Transcript fact finding presentation of the scranton federation

FACT FINDING PRESENTATION
OF THE
SCRANTON FEDERATION OF
TEACHERS,
Local Union No. 1147
Presented to
Diana S. Mulligan
Case No. ACT 88-11-19-E
October 12, 2011
1
BACKGROUND
2
Scranton Federation of Teachers

The SFT has served as
the collective bargaining
representative for all fulltime and part-time
certified professional
employees of the
Scranton School District
since the 1960’s.

Currently 825 bargaining
unit members
3

The Scranton School District is the largest of
10 school districts in Lackawanna County,
which is comprised of 40 Cities, Boroughs
and Townships of differing size and
demographics.
4
Facilities

There are currently 17 educational facilities
operated by the District, with a total student
population of approximately 9,679.
5
Elementary Schools
Facility
Enrollment
Adams
204
Audubon
250
Armstrong
586
Bancroft
298
Kennedy
381
Isaac Tripp (Marshall + LincolnJackson)
611
McNichols
479
6
Elementary Schools
Facility
Enrollment
Morris
374
Prescott
313
Sumner
301
Whittier
312
Willard
615
7
Middle Schools
Facility
Enrollment
Northeast Intermediate
754
South Intermediate
535
West Intermediate
750
8
High Schools/Alternative Program
Facility
Enrollment
Scranton High School
1,836
West Scranton High
School
1,080
9
Recent Expansion

The District recently opened a new
elementary school in West Scranton, Isaac
Tripp Elementary.

Two new schools, Kennedy Elementary and
Whittier Elementary, were opened last year in
South Scranton.
10
Population and Enrollment

Despite previous Scranton School District
projections of a decreasing student population,
Pennsylvania Department of Education data shows
an increase from 9,548 students during the 20092010 school year to 9,679 students during the 20102011 academic year.
11
Excellence in the Classroom

Students enrolled in the
Scranton School
District receive the
highest quality of
education in the
Commonwealth.
12
In the District’s Own Words

According to the District’s own
promotional video:



The elementary teachers in the District possess
“talent and skills unparalleled anywhere.”
Faculty all rated highly qualified under NCLB
Teaching staff holds more advanced degrees than
many neighboring faculties.
13
MORE ACCOLADES!


In 2006, the School
Evaluative Services
Department of Standard
and Poor recognized the
Scranton School District as
an “outperforming district.”
One of only 55 such
awards, which is based
upon extraordinary
performance over the
preceding three years in
reading and math scores.
14
Achievement
According to data provided by the PA
Department of Education and
presented by Superintendent William
King at a public meeting this year, the
SSD outperforms districts around the
state in math and reading at all levels.
15
PSSA RESULTS
4th
grade math: SSD 87% v. 79% state
4th
grade reading: SSD 75% v. 70% state
8th
grade math: SSD 72% v. 70% state
8th
grade reading: SSD 80% v. 77% state
High
school math: SSD 63% v. 55% state
16
More Achievement

From 2003 to 2010, the number of students
who scored at or above grade level in math
increased from 47.9% to 75.1%.

From 2003 to 2010, the number of students
who scored at or above grade level in reading
increased from 60.4% to 70.9%.
17
It All Starts With the Teachers

Although a number of facets contribute
toward the quality of a student's education,
the ability and dedication of his or her
teachers is the primary factor toward
educational success.
18
Ability to Pay
Financial Status

As the core of the Federation’s proposals are
economic in nature, an examination of the
current state of the District’s revenue stream
and finances will prove to be helpful. All
information was obtained from SSD budgets
and audits submitted to the PDE.
20
Background

Commensurate with its enrollment, the Scranton
School District’s Budget is more than double that of
any district in Lackawanna County.

Its total revenue in 2009, $111,927,240, is 60%
greater than the next largest district (Abington
Heights), and over four times that of the composite
average for Districts in Lackawanna County.
21
The Financial Future

The anticipated revenue for 2010 is $114,278,124.

The anticipated revenue for 2011 is $116,636,188.
22
Actual Revenue vs.
Budgeted Revenue

For 2008 through 2009, the District’s actual
revenue exceeded its budgeted revenue.
23
Actual Revenue vs.
Budgeted Revenue
Year
Budget
Actual
Difference
2008
$105,917,668 $108,014,360
$2,096,692
2009
$109,665,182 $111,927,240
$2,262,058
2010
$114,278,124
???
???
2011
$116,636,188
???
???
24
What’s up with 2010 and 2011???


2010 – A right to know request was made for the
2010 audit. We are awaiting a response. It has not
been filed with the Clerk of Judicial Records, Mary
Rinaldi. As a result, we cannot evaluate the actual
revenue for 2010 at this time.
2011- The SFT requested the 2011 SSD Budget
submitted to the PDE on several occasions
(including certified mail and two separate times at
negotiating sessions). The SSD (Mr. Gaynord and
Mr. Sunday) three times denied this document
exists. The SFT was forced to obtain the
“nonexistent” document from PDE. The document
was signed by the SSD on 1/12/11.
25
Fund Balance Surplus

The District’s Ending Fund Balance from
2006 to 2010.





2006: ($1,387,953)
2007: ($1,178,769)
2008: ($3,353,195)*
2009: ($1,343,414)
2010: ???
* Our research suggests this surplus was larger than other years due to large insurance
contributions made by employees during the previous calendar year. The money was held in
the SSD General Fund.
26
Increased Tax Revenue

Scranton’s Single Tax Office reported that the
District will receive at least 10% more tax
revenue than last year.
27
Additional Tax Money to be Distributed

MERCY HOSPITAL Transfer Tax = $403,405

MERCY HOSPITAL Real Estate Tax
= approx. $962,200

Money (collected from 2005-2009) found at Single
Tax Office = $429,191

Figures reported by the Single Tax Office and The
Scranton Times.
28
Other Facts Influencing the Bottom Line
According to SSD budgets:

Assessed property values increased by $5,127,635 in the
last two years.

Mills increased by 9.44 in the last two years.

The State Tax Equalization Board (STEB) market value
increase by $258,164,800 in the last two years.
29
KOZ and KOEZ



Many properties, including residential and business, that
were given tax exemptions for a set period of time will or
have already been added back onto the tax rolls this
year.
Values obtained from documents requested from the
Single Tax Office show the following revenue increases:
KOZ = $582,828
KOEZ = $774,747
This represents tax revenue that will remain in future
years.
30
2011-2012 Basic Education Funding

According to the 2011 SSD Budget filed with
the PDE, the District is estimated to receive
$55,114,630 in state funding.

This amount is an increase of $930,030 over
the previous year.

The District is estimated to see an increase of
$539,001 in federal funding this year.
31
ADDING UP THE NEW FUNDS

The grand total in increased tax revenue and
state and federal funding is:
$4,621,672
32
New Positions Created

One gauge of a
District’s financial wellbeing is the creation of
administration jobs.

If this measure is
applied, the Scranton
School District rests
upon an assured
financial footing.
33
Additions to the District Administrative
Team

Within the past three years, the District has
added the following administrative positions:
Two Vice Principals (SHS and WSHS)
A Special Education Compliance Officer
One IT person
34
Increased Revenue Through Retirement
and Resignation

The District has approved 74 certified staff
retirements and resignations following the 20102011 school year.

Most of the retiring teachers are at the 16th and
highest step of the salary schedule.

The average retiree base salary is $75,869.
35
Net Loss of Teachers

The District hired 35.7 new teachers for the
upcoming school year.

Thus, by filling only 35.7 of the 74 retirements and
resignations, the District will encounter a net loss of
38.3 teaching positions.
36
Savings

The District will experience significant
savings as a result of the 38.3 teaching
positions eliminated.

This includes not only savings on salaries,
but benefits as well.
37
Less Expensive Replacements

Of the new hires, the District will fill these openings
with teachers hired at the lowest steps of the salary
schedule (no higher than step 5). This means
replacing a $75,869 salary with one from $36,070 to
$44,148.

Based upon the substandard salaries experienced
by all but the most senior of employees, as will be
discussed, the District will experience millions of
dollars in salary savings for years.
38
District Savings

The salary expenditure for teachers in the SSD
during the 2010-2011 school year was $42,648,647.

With our proposal the SSD salary expenditure for
teachers would be reduced to:
$37,237,474 in 2011-2012 ($5.4 million savings)
$38,958,325 in 2012-2013 ($3.7 million savings)
$40,755,701 in 2013-2014 ($1.9 million savings)
39
Add the Savings Up
This represents a total savings of
$10,994,441
over three years on salary alone.
40
Funds Budgeted

The SSD had the following amounts
budgeted for total instruction:
2009 - $68,014,220
2010- $71,187,343
2011- $73,804,600
The SSD budgeted an additional $2,617,257
this year for instruction. If they don’t use it for
instruction, where will it go?
41
SFT Proposals
42
Keep It Simple
 The
SFT is proposing
modifications to the articles 46,
67, 72, 79, 80, 85 of the existing
CBA.
43
Article 46
Special Support Services

The SFT proposes new language under
Article 46 s1(f) – Where practicable, and in
accordance with IDEA and each individual
student’s IEP, the Principal and his/her
designee will make all reasonable efforts on a
quarterly basis to assign students to
classrooms equitably.
44
Article 67
Extracurricular Compensation

2011- 2012: $30.00

2012-2013: $31.00

2013-2014: $32.00
45
Article 72
Health Insurance

The SFT proposes the addition of the following
language to article 72: s8. The Scranton School
District will provide to the Scranton Federation of
Teachers, Local 1147, quarterly, financial
statements detailing accounts payable and
accounts receivable for the health insurance
premiums, including statements of all rebates for
said health insurance inclusive of the stop loss
insurance and prescription drug plan.
46
Article 79
Teacher Salary Schedule

2011-2012: 3% plus step

2012-2013: 3% plus step

2013-2014: 3% plus step
47
Article 80
Coaching Salary Schedule

2011-2012: 3% plus step

2012-2013: 3% plus step

2013-2014: 3% plus step
48
Article 85
Term of Agreement

The SFT proposes a three year agreement
from September 1, 2011 to August 31, 2014.
49
Retroactivity

Bargaining unit members’ placement on the
salary schedule has been frozen since
August 31, 2011. Retroactive payment for
lost wages since this time is requested.
50
WAGES
51
Article 79 – Salary Schedule – SSD
Proposal – ZERO!!!!

Year 1: zero (no increase and no increment)

Year 2: $487,000 plus no increment
52
SFT Response

We are worth more than zero. That is an
insult to our hardworking members.

The $487,000 offered means that each
member would receive $295.15 a year.

Factor in the proposed healthcare
contribution costs and SFT members could
lose from $3,404.85 to $9,884.85 per year.
53
Article 79 - SFT Proposal - Salary
Schedules

3% wage increase at each step in 2011

3% wage increase at each step in 2012
3% wage increase at each step in 2013
All increases to take effect September 1 of each
year
All Coaching Schedules will be increased by 3%
in 2011, 3% in 2012, and 3% in 2013.
One dollar increase in each year of the contract
for hourly rate: $30 (2011), $31 (2012), $32
(2013).




54
Rate of Inflation

According to the Bureau of Labor Statistics,
Consumer Price Index for all Urban
Consumers (CPI-U) increased by 3.8% in the
last 12 months to an index level of 226.545.
55
Retroactivity

Due to the reasonableness of its positions,
the SFT feels the SSD could have settled the
contract before the start of this academic
year. As a result, the SFT is seeking full
retroactivity on all salary adjustments.
56
Wage Comparables
57
Peerless Performance

There is no dispute that the quality of education
provided to students in the Scranton School
District is without equal in the Commonwealth.

The superior degree of educational performance
can primarily be attributed to the skill, education,
dedication and experience of the members of this
bargaining unit.
58
No Tangible Correlation

Despite the fact that the teachers of the
Scranton School District provide the highest
quality of education in the Commonwealth,
the compensation in the form of wages that
they receive is indisputably substandard.
59
Pay According to Placement on Salary
Schedule

Salaries are determined by an employee’s
placement on a “salary schedule.”

Two factors determine an employee’s
position on the schedule:


Level of Academic Achievement
Years of service to the District
60
Base Salary – Lackawanna County School
Districts

To say that the base starting salary in the District lags behind the
starting salaries in the remainder of the County is a tremendous
understatement.

The Scranton School District is the lowest at every educational
attainment level – by far.

Please keep in mind that the SSD does not offer any form of
tuition reimbursement to teachers (as do all other districts in
Lackawanna County).

SFT members are the only teachers in the county paying for
healthcare ($1300 to $2080 per year), which should be
considered when evaluating comparable salaries.
61
Step One – Lackawanna County
Bachelors
Masters
Mast +15
Mast +30
SCRANTON
$36,070
$36,919
$37,131
$37,343
Abington Heights
$46,059
$48,684
$51,084 (+18)
$53,384(+36)
Carbondale
$38,026
$39,659
$40,659
Dunmore
$37,500
$ 37,750
$ 39,769
Lakeland
$38,557
$41,757
$44,957
Mid Valley
$39,700
$41,500
$43,300
North Pocono
$39,300
$40,700
$42,100
$43,500
Old Forge
$43,380
$44,892
$46,404 (+12)
$47,917
Riverside
$39,655
$41,751
$46,307
$50,403
Valley View
$40,581
$41,781
$43,081
$44,381
LACKAWANNA COUNTY
62
Middle Step

Because there are 16 salary steps in the
parties’ contract, it is helpful to compare
wages received at the halfway point to max. –
the 8th step – with the comparable number of
teaching years at the other school districts in
the county.
63
th
8
Step – Lackawanna County
Salary Step
Bachelors
Masters
Mast + 15
Mast + 30
SCRANTON
8 of 16
$45,892
$46,546
$46,764
$46,982
Abington Heights
8 of 15
$51,484
$54,109
$56,509 (+18)
$58,809(+36)
Carbondale
8 of 23
$46,846
$48,479
$49,479
Dunmore
8 of 17
$42,172
$42,594
$44,723
Lakeland
8 of 19
$43,492
$46,692
$49,892
Mid Valley
8 of 18
$46,700
$48,500
$50,300
North Pocono
8 of 16
$44,100
$45,500
$47,100
$48,700
Old Forge
8 of 18
$46,880
$48,392
$49,904 (+12)
$51,417
Riverside
8 of 18
$44,643
$46,739
$51,295
$55,391
Valley View
8 of 21
$46,932
$48,132
$49,432
$50,732
LACKAWANNA COUNTY
64
th
8

Step – Lackawanna County
At the masters level, only Dunmore and North
Pocono have lower salaries after eight years
of service.
65
16 Years Later

As previously recognized, a teacher in the
Scranton School District must earn 16 years
of teaching experience in order to realize the
elusive “bump step.”

It is only at this juncture that salaries in the
District are even arguably comparable with
other school districts.
66
Maximum Salaries – Lackawanna County
Bachelor
Masters
Mast + 15
Mast + 30
SCRANTON
$74,070
$75,869
$76,087
$76,087
Abington Heights
$61,875
$64,500
$66,900 (+18)
$69,200 (+36)
Carbondale
$65,746
$67,379
$68,379
Dunmore
$69,385
$71,110
$72,220
Lakeland
$65,492
$68,692
$71,892
Mid Valley
$66,600
$68,400
$70,200
North Pocono
$72,820
$74,620
$76,420
$78,220
Old Forge
$63,449
$65,019
$66,540(+12)
$68,059
Riverside
$57,808
$59,904
$64,460
$68,556
Valley View
$66,927
$68,127
$69,427
$70,727
Doctorate
$72,500
$85,320
$74,700 (+75)
67
Wait to Get Paid Appropriate Wages

As has been shown, a teacher in the District
must advance from the 15th to the 16th salary
step to receive what is an arguably fair wage.
68
Cake and Eat it Too

The District, therefore, has the best of both
worlds.


Due to the “back-loaded” nature of the contract, it
avoids fair wage payments until the final step of
the salary schedule, and
A teacher must accumulate fifteen years of
teaching experience before reaching the final
step.
69
HEALTH INSURANCE
SSD Proposal: Change Coverage and
Increase Employee Cost

The SSD proposes increasing bi-weekly
employee contributions as follows:
single: $50
husband and wife: $115
parent and child: $80
parent and children: $105
family: $130
71
More Changes

Extensive healthcare plan revisions proposed
by the SSD increase deductibles, cut
services, and add “coinsurance” costs of
$2000 to $6000.

Dental proposal would add a $50 deductible
currently not in place.
72
SFT Response





No way!
SFT members already contribute more than any
other school district employees in Lackawanna
County.
Plan changes are unreasonable and would
make insurance coverage inferior to that offered
by other districts in Lackawanna County.
Single plans could cost SFT members as much
as $3,700 per year.
Family plans could cost as much as $10,180 per
year.
73
Steep Jump In Prices


A single rate paying member currently pays
$1,300 for insurance per year. Under the
SSD proposal they would pay as much as
$3,700, a 185% increase.
A family rate paying member currently pays
$2,080 for insurance per year. Under the
SSD proposal they would pay as much as
$10,180, a 389% increase.
74
What the Increases Means


If a teacher making $36,919 were to pay the
single rate + deductible + coinsurance, they
would be paying 10.0% of their salary for
insurance.
If a teacher making $36,919 were to pay the
family rate + deductible + coinsurance, they
would be paying 27.6% of their salary for
insurance.
75
SFT - No Changes to Contributions or
Coverage – We Already Pay Enough!


Bargaining Unit Members shall contribute by
payroll deduction on the following schedule:
single - $50
husband & wife - $65
parent &child - $60
parent & children - $65
family - $80
No changes in coverage
76
Teacher Contributions to Healthcare
Costs in Lackawanna County
Single
Single +
child
Single +
Children
Family
SCRANTON
$1300
$1690
$1560
$2080
Abington Heights
$0
$0
$0
$0
Carbondale
$0
$0
$0
$0
Dunmore
$0
$0
$0
$0
Lakeland
$0
$0
$0
$0
Mid Valley
$0
$0
$0
$0
North Pocono
$0
$0
$0
$0
Old Forge
$0
$0
$0
$0
Riverside
$0
$0
$0
$0
Valley View
$0
$0
$0
$0
77
The Only One

As can readily be seen, the Scranton School
District is the only one in Lackawanna County
that forces its teachers to pay any healthcare
contribution at all.

The outlook is similar for the remainder of the
region.
78
SFT Proposal

The SFT proposes the addition of the following
language to article 72: s8. The Scranton School
District will provide to the Scranton Federation of
Teachers, Local 1147, quarterly financial
statements detailing accounts payable and
accounts receivable for the health insurance
premiums, including statements of all rebates for
said health insurance inclusive of the stop loss
insurance and prescription drug plan.
79
Special Education
80
Proposals



Continue Special Support Services as
contained in Article 46
Change language so that the principal and/or
his/her designee will make all reasonable
efforts on a quarterly basis to assign students
to classrooms equitably.
This is a system to provide a timely, equitable
distribution of special needs students as the
student population changes through the
academic year.
81
District’s Intent – Save $

The District’s cost-cutting motives are obvious.

The IDEA requires support services in each
classroom consistent with a student’s IEP.

By ignoring the law and “bundling” its special
education students, the District can consolidate its
resources.
82
If left Unchecked

History has shown that the District, if
permitted unfettered discretion, will simply
ignore the mandates of the IDEA and will
make classroom assignments without regard
to the best interests of its students and
teachers.
83
Language to Prohibit Abuse

The Federation seeks contractual language
that would guarantee an equitable distribution
of special education students in regular
education classrooms to guarantee
compliance with IDEA.
84
Benefit to the Teacher

In addition to providing the optimal
educational experience to the students, the
proper distribution of special education
students will result in a direct and immediate
benefit to the teacher.
85
Benefits to All

No longer disproportionate amount of time
spent focusing on demanding needs of
special education students

Significant relief of paperwork

Fewer disruptions and distractions
86
TERM OF AGREEMENT
87
SSD Proposal

The SSD proposes a two year agreement.
88
SFT- Term of Agreement

The SFT is seeking a three year agreement
to run from September 1, 2011 to August 31,
2014.

The SFT feels a three year agreement will
benefit both parties by providing stability and
structure in a tenuous financial climate.
89
SSD Proposals
90
RETIREMENT
INCENTIVE
SSD: Retirement Incentive Eliminated

The SSD proposes eliminating Article 74
“Retirement Incentive.”
92
SFT Position

No changes to the current language.
$10,000 a year for 7 years as a SSD contribution
to retiree health insurance.

The current cost to the retiree for insurance
(for one year) is as follows:
Single - $8,699.52
Husband & Wife - $18,187.32
Family - $20,733.48
93
Reasons to Save Retiree Healthcare
AKA “Retirement Incentive”

This is a cost savings measure for the SSD.

All other districts in Lackawanna county offer health
coverage to retirees until age 65.

More employees are ending their 7 year retirement
incentive payout period than would be entering into
the payout period.

The SSD recently offered (10/4/11) this same
incentive to persons holding non-certified
administrative positions. Why take this away from
teachers and offer it to another group?
94
SFT Response Continued

The SSD’s own insurance broker provided
documents to the SFT projecting increases for
the coming year below national averages.

The SSD has not provided the requested data to
justify their claim that costs are increasing.

The SSD fails to reflect rebates from stop loss
insurance and prescription payments in
estimates they do provide.
95
Class Size
96
SSD Proposal Article 44 – Class Size –
Increase Class Size

The SSD wishes to increase class size in
pre-K, K, and grades 1-3 to 28 pupils.

The SSD proposes increasing class size to
29 pupils in grades 4 and 5.
97
The SFT Says - NO!

Research suggests that students learn better
in smaller classes. The SFT agrees with the
research and feels the current CBA
requirements for class size should remain the
same.
98
Elementary Prep Periods
99
SSD Proposal – Article 48 Elementary Prep Periods

The SSD suggests adding s7 to article 48,
which would allow a principal to assign a
teacher to “educationally related duties”
when they have “unencumbered time.”
100
SFT Suggests

The SFT believes this language is not needed if a
building principal does his/her job and schedules
teachers as they should prior to the school year starting.

A teacher should not be assigned to fill glue bottles for
another teacher, as was the case in the SSD when a
principal assigned an unencumbered art teacher and
librarian during the 2010-2011 school year. This matter
is the subject of a grievance between the SSD and SFT.
101
Drug Testing
102
SSD Proposal– New Language – Drug
Testing Program

The SSD wishes to develop a drug testing
policy for SFT members.
103
SFT Response– New Language – Drug
Testing Program

The SFT would consider such a policy when
the members of the Scranton School Board
agree to submit to the same drug testing
program.
STAFF DEVELOPMENT PROGRAMS
105
Article 60 – Staff Development
Programs SSD Proposal

The SSD wants to suspend the requirements
of Article 60, citing a two year grace period
on Act 48 requirements allowed for by the
PDE.
106
SFT Position



Teachers needing induction and credit for
permanent certification still require a means
to obtain credits.
The SSD does not offer tuition
reimbursement as do most other districts in
Lackawanna County.
The SFT contends its ER&D program is the
only valuable in-service the SSD offers its
employees.
107
SFT Position Continued

The SFT feels the SSD is trying to eliminate
the long standing, nationally acclaimed AFT
ER+D Program. They currently have a
contractual obligation to offer courses. They
are not doing this, as per the contract and
signed memorandum of understanding. This
issue is currently the subject of a ULP filed by
the SFT.
108
A Proud Tradition

The SFT has a long and proud history. It
cannot, however, be denied that mistakes
have been made in the past which continue
to harm the current membership. The current
SFT leadership remains dedicated to
restoring, building, and strengthening the
finest local teachers’ union in the
Commonwealth.
109
Thank You For Your
Attention