Teachers get pay raise but insurance spikes

April 18--There was some good news and some bad news Tuesday for employees of Warrensburg R-VI Schools. The good news was that pay increases were approved by the board. The bad news was that insurance costs are going up.

"We had a large run of claims this year," insurance agent Randy Russell told the board during Tuesday's regular meeting.

He said the large number of claims in 2017-18 directly correlated to higher rates for 2018-19.

The insurance rates will increase by 9.5 percent next school year, resulting in about a $94 monthly increase in premiums for employees with families on the HMO-style plan.

That increase grows to $108/month for families on the PPO plan, with families on the high deductible plan seeing a $86/month jump.

Employees are covered by the district if they choose the HMO plan and that won't change. On other plans and with a spouse or with children, insurance costs will go up by that same 9.5 percent.

Dental insurance premiums will increase by 15 percent, resulting in a $7.15/month increase for those on the family plan.

To help try to offset insurance increases, the district approved a base pay increase of $100 for all certified staff. The board also approved the published step increase for teachers. Meanwhile, hourly employees will see a $0.15/hour raise.

The cost to the district is an estimated $966,000 for the salary improvements and insurance increases.

"You've got a huge insurance increase, which negates the impact that we can do with the pay raises," assistant superintendent Dr. Andy Kohl said.

Board members discussed the need to keep pay competitive on the classified side as well. The district's lowest pay rate for non-certified staff will be $8.80/hour after the latest pay increase.

Beth Rutt brought up the increased pressure on this segment of the workforce from incoming business development -- which will likely drive wages up based on supply and demand.

"That's definitely a goal for us, too, is to get those people up to $10 an hour," Kohl said.

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