PARKLAND HAS TEACHERS CONTRACT 1 YEAR EARLY

The Parkland school district has agreed to a contract 9 months ahead of schedule. The new contract will take effect on September 1, 2016. This is the usual 3-year contract that includes a salary increase of 2.4% each year.  This is in line with what has been the norm for most other districts in the area. Some say that they were glad to get the contract early as economic clouds are on the horizon and with lay-offs beginning at some large local firms.

Their health insurance plans resemble the C and D plans currently offered by Northwestern Lehigh school district. It appears that most of the districts are attempting to hold down these costs, particularly since their pension costs are rising to more than 29% of salaries for the coming year.

These pension costs have been part of the hold-up on the state budget as they are not sustainable.  The only real answer is a 401k-type plan with defined contributions by the school districts. The pension fund has a $60 billion deficit that is growing, while the economy is probably at the high point in this economic cycle. The pension fund must be reformed if it is to survive.