Proposed Budgets Include Cuts in Insurance Benefits, Cuts in Pay, and Increases in Class Size

Next year's budget proposals made their first public appearance for this legislative session in a joint meeting of the House Appropriations and Finance Committee and the Senate Finance Committee at 2:00 yesterday afternoon.  All versions offer unacceptable cuts in education spending for next year.

In brief, the LFC recommended $2.5 billion for public school support, which is about $40 million more than the governor proposed but about 1.5 percent less than the current budget. Schools are cut under the spending plans by the LFC and the Richardson administration. The governor proposed state aid cuts of $30 million by allowing schools to have larger class sizes, $14 million by reducing one school day and $50 million by having schools pay for property and liability insurance costs with earmarked money for school maintenance.  These cuts will increase class size and reduce the instructional time available to children. Most school employees (Teachers and others who work a normal school year) will lose one day of work and one day of pay---a .5% cut in salary! 

Follow these links for an outline of the Governor's proposal  and the LFC proposal for next year.

 

The (LFC) is attempting to force the New Mexico Public School Insurance Authority to reduce benefits in school employee health insurance coverage to a level that avoids any premium increase for school employers, and thus legislative funders.  Here is the LFC's flawed logic:

 

"A review of the New Mexico Public School Insurance Authority (NMPSIA) medical benefit plan suggests the plan is the richest of all public employee and retiree plans and should be adjusted to better align with the other plans. The committee recommendation does not include funding for insurance increases in FY10 but directs NMPSIA to make changes in benefits to align with other public employee plans."

 

The changes would be a drastic benefit reduction. A deductible of $300 per individual or $900 per family would be added in addition to copays for in network health care. Additionally, a 20% additional payment would be required for facility, lab and radiology in network charges in additional to copays already in effect.  The out-of-pocket limit would rise to $4,000 per individual and $12,000 per family.  A visit to the emergency room that cost $100 today could cost you $600 for the visit plus the 20% coinsurance for the lab and radiology work!  Now premium increase seems like a great deal, unless you or family plan to get sick or injured!

The LFC recommends not funding some $17.2 million new premium dollars recommended by NMSPIA.  Most school employees would hardly describe their health insurance plan (most of whom already pay more in premiums that state employees) as "rich."  Nothing much about school employee compensation can be described as rich!

 

Let legislators know that cuts in your insurance benefits is just plain wrong!

 

Follow this link to send a message to legislators about cuts in insurance benefits.

Reduced funding for next year means children cannot get back a year lost to over-crowed classes! As legislative committees begin to craft cuts in the current year budget and propose reduced spending for next year, we need to insist on no cuts to education in the current year and the increased funding we need for next year.
 
Follow this link to send a message about funding cuts for next year