A planned vote on teacher contracts in Orange County was postponed Wednesday.
The school board was supposed to take up a months-long contract dispute with the teachers’ union, which was at an impasse because of health insurance benefits.
The fight has been at an impasse since April. A special magistrate was called in to broker a resolution, but the district rejected the recommendations Tuesday, saying it cannot afford them.
What the magistrate proposed
The magistrate recommended capping health insurance premium increases at 20% and setting individual deductibles between $750 and $900 — far below the district’s proposal of $2,000 to $3,000. For family coverage, the magistrate recommended capping deductibles at $1,800, compared to the district’s proposal, which could reach $6,000.
Last week, the magistrate said the OCPS proposal would “create undue financial hardship” for teachers.
Why OCPS said no
The district says the magistrate’s recommendations would add $105.1 million in costs to a budget already strained by declining enrollment and insufficient state funding.
“The Special Magistrate’s recommendations add $68.5 million in costs, bring the overall impact to $105.1 million, still does not resolve the Employee Benefits Trust’s structural imbalance and puts future employee claims at risk. ”
Orange County Public Schools
The teachers’ union has denounced the district’s proposal, arguing it would amount to a pay cut.
The school district said each month a decision is delayed costs the district about $20 million.
Following the meeting OCPS in a statement says:
” Following more than two hours of discussion, the School Board voted to reschedule the impasse hearing to Nov. 13, at the request of legal counsel representing the Classroom Teachers Association (CTA) and the Orange Education Support Professionals Association (OESPA), who raised concerns regarding the timing of the proceedings.
District leaders continue to prioritize finding a path forward that addresses employee concerns while maintaining the financial stability of the school system.
Each month of delay costs approximately $20 million to maintain current health benefits. Combined with an existing Employee Benefits Trust shortfall, declining enrollment and insufficient state funding, those costs are not sustainable and could result in additional budget reductions and personnel impacts if left unresolved.
The District remains committed to working collaboratively with CTA and OESPA toward a fair and responsible resolution that supports employees while protecting the resources and services students depend on every day.
OCPS will continue to provide updates as the process moves forward.”
Meanwhile, the union says they could try to bring charges against the district for unfair labor practices.
The union issued this statement to News 6 on Wednesday:
“The district is trying to make employees pay for its mismanagement of the health insurance trust while avoiding accountability for its own decisions. Our educators did not manage this trust, yet they and their families are being asked to bear the consequences. In its latest News You Can Use, the district claims that ‘each month of delay costs approximately $20 million to maintain current health benefits.’ What it refuses to acknowledge is that it is seeking to shift that $20 million onto teachers and support staff through higher premiums, higher out-of-pocket costs, and reduced claims when employees skip care they can no longer afford.”
A new date for the vote will be set soon.