School Budget Deficit

FROM ROSS NUNAMAKER

The Express-Times has an article and accompanying poll on the current budget deficit facing the school.

In the article it notes that the NASD is anticipating with state cuts they will be $2M short. To make up the first million they are looking to cut eight positions for a savings of roughly $800,000 (note this is salary plus cost of benefits).

The article also notes the NASD is asking teachers, custodians and staff to accept a one year salary freeze.

And, it states a new health care plan will result in an employee contribution of 12.5%, then 25%, then 37.5% and finally in year four 50% of plan costs.

The last item surprises me the most. I’m very surprised that the teachers union would agree to this plan. Yes, it is inline with what I’ve seen at some companies, but it is a huge change from past practice were there was little to no contribution from the employees. The benefits coupled with the 180 day work year are the reason the salaries appeared to be ‘small’ (ie starting teacher salary roughly $40-45,000 range).

This change may be larger than some realize. A typical family healthcare plan probably runs about $1400 per month, depending on the deductible. A single plan would obviously be lower. I also hope that they have offered high-deductible plans for younger, single employees, who rarely need to use the plan.

That being said, the NASD is going to have to take a hard look at its spending and will probably need to do so on a more granular level.

Posted via email from Ross Nunamaker

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