District was able to save more than $800,000 by switching providers
By Jennifer Eisenbart
Staff writer
When the Burlington Area School District balanced its budget for the 2011-12 school year, it nearly had its plans upended by residents complaining about the 3.69 percent tax levy increase.
Now, some people are upset that the district appears to have found a way around requiring teachers to pay 12 percent of their health insurance premiums as outlined in the budget repair act put forth by Gov. Scott Walker.
The district found significantly cheaper health insurance for its employees for the school year and decided not to require teachers to make premium contributions this school year.
How did they do it? In using the cheaper insurance provider, the district was not required to force employees to pay 12 percent of their premiums as outlined by the new law impacting public employees.
District officials believed it was an ideal way to save money and not have to saddle their employees with new premium payments at the same time they were being asked to make new contributions to their retirement funds.
BASD Business Administrator Peter Smet said Tuesday that there is a loophole of sorts – the 12 percent is only required of public employees who use the state group health insurance plan offered through the Wisconsin Education Association Trust. Since BASD is using a different provider, the 12 percent premium contribution is not required.
“There is no regulation for public employees who are not on the state plan,” said Smet. “That’s a different insurance plan. The state plan is a specific state plan … administered by the Department of Employee Trust Funds.
“We’re not in that state health plan.”
State Rep. Samantha Kerkman confirmed that information Tuesday afternoon.
“They don’t have to (require the 12 percent payment),” Kerkman said. “(But) they can.”
However, that comes as news to several area residents – many of whom seem to still be stinging from the fact that they are already going to be paying more in taxes for public education.
In a letter to the editor this week, Sharon Asher urges the district to require the 12 percent anyhow, and for people in the area to contact legislators to close the so-called loophole.
“I do not think 12 percent is outrageous,” Asher said in her letter. “But zero percent surely is.”
Asher also outlined in her letter that the district saved $806,777 in medical insurance costs, and felt BASD could have – and should have – done more. She added that other school districts in the area did take that 12 percent requirements.
Asher didn’t know the school districts offhand.
According to numbers provided by the school district, the premium cost for a single employee’s health insurance is $6,312.72 per year – which, at 12 percent, would require that person to pay $63.13 a month.
For a family plan, the total premium cost would be $17,675.64, with a 12 percent payment of $176.76 per month.
However, the district knew during the budget process that it was not asking for premiums to be paid, and stated it.
The premium costs, according to Smet, dropped about $3,000-$4,000 per person, and the district saved close to $1 million in health care costs.
As a result, he defended the choice that was made to gradually requite the teachers to pay more toward their premiums rather that bearing the brunt of the full 12 percent at once. Teachers were already paying their Wisconsin Retirement System (WRS) contributions as the law outlined, so the decision was made to go with cheaper health insurance – and not ask for premium contributions, at least not yet.
“That was part of the discussion,” Smet said. “Since we had made such a significant adjustment … that would be the initial change.
“Other changes would have to be dealt with in future years.”
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This is outrageous.
Increase our taxes, we have to find the money even though we have increases in other expenses as well. Our insurance for family coverage through our work is $190 bi-weekly, or approx. $411 per month. I would love to only pay $176 per month, or better yet $0. I guess an unexpected increase in property taxes is okay since I am not a teacher making $45,000 to $85,000 per year. I guess my $35,000 per year is okay to have those unexpected taxes.
Of course I have a company paid pension, not, I contribute into that as well and always had to.
What is funny Scott is these people are offended that you think like that. I too pay about $360 a month for health insurance and contribute to a 401K. I have a decent wage and I like my job but then again I work all year. These people are outraged they have been required to contribute to their pension which is much,much better than any 401k. I’m sure even the health insurance that they do not contribute to is considerably better than ours. For Mr.Smet to think it is fair to pass along a tax increase so as not to burden teachers even more is ludicrous. $63.13 a month would be nice. They all live in fantasy land and tax money is one big free pot.
It’s unfortunate that individuals find it necessary to describe teachers (or any other group) as “these people,” as though they are somehow separate from the rest of us. It’s unfair to assume that teachers are “outraged” about being required to contribute to their pensions and health insurance. Many teachers (including one in my family as well as the others I know) certainly understand the necessity of doing so.
You should not assume that “these people” don’t work all summer, either (some of them DO work during the summer on committees or getting ready for the fall!) How many of us stay up late grading papers, creating lesson plans, writing committee reports, returning emails from students and/or parents or worrying about how to help individual students be more successful academically?
The unfortunate fallout from these persistent negative attitudes is that fewer young people will pursue careers in education. Why should they bother if they know they most likely won’t be respected?
I don’t know anyone who got into teaching because of the hours and benefits – the teachers I know did so because they were inspired by their own teachers, they love to learn and are passionate about passing that love and their skills to the next generation.
Keep in mind that “those people” are also your neighbors – and they are teaching your children, grandchildren and, if you’re really lucky – your great-grandchildren as well.
Education is an investment, not a competition about who has and who doesn’t. We all make choices in our lives: marriage, children, jobs, and we need to take responsibility for those choices. It’s not productive to point fingers and complain that someone has more than I do. Of course someone does. That’s the way of the world.
Most people learn that in kindergarten.
I think myself as well as many others lost alot of respect when they decided to take sick days and pollute the capitol building.
Beating drums and acting like delinquent children doesn’t help.
I myself had absolutely no problem with “these people” up until around February. When they were faced with what the rest of the taxpayers have been dealing with they just couldn’t handle it.
When unemployment is high tax revenue goes down, when tax revenue is down the magic pot of money isn’t so big anymore. Something needed fixing and it got fixed, well almost maybe not in Burlington’s case.
Christine i think you need to at least re-read my post. I do not see any finger pointing here at teachers.
My frustration was with the Administration that chose to state that the burden should not fall on teachers since they have now have to contribute to Pension and Health Insurance.
From a taxpayers perspective this should have happened a long time ago. The school board agreed to pay the EMPLOYEE PORTION for the teachers. The teachers have always had their portion but always were able to avoid it. Very few private businesses operate like this. Very few private businesses cover 100% of health insurance. Private businesses would see a savings of health insurance by switching to another company as something good and would not than turn around and say, “Hey we saved money our employees don’t have to pay anything.” They also would not increase their product cost to the consumer.
As you can see the administration is going that, THEY DO NOT CARE about the taxpayer burden’s. And for the record I know teachers also that are in it for the children and are shocked they do not have to pay more even with the burden. However, why would they object when it is to their benefit.
If My employer gives me excellent benefits I would not refuse. The difference is the company would go out of business the School District just hits up the taxpayer to help.
ANY cost savings that does not benefit the children should be given back to the taxpayers to reduce to taxes.
I am glad to see BASD find a way to avoid having to force a 12% cost share onto staff. As a district resident I’ll also be seeing a slight tax increase, which I’d rather not see but understand its necessity. Why not work toward a future where all our citizens are covered by a health and benefit package tied to the employee/employers tax contributions for a non-for-profit system that rewards results instead of treating symptoms and cost vs. benefit. Sounds like Socialism? The Veterans administration has reworked the system in order to provide the best possible treatment to each soldier in need. Should we tell all our kids to enlist in order to ensure their healthcare is adequate? Government may be the problem, but regulations are necessary to provide and protect the individual. It’s time to restate some of the kinds of programs and regulations that will prevent further erosion of the middle class and our children’s future. The trick is how to do it effectively and timely without causing the unintended consequences of overreacting. Long term planning doesn’t seem to get much traction in a sound bite culture.
The school board obviously did NOT listen to the people of this community at their “hidden” and “non-published” meetings that were held. WE SHOULD NOT RE-ELECT THEM! As for Smet – he needs to resign for supporting such a sham!
I don’t think that the teachers fully understand the way the real world works. Maybe they should come work my job for a year, pay what I pay in health insurance ( I have a deducatable of $6,000 before my insurance will even kick in at 80%). Contribute to a 401K that is rapidly decreasing (this is all my monies, not something someone else has put money into for me), work ALL 52 weeks a year, no half day, no spring break, Christmas break (OH wait we can’t say Christmas),and NO SICK DAYS!!! I have to hear from my children that THEY are required to help their peers with the homework and then if the child does not get it they can go to the teacher for help. Please if I would pass my responsiabilities on at work I would be let go. Believe me I know teachers work hard, but please don’t tell me that I should feel sorry for them because they have to grade papers at night!! I drive an hour to work, work 8 1/2 hours drive an hour home, make dinner, do homework with my kids, make lunches, laundry, put everyone to bed and then guess what? I get to log on to my computer and do what I did not get done at work. So I usually put in 12 hours a day of work! So feel sorry for the teachers that grade papers? Please!!! Come walk a mile in reality and see how it feels!!!!!
Ohhh on top of that I pay daycare those 52 weeks a year, no summers off! And I know a lot of teachers that do take the WHOLE summer off.