Shamokin Area School District

Informational Session

January 26, 2016

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September 8, 2015SASD Proposal• Date of Union’s 1st Strike Commencement• Salary Increases• 2013-14 Freeze• 2014-15 Freeze• 2015-16 $5000 (prorate based on hired date)• 2016-17 $2000• 2017-18 $2000

• Alternative Offer: contingent upon increasing class size• 5% monthly tiered plan premium share• Tuition reimbursement limit to $100,000 annually• August 26: Freeze; Freeze; $3500; $1200; $1200 and 6%

monthly tiered premium share; cap professional development 2

School Board MeetingSeptember 15, 2015

* Negotiation Committee agrees to meet after meeting

The union representative stated that she has one message and that is that class size does matter and they will not give in. Furthermore, no amount of money is going take class size away from the teachers. Class size matters to them and the public. They will not accept any offer on the table that involves class size.

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September 15, 2015SASD Proposal• Remove class size proposal• Salary Increase• 2013-14 Freeze• 2014-15 Freeze• 2015-16 $5000 (prorate by hired date)• 2016-17 $2000• 2017-18 $2000• Or alternative offer giving the Association discretion to create a

five-year contract period such that salary base increase does not exceed $1.4 million in total wage increases

• 5% monthly tiered premium share• Professional development $100,000 annual cap

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September 18, 2015

School Board files Petition for Preliminary Injunction

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September 23, 2015

Judge Wiest granted the District an injunction that the Teacher’s Association is directed to return to work on Thursday, September 24, and ordered parties to enter into non-binding arbitration.

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December 8, 2015Final Best Offer exchanged by

the parties.

December 18, 2015Non-binding Arbitration heldPackage only

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Proposed increases

salary increase above 2015-16 base of $7,295,373

SAEA proposed increase

SASD proposed increase

13/14, 14/15, and 15/16 1,711,500$ 895,000$ 16/17 1,483,208$ 1,253,000$ 17/18 1,988,336$ 1,611,000$ 18/19 2,428,176$ did not propose 8

January 12, 2016Decision rendered

“The District’s offer of no salary increase for the first two years of the collective bargaining agreement is simply too severe an alternative, considering the already low salaries of Shamokin teachers, relative to surrounding districts. While the Panel does not give short shrift to the District’s financial handicaps, we must, essentially, chose between two alternatives, neither of which is attractive. The Panel does not choose the Association’s last offer because it is the best alternative; neither party’s last offer is the contract this Panel would have drawn up, had it been given the freedom to do so.”

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January 12, 2016 Decision Rendered – cont’dSplit vote 2-1 for SAEA Salary proposed summary:a. 2013-14 school year, bargaining unit members receive $1,000;b. 2014-15 school year, bargaining unit members receive $1,750;c. 2015-16 school year, bargaining unit members receive $2,500;d. 2016-17 school year, the District will implement the following salary schedule. All bargaining unit members will be placed in the Bachelor’s column. Bargaining unit members whose salaries are beyond the salary schedule will receive a $1,000 increase to their base salary in each of the remaining three years of the contract. This will result in a payroll of $7,754,718.

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e. 2017-18 school year, the salary schedule will reflect a payroll of $8,136,518, plus any columnar movement. The entry-level (Step One) will be deleted, to reflect an nineteen (19) step schedule.

f. 2018-19 school year, the salary schedule will reflect a payroll of $8,507,918, plus any columnar movement. The entry-level step (Step One) will remain deleted, to reflect an eighteen (18) step schedule.

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January 19, 2016 Motion 6.21

salary increase above 2015-16 base of $7,295,373

SAEA proposed increase

SASD proposed increase

motion 6.21 increase

13/14, 14/15, and 15/16 1,711,500$ 895,000$ 805,500$ 16/17 1,483,208$ 1,253,000$ 1,483,208$ 17/18 1,988,336$ 1,611,000$ 1,817,362$ 18/19 2,428,176$ did not propose no proposal

sum to 17/18 5,183,044$ 3,759,000$ 4,106,070$ 12

PSERSEmployer Contribution Rates

Fiscal YearTotal Employer Contribution Rate

%

2011-12 8.65

2012-13 12.36

213-14 16.93

2014-15 21.4

2015-16 25.84

2016-17 29.69

2017-18 30.62

2018-19 31.5613

Current Healthcare Plan

* Capital Blue Cross PPO $0 deductible

* 1% of salary is current contribution

If a teacher’s salary is $45,000, then the annual contribution is $450 or $17.30 per pay period.

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SASD Proposal for Employee to pay 5% premium share

Tier2015-16 Yearly Cost to

District5% Premium share per year

Amount deducted from each pay period

SINGLE 8,148$ 407.40$ 15.67$ HUSBAND & WIFE 17,904$ 895.20$ 34.43$ PARENT & CHILD 11,400$ 570.00$ 21.92$ PARENT & CHILDREN 15,468$ 773.40$ 29.75$ FAMILY 22788 1,139.40$ 43.82$ 15

1% Salary compared to 5% Premium Share

Using 15-16 base salary of $7,295,373, the 1% of salary would yield $72,954.

Using current 15-16 enrollment, the 5% of tiered premium would yield $139,643.

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Revenue and Expenses

• 2015-16 Final Budget

2015-16 budget is in the amount of 32,314,272$ estimated revenue 28,687,795$

general fund to balance the budget 3,626,477$

Actual 2010-11 2011-12 2012-13 2013-14 2014-15

Revenues $ 28,755,639 $ 28,958,929 $ 28,910,232 $ 27,479,496 $ 27,945,022

Expenses $ 30,325,640 $ 30,202,293 $ 27,518,023 $ 26,655,564 $ 27,040,426

Per audit as of June 30 (end of school year) per AFR

GF Balance $ 7,326,824 $ 6,085,510 $ 7,577,968 $ 8,182,337 $ 8,413,723

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General Fund Balance

General fund Balance SAEA SASD

AFR eoy 6/30/15 $ 8,413,723 $ 8,413,723

general fund revenue to balance 15/16 final budget $ (3,626,477) $ (3,626,477)

13/14, 14/15/ 15/16 proposals $ (1,711,500) $ (895,000)

Estimated EOY 6/30/16* $ 3,075,746 $ 3,892,246

16/17 proposals $ (1,483,208) $ (1,253,000)

Estimated EOY 6/30/17* $ 1,592,538 $ 2,639,246

17/18 proposals $ (1,988,336) $ (1,611,000)

estimated EOY 6/30/18* $ (395,798) $ 1,028,246

18/19 proposals $ (2,428,176) no proposal

estimated EOY 6/30/19* $ (2,823,974) 18

Comparison…

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2 016 -1 7: $20 00 in cre as e

2 01 6-1 7: 20 s te p S A EA sch ed u le (a l l o n bac he lo rs) p lu s 1 3 t eac he rs re d

c i rc led

20 16 -17 : 20 s tep s ch e du le ( all o n ba ch e lo rs) pl us 13 t e ach ers re d

ci r cl ed

2 017 -1 8: $20 00 in cre as e

2 01 7-1 8: us e 1 617 S AEA sc he du le

a dd st ep ($ 130 0) a d d h oriz on ta l m o vem e nt as p er e xpi red

a gr eem e nt (6 c o lu m n s ); re d ci r cled in c rea se $1 000

20 17 -18 : 20 s tep s ch e du le a dd

ste p p lu s o n sca le i nc rea se ($ 23 00) ; ad d hor izo nt al

m ov em ent (8 co lum n s); red ci r cl ed incr ea se $10 0 0

2 018 -1 9: no pr opo sa l 2 01 8-1 9: n o p ro po sa l

20 18 -19 : 2 0 s tep sc he du le a d d ste p p lu s o n sca le i nc rea se

($ 23 00) ; ad d hor izo nt al m ov em ent (8 co lum n s); red ci r cl ed incr ea se $10 0 0

T ota l c o st of in cre ase s to b as e s ala ry: $ 3,7 59 ,00 0

T ot al c ost o f in cre as es to b a se s ala ry : $4 ,1 77, 216

To ta l co st o f inc re a se s to ba se sa lar y: $5, 18 3,0 44

12/8/2015 SASD Final Offer1/25/2016 Negotiations

SASD proposal 12/8/15 SAEA Final Offer2013-14: Freeze 2013-14: $250 increase 2013-14: $1000 increase2014-15: Freeze 2014-15: $1000 increase 2014-15: $1750 increase2015-16: $5000 increase prorated 2015-16: $2250 increase 2015-16: $2500 increase

2016-17: $2000 increase

2016-17: 20 step SAEA schedule (all on bachelors) plus 13 teachers red circled

2016-17: 20 step schedule (all on bachelors) plus 13 teachers red circled

2017-18: $2000 increase

2017-18: use 1617 SAEA schedule add step ($1300) add horizontal movement as per expired agreement (6 columns); red circled increase $1000

2017-18: 20 step schedule add step plus on scale increase ($2300); add horizontal movement (8 columns); red circled increase $1000

2018-19: no proposal 2018-19: no proposal

2018-19: 20 step schedule add step plus on scale increase ($2300); add horizontal movement (8 columns); red circled increase $1000

Total cost of increases to base salary: $3,759,000

Total cost of increases to base salary: $4,177,216

Total cost of increases to base salary: $5,183,044

Comparison…

12/8/2015 SASD Final Offer

1/25/2016 Negotiations SASD

proposal12/8/15 SAEA Final

Offer

Healthcare: 5% monthly tiered plan premium share

Healthcare: Family & HW 2.25% of salary; Parent & Children or Parent & child 2% of salary; Single 1.75% of salary as contribution

Professional Development: Reimbursement of college credits to be capped at $100,000

No change to terms of expired contract 20

Tuition Rate•

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Yearly per student

Daily per student Enrollment Total per day

*Elementary Tuition Rate $6,858.02 $38.10 1269 $48,349.04

*Secondary Tuition Rate $7,118.43 $39.55 1098 $43,422.42

$91,771.46*Tuition rate for 2014-15

Some questions regarding school• Are we able to educate Seniors during strike such that

the Graduation date does not change?• How long can strike last?• Are there negotiation sessions scheduled?• Do we anticipate any court actions?• Will students be going to school on Saturdays’?

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