Introduced
by
To allow local governments to borrow money to establish a fund to cover up to 75 percent of the current unfunded liabilities created by past employee contracts that promised government workers lifetime health care coverage without setting aside sufficient money to prefund the liability. A vote of the people would not be required to authorize the new debt, but it would be subject to a referendum if a certain number of voters signed petitions. The proceeds of the borrowed money would be invested in the same way as pension funds. Local governments could borrow for this if their total debt was less than 5 percent of the total assessed value of all real estate in the jurisdiction. They would not have to reduce future health care costs by requiring greater co-pays from employees or going to a defined contribution plan, but would only have to "mitigate the increase in" health care costs.
Referred to the Committee on Retiree Health Care Reforms
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
