Easing the Burden?

Board of Finance Chairman Mark Smith wants the town to take control of the health insurance, energy and utilities line items by removing them from the education budget.

Speaking to the administration, the school board and an audience of about 30 people, Smith presented the proposal supported by fellow Republicans First Selectman Tim Herbst and Board of Finance member Elaine Hammers. The three did not offer a proposal summary or financial documentation. 

The school board voted unanimously to study Smith’s proposal and establish a committee after the two-hour discussion. The board democrats issued a press release Wednesday urging caution.

Democratic members of the Board of Finance and the chairman of the Town Council were absent. The Council may be asked to vote on this issue as a part of its vote on the education and town budgets on Thursday evening. 

Smith told the board he sees no savings for taxpayers. 

He further called the three items “volatile.” They account for 18 percent of the budget, he noted, and removing them provides residents "better perspective on the cost of the curriculum.”

The proposal calls for the three budget lines, totaling $14.3 million in the current request, to be transferred to the town budget. Neither Smith nor the other spokespersons would say when the transfer would occur or how it would impact the education request as presented by the first selectman to the Board of Finance. 

During the open speakers time preceding board business, Tammy Baillargeon, President of the Trumbull Education Association, the teachers’ union, the largest bargaining unit, asked whether this plan would result in the TEA “subsidizing town employees?” She added that the TEA will respond to changes in cost and coverage they believe may be due to the town’s take over.

Each speaker offered slightly different ideas, with few details, and ultimately, no common or concrete course of action. 

The school board, led by member Lisa Labella, expressed confusion over its terms, benefits and next steps.

The numbers show that the three accounts moderated the growth of education costs. Over the last five years, while total costs rose by 17 percent, removing them raises the figure to 20 percent. The “volatile” health insurance line grew by seven percent, energy dropped by 26 percent, while utilities, which are already purchased by the Town under a common contract, rose by 11 percent.

The discussion did not clarify what the school board’s role would be, whether it lead negotiations or be a participant or an observer. But regardless the outcome, the schools would continue to bear the cost of administration.

Smith did state that “contracts will still prevail, and that unions should have confidence that benefits won’t change.”

He also called the change “an accounting practice,” saying the proposed revision required a straightforward parliamentary action and that “we represent the people.”

Herbst, the first selectman, provided no timeline. When Board of Education member Lisa Labella asked if the Town Council could take the matter up Thursday, Herbst answered that the motion failed at the Board of Finance. He did not offer any more details to answer the question. 

Smith stated that “what the Town Council does is up to them.”

Hammers said that combining some functions was discussed 25 years ago with no action resulting. She said that if all the boards work together “we will find a better way,” and that “the town doesn’t want savings on the backs of the teachers.” 

Hammers called the proposal “unburdening” and a “win-win.”  She wondered if there would be an opportunity to make this a multi-town process or if the state would open its health insurance plan to communities. 

Schools Supt. Ralph Iassogna said the board “would be receptive,” and that they will “continue to pursue efficiencies, continue to operate within their statutory authority and seek to offer better plans for our employees.” 

Member Deborah Herbst added that, “We won’t know if there are savings unless we look at it, but we will not compromise employee benefits. This isn’t a gamble. Co-pays can’t go up.” 

Member Steve Wright, an attorney, stressed the need for a legal opinion to determine whether the board has the authority to enter the proposed collaboration. The board sought but could not use the town’s labor counsel because this would create a conflict of interest. 

Iassogna said he had talked with attorneys from the Connecticut Association of Boards of Education and the state Department of Education and was told that absent a written document to evaluate, neither could give substantive guidance. 

Herbst responded that the town attorney gave an opinion that allows the plan to proceed. Wright noted that an attorney is retained to serve his client, so that would be a predictable outcome.

Neither Smith nor the first selectman favored obtaining an opinion and developing data to determine the proposal’s effect. For example, whether proposed health insurance pooling would hurt or help town employees and education employees.

Ms. Labella asked “if you’re talking about the 2012-13 school year, why is the Town Council deciding this on Thursday?” and continued “we haven’t had the opportunity to study it." 

The superintendent called on Steve Rinaldi, the board’s health insurance consultant. Rinaldi said that 85 percent of premium cost is due to claims experience, so consolidating cannot change that portion. The remaining 15 percent is related to administration and declines as the pool grows. But this is already a part of the existing programs for the two groups, so meaningful benefit is unlikely, Rinaldi said.

The education board was concerned that the district’s average premium is approximately 25 percent less than the town’s, and that education employees would see their costs rise as the town employees’ declines. 

To close the discussion, Labella requested that Smith and Herbst “advocate no decision before the Town Council and that the Board of Education and the town work collaboratively to do what’s best for the citizens and the unions.” 

Labella then made a motion to authorize the superintendent to investigate the benefits of pooling with nearby communities.

Wright said he “made a similar motion four years ago and was laughed out of the room.” He added, “We don’t want this stuffed down our throats Thursday.” 

Board Chair Ted Lovely said “I can’t believe the Town Council would act so quickly,” to which the first selectman said, “this is a 15 month old conversation…we want you at the table, we need you at the table.” 

Labella made another motion to set up a study committee composed of two members from each of the boards of Education and Finance and the Town Council, one from each party. The motion was amended to include the Town’s Finance Director Maria Pires and the board’s Business Administrator, Steve Sirico.

Lovely said he “heartily endorsed” the motion. Herbst asked whether “the board wants a timeline?” Labella replied, “We just need the Town Council to avoid a hasty decision.” 

Both motions carried 7-0.