ROMER CALLS FOR HEALTH CUTS UNION OPPOSES ANY CHANGE IN BENEFITS AS SPENDING KEEPS GROWING.

Byline: Helen Gao Staff Writer

With annual health care costs at the Los Angeles Unified School District projected to reach $1 billion in five years, Superintendent Roy Romer on Tuesday floated three cost-cutting proposals.

John Perez, president of the United Teachers Los Angeles, was infuriated that Romer chose to unveil the cost-cutting measures at a public meeting.

``We believe this is wrong. The district should not engage in public negotiation,'' he said.

One of Romer's proposals calls for eliminating ``double benefits.''

Currently if a husband and wife both work for the school district, they have two health care packages - one through their own plan and one through their spouse's.

Under the proposal, employees will receive a $1,000 incentive to give up the double benefits, and the district is expected to save $5 million per year.

Another cost-cutting measure Romer proposed is a change in the district's prescription drug policy for after employees' first visit to the pharmacy.

Under this plan, for a $10 co-payment, employees would receive 90 days worth of medication, resulting in $1.9 million in savings.

Romer's third proposal calls for stopping lifetime health care benefits to new employees, after they become eligible for Medicare at age 65.

Currently, retired employees who have worked for the district for a requisite number of years enjoy health care benefits both from the district and Medicare.

District officials did not provide an estimate on how much this particular measure would save.

``We are going to have to work together to keep the quality but reduce the cost of health care, or (the cost) will break us,'' Romer implored union representatives who were present at the meeting.

Outside the downtown Business Magnet High School, where the board was meeting, more than 100 district employees from seven unions urged the Board of Education not to cut their health care benefits.

Many were angry upon recently learning the Los Angeles Unified School District has a $578 million surplus, after drastic budget cuts were instituted.

``We know there is enough money in the budget for health care benefits and a pay raise,'' said Dolores Sanchez, a member of the California School Employees Association.

``We are united to fight (the health care cuts) every arduous step of the way,'' Sanchez said.

She and other union members hinted that if they didn't get their way, they would campaign against the district's $3.3 billion bond scheduled for the Nov. 5 election.

While the district has agreed to maintain existing health care benefits to 2003 using one-time money from the budget surplus, the unions remain unsatisfied. They are asking revenues to be set aside to keep the benefits at the same level for years to come.