Gov. Mike Beebe will call a special session to begin on Thursday (Oct. 17) at 3 p.m. to address a shortfall in the state public employees health insurance program.
State lawmakers are expected to tackle short-term and long-term solutions to shore up a $53 million deficit in the insurance fund.
“I would not be issuing this call if we hadn’t already seen extraordinary bipartisan efforts to help our teachers and other public-school employees in Arkansas,” Beebe said. “After dozens of meetings with legislators, district officials, teachers and other involved parties, we have a solution that may not please every individual group, but will help alleviate the spike in insurance rates and shore up this insurance program.”
Those solutions include:
- A $43 million injection of funding from the state’s surplus plus a 10% insurance premium increase for teachers and public school employees in the short-term.
- Long-term solutions include restructuring the insurance oversight board, raising plan deductibles, and steering more people into bronze-level plans, which cost less.
- Redirecting future savings from the Educational Facilities Partnership Fund to provide long-term relief to the plan.
- Modifying the requirements for Teacher Professional Development to provide long-term relief to the plan.
- Establishing a task force to study and revise the Public School Employees Plan for future sustainability.
- Clarifying the distribution of State revenue generated by the Uniform Rate of Tax, as advised by the Arkansas Supreme Court, and directing some of that revenue to the Educational Facilities Partnership Fund.
Beebe told reporters Wednesday (Oct. 16) that the Senate now has joined the House with the advance support needed to pass an appropriation providing additional funding to the teacher insurance plan.
The additional estimated $43 million in funding for 2014 will help prevent 48% premium increases for public school employees.
A supermajority of 27 State Senators and 75 House members are needed to approve appropriations bills to right the funding for the public school employees fund.
According to Beebe, 29 Senators support the proposals developed to address the insurance crisis and 77 House members are also in support.
Talk Business Staff
Latest posts by Talk Business Staff (see all)
- David Cheesewright To Succeed Doug McMillon With Wal-Mart International - December 10, 2013
- Bank Of The Ozarks Acquiring Texas Bank - December 9, 2013
- Ben E. Keith To Add $60 Million Expansion, 80 Jobs In North Little Rock - December 9, 2013