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Health Benefits Issue

By KWGS News/AP

Oklahoma City, OK – Plan announced to fund Okla. education benefits

OKLAHOMA CITY (AP) Gov. Mary Fallin and legislative leaders will reimburse public school districts for the flexible health benefits paid for education employees during the 2012 teacher contract year.

Fallin, House Speaker Kris Steele and Senate President Pro Tem Brian Bingman released a statement Tuesday indicating they've agreed to find a funding source for the benefits.

With a funding commitment secured, two education associations that threatened to sue are no longer considering litigation.

State School Superintendent Janet Barresi was criticized over a plan to save $33 million by switching from a 14-month to a 12-month accounting system to adjust for teacher contracts that begin in September. Districts believed that left them short of the funding needed to cover employee benefits.

Districts had to pay about $30 million in benefits in fiscal year 2011.