Constantine and Ferguson call for higher-paid, non-unionized County employees to pay part of health coverage

May 7, 2009

Summary

Measure would save up to $1 million a year

Story

King County employees who earn more than the county’s mean income would be required to pay for part of their medical coverage under an ordinance introduced today by Council Chair Dow Constantine and co-sponsored by Council Vice Chair Bob Ferguson. The proposed ordinance would not apply to employees who work under a collective bargaining agreement.

“The spiraling cost of employee health benefits is a major cause of financial stress for King County and other employers, and we project that these costs will continue to rise,” said Chair Constantine, prime sponsor of the ordinance. “The total cost of benefits for King County employees rose 35 percent in the last five years—from $158 million in 2005 to $214 million in 2009.”

The ordinance proposes a formula for sharing the cost of medical benefits under which non-represented employees would contribute 2 percent of the amount by which their annual income exceeds the King County mean income. For example, under the proposal an employee who makes $80,000 would contribute approximately $33 per month. It is estimated that this step alone could save as much as $1 million per year.

“We are in uncharted territory in our budget crisis, and we must put every option on the table,” said Vice Chair Ferguson. “None of the choices that we face are easy, but we must start having these tough conversations and tackle these important issues of county government head-on.”

The County Executive would be assigned the task of setting the county mean income once a year, with the Council confirming the Executive's proposal. Various public and private sources calculate mean income statistics; for example, the U.S. Bureau of Labor Statistics estimated the 2008 King County average income to be $60,424.

“Especially in these tough economic times, King County needs to show taxpayers that we are working to cut costs, just like families and businesses,” added Constantine. "For those of us in public employment who are earning more than the average wage, it is not too much to ask that we pay a part of our health care to save money for critical county services like policing and public health."

Other local governments, including the state of Washington, Snohomish County, and the cities of Seattle, Tacoma and Bellevue charge a flat monthly fee for medical benefits ranging from $28 to $48.

Next year, under a proposal negotiated by outgoing Executive Ron Sims, King County would increase employee co-pays and reduce co-insurance, measures predicted to save more than $12 million annually.


Read the legislation