SUMMARY OF KEY ECONOMIC PROPOSALS IN THE BOARD S LATEST CONTRACT PROPOSAL MADE TO THE UNION ON NOVEMBER 15, 2018 POSTED ON NOVEMBER 28, 2018

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1 SUMMARY OF KEY ECONOMIC PROPOSALS IN THE BOARD S LATEST CONTRACT PROPOSAL MADE TO THE UNION ON NOVEMBER 15, 2018 POSTED ON NOVEMBER 28, 2018 This summary details important facts about the latest proposal offered by the Board of Education to the Union on November 15, 2018 and provides facts about numerous existing benefits and forms of compensation provided to members of the Union. The Board s complete proposal is available on the District 211 website. Salary Schedule Terms To help members of the public understand the Board s salary proposal that was rejected by the Union and the subsequent demand from the Union, the following framework and terminology will be helpful. The District s salary schedule is comprised of individual cells arranged in horizontal rows referred to as steps and vertical columns referred to as lanes (commensurate with one s level of educational attainment). A base raise is an increase in the dollar amounts in the individual cells on the salary schedule. A step raise occurs when a member advances one row down on the salary schedule, usually because he or she has returned for another year of service to the District. The percentage of salary increase when an individual moves from one step to the next step varies, but the average value of the step increase within the salary schedule is 3.7%. Once a member reaches the top step on the salary schedule, the individual is considered to be off-schedule and receives a flat percentage raise that is a negotiated amount. The Board s Salary Offer The Board has proposed the following salary increase: School Year: Base raises for all employees will be 2%. (Remember that employees who are on the salary schedule will also receive a step increase averaging 3.7%, and when combined with the proposed 2% base increase, will result in an average one-year increase of 5.7%). Remaining three years of the Agreement: Employees who are on schedule will receive a base increase equal to 75% of the rolling average of the previous ten years Consumer Price Index for All Urban Consumers (CPI-U). For example, for the school year, the

2 average of the CPI-U figures will include the following: 2009 (2.7%); 2010 (1.5%); 2011 (3.0%); 2012 (1.7%); 2013 (1.5%); 2014 (0.8%); 2015 (0.7%); 2016 (2.1%); 2017 (2.1%); and 2018 (to be released in January 2019). These employees will also receive a step increase. Employees who are off-schedule will receive an increase equal to 100% of the rolling average of the previous ten years CPI-U. The Union has rejected the salary offer from the Board and has demanded that all employees receive a 2% base salary raise for and then a base salary raise equal to 100% of the CPI for the remaining three years of the Agreement. Under the Union s latest proposal, all employees on the step schedule would also receive a step increase, which averages 3.7%. Comparing the Board s Proposal and the Union s Salary Demand To compare the Board s and Union s proposals, consider the examples of three sample teachers in the chart below. The calculations have been computed according to the District s existing salary step schedule that will continue into the next contract. The Consumer Price Index (CPI) is referenced in both proposals. It is impossible to know the exact rate of CPI for 2018, 2019, or 2020 until the U.S. government officially releases these amounts, typically in January following the end of the calendar year. For example, the official rate of CPI for 2018 will be released in January The rate of CPI for both 2016 and 2017 has been 2.1%. Both parties propose an increase of 2% for the first year of the contract, which is the current school year. For the second year of the contract, the Board assumes a 2018 year-end CPI of 2.4%. To project future salary increases based on unknown rates of CPI, we have prepared calculations based on three different scenarios for the last two years of the four-year contract period: a) CPI of 1%; b) CPI of 2%; and c) CPI of 3%. The Board s proposed salary increases are listed in the left column in the yellow-shaded area and the Union s proposed increases are listed in the columns on the right side of the page in the blue-shaded area. Assuming a 2% CPI, referenced by a red circle on the chart of sample teachers, one would read the chart as follows: A teacher with two years of experience who begins the four-year contract in the Bachelor s salary lane will receive an increase of 27.2% over the life of the four-year contract according to the Board s proposal. The Union rejects this offer and demands that a teacher with two years of experience who begins the four-year contract in the Bachelor s salary lane should receive a salary increase of 30.1% over the life of the four-year contract.

3 The last two salary groups on the District s salary schedule are considered off-schedule, meaning that individuals with 19 or more years of experience no longer have a year-toyear step increase. Assuming a CPI rate of 2%, within the Board s proposal, the highest projected teacher salary reaches a salary amount of $138,517. The Union rejects this offer and demands that the top salary for a teacher for a single school year should be $139,799. These amounts refer only to a teacher s salary for his or her individual teaching assignment and do not include any additional stipends or extra forms of compensation, such as compensation earned for teaching summer school, coaching, sponsoring a club, being a department chair, or chaperoning. The list of additional forms of compensation is extensive and can substantially increase an individual teacher s total compensation. For example, within the Board s proposal applied to the current school year, head coaches can earn as much as $10,706 per year, a department chair can earn as much as $9,336 per year, and an activity sponsor (such as for student council) can earn as much as $10,130 per year. A more complete list of additional forms of compensation available to Union members can be found in the Board s latest proposal. Starting Position on Salary Schedule (Lane-Step) SALARY INCREASES ON SALARY SCHEDULE BASED ON LAST FORMAL PROPOSAL FROM BOARD OF EDUCATION AND REJECTED BY THE UNION Teacher Salary Increases over Four-Year Period of Contract BOARD OF EDUCATION PROPOSAL UNION DEMAND UPON REJECTING BOARD'S PROPOSAL CPI Scenarios (Projecting 2.4% for 2018/ ) Starting Position on Salary CPI Scenarios (Projecting 2.4% for 2018/ ) Schedule (Lane-Step) Sample Teacher #1 Sample Teacher #1 Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% BA- 2 Years of Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% BA- 2 Years of Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% ,237 59,237 59, ,237 59,237 59, ,927 62,927 62, ,553 63,553 63, ,621 66,674 66, ,112 67,777 68, ,372 70,532 70, ,737 72,144 73,566 Total 4-Year Increase ($) $ 14,937 $ 15,097 $ 15,251 Total 4-Year Increase ($) $ 15,302 $ 16,709 $ 18,131 Total 4-Year Increase (%) 26.9% 27.2% 27.5% Total 4-Year Increase (%) 27.6% 30.1% 32.7% Sample Teacher #2 Sample Teacher #2 Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% MA-4 Years Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% MA-4 Years Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% ,084 71,084 71, ,084 71,084 71, ,212 75,212 75, ,961 75,961 75, ,338 79,400 79, ,922 80,713 81, ,524 83,713 83, ,956 85,627 87,314 Total 4-Year Increase ($) $ 16,870 $ 17,059 $ 17,241 Total 4-Year Increase ($) $ 17,302 $ 18,973 $ 20,660 Total 4-Year Increase (%) 25.3% 25.6% 25.9% Total 4-Year Increase (%) 26.0% 28.5% 31.0% Sample Teacher #3 Sample Teacher #3 MA+30 Graduate Hours Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% MA+30 Graduate Hours Scenario 1: CPI 1% Scenario 2: CPI 2% Scenario 3: CPI 3% With 12 Years Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% With 12 Years Experience 2.4%/ 1% 2.4%/ 2% 2.4% /3% , , , , , , , , , , , , , , , , , , , , , , , ,952 Total 4-Year Increase ($) $ 18,691 $ 18,954 $ 19,205 Total 4-Year Increase ($) $ 19,290 $ 21,604 $ 23,941 Total 4-Year Increase (%) 19.3% 19.5% 19.8% Total 4-Year Increase (%) 19.9% 22.3% 24.7%

4 Health Insurance Benefits Any individual in the Union has a choice to participate in one of five health insurance plans. If an individual opts not to participate in one of the health insurance plans, the individual receives a payout of $1,000. The following chart shows the actual yearly premium amount paid by the individual Union member opting for either individual coverage or family coverage within any of the five plans. The yearly health insurance premium paid by an individual Union member did not increase for the school year and remains the same as the amount paid during the school year. The cost of the premium paid by the employee is substantially reduced if an individual qualifies for a wellness incentive by having a routine blood test. For an employee opting for individual coverage, the wellness incentive reduces the annual premium cost by $688.80, and for an employee opting for family coverage, the wellness incentive reduces the annual premium cost by $ The total yearly premium paid by the individual Union member in order to access one of the following Blue Cross/Blue Shield health insurance plans when including the wellness incentive in the calculation is as follows: Total Yearly Premium Total Yearly Premium Paid by Employee for Paid by Employee for Individual Coverage Family Coverage HMO $3.17 $9.92 HSA $60.30 $ PPO300 $ $ PPO500 $ $ PPO750 $ $ Retirement: Lifetime Annual Pension Teachers and other ISBE-licensed staff members participate in the Teachers Retirement System (TRS). Upon meeting certain eligibility criteria, a teacher will receive a lifetime pension annuity equal to 75% of the average of the four-highest total annual earnings within the last 10 years of employment. A teacher s annual pension amount is calculated as a percentage of ALL forms of compensation and not just the salary amount. Once a retiree is 61 years-old, the individual then also qualifies for an automatic annual increase in their annuity of 3% relative to the previous year s amount.

5 Tuition Reimbursement In the existing contract, teachers and other ISBE-licensed staff members in the Union receive 100% tuition reimbursement for graduate school hours. Teachers advance along the lanes of the salary schedule and increase their yearly salary according to graduate degrees and additional graduate school credit hours, in addition to the automatic step increase provided for each year of experience. The Board s most recent proposal offers 75% reimbursement per graduate school credit hour. The Union rejects the Board s offer and demands that this amount be increased to 80% reimbursement. Conclusion The Board of Education values and respects all District 211 staff members and has proposed an offer that will continue to compensate our staff fairly and competitively. We recognize and honor our obligation of fiscal responsibility to the community and local taxpayers. The Board believes the proposals we have made to the Union value and honor our staff members and our community members.

6 The following charts show the percentage of step increase and the dollar value in each step for the school year on the Teachers Salary Schedule. Teachers' Salary Schedule- Yearly Salary Increase Resulting from the Step Increase (%) Step B.A. M.A. M.A. +30 M.A % 4.8% % 4.7% 2 4.8% 4.6% % 4.7% 3 4.8% 4.8% % 4.7% 4 4.6% 4.6% % 4.5% 5 4.4% 4.4% % 4.3% 6 2.5% 4.2% % 4.1% 7 2.4% 4.0% 3.7% % 3.6% 8 3.9% 3.6% % 3.5% 9 3.7% 3.5% % 3.4% % 3.3% % 3.3% % 3.2% % 3.2% % 3.1% % 3.1% % 3.0% % 3.0% % 2.9% % 2.9% % 2.9% % 2.8% % 2.8% % 2.7% % 5.1% % %

7 Teachers' Salary Schedule Step B.A. M.A. M.A. +30 M.A $52,795 $58, $54,115 $59,460 1 $55,435 $60, $56,755 $62,232 2 $58,075 $63, $59,460 $65,137 3 $60,847 $66, $62,232 $68,172 4 $63,618 $69, $65,004 $71,207 5 $66,390 $72, $67,222 $74,243 6 $68,053 $75,761 $81, $68,885 $77,279 $83,350 7 $69,716 $78,797 $84, $80,315 $86,387 8 $81,833 $87, $83,350 $89,422 9 $84,868 $90, $86,387 $92, $87,904 $93, $89,422 $95, $90,940 $97, $92,458 $98, $93,976 $100, $95,493 $101, $97,011 $103, $98,529 $104, $100,047 $106, $101,565 $107, $103,083 $109, $104,600 $110, $106,119 $112, $109,154 $115, $114,091 $121, $123, $128,648