Health & Fitness
ALG spends healthcare savings on budget increases
Acton leaders take union-negotiated healthcare savings and spend them on "investment" budgets rather than pay for future retiree healthcare costs.
At the last Acton Leadership Group (ALG) meeting, the members decided to close a projected FY13 budget deficit, which includes increases in spending and services, by using savings achieved on healthcare through employee union negotiations.
The savings, estimated to grow to about $1.2 million per year, were based on all town and school employees accepting higher co-pays or paying more for their insurance coverage. These savings shift some of the costs to employees and were done as an alternative to a possible Board of Selectmen adoption of the state's Chapter 69 law.
The Selectmen voted to accept the compromise worked out, which still awaits full union ratification. The BOS has given the unions until February 10, 2012 to ratify the agreement.
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However, instead of putting these annual healthcare savings toward future healthcare costs of employees and retirees, the ALG is recommending that they be used in next year's operating budget, which will allow town and school budgets to go up about 5% - 6%. Recent "level service" budgets that have been the norm during the current economic crisis have increased in the 2-3% range....
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