Gregoire Seeking Pension, Health Care Savings - Spokane, North Idaho News & Weather KHQ.com

Gregoire Seeking Pension, Health Care Savings

OLYMPIA, Wash. (AP) - Gov. Chris Gregoire is asking the Legislature to make changes to the state's health care and pension systems to help address costs as the state grapples with a
projected $5 billion deficit for the next two-year budget.

Gregoire told reporters Monday she is proposing ending automatic yearly pay increases for some pension plans, a move she says would save the state $368 million for the 2011-2013 budget and would cut the state's unfunded pension liability of $7 billion by nearly 60
percent.

Gregoire also says she wants to limit increases in the state's health care costs to no more than five percent a year by 2014, and that she will pursue legislation to consolidate a majority of the state's health care purchasing into a single agency.
      

(Copyright 2010 by The Associated Press.  All Rights Reserved.)
   

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