P.O. Box 909 ● Trenton, NJ 08605-0909 ● Phone: 609.695.7600 ● Fax: 609.695.0413 ● Web: www.njsba.org/PI

School Boards Achieving Greater Savings at Bargaining Table

TRENTON, June 11, 2009 — A growing majority of school boards throughout the state are successfully negotiating provisions in their districts’ teacher contracts to rein in the cost of health insurance, the New Jersey School Boards Association (NJSBA) reported today.

Of 510 current teacher contracts reported to NJSBA, 62 percent include new provisions to contain skyrocketing health insurance costs.

Teacher contracts are generally for three years. For the newest contracts – those in which year one is 2008-2009 – the percentage with provisions controlling insurance costs is even greater, 77 percent. In comparison, only half of teacher contracts included such clauses the year before.

• Requiring employee contributions toward insurance premiums (present in 12 percent of 2008-2009 contracts);
• Providing less-costly health insurance programs to new employees (41 percent of contracts);
• Providing a basic employer-pay-all plan, with the option of employee-paid upgrades (21 percent); and
• Offering incentives to waive district-provided coverage for those employees covered by other health insurance plans (60 percent).

“School boards have been responsive to taxpayers’ concerns over the difficult economy,” said Marie S. Bilik, NJSBA’s executive director. “Typically, about 75 to 80 percent of a school district’s budget is comprised of staff compensation. School boards and local teachers unions have been agreeing to contracts that bring down the cost of benefits, which constitute the most rapidly increasing area of compensation.”