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Sounds good to me.
Union curbs rescue a Wisconsin school district
By: Byron York | Chief Political Correspondent Follow Him @ByronYork | 06/30/11 8:05 PM
The budget helped save the struggling Kaukauna School District, in the Fox River Valley of Wisconsin."This is a disaster," said Mark Miller, the Wisconsin Senate Democratic leader, in February after Republican Gov. Scott Walker proposed a budget bill that would curtail the collective bargaining powers of some public employees. Miller predicted catastrophe if the bill were to become law -- a charge repeated thousands of times by his fellow Democrats, union officials, and protesters in the streets.
Now the bill is law, and we have some very early evidence of how it is working. And for one beleaguered Wisconsin school district, it's a godsend, not a disaster.
The Kaukauna School District, in the Fox River Valley of Wisconsin near Appleton, has about 4,200 students and about 400 employees. It has struggled in recent times and this year faced a deficit of $400,000. But after the law went into effect, at 12:01 a.m. Wednesday, school officials put in place new policies they estimate will turn that $400,000 deficit into a $1.5 million surplus. And it's all because of the very provisions that union leaders predicted would be disastrous.
In the past, teachers and other staff at Kaukauna were required to pay 10 percent of the cost of their health insurance coverage and none of their pension costs. Now, they'll pay 12.6 percent of the cost of their coverage (still well below rates in much of the private sector) and also contribute 5.8 percent of salary to their pensions. The changes will save the school board an estimated $1.2 million this year, according to board President Todd Arnoldussen.
Of course, Wisconsin unions had offered to make benefit concessions during the budget fight. Wouldn't Kaukauna's money problems have been solved if Walker had just accepted those concessions and not demanded cutbacks in collective bargaining powers?
"The monetary part of it is not the entire issue," says Arnoldussen, a political independent who won a spot on the board in a nonpartisan election. Indeed, some of the most important improvements in Kaukauna's outlook are because of the new limits on collective bargaining.
In the past, Kaukauna's agreement with the teachers union required the school district to purchase health insurance coverage from something called WEA Trust -- a company created by the Wisconsin teachers union. "It was in the collective bargaining agreement that we could only negotiate with them," says Arnoldussen. "Well, you know what happens when you can only negotiate with one vendor." This year, WEA Trust told Kaukauna that it would face a significant increase in premiums.
Now, the collective bargaining agreement is gone, and the school district is free to shop around for coverage. And all of a sudden, WEA Trust has changed its position. "With these changes, the schools could go out for bids, and lo and behold, WEA Trust said, 'We can match the lowest bid,'" says Republican state Rep. Jim Steineke, who represents the area and supports the Walker changes. At least for the moment, Kaukauna is staying with WEA Trust, but saving substantial amounts of money.
Then there are work rules. "In the collective bargaining agreement, high school teachers only had to teach five periods a day, out of seven," says Arnoldussen. "Now, they're going to teach six." In addition, the collective bargaining agreement specified that teachers had to be in the school 37 1/2 hours a week. Now, it will be 40 hours.
The changes mean Kaukauna can reduce the size of its classes -- from 31 students to 26 students in high school and from 26 students to 23 students in elementary school. In addition, there will be more teacher time for one-on-one sessions with troubled students. Those changes would not have been possible without the much-maligned changes in collective bargaining.
Teachers' salaries will stay "relatively the same," Arnoldussen says, except for higher pension and health care payments. (The top salary is around $80,000 per year, with about $35,000 in additional benefits, for 184 days of work per year -- summers off.) Finally, the money saved will be used to hire a few more teachers and ins ute merit pay.
It is impossible to overstate how bitter and ugly the Wisconsin fight has been, and that bitterness and ugliness continues to this day with efforts to recall senators and an unseemly battle inside the state Supreme Court. But the new law is now a reality, and Gov. Walker recently told the Milwaukee Journal Sentinel that the measure will gain acceptance "with every day, week and month that goes by that the world doesn't fall apart."
In the Kaukauna schools, the world is not only not falling apart -- it's getting better.
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Bad news for Unions, great news for students! I hope we'll be reading more and more stories like this in the coming year.
Read more at the Washington Examiner: http://washingtonexaminer.com/politi...#ixzz1QsBE6v6S
Sounds good to me.
Wasn't the union going to agree to most of those terms anyway?
From what I understand, the Unions agreed to monetary concessions, but not the collective bargaining items. And, going by the article I posted, those items such as what insurance companies they could work with and working hours for teachers have resulted in significant savings to the school district.
So the answer is probably yes.
This is from the article: Those changes would not have been possible without the much-maligned changes in collective bargaining.
So I would say the answer is no. They agreed to paying more for health insurance and towards retirement, but not the other stuff.
Sorry, I'd rather see something other than the Washignton Examiner saying what changes would have been agreed to.
And yeah, I'm fine with the compe ive bidding.
If this school district were to shut down, would the students not be able to go to other schools?
The article linked below says that the new policy that "will turn that $400,000 deficit into a $1.5 million surplus" is a plan to lay-off employees.
http://www.postcrescent.com/article/...smayed-layoffs
15 people? How much are they making? Damn.
$1 million / 15 = $66K
Sounds like a middle of the road salary...
Math is hard.
So they're bragging about a surplus while laying people off? What the ?
Evidently, reading is harder.
so, 15 people at $33k.
Even harder.
I took it to mean
15 jobs + $1 million in extra administrative expenses = the $1.5 million surplus.
$500k/ 15 =$33.3k
You're getting colder
show us your math, then.
15 laid off plus 1 million to pare a 3 million gap
the Kaukauna school board's decision Monday to eliminate 14.49 full-time equivalent positions and cut an additional $1 million in administrative expenses next year
Sounds like they're saving $1 million on roughly 15 jobs. What did I miss?
Did they fully balance the budget?
Were any other measures taken?
Oh, you think the $1m is on top of the firings... fair enough...
It doesn't say the other $2m are entirely on those salaries though
Actually, it's on the article:
The district expects to save $1.5 million through the layoffs.
So, that's $100,000 per... there's your answer.
Actually, salary would be substantially less than 100K, if you consider pension and healthcare contributions.
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