As Montgomery County in Maryland confronts a likely $250 million budget deficit by 2010, the Superintendent and School Board President claim labor contracts with teachers may need to be renegotiated. The union (which is in its second year of a three year contract) claims it will not renegotiate based on economic predictions, even as fears that the contract cannot possibly be funded mount. County Council members argue that cuts and adjustments must be made in labor contacts in order to avoid cutting important public services. Labor intends to wait until confirmed economic data is available before bargaining new terms.
See "School System Cannot Afford Raises, Chief Says", Daniel de Vise and Ann E Marimow, The Washington Post, October 6, 2008