Changes in the Red Plan:

Short Version: We agreed to go from Silver Plan to Red Plan in 2009, allowing the district to pocket the savings in exchange for the Red in full for three years.  CUSD has failed to budget for the impact and effects of changes in the 2011 Red Plan and appears unwilling to participate in negotiations.  This issue does not appear to be headed for a logical resolution, and we ask that members keep close records of medical spending and stay informed.

Long Version: In 2009 CUTA moved to a reduced medical plan, saving the district greatly.  In 2011, believing the district's claims of financial ruin, teachers endured even more severe increases in health costs while CUSD paid no mitigation in return.  In a December 2010 Demand to Bargain, CUTA first made reference to the possibility of changes in the Red Plan.  We then reminded CUSD that we were in the middle of a three-year agreement to provide teachers health benefits as offered in 2009/2010.  

We filed another Demand to Bargain dedicated solely to this issue in February 2011.  At that time, CUSD questioned our filing prior to the JPA having actually finalized any changes.  Our response was that we were anticipating significant impacts and effects and were hoping to get a jump on negotiations.  Nonetheless, at CUSD's request, we waited for the official changes to be announced on March 31st before meeting.  

While CUSD had stated that it was important to delay discussion as to be able to value the changes, at that first negotiation in May, the district was reluctant to quantify the financial ramifications.  CUTA suggested using either the approach the district had relied on last year or perhaps the calculation method our union had utilized.  (Last year when the Red Plan was downgraded, both sides valued the impact at $301k, and the district made that figure a component of their assumptions for 2010/2011.)  Even so, CUSD and CUTA failed to agree on the value of the changes.  CUSD expressed their belief that the impacts should take into account individual impacts rather that a lump sum as before.  To satisfy the district, CUTA presented the district with a concept that had each teacher tracking our additional costs under the modified, 2011, Red Plan.  

When we returned to the table on June 6th, CUSD brought no suggestions or counters and rejected our concept.  At the conclusion of that June session CUTA prepared an official proposal giving CUSD two options valuing and mitigating the impacts and effects.   Before meeting again, CUSD drafted and approved a budget for 2011/2012 that DID NOT INCLUDE ANY MITIGATION for the changes in the Red Plan.  When we returned to the table June 21st, CUSD again rejected our offer and had no proposal of their own.  (The District claims that regardless of their substantial beginning balance ($19,000,000) they cannot afford mitigation without the passing of a State budget.  Now that it appears that a State budget has been passed it remains to be seen if CUSD will move to honoring their obligations.) We cancelled of June 23rd meeting after CUSD let the teachers know that they would again be showing up empty handed.  

This week we have invited the district to join us in filing for impasse.  We are questioning the District's sincerity in participating in the process and are concerned that CUSD has no intention in honoring the three-year agreement from 2009 that saved the district over almost $2,000,000 while giving teachers the security of a reliable, albeit reduced, plan.

Unfortunately for teachers, next year may once again start with an ugly dispute overshadowing what should be a school year to look forward to.  Please keep informed, track your medical expenses, and contact your bargaining team with any questions.