ORLANDO, Fla. — Schools in Orange County will welcome students again in a month, but teachers still have no contract for the new school year. The teachers union and district leaders are locked in a contract impasse, and now they are turning to a special magistrate for help.

This week the district raised its offer for teacher pay raises from a 1% increase up to an average 2.5% increase, but Thursday’s meeting makes it clear the two sides are still far apart on how to pay for employees’ healthcare.

Tracie Michalski has been a teacher in Orange County for 27 years. She’s very concerned about rising healthcare costs.

“27 years of teaching, and I won’t be able to have insurance,” Michalski said. “There’s not much else to say.”

Michalski is watching closely as attorneys for the teachers union and the school district appear before a special magistrate, trying to iron out differences over how to pay for healthcare for 33,000 employees and family members.

Teachers union attorney Mark Richard says the district’s proposed premiums are so high that employees won’t be able to cover their family members. The district’s “Plan A” previously charged premiums of $5,600 per year for family coverage, and that could jump to almost $17,000 per year.

“I’ve never seen a group of distinguished people, and you all are, have the ability to come and defend a plan that is going to rip apart families’ ability to get health insurance,” Richard said at Thursday’s meeting.

School officials say they must raise premiums and deductibles to avoid a $145 million shortfall this year in the district trust fund that pays employees’ medical bills. Leaders say even with their proposed changes, the district will still have to transfer another $36 million to keep that fund solvent. Scott Howat is the district’s spokesman.

“We’re doing everything that we can within the financial constraints we have to make sure that they have the healthcare they need,” district spokesperson Scott Howat said.

District officials say they have paid $1.7 billion for employees’ medical claims and say that to keep the trust fund solvent the current path is not sustainable.

Michalski says the same about her personal budget.

“This plan means I have no coverage. I can’t do it,” Michalski said.

District officials point out that their People One Health Plan does offer free primary care visits to employees at five locations in Central Florida.

The hearing before the special magistrate will continue on Friday.