MJC faces dilemma over insurance costs

Modesto Junior and Columbia colleges have experienced the budget troubles affecting the whole state, but not nearly as much as the four-year universities. Part-time faculty was reduced and students felt a double squeeze — a $6 per unit increase in fees and harder-to-get classes. But there were no significant layoffs or furloughs of full-time staff and faculty at the two colleges.

The future doesn't look so good.

The Yosemite Community College District expects to cut $12 million from the 2010-11 budget. On top of that, the district faces a 25 percent increase in health insurance costs effective Jan. 1. That translates to $3.5 million in additional costs.

The college district is starting to talk to employees about options that include changing insurance carriers and having employees contribute toward premiums. Currently, the almost 900 full-time YCCD employees do not contribute to monthly health insurance premiums, which cost the district about $1,050 per person. Immediate family members also are covered under this plan, which extends through retirement.

Some comparisons underscore just how generous these benefits are. According to the latest study from the Kaiser Family Foundation, American workers on average pay 17 percent of the premium cost for individual coverage and 27 percent for family coverage. The Modesto City Schools pays a flat $150 per employee toward health insurance, leaving the rest of the cost to the worker.

Even members of Congress do not have as generous coverage as the YCCD employees have. Congressmen are covered by the Federal Employees Health Benefits Program, which offers a variety of plans; they pay about 28 percent of their monthly insurance premium.

The solution is not as simple as the college district demanding that its employees start contributing. For one thing, this is a negotiable item. And there are other factors to consider:

• In recruiting faculty members, virtually all of whom have at least a master's degree and some a doctorate, MJC and Columbia compete with colleges around the state. Many offer generous benefits. We want our local colleges to be able to attract top-notch faculty.

• In hiring clerical and custodial staff, the college district competes primarily against local employers, most of which have far less generous benefits. This disparity is noticed by the private sector.

• But there also can be tension when co-workers do not receive the same benefits, even though they are on different salary schedules.

The three YCCD bargaining units — faculty, classified and management — plan to meet with district negotiators next month. We're hopeful they will find a way to solve the immediate problem — that $3 million jump in the insurance for the district.

Over the long term, the college district faces the same sorts of questions that all employers, especially public agencies, face in dealing with rising health insurance costs and trying to provide fair compensation packages.