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PVUSD takes pride in the exceptional medical, dental and vision programs offered to employees and their families. With the continued rise in healthcare costs, the District has had to closely monitor the expenses, with two goals in mind: continuing to offer a generous insurance package to employees and remain at or under the approved budget.
 As the rising cost of healthcare continues to be discussed on a national basis, the PVUSD has worked hard to maintain costs. However, this next year the cost of health benefits used by employees will have more than tripled what was budgeted.
When the costs of insurance exceed the budgeted amount, the choice is to either cover the overrun from remaining money in the General Fund (if available) or look for ways to lower the costs of our medical plan. The Districts budget cannot support the increase to the District’s health care expenses, so we will need to decide how we can make changes with the least impact to al in our medical plan.
As of now, PVUSD benefits are running a deficit of over $1.3 million for next year. The benefits encroachment for the two prior years has been approximately $2 million per year. Over the next three-year period this comes to $5.3 million in excess of what has been budgeted.
On June 5, 2007, the Benefits Committee met with Bob Schoenherr of Keenan and Associates. The group reviewed the expenses and looked at several of the suggestions for maintaining a top-notch plan while not encroaching on the district budget by keeping costs within the budgeted amount. This was a very preliminary review. Representatives from Classified and Certificated unions as well as Management were in attendance, and all the information provided at the meeting will be brought back to negotiation teams for review. Mr. Schoenherr is willing to make himself available to the groups if more information or clarification is needed.
It is important for PVUSD employees to know that no decisions have been made regarding any change in benefits, that affect level of service and none will be made outside of negotiations.
It is also important to understand that the District cannot continue to support the additional costs of health benefits from the District Budget, as this is money already earmarked for other uses, and will remain so. This means that the costs of benefits must stay within the budgeted amount.
Your current benefits will not change as the District works with the Benefits Committee to find solutions. As always, smart use of your medical benefits will help control costs and minimize plan changes.
Please contact your union representative if you have any questions about the various suggestions presented at the Benefits Committee meeting or would like any additional information.
Mary Hart
Associate Superintendent of Business
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