School District, Teachers Reach Interim Agreement on $4 Million Savings

The Wauwatosa School District and the Wauwatosa Education Association (WEA) have reached an interim agreement on a financial response to the proposed state budget.

The agreement, which will save over $4 million in wages and benefit costs, is not an extension of the current contract with the teachers’ union. In the interim agreement, the Wauwatosa teachers agreed to make contributions to the Wisconsin Retirement System and to modify the current health insurance coverage to a high deductible health plan (HDHP). In addition, teachers’ current salary levels would be frozen for the 2011-2012 school year.

“The teachers have been cooperative partners in helping to address the projected budget shortfall in a meaningful and substantial manner," Superintendent Phil Ertl said. "This agreement allows us to minimize the impact of any budget reductions on the education we provide to our students.”

The agreement calls for teachers to pay half of their retirement benefit costs for a total of $1.95 million; forgo salary increases in the amount of $1.37 million; and allow the implementation of a HDHP which will generate a total savings of almost $1 million across all employee groups and current retirees.

In exchange for this agreement, the district agreed to provide certain teachers a one-time stipend to compensate them for coursework that has been in progress during the 2010-2011 school year. The district also agreed to maintain its current post-retirement benefits for one more year.

“This interim agreement allows our community to maintain the people and resources necessary to continue to provide a quality education for our students,” said Debbie Brent, president of the local teachers’ union.

The district is exploring similar agreements with its other employee groups, some of whom have settled agreements valid through June 30, 2013.

“If we are able to reach similar agreements with all our employee groups, the district will be able to save $5.2 million. That savings includes my recommendation that the board adopt the same benefit changes, retirement contributions and a wage freeze for all administrators.”

The proposed agreement will be presented to the School Board for discussion on May 9 and voted on at the May 23 board meeting.