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Butler health care deal a start; more needed to help budget

Butler School District taxpayers should be happy, although not ecstatic, with the approximately $770,000 of projected savings during each of the next three years under an agreement increasing the amount district teachers, administrators and other high-level managers will contribute toward their health care coverage. The agreement also freezes supplemental wages, such as for coaching, and department chairpersons’ pay.

Although the amount of savings is significant, it can be greater if teachers, administrators and others agree to the recommendation of Gov. Tom Corbett, who, when he introduced his 2011-12 budget proposal, urged that all employees of public schools — administrators, teachers and support staff — accept a one-year pay freeze.

There has been no indication yet about whether teachers and administrators are also considering a freeze.

The intent behind the governor’s freeze proposal is to help districts overcome the hardships stemming from lower state subsidies anticipated for the upcoming fiscal year, which begins July 1. It has been estimated that the Butler School District could lose $4 million under Corbett’s budget plan.

The anticipated decrease in state subsidy money stems from the state’s $4 billion-plus budget hole that Corbett and the General Assembly must resolve prior to adoption of the state’s 2011-12 budget, which is to take effect July 1.

Although Butler School Board members, the Butler Area Education Association and others touted the new health care contributions accord ratified by the board Tuesday morning, and which was approved by the teachers union on April 20, the agreement falls far short of Corbett’s requested savings — and what many district taxpayers contribute toward their own health coverage. It’s to be hoped that district teachers and administrators will take a further step regarding pay.

First, those district employees who will now pay a little more toward their health care benefits still are in line for raises well above the current inflation rate — raises like they have continued to receive despite the recession and other serious challenges facing the district, like budgeting for higher pension contributions mandated by unconscionable state legislative action in 2001.

The higher contributions toward health care that will be paid for the next three years are still less than the amount many residents in the district pay each month for coverage that, also in many cases, is inferior to what the school district’s employees enjoy.

Under the terms of the new accord, the monthly health care contributions of the employees in question will increase to $60 for individual coverage and to $75 or $90 for family coverage. Prior to the agreement, they were scheduled to pay between $20 and $30 per month.

Considering the anticipated much-lower subsidy rate, district employees should consider Corbett’s request and be willing to do more to help their school district and fellow taxpayers.

If the approximately 600 Butler School District employees covered by the new health care accord had agreed to a one-year pay freeze, the savings to district taxpayers would be approximately $1.5 million annually for the next three years — that is, if each of the employees were scheduled to receive a $2,500 pay increase for 2011-12.

District teachers are scheduled to receive a 4.38-percent pay increase for 2011-12.

As positive as the health care change is, district taxpayers and the district could use more in terms of — using Corbett’s word — “sacrifice.”

The district could save $104,560 for 2011-12 if only the top district administrators were to accept a wage freeze. Administrators of the Seneca Valley School District have agreed to a one-year pay freeze that will save that district about $181,000.

The Butler School Board retains the option of raising the district’s property tax up to 1.67 mills, but the board hasn’t said whether it is considering such a move.

However, if Corbett’s call for sacrifice were to be heeded, a one-year pay freeze would accompany the larger health care contributions. If that were to happen, the district’s board and administrators would face a less-formidable task regarding 2011-12 budget preparation — by about $2.25 million, if both the wage freeze and increased health care contributions were in effect.

Teachers and administrators should make their intentions known soon, whatever their stance, so taxpayers can properly reflect on what’s at hand.

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