Monday, March 21, 2005

SL Teachers Contract, Health Insurance, and Tax Levy

SL school district teachers are reported to be getting salary increases of 12.85% over the next 3 years. 3.97% the first year, 4.38% the second year, and 4.5% the third year. If recent economic trends oflow inflation remain the same, these increases are not too bad. For those that don't know, typically in our school district, not all teachers get those specific percentage increases. Usually, teachers with greater than 10-15 years of experience get significantly larger increases than teachers with less than 7 years of experience. Not surprisingly, since salaries account for about 70% of the school budget, these increases are going to result in property tax increases likely above the rate of inflation. SL could have a tax levy increase next year of 6%. This will not only be due to salary increases, but increases in contribution to the state retirement system (because the stock market is not doing that great) and increases in health care premiums. If nothing has changed in the last several years, it is likely that SL school district employees still do not contribute to their own health insurance. This is almost unheard of today in most businesses. How much lower would the tax levy be if school employees had to contribute 10% of the cost of their health premium?

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