Looking for creative ways to ease Georgia’s budget crisis, state officials have approved a withdrawl from the state’s health plan.
The state will tap into its health plan reserve fund to the tune of $525-million. The money will allow schools and state agencies to pay a lower percentage of payrolls into the health plan.
As example, the state agencies’ rate will drop from 22-percent of payroll cost, down to 2-percent. That would save around $126-million. State employees and teachers will still pay their full premiums.
The Governor’s office says this is a move to avoid deeper budget cuts. And it only applies to the rest of the fiscal year, ending June 30th.
Governor Perdue is preparing his state budget recommendations to present next week when the Legislative Session opens.
The state will tap into its health plan reserve fund to the tune of $525-million. The money will allow schools and state agencies to pay a lower percentage of payrolls into the health plan.
As example, the state agencies’ rate will drop from 22-percent of payroll cost, down to 2-percent. That would save around $126-million. State employees and teachers will still pay their full premiums.
The Governor’s office says this is a move to avoid deeper budget cuts. And it only applies to the rest of the fiscal year, ending June 30th.
Governor Perdue is preparing his state budget recommendations to present next week when the Legislative Session opens.
