Norwalk schools to seek $3.3M in city funds to cover teachers' health insurance plan

Jun. 5—NORWALK — School district officials are seeking an additional $3.3 million in city funds to close a budget gap after the local teachers union elected to retain its current healthcare plan.

The Norwalk Federation of Teachers union held a vote Tuesday in which 137 members voted in favor of retaining Cigna as the unit's healthcare insurance company for the upcoming school year, while 37 voted against the move, according to NFT President Mary Yordon.

A press release from Norwalk Public Schools stated that union's desire to remain enrolled in its current plan would result in a budgetary shortfall for the school district.

"The district made the city aware that there was a possibility that additional funding would be needed depending on the outcome of the NFT vote," said Superintendent Alexandra Estrella, in the press release. "Now that the vote has occurred, we will work with the Board of Education and the city to discuss a special appropriation to ensure that contractual employee healthcare obligations are fully funded."

In a statement sent to The Norwalk Hour by city spokesperson Jenn McMurrer, Norwalk Mayor Barbara Smyth said she was informed of the teacher union vote.

"The Board of Education and city administration will review the information carefully and continue discussions with district leadership to better understand the impact and determine the appropriate next steps," Smyth said in the statement. "At this point, we're evaluating all available information and will work collaboratively with our education partners as the budget process moves forward."

According to the school district's press release, the premium rates for the Cigna plan ballooned by about 32% this year. Conversely, the increase to the state-sponsored health insurance program known as the State Partnership Plan — which is utilized by all other Norwalk Public Schools employees as well as all city employees — was 12.5%.

Norwalk Public Schools Chief Financial Officer Lunda Asmani said if the $3.3 million appropriation is not granted, the Board of Education's health insurance account will end the year in a deficit. If the insurance cost increase had been incorporated to the budget prior to its approval by the Board of Education last month, it would have likely meant "significant personnel reductions," he said.

In a phone interview, Yordon questioned why the school district assumed the NFT would move to the State Partnership Plan when budgeting.

"We're not sure why the school district built their budget around an assumption that the teachers would move to a different plan," she said.

Asmani responded that district officials have to make budget assumptions every year "based on the best information available at the time."

He added that when the Board of Education approved its preliminary budget in December, central office administrators were using projected increases for both the State Partnership Plan and the Cigna plan at the time. However, it was not until February that school officials were informed of a 33% increase to the Cigna plan.

"We subsequently asked Cigna to reconsider the renewal rate, and the increase was reduced to 32%," Asmani said, in an emailed response sent to The Norwalk Hour by schools spokesperson Emily Morgan.

School officials discussed a possible transition to the state plan with the teachers union, Asmani said.

"It was discussed during the budget process that building a budget around a projected 32% increase in medical costs, when a 12.5% alternative was available, would not have been a prudent planning approach," he said. "Budgeting for the higher increase would have required even deeper reductions in an already challenging budget environment. As a result, the budget was developed using the 12.5% assumption."

The teachers union did "a lot of research" comparing the Cigna plan with the State Partnership Plan, Yordon said, and concluded that the Cigna plan offered more benefits. She described both plans as "excellent."

"For us at this time the members decided it did not seem to be the right plan," Yordon said about the state insurance program.

The special appropriation request of $3.3 million would need to be approved by the Board of Estimate and Taxation. If the board supports it, the item would then go to the City Council for a final vote.

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