2010

Posted by Bob on March 31, 2010 under Daily Blogs | Read the First Comment

Last night’s (3/30/2010) Board of Education meeting involved significant action to reduce expected costs for the 2010-2011 school year. Prior to last night’s meeting, expected costs for July 1, 2010, amounted to a THREE MILLION NINE HUNDRED SEVENTY SIX THOUSAND NINE HUNDRED NINETY SEVEN and 00/100THS ($3,976,997.00) DOLLAR increase over the 2009-2010 budget. This amount already included reductions in personnel related to the early retirement incentive package (”ERIP”) accepted by approximately thirty three (33) teachers.

The following items voted upon last night have resulted in a decrease of that amount to approximately ONE MILLION SIX HUNDRED THOUSAND and 00/100THS ($1,600,000.00) DOLLARS.

Change to Health Insurance Benefit Coordinator

The Board of Education (”BoE”) voted unanimously to change the BoE’s health insurance benefit coordinator from Anthem Blue Cross Blue Shield to Cigna. This is expected to provide savings of at least approximately EIGHT HUNDRED FIFTY THOUSAND and 00/100THS ($850,000.00) DOLLARS for the 2010-2011 fiscal year. The amount currently budgeted for all net health insurance costs was reduced to TEN MILLION EIGHT HUNDRED THOUSAND and 00/100THS ($10,800,000.00) DOLLARS. There is potential for additional savings after it is determined exactly how many employees will be under contract for the coming fiscal year.

Consolidation of Middle Schools and Accompanying Filling of Other Buildings

The BoE unanimously approved the consolidation of Hillside Middle School and City Hill Middle School into City Hill. Hop Brook Intermediate School would move to Hillside, and Prospect Street would move to Hop Brook. Prospect Street would become an early learning center and house the Head Start program currently located at City Hill. This reconfiguration component is projected to provide ONE MILLION ELEVEN THOUSAND ONE HUNDRED EIGHTY EIGHT and 40/100THS ($1,011,188.40) DOLLARS worth of savings. Said amount represents additional savings above the amounts already included in the ERIP savings.

Closing of Salem Elementary School

Regretfully, the BoE voted five (5) to three (3) to close Salem Elementary School. I voted in favor of closing Salem for reasons described below. FOUR HUNDRED TWENTY FOUR THOUSAND FOUR HUNDRED SEVENTEEN and 21/100THS ($424,417.21) DOLLARS of savings was projected resulting from the closing. Said amount represents additional savings above the amounts already included in the ERIP savings.

Possible Further Cuts

More severe cuts were discussed but not recommended by the Superintendent. Said possible cuts were discussed in response to requests to show (i) what other possible areas could produce savings; and (ii) what a flat, zero (0) budget may represent for our district.

A class-size projection and list of potential eliminated classes was presented as well. Said documents as well as supporting information for the above actions may be viewed here (all documents are in one .pdf).

None of the decisions taken at last night’s meeting were easy. Given contractual obligations and increases in health benefit and utility costs, the BoE would face an approximate SEVEN MILLION and 00/100THS ($7,000,000.00) DOLLAR increase in costs for 2010-2011 moving forward at existing staffing and building configuration. The goal has been to preserve as many of our outstanding educators and support staff as possible given the financial constraints. While the ERIP and reconfiguration actions was more directed toward reduction of teaching positions, additional cuts are likely from administration and support staff. While Naugatuck is not alone in having to make such decisions, company provides little comfort when one realizes how this impacts people’s lives and the overall effect on our educational system.

The decision to close Salem Elementary School was particularly difficult. Salem has educated generations of Naugatuck students and has earned a special place in the hearts of so many parents, students and former-students alike. Salem’s educators from top to bottom are outstanding and have built an impeccable reputation over many years. Unfortunately keeping Salem open would have forced the BoE to make additional cuts to educators and other staff. Board member David Heller appropriately conveyed a sentiment stated several times throughout this difficult process: “…it’s not the walls in the school that are as important as the people in those walls.” The savings associated with the closure, both in this coming fiscal year and in future years, was too great to justify maintaining Salem at the expense of educators. While it was certainly possible to close Salem next year, this would simply delay the inevitable, cost positions this year, and cause additional disruption associated with reconfiguration for the 2011-2012 school year.

As difficult as it is to close such a magnificent school, it is not the first time a Naugatuck school has closed. Whether it was Center School, Pond Hill School, or Oak Street School to name a few, the Naugatuck educational community has changed throughout our history, persevered and prospered. I promise that the Borough will protect this beautiful building, and find a public use that will honor its splendid architecture and history in our community.

NDM said,

A few comments:

The change from Anthem to Cigna is going to be a poor one. Cigna does not have as good of customer service and while on Cigna my wife had nothing but headaches with claims being mishandled. With insurance you often get what you paid for.

That said, I wish the Board of Education would offer different levels of coverage. Not everyone needs the end all and be all plan that we are currently offered. I would gladly take a plan that has a slightly higher co-pay on thing such as hospital visits for a lower plan cost as my risk of hospitalization is low.

By going with a one size fits all approach the Board misses some opportunities to save money. Yes, many of the employees might elect for the highest coverage option, but employees who are single, in good health, or don’t have ongoing prescriptions and medical needs could easily afford to work with a less inclusive plan, saving themselves, and the Board of Education money.

In the private sector companies often offer a choice of plans for this very reason. And while this is something that the Board would want to meet with the Union about, as long as they are not stripping away the option of the highest plan and are offering lower cost alternatives I believe that they could do it under the current contract.