The Haines Borough will budget an additional $86,217 for employee health insurance costs in the upcoming fiscal year, an 18 percent increase from last year. The local government will pay $554,676 to care for its workers next year.
Following action at last week’s assembly meeting, the borough will pay $1,102 per employee per month, and workers will pay $252 monthly.
The borough received official notice May 24 from the Local 71 Trust, which provides health insurance for Haines Borough employees, that the premiums for health insurance are going up $200 per employee per month, said Jila Stuart, borough chief fiscal officer.
Borough manager Mark Earnest initially budgeted $518,696 for health insurance, an 11 percent increase from the $468,459 for the current fiscal year.
The figure changed to $554,676 at the May 24 Haines Borough Assembly meeting, when members voted 4-1 to pick up 60 percent of the increased costs to employees.
The borough’s agreement with its workers’ union says that any increase will be split 50-50 between the borough and its employees.
Member Scott Rossman voted against the motion for a 60-40 split, saying the assembly should stick with a 50-50 split, which would save the borough $10,000 annually.
“That’s all we’re obligated to pay, and as somebody with nothing, I think somebody paying 50 percent of my health insurance would be wonderful, because there’s people out there footing this bill who don’t have anything, like me,” he said.
Assemblyman Steve Vick first proposed covering 75 percent of the increase for employees, but Daymond Hoffman and Jerry Lapp suggested the 60-40 arrangement that eventually was approved.
“As somebody who doesn’t have insurance myself, that’s a lot of money,” Hoffman said. “However, as someone who has employees, I see the benefit of taking care of your employees.”
Earnest said the borough has shopped around for insurance, but Local 71 Trust still seems to be the most competitive.
“Everybody’s costs are going up in business and in the private sector, but it’s also affecting, disproportionately, those folks that are on the lower end of the pay scale,” he said.
Haines Borough School District employees pay $24 per month for health insurance through the National Education Association-Alaska; the district pays $1,300 per employee, per month. Under the current contract, the district’s contribution is capped.
Superintendent Michael Byer said costs are expected to rise 12 percent following contract negotiations later this year.
Borough employees can’t opt out of the insurance coverage, even if they are eligible for a family member’s plan, Stuart said.
The assembly May 24 advanced an amended version of the overall budget ordinance to a third public hearing, scheduled for Tuesday, June 14.
One of the amendments was $104,696 for 13 local nonprofits. A work group of Mayor Jan Hill, Earnest, and assembly members Lapp and Hoffman trimmed $10,000 from the initial requests.
Groups slated for full funding include the Chilkat Valley Community Foundation ($5,000), Chilkat Valley Preschool ($19,000), Haines Dolphins swim team ($5,000), Haines Friends of Recycling ($7,621), Haines Sportsmen’s Association ($2,000), KHNS ($2,975), Lynn Canal Counseling Services ($30,000) and Southeast Senior Services ($6,600).
Big Brothers
Big Sisters requested $10,000 and is set to receive $4,000. The Chilkat Snowburners ($2,000) and Haines Chamber of Commerce ($3,500) each would receive $500 less than requested.
Southeast Alaska Independent Living ($3,000) and the Southeast Alaska State Fair ($14,000) had their requests cut $2,000 and $1,000, respectively.
Takshanuk Watershed Council asked for $63,366 from a different pool of federal forest funds limited to select uses, and the work group recommended an allocation of $50,000.