Teachers Propose to Share Insurance Pool With Other Districts

Unions representing teachers in Saline, Manchester and Lincoln hope to work with their school districts to form a larger health insurance pool that could save money for school districts while preserving a health insurance service that is popular with teachers.

Teachers’ union leaders say they’ve begun talking with representatives from the Michigan Education Special Services Association about finding ways to create larger pools, save on administration costs, and identifying other ways to save money.

According to Cheryl Call, president of the Manchester Education Association, the idea came out of discussions to create a county-wide health insurance pool. But that process isn’t moving fast enough for teachers in Saline and Manchester, according to Call.

“When the countywide talks began with superintendents and unit presidents, we discussed the concept of pooling the health insurance and superintendents were supportive. But that solution might be two years away,” Call said. “We can’t wait two years. We need something now.”

The contracts between the district and teachers union expires June 30 in Saline and Manchester. Lincoln and its teachers’ union have a contract that expires in 2013, according to Call.

Saline Area Schools passed a budget with a structural deficit of $1.5 million last June, borrowing from the dwindling fund balance to balance the books. The actual numbers are coming in worse than expected, with higher than expected costs and lower than expected revenues. The district expects to lose another $1.5 million in revenue next year because of falling enrollment. The district spent $4.5 million on health insurance for teachers last year. There should be savings of about $1 million in the next contract because of state legislation that will require the district to choose between an insurance plan that caps how much the district pays out or a plan that requires to pay 20 percent of the cost. But at the same time, retirement costs continue to rise.

Juan Lauchu, president of the Saline Education Association, said that forming a larger pool would provide savings and fall in line with Gov. Rick Snyder’s desire to see public sector consolidation.

Lauchu said the SEA has contacted attorney Gary J. Collins, hired by the district to handle negotiations with the district.

Collins said he’s had brief conversations with SEA leadership.

“I’m familiar with the concept, having worked on this in other counties. We’ll need to look at the details and see how the numbers actually float,” Collins said. “It’s an interesting idea.”

It's an idea that Saline Area Schools Board of Education President Lisa Slawson hadn't heard yet, as Friday.

"I can't comment on the idea because I've not heard anything about it," Slawson said.

Members of the SEA have expressed frustration at they see as the board’s unwillingness to communicate. At a board meeting in February, Lauchu asked to sit down and begin bargaining.

“My request to bargain a few weeks back was because no one from the board would sit down and (Superintendent Scot Graden) was not able to discuss or negotiate anything,” Lauchu said.

The board has directed all questions about negotiations to Collins, something Lauchu said he learned of from the news media.

“Not a single word, idea, or concept is discussed as teachers patiently wait and work to present opportunity to work together. Opportunity like this insurance pool,” Lauchu said.

The new board's budget subcommittee began meeting in February to being prioritizing for next year's budget.

Collins said a date for negotiations with the SEA would be set soon, perhaps after Tuesday night’s board meeting.

Collins said Saline Area Schools is in the same situation as most districts in the state.

“Schools have seen the state’s support for education decline as pension rates continue to go up,” Collins said. “So how can we restructure the costs to keep the same programs and keep our employees?”

Collins said it will be up to both parties to cooperate.

“Neither party can truly operate unless there is cooperation from the other party,” Collins said. “I’d liken both parties to an airliner that is running out of fuel. So what are we going to do about it?”