Today, Governor Jay Inslee signed the historic McCleary school funding bill. Amidst the details of state property tax, increased salary allocations, changes to levy collections, the solution also includes a new insurance system for K-12, the School Employees Benefits Board (SEBB).
Under SEBB, basic education employees who work over 630 hours per school year will receive full state insurance funding. For the thousands of classified school employees drowning in health insurance premiums, SEBB will provide much-needed and long overdue relief. All insurance plans, employee and employer insurance payments will be decided by the SEBB beginning in 2020. Additionally, K-12 insurance funding will equal that of state employees.
“Health insurance is a critical issue for classified school employees,” said PSE President Charlotte Shindler. “With premiums rising dramatically year after year, many of our members spend most of–if not all–their entire paycheck on insurance coverage. For the thousands of classified school employees struggling with health insurance premiums, SEBB will provide affordability, stability, and long overdue relief.”
This victory for our state’s 60,000+ education support professionals wouldn’t have been possible without the advocacy and lobbying efforts of PSE members. Your calls to the legislative hotline, letters sharing your personal health insurance stories, and conversations with your elected representatives were vital to this success. Thank you for stepping up and having your voices heard!
For more information on SEBB and other details of the McCleary solution, click here.
It’s time for affordable health insurance. Call 360-902-4111 and tell Gov. Inslee to sign HB 2242 & School Employees Benefits Board (SEBB) into law.
The legislature’s plan to fully fund education (House Bill 2242) includes a new insurance system for K-12, the School Employees Benefits Board (SEBB). Under SEBB, basic education employees who work over 630 hours per school year will receive full state insurance funding. For the thousands of classified school employees drowning in health insurance premiums, SEBB will provide much-needed and long overdue relief.
Governor Inslee has until Wednesday to sign HB 2242, which includes SEBB, into law.
When signed into law, all insurance plans, employee and employer insurance payments will be decided by the SEBB beginning in 2020. Additionally, K-12 insurance funding will equal that of state employees.
For more information on SEBB, click here.
Governor Inslee now gets his chance to approve the hard fought McCleary solution after the House and Senate easily approved HB 2242. House vote: 67=26. Senate vote: 32-17.
In quick order the House and Senate have both approved the 2017-19 operating budget. House vote: 70-23. Senate vote: 39-10. Governor Inslee is expected to sign the bill long before the deadline of midnight tonight.
Throughout this legislative session, and for the last 5 years, Senator Hobbs has championed classified employee insurance benefits. Most recently, and during the special sessions, he has asked budget and McCleary solution negotiators to take care of one problem: affordable, quality health insurance for all classified employees. With the introduction of SEBB (school employee benefit board) in the McCleary solution bill (HB 2242), his patience and determination to help classified employees was finally rewarded.
What you don’t realize is that he has withstood withering attacks that would have scared any normal politician away from the issue.
Congratulations Senator Hobbs and thank you for standing strong for classified school employees!
Just a couple minutes ago, legislative leaders released the budget. At that site you can click on different displays of the budget documents. Plenty of good news!
If I find more details in the 617 page budget, I will update in a future blog.
Legislative leaders have just released their McCleary school funding solution. Amidst the many details of state property tax, increased salary allocations, changes to levy collections, the solution includes full implementation of a new insurance system for K 12; a system very similar to the insurance system provided state employees. A new board, the SEBB (school employees benefit board) will be appointed by the Governor by September 1, 2017. Starting January 1, 2020, all insurance plans, employee and employer insurance payments will be decided by the SEBB. As big as that is, the bigger issue is that basic education employees who work 630 hours or more per school year will receive full state funding for insurance. This has been a crusade by PSE (and me) for the 21 years I have been lobbying for PSE. To say I am humbled and proud is an understatement!!
An additional sweetener to this insurance issue solution is that K 12 insurance funding will be the same as provided to state employees. Though I don’t have the final numbers (since they haven’t yet been published), I have been told that the full cost of implementing the half time or more for classified employees and applying the state employee funding amount to K 12 is $460 million. For classified employees who have been drowning in insurance premium costs or dropping out because they couldn’t afford to cover themselves (9,000 classified employees) or their dependents (39,000), there is a finally a glimmer of hope that someone finally listened to them!
There will be significant changes to how insurance will be negotiated (basically, there won’t be much local negotiation). A coalition of employee representatives will negotiate with the Governor what the state will fund for insurance benefits. Then the SEBB will use those funds to determine the insurance plans and premiums that will be paid by the employees and the employer.
Though there is a significant increase to state funding for our salaries, we will be limited how much we can negotiate starting in the 2018-19 school year. State funding will increase 37.4% (split equally over the 2018-19 and 2019-20 school years – 18.7% per year). However, starting in the 2018-19 school year, our salary increase will be limited to the consumer price index (2% is the current estimate) or as much of an increase necessary to raise district average basic education classified employees salaries to $39,975.50. Complicated but it is what it is. I looked but couldn’t find what the 2017-18 funded salary increase will be…maybe that will show up in the budget that is expected soon.
Starting in the 2020-21 school year, state funding for salary increases will be based upon the Washington State IPD (implicit price deflator) rather than the Seattle CPI (consumer price index).
Starting in the 2018-19 school year, the legislature will fund a “regionalization factor” to salaries. This factor will be added to the state allocation and is intended to offset higher cost areas and relieve the pressure on local levies. The factor shall be based upon the median single-family residential value of each school district and proximate school district median single-family residential value.
There will be an increase to the state property tax to pay a significant part of the roughly $7.3 billion (over the next four years) increase in state funding for K 12. Local levies will be changing but I will have to spend more time figuring out what the impact will be.
As you can tell, these are the parts of McCleary which will have the biggest impact. There are other areas I will be focusing on in future blogs.
After informing the public the agreement details would be available at noon on Thursday, legislative leaders say they will be available Thursday night. With no clarification whether that is 5:00 pm or 11:59 pm, it will leave all of us interested in the outcome little time to analyze and determine if it is good, bad, or ugly.
In unusual times you need to be prepared for anything. Today, Governor Inslee and legislative leaders announced that the details, the hundreds of pages of Budget and McCleary solution agreements, will be available to the public one day before legislators must approve them in order to avoid a government shutdown. I hope the website doesn’t crash when everyone tries to get the details at the same time.
It has been announced as an “agreement in principle” but for all intents and purposes, legislative leaders have finally reached an agreement on the 2017-19 operating budget and a solution to K 12 McCleary funding. Details are not available and won’t be until they brief their caucuses. I expect details will leak out as soon as they start meeting with caucuses. Those happy with the agreement are likely to use social media during the meeting to divulge details, those unhappy will do the same in a last minute attempt to upset the deal.