L.A. Mayoral Candidate Offers Health Benefit, Pension Overhaul Plan
On Thursday, Los Angeles City Council member and mayoral candidate Jan Perry (D) outlined her plan to reduce costs through changes to city workers' health care benefit and pension contributions, KPCC's "KPCC News" reports.
Perry said that Los Angeles faces an estimated $1 billion deficit over the next five years. She noted that employee wages and benefits make up the biggest portion of the city budget.
Although city analysts project a $73 million revenue increase next year, employee costs will increase by $208 million, largely because of increasing health care and pension costs, she said.
Perry said that no city worker currently pays more than 5% for health benefits (Stoltze, "KPCC News," KPCC, 11/8). She added that about 70% of city workers pay nothing toward their health premiums.
Perry said, "The truth is that we cannot afford to pay our city workforce in its current configuration" (Mai-Duc/Linthicum, Los Angeles Times, 11/9).
Details of Perry's Plan
Perry said that all city workers should contribute 10% of their salaries toward health benefits and 11% toward pensions ("KPCC News," KPCC, 11/8).
She estimated that the changes would save about $44 million annually.Perry said that she also is looking for other strategies to reduce the city's budget shortfall (Los Angeles Times, 11/9). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.