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Act 10 Saves Nicolet $418,000 in Benefit Costs

New report says the Nicolet Unified High School District has seen big savings from Act 10, as has Maple Dale-Indian Hill School District. However, Fox Point-Bayside didn't benefit nearly as much.

The controversial state law that eliminated most collective bargaining rights for school employees reduced benefit costs for Nicolet High School District by $418,000 last school year, according to a report released Monday. However, in benefit costs.

The bulk of the savings for Nicolet came from reductions in the district's share of employee retirement costs, the report by the Wisconsin Taxpayers Alliance said. In the 2010-11 school year, Nicolet paid $567,629 toward the employee share of pension costs for workers; in 2011-12, that dropped to about $37,043, a 93.5 percent reduction, the report said.

But the district paid 5.1 percent more in 2011-12 for health insurance costs for a total of $2.3 million, according to the report, which was based on data that public school districts provide to the state Department of Public Instruction. In 2010-11, Nicolet spent $2.2 million on health care costs.

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Fox Point-Bayside paid 6.1 percent more in health insurance costs, but saved 5.7 percet in retirement costs., the report said.

Maple Dale-Indian Hill saw a 4.3 percent savings in health insurance costs as well as a 10.7 percent savings in retirement contributions. Here's the breakdown for each district: 

Health Insurance Costs Employee Retirement Paid by Employer 2010-11 2011-12 $ Change 2010-11 2011-12 $ Change Total Savings Nicolet $2,203,873 $2,316,124 $112,251 $567,629 $37,043 -$530,586 -$418,336 FPBS $1,333,434 $1,414,365 $80,931 $408,989 $385,505 -$23,484 $57,447 MDIH $1,212,496 $1,160,571 $51,925 $310,080 $277,045 -$33,035 -$84,961

$366 million saved statewide

School districts across the state reduced benefit costs by $366 million this year, according to the report, which the organization says is the first in-depth look at the effect of Act 10 and the 2011-13 state budget on Wisconsin schools.

Most of the statewide savings come from districts no longer paying the employee share of retirement, the group said.

Of $366.3 million in reduced benefit costs, $240.7 million — or 66 percent — was from retirement contribution savings. Before passage of the 2011-13 state budget, most school districts and other governmental entities paid both the employee and employer share of retirement costs. Now public workers are required to pay the employee portion of retirement.

Because employees can no longer bargain over benefits under Act 10, many school districts increased health insurance co-payments, required higher cost sharing by employees or changed health insurance providers to reduce costs.

In 2012, public school health insurance costs fell $90.7 million, or 24.8%, from 2011 levels, the group said.

Other highlights of the report:

  • Total school district spending dropped $584 million in 2011-12, with 63 percent of that coming from benefit savings.
  • Lower salary costs saved districts $124.9 million, while other cost-cutting totaled $93.1 million.
  • Reduced salary costs were due to a combination of staff retirements and layoffs. In 2011-12, school districts employed 2,312 fewer staff than in 2010-11, a 2.3 percent reduction.

Report called GOP 'propaganda'

The report was not without some controversy, however.

Soon after it was released Monday, a group called One Wisconsin Now blasted it as "propaganda" to help Gov. Scott Walker as he "prepares to put Wisconsin’s children and public schools further in the hole by shifting resources to planned tax cuts to benefit the rich and corporations."

“Predictably, as Scott Walker begins making the case to hand out huge tax breaks to the rich and corporations, the corporate front group WISTAX tosses out propaganda to support his case,” said Scot Ross, executive director of One Wisconsin Now. “The Wisconsin Taxpayers Alliance is even more Republican thanWisconsin Manufacturers and Commerce, so this is hardly a surprise and their 'findings' should be taken with a grain of salt as big as Scott Walker's campaign finance report."

One Wisconsin Now said its review of campaign contributions made by board members of the Wisconsin Taxpayers Alliance showed that 92 percent of the $1.4 million in  donations went to Republicans.

Bewildered November 13, 2012 at 12:37 PM
Fox Point Bayside school board has some serious explaining to do ,
Michael Schwister November 13, 2012 at 01:37 PM
What will these savings look like a year from now? Act 10 as of now does not exist and three cases making it through the court system are sure to turn out with the same results.
Suzanne Weinstein November 13, 2012 at 02:44 PM
And what was the impact of all this "savings" on the teachers of the districts ? How much was their salary reduced ?
Robert November 13, 2012 at 07:21 PM
The real headline should be: Act 10 imposes $366 Million in new taxes on hardworking middle class folks who happen to be public employees.
Bewildered November 14, 2012 at 09:40 PM
Excuse me? What new taxes? Increased heath and pension (which one gets back) contributions are not taxes. What you want is to return to your good old days where private citizens were paying for public union benifits contributions. Fair Share appears to you to mean we pay your fair share. Well, no more. Join the rest of us in the real world.

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