Week in review

Former employees facing a sharp rise in health care costs say they will only accept what was promised to them when they retired, despite an announcement that the San Mateo Union High School District is willing to increase its contribution, cover deductibles up to $1,500 per insured for one year and form a special hardship fund.

"I think it’s an insult to us to even offer this, said retired classified employee Lucy Cerecedes.

Early retirees, former employees who retired before 65, previously were provided health care from the same pool as current employees. Earlier this year, the Board of Trustees decided to separate the group of about 70 people to save the district money. The decision, however, meant dramatically higher health care costs for the small but increasingly angry group.

Complaints from those facing costs that were set to quadruple next month resulted in the board creating some concessions to try and ease the financial impact. Those affected, however, want to be added back into the current employee health benefit pool, a move they say was promised to them prior to making the decision to retire early.

Cerecedes explained the group will only accept what they feel was promised to them when they retired: Access to the same benefits offered to current employees. And legal action is a real possibility.

A number of concessions are being offered to the early retirees. Some of the early retirees receive a $250 monthly stipend, which will increase to $500 for those insured through Anthem Blue Cross of Kaiser, according to a district press release. Former employees and their spouses who currently do not receive a monthly stipend will be eligible to receive a $250 monthly reimbursement until age 65 beginning Jan. 1. This contribution can be applied to either a district-sponsored or outside medical plan.

County kicks up budget fix timeline

County leaders need to work with residents and employees in speeding up plans to fix a $100 million structural deficit through a mix of cuts, savings and possibly even new taxes, County Manager David Boesch.

"The situation is urgent but not yet dire,” said Boesch who told the board action is needed now through the June adoption of the preliminary budget.

Although the economic nosedive hit San Mateo County much as it has other locales, the structural deficit existed two and a half years ago when former county manager John Maltbie pushed the board to adopt an elimination plan, Boesch said.

Now in its third year, the plan needs accelerating, Boesch said before outlining lists of assumptions, estimates and — ultimately — scenarios in which to combat a deficit that by current predictions is poised to worsen. Originally, the county worked with the presumption the deficit would hit $100 million by 2011. In April 2009, the deficit hit that mark and continues to grow. The entire county budget is $1.76 billion.

Council OKs cuts

Faced with a slate of budget cuts to city services and programs, newly elected San Carlos City Councilman Andy Klein offered a novel fix for the special needs program — each councilperson forfeit his stipend.

If the council had agreed, the $15,000 total would more than cover the $11,000 needed to give the endangered program "time to find a home,” Klein said.

The program is currently in talks with Redwood City, said Parks and Recreation Director Doug Long.

Ultimately, the council passed after City Attorney Greg Reubens explained the matter must first pass through closed session and budget priority setting. However, the suggestion illustrated the lengths the council was willing to take Monday night to avoid a list of budget cuts to services, programs and employees agreed upon last May if a half-cent sales tax measure failed in November.

The City Council finally voted 3-2, with councilmembers Omar Ahmad and Matt Grocott opting for no, in favor of the cuts which become effective in June 2010. Ahmad disagreed because he wanted the trigger pulled on the cuts more immediately.

When the city first established the list of cuts, it was looking at a $2.4 million deficit. Within the last week, the figure moved closer to $3.6 million, said City Manager Mark Weiss.