Teacher Contract Agreement: An Overview
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1 Teacher Contract Agreement: An Overview PREPARED AND PRESENTED BY: DR. DONALD A. JAMES MRS. LAURA A. NEWMAN MR. REZA KOLAHIFAR MS. ALYSON MATHEWS DECEMBER 22, 2016
2 Negotiations: Began in Spring Formal Negotiation Sessions before Declaring Impasse Joint Declaration of Impasse One Mediation Session Transition to New NYSUT Labor Relations Specialist One Formal Negotiation Session after Mediation Board of Education Vote Teacher Vote: PASSED! Settlement MOA Numerous Informal Meetings Joint Request for Fact Finding
3 Tonight s Presentation Guiding Principles Restructured/ Smooth Salary Schedule Step Raises & Delayed Step Raises Benefits Contract Language Adjustments
4 Guiding Principles Package Bargaining (Give and Get) New agreement must remain within the estimated State-mandated tax cap through the life of the contract Enhance several working conditions that would benefit parents, students, and teachers Short-term savings to support short-term stability Long-term savings to support long-term stability (Contract Legacy Cost Reductions)
5 Creating Legacy Through a Restructured Step Schedule Reduced Starting Salary Salary Remains Competitive Actions Towards Legacy Smoothed Step Increases and Extended the Number of Steps Both factors significantly slowed salary growth Reduces the Overall Cost of Newly-Hired Teachers
6 Percent and Salary Comparison For A New Teacher: Old to New Old Salary New Salary 1 62,071 60, ,896 62, ,779 65, ,913 67, ,165 69, ,375 70, ,485 72, ,688 75, ,810 77, ,193 79,485 Total Over First 10 Years MA $738,375 $700,947 Old Salary New Salary ,264 93, ,640 95, ,594 97, , , , , , , , , , , , , , ,251 Total Over Second 10 Years MA+60 $1,177,712 $1,044,188 Old Salary New Salary , , , , , , , , , , , , , , , , , , , ,811* AVG % Total Over Last 10 years MA+60 Total District Savings Over 30-Year Career 2.96% (Top Step 25) 2.68% (Top Step 30) $1,388,157 $1,336,428 $222,681 +FICA and TRS (~$35,000) *Although top step is higher, reduced salary growth over 30 years means a savings of $250,000 +/- per new teacher
7 CURRENT STAFFING AND PROJECTED RETIREMENTS ( P ROJECTED 2 0 % O F RETIREMENT E L I G I BLE S TA F F) Age Eligible Age Eligible w/o Penalty Remaining On Staff Retirements
8 Potential Retirement Savings Top Salary + Benefits, FICA, TRS New Hire + Benefits, FICA, TRS Current Top Step $185,497 $185,497 New Hire at Step 1 - $92,797 Recalled Individual at Step 10 (New Step 15) $127,150 - Difference $ 58,347 $ 92,700 Number of Retirements Projected Number of New Hires Number of Recalls Savings Due to Projected Retirements Savings Over Duration of Contract $2,210, $2,622,870 Two Ways We Reduce Salary and Legacy Costs Through retirements, the District realizes additional savings Due to the new salary schedule, legacy costs for a teacher are reduced by $250,000 over the life of a 30-year career
9 Health Insurance Contribution: 3-Year History and Terms of New Agreement Under Triborough Going Forward Fiscal Year Health Insurance Contribution % % % % % % % 21.0% 20.5% 20.0% 19.5% 19.0% 18.5% 18.0% 17.5% 17.0% Health Insurance Contribution Health Insurance Contribution Linear (Health Insurance Contribution)
10 Other Conditions No Retro Pay Examples Mandated Use of Teacher-to-Parent/Student Technology (e.g., eboard) Modified or Enhanced Contract Language for Internal Functionality Grievance Procedure Leave Time Professional Development Housekeeping and Contract Language Alignment to Current Practice
11 Salary Increase: 3-Year History and Terms of New Agreement Under Triborough Going Forward School Year Salary Percentage Increase % Plus Step Raise % Plus Step Raise % Plus Step Raise* % Plus Restructured Step Raise Schedule and No Additional Raise %** Plus Restructured Step Raise Delayed Until February %** Plus Restructured Step Raise Delayed Until February %** Plus Restructured Step Raise in September *Codified formula for overnight chaperone pay **Percentage increases also apply to all extracurricular and coaching stipends
12 Contract Negotiation Variables State Aid Tax Cap TRS Contributions Health Insurance The Variables Did not include any increases Average estimated tax cap used in calculation was 1.246%; for , actual tax cap of 0.38% was used Stable 9.5% Increase Annually
13 Total Savings Through How do the savings materialize? Restructuring and re-indexing of the salary schedule for current staff Restructured step schedule and delayed steps slowing salary growth Average salary growth slowed to offset increases in some parts of the step schedule Smoothing of all steps subsidizes steps that were increased Net Savings Expense Over/(Under) Tax Cap $605,073 Based on contract going forward
14 This Agreement Meets ALL Guiding Principles Package Bargaining (Give and Get) Enhance language for technology use benefiting parents, students, and teachers Short-term savings Long-term savings to support long-term stability (Contract Legacy Cost Reductions) Remains within the estimated State-mandated Tax Cap
15 Thank you
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