Transcript The Proposed Model - Whitefish Bay Schools

Whitefish Bay
Instructional Employees
Compensation Model
March 26, 2014
Whitefish Bay
Instructional Employees
Compensation Model
Three sections of this presentation:
1. Why does teacher compensation have to
change?
2.
What was involved in the design process of
our salary model?
3.
An explanation of the new salary model.
What is Compensation?
 Salary is an element of the compensation system.
Other elements include:
 Health Insurance
 Dental Insurance
 Wisconsin Retirement
 Post-employment benefits
 Long-term disability
 Pay for add-on work (overloads, committees, mentoring, coaching, etc.)
 For most instructional employees, salary will account
for 50-70% of total compensation package.
 Example: for a teacher with a salary of $50,000, the
salary accounts for roughly 70% of the total
compensation.
How was salary determined?
 Since 1970’s until 2011, salaries for instructional staff
were formally bargained per state law.
 Under the former state law, increases to teacher
compensation needed to reach the Qualified
Economic Offer (QEO) which was set at 3.8%.
 The QEO did not include advancement on the
educational lanes.
 So, aggregate teacher compensation often rose
higher than 3.8% annually when lanes and steps were
considered, as well as benefit cost increases.
State Budget Changes
 To help Wisconsin’s significant budget deficit, fewer tax dollars
have been allocated to public education.
 In 2008, Bay received $275 increase per resident student.
 In 2013, Bay received $75 increase per resident student.
 $743,000 vs $202,000 in new money is meant to account
for price & salary increases for the district.
 Act 10 was implemented as “the tools” to reduce schools’
expenditures so they could better meet these revenue limits.
Prior Compensation Changes
 To help cope with budget retrains, changes have already
occurred to employees’ compensation packages.
 Per state law, all district employees must now make an
annual 50% contribution to their Wisconsin Retirement
System. This constitutes about a $3,000-$7,000 out-ofpocket expense that used to be paid by the School
Board/District.
 Other Post Employment Benefits (OPEB) have been
reduced. Teachers hired after July 1, 2011 are not eligible
for post employment health insurance. Rather, they are
eligible for a tax shelter annuity ($1,000 per year) to access
upon retirement (age 57 and 20 years of service).
Prior Compensation Changes
 Post employment health insurance for teachers hired
before July 1, 2011 has been frozen at the 2011-12 district
paid rates; insurance cost increases above that rate will be
paid for by the retiree.
 Health insurance plans have been modified to increase the
employee costs of deductible, co-insurance, and out-ofpocket co-pay costs for services and prescriptions.
 Since 2011, the teacher salary schedule was frozen;
automatic raises for years of service and additional
education were not granted. Rather, set dollar amounts
were allocated for raises: $480 to teachers making more
than $54,000/year and $1,000 to teachers making less than
$54,000/year.
2011 Wisconsin Act 10
 Collective Bargaining Changes (effective June 2011)
 Prohibits bargaining collectively with respect to any
condition of employment except wages, which includes
only total base wages and excludes any other
compensation, such as overtime, premium pay, merit
pay, performance pay, supplemental compensation,
pay schedules, and automatic pay progressions.
 Limited to bargaining over a percentage of a total base
wage increase no greater than the percentage change
in the consumer price index (CPI).
 Gives school boards the power to design new teacher
compensation systems outside of bargaining.
The Previous
Uniform Salary Schedule
 Advantages:
 Pay increases were automatic.
 It was highly predictable for teachers.
 At the time, it was affordable.
Sample Uniform Salary Schedule
Step
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
•
•
•
•
BA
39,573
40,103
40,765
41,847
42,932
44,017
BA+6
40,335
40,865
41,527
42,610
43,694
44,778
45,860
46,945
48,028
49,219
BA+12
41,032
41,625
42,290
43,372
44,456
45,539
46,624
47,707
48,789
49,981
51,175
52,367
53,592
54,851
56,142
BA+18
41,858
42,389
43,051
44,134
45,220
46,302
47,385
48,468
49,552
50,744
51,935
53,127
54,352
55,613
56,903
BA+24
42,620
43,150
43,812
44,894
45,979
47,063
48,147
49,232
50,314
51,506
52,698
53,890
55,115
56,374
57,697
59,089
BA+30
43,382
44,042
44,774
45,855
46,940
48,023
49,107
50,191
51,274
52,465
53,658
54,983
56,342
57,732
59,188
60,777
MA
44,144
44,936
45,799
46,991
48,183
49,375
50,568
51,760
52,952
54,210
55,468
56,860
58,284
59,774
61,397
63,151
MA+6
44,936
45,799
46,726
47,917
49,110
50,305
51,496
52,689
53,879
55,138
56,528
58,052
59,608
61,232
62,987
64,907
MA+12
45,734
46,594
47,521
48,714
49,906
51,098
52,291
53,482
54,674
55,933
57,323
58,846
60,470
62,158
63,981
66,032
MA+18
46,661
47,521
48,449
49,641
50,833
52,024
53,228
54,409
55,600
56,860
58,251
59,774
61,431
63,152
65,008
67,093
MA+24
47,588
48,779
49,973
51,230
52,488
53,746
55,005
56,264
57,523
58,846
60,304
61,891
63,615
65,404
67,327
69,577
Just a sample… not Whitefish Bay’s old schedule.
Vertical steps represent pay for added year of service.
Horizontal steps represent pay for additional education.
Vertical and horizontal step movement is automatic – the school district has
committed itself to pay the salary increases inherent in step movement.
MA+30
48,514
50,040
51,494
52,818
54,146
55,466
56,799
58,119
59,438
60,838
62,357
64,016
65,804
67,653
69,646
72,050
 Problems:
The Previous
Uniform Salary Schedule
 Pay increases were automatic-- School boards and
administration lacked control over continuing
education yet paid increased salaries for it.
 Sustainability- State resources & ability to pay
 We used to have approximately $500,000 for
compensation increases.
 New state budget allocations provide
approximately $200,000, depending on the CPI, for
compensation increases… but the total new money
into the district under the revenue cap might be
$202,000.
The Salary Structure Design Process
 What do we want out of our compensation
system?
 Attract and retain excellent teachers.
 Be fair & equitable- Minimize the current
salary scale differentiation.
($36,000 - $77,000 range)
 Sustain the affordability of the model.
The Salary Structure Design Process
 The Charge from the School Board:
 Evaluate the needs and desires for our new
compensation structure, review related research, and
study comparable district’s compensation offerings.
 Consider implications of the Compensation
Committee’s recommendations on the long-term
financial health of the district.
 Present a comprehensive model for use by the district
including considerations of attracting and retaining
quality staff, honoring existing commitments to the
extent possible, cost estimates, sustainability, and
funding strategies.
The Salary Structure Design Process
 Form the Compensation Committee – Two school board
members, three administrative council members, & four
teachers THANKS to the committee for their work!
 Educate and Study:
 Background education sessions held at each school.
 Analyze compensation from districts with whom we
compete for employees.
 Our benefits are competitive
 Our beginning wage, in particular, is too low
 Study other compensation models, public and private
sectors.
 Review related research studies.
The Salary Structure Design Process
 Survey Instructional Employees, Administration and
School Board regarding salary, benefits, work
conditions, and important factors to include in a
salary structure.
 Some factors should raise the base salary
 Some factors should be one-time additional pay
 Raise the floor of the salary structure over time,
without decreasing salaries.
The Salary Structure Design Process
 Develop “fixes” for those teachers earning less than $40,000
per year and those who would have earned lane movement
on the old salary schedule.
 Institute one-time “fixes” prior to giving raises for the 201314 school year.
 The 27 teachers earning less than $40,000 will jump to
an base salary of $40,000.
 The 17 people who earned either a Masters or Doctorate
will receive $2,000 added to their current salary.
 The 18 people who earned enough credits for a lane
movement will receive $500 added to their current
salary.
The Salary Structure Design Process
 Develop structures for funding sustainability – Whether we




have $100,000 or $500,000 to spend on raises, our salary
model should not change.
Without locking into specific dollar allocations, provide
teachers an understandable view of their career path.
Ongoing communications during the process with teachers,
the administration, and the School Board.
Bring the proposed model to the School Board for approval
in spring before 2013-2014 retroactive raises are allocated.
Although we can’t finalize 2014 – 2015 salaries until after
the state funds are allocated by October, we believe we can
share an adequate estimate for salaries next school year.
The Proposed Model
 Eliminate the old salary schedule with set
dollar amounts.
 Each teacher’s current salary constitutes
his/her base salary.
 No teacher’s base salary will decrease.
 Teachers being non-renewed or on a Plan of
Improvement will not receive a raise.
 Pay increases are based on most of the factors
considered in the Compensation Study Survey.
The Proposed Model
 New teachers continue to be hired with a base
salary determined by administration using the
current criteria noted in the Instructional
Employee Handbook: “… takes into
consideration area of certification, years of
experience, education and professional
development, professional contributions to
the school community and/or field of
education, and specific job assignment.”
The Proposed Model
 New pay structure for “raises for all” provides for:
 Pay range from $40,000 - $81,000.
 If currently below $40,000, the new base salary is $40,000.
 Except if on a Plan of Improvement or being non-renewed,
everyone receives a raise unless your base wage is already
$81,000.
 2013-2014 funding available for raises matches CPI of
2.07%, plus additional funding from existing budget for the
“fixes” ($40,000 base and recognition of lane movement).
 Raises are allocated on a sliding scale with more money
being pushed to the lower-paid teachers and less money
going to the higher-paid teachers. (About a 4:1 ratio)
The Proposed Model
 Factors for pay increases to be included, based on survey of
teachers, administration, and school board:
 Some pay increase for everyone, unless already at the top
of the scale
 Experience/Number of years in teaching and in district
 Performance as rated by supervisor (Incorporated through
no raise if placed on a Plan of Improvement or being nonrenewed.)
 Earning an advanced degree (Masters, Doctorate)
 Earning additional WI DPI certifications/licenses
 Earning National Board Certification (NBPTS.org)
 Teacher leadership roles (District committees, mentoring,
coaching, department chairperson, etc.)
 Time slips for identified professional development hours
The Proposed Model
 Of the total budget available for raises, typically 85%
used for raises for all teachers.
 More money to the lower paid teachers, less money to
the higher paid teachers to build greater equity in the
salary structure.
 No pay increase for employees place on a Plan of
Improvement or being non-renewed.
 New salary range from $40,000 - $81,000.
The Proposed Model
 Of the total budget available for raises, typically 15%
used for increases to teachers’ pay for “Advanced
Learning.”
 Advanced Learning is:
Typically worth
 National Board (NBPTS)Certification = $2,000
 Preapproved
 Master Degree =
$2,000
 Ed Specialist/Doctorate Degree =
$2,000
 WI DPI certification/license =
$300-$1,200
 The pay increase is added to the base pay (not a onetime stipend)
The Proposed Model
 Non-reoccurring pay increases are still included in
our pay structure. The budget allocation is above and
beyond the typical CPI-generated funds for raises.
 Time slips for leadership roles – Mentoring, district
committee membership, curriculum writing, etc.
 Mentor training/certificate stipend.
 Additional pay for Department Chairpersons/Team
Leaders.
 Additional pay for extra-curricular supervision.
 Overload assignments.
Examples
Base
2014
Raise Raise for
Add-on
“Base Fix” for All Adv Lrng New Base Pay
$36,977 $3,023
$39,963
$0
$37 $1,590
$47,708
Pay for
the year
$40,000 $120
$40,120
$41,599 $324
$41,923
$1,447 $2,000 $51,155
$51,155
$64,212 $500
$921
$65,633
$60
$65,693
$77,155
$512
$77,667 $3,480 $81,247
*Add-on, non-reoccurring pay might include mentoring, pay for
committee work, coaching, etc.
Future Considerations
 Periodic review of internal and external comparables
for equity.
 Annually, the School Board will determine if allocating
more or less funding than each year’s CPI is
warranted.
 Any increase of more than CPI increase to the base
gross wages would require a positive referendum
vote.
 Refinement of the model for relevant factors for
raises and the associated funding allocations.
Thank you for your
time and attention.