File photo by Teresa Sargeant
Key Points
- The Orange County School Board postponed an impasse hearing over employee pay and health insurance to November 13, after rejecting a special magistrate's recommendations.
- Maintaining current health benefits costs OCPS about $20 million monthly, and the magistrate’s suggestions would raise costs by $68.5 million beyond the district’s proposal.
- OCPS proposed a $40 million transfer for delayed insurance changes and $21 million annually in School Board contributions to support employee coverage.
The Orange County School Board voted Wednesday to postpone an impasse hearing over employee pay and health insurance until Nov. 13, one day after Orange County Public Schools announced it had rejected a special magistrate’s recommendations.
According to a Wednesday district news release, the postponement followed more than two hours of discussion. Attorneys representing the Classroom Teachers Association and Orange Education Support Professionals Association requested the delay, raising concerns about the timing of the proceedings.
The district said maintaining current health benefits costs about $20 million for each month of delay. It warned that continued delays in implementing insurance changes, alongside an existing Employee Benefits Trust shortfall and other financial pressures, could lead to further budget reductions and personnel impacts.
“We realize this long process has caused real frustration and uncertainty to employees,” the district said in its Tuesday release.
OCPS estimated that the magistrate’s recommendations would cost $68.5 million beyond the district’s current proposal, including $57 million for health insurance and $11.5 million in compensation across employee groups.
Combined with $36.6 million in insurance concessions already included in the district’s proposal, OCPS placed the total estimated financial impact at $105.1 million.
The district said the recommendations would leave the Employee Benefits Trust paying more in claims than it receives in revenue.
Among its commitments and proposals, OCPS listed a $40 million transfer tied to delayed implementation of insurance changes and an additional $21 million annually in School Board contributions toward employee coverage.
The district’s proposal also maintains a premium-free, employee-only SureFit option and reduces that plan’s deductibles and coinsurance. Employee-only premiums for the OA Plus Hybrid plan would be $1,172 annually, matching the current employee-only cost of Plan C, according to OCPS.
The district also said it added Garner at the union’s request, at a cost of $4.1 million, to provide eligible employees up to $1,000 in deductible reimbursement.
In announcing the postponement, OCPS said it would continue working with both unions toward a resolution addressing employee concerns and the school system’s financial stability.