TONAWANDA CITY SCHOOLS
Health care re-emerges as Tonawanda schools budget hurdle
Administrators in the Tonawanda City School District acknowledge that they thought health insurance plans were settled when they approved several union contracts over the last year.
That was, until an Independent Health representative informed them that employee deductables and premiums would increase this year for the district.
Assistant Superintendent of Finance Peter Michaelsen revealed the development to the School Board and the district’s budget advisory team Tuesday night.
As a rule, the district negotiates multiyear health insurance packages with Tonawanda’s four unions for a three-year contract, so Michaelsen knows how much to budget in the future.
The district consolidated its health insurance plans into one carrier three years ago. Independent Health, the district’s single carrier, informed the district over the holidays that insurance costs would increase by at least $144,000 beyond the original contracted amount.
“That’s why it was so shocking to us,” said School Superintendent Whitney Vantine. “Now we have to go back to the four different bargaining units.”
While Independent Health is still determining the exact amount of the increase, which would be effective during the 2009-10 school year, Michaelsen said he might consider negotiating with other insurance providers.
“This is a work in progress, and it’s unacceptable as is,” he said. “I do remain optimistic that we can save money. It’s just a matter of getting all the stars . . . aligned.”
The School Board and the budget advisory team, which includes teachers, parents and members of the community, discussed possible solutions to the health insurance woes.
To increase district bargaining power, some suggested joining with other entities such as the City of Tonawanda or the Erie 1 Board of Cooperative Educational Services Health Benefits Plan Trust in negotiations with insurance carriers.
“This has a tremendous impact on many people,” said Mickey Shaw, Tonawanda teacher and member of the budget advisory team.
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