Pasco schools announce tentative labor agreement and benefit plan changes after insurance fund shortfall

Superintendent Dr. Legg announced that district negotiators and the United School Employees of Pasco have reached a tentative agreement covering salary and benefits for the 2025–26 school year, and district leaders outlined benefit-plan changes intended to address a shortfall in the district insurance fund.

The tentative deal, as described by Dr. Legg, includes recurring salary and referendum supplement increases averaging a combined 4.5% for most employees, an increase in the district contribution toward each eligible employee’s Florida Retirement System benefit, and higher district contributions to the comprehensive health insurance package. "The board and union party teams have reached a tentative agreement on significant salary and benefit increases for the 25, 26 year," Dr. Legg said. He added the agreement is subject to board approval and employee ratification.

The district’s insurance committee reported the insurance fund for fiscal 2025 incurred a loss resulting in a $13,000,000 deficit with operating expenses totaling $110,600,000. Committee members said the deficit required changes to the 2026 benefit plan to reduce expense and increase revenue. Committee discussion and staff presentations described the district’s estimated cost of the board benefit package as $98,400,000 and noted the district will increase its per-employee contribution from $8,700 to $9,442 per year.

Key items explained to the board include: - Teacher minimum full-time starting salary raised from $50,000 to $51,000 per year; Dr. Legg said current teachers who earned a year of Pasco service credit for 2024–25 will see an average 2.4% base salary increase plus a referendum supplement increase averaging 2.17%, for a total average increase of 4.57% for the 2025–26 year. - Service-related personnel (SRP) increases averaging 2.47% base plus a 2.17% referendum supplement increase, bringing the total average to 4.64% for 2025–26. - The district will absorb an additional 0.4% increase in the FRS employer contribution rate and raise the district's total annual per-employee benefit contribution by $742. - Employees selecting the employee-only health plan will pay between $9 and $18 per pay period for coverage under the new plan design.

The insurance committee also announced operational changes: the district is moving pharmacy benefits to CVS Caremark with an open-network model so employees will not be restricted to a single pharmacy; the plan will emphasize lower-cost generic options for higher-cost medications. The district also described a new outside support partnership with FedLogic designed to help staff access services that could reduce out-of-pocket costs. Open enrollment is scheduled to begin Oct. 1; staff said specific plan details would be communicated to employees the week following the meeting.

Mr. Larson, identified in the meeting as representing United School Employees of Pasco, thanked district negotiators and described the negotiation process as professional. "The United School employees of Pasco really appreciated working with the district throughout the bargaining process," Larson said. Dr. Legg and other staff said, if the board approves formal ratification and employees approve the contract, finance and HR will work to implement pay changes as quickly as possible.

Board members and staff told the board they will continue follow-up steps required by law and by bargaining timelines, including presenting required documents to the state by statutory deadlines. Staff also reminded the board the district must maintain reserve levels to cover claims processing and reimbursement obligations.

The tentative agreement and benefit-plan changes will require further board action or ratification before they take effect; Dr. Legg described the announcement as a tentative settlement pending the board’s and employees’ formal approvals.