Public Act 152 and Bloomfield Township's Missed Opportunity to Save Money

At the Dec. 12, 2011 Bloomfield Township Board of Trustees meeting, Public Act 152 was agenda # 9. The trustees voted to exempt the township from the financial part of the Act that could have produced savings to the taxpayer.

Act 152, the Publicly Funded Health Insurance Contribution Act,  became effective on September 27, 2011, and reads:

 
"AN ACT to limit a public employer’s expenditures for employee medical benefit plans; to provide the power and duties of certain state agencies and officials; to provide for exceptions; and to provide for sanctions."

A key word is "contribution:" the public employees were being required to contribute money to their health care plans. Depending on the plan, the contributions varied by both the employee and the employer. What health coverage plans do our employees have? What is the cost of contributions by the employer (the taxpayers)?

Second key word is "exempt": While this act appeared to help stem the rising cost of health care of public employees for the employer, the act provides for communities to opt out or exempt themselves from this requirement. IF the employees are currently under a contract that was signed before the date of this new legislation, exemption is possible by a 2/3 vote. All new contracts after Sept. 27, 2011 must comply.

Is this why the township and the employees signed a six-year contract while David Payne was Supervisor way in advance of the then existing contract termination date?

The question I asked of the Board of Trustees: What type of health plan(s) currently exist for Township employees and what would the savings be if the Township followed Act 152 without exempting out? How much money could be saved?

Township Treasurer Dan Devine responded, however, I can only recommend you watch the archived video of his answer. I quit listening as my head was spinning. I wanted a FACT. Something like, 'after careful review of all township health care policies, and doing the mathematical calculations of what was now being required by ACT 152, it was determined that the township would save XXX dollars per year if the township does not exempt from the provisions of Act 152.'  Were those calculations ever performed? If so, not presented at the meeting. Do any of the trustees know how much money the township could have saved the taxpayers?

Instead, the township had a prepared resolution ready for the meeting with a lot of  "whereas.." blah, blah, blah, and are choosing not to comply with the enforcing of contributions by the employees as stated in Act 152, because they CAN exempt.
Guess what? The contract is for six years. Five more years for "exempt" from provisions of the Act 152?

I found contract information after the meeting when a reader informed me that the township is accepting more applications for the position of firefighter/paramedic.

Click here to read more about the contracts at the township and my comments. Unbelievable.