Directing More Dollars to Classrooms with Funds Districts Already Have
The issue of school funding is a big focus this year in Juneau. Few are talking about one way we can increase dollars for classrooms without one new penny. And it’s not just chump change either that could be redirected to student instruction.
By giving school districts the option to participate in AlaskaCare, the health insurance plan for state employees, the potential savings of what districts direct to their current health plans would be quite substantial – “enormous” might even be the better word in some districts.
As an example, Mat-Su Borough School District (MSBSD) predicts they could see an increase of $3.3 million in one year for their healthcare costs – which is equivalent to 33 teaching positions. Already spending $41 million each year on healthcare coverage for their employees, rough and unofficial estimates put the annual savings for the district at $7 million if it were able to opt into the state’s AlaskaCare plan.
That $7 million is enough for more than 65 teaching positions. That $7 million could be directed into the classroom. That $7 million could help improve student learning outcomes.
Why would we not want this option for our districts? Allowing this provision is common sense, folks.
Last week, I filed Senate Bill (SB) 110, the Senate companion to HB 21 introduced by Rep. Sarah Vance in January. The bill amends current statute to create the opportunity for school districts, the University of Alaska, and governmental units such as cities and boroughs to optionally participate in AlaskaCare, the state employee healthcare program.
These entities would have the choice to opt into the pool as an entire entity, enabling Alaska’s Department of Administration to negotiate a better cost of healthcare.
An analysis conducted by the Institute of Social and Economic Research of the University of Alaska Anchorage suggests that Alaskans spend the most per resident, face the highest insurance premiums, and have seen overall spending grow much faster than the rest of the country. Alaskans spent more out-of-pocket dollars on health care costs than residents in any other state in 2019.
A recent article I wrote on this topic about Alaska, “Enough is Enough: Healthcare Costs are Breaking the Bank”, will absolutely shock your socks off.
Now add all that disturbing information about Alaska’s healthcare costs in general to how this is impacting our school districts. According to Rep. Vance’s office, on average, 45% of our state educational budget funds healthcare and benefits, leaving only 54% to go towards the classroom.
As you can imagine, the rising healthcare costs for districts is impacting recruitment and retention of teachers. If passed, the legislation would ease the financial burden of school districts and at the same time, give the State of Alaska more leverage to negotiate with healthcare providers, improving services for all the Alaskans participating in the pool.
A number of school districts statewide have been letting us know for several years that they support responsible cost containment efforts for district health care plans through efforts that promote efficient practices and increased transparency. This year they are beginning to let us know this pair of bills (which makes the option for a district to enroll in AlaskaCare possible) is in alignment with their policy priorities.
Redirecting millions of dollars currently being spent on healthcare by districts to classrooms to help improve student learning is a no-brainer.
It seems it always comes back to common sense. Let’s hope enough legislators, including legislators who are sitting in leadership and chairmanship positions of jurisdiction, will agree HB 21 / SB 110 is good policy.
