Madison School Board to begin mulling $389 million proposed budget for next school year
For the first time, under new pressure from Gov.
Instead, the district could find cost savings and use them to raise wages and salaries to offset any increased premium charges.
"We have found different ways to balance our budgets (over the past few years), despite state revenue cuts or minimal revenue growth," budget director
Overall, the district's operating budget for the 2017-2018 school year would rise
The budget for the first time also will include spending made possible through a referendum that voters approved in November to permanently raise the district's annual revenue limit authority by
Revenues also will be boosted by an extra
Revenues from both sources will be "critically important," Barry said, in funding instruction and stabilizing school staffing levels after back-to-back years of personnel reductions totaling about 150 jobs.
An increase in school funding from the state for next year also is possible, if Walker's two-year budget plan -- calling for
Barry said the board would have to comply with Walker's order on increased premiums if it becomes part of the state budget lawmakers approve, rather than lose the extra state aid. District employee premiums currently range from 1.25 percent for lower paid staff to 10 percent for top administrators, for an average of 3.5 percent.
The proposed budget estimates upping employee premium contributions to 12 percent would cost
"We have a plan to capture the cost of the premium increase and reallocate it to wages and salary," the budget proposal notes. "If the final state budget does not include a 12 percent (employee premium contribution) requirement, the (district) will continue with its current EPC scale of 1.25 percent to 10 percent."
Increasing compensation to cover premium hikes for employees would be accomplished by finding cost savings mainly through possible changes to the three health insurance plans from which district employees can now choose coverage. Those insurance plans are from GHC, Dean and Unity, in ascending order of plan cost.
The budget team developed three health insurance-related options for board members to consider, with an administration goal of choosing one by
Those three options are:
--Maintain the existing 3-HMO plan. Barry noted this option would produce no off- setting savings, leaving employees to cover the required premium increase.
--Offer only the lowest-cost GHC coverage, for savings of
--Offer GHC or Dean coverage, capturing an estimated
The budget team is recommending the 2-HMO option.
Beyond covering premium increases, the district savings from that option also would increase summer school pay for teachers by a total of
It appeared the district's creative approach to meeting Walker's rules on increased health premiums -- which stem from a 2011 law known as Act 10 that shifted more pension and health insurance costs onto government employees -- would pass muster with state officials.
"If the
Overall, the proposed budget also would increase pay across the board for all district staff by about 2.5 percent, over and above any raises to cover premium increases. It also includes
The budget proposal released Friday serves as Cheatham's formal recommendation for a spending plan for the 50-school district for next school year, effective
The board will begin reviewing the proposed plan at Monday's meeting, with several opportunities for discussion and public comment prior to a
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