All Faculty Email Update from Health Benefits Committee Representative Debora Bone
May 5, 2008
Hello Faculty,
In an effort to better understand the impact of budget cuts, I have attended the last two CPC meetings as a "visitor." The agenda has been to review proposed cuts by component, first from the General Fund, then from categorically funded programs. I am sure that every one of you is aware of how the cuts will affect your own department or program. It is harder to get the bigger picture of how the Governor's proposed budget cuts (from January preliminary budget) will play out at Cabrillo. We are waiting for the May Revise to see what the more recent bad financial news will add to the already bad news from before. Then we will be waiting for the legislature to make final compromises and decisions over the summer.
So far, the district has been looking to cut $600,000 from the General Fund next year, and to use another $1 million to "backfill" for one year. While committing to keeping instructors, this does not apply to the "invisible layoffs" of part time faculty who may see sections cut, or to categorically funded positions, such as two Children's Center teachers who face layoff as the Center contemplates downsizing to a smaller budget. The classified staff are also less protected than tenured faculty...
Many classified positions have been frozen (left vacant) and some have been eliminated, while efforts are being made to restructure and re-position workers so people have jobs, even if workload and positions are gone. Budget cuts to categorical programs were announced at CPC Wednesday. Financial Aid will be laying off 1.25 Financial Aid Advisers due to mandated cuts to their categorical funds. These positions are currently filled, so real people will be affected. CCEU will be working with the District to place these workers in other jobs if they so desire. Right now there are only eight 100% jobs which have been frozen that these laid off workers could potentially transfer into. Given that the affected employee would have to meet the minimum qualifications to transfer into one of these eight jobs, the safety net of vacant positions is not very big.
The Financial Aid positions affect our most vulnerable students, and like the children's center positions, are bilingual/bicultural employees. Something feels wrong when we are trying to serve Latino students better, yet can't find ways to keep these positions in place.
On the other hand, at CPC, a request was made for $267,000 in one-time money to pay for a coordinator to bring more (fee paying) international students on campus. I think that international students have a lot to offer to the college community, but I seriously question the timing of this particular investment. When the college faces serious shortfall in so many areas, is this the right time to be using our precious resources for people from afar and diminishing services to actual, local students? That same money could stabilize the Financial Aid department, or be used to maintain health benefits for existing employees. We need to look carefully at our priorities here...
The issue of Health Benefits is enormous. Currently 685 Cabrillo employees and their families count on the district to provide access to health care. Employees are divided pretty evenly among 3 plans: 199 employees are in the "Health Net High" plan, 200 are in the "Health Net Low" plan, 220 are in the "Blue Shield High" plan. In addition, 31 are in the "Blue Shield Medium" and 25 in the "Blue Shield Low" (= Catastrophic) plan, with 10 retirees in two other specialized retiree plans. The benefits stipend that we receive is tied to the cost of the lowest HMO. People who choose the more expensive plans pay "out of pocket." Adjunct faculty and partial contract faculty and classified also pay large out of pocket amount to supplement the district stipend. When salaries are stagnant, increased benefits costs are particularly difficult to absorb.
Benefits will be going up by 15% for the HMO plans, 5% for the PPO plans, and 9% for the dental plan. The increased cost for the district to maintain these plans (by keeping the stipend for all employees at the rate of the lowest HMO) is estimated at $800,000 next year (note that this is MORE than the $600K cuts CPC is trying to make, and the equivalent of roughly 16 classified positions). The district has done a variety of things over the past few years to streamline our plans and reduce costs. It seems that there isn't much left to shave off of the "lowest cost HMO" and still be able to call it a "comprehensive" health plan. My assumption is that everyone has a very strong interest in maintaining these plans intact. What we don't have is an easy way to pay for the cost of this. Nevertheless, as your CCFT rep on the Benefits committee, I have indicated to the district that I think the faculty would consider this benefit to be a highest priority this year. I also want to acknowledge that only 35 adjunct faculty are on the health plans, so this mostly affects people in full time faculty, classified and management jobs.
If the district wants to make any plan changes, they would have to bargain with CCFT and CCEU. It is a priority for both unions to maintain the quality of our health care plans. In a time of budget shortfall, this impacts all of the other discussions. It is a delicate balance between taking care of existing employees versus facing more budget cuts and lay-offs to juggle expenses.
The healthcare plan decisions do not come directly to CPC. The benefits committee has met and the District has asked SISC to come up with a less expensive "low HMO" plan. From the perspective of your CCFT and CCEU benefits committee members, the existing plans are already expensive enough for us to use (copays, deductibles etc), and we want to make sure that any of our colleagues facing serious health problems will have the coverage they need. We have encouraged the District to keep the existing plans. Nevertheless, once decisions about health plans are made, the consequences of those decisions may have an effect on the other budget cutting decisions being made in CPC.
Please do not hesitate to send me or Paul your thoughts about how CCFT can best represent you during these financially challenging times.
In Solidarity,
Debora Bone