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
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
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
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
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 Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

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 Letter to the Editor Expired Funds, Unreliability Harm Rural Schools
Responsible planning requires predictable funding, says a school district superintendent.
1 min read
Education Week opinion letters submissions
Gwen Keraval for Education Week
Education Funding Federal Tax Credits for K-12 Scholarships: What We Know (and Don't)
The Trump administration is preparing to issue rules for its new, ambitious school choice program.
11 min read
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump s Education Freedom Tax Credit on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich.
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump's tax-credit scholarship program on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich., where she urged Michigan Gov. Gretchen Whitmer to opt her state in. The Trump administration, through the Department of the Treasury, is expected to release regulations for the program in the coming days. Several governors have said they're awaiting those regulations before deciding whether their states participate.
Katy Kildee/The Detroit News via TNS
Education Funding Trump's Education Funding Maneuvers Were Illegal, Judges Rule
Judges ruled in suits about teacher-training grant cancellations and withheld education research money.
4 min read
Collage of Trump signing an executive order, money, desks, torn paper, legal pad.
Collage by Laura Baker/Education Week with Getty + Evan Vucci/AP
Education Funding What 'Returning Ed. to the States' Looks Like as the Ed. Dept. Awards Grants
State leaders face requests for letters of endorsement from grant applicants under new priorities.
TahSoGhay Collah, right, teaches a third-grade English learners class at the 700-student intermediate school that serves grades 3 through 5, in Worthington, Minn., on Oct. 22, 2024.
TahSoGhay Collah, right, teaches a 3rd grade English learners class in Worthington, Minn., on Oct. 22, 2024. Researchers seeking federal grant funding to train more teachers to work with English learners requested letters of support from state leaders to submit competitive applications this year.
Jessie Wardarski/AP