request to make changes to the portion taxpayers pay for their health care.

On Wednesday the Governor's budget director Marty Brown sent a letter to state unions informing them that the Governor was re-opening the 2011-13 health care benefits agreement "in order to negotiate a reduction in the employer premium contribution."

Here is a copy of the OFM letter.

According to the Washington Federation of State Employees:

The Federation-led State Employee Health Care Coalition late yesterday (Oct. 27) told the governor’s office they are not interested in the invitation to re-open negotiations on your health insurance contract article.

In the response, the coalition said state employees and the people they serve have given enough in pay cuts, higher health costs and program cuts.

“Enough is enough,” the coalition said in its letter to state Budget Director Marty Brown. “It is time for other organizations who benefit from the state budget to embrace a fair share of concessions as well. All organizations should share equally in this sacrifice.

“We, therefore, respectfully decline your offer to re-open our 2011-2013 Health Care Agreement.”

The Federation has gone on record saying the governor should convene a meeting of corporations and ask them to take a 3 percent cut in their corporate tax breaks – because state employees have taken a 3 percent pay cut while billions in taxes go unpaid through corporate tax breaks.

Here is a copy of the union letter.

Last year the Governor and unions agreed to change the health-care ratio for state employees from an 88-12 split to 85-15. This was far below the 74-26 split the Governor had previously said was necessary.

Moving from the current 85-15 split to 75-25 would save $28 million (one year).

According to the Governor's budget recommendations, she is asking for the portion of the monthly per-employee contribution for state employee health care provided by taxpayers be reduced from $850 to $825 for savings of $16 million.

The unions' refusal to cooperate with the Governor's request is not surprising. Unions exist to fight for their members, not to advocate for policy that is in the best interest of taxpayers. This is why it is incumbent on the Legislature to have the authority to weigh all spending requests equally in the context of the priorities of all taxpayers and citizens and not be cut out of budget decisions totaling millions of dollars.