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School district to spend money from projected health-care savings

The district believes it be victorious in a court battle with the teachers’ union over benefits changes.

CALL IT a leap of faith or call it a risky move.

The Philadelphia School District announced yesterday that it would distribute $15 million to schools on Monday from projected health-care savings with the teachers union, despite an injunction temporarily blocking the changes.

Common Pleas Judge Nina Wright Padilla last week ruled in favor of the Philadelphia Federation of Teachers' request to stay all changes to their health-care benefits. The district and the School Reform Commission said they would appeal the decision.

"[No. 1], we believe that we will prevail in our case and that we'll be able to put these changes forward at the end of the process," district spokesman Fernando Gallard said. "Two, we are taking a risk that we believe is worthwhile, given that our students are facing some very urgent needs in the classroom."

The district and the SRC have filed a lawsuit in Commonwealth Court, asking the court to affirm its authority to impose the changes.

The district said the new health-care benefits would save an upward of $50 million this year and more than $200 million over the next four years, money that's desperately needed for schools lacking basic resources such as counselors, full-time nurses and classroom supplies.

Some schools have already decided how they will allocate the money. As an example, Academy at Palumbo High School in South Philadelphia has opted to use part of the money it will receive to retain a teacher it otherwise would have lost, and to purchase additional books and instructional aides, Gallard said. Moffet Elementary in North Philadelphia plans to hire noon-time aides to free up the principal to observe and support teachers.

If the district does not win in court, Gallard said officials will have to decide how to recoup the money. "The options are you look for cuts in other places or you carry forward a deficit," he said.

The district plans to distribute another $15 million in early 2015 and $13.8 million in April. Schools will receive the money based on enrollment and overall performance.