Coverage change to save district money.

A 1-year extension in the teachers' contract with the Leland school district was approved this week by the Leland Board of Education.

Board members voted unanimously after a brief closed-door session to adopt a change in drug coverage that will save the district an estimated $14,000 for the remainder of the 2007-08 school year.

“The change (from a $5 to $10 copay) will allow us to more than pay for the extension,” Superintendent Mike Hartigan said.

The previous contract, which would have expired at the end of the current school year, provided a 1.5 percent increase for members of the teaching staff on the “step” pay scale, which determines compensation based on education and years of service; and a 2 percent increase for those at the top of the scale in terms of longevity.

“By far, the lion’s share of insurance coverage (25 percent) is attributed to prescription medication coverage,” Hartigan said.

Members of the Leland Education Association ratified the contract extension last week. The new contract will expire at the conclusion of the 2008-09 school year. Possible changes in insurance coverage for the district’s support staff will be discussed at a later date.

The extension was part of more news provided by Hartigan in the area of benefits. He also reported that recent changes in state law will allow school districts to access the claims history of its insured group. The information will be used to actively bid for insurance coverage and realize cost savings.

“We could possibly bid health insurance coverage with other county schools and realize a savings,” Hartigan explained. “The larger the pool, the more attractive the bid will be … It will allow us to look for different ways to insure our employees.”

In other business during the 90-minute monthly meeting, the board amended its 2007-08 budget to reflect an additional $200,000 in revenues and expenditures for the district year to date.

Revenues were increased 4.8 percent from $4,383,845 to $4,606,034, reflecting the $75 increase in per-pupil foundation allowance approved by the state Legislature after the budget was adopted in late June. Leland also received a total of $44,522 from the Suttons Bay and Northport districts to cover the cost of a music teacher, employed jointly by the three schools but paid by Leland.

On the expense side of the equation, higher than anticipated enrollment this year necessitated hiring additional staff and the purchase of additional textbooks and materials, which totaled $134,492.