GLOVERSVILLE - The Gloversville Teachers Association has filed a grievance against the Gloversville Enlarged School District, claiming the district improperly changed health insurance plans for district teachers and retirees.
The two sides are negotiating a new contract, as the last one expired in June.
GTA President Patricia Donovan said while the issue may be resolved in mediation, the GTA filed the grievance because the district changed the health insurance plans without the GTA's approval.
"A grievance is not filed lightly," she said. "The contract states [any alternative health insurance plan] must be equal to or better than [the current plan]. The district is saying it is, but that's not true."
The district has removed the indemnity plan, also known as the Cadillac plan, and replaced it with a PPO plan for active teachers and retirees under age 65.
Retirees older than 65 have been given a Medicare Advantage Plan.
District officials contend the new plan is equal to the indemnity plan, but Donovan disagreed. She said less is covered under the PPO plan.
A notice of claim was also filed on behalf of district retirees because the Medicare Advantage plan offered to the retirees is not equal to the plan offered to active teachers, which is required according to their contract, Donovan said.
District officials said the switch was made to save the district money - more than $1 million. It potentially will help to avoid further layoffs during this budget session, said Board of Education President Pete Semione.
Donovan said while the teachers are aware of the difficult financial situation the district and taxpayers are facing, the school broke protocol by arbitrarily switching health insurance plans and a grievance had to be filed.
"[The district] is trying to portray it like we don't want to change our plan and don't care how much it costs," she said. "That is not the case. We just want [the district] to follow the proper procedure."
Semione said the district cannot afford the indemnity plan.
The indemnity plan costs as much as $25,000 for family coverage and includes a $2,000 lifetime deductible. Once the $2,000 is met, there are no co-pays.
"We're limited in what we can do," Semione said. "The resources just aren't there and the taxpayers are at their limit."
Superintendent Robert DeLilli agreed.
"If state aid numbers [weren't being cut], we wouldn't be having this conversation," he said. "But our resources are limited and flat."
Business Manager Steven Schloicka said the district is on track to lose more than $1 million in state aid for the next school year.
The approximately 30 teaching positions that were cut last year will help to avoid further cuts this year, Schloicka said.
He cautioned that all options remain on the table. DeLilli agreed.
"Hopefully, we won't have to make further cuts," DeLilli said. "But it is possible."