State OKs plans for schools health funds

Cy Ryan and Emily Richmond

Wednesday, Dec. 10, 2003 | 10:45 a.m.

CARSON CITY -- The state Board of Examiners Tuesday approved regulations on how to distribute an additional $5.8 million to Nevada school districts to cover the cost of increase payments for health insurance for workers.

The rules must be approved by the Interim Finance Committee, then the districts can apply to the state Department of Education for the money that is to cover both years of the biennium.

State Budget Director Perry Comeaux told the board the $5.8 million will probably not enough. The money cannot be used to cover the cost of insurance for retired school district employees and teachers, he said. The Legislature ordered local governments and school districts to subsidize the rising cost of their retirees' state health insurance.

Comeaux estimated the school districts will need $3.7 million this fiscal year and $5 million next fiscal year for retirees.

"The only place they can go is to the IFC (Interim Finance Committee)," Comeaux said. The committee has a reserve fund to take care of emergencies.

Assemblywoman Chris Giunchigliani, D-Las Vegas, a member of the Interim Finance Committee, has said making up the cost difference to the school districts should be a top priority.

The Education Department says it will give districts until March to apply for their share of the $5.8 million, which was allocated by the 2003 Legislature.

Doug Thunder, the Education Department's deputy superintendent of finances, said this morning he was "optimistic" the state would step in to cover what amounted to an unfunded mandate for local school districts.

Assembly Bill 286, passed during the last legislative session, requires public agencies to increase contributions for health care expenses of retirees. But the bill passed without a fiscal note attached for the impact on local school districts, an oversight that has resulted in an unfunded mandate, Thunder said.

"We didn't realize what had been passed until it was too late," he said.

The cost to the Clark County School District is expected to top $2 million this year and increase to between $3 million and $4 million next year, Walt Rulffes, deputy superintendent of operations, said.

Complicating matters are changes to the Teachers Health Trust, which provides medical coverage to both active and retired educators in Clark County. The trust announced in August that 550 retired teachers would have to choose one of three new plans because the cost of subsidizing their coverage had become too expensive.

If some of those teachers choose to enroll in the state's health plan, the cost to the district will increase, Rulffes said.