Legislators reach compromises on state employee insurance, budget rules

Two items detailed in the Deseret News are coming to compromise.

Rep. Brad Dee, R-Washington Terrace, says the state employee health insurance group — Public Employees Health Plan, a division of the state retirement fund — has agreed to negotiate what would be a $17.3 million increase in cost next fiscal year.

Dee told his GOP House caucus that HB451, introduced and passed Monday in the House, has moved the group's executives.

It is still possible that state employees could see a $35-$40 per month increase in their health insurance rates. But like always, the state itself would pick up most of the cost on increased health care insurance.

And House Budget Chairman Ron Bigelow, R-West Valley, says a compromise has been reached on HB391 with the governor's office.

Originally, his bill said that the Legislature's Executive Appropriations Committee (leaders in both bodies, both parties) could meet during the interim, study new state revenue updates, and declare a tax shortfall. State agencies would then have to cut back their budgets at the rate the committee set.

Huntsman objected to this, saying that encroached on his power to administer a budget once adopted by legislators.

Now HB391 says that after the Legislature and governor's office have "consensus" on updated revenue estimates, if those estimates show a shortfall, the governor himself shall order budget cut backs to meet those new revenue estimates.

Some GOP legislative leaders were very displeased last December when Huntsman refused to call lawmakers into special session to deal with dwindling state revenues. Huntsman said his previous orders to curtail state department spending was sufficient, while leaders maintained it was not. Now SB391 provides a way to make agency cuts that legislators at least agree with.

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