ORLANDO, Fla. — Orange County Public Schools is facing major budget problems, and one of the biggest issues right now is health care. The district and the teachers’ union are now at an impasse, with school board leaders saying they’re running out of time to make critical decisions.
At the center of the issue are rising health care costs and a proposed less than 1 percent pay increase. Teachers say that a small raise doesn’t keep up with rising insurance costs and could actually leave them taking home less money.
Meanwhile, the district is waiting on the state to finalize the budget before it knows exactly how much money it has to work with, leaving negotiations in limbo. The Orange County School Board held a work session Tuesday where officials talked about the financial pressures that have been building.
District leaders say they’re dealing with declining student enrollment, rising operating costs, and spiking health care expenses.
“We’re looking at programs like Lantern, Gardner, Quantify, any of those programs that can help us raise the level of care we give while reducing costs,” said OCPS Board Member Angie Gallo.
Those are health care companies Gallo says they are looking at to cut costs, including how health care plans are structured, as they try to keep the employee benefits trust from falling behind.
“It’s unaffordable. There is no doubt in my mind that they have to choose between putting food on the table or the insurance, which is why we are working really hard to provide some of those low-cost alternatives,” Gallo said.
Board members are also looking at broader cuts, including program changes and how school buildings are used. But talks with the teachers’ union broke down, leading to an official impasse.
Orange County Classroom Teachers Association President Clinton McCracken sent a statement, calling the district’s decision to declare impasse “deeply disappointing,” and saying a less than 1 percent raise, combined with higher insurance costs, would amount to a pay cut for many educators.
Adding to the uncertainty, the state still hasn’t finalized its budget, leaving districts without clear funding levels.
“The budget should have been passed in March. It’s almost into May, and we still have no budget. It does create a challenge when we are building out our budget when we don’t yet have the numbers from the state,” Gallo said.
Gallo says she’ll be speaking directly with the community, hosting a town hall Wednesday night at 6 p.m. at Riverdale Elementary School to hear suggestions from the public and teachers on this matter.
If costs can’t be controlled, one of the district’s biggest concerns is teacher recruitment and retention. Gallo says if benefits become too expensive, it could make it harder to keep and attract educators, adding the board is now looking at all of its options to make sure those benefits can still be funded.
The Orange County Classroom Teacher’s Association issued a comment on the negotiations.
“The district’s decision to declare impasse and walk away from the table is deeply disappointing, especially when the state has not yet provided a final budget and the district had not even shared the data needed for us to cost out a salary proposal. The district’s proposal of a less than 1% raise and massive increases to insurance costs would result in a pay cut for many educators, while key questions about spending and priorities remain unanswered. The district once again mentioned the $119 million Disney lawsuit as a factor influencing its offer.
We have put forward multiple cost-saving solutions and will continue to press for their full consideration before any additional insurance costs are shifted onto educators. Our educators show up every day for this community and our students, and they deserve transparency, fairness, and respect. Our members are united, and we will continue to advocate for what our students and educators need.”