November 3, 2008                                                             

School districts voice support for Weitzman & Suozzi’s attempt to recoup State health insurance excessive payments

County Comptroller Howard S. Weitzman said that school districts throughout Nassau County have voiced their support for County Executive Thomas Suozzi’s and his pursuit to recoup excessive premium charges by the State’s health insurance program, a potential cost-saving opportunity that could mean school districts, villages and other local government receive millions of dollars.

“These excessive premiums were never justified,” said Comptroller Weitzman. “NYSHIP’s practice of retaining $540 million in surplus money from prior years is not affordable for governments and school districts, and is especially onerous in today’s economic climate.”

School districts and local governments in Nassau would stand to recoup up to 18% of their projected State health insurance bill. For the average school districts this could mean about $1 million; for some small village governments like Great Neck Plaza, $77,000; and for Nassau County, approximately $37 million.

“I don’t know one school district, village or town government that would say ‘no’ right now to that kind of cash,” said Weitzman. “We are all making spending cuts, we are all looking for new revenues and we are all readying ourselves for the possibility for even tougher times ahead.”

“Particularly in these challenging financial times, money that rightfully belongs to school districts should be in the hands of the school districts,” said Lynbrook U.F.S.D. Superintendent Dr. Santo Barbarino.

Levittown U.F.S.D. Superintendent Dr. Herman Sirois said, “School districts are pulling out all stops to give homeowners some tax relief in these times. These funds are available and the State should do their part to retrieve it.”

Dr. Edward Price, superintendent the Island Park School District stated, “We support all efforts to control cost where we would end up with more flexibility to support instructional services.”

Dr. Herb Brown of the Oceanside Unified School District said, “In these difficult economic times in which the state aid we receive may be cut we need NYSHIP to release their surpluses in order for us to keep our tax rates lower.”

Sewanhaka Central High School District Superintendent Warren Meierdiercks stated, “Whatever the Sewanhaka Central High School District would be entitled to in the form of reimbursement we would expect to be returned to the school district for the benefit of all our tax payers.”

Nassau officials are also asking that premium rates be reduced to end the practice of insurance companies accumulating the excess charges.

NYSHIP was established under the New York State Civil Service law as the mechanism through which the State provides health benefits to its employees and retirees. Many local government entities, including counties, cities, towns, public authorities, school districts and others provide health benefits to their employees and retirees through NYSHIP as “participating agencies.”

County officials believe the excess premiums can be eliminated without reducing benefits or increasing costs to the employees, retirees and dependents who receive healthcare benefits through NYSHIP.