Introduced
by
To allow local governments with an AA bond rating or above to borrow money to establish a fund to cover up to 75 percent of the current unfunded actuarial liabilities created by past employee contracts that promised government workers lifetime health care coverage, yet did not set sufficient money aside to cover this 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, in the hope that the investments would grow enough to cover the interest on the debt.. Local governments would not have to “reduce” future health care costs before taking on this new debt (which would require things like greater co-pays from government employees, or going to a defined contribution plan for new employees), but would only have to “mitigate” these costs. (“Mitigate” is not defined.) Local governments would be allowed assume debt for this purpose up to the maximum allowed by state law, which is based on the maximum amount of property taxes they can impose.
Referred to the Committee on Intergovernmental, Urban, and Regional Affairs
Reported without amendment
With the recommendation that the bill be referred to the Committee on Retiree Health Care Reforms.
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.
Referred to the Committee on Oversight and Investigations
