The State Worker

Chronicling civil-service life for California state workers

We've had some time to think over Wednesday's budget news ("Schwarzenegger urges health care shift for state workers") and we have some questions.

How exactly would the state ( specifically DPA, according to two sources familiar with the plan) save money by taking over state employee health care insurance?

Do the estimated savings include the administrative costs of shifting information from CalPERS to a state agency?

What impact would splitting off 567,000 state workers and their families have on future health care costs for cities, counties and other public agencies that would continue to get their insurance through the fund?

Would state retirees' health insurance leave CalPERS, too? (If so, that would bring the total headcount switched from CalPERS to nearly 800,000 and leave CalPERS with about 500,000.)

The governor has representation on CalPERS' board, specifically DPA Dirctor Dave Gilb. Has Gilb voiced concern about CalPERS' health insurance costs? How did he vote on the last premium increase? Did he voice any concern that CalPERS should have done better?

Why do this at all, especially when other parts of the budget extoll the virtues of consolidation and streamlining to save money? Is there another agenda behind the governor's proposal?

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About The State Worker

Jon Ortiz The Author

Jon Ortiz started The State Worker blog and column in 2008 as a member of The Bee's business staff, where he covered workplace and labor issues. He moved to the Capitol Bureau in January 2009 to cover state employment issues full time. Join him for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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