Dominic M. Calabro and Timothy E. Moore
Early in his first term, Florida Governor Ron DeSantis boldly declared that Florida would be the No. 1 state in the nation for workforce education by 2030. He and his colleagues in the Florida Legislature followed those words with action, making significant investments in education. -12, technical schools, and the Florida College System (FCS), a group of 28 colleges that graduate about 120,000 professional workers each year.
The flexible and affordable local pathways to career development offered by FCS are essential to the growth of Florida’s skilled workforce and enhancing the state’s attractiveness as a home to high-wage industries. As FCS colleges take charge of meeting the Governor’s 2030 goal, it is critical that they can retain and attract the best talent and identify more competitive ways of working.
Currently, hardworking FCS public servants do not have access to the State Group Insurance Program (SGIP), which provides attractive health insurance options for Florida workers or retirees. Unlike the State University System (SUS), which has had access to SGIP benefits since the 1970s, the approximately 20,000 FCS employees enrolled in employer health plans are not eligible to enroll in the low-cost, high-value health insurance program, leaving them with Huge burden.
That’s why, at the request of Indian River State College—a member of the FCS—Florida TaxWatch reviewed this issue in February 2023, using IRSC College as a case study.
FCS colleges must self-insure or self-finance using funds from their operating budgets. To help reduce cost, most FCS colleges insure under a group called the Florida College System Risk Management Consortium (FCSRMC) and many pay employee health care premiums. For example, an IRSC employee enrolled in a family health plan must additionally pay between $1,235 and $1,509 per month — between 225% and 275% more than the employee’s national contribution to an employer-sponsored insurance plan — for spousal and child coverage.
This cost is prohibitive for anyone, and beyond the reach of young professionals and low-paid employees who support their families. It has directly harmed FCS’s ability to attract and retain employees, an essential component of the governor’s office Focus on Florida’s future 2024 budget recommendations.
Not only does capital turnover at publicly funded institutions disrupt the delivery of educational services to Floridians, it also limits the return on investment of taxpayer dollars, as money is frequently spent on recruiting and training new faculty and staff.
Furthermore, a report from the Office of Program Policy Analysis and Government Accountability (OPPAGA) confirms that the high cost of health insurance also discourages FCS employees from enrolling in family plans. Although the composition and roles of FCS staff are similar to those used at SUS, only 25% of FCS health insurance enrollees choose a family plan compared to 61% of SUS health insurance enrollees. This disparity is not true – hardworking state employees in FCS should receive the same health benefits as all other state employees.
We applaud the Florida Legislature for following Florida TaxWatch’s recommendation by taking action. Last session – with the approval of Governor DeSantis, Senate President Kathleen Passidomo, and House Speaker Paul Reiner – the Florida Legislature appropriated $500,000 in non-recurring funds to the Department of Administrative Services to contract to conduct a comprehensive analysis to determine the financial impact and feasibility of SGIP expansion for Florida College System employees . The analysis was presented to government officials on December 1, 2023, putting the total first-year implementation cost at $372.4 million.
During the 2024 legislative session, as the Florida Legislature reconsiders SGIP eligibility criteria, it should consider the results of the analysis to wisely invest taxpayer dollars in FCS integrity in a way that ensures all state employees receive these benefits.
Dominic M. Calabro has led Florida TaxWatch’s global research team—the “eyes and ears” of taxpayers—as President and CEO for nearly 41 years of the organization’s existence.
Timothy E. Moore is president of Indian River State College, which serves more than 22,000 students annually throughout Florida’s Indian River, Martin, Okeechobee and St. Lucie counties.
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