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Lancaster Central School District needs a wake-up call. Part III: Benefits
By Lee Chowaniec
Mar 20, 2008, 13:42

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You hear it every day from private sector taxpayers, “We can no longer afford to pay the taxes we are paying to support a public sector that is over-bloated and with workers getting better benefits than us."

Those employed in the public sector respond that their gains were negotiated over time by contracts between their unions and administrators and are binding.

Well, budgets in the private sector and in responsible households are based on spending according to essential needs and income. They have no deep pockets to go too when wish lists exceed income.

The Lancaster Central School District is looking at financial chaos should they not be removed from the NYS Contract for Excellence (C4E) list for 2008-09 and allowed to use $1.8 million to reduce school taxes.

Most likely, LCSD will be removed from the C4E list and the $1.8 could be used to lower taxes. Even if the District were able to reduce the predicted $84 million budget by $3 million, taxpayers would be faced voting for a budget where spending would increase by over 7 percent, the tax rate increase would be in the high 5 percent range and taxpayers would be paying an increase of approximately 90 cents per thousand dollars of assessed property.

Even then, the school district will be hard pressed to get voter approval for said budget increases without further cost cutting measures.

Public empathy for a budget that provides for staffing, programs, salaries and benefits that fail to meet up to school performance expectations, especially at a time when the area is in economic decline, will be seriously tested this spring. It is imperative that Lancaster does well in the Buffalo First school district rankings.

Whatever one’s thoughts are on the teacher salary structure, individuals are most disturbed with the health and retirement benefits received by those employed in the public sector.

Private sector workers question why they are subjected to getting pay cuts, no raises for years, dropped pension plans, significant increases in health premiums and higher prescription co-pays, while the public sector worker experiences none of the above.

Last year, Lancaster teachers were given a 5 percent raise in lieu of their going to a single health care provider. It doesn’t work that way in private sector.

It appears to be a system of entitlements based on the premise that, “if you intend to make a change that takes something away from me, you had better give me something in return.”

Eighty-five percent of the budget is appropriated for mandates. A great portion of that mandate comes from salaries. When union contracts expire, they only become mandates again after negotiations take place between them and District negotiators.

So, who really approves the contracts that become mandated? Why the school district does. But should the district want to make changes, the union takes them to arbitration. Guess who loses?

Attempts made to change some of the contracts through negotiations have not been successful. Unlike the private sector, there is no bottom line where financial success is a determining factor for success.

Too often this leads the taxpayer to resent paying for salaries, health care and retirement plans that far exceed his or her own.

Although there are four unions in the LCSD, the teacher’s contract was most accessible and pertinent to the average taxpayer for comparing benefits. They are not the sole source of a system that is out of control and bringing on skyrocketing school taxes, but are reveling at the same time.

Benefits

Health


Effective September 1, 2007, the School District shall contribute 93 percent of the monthly premium for the employee’s coverage, single or family as the case may be. Therefore, if the health premium cost were $1,000 per month, the employee would pay $70 per month.

Cash buyout: The District will reimburse employees who do not participate in any health coverage; $1,500 annually for family plan and $500 for single coverage.

All employees eligible for District health benefits coverage will receive, at District expense, vision benefits.

All employees eligible for District health benefits coverage will receive, at District expense, dental benefits.

Although retired schoolteachers do not receive lifetime health benefits, they can accrue up to 245 sick days that can either be sold back or placed into an escrow account and used for continuing their health plan. The accumulated sick days are paid at a $146 per day rate and the same health benefits are provided to the retired worker until their escrow fund runs out.

All teachers shall be entitled to attend, free of charge, all school activities, including athletic events.

If during a fiscal year a teacher uses no sick days or personal leave days, the teacher will be paid $200. If during a fiscal year a teacher uses only one sick or personal day, he or she will be paid $100.

Leaves of absence

Each teacher is credited 13 sick days each year. If the individual does not use any of his or her allotted sick days in the fiscal year, they receive a bonus of two days to accumulate on their sick leave.

Cumulative maximum sick days allowed – 245.

In case of illness in the immediate family (father, mother, brother, sister, daughter, wife, husband, grandparent or other persons with whom the teacher resides) a teacher shall be allowed absence with full pay. Such absence shall be deducted from the personal sick leave allowance and shall be limited to fifty (50) days per illness.

In case of death in the immediate family, a teacher will be allowed five (5) days with full pay and three (3) school days for other relatives.


Retirement

Teachers are required by law to contribute 3% of their salary until they have been a member for 10 years in the NYS Retirement System, or accrue 10 years of total service credit, whichever occurs first.

A Tier 2, 3, or 4 member who is at least age 55, can retire without a pension reduction as long as they have 30 years of service credit. If they have less than 30 years of service credit when they retire, their pension will be reduced unless you are at least age 62.

* Tier 1: For membership dates before 7/1/73;
* Tier 2: For membership dates between 7/1/73 and 7/26/76;
* Tier 3: For membership dates between 7/27/76 and 8/31/83; and,
* Tier 4: For membership dates after 8/31/83.


Service Credit ----------- Pension Factor

Less than 20 years ------ 1-2/3% per year

20 to 30 years ------------- 2% per year for all service

30 or more years --------- 60% maximum pension factor

Therefore, a teacher with an MA, with 30 years service will receive over $50,000 annually in pension. Not too shabby, eh?

It should also be noted that the regular work year for teachers will be no longer than 200 days. Should they be required to work over 200 days they will be paid at a rate of 1/200 of the current salary step.

By the way, I can’t understand why we are being told that it costs $5,775 for general population student education and $11,098 for special educated children when the enrollment in Lancaster for 2006-07 was 6,297 and where the budget was $76.37 million.

That translates to $12,128 per student. It must be more than just taking the budget and dividing it by the number of students.

© Copyright 2008 by Speakupwny.com

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