BASD budget compromise leaves both sides wanting
By Jennifer Eisenbart
Staff writer
The Burlington Area School District’s Board of Education managed to pass its 2012-13 budget Monday night.
Whether it will stand up to the kind of brutal scrutiny that was exhibited at last August’s annual meeting remains to be seen.
With new board members Phil Ketterhagen and Roger Koldeway both objecting to the health insurance plan chosen by the district, the board approved the budget by a 4-2 vote.
Ketterhagen and Koldeway both voted no, and board member Rosanne Hahn abstained because she takes part in the district’s health insurance as a retired teacher.
Predictably, the budget’s supporters felt the budget played out as well as it could, while its detractors said it didn’t do enough to utilize all of the tools Gov. Scott Walker put into place last year with Act 10.
“We worked through a very, very difficult budget scenario,” said BASD Assistant Superintendent and Business Administrator Peter Smet. “It involved a lot of cuts and a lot of compromises.
“We came to a place that probably no one’s happy with,” he added.
Insurance a hot topic
Ketterhagen and Koldeway both voiced two things they promised to address when they were elected in April – to require teachers to pay a portion of their insurance premiums, as well as a zero percent tax levy increase.
In fact, Koldeway wanted to add an amendment to the budget that would require teachers and administration to pay 12.8 percent of their premiums as well as no wage increases for this budget. The result, Koldeway said, would be a zero percent levy increase and no use of the fund balance.
“It would take away taking money out of the fund balance,” Koldeway said. Later, he added, as he had numerous times in the past two weeks, that the current budget “kicked the can down the road” by utilizing fund balance.
The current budget is factoring in a likely 2 percent raise for teachers, as well as the proposed two-tier health insurance plan. That plan would have a high-deductible ($1,000 single, $3,000 family) plan as its first option, with an availability to “buy up” to the current plan with much lower deductibles if employees pay the difference in premiums – which works out to roughly 12 percent.
That wasn’t enough for Koldeway or Ketterhagen, who argued that the private sector has been paying much more for longer and that the school district’s staff and administration should have to work with the same expectations as the private sector.
“We worked hard in getting these budgets,” said Ketterhagen. “But we have not looked at the contribution that Act 10 allowed us to look at.”
Ironically, Ketterhagen did not voice objections to the two-tier health insurance plan when it was discussed in May. Instead, he seemed to indicate at the time that the high-deductible plan was an acceptable balance – and that the premium contribution on the upgrade would be enough.
Ketterhagen also took exception to the discussion on health insurance costs being cut off at the committee level last week when board member Bill Campbell called the vote in order to end what had been a circle of arguments up to that point.
No one was cut off this week. In fact, everyone got a chance to speak at least once, and in some cases, two or three times.
Savings defended
But other School Board members look at the problem from different viewpoints than Ketterhagen and Koldeway. Others contend that by aggressively pursuing other insurance options, the district has saved around $2 million in switching health insurance carriers last year, and will save close to another $1 million this year.
“We’ve made some major changes in health insurance the last few years,” said board member Larry Anderson, who also brought in rate sheets showing just how low Burlington is compared to surrounding communities – and that Wheatland K-8, Randall K-8 and Union Grove and Wilmot Union High School districts did not require employee contributions for cheaper insurance, either.
By using the high-deductible plan, Anderson argued, as well as cutting costs, the district has more than met the obligation in cutting insurance costs.
“You weigh all these factors in, I think we’re putting ourselves in a non-competitive situation with other school districts in terms of asking teachers to do more,” he explained.
BASD Superintendent David Moyer also argued that the district had already reduced expenditures by $1.5 million this year on top of a cut of $1.3 million last year. The plan this year to use a portion of the fund balance was anticipated in because of the expected cut in state aid.
“We tried to educate,” Moyer said. “That doesn’t change people’s opinion about it.”
Frugal history cited
Board President David Thompson stressed that the board has always been fiscally conservative, pointing to the under-levying that the district has done in the past. As a result, the district has had to utilize the fund balance at times.
He also said, in regard to the health insurance question, “I don’t feel it’s appropriate for the board to go to the maximum on the teachers just because we can.”
Ketterhagen then argued that the teachers aren’t being hit that hard – especially with the average salary being more than $60,000 in the district.
“I don’t think we’ve stressed the staff that much,” he said.
Detractors to that idea, including Anderson, said that teachers are already paying money out for the Wisconsin Retirement System, as well as money for co-pays and deductibles. Also, in past meetings, the wage average has been pointed out to be high because of the previous system of determining pay – by experience and education, and that will likely be changing.
Thompson called first for the vote on the amendment requiring the 12.8 percent premium contributions and the pay freeze, which was voted down 4-2 – the two aye votes coming from Ketterhagen and Koldeway.
The board then voted on the budget.
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Wow They still don’t get it. Proud of how they made big changes and did save some money. Guess what you could have saved alot more but didn’t. Their pension is not even comparable to the typical private employees yet they still whine about now having to contribute to that. The new health plan presented is still better than most in private but that was hard to swallow also?
The goal is not to make sure we spend as much as these other districts either. Eventually this board will even out with more people like Koldeway its just a matter of time.
Hopefully the board can get rid of the two clowns named koldeway and ketterhagen. All they are there to do is cause trouble, look at Ketterhagens past performances on the town board…..
Kudos John, spot on!
Ketterhagen nd Koldeway keeps citing that the private sector workers have to contribute more to their health insurance. The private sector also gets to adjust the rate that they charge customers to offset this. Have lawyers, plumbers, electricians, or other general contractors lowered their rates in this tough economy? Have gas and food prices dropped in this economy? Nope. The plumber that came to my house was charging $85/hr. Since there were two plumbers there, $170/hr. The exterminator who travels to my house notified me that his prices were going up to help offset additional expenses that he was incurring. Public workers do not have the option to set the rate that they are paid for their service. Their salary and benefit had always been set by negotiation. If those negotiations failed, then they went to arbitration. I am sure if a teacher could charge $85/hr they would be more than happy to pay a larger portion of their benefit package. I have shopped around for health care coverage for my family, the high deductible plan looks very similar to plans that are available to anyone. The ones I was quoted were from Blue Cross/Blue Shield. Perhaps these private sector workers need to start shopping around for more affordable coverage than they are currently getting instead of sitting around pointing blame at others.
“The private sector also gets to adjust the rate that they charge customers to offset this”
David has never heard of taxes which is a rate increase at gunpoint, nor of the free market where rates are kept in check my competition. My guess is David’s last name is Moyer.
“We tried to educate,” Moyer said – that just about sums up short life of a bulb that wasn’t that bright yet wasted alot of our resources.
I’m so tired of the conservatives in town trying to place all this crap on the back of the school district employees. There are, what, like 400 teachers in the district? The district lost $2.4 million in aid. Koldeway and Ketterhagen want that cost directly placed on the back of the teachers and administration. Yeah, I’m a private sector employee, and yeah, my benefits cost me money. That was my choice. Teachers choose to be teachers because of good pay and good benefits. And suddenly, in spite of the fact that they WILL be paying more money out of pocket – which everyone seems to be ignoring, HELLO, a $3,000 deductable for a family pans out to about $250 a month, and if you buy up to the other insurance, you’re paying about 12 percent of your premium – AND they won’t even be getting a cost of living increase.
Koldeway and Ketterhagen keep twisting the facts around so conservatives hear exactly what they want to hear. That so-called $60,000 average salary that keeps getting thrown around? The ONLY reason that number is so high is because of the steps and lanes process, which won’t even be USED anymore because of the Act 10 changes.
Let’s face it: for better or worse, Scott Walker asked school districts to bear the brunt of the cuts he had to make to balance the budget. Burlington Area School District took most of the tools he made available – including finding cheaper health insurance that has saved the district more than $2 million in costs so far – and made its budget WORK.
Oh, and for those of you doubting teachers will actually leave? Guess what: they’re already talking about it. Working in an environment where a group of people want nothing more than to target YOUR profession and YOUR way of life makes people want to do that, ya know? Conservatives better take a LONG, HARD look at the REALITY of what they are starting to do to their educational environment and what they want in the future, because now is a tipping point to reach a compromise for what is going to be an ongoing issue.
Also, on one final note: the Ketterhagens and Koldeways probably haven’t missed a school board meeting since the whole mess last August. But if they’re so wound up about taxes and the way our money is spent, why are they just focusing on the schools and school board? All this argument has focused around BASD. You can NOT tell me there are no public employees with the city or the town.
So Tired – It seems you are the one twisting the facts. Teachers can take the high deductible insurance for no cost and the $250 per month you are referring to only comes into play if they acquire $3000 in medical expenses that are outside of customary office visits, etc. They also have the option of taking the family plan with a $500 deductible for $169.48 per month which is considerably less than anyone in the private sector is paying for insurance. AND they are getting a 2% pay raise.
As for teachers threatening to leave, that is their prerogative and I am willing to call their bluff. If they truly go seek out alternative employment in other fields or other school districts, they will not be going anywhere.
Finally your last paragraph sums up your personality perfectly. You’re so upset about teachers having to contribute more but in the same breath you want city and town employees to have to pay more. Guess what, they have had their benefits and wages adjusted as well, it’s just that for some reason the teachers seem to make the most noise.
It seems these tea party types are pissed whenever someone had something they do not. Because I don’t have benefits like your collectively bargaining affords you I don’t think its fair and I don’t want you to have it. They come across like pouting brats. I’m in the private sector but I don’t begrudge the union for negotiating better benefits.
To David – Wow, you are a perfect example of a teacher trying to spin reality to make it fit your agenda. There is an extremely small percentage of people in the work force that can raise their rates to cover expenses as you are claiming. Most people, myself included, work for a company that sets wages and insurance premium levels. While I can negotiate my wages, I have little to no say about insurance benefits. I currently contribute over $300.00 per month toward my insurance coverage with a $3,000.00 deductible. I would love to get the high deductible plan you are referring to for zero premium, because that is what your premium from BASD will be. Please post the name of the insurance agency that quoted this so I can take advantage of the awesome savings. No one is pointing blame at you, however, you do need to speak with people working in the private sector and view things from a realistic perspective. Stop feeling sorry for yourself you have a great job with benefits that are unattainable for most. Enjoy your summer off.
A contributing factor is that when these benefits were negotiated back in the day the costs were not what they are now. Health insurance is through the roof (in itself a problem) Maybe it was a reasonable idea back then it isn’t now. To ask people to contribute to something they benefit from isn’t the end of the world. I don’t get why these people posting can’t understand that. Don’t forget on top of these benefits they also are on vacation right now until September. Don’t bring that up though thats a no no. Figure out hours worked and they are doing pretty well. Which is fine, just don’t whine when you have to pay a little in for benefits.
To Bill, consider yourself lucky. I work for a private sector job. Hourly wage. I do not have my summers off. The company does not offer me insurance. The plan that I was referring to was from Blue Cross/Blue Shield, I got the quote directly from their website. There was a premium, about $570/month. This would have covered my whole family. I never said there was no premium. The difference between you and I is that I do not begrudge the BASD for paying the premium for the teachers. I am assuming that BASD, due to the volume of policies, probably negotiated a better premium than that. I think the teachers in this district deserve at least that. I value our public employees, I do not feel that they should be the target of all this anger over the troubles in our economy. I feel that our teachers, police offices, fire fighters, emergency responders, prison guards, city/county employees, etc should receive these benefits. They should have a retirement system setup to help them just as they help us each and every day. I do not feel sorry for myself, but I also do not begrudge others.
Too funny David, your original post is clearly written from the perspective of someone that does not work in the private sector. You may want to reread it before embellishing on the pitiful claims in your most current post. I do not begrudge BASD for paying teachers insurance premiums, I was merely pointing out the inaccuracies of your post.
Also, no one is angry at public employees over the troubles in our economy. The anger is coming from the public employees, mostly the teachers union, because they have had to contribute more for their benefits. I don’t blame you for that, I was angry too when faced with the same prospect. However, the simple reality is that something had to be done, it is time to get over it and move on.
More Tired: leave it to you to misread, intentionally or unintentionally, that one statement – and then ignore the rest. All I’m trying to say is that WeVote has gotten the entire community fixated on the school district to the point that every decision the district makes is under intense scrutiny.
The district is not operating in a vacuum. It IS making changes. From my point of view, they are trying to do it in a way that will not immediately cripple the teachers and administration by making changes gradually.
What the tea-party people refuse to acknowledge is the district took somewhere around a $2.4 million hit in state aid that they had to adjust for this year. And they’re trying to fix it in ways that do not affect ONLY the district staff.
You tea party/conservatives aren’t going to be happy until the teachers/staff are fronting the full extent of the blow. And that’s just wrong.
So Tired: Please enlighten me as to what I misread.
1. You said teachers will be paying an additional $250 per month for insurance, which I pointed out is not true.
2. You said teachers are not getting a cost of living increase, which is not true.
3. You claimed teachers are going to leave BASD, which I highly doubt.
4. You stated public employees (other than teachers) should pay more for benefits, which I pointed out is already happening.
I’m not a Tea Party person and I don’t always vote conservative. I look at things objectively, so I’m asking you, why did you post the lies and misinformation in your original post? Posts like that do nothing to bolster your cause.
More Tired:
1) This is the one place where I misspoke. I should have said “teachers could be paying the equivalent of $250 a month.” Obviously, they will be paying for whatever they have to use, and from my point of view, with a family plan and kids, the potential is definitely there to have to pay a fair amount of money. In any case, health insurance won’t be free for them if they have to use it.
2) Since when is two percent a cost of living increase? Especially with the cost of living what it is these days?
3) That isn’t just a claim. There are more than a few teachers who have said they’re tired of this.
4) I did NOT say that. I said, and I quote: “But if they’re so wound up about taxes and the way our money is spent, why are they just focusing on the schools and school board? All this argument has focused around BASD. You can NOT tell me there are no public employees with the city or the town.”
By that, I mean WeVote has focused almost exclusively on the school district. It has been an attack on the school district, in spite of the fact that the district has been fighting to try and make this budget balance in a way that is fair for everyone.
What isn’t a “lie”: A, many district employees live within the district. They will face the same tax levy increase people are all in arms about. B, two percent isn’t a cost of living increase. C, and maybe the most important point … Scott Walker cut school funding TWO years in a row, this year about $2.4 million.
The bottom line is even with having to contribute to pension and insurance a teaching job in BASD is not a bad gig. I think most teachers realize this. The problem is the few that do need to whine ruin the reputation for the rest of them. Frankly everyone else that have been paying for benefits for years in the private sector are tired of hearing about it.