Counties complain about state’s order to pay for retired workers’ insurance

Tuesday, Sept. 21, 2004 | 11:05 a.m.

CARSON CITY -- An organization of counties is complaining that their members have had to shell out nearly $1 million to comply with the order from the Legislature that they help retired employees pay for health insurance.

The 2003 Legislature passed a bill requiring counties, cities and school districts to help subsidize the premiums assessed to retired employees from governments that are enrolled in the state's health insurance plan.

Humboldt County Commissioner John Milton III, president of the Nevada Association of Counties, said Monday that local governments are not necessarily opposed to the requirements of the bill, but he said it is an unfunded mandate on local governments.

The county association and other local governments believe the Legislature shouldn't have mandated the subsidy without allocating the funds to pay for them, Milton said, noting the insurance subsidy will cost his county $20,000 this fiscal year.

Assemblywoman Ellen Koivisto, D-Las Vegas, who sponsored Assembly Bill 286 that required the subsidy, said she was not surprised at the counties' complaints. She said the local governments should have been planning for this expenditure.

There was testimony that one couple retired from local government had a health insurance premium of $17,000 a year, Koivisto said.

"They (the local governments) have a responsibility to help their employees when they retire," she said.

Koivisto said the state pays a subsidy to help its workers pay their health insurance when they retire. So the local governments should pony up, she said.

The county association said the counties estimate they will pay $963,822 this fiscal year, which ends June 30, to help pay the premiums of 339 employees. Clark County estimates it will shell out $301,452 in a subsidy to 100 retired employees.

The average subsidy statewide is $2,800 per employee per year.

The association said Nevada's cities will spend $1.3 million this fiscal year to finance the subsidies for health insurance for their retired workers.

Nye County Commissioner Joni Eastley, president-elect of the association, said, "When unfunded mandates encroach on county budgets, we are forced to make cuts elsewhere."

The association said there is an advisory question on the November ballot in 16 of the 17 counties asking voters whether a constitutional amendment is necessary to stop this practice. The Douglas County Commission passed a resolution in support of the issue but did not place it on the ballot.