Durango School District 9-R Board of Education voted unanimously this week to decline participation in Colorado’s Family and Medical Leave Insurance (FAMLI) Program.
In declining participation, board members said the district would need to add an employee to administer the program. They also said employees can self-enroll in the plan through the Colorado Department of Labor and Employment.
The FAMLI program was approved by Colorado voters in November 2020 as part of Proposition 118.
Colorado’s FAMLI program ensures all Colorado workers have access to paid leave in order to take care of themselves or their family during life circumstances that pull them away from their jobs.
People can use FAMLI for instances such as care for a new child, care for themselves, care for a family member’s serious health condition, making arrangements for a family military deployment or addressing safety needs, and the impact of domestic violence or sexual assault.
Employees who are eligible for paid leave are those who have earned at least $2,500 in wages over a one-year period. Both employers and employees will contribute to the program. Employees will designate 0.45% of their wages and employers will provide a matching amount.
Private entity employees are automatically enrolled in the program unless their employer offers a privately funded paid leave plan.
However, FAMLI affects government employers differently than private businesses. Government employers have the ability to opt out anytime during 2022. They must vote and notify the FAMLI division of the Colorado Department of Labor and Employment by Jan. 1 to avoid being responsible for premiums in 2023.
Government entities like school districts, have the ability to decline employer participation, decline all participation or participate in the FAMLI program.
With the board’s decision to decline all participation, 9-R employees still have the option of self-selecting FAMLI coverage. However, unlike private employers, government employers do not need to have an equivalent paid leave plan in place.
School district employees can register in the FAMLI system like an independent contractor to report their wage data and pay their quarterly premiums.
If the district had declined employer participation, it would be responsible for managing and administering employee accounts rather than it being operated through the FAMLI Division. However, the district would not have to match the 0.45% of the employees wages for the premium.
Board member Rick Petersen said the district’s Human Resources Department suggested the board decline all participation in FAMLI. He said having the program facilitated through the school district has an advantage to employees but his concern was with how much it would cost the district.
“We would have to increase staffing in finance and HR right now to administer the deductions and do the reporting,” said Director of Finance Kira Horenn.
Board member Erika Brown said when the district surveyed staff members, 57% said they wanted the board to at least allow employee participation.
“It is a benefit that our staff is looking for,” Brown said. “While we do offer great leave and benefits to our staff, we received an email today from a staff member urging us to pass it without the employer part because of all the benefits it provides that we do not include.”
Petersen agreed with Brown about employee access to benefits but noted employees can still register for the FAMLI program through the state rather than it being administered through the school district.
Board President Kristin Smith said it would be easier for employees if the school district administered the FAMLI program because employees could go to human resources for help applying for the program rather than going through the state’s application process.
However, she argued that the district should focus on how it can raise salaries and wages rather than investing more money in hiring staff to facilitate the FAMLI program through the district.
“We’re always looking at how we can benefit actual salaries or wages with whatever extra money we have,” Smith said.
Brown agreed with finding a way to increase salaries but said the cost for managing the program was relatively low compared to the benefit it could provide if the district decided to decline employer participation rather than all participation.
“We can’t afford to give that kind of leave on our own if this wasn’t a statewide program, and so I lean toward providing extra benefits to our employees,” Brown said.
The FAMLI program offers employees up to 12 weeks of paid family or medical leave.
Horenn said the district’s finance staff does not have the capacity to administer the program and would have to hire an additional employee to do so. Galido estimated that would cost the district an additional $27,000 per year including benefits.
9-R Superintendent Karen Cheser pointed out that the district has two open positions in finance that the district has been struggling to fill.
“Almost all school districts across Colorado right now, finance staffing has been extremely hard to fill,” Horenn said.
After further discussion, all four board members voted in favor of declining all participation in the program.
“I do support what this program is trying to do, but as a government entity our funding is just lacking,” Stewart said.
tbrown@durangoherald.com
