Falls Teachers Union Agrees To Increase Insurance Contribution

Teachers unions have been a primary aspect of the furious budget debate in Wisconsin for the past year. However, without debate, the Menomonee Falls Education Association reached a voluntary agreement with the district that could save approximately $160,000 in the 2012-13 budget.

Last year, the School Board switched its insurance provider from the WEA Trust plan to Humana. The move saved the district $1.2 million, and employees contributed 8 percent to their insurance premium. However, the MFEA agreed to up that contribution by 3.5 percent recently, and teachers will contribute at least 11.5 percent during the next fiscal year.

The increased contribution amounts to a savings of $160,000 from the teaching staff. The district could save an additional $70,000 if all staff agree to the same increase, which would bring the total to roughly $230,000 in savings.

The district and the MFEA seized an opportunity for savings created by 2011 Wisconsin Act 65, which was signed by Gov. Scott Walker and was published on Nov. 23. Act 65 allows districts to modify contract agreements so long as the changes reduce the cost of compensation or fringe benefits. The changes can be made without voiding the contract agreement completely.

District administrators will once again be challenged to balance a budget in the face of cuts to state aid in 2012-13. Director of Business Services Jeffrey Gross is anticipating a 15 percent cut in state aid, but he added that the district hasn’t released a figure for the total projected deficit next year.

This year, the district faced a $5.1 million budget deficit, but balanced the budget without cutting programs. Falls from the state in 2011-12.

The district recently met with the MFEA to address the budget forecast for 2012-13, and the discussions focused on safeguarding programming for students in the face of a shrinking budget. The MFEA proposed increasing premium payments that day.

“(The MFEA) came to the table prepared to say they wanted to put education first in this community, and they voluntarily brought forth the health insurance increase as an option to help address the budget deficit,” said Board Member Lori Blodorn.

When Act 65 was published in November, it included a 90-day timeframe to use the provisions outlined in the law. The School Board must take action on the MFEA’s proposal by Feb. 22.

Therefore, a special School Board meeting to approve the agreement is planned for 6 p.m. Feb. 20 in Village Hall. However, that time could move up to 5:30 p.m. to accommodate the Village Board, which also meets that night.