ORLANDO, Fla. — After a daylong impasse hearing on Friday, a split Orange County School Board in Orlando, Fla., voted 5-3 to push higher health insurance costs onto district employees, siding with staff who said the self-insured plan was running out of money.
District leaders pointed to a projected $145 million shortfall in the insurance fund. Ahead of the vote, the board said the fund was bleeding roughly $20 million a month without bigger contributions from workers. The cost of the fund has climbed 76% over a decade, while premium revenue from employees rose only about 28%, and the district has been tapping reserves to cover the gap.
The change hits paychecks hard. Teachers are set to receive raises between 1.98% and 2.65%, but rising premiums and deductibles will outpace those gains for many. On one widely used plan, the individual deductible jumps from $300 to $2,000 and the family deductible goes from $600 to $4,000.
The vote ends, for now, a monthslong standoff with the Orange County Classroom Teachers Association. Under the softer approach a special magistrate floated, premiums could have risen no more than 20%, with single-coverage deductibles held to a range of $750 to $900. The union accepted that plan, but the district rejected it, saying it would still cost about $105 million.
Five members backed the increases: Maria Salamanca, Vicki-Elaine Felder, Alicia Farrant, Melissa Byrd and board Chair Teresa Jacobs. Anne Douglas, Angie Gallo and Stephanie Vanos voted no. Gallo had asked whether an estimated $40 million from settling property tax lawsuits with Walt Disney World could ease the deductible jump, but district lawyers warned against using that money to solve a structural problem.
The board did agree to route the $40 million to teachers as salary supplements, with details still being worked out. Teachers will vote on the plan, though it takes effect for one year even if they reject it. The decision affects more than 10,000 teachers across Orange County Public Schools.
Section: More Orlando FL education news
Filed under: Orlando FL Education News
