COEUR d'ALENE - Observers of teacher contract talks Thursday in Coeur d'Alene might say the honeymoon is over for the Coeur d'Alene School District's newest trustees and new superintendent.

During a three-hour negotiating session at Lakes Magnet Middle School, the discussion veered away from the usual bargaining table topics of budget, salaries and benefits. Talk turned tense, following a financial presentation and proposal by the Coeur d'Alene Education Association's negotiating team.

"The proposal that you're making, I don't think it does anything to balance the budget as we're legally required to do," said board chair Tom Hearn.

Hearn said he understands that teachers have gone without a raise for several years, but he acknowledged that most of them kept their jobs during the recent recession, unlike many in the private sector.

It was the second meeting of the negotiating teams since the May election shakeup that landed three new trustees in control of the school board. Hearn and Christa Hazel, vice-chair of the board, were sworn in July 1, and are new members of the board's negotiating team.

"We want to work with you in good faith, but we have to be fiscally responsible," Hearn said to the teachers.

The first bargaining session Hearn and Hazel participated in was held July 15, and at that meeting, the board's team proposed a health insurance plan that would raise the deductible from $200 per person/$400 per family, up to $750 per person/$1,500 per family. The district would reduce the amount it contributes monthly toward the family premium from $700.38 to $677.60, and increase the premium contribution of an employee with a spouse and children's premium contribution from $986 to $1,003. It would save the district $929,000. Claimants would be responsible for 20 percent, rather than the 10 percent, of the coinsurance.

The proposal was made along with a financial presentation that dropped an anticipated $3 million budget shortfall down to $1.5 million.

It was a brighter budget picture than the district presented prior to the election, and an insurance proposal with less teacher concessions.

Teachers union representatives gave their own financial presentation Thursday, comparing last year's expenditures with those budgeted for this year. They pointed out increased expenditures, and pulled $3.4 million from a variety of budget areas, such as $120,000 added for building care. Those funds could presumably be used to pay for higher insurance premiums and salaries.

"Tesh was supposed to save $120,000," said Tim Sandford, the teachers union lead negotiator, referring to a contract the district entered into last year with Tesh, Inc., an organization that provides employment opportunities for individuals with disabilities, and offers custodial service.

Wendell Wardell, the district's chief operating officer, explained that overall, the district's building care, maintenance and ground expenditures are actually $207,558 lower than they were last year.

Wardell went through each of the budget areas the teachers pointed out, and explained many of the increased expenditures in a similar way.

The teachers union also proposed maintaining the district's existing health insurance plan, and applying an anticipated insurance rebate to the increased cost of coverage, expected to be about 11 percent.

"I'm heavy-hearted as I sit here across from my friends in the CEA," said Christa Hazel, following the teachers presentation. "I feel like the two sides are farther apart than ever."

She said she understands that the teachers don't trust the board's team.

Sandford said they would work through this, through the negotiating process.

"I can guarantee you that this team will keep in mind the financial health of the district," Sandford said.

Superintendent Matt Handelman said the teachers union's presentation felt like a public accusation that the district's administration and board was trying to hide money.

Sandford said they never said that. He said they were simply pointing out what they saw.

"Trust is something that is built. We trust you guys far more than we have others," Sandford said. "We don't know Wendell very well."

Wardell just started his second year leading the district's financial operations.

The need for better communication about, and understanding of, the budgeting methods being used was discussed.

Derek Kohles, a member of the negotiating team for the teachers, said it felt as if one side was using the metric system and the other side was using standard measure.

Before the session ended, Christa Hazel said she felt that despite their differences, they were all in a good, exciting position.

"The election gave you a mulligan, so let's take it," Hazel said.

Negotiations continue from noon to 3 p.m. today at Lakes Magnet Middle School, 930 N. 15th St.