Education Funding

Bitter Battle Over Insurance

By John Gehring — September 07, 2005 1 min read
  • Save to favorites
  • Print

The Buffalo, N.Y., district is moving ahead with plans to consolidate health coverage under a single carrier. In fact, employees already have been sent new insurance cards.

But a state arbitrator still must rule this month on whether it was legal for the school board to change the coverage without the unions’ approval.

In an attempt to rein in health-care expenses and save about $10 million, the 43,000-student district has been trying to combine health coverage, rather than offer three different providers as it has for years.

The Buffalo Fiscal Stability Authority, which oversees the city’s finances, warned last week that the district could be bankrupted if it doesn’t reduce health-care costs, the Buffalo News reported. The district faces the possibility of spending more over four years for benefits than it does on salaries, the newspaper said.

The high-stakes issue has seen tempers flare. Superintendent James A. Williams and the president of the Buffalo Teachers’ Union, Philip Rumore, have accused one another of dishonest bargaining.

Unless health-care coverage is changed, Mr. Williams has argued, major budget cuts will be needed. As it is, the district has laid off 88 teachers and 26 assistant principals, who could be recalled to work when the dispute is settled.

Mr. Rumore has countered that the district is strong-arming the unions by changing insurance plans without providing enough information for them to evaluate the switch.

The New York State Public Employment Relations Board sent in a mediator to help work out a solution. The board handed the district a partial victory Aug. 29, when it allowed the district, for now, to move ahead with its plans.

Buffalo is not alone in its concern over controlling spiraling health-care costs. A survey conducted in July by the Reston, Va.-based Association of School Business Officials International found that more than 800 districts have seen health-care costs rise an average of almost 10 percent in the most recent fiscal year.

“We’re willing to negotiate on a single carrier,” said Mr. Rumore, the president of the BTU, a 3,600-member affiliate of the National Education Association, “but the devil is in the details.

“The district decided to unilaterally impose its choice,” he said. District officials could not be reached, but have repeatedly denied the charge.—

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
The Future of the Science of Reading
Join us for a discussion on the future of the Science of Reading and how to support every student’s path to literacy.
Content provided by HMH
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
From Classrooms to Careers: How Schools and Districts Can Prepare Students for a Changing Workforce
Real careers start in school. Learn how Alton High built student-centered, job-aligned pathways.
Content provided by TNTP
Mathematics K-12 Essentials Forum Helping Students Succeed in Math

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Opinion Trump's Cuts to Schools Will Hit Hard. But Leaders Need More Than Just Money
The federal funding chaos highlights a perennial dynamic in public schools.
Joshua P. Starr
5 min read
Concept of the remedy for melancholy and happiness, with a painter who transforms a brick wall into a sunny sky.
iStock/Getty
Education Funding Who Will Bear the Brunt of Trump's Hold on $6.8 Billion in School Funds?
The sudden absence of expected federal funds has already cost some educators their jobs.
12 min read
Image of a $100 dollar bill that is cut into blocks for distribution.
E+/Getty
Education Funding Schools and States Scramble as Trump Freezes $6.8 Billion in Federal Funds
After-school programs, English-learner services, migrant education programs, and professional development are all at risk.
8 min read
President Donald Trump speaks to the media before walking across the South Lawn of the White House to board Marine One en route to Joint Base Andrews, Md., and on to Florida, Tuesday, July 1, 2025, in Washington.
President Donald Trump speaks to the media before walking across the South Lawn of the White House to board Marine One on Tuesday, July 1, 2025. Trump's administration has told states it's holding back nearly $7 billion in already-approved federal funds for schools, sending states and schools scrambling for more information.
Mark Schiefelbein/AP
Education Funding Interactive See How Much School Funding Trump Is Holding Back From Your State
The administration is holding back nearly $7 billion for English learners, after-school programs, professional development, and more.
1 min read
Image of money symbol made of sand filtering slowly through an hour glass.
DigitalVision Vectors