MARTINEZ — For years, as health insurance rates skyrocketed, the Martinez school district has continued to pay the entire cost of family medical coverage for its teachers.
But with California still reeling from the recession and state leaders likely to cut education funding again this year, administrators say the district no longer can afford to pick up the tab for the annual rate increases.
In January, the district and the teachers' union began negotiating a contract that would expire in June 2012. Furlough days and larger classes are on the table. But it is the district's proposal that teachers pay for the additional cost of their health care from now on that has proved to be an obstacle to reaching an agreement.
"We're trying to come up with creative ways where the employees can pitch in and help to save their health benefits," said Rick Rubino, assistant superintendent. "We have never proposed taking away health benefits, we're just trying to find a way to pay for them."
This school year the district is dipping into its reserve fund to cover a $2.5 million budget shortfall, and it may have to cut $2.6 million from next year's budget if the Legislature adopts the proposals in Gov. Arnold Schwarzenegger's January budget.
Salaries and benefits make up about 90 percent of the district's $30 million budget. The district covers the entire cost of family medical coverage through Kaiser Permanente for full-time employees.
For 2010, the cost is $18,199 per employee, up 4.7 percent from last year, according to Rubino.Martinez teachers union President Bob Holsinger said the teachers understand the district is in a tight spot, so they are willing to contribute monthly to their health insurance costs until the contract expires. But the union strongly opposes the district's proposal that the teachers pay for annual rate increases in perpetuity. The teachers believe the state's financial crisis is a short-term situation, so they want to make only temporary concessions.
"We have come in earnest to the table to say we know we need to give up things to make this happen," Holsinger
