The Virginia Beach school district wants to ease a health care cost hike for employees and retirees by possibly providing a stipend later in the year, though who would qualify and how the district would pay for it isn’t clear.
During a special meeting to address the issue this week, the School Board asked for additional information from staff about how to address the issue and pay for potential next steps. The stipend suggestion didn’t come with an estimated cost or proposed funding stream.
The schools announced the increase to personnel and retirees by letter on Aug. 7. It resulted in an outcry, including a lawsuit by 112 workers, as well as claims that information was withheld.
Some Virginia Beach school system health care plan enrollees face hundreds of dollars in additional monthly expenses starting in January.
Superintendent Donald Robertson said officials alerted employees as soon as they knew the severity of the changes.
“This sticker shock was unexpected and sounded an alarm with employees,” he said during the special meeting. “They felt blindsided and wanted to know how did this happen and whether any other actions could have been made.”
Robertson said the schools will do better keeping employees informed.
Staff presented options to offset increases by either a half or a quarter, which could cost the schools more than $4 million or $2 million. During the discussion, some board members asked for information about a possible stipend.
Robertson said perhaps three-quarters of personnel use the health care plan, which could complicate a stipend.
“You would really need to give 100% of the staff the same stipend, or you’re going to have 25% of the staff, which is well over 3,000 employees, who are going to be furious,” he said.
Board members said finding solutions will be a challenge amid rising costs and an uncertain picture for future education funding.
School board member Kim Melnyk said she was interested in a stipend, while understanding the board must address long-term concerns.
In recent years, the schools used a plan fund balance to defray costs, but that resource is dwindling.
“The potential for a negative number there, that’s very scary,” Melnyk said.
Vice Chairperson Carolyn Weems echoed Melnyk’s remarks about caution while attempting to reduce costs.
“When you move one thing to address another, it’s like a domino effect,” school board member Sharon Felton said.
School Board Chairperson Kathleen Brown said the board would like to eliminate the whole increase, “but the reality that we’re faced with is that we can’t actually do that without being extremely risky.”
“We’re going to work toward solutions in other ways to make this more affordable,” school board member Melinda Rogers said.
After the meeting, Virginia Beach Education Association president Heather Sipe said she hoped the board would try to reduce out-of-pocket costs.
“A stipend is going to be taxed before you can get it,” Sipe said. “By the time all the taxes are taken out, it’s a Band-Aid on a gash that needs stitches.”
Tim Anderson, the attorney representing the 112 employees who sued, called the meeting a “dog and pony show” that didn’t stop the increase.
“We’re going to fix it in court,” said Anderson, who is a candidate in a House of Delegates race.
Virginia Beach City Public Schools is a member of the Hampton Roads Educational Telecommunications Association, which holds WHRO's license.
