New state health benefits law helping Jersey City schools

By Melissa Hayes/The Jersey Journal
March 26, 2010, 5:34PM

Gov. Chris Christie signed a series of state pension reform bills Monday night, including a measure that requires public employees to contribute 1.5 percent of their salaries toward the cost of health benefits. That law will save Jersey City school district millions.

When the Jersey City Board of Education voted down the teacher?s union contract two weeks ago, it didn?t anticipate saving million in healthcare costs.

But that?s exactly what happened. Gov. Chris Christie signed a law last week that would require public employees to contribute 1.5 percent of their salaries toward health benefit costs.

Jersey City Superintendent Charles Epps said the moved saved the district about $4 million, because without a contract teachers will have to comply with the new mandate.

Board of Education Member Gerry McCann, who led the effort to defeat the budget, estimated the savings at as much as $6.8 million and said it would ultimately save jobs.
?If we entered into that contract then they would have been deferred from having to pay in until their contract runs out,? he said. The teachers were seeking a four year contract.

But even with the reduction in health care costs, the district could lay off over 270 people due to state aid cuts, Epps said.

McCann speculated that the number could be even higher than that.

The public will get to weigh in on the district?s budget during a public hearing Monday at 6 p.m. at School 11, 886 Bergen Ave.

Click below to view the proposed budget.
http://media.nj.com/hudsoncountynow_i ... ity%20School%20Budget.pdf

The board has introduced a $618.8 million budget, about $35.5 million less than the current budget.

The budget carries a $102.3 million tax levy, up from $93 million last year. District officials have not calculated how the increase would impact taxpayers.

Jersey City will receive $23.3 million or 4.9 percent less in state formula aid.

Epps said the district is cutting back its adult education program. He said part-time staff will offer night courses at Dickinson High School and limited daytime programs through a federal grant.

The district?s Twilight Program, where students start their school day later, and athletics could also be reduced as district officials finalize the budget, Epps said.
?Everything is being looked at,? he said.