Shortfall cited for retirees

Thursday, Nov. 20, 2003 | 8:37 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Nevada's school districts need another $3.8 million to pay the health insurance premiums of their retired workers, the Legislative Interim Finance Committee was told Tuesday.

Jim Hager, superintendent of the Washoe County School District and president of the Nevada Association of School Superintendents, told the committee Tuesday that unless there is an infusion of money the budgets of the districts will have to be reduced.

The Legislature approved a bill to require local governments and school districts to provide a health insurance subsidy to their retired employees. The state already gives its retirees a subsidy to pay part of the monthly premium.

The Legislature approved a general fund appropriation to school districts of $746.7 million this fiscal year, but school districts say that wasn't enough to cover the additional subsidies on top of all the schools' other costs.

Hager called the bill "an unfunded liability."

Clark County needs $2.1 million to meet the subsidy obligation, he said. And for some rural school districts, the financial impact would be particularly difficult, he said.

The Finance Committee decided to continue examining the matter at its next meeting.