Proposal to Let School Districts Choose Insurance UPDATE

by: Derek Viger

Fri Feb 19, 2010 at 07:45:59 AM EST

Legislative solutions to Maine educational budget problems are starting to come in.  Rep. Ralph Sarty (R-Denmark) released a proposal for one such idea today.  Rep. Sarty's legislation would give districts the option to self-insure and hopefully save money.  "I've spoken with nearly 20 school superintendents, and they are all intrigued by this idea," said Rep. Sarty (R-Denmark). "They are keenly aware that the state's General Purpose Aid for local schools will drop by $92 million next year and is expected to remain at that level for the following biennium. Health insurance for teachers is costly, and superintendents are very interested in the idea of saving money by self-insuring. They see it as a way of preserving positions for teachers."

More here

UPDATE: Rep. Sarty's proposal was voted down today.  In a party line vote, the Legislative Council rejected the proposal  6-4.