Union law helps Appleton schools balance budget
Post-Crescent
Kathy Walsh Nufer
"We will be able to balance the budget despite a decrease in our revenue limit of $7.8 million and a decrease in our (state) equalized aid, which is down about $8.4 million," Don Hietpas, the district's chief financial officer, told the Board of Education's business services panel Tuesday.
Hietpas said the reduction in the district's taxing authority will be covered largely by the $7.5 million more employees will pay toward retirement and their health insurance premiums.
A new state law that eliminates most collective bargaining powers for most public employees also requires them to pay more toward their pension and health care benefits.
District employees will contribute 5.8 percent of their pay toward their pensions.
As part of their current one-year contract extension, Appleton Education Association members have agreed to pay 12 percent of their health insurance premium (previously it was 5 percent). The school board voted last week to allow the secretarial/clerical and paraprofessional groups to pay a 9 percent premium share rather than 12 percent because they are paid at lower salary levels than teachers and administrators.
"The reason we can balance the budget is because every employee in the school district is taking home less in pay next year," Hietpas said.
In addition to cost reductions for retirement and health insurance benefits, the district will save $3.1 million because of a reduction in fees charged by health insurance carrier WEA Trust and $1 million due to the retirement of more than 90 teachers.
Veteran teachers typically earn higher salaries and the district is not filling all of the staff vacancies due to retirements because high school enrollments are expected to be down this fall.
Hietpas said Appleton's
levy will drop by about $700,000, which means a slightly lower tax rate for school purposes.
