Saline Teachers Consider Opening Contract, Changing Insurance to Save Money for District

The Saline teachers union is asking its members to consider switching insurance plans to help the school district correct a structural deficit.

In June, the Saline Area Schools district Board of Education passed a 2011-12 budget that borrowed $1.3 million from the fund balance to break even. Some of that money will need to be repaid within 24 months in order to bring the balance to the board-mandated level of five percent of spending. The structural deficit exists even though the Saline Education Association re-opened its contract and gave back $1.5 million on concessions, the layoff of 18 teachers, cuts in programs and higher user fees.

The SEA contract with the district expires in June, and at least two candidates for school board in November’s election have publicly stated that teacher wages and compensation need to be addressed.

SEA President Juan Lauchu said the union is opening the contract to look at whether health insurance could help the district eliminate its structural deficit.

“We have decided to explore opening health insurance. I want to ask companies for bids. The SEA wants to be collaborative with the district and school board,” Lauchu said. “We’re trying to help.”

The SEA is surveying membership to determine where teachers stand on health insurance and what changes they would support. Based on that survey, the SEA’s health insurance committee will present the SEA with options during a Sept. 1 meeting. The SEA has tentatively scheduled a Sept. 8 vote on whether or not to open the contract. If the membership votes to open the contract, they will choose from two options, prepared by the SEA health insurance team, in another vote Sept. 12.

A vote to ratify any changes would take place Sept. 15.

Lauchu said he did not know what kind of savings might be realized, saying it could be anywhere from $100,000 to closer to $1 million.

Teachers are paying 10 percent of their health insurance this year. That number would increase in 2012-13 if, as expected, the state passes legislation requiring all public employees to contribute 20 percent of health care costs. The SEA currently has its insurance through the Michigan Education Special Services Association preferred-provider organization.

Efforts to reach Saline Area Schools Superintendent Scot Graden and School Board President Chuck Lesch were unsuccessful.