Tuesday, July 05, 2011
this report about how those changes resulted in one school district swinging from a $400,000 deficit to a $1.5 million surplus...
According to the article, the district was able to create this $1.9 million swing from raising employee contributions for health care from 10 percent to 12.6 percent (I) and for pensions from 0 to 5.8 percent.
Assuming, for the sake of argument, that the district costs for health http://www.blogger.com/img/blank.gifcare and pensions were evenly split. Averaging the 2.6 and the 5.8 gains works out to an average of the two contributions of 4.2 percent.
In order for a savings of 4.2 percentage points to equal $1.9 million in savings, overall spending on pensions and health care would have to be in excess of $42 million.... which isn't likely at all, given that the district only has 400 employees, as that would mean that health care and pension costs were in excess of $100,000 per employee.
I know that public employees can often have sweet deals, but no deal is that sweet.
Here's another way of looking at it. The district has 4,200 students. Using $10,000 in spending per pupil as a benchmark, that would work out to just $42 million in total spending on education... salaries, maintenance, supplies, etc., .... so there's no way the district could have been spending $42 million on just benefits.
So unless my math logic is wrong, there's something wrong with the story as presented...