By: centraljersey.com
Gene Robbins
Managing Editor
On Monday, staffers in Hillsborough schools were "on a high" knowing that a negotiated agreement staved off the privatization of 270 jobs, which is more than one-fourth of the school’s work force.
By Tuesday, they were mulling the reality of a $2,000 to $3,000 increased expense in their personal budgets.
So said Hillsborough Education Association President Barbara Parker on Tuesday in the aftermath of a two-year, three-month contract arrived at prior to Monday night’s Board of Education meeting.
The contract focused on changes in fast-rising health-care insurance costs.
Superintendent Jorden Schiff said the major cost driver in school budgets is not salaries, but health care benefits, whose annual increases continue to hit double digits.
Ms. Parker estimated the HEA gave back what might amount to as much as $3 million in health care concessions over the life of the contract.
The current insurer is Horizon Blue Cross/Blue Shield. The new agreement shifts to the state health benefits plan.
HEA members will receive a 1.5 percent salary increment for 2011-12, said Ms. Parker. But, as of April 1, the approximately 1,000 HEA members will begin paying 1.5 percent of their health insurance premium through June 30, when the higher provisions would kick in.
In 2011-12 members will pay 12percent of the cost of the premium, or 1.5 percent of their salary, whichever is greater.
In 2012-13 members will pay 18 percent of the cost of the premium, or 1.5 percent of their salary, whichever is greater, and receive a 2 percent salary increase.
The current plan has an option for traditional coverage or a point-of-service plan with $10 co-payment. By moving into state plan, the more expensive traditional option is eliminated, Superintendent Jorden Schiff said yesterday, and there are two options, with the cost of the premium essentially tied to the choice of either a $10 or $15 co-payment.
For calendar year 2011, the premium on a $15 co-payment plan is about $7,300 for a single, $16,500 for married, $10,300 for a single person with child and $18,400 for a family, said Dr. Schiff.
The $10 co-payment plan is about 5% more expensive, he said.
Ms. Parker estimated the concessions would cost $2,000 to $3,000 per member. Cost estimates will differ depending on the plan they select, all with different co-payments, referrals and requirement for referrals.
This contract succeeds a three-year one in which HEA members were granted a 4.7 percent increase for each of three years, said Ms. Parker.
She said the community generated a lot of the pressure for the board to dump the privatization idea.
"Circumstances put a lot of pressure on us," she said, adding that it was "unfortunate" that at the Monday night meeting the board said it would hold the option of reconsidering privatization if the budget levy failed at the polls.
"We can’t take anything off the table," said Superintendent Schiff, adding that "the board and I heard very clearly the concerns of the community concerning privatization. We believe the community, given the shared sacrifice HEA has made, will appreciate that."
Ms. Parker said the association was powerless to prevent the possibility. "You can’t negotiate a promise to not privatize," she said.
The association will mount an effort to pass the budget, she said. Hopefully community interest will remain active and the public will not grow complacent, she said.
The association will still absorb in May the second furlough day of this school year. That was a concession following last year’s budget defeat, Ms. Parker said.
The two sides agreed in the new contract to allow the staggering of the work week for custodians and buildings/grounds workers. Workers will be scheduled on regular time on weekends to allow the board to realize a savings of about $150,000 in overtime, Dr. Schiff said.
The four library aides positions will be eliminated to conform with state efficiency regulations. But there is a chance they might be offered other jobs, like an instructional aide, in the new year, Dr. Schiff said.

