Associated Students Inc. approved a resolution that may prevent student fees from increasing in order to cover the medical costs of benefits for Cal State Long Beach employees on its first reading last Wednesday.
The resolution would make the student government organization no longer subject to the Public Employees’ Medical and Hospital Care Act.
The act mandates public agencies agree to “contribute a portion of the cost of providing … [health] benefit coverage” to approved benefit plans employees are enrolled in.
“I definitely see the importance of making these financial decisions,” said Stephen Thomas, ASI vice president. “Going along with this trend, all of our student fee revenues for these benefits wouldn’t be able to provide any other services.”
In August 2000, ASI chose to be subject to the act in order to provide medical benefits for retired employees, according to Richard Haller, ASI executive director.
The resolution will only apply to employees hired on or after Jan. 1 2013, not current employees.
As of the end of the last fiscal year, the cost of life-long medical benefits for retired employees was projected to be over $5.6 million, Haller said.
ASI is electing to no longer be required to support these medical benefits because they cannot afford to.
Student fee revenues are going up as CSULB employee benefit-costs continue to rise. This resolution seeks other alternatives for providing employee medical benefits.
Thomas said, if the resolution is passed, student fees can be used for something else that will benefit students.