October 27, 2000 e-newsletter

By Rich Eggleston

Health-care cost increases of up to 37% were reported by respondents to an Alliance of Cities survey at the end of September. State Sen. Margaret Farrow, R-Pewaukee, asked the Alliance to conduct the survey after she was told of dramatic premium increases faced by some communities in southeastern Wisconsin.

Sen. Farrow, a member of the Kettl Commission, also solicited data from communities in her area at the Alliance's invitation. Findings of the survey included:

• The largest overall health cost increase anticipated among Alliance members was 34%, expected in Marshfield. The largest expected increase among non-Alliance members was 37%,  by Brookfield and Hartland. The largest increase in monthly premiums per employee among Alliance cities was 25% expected in Menasha.
• The Wisconsin Public Employers  Group Health Insurance Program, which covers four Alliance members (Baraboo, Madison, Watertown and Whitewater) reports increases averaging 19.3% for employees enrolled in single plans and 15.7% for employees enrolled in family plans.Overall cost increases expected by the Alliance members enrolled in the state plan range from 14% in Baraboo to 18% in Madison.
• Nearly half the 30 Alliance members (but less than one-third of the 14 non-Alliance members) responding to the survey are self insured. Milwaukee, Green Bay, Racine, West Allis and Appleton all are self-insured.
• The overall health-cost increase expected by Alliance members that provided an estimate, excluding Milwaukee, was 10%. The overall cost increase expected among non-Alliance members was 22%.

Impediments to switching to a purchasing pool cited by various communities:

• It would run afoul of collective bargaining agreements.
• Sharing of risk is a two-way street: it can have advantages and it can have disadvantages.
• In one city, a consultant opined that while voluntary purchasing coalitions are legal, combining with other public entities to purchase health care is not.

Communities that wish to use the state plan also may be prevented from doing so by collective bargaining agreements that require the community to cover 100% of health insurance premiums, but Wisconsin Administrative Code allows local governments to cover no more than 105% of the lowest-cost alternative.

For a snapshot of survey results, please look here.

For more information on the Wisconsin Public Employers Group Health Insurance Program, look in ETF's Sept. 25 employer bulletin, which is located here:  http://badger.state.wi.us/agencies/etf/empl/eba9250.htm.

Ed and Gail have begun the time-consuming process of visiting legislators to explain the Alliance's 2001-2002 proactive agenda. As you know, the agenda calls for fair taxation on a number of fronts; an inflationary increase in shared revenues that benefits every municipality in the state; a regional solution to the stormwater mandate; an improved brownfields program; a funding approach to recycling that discourages dumping of out-of-state waste in Wisconsin; and state gas tax exemption for local governments and school districts.

As Ed and Gail make the rounds at the Capitol, please reinforce their message. When you see one of your legislators' names highlighted in the list that follows -- this report will be a regular feature in the Alliance newsletter -- please click on the highlighted name and send that legislator a brief e-mail urging him or her to support the Alliance agenda. Heck, just cut cut and paste from the above paragraph if you're pressed for time. Or, better yet, elaborate. Our issues, position papers and resolutions on the issues are located here. These issues are important to many, many cities. Carbon us in or let us know that you've been in touch.

The legislators and/or staff Ed -- who is on vacation this week -- has visited include: Sen. Richard Grobschmidt, D-South Milwaukee; Rep. Luther Olsen, R-Berlin; Rep. Pedro Colon, D-Milwaukee; Rep. Spencer Coggs, D-Milwaukee; Rep. Hank Urban, R-Brookfield; and Rep. John Ainsworth, R-Shawano.

The legislators and/or staff Gail has visited include Rep. David Cullen, D-Milwaukee; and Rep. Al Ott, R-Forest Junction.

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DNR Eyes Another Reorganization

The DNR is in the very early stages of reorganizing the agency based on environmental management system principles - the "most bang for the buck" or "end of pipe," rather than the current "command and control" system of regulation. Five pilot projects were initiated six months ago, including solid waste management and recycling. Ed and Gail attended a meeting Oct. 17 to begin the dialogue with the DNR and others who have a stake in DNR decision-making. We have asked for details on the agency's plans to implement the strategy in solid waste and recycling.

Ed also has contacted the DNR and asked the agency to integrate EMS thinking into the stormwater rule and consider enforcement agreements by contract rather than insist on struct adherence to administrative rule.

Contact Ed with questions/comments at ed@wiscities.org.

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Upcoming Events

        Oct. 31                         Wisconsin Land Council executive committee, 1-3 p.m., DATCP Bldg.
        Nov. 2                          Kettl Commission, UW-Stevens Point
        Nov. 7                           Election Day (for returns: http://www.thewheelerreport.com)
        Nov. 8                           Partners in Local Govt. (for info, Mark Lederer)
        Nov. 10                         Common Good (anti-takings) Coalition (for info, Dick Lehmann)
        Nov. 16                        Kettl Commission, Janesville
        Nov. 17                        Alliance of Cities meeting, Janesville

New Alliance Web Site Features

Internet sites are monsters that keep growing. Even the Alliance of Cities' web site fits that definition. Here's the first of several features that we're trying to incorporate to manage that growth: