Jeff Adachi: Prop. B Deserves Support

The facts about health care for city workers under Prop. B

Proposition B, which will be on the ballot in November, addresses not only the City's escalating pension costs for city employees, but also health care costs. There are two provisions to the measure. The first requires all city employees, including elected officials, to contribute between 9 - 10 percent towards their retirement pensions. Currently, nearly half of City employees do not contribute towards their pensions.

The second requires that city employees contribute more towards their family's health care costs.

Here are the facts about the costs of health care to taxpayers for the city's 26,000 employees and 28,000 retirees:

Currently, the City is spending $456 million for city employee and dependent health care each year. According to the City controller, this number is expected to double within five years.

The controller estimates that the City's retiree unfunded health care liability is growing by $300 million annually.

Under Proposition B, all City employees and retirees will continue to receive 100 percent of their health care benefits paid. However, instead of the City paying 75 percent of dependent health care costs, all City employees will share 50-50 in the cost of health care for their dependents.

The way it is now under the lowest cost health plan:

• A city worker with no dependents pays nothing for his or her health care and the City pays $481.70 per month;

• A city worker with one dependent pays $8.84 per month and the City pays $953.50 a month;

• A city worker with two or more dependents pays $228 per month and the City pays $1,132.54 a month.

All of these payments into health care by city employees are with pre-tax dollars.

Under Proposition B:

á A city worker without dependents would still pay nothing; á A city worker with one dependent would pay, on average, $241.76 per month;

• A city worker with two dependents would pay $439.79 per month (sources: City controller, SF Department of Human Resources, Health Service System).

Compared to what the average private sector employees receive:

• Only 60 percent of San Francisco businesses offer health care benefits for employees;

• Private sector employees with no dependents who do receive health care must pay an average monthly cost of $402 (compared to City employees who contribute nothing) and pay $1,114.58 with dependents;

• While 100 percent of public sector employees receive retiree health benefits, only 29 percent of private sector employees receive such benefits.

Keep in mind that the average San Francisco city employee earns $93,000 a year, not including benefits, compared to $46,000, which is what the average private sector employee who works in San Francisco earns.

According to the Health Service System, Proposition B would save the City $83.3 million annually in health care costs. Some of these funds can be used to preserve health programs for vulnerable adults and children who do not have health care coverage.

Even with these changes, city employees will receive a benefit package that is unparalleled in the private sector. More importantly, however, the City's health care fund will be made more sustainable and the savings from this measure will help preserve the essential services that are relied upon by all San Franciscans.

Opponents of Prop. B have said:

In the voter's guide, the opponent's argument states Prop. B "cuts health care benefits for widows and children of police officers or firefighters killed in the line of duty." This is untrue. Under California state law (section 4856 of the Labor Code, passed in 1997) families of deceased public safety officers are entitled to receive health benefits "under the same terms and conditions prior to the death of the employee." Proposition B does not change this.

In addition, under the federal Public Safety Officers' Act, widows and children of police officers and firefighters killed in the line of duty receive $275,000.

The opponents have also declared that Proposition B fails to "distinguish between low-wage and highly-paid workers." San Francisco has never based contributions by city employees on the income level of its employees. All employees have always paid the same amount, regardless of their income level. Proposition B does not change that.

The opponents also say that Proposition B "makes San Francisco ineligible for $23 million a year in federal health care reform funding." This is not true. Nothing in Proposition B makes San Francisco ineligible for federal reimbursement of health care costs.

Proposition B creates a reliable, annual funding stream of support, as opposed to "one time" savings measures and uncertain state and federal revenue that San Francisco can't always count on.

This is why 49,178 San Francisco voters signed the petition to put Prop. B on the ballot.

For more information, please visit www.sfsmartreform.com or to help on the Prop. B campaign, call (415) 905-9100.

Vote "yes" on Proposition B!

Jeff Adachi is the public defender for the City and County of San Francisco.