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
Artificial Intelligence Webinar
Decision Time: The Future of Teaching and Learning in the AI Era
The AI revolution is already here. Will it strengthen instruction or set it back? Join us to explore the future of teaching and learning.
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
School & District Management Webinar
Stop the Drop: Turn Communication Into an Enrollment Booster
Turn everyday communication with families into powerful PR that builds trust, boosts reputation, and drives enrollment.
Content provided by TalkingPoints
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
Special Education Webinar
Integrating and Interpreting MTSS Data: How Districts Are Designing Systems That Identify Student Needs
Discover practical ways to organize MTSS data that enable timely, confident MTSS decisions, ensuring every student is seen and supported.
Content provided by Panorama Education

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 In Trump's First Year, At Least $12 Billion in School Funding Disruptions
The administration's cuts to schools came through the Education Department and other agencies.
9 min read
Education Funding Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
State decisions on incorporating federal tax cuts into their own tax codes could strain school budgets.
7 min read
President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House on July 4, 2025, in Washington.
President Donald Trump signs his signature bill of tax breaks and spending cuts, the One Big Beautiful Bill Act, at the White House on July 4, 2025, in Washington. States are considering whether to incorporate the tax changes into their own tax codes, which will results in lower state revenue collections that could strain school budgets.
Evan Vucci/AP
Education Funding Educator Layoffs Loom as Canceled Community Schools Grants Remain in Limbo
Three legal challenges and bipartisan backlash have followed the Trump administration's funding cuts.
5 min read
Stephon Thompson, an administrator at Stevenson Elementary School, directs students through the doors at the beginning of the school day in Southfield, Mich., on Feb. 28, 2024.
Stephon Thompson directs students through the doors at the beginning of the school day at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has added on-site social services in recent years as a community school. The Trump administration has recently discontinued 19 federal grants that help schools become local service hubs for students and their families.
Samuel Trotter for Education Week
Education Funding ‘Terminated on a Whim’: The AFT Sues Trump’s Ed. Dept. Over Funding Cuts
The AFT and a Chicago-area nonprofit argue the cuts happened without following required procedures.
Randi Weingarten speaks at a press conference at Murrell Dobbins Career & Technical Education High School in Philadelphia, Pennsylvania on September 2, 2025.
Randi Weingarten, the president of the American Federation of Teachers, speaks at a press conference in Philadelphia on Sept. 2, 2025. Weingarten says that cuts to federal education funds by the Trump administration "are only hurting young people."
Rachel Wisniewski for Education Week