RE: CORRECTIONS to the 3/29/18 BHUSD Statement Regarding Impasse

DATE: APRIL 2, 2018 TO: BHEA MEMBERS FROM: BHEA LEADERSHIP RE: CORRECTIONS to the 3/29/18 BHUSD Statement Regarding Impasse On 3/29/18, BHUSD emailed parents of our students a lengthy and misleading document trying to justify its unilateral declaration of impasse on contract negotiations with BHEA. Below please find a point by point rebuttal to the entire document. The District s document begins with the words Dear BHUSD Families below and each of BHEA s rebuttals is bracketed ([ ]) and preceded by the capitalized, bolded word CORRECTION to distinguish our commentary from that of the original document. *** ORIGINAL DISTRICT DOCUMENT BEGINS *** Dear BHUSD Families, This is an important update regarding ongoing contract negotiations between our District and our teachers union, Beverly Hills Education Association (BHEA). The two parties have been working very hard to reach a mutually acceptable agreement that fairly compensates our teachers while ensuring the financial sustainability of the district. [CORRECTION: Only one party, BHEA, has been working very hard to find a compromise. BHUSD recoiled from true negotiating as of last summer and has instead insisted on a my way or the highway approach, wasting everyone s time.] In an effort to keep our community informed and our District finances transparent, here is where contract negotiations stand now: BHUSD is offering our teachers a 9% salary increase over the next three school years, along with additional health and welfare benefits totaling $2,250, and the removal of the current salary formula. [CORRECTION: BHUSD s only offer since last year is a 6.8% (not 9% ) salary increase compared to what we have already received via the salary formula.] o The salary formula obligates a majority of the District s property tax revenue growth for annual salary increases for teachers. This leaves very little remaining

property tax revenue growth, which the District relies upon to cover increased costs in retirement benefits, inflation on materials and services, funding new projects and growing much needed reserves. [CORRECTION: The salary formula directs 38.5% (not a majority ) of the property tax revenue growth to the certificated bargaining unit (referenced as teachers above). Why only 38.5%? The formula directs 55% of property tax growth to increase the salaries of all employees in the District, not just certificated unit members. The certificated unit only represents about 70% of all salary outlays, so 70% of 55 = 38.5. The remaining 16.5% (55 minus 38.5) goes to increase the salaries of our classified bargaining units, unrepresented employees, and administrators. Furthermore, it is not true that the formula leaves very little for the District. The District spends roughly 73% of its budget on all salaries and statutory benefits like retirement contributions. Since the formula only directs 55% of new revenue, it actually leaves an 18% surplus (73 minus 55) of new revenue that can be used for the costs described above.] BHEA is asking for an 18% salary increase over the next three school years, along with an additional $1,000 in Health and Welfare benefits over the next two years, in order to remove the current salary formula. [CORRECTION: BHEA has, throughout this process, been open to dozens of options to settle negotiations. We continue to be open. Some of the options consider keeping the formula, others eliminating it. BHUSD first threatened BHEA with impasse in early March. The District said it would agree to withdraw its impasse declaration if BHEA gave them a proposal to eliminate the formula. The District gave us one week to respond. The proposal we gave them was a 15.8% raise (not 18% ) compared to what we ve already received via the formula, but it also included many, many other items with favorable terms toward our members, including improvements to class size language, transfer language, flexibility on use of health benefits, and increases to extra pay. The District, within days of receiving this proposal, rejected it and then moved ahead with formally declaring impasse.] BHUSD and BHEA negotiating teams met six times over the past seven months, but still have not seen any movement toward a fiscally responsible compromise. The California Public Employment Relations Board (PERB) has certified that contract negotiations between the district and BHEA have now reached an impasse. PERB will now assign a neutral, third party mediator to try to help the bargaining teams reach a settlement. [CORRECTION: We have seen movement toward a fiscally responsible compromise. BHEA has shown the District on multiple occasions that the most fiscally responsible option is to keep the current salary formula in place because it

saves the District $1,193,542 compared to BHUSD s current offer. BHEA is even willing to agree to a delayed phase-in of a $2,250 benefits cap increase to save the District an additional $937,500 compared to the District s offer. The salary formula provides reasonable, modest, and affordable salary increases that benefit both the employees and the District, so keeping the formula is thus BHEA s preferred method of settling these negotiations.] Q: What does an impasse between BHEA and BHUSD mean? A: After months of bargaining with no settlement on wages, BHEA and BHUSD have determined they can make no further progress on the table. The result is a declared impasse by BHUSD. At any point in the impasse process, the union and employer can return to the bargaining table to settle the contract. [CORRECTION: Only BHUSD has determined it can make no further progress at the table. BHEA continues to have an open mind.] Q: Does the impasse mean there will be a strike? A: No. The law requires that BHEA and BHUSD complete the impasses process before a strike is allowed. Any strike that would occur during the impasse process would likely be construed by PERB as bad-faith negotiations. Q: What are the steps in the impasse process? A: Impasse is a two-step process: mediation, then fact-finding. The California Public Employment Relations Board (PERB) will assign a mediator, a neutral, third party, to try to help BHEA and BHUSD s bargaining teams reach a settlement. Q: What is the mediation timeline? A: Mediation should begin in April of 2018. The number of mediation sessions and the timeline depend on how productive the mediation meetings are. There could be one, two, five or more mediation sessions. Those sessions could be spread out over a few days, a month, or longer. It depends on whether or not the mediator, the union and the employer all believe that more mediation could result in a settlement. Q: What is fact-finding? A: If a fair contract is not agreed upon during the mediation process, the next step is factfinding. In fact-finding, BHEA and BHUSD both present arguments about financial factors that impact bargaining, including the District s ability to pay, the comparability of wages to other similar districts, and cost of living to name a few. A three-person panel hears these arguments. Both the union and employer pick a panel member, and PERB assigns a neutral member. Based on the presentation of facts, the neutral member will issue a non-binding report. Either side can agree or disagree with the report. Q: What is the timing for fact finding?

A: If the process advances to fact-finding, it is anticipated to take place in late April or early May. The report would most likely come out in May or June. After the fact-finding report is issued, BHEA and BHUSD can bargain over the report. [CORRECTION: If mediation starts in April, and if there are several mediation sessions, the likelihood of fact-finding beginning in late April or early May seems unrealistically early, unless the District has already made up its mind to rush through mediation and not truly commit itself to finding a compromise with BHEA.] Q: What happens if a fair contract is not settled upon at this point? A: BHUSD may impose a contract on BHEA. BHEA members can either choose to accept what the District imposes, or choose to go on strike. [CORRECTION: BHUSD is saying that it may unilaterally impose changes to the contract over our objections. BHUSD is saying that it may unilaterally remove the formula and reject any and all of our options for arriving at a mutually acceptable compromise.] Q: What is the contract offer on the table from BHUSD? A: The best, last, and final offer from the Board of Education is: Remove the current salary formula 2017-2018 o 3% salary increase o $1,250 additional (over current $8.5K) Health & Welfare Benefits 2018-2019 o 3% Salary Increase o $500 additional Health & Welfare Benefits 2019-2020 o 3% Salary Increase o $500 additional Health & Welfare Benefits [CORRECTION: This has been the only offer from BHUSD since August 2017 (not just the best, last, and final) during multiple rounds of negotiations. Also the increase to 2017-2018 is 0.8% (not 3% ) since employees have already received a 2.2% raise this school year).] Q: What is BHEA asking for regarding salary and benefits? A: 2017-2018 o 6% Salary Increase 2018-2019 o 6% Salary Increase o $500 additional Health & Welfare Benefits

2019-2020 o 6% Salary Increase o $500 additional Health & Welfare Benefits [CORRECTION: As explained earlier, this was a proposal that BHEA offered only after being threatened with impasse by the District in March, but it is only one of many, many options under consideration with our preferred option being proposals that do not eliminate the salary formula and save the District money compared to its one and only offer. Also, the increase to 2017-2018 is 3.8% (not 6% ) since employees have already received a 2.2% raise this school year.] Q: Why does the district want to remove the current salary formula? A: The salary formula obligates a majority of the District s property tax revenue growth for annual salary increases for teachers. This leaves very little remaining property tax revenue growth, which the District relies upon to cover increased costs in retirement benefits, inflation on materials and services, funding new projects and growing much needed reserves. [CORRECTION: The salary formula directs 38.5% (not a majority ) of the property tax revenue growth to the certificated bargaining unit (referenced as teachers above). Why only 38.5%? The formula directs 55% of property tax growth to increase the salaries of all employees in the District, not just certificated unit members. The certificated unit only represents about 70% of all salary outlays, so 70% of 55 = 38.5. The remaining 16.5% (55 minus 38.5) goes to increase the salaries of our classified bargaining units, unrepresented employees, and administrators. Furthermore, it is not true that the formula leaves very little for the District. The District spends roughly 73% of its budget on all salaries and statutory benefits like retirement contributions. Since the formula only directs 55% of new revenue, it actually leaves an 18% surplus (73 minus 55) of new revenue that can be used for the costs described above.] Q: How do BHUSD teacher salaries and class sizes compare to other school districts? A: BHUSD certificated salaries are consistently in the top 10 out of 47 Unified School Districts in Los Angeles County. (Source: L.A. County District Salary Survey) BHUSD teachers benefit from the lowest class sizes in the county, state, and most of the nation s public schools. (Source: Los Angeles County Office of Education) [CORRECTION: Please see the last pages of this document for a table from the County that show that 11 other unified districts increased maximum salaries by a greater percentage than Beverly Hills over the last three years (years during which our salary formula was in place). These other 11 districts face the same pressures on retirement benefits as Beverly Hills, yet BHUSD argues that our salary formula

is not leaving it enough money? Do you believe that? Also, take a look at the health benefits chart. We are currently #42 out of 47 unified school districts. This means that for years decades really, BHUSD has saved itself countless millions of dollars on spending on health benefits by shifting those costs to employees and forcing them to pay out of pocket to cover their families. Do you really believe the District when it says the salary formula is breaking the bank? Even if the parties end up agreeing to raise the benefits cap up to $10,750, this would put us at spot #35 in the rankings. This would be an improvement, yes, but nowhere near the median for the County. The District would still be saving lots of money on health benefits compared to neighboring districts and employees would still be shouldering a significant financial burden for their families.] *** ORIGINAL DISTRICT DOCUMENT ENDS *** BHEA S CONCLUSION: The purpose of the District s 3/29/18 email on impasse was to spread propaganda and confuse the community. BHEA wants to keep the salary formula. We want the District to save $2,131,042 over three years by simply leaving the salary formula in place and accepting BHEA s benefits proposal that would still get the benefits cap up to $10,750. Our proposal is cheaper than the District s one and only proposal. We are not asking for the moon. We are being reasonable and the facts support us. The formula has been beneficial to everyone in the District and it should continue. *See the next pages for tables.

2016-17 L.A County District Salary Survey SECTION II: UNIFIED SCHOOL DISTRICTS PART C: HEALTH AND WELFARE- DISTRICTS' MAXIMUM ANNUAL CONTRIBUTIONS PER TEACHER* Annual Unified Contribution Income School District Footnotes Rank Per Teacher Medical Dental Vision Life Protection Other Inglewood 1 $26,430 X X X X X X E Downey 2 26,158 X X X X E San Marino 3 24,382 X X X X X E Santa Monica-Malibu 4 24,182 X X X E Glendale 5 23,722 X X X X Covina Valley 6 22,588 X X X X X E Pasadena 7 21,590 X X X A B C 8 20,828 X X X X El Rancho 9 18,930 X X X X X E Walnut Valley 10 18,656 X X X X X A Charter Oak 11 18,428 X X X X E Los Angeles U 12 Q3 18,165 X X X X X E San Gabriel 13 17,915 X X X Long Beach 14 17,636 X X X X X E Manhattan Beach 15 17,397 X X X X X X E Alhambra 16 17,292 X X X X Redondo Beach 17 16,883 X X X X X Bellflower 18 16,618 X X X X E Montebello 19 15,605 X X X X X E Monrovia 20 15,170 X X X X South Pasadena 21 15,005 X X X X X E La Cañada 22 14,883 X X X V Compton 23 14,075 X X X X X E Paramount 24 Md 14,034 X X X V X X E Culver City 25 13,802 X X X X X E Bassett 26 13,747 X X X X X E West Covina 27 13,000 X X X X Pomona 28 12,420 X X X X E Lynwood 29 12,236 X X X X X E Burbank 30 12,000 X X X X X E Hacienda-La Puente 31 11,900 X X X X X E Las Virgenes 32 11,750 X X X X X X E Glendora 33 11,296 X X X X Rowland 34 11,010 X X X X E Azusa 35 10,638 X X X X X E Torrance z 36 Q1 10,500 X X X X Norwalk-La Mirada 37 10,085 X X X X X E Claremont 38 9,762 X X X X X E Palos Verdes z 39 8,976 X X X X X E Baldwin Park 40 8,692 X X X X X E Beverly Hills 41.5 8,500 X X X X E El Segundo 41.5 8,500 X X X X Temple City 43 8,260 X X X X X E Bonita 44 8,010 X X X X X X E Arcadia 45 7,505 X X X Duarte 46 7,500 X X X Acton-Agua Dulce Yz 47 60 X * Y A E V U z Rates reflect the last effective 2016-17 annualized benefits received by active employees, excluding employee contributions and benefits for retirees. District did not participate. This year's information reflects prior year's data. Travel or Accident Insurance Employees assistance plan or psychological services Vision benefit included with the medical plan Teachers have option of not accepting medical benefits. Teachers who choose to not accept receive some monetary compensation in lieu of Not settled 46

2016-17 L.A County District Salary Survey SECTION II: UNIFIED SCHOOL DISTRICTS PART D: TEACHERS PERCENT INCREASE E. Percent Increase 6. Three Year Increase in Maximum Salary for Teacher with Credential Teacher Maximum 3-Year Unified Percent increase 3 School District Footnotes Rank Credential Rowland 1 19.23% Alhambra 2 18.73 Culver City 3 16.93 Lynwood 4 16.58 Paramount 5 15.34 Hacienda-La Puente 6 15.19 Redondo Beach 7 14.51 Baldwin Park 8 14.03 El Rancho 9 13.88 Norwalk-La Mirada 10 13.86 La Cañada 11 13.55 Beverly Hills 12 Q3 13.30 Pomona 13 13.16 Claremont 14 13.11 Downey 15 12.60 Long Beach 16 12.46 Bellflower 17 11.99 West Covina 18 11.94 Las Virgenes 19.5 11.91 Azusa 19.5 11.91 El Segundo 21 11.80 Glendora 22 11.55 Bonita 23 11.40 Arcadia 24 Md 11.05 Manhattan Beach 25 10.84 A B C 26 10.82 Los Angeles 27 10.28 San Marino 28 10.07 Palos Verdes 29.5 9.20 Temple City 29.5 9.20 Covina Valley 31 8.95 Torrance z 32 8.53 Bassett 33 8.27 Burbank 34 8.19 Duarte 35 8.17 Compton 36.5 Q1 8.15 Glendale z 36.5 8.15 Santa Monica-Malibu 38 8.12 Montebello 39 7.86 Charter Oak 40 7.64 South Pasadena 41 7.52 Pasadena 42 7.43 San Gabriel 43 7.14 Walnut Valley 44 6.64 Monrovia z 45 5.68 Inglewood 46 5.06 Acton-Agua Dulce z 47 2.81 3 Percent increase over the minimum and maximum salary placement compare this fiscal year's salaries prorated for any midyear increases, over the last three years' salaries prorated for any mid-year increases, including one-time only off-schedule pay, and excluding compensation for doctorate, longevity or extended career service pay, merit or location. z Not settled 52