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ThoughtsOnline

Tuesday, July 05, 2011


I'm as big a fan as there is of the changes Wisconsin made earlier this year, but there's something that doesn't add up in 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...