Mandan public schools will move to a fully funded health insurance plan in October.

The Mandan School Board approved the change at its meeting Monday. Premiums will go up 26 percent, and Blue Cross Blue Shield will decide the deductible instead of the district, business manager Joe Lukach said.

Currently, the district has a self-funded health plan administered by Blue Cross Blue Shield with a $1,000 deductible. The plan, however, cannot sustain itself. Each year the district puts money from its general fund into the health insurance account. Over the past three years, it has put $750,000 of general fund money into the health insurance account.

The health insurance committee compared the cost of a self-funded and fully funded health plan in 2005-06, and the fully funded plan would have saved the district money, board member Tim Tausend said. The health insurance committee recommended the change.

Health insurance costs affected negotiations with the Mandan Education Association. The final agreement, which was approved at a special meeting June 13, included a salary package that has the teachers paying for half of the health insurance increase through payroll deductions.

The agreement was approved after minor changes to wording, board member and negotiation team member Kirsten Baesler said. The financial package is the same as what was agreed to at a negotiation meeting June 7, she said.

Teachers will receive $2,595,723 in additional money to pay for salaries, health insurance, Teachers Fund For Retirement increases and co-curricular costs. The salary for a first-year teacher with a bachelor's degree will be $26,825 in 2007-08 and $28,865 in 2008-09, according to the schedule in the negotiated agreement. The 2006-07 base salary for a first-year teacher with a bachelor's degree is $25,600.

The board also considered changes to the plans for the new middle school during an update. A curtain separating part of the cafeteria will become a wall so that sports activities do not disturb fine arts activities, and the board decided it wants a 10-foot asphalt bike path instead of one made of concrete or a five-foot concrete sidewalk. The city is requiring the bike path or a side walk along Sunset Drive. It also approved some electrical changes associated with the wall, the addition of automatic flushing fixtures for the rest rooms in the library so that they match the fixtures in the rest of the school and five security cameras.

Wet weather has delayed work at the middle school site, which was ahead of schedule, but it caused work to progress at the high school on the air conditioning project. That project is about $23,000 overbudget. It will be funded from the interest earned on the bonds.

In other board news, the district is hiring for a principal for Fort Lincoln Elementary School because Principal Owen Stockdill will take the place of Shirley Reed at Lewis and Clark Elementary School. The deadline for applications is Friday, and so far nine people have applied. Board member Tom Arenz will serve on the interviewing committee.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)