For
The Kids
School Employees Contributions To Health Plans Could Save
Jobs
Visalia - They haven’t handed out pink slips yet. But they’ve given notice to 164 Visalia Unified School District teachers and 85 full-time equivalent teachers at COS much to the sorrow of everyone here. For youth that depend on teachers being there and for classrooms to open their doors in coming months - the potential loss of educational opportunity hasn’t sunk in yet.
While busloads of school district employees and students have lobbied Sacramento hard in recent weeks, there is a sense here that school employees have to help themselves - and their colleagues to keep this boat afloat.
With little less than two months to figure this out, some in the community and even in the teachers union are focusing on the same facts. “If school employees at both VUSD and COS made some sort of contribution to their health plans - nobody would be laid off,” says Visalia Bond Oversite Committee member and former mayor of Visalia, Basil Perch.
“They could pay $50 a month like other places. Fresno teachers pay $47 and City of Visalia charges $40 per month,” he says.
Unlike some jurisdictions like the City of Visalia, school employees at both COS and VUSD make no contribution to their health plans that cover themselves and their families. Meanwhile, the districts’ cost to host those plans, negotiated through tough bargaining, have skyrocketed.
“Our health plan costs have gone up 76% in the past four years," says Kim Badrkhan, COS president. They are expected to go up another 25% this coming year.
At Visalia Unified those costs are expected to rise 18% although the district is waiting for the actual number.
Teachers at VUSD are exploring the options for some sort of contribution, says Fred Speckman, president of the Visalia Unified Teacher Association. This week VUTA held two meeting going over surveys of just what the members are willing to renegotiate, he says.
Speckman says he personally favors a co-pay for medical visits instead of a direct $50 a month contribution to the health plan. People would be motivated to use the plan more with a contribution, he believes, "since we are self insured that would raise costs."
"I prefer a co-pay of say $40 a visit that at least would not encourage more doctor visits," says Speckman - a move that "ends up in the same place - saving jobs."
Teachers at Visalia Unified know that the potential job cuts at the district are all related to the class-size reduction effort in the lower grades - considered key to the success of students learning the basic 3 Rs. Without the expense cuts, those classes would go back to 30 plus students in a classroom and the test scores that reflect that. It also affects class-size reduction in the 4th and 9th grades in some schools.
With the state saying there will be no cost of living increase this coming year "only expenses are on the table," says VUSD chief financial officer Robert Groeber. The cost of the health plan is $18 million district wide, he says.
While it is true that VUSD employees don't make a contribution to their health plan, there is a 90-10 deductible that is in effect. The board will hear options March 25 on the possibility of making that deductible less generous - like 80-20 and the effect of tweeking each component on the district "benefit package to reflect more of an employee contribution," says superintendent Stan Carrizosa. "The community can see how a change in the health plan structure could help save a portion money for class-size reduction.
Less Enthusiasm
At COS there isn't quite the enthusiasm by teachers for some sort of contribution to their health plan. While teachers and administration have been working more in concert at VUSD on this crisis, at COS administration and teachers don't see things the same way.
Dr. Tom Weise heads up the COS Teachers Association says "We think this is a false dilemma just to have us cut our health benefits or agree to pay cuts. We told administration for the past five years they should look at different health insurance providers. It wasn't until recently that they seem to be interested in that."
Still the union is negotiating with the college over a number of things "that can get us through this disaster," says Weise. That includes a potential Golden Handshake for 11 long time faculty that "could save almost $1 million," says Weise.
The union believes that COS has "mismanaged a number of their funds." He says the college has a rainy day fund - "I got news for them - it's raining." Weise wants the administration to look at tapping some reserve accounts to help cut the shortfall.
Weise says the cuts that actually come down are likely to be closer to 5% than the estimated 10% cut anticipated.
Health care costs for COS are expected to go up by $1.1 million this coming year.
There is discussion in both districts of freezing advancement pay - so-called step and column raises.
College president Badrkhan says the school is forced to cut this fiscal year with just a few months to go until the end of June and needing to cut $1.6 million from its budget. Lobbying Sacramento has paid off for the jr. colleges with the size of the hit for next year recently announced from a proposed $289 million to $149 million this coming year. Still, COS believes it needs to cut $8 million in the next 18 months.
"I am optimistic we will save jobs. We'll know for sure by May 15. Those notices that went out March 15 were not pink slips, but just notifications." Tearful pleas at a series of board meetings urged the board not to cut the COS jobs earlier this month to which COS board chairman John Zumwalt declared that "if labor groups will shoulder some of the cuts, we will not have to cut one class" although there will be some people cut, he says. Zumwalt is proposing $1.9 million for the faculty to shoulder that includes a cap on medical insurance but also working an extra class without compensation.
"Whatever cuts we approve for staff - the same applies to me and administration," says Badrkhan. That's a sore point with Basil Perch who notes that while 11% of the VUSD teachers were notified for layoffs no administrators are proposed to be cut. "It ought to be equal - across the board." "The school's classified, administrators and school board members should all cooperate to save the school and the future of our kids," says Perch.
The former mayor says "I've told them that I've been on the hot seat too (at the city council) and in the end the boards of both districts are going to have to make changes to health plans - contract or no contract."
A March 25th meeting of the school board will discuss some of the district's options. But VUTA's Speckman says the membership won't be meeting again until early April to come up with whatever benefit package cut they might be willing to take.
Kings County - Lawsuits brought by a Kings County dairyman in late 2001 against both a private livestock auction house and the California Department of Food and Agriculture’s Bureau of Livestock Identification have both been settled. Attorney for dairyman Joseph Manni, Michael Farley says the settlement with A and M Livestock Auction was private and would not disclose the terms.
But Steve Lyle, director of communications for California Department of Food and Agriculture, says the state agency however, is not admitting any wrong, but did pay Mr. Manni a $25,000 settlement last November in the suit that charged two Bureau of Livestock Inspection employees of wrongdoing. The two were employees of that agency but had a financial relationship with the auction yard, says the lawsuit.
In the suit one brand inspector, Terry Pochop was accused of fraud allegedly conspiring to falsify documents on the sale of Mr. Manni’s cattle. CDFA’s Lyle says that as a result of the department’s investigation of Mr. Manni’s charges, two employees have been let go. He said he could not name them however.
State brand inspectors collect a per head fee on every head of cattle sold. The accusation was that cattle was sold, a per head fee charged, but the money wasn’t turned into the state.
The charges date from 1998 when Mr. Manni’s dairy was going out of business and the cattle sold at auction to satisfy a Union Bank loan. But some of the cattle were taken, says the lawsuit, involving the very agency that was set up to ensure cattle rustling in the marketplace was not going on.
The purpose of the agency is to protect cattle owners from theft, loss or misappropriation of their cattle. The agency’s budget is financed by the livestock owners themselves through a $1.90 per head fee collected by the inspectors from BLI on cattle that is sold.
Land O’Lakes Acquires Majority Share In Cheese Plant
Tulare - Land O’Lakes has bought out their Japanese partner’s share in the new Cheese and Protein International plant in Tulare on all but 5%. Mitsui was a 50% partner until December when the Minnesota-based cooperative gained a 95% interest in the new company, says LOL spokesperson Lydia Botham.
Mitsui is an international trading company that intends to sell CPI’s whey products abroad. According to Jack Prince, senior vice president of the Western Region Dairy Foods Group, Mitsui is very interested in maintaining an ownership interest in CPI in addition to its international marketing role.
CPI is nearing its current capacity of 3 million pounds of milk per day, but plans are to double its capacity in two years.
Prince says Land O’Lakes investment in the plant was an important one. “Our producers have been steadily growing, and they’ve told us they want to be able to grow their businesses in the future. Because customers are the key to creating value-added markets, we invested in CPI to process member milk into quality mozzarella and whey products. By meeting customers’ needs, this facility has the capacity to meet members’ growth plans as well as give a return on investment to all Land O’Lakes members.”
The city of Tulare was advised of the ownership share when Land O’Lakes asked for credits on installation of a new evaporator at the main Land O’Lakes plant to help rid both plants of salty brine water. The city is under the gun to reduce salts at the city waste treatment plant requiring dairy plants to treat their waste water. That is one of the costs that has increased Land O’Lakes start up costs at the new CPI plant that began production last year under a joint venture agreement.
Land O’Lakes reported an increase in net earnings in 2002 but was not due to its dairy foods division that registered a $32 million loss for the year. The company reported an increase in earnings from a vitamin price fixing settlement it received - over $96 million - that helped push net earnings for LOL to $98 million for 2002 - up from $71 million in 2001.
Loss in the dairy division came from the industrial side driven by “slumping commodity prices” says a LOL new release, lower mozzarella cheese prices related to the company’s new Tulare CPI plant and a $30 million loss related to the start up of CPI - co-owned with Mitsui. Mitsui also reported a tough financial year in 2002.
Friant and NRDC Extend Talks To April 22
San Joaquin Valley -Friant Water Users (FWU) and the Natural Resources Defense Council (NRDC) have agreed to extend settlement talks over the future of the San Joaquin River past their current March 31 deadline to April 22. So says president of FWS Kole Upton. “We both would like to have more time to talk,” says Upton, a Chowchilla farmer who represents some 15,000 farmers on the east side of the valley.
The issue dates back to 1988 when the NRDC filed a lawsuit seeking to deny long term contracts to Friant farmers for water delivered from the federal Central Valley Project. Friant diverts most of the water from the San Joaquin River held at Friant Dam and delivered both north and south in the Madera Canal and down the 152 mile Friant Kern Canal.
While the construction of the dam on the San Joaquin River in 1955 helped the eastside of the valley bloom, it dried up the natural flow of the river - critics say killing the river and becoming a dump for both city and farm drainage water. The issue has literally become one of farmers vs fish. But eastside farmers, not wanting to continue battling this out in court, have been seeking a way for both the river to come back to life and maintenance of farmers livelihoods perhaps some sort of creative plumbing.
In 2001 both sides reached an agreement to stay the lawsuit if Friant agreed to restoration of the river that includes restoration of the fishery that was there perhaps 60 years ago. The deal deadline set for a final agreement on just how the restoration would take place was the end of this month with help of a federal mediator - now put off almost a month.
Upton says FWU are working on various plans to “re-water the river” and one of the more promising ones is a “recirculation plan” to bring water down the river - dump it or exchange it for water in the California Aqueduct that can then deliver water to Kern water members of Friant.
Friant members fear if the NRDC doesn’t come to an agreeable solution to restore the river, that they will challenge existing Friant contracts in court cutting off water supplies to the farmers of the eastside.
“It’s tough when you are bargaining with those on the other side of the table who have a wide divergence of opinions,” says FWU member Dennis Keller, including those that don’t want you to build any new water conveyance devices or a dam to accomplish the re-watering. “It’s hard to say how it will come out.”
Westlands Talks
On a related matter, Upton told the Voice that talks between Westland and Friant were moving forward on a settlement of the claim by Westlands over water from the San Joaquin River.
The Voice broke the story a few issues ago that for the first time in years the eastside water district and the westside water district were talking. “They’ve had a change of leadership over there,” says Upton, referring to the new president of Westlands - Dan Errotabere. Friant has said that they can’t support any help for Westlands desire to improve their water supply unless Westlands backs off on their application to take Friant water from the San Joaquin.
Asked how long it would be until Westlands announces a deal, Upton said he believed “it won’t be too long.” “They are calling for a more cooperative relationship with us.” Westlands may withdraw their application for the river water at the state Water Resources Control Board.
Hospitals Fund Central Valley Lab Tech and Nursing Programs
Tulare County - Tulare and Kings County hospitals are joining forces to start new nursing programs at Porterville and West Hills junior colleges and fund an expansion for the nursing program at COS - doubling its current enrollment. Other med education programs are underway as well.
Total funding exceeds $1 million, says Tim Curley, Regional VP for the Hospital Council of Northern and Central California. “There are lots of unmet needs related to training programs for healthcare workers in the Central Valley,” says Curley, “and the hospitals have stepped up to the plate doing today what the state should be doing” - funding healthcare education training.
With a nursing shortage everywhere, it is hospitals who have been forced to play the role of funding agent for training the practitioners they so desperately need.
Now for the first time Bakersfield College will expand a registered nurse program at Porterville Jr. College and West Hills College that together will graduate 40 new nurses over the next two years. Sierra View Hospital will fund $245,000 to the program started at Porterville College and the college has agreed it would assume responsibility after that, says a memo from Sierra View CEO Kelly Morgan. The new programs will enter students this August.
“We are very excited about having an RN program in Porterville. We have been working towards this goal for quite some time. The more opportunities we can make through collaborative efforts we increase the communities opportunity to train and retain skilled staff. This is definitely a win for everyone,” says Kathleen Widlund, Vice President of Patient Care Services.
Hanford Community and Corcoran District Hospital are also helping the start up West Hills program along with helping to fund the COS expansion. Kaweah Delta and Tulare District are also funding the nursing program and the expansion of the COS nursing programs. Lindsay Mann, CEO at Kaweah Delta, announced at a COS board meeting that the two districts would donate $655,000 over three years to expand the COS program. COS takes in some 30 new nursing students a semester. That addition would add some 130 new nurses over three years helping to reduce the community’s critical nursing shortage, says Mann.
College of the Sequoias has a two year RN curriculum and an LVN to RN Bridge program.
Clouding the picture is a plan to cut 7 and ˝ positions from the COS nursing program by the COS board in recent days potentially cutting the staff back just as the hospitals seek expansion. COS president Kim Badrkhan says he is optimistic “we will find a way” to fund these those positions.
Also funded this year is $151,000 contribution to West Hills to start up a radiology tech program with a class of 8. In addition a med lab tech program at COS starting this fall with 10 students is funded through the hospital council for $84,500.
Workers Comp Rates Kill New Jobs At Visalia Firms
Visalia - Visalia companies are suffering under the burden of higher and higher workers compensation rates. “The system is simply a job killer,” says Visalia Chamber president Ken Oplinger who is working to get the word out that increasing costs are having the effect of putting more people on the unemployment lines.
Here’s the story from the point of view of two major employers in town:
The Holiday Inn Hotel and Conference Center has 257 rooms and suites. Recently renovated, the hotel is one of the largest in the Visalia area. They employ 175 people. The Visalia hotel’s costs have skyrocketed since 2000 (see below).
That is a 259% increase in just two years. The company that owns this property also owns 3 other hotels in California. Those properties and increases over the same two year period were:
Palm Springs –– 310%
Fresno –– 247%
Buena Park –– 251%.
The hotel is looking at ways to trim back the number of full-time employees to decrease the amount they have to pay in the Workers Compensation.
Voltage Multipliers, Inc. began operations in Visalia in November of 1980. Initially designing and producing voltage multipliers, their product line has expanded to include diodes, high voltage power supplies and rectifier assemblies. Voltage Multipliers, Inc. currently employs 131 people of which 18 are temporary workers.
Their Workers Compensation rates for the past three years have been:
YEAR Premium Paid
2000 $ 49,000
2001 $ 83,000
2002 $ 96,000
Because of the increasing costs of Worker’s Compensation Voltage Multipliers, Inc. will be purchasing a $125,000 machine that will keep them from hiring several employees. Furthermore, Dennis Kemp stated at the California Business Conference on March 4, 2003 that if Workers Comp premiums were stabilized at an appropriate level, he would make ten of his temporary employees full-time.
Case Drag On
Workers Compensation Rates have increased dramatically over the last three years. ALL California businesses have seen increases of 100 to 400% during that time. (Example – one large business went from $220,000 in W.C. premiums paid in 2001 to $890,000 in W.C. premiums paid in 2003.)
Last year, the Governor signed a bill increasing the benefits paid to injured workers, but did not address the problems causing such huge cost increases, says Oplinger. That bill doesn’t take effect until July, which will mean another 20 – 30% increase in premiums next year, on top of the on-going increase.
80% of all Worker’s Compensation Permanent Disability Claims are for people with less than a 25% permanent disability. The vast majority of the money, and it’s increasing, goes to people who have arthritis or stress, not people who are seriously injured on the job, says the Visalia Chamber.
The system was meant to cure an injury and get an employee back to work, or compensate an employee for a permanent injury and retrain them for another job. But today, “cases drag on for years before they are resolved.”
One local business reported an injury, and the employee was evaluated. The evaluation said that the injury was not carpal tunnel, but rather arthritis that comes with age. But while the proper course of action was being discussed, the employee made a further claim that her other arm was injured while compensating for the first “injury.” Four years later, this claim remains unresolved.
The above stories are the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher.
March 19, 2003
