Latest news with #HouseBill2610
Yahoo
31-01-2025
- Health
- Yahoo
Independent pharmacies fight back as PBM reform gains steam
Blacksburg-area pharmacist Jeremy Counts, pictured on the projector screen, called in to the Sept. 16 meeting of the state's rural health care committee to talk about challenges independent pharmacies face. He highlighted that these pharmacists will serve the areas of the state that national chains sometimes won't. (Photo by Charlotte Rene Woods/Virginia Mercury) A bill to reign in pharmacy benefit managers (PBMs) faced early resistance in the General Assembly but is now picking up steam. After a House Finance subcommittee skipped a vote earlier this week, Del. Mark Sickles, D-Fairfax, called the bill 'controversial.' By Friday, however, it had cleared the full Finance committee and is now headed to the full House of Delegates for consideration. Sponsored by Del. Katrina Callsen, D-Charlottesville, House Bill 2610 is part of a bipartisan effort to increase state oversight of PBMs — middlemen who negotiate drug prices between health plans, manufacturers and pharmacies. Critics argue that PBMs operate with little transparency, making it unclear how much of their negotiated savings actually reach consumers. Callsen's proposal would eliminate health-plan-run PBMs in Medicaid and establish a single state-contracted PBM, a move supporters say would improve accountability, lower costs, and help independent pharmacies to stay afloat. A companion bill by Sens. Aaron Rouse, D-Virginia Beach, and Travis Hackworth, R-Tazewell, is advancing in the Senate. Branded the 'Save Local Pharmacies Act,' the legislation is seen as a lifeline for small, independently-owned pharmacies. Hackworth, a former local pharmacy owner, knows the struggle firsthand. 'I know what it's like to spend $10 to make $5 back from Medicaid,' he said. Independent pharmacists across Virginia are rallying behind legislation to reform PBMs, arguing the change is critical for rural healthcare access. Blacksburg-based Jeremy Counts and Cumberland-based Kim Wright have been vocal in their support, attending rural healthcare committee meetings last summer to highlight the role independent pharmacies play in communities where national chains are absent. 'We're the first line,' Counts told The Mercury, emphasizing how local pharmacies serve as key access points for prescriptions, vaccines, and physician consultations. But with both national and local pharmacy closures on the rise, he warned of worsening 'pharmacy deserts' and patient access issues. Gov. Glenn Youngkin's administration initially raised concerns that the proposed single PBM system would exclude current providers. In response, lawmakers amended the bills to allow existing PBMs to apply. Meanwhile, the Virginia Association of Health Plans cited a study estimating the transition could cost $17 million in administrative expenses. Supporters counter that those costs pale in comparison to potential savings. Rouse noted that Virginia could save about $39 million annually, pointing to Kentucky and West Virginia, which saved $56.6 million and $54.4 million, respectively, after passing similar laws. Callsen defended the proposal, stating, 'It's just a question of when those savings are realized when we put it into place.' With the legislative session hitting its midpoint, bills still must clear both chambers before heading to Youngkin's desk for a final decision. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
31-01-2025
- Business
- Yahoo
Isaac Elementary can now pay employees through the end of the school year, receiver says
Isaac Elementary School District employees received their overdue paychecks Friday after experiencing a week of uncertainty amid the school district's financial crisis. The news came after the school district approved a deal with the neighboring Tolleson Union High School District, which agreed to essentially loan Isaac Elementary $25 million to keep its doors open. The agreement with Tolleson Union, along with other funds that have been recovered, means Isaac Elementary will be able to cover all of its payroll and operating expenses through the end of the school year, according to Ryan Anderson, general counsel to J.S. Held, a consulting firm that was appointed by the State Board of Education to take over the district and resolve its financial crisis. "With this emergency funding issue resolved, we will re-focus on the much needed cost cutting measures and looking to liquidate assets to resolve the financial issues at Isaac," said Keith Kenny, a director at J.S. Held, in a statement. Kenny can now do this work "without the looming threat of an immediate closure" of the district, Anderson said. Andrea Valencia, an Isaac Elementary kindergarten teacher and the president of the Isaac District Education Association, a union representing Isaac employees, said in a statement that the week "took a toll on our educators and our community." But, she said, "We stood together because we knew we couldn't let these schools fail." "I couldn't be more proud of our members for showing up for our students but also for pressuring their elected leaders to keep Isaac schools open," Valencia said. Isaac Elementary's agreement with Tolleson Union came after the Maricopa County Treasurer's Office said it would no longer honor any of Isaac Elementary's expenses until the district could pay its debt. The district owed Maricopa County $28.5 million that, as of last Friday, it had "no clear plan to repay," according to Maricopa County Board of Supervisors Chairman Thomas Galvin. That meant Isaac Elementary could not access funds to cover payroll. The district, which serves about 4,800 K-8 students in Phoenix, was placed under receivership by the State Board of Education two weeks ago after it had overspent its budget by millions. The majority of its students are low-income, and many are English language learners. Some relief came when the U.S. Department of Education agreed to return $6 million in pandemic relief funds to Isaac Elementary, which had inadvertently forfeited the money after failing to submit a required report on time. That money went toward the district's debt with Maricopa County. Then, it appeared support would come in the form of legislation. Rep. Matt Gress, R-Phoenix, introduced a bill that would have directed Maricopa County Treasurer John Allen to issue $2.5 million to cover one payroll for the school district. That money would have been an advance on Isaac's basic state aid. But after House Bill 2610 was unanimously approved by the House Education Committee on Tuesday, it stalled, as financial support appeared to be on the way from Tolleson Union instead. On Wednesday night, the Tolleson Union Governing Board approved a resolution that would authorize the district to enter into a $25 million leasing agreement with Isaac Elementary. Tolleson Union had funds it could use to help Isaac Elementary, and Governing Board President Leezah Sun, a former Democratic representative in the Legislature, said it was a "win-win situation." What had been offered so far by the Legislature was not enough, she said. "The issue at hand is the time sensitivity to rescue 5,000 children," Sun said Wednesday. At that point, Isaac Elementary employees had already worked for a day without pay, and it was not clear the district would be able to remain open without an immediate influx of cash. Under the agreement, Isaac Elementary will lease the ground under Isaac Middle School to Tolleson Union, which will then lease back the use of Isaac Middle School to Isaac Elementary for the term of the agreement. Isaac Elementary must repay the $25 million, with a 6% interest rate, within five years. An earlier version of the agreement had a repayment term of 12 years. The repayment duration was revised to avoid potential legal challenges under a state statute relating to the investment of public funds, according to Joseph Ortiz, a spokesperson for Tolleson Union. On Friday, Gress, the chairman of the House Education Committee, said in a social media post that he was relieved that thousands of kids would "not be turned away from school." But he said he was "deeply concerned that these two school districts have engaged in a highly unusual and potentially unlawful financial transaction that has made an absolute mockery of school finance." The House Education Committee was "carefully reviewing the details of this agreement," Gress said. Tolleson Union Superintendent Jeremy Calles said Wednesday that the agreement had been reviewed by several attorneys. The Arizona Attorney General's Office reviewed the agreement and had no objections to it, said spokesperson Richie Taylor. Gress' bill to advance $2.5 million to the district would have also removed the district's Governing Board members from office and put measures in place to fire the superintendent, chief financial officer and Governing Board members of school districts placed under receivership in the future. He previously said that more reforms would be needed before the Legislature could provide additional financial support. Isaac Elementary's superintendent and chief financial officer have resigned. Marisol Garcia, an Isaac Elementary teacher and the president of the Arizona Education Association, said in a statement on Friday that the crisis was resolved "because Isaac educators spent their working hours making sure their students were in a safe environment to learn while spending early mornings and late nights pressuring their elected leaders to solve a crisis that someone else created." On Thursday, two days after the district missed payday, the Arizona Education Association handed out $15,000 in gift cards to Isaac Elementary Staff to cover emergency needs. "Our members went into work every day not knowing when they would get paid or if schools would be open beyond this week, but they knew how important it was for the future of this community and so they showed up for their students," Garcia said. Tomasa Acosta, parent of an Isaac Elementary eighth grade student, said the week had been hectic, stressful and disappointing. Though she said she was grateful that teachers could be paid through the end of the year, Acosta worried that after that, the district would be in limbo. She said she was concerned about potential staff cuts and school closures, even though her child will have graduated from the district by then. "Who is going to be laid off? Which schools are going to be open?" she said. "I'm going to be affected as a community person." Acosta also said she hoped everyone involved in the financial crisis would be investigated. "I just want justice for our students, and they deserve that," she said. In a statement, Arizona Superintendent of Public Instruction Tom Horne said he applauded teachers' "patience and heroism in continuing to do their jobs this week." Arizona Attorney General Kris Mayes said she would investigate Isaac Elementary's financial mismanagement. Reach the reporter at mparrish@ This article originally appeared on Arizona Republic: Isaac Elementary's financial crisis resolved after district approves deal
Yahoo
31-01-2025
- Business
- Yahoo
Isaac Elementary staff to keep working Friday, hopeful for paychecks
Isaac Elementary School District educators opted Thursday night to continue working Friday, hopeful they would receive paychecks after not being paid so far this week amid the district's financial crisis that led to its takeover by the state. Their payday was scheduled for Tuesday. "We were extremely hopeful that we would be paid today," said Marisol Garcia, an Isaac Elementary teacher and the president of the Arizona Education Association, a statewide educators' union. On Wednesday night, the Tolleson Union High School District's Governing Board approved a deal with Isaac Elementary that would essentially allow the neighboring high school district to loan Isaac Elementary $25 million. By Thursday afternoon, the transaction had taken place, and all requested documents had been sent to the Maricopa County Treasurer's Office, according to Tolleson Union spokesperson Joseph Ortiz. But by 5 p.m. Thursday, Garcia said, Maricopa County Treasurer John Allen had not yet greenlit the payroll checks. "Nobody understands why we're still waiting for him," she said. "There's money in there to spend. I'm not sure what the treasurer's waiting for." The Maricopa County Treasurer's office did not respond to a request for comment Thursday. More than 300 staff members deliberated Thursday evening, Garcia said, over whether they should return to work Friday. Garcia said they were "significantly traumatized." "There was a lot of emotion, tears," she said. The Arizona Education Association passed out $15,000 in gift cards Thursday — raised by donations from other state and local unions, along with individuals — to make sure staff could buy food and gas, Garcia said. "The feeling is extremely tense on what may happen tomorrow if they are not paid," Garcia said. She added that several staff members were interviewing for other positions and "intend on leaving the district." "These folks are living off $50 gift cards right now," she said. "It's pretty humiliating." Still, they planned to return Friday and would be "monitoring the process of getting checks printed" and handed to employees, Garcia said. Meanwhile, legislation that would advance $2.5 million to the district has stalled after passing the House Education Committee earlier this week. House Bill 2610, introduced by Rep. Matt Gress, R-Phoenix, would direct Allen to issue funds to cover one payroll for the school district. The money would be drawn from Isaac's basic state aid. Garcia said Thursday that she was disappointed that the bill had stalled. Isaac Elementary, which serves approximately 4,800 students in Phoenix, was placed under receivership two weeks ago by the Arizona State Board of Education because it had overspent its budget by millions. Last week, the district's superintendent and chief financial officer resigned. According to Maricopa County Board of Supervisors Chair Thomas Galvin, the district owes the county $28.5 million. The county has said it would not provide any more funding for the district's expenses until the district could demonstrate the ability to pay back its debt, leaving the district without cash to fund operations. The U.S. Department of Education agreed to return $6 million in pandemic relief funds that the district had inadvertently forfeited, and the Treasurer's Office said that money would go toward Isaac Elementary's debt. Arizona Attorney General Kris Mayes has launched an investigation into the financial mismanagement at Isaac Elementary. Getting help: Tolleson Union will transfer $25 million to ailing Isaac Elementary Reach the reporter at mparrish@ This article originally appeared on Arizona Republic: Isaac Elementary staff to keep working Friday, hopeful for paychecks
Yahoo
28-01-2025
- Business
- Yahoo
Arizona Legislature takes first steps to keep Isaac school district open
Arizona Legislature has taken the first step to keep the Isaac Elementary School District open for two weeks amid the school district's financial crisis that has left it insolvent and unable to pay employees. On Tuesday, the House Education Committee unanimously approved a bill, introduced by Rep. Matt Gress, R-Phoenix, that would direct Maricopa County Treasurer John Allen to issue $2.5 million to cover one payroll for the school district. The money would be an advance on Isaac's basic state aid, according to the bill, House Bill 2610. The bill would also remove the district's school board members from office. According to Gress, Maricopa County School Superintendent Shelli Boggs was working on having appointees ready to replace the school board members quickly after the legislation was signed. The Isaac Elementary School District, which serves approximately 4,800 students in Phoenix, was placed under receivership two weeks ago by the Arizona State Board of Education because it had overspent its budget by millions. Keith Kenny, a director at the consulting firm J.S. Held, now oversees the district's operations. Last week, the district's superintendent and chief financial officer resigned. According to Maricopa County Board of Supervisors Chair Thomas Galvin, the district owes Maricopa County $28.5 million. The county has said it will not provide any more funding for the district's expenses until it can demonstrate the ability to pay back its debt, leaving the district without cash to fund operations. "The conduit by which Isaac receives its income and pays its expenses has been completely shut down by the Maricopa County treasurer," said Ryan Anderson, Kenny's general counsel, in a statement. Anderson said they were aware of and supported legislative efforts to unlock previously approved state aid to Isaac. If legislative efforts failed, Kenny would "likely need to temporarily close" the school district, Anderson said. Kenny said there was a pathway to solvency for Isaac Elementary. "I just need time to continue school operations and keep the children in the classroom," he wrote in a statement. On Monday, Arizona Superintendent of Public Instruction Tom Horne announced the U.S. Department of Education agreed to release $6 million in federal pandemic relief funds the district had previously forfeited after failing to submit a required report on time. The Maricopa County Treasurer's Office, however, said that money would go toward paying off the district's debt. Gress said he anticipated his emergency legislation would be signed into law by Gov. Katie Hobbs by Friday. Payday, however, was Tuesday, and the district "doesn't have access to cash to run the payroll," he said. Andrea Valencia, a kindergarten teacher in the district, told the House Education Committee during its Tuesday meeting that she, her students and colleagues could not "live in this uncertainty." "I cannot do my duty and provide an education to my students living through this instability because today, I did not get paid," Valencia said. "My colleagues, cafeteria staff, janitorial staff ... we did not get paid." On Tuesday morning, a district spokesperson said she could not confirm whether employees would be paid on time this week. The Arizona Education Association, the union representing educators across the state, released a statement Tuesday morning saying, "Getting paid this week is an absolute necessity, but educators can't do their jobs — making lesson plans, going on field trips, coaching sports, hosting after school events — that are essential to students' learning if no one knows what will happen next week, let alone the rest of the year." Though the bill was approved unanimously by the House Education Committee, some Democratic representatives said they were concerned it did not do enough to help the district. Gress said that additional reforms are needed before the Legislature provides more support to the district. "If we're going to finance the rest of the school year at Isaac, there needs to be a larger conversation about the future of Isaac," he said. But he promised another bill that would keep the district open for the remainder of the school year. 'I recognize that this does not solve the full problem of operating Isaac' for the rest of the year, Gress said. 'I commit to all of you that we will get another bill that will provide financial certainty for the rest of the school year. We cannot, and we will not let the Isaac Elementary School District shut its doors this school year.' Tomasa Acosta, a parent of an eighth-grade student in the district, said Tuesday that she had already requested the paperwork, including grades, necessary to enroll her child elsewhere out of fear that if Isaac's schools shut down, no staff would be available to provide the information. She said she had already identified the district where she would transfer her child in a worst-case scenario, the Glendale Elementary School District, where she was formerly a teacher. Despite Gress' bill, Acosta said that if she were a staff member in the district, she would "start looking for a job somewhere else. If they need to pay rent, if they need to pay utilities ... that's a big shock," she said. Even if Gress' bill passes, just one guaranteed paycheck leaves uncertainty, she added. As of early Tuesday afternoon, Acosta was waiting to see what happened Wednesday, the first day after payday, before making decisions about her child. If some teachers didn't show up, she said, class sizes would be higher, and "it's going to be a mess." Republic reporter Laura Sepulveda contributed to this report. Reach the reporter at mparrish@ This article originally appeared on Arizona Republic: Arizona Legislature takes step to keep Isaac school district open
