Our proposal of 2.5 percent increase in the salary schedule each year while maintaining current benefits was not only based on the idea that it is a fair, competitive offer, but that it is also reasonable given our district’s financial situation. Here are the main ideas that make our package affordable:
New
Funding
Improved
funding from the Legislature has helped several districts increase pay for
their teachers.
· The
basic funding formula increased for all districts
· New
state funding for all-day, every-day kindergarten will free up money we now put
into sites that already have it
· The
Legislature increased a compensatory education pilot for the Anoka-Hennepin
district
· Impact:
$7.7 million available
 |
| Fund balance history from our district's most recent audit |
Appropriate Fund Balances
The
professional organization of school finance officers says school districts
should hold reserves of 5 percent to 15 percent, with larger districts safely
able to maintain the lower levels.
· Currently,
the district has 7 percent to 9 percent of our funds in the unassigned fund
balance, which is one of several such fund balances
· District
fund balances have been rising steadily over the past six years to point they
are outpacing the state average in both sheer size and rate of growth
· Impact:
$15.8 million available
The
district overstates the cost of our package
The
district artificially inflates the actual value of our compensation package
through the use of the “cast forward” method of predicting future costs.
· Thirty
positions in our unit are paid for by Q-Comp
· Thirty
positions that will be cut next year are costed against our package
· An
estimate of 10 percent increase in health care costs is not likely
· Retiree
savings, conservatively based on our past five-year history, is $30,000 each
for at least 75 retirees. Currently, the district only considers $25,000
savings for 50 teachers
· Impact:
Reduces district estimate of package costs by $8 million
Our
Fair Share
In
creating our proposals, we are mindful of the many needs and obligations of our
district.
· Teacher
compensation and benefits currently amount to 61.5 percent of the district
budget
· Our
proposal would maintain that share of the budget.
· By
keeping our request reasonable, other employee groups and programs will be able
to access increased funding
· Based
on our calculations, our proposal is not only affordable, it leaves additional
funds available for other proposals like class size / case load reduction,
substitute relief for special education teachers, and increased pay for hourly
subbing
· Overall
Impact: These ideas covers costs with $5.8 million to spare
