FACT FINDING PRESENTATION OF THE SCRANTON FEDERATION …

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-88-08-17-E July 21, 2008 1

BACKGROUND

Scranton Federation of Teachers

 The SFT has served as the collective bargaining representative for all full time and part-time certified professional employees of the Scranton School District since the 1960’s.

 Currently 723 bargaining unit members (does not include 55 recent teacher retirees.) 3

 The largest of 10 school districts in Lackawanna County, which is comprised of 40 Cities, Boroughs and Townships of differing size and demographics.

Facilities

 There are currently 18 educational facilities operated by the District, with a total student population of approximately 9,718.

Elementary Schools

Facility Adams Audubon Armstrong Bancroft Kennedy Lincoln/Jackson Marshall McNichols Enrollment 197 269 510 282 331 269 413 478 6 6

Elementary Schools

Facility Morris Prescott Sumner Whittier Willard Enrollment 382 307 328 331 624 7 7

Middle Schools

Facility Northeast Intermediate South Intermediate West Intermediate Enrollment 770 502 777 8 8

High Schools/Alternative Program

Facility Enrollment Scranton High School 1,860 West Scranton High School 1,088 9 9

Planned Expansion

 The District is also developing a new elementary school in West Scranton.  Construction on the school near Tripp Park is budgeted at $29.1 million.

 In addition, renovations to Kennedy Elementary and Whittier Elementary have been budgeted for $56.2.

Population and Enrollment

 Despite previous projections of a decreasing student population, a study issued by the District established that enrollment from the 2006/07 school year to 2007/08 school year has actually increased. 11

Increased Daily Membership

 Reversing the trend of Lackawanna County as a whole (0.1%), the Average Daily Membership (“ADM”)* in the Scranton School District has increased by 1.5% from 2002 through 2006.

*Enrollment divided by the number of instruction days.

Excellence in the Classroom

 Students enrolled in the Scranton School District receive the highest quality of education in the Commonwealth.

In the District’s Own Words

 According to the District:  The elementary teachers in the District possess “talent and skills unparalleled anywhere.”   Faculty all rated highly qualified under NCLB Teachers – long better credentialed – staff held more advanced degrees than many neighboring faculties.

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.

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 overwhelming primary factor toward educational success.

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.

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 2006-2007, $95,138,118, is 60% greater than the next largest district (Abington Heights), and over four times that of the composite average for Districts in Lackawanna County. 19

Actual Revenue vs. Budgeted Revenue

 For every year from 2003 through 2007, the District’s actual revenue exceeded its budgeted revenue 20

Actual Revenue vs. Budgeted Revenue

Year Budget Actual 2003 2004 2005 2006 2007

80,423,100 80,685,261 84,842,933 88,188,988 89,977,831 92,635,774 94,622,990 101,659,437 95,138,118 102,104,978

Difference

262,161 3,346,055 2,657,943 7,036,447 6,966,860 21

Increasing Fund Balance Surplus

 The District’s Ending Fund Balance increased significantly from 2002-03 to 2006-07, culminating in a surplus of $9,517,400 for 2007.

     2003: ($1,387,953) 2004: ($1,178,769) 2005: $5,700,808 2006: $8,318,134 2007: $9,517,400 22

Increased Local Tax Effort

 From 2002 to 2006, the Local Tax Effort* for Lackawanna County school districts decreased by 0.3%.

 Bucking this trend, Scranton School District’s Local Tax Effort increased by 1.9% * Calculated by dividing the actual total tax revenue by the market value, then multiplying by 1,000 23

Increased Tax Revenue

 Last week, Scranton’s Single Tax Office reported that the District will receive at least 23% more tax revenue than last year.

 Wage taxes for the District stand at $4.8 million, up from $3.8 million last year.

Additional Tax Money to be Distributed

 The $4.8 million does

not

include approximately $2 million dollars that the District will receive from taxes previously held by the Single Tax Office.

MORE GOOD NEWS!

Increased State Funding

 In his budget address, Governor Ed Rendell proposed a new education funding formula that would funnel an extra $291.3 million dollars to school districts for the 2008-2009 school year.

2008-09 Basic Education Funding

 The District is estimated to receive $35,556,750.

 This amount is more than $3.1 million of the 2007-2008 funding ---- a

9.57% increase

 The largest increase in Lackawanna County.

New Positions Created

 One gauge of a District’s financial well being is the creation of administration jobs.

 If this measure is applied, the Scranton School District rests upon an assured financial footing. 28

Additions to the District Administrative Team

 Within the past two years alone, the District has added the following administrative positions:   Assistant Superintendent ($105,123.69) Director of Elementary Education ($95,431)      Recycling Coordinator ($52,741) Technology Coordinator ($37,304.74) Supervisor of Special Programs ($94,347) Stadium Special Events Coordinator ($30,000) Two ESL Liaisons ($30,000 each) 29

More New Jobs Created

 Eight new IT Employees ($196,000 Base Salaries)  Diversity Coordinator ($25,000)  Hispanic/Latino Liaison ($30,000)  Inventory Insurance Coordinator ($37,304.74)  Staff accountant ($39,231)  Additional Vice Principal at West High ($74,716) 30

Increased Revenue Through Retirement and Resignation

 The District has approved 55 certified staff retirements following the 2007-2008 school year.

The Most Expensive Teachers Leaving



All

of the retiring teachers are at the 16 highest stage of the salary schedule.

th and  The average retiree base salary is $69,900.

Resignation

 The School Board has approved the resignation of 11 additional teachers effective June 2008.



Ten of the eleven

are leaving for better paying teaching jobs in this area!

Net Loss of Teachers

 The District has advised the Federation that it intends to hire only 46 new teachers for the upcoming school year.

 Thus, by filling only 46 of the 66 retirements and resignations, the District will encounter a net loss of 20 teaching positions.

Over a Million Dollars in Savings

 The District will experience significant savings as a result of the 20 unreplaced teachers.

 This includes not only salaries, of which 55 were at the highest step, but benefits as well.

Less Expensive Replacements

 Of the 46 new hires, the District will fill these openings with teachers hired at the lowest steps of the salary schedule.

 Based upon the substandard salaries experienced by all but the most senior of employees, as will be discussed, the District will experience tens of the thousands of dollars in salary savings for years.

Wasted Assets

 The School District recently inadvertently overspent $600,000 on an after school program.

 The District simply covered the $600,000 error from its general funds!

WAGES

Salary Schedules

 Proposals:  7% wage increase at each step in 2008  6% wage increase at each step in 2009  5.5% wage increase at each step in 2010  5.5% wage increase at each step in 2011  Establish a 12 step salary schedule as of September 1, 2008  All increases to take effect September 1 of each year 39

Wage Increase History

 Aside from the annual progression on the salary schedule, and with the exception of the

final

of 16 steps, there has been

no base increase

on any step for the

entire duration

of the current six year contract. 40 40

Stagnant Value...or Worse

 As can be seen on the following slide, a first step employee

in 2002 will earn the same as a first step employee in 2008

, and so on, through the following fourteen steps.

 An employee must progress through the wage matrix

for sixteen years

before he or she will earn a salary higher than a comparable employee who could have been hired as much as six years later.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

2002-2008 Masters Salary Schedule

8/31/2002

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 65,600

9/1/2003

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 65,600

3/1/2004

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 66,600

1/1/2005

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 67,100

1/1/2006

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 68,100

1/1/2007

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 68,600

1/1/2008

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 69,600

Wage Increase History for Steps 1-15

4.0% 3.0% 2.0% 1.0% 0.0% 2002 2003 2004 2005 2006 2007 2008

43 43

Surpassed by the Rate of Inflation

 According to the Bureau of Labor Statistics, from 2002 through 2007 the Consumer Price Index for all Urban Consumers (CPI-U) increased by an annual average of 2.66%  This represents an overall increase of 15.4% 44 44

CPI- U (2002-2007)

Year 2002 2003 2004 2005 2006 2007 CPI 180.9

184.3

190.3

196.8

201.8

210.0

CPI-U-Northeast Region (December) % Increase 1.9

3.3

3.4

2.5

4.1

16.1% Total 45

Lack of Salary Increase when the Rate of Inflation is Considered

 Thus, over the course of the current contract, the value of a particular salary step actual depreciates.

46 46

Behind the Pace of Inflation

62,000 60,000 58,000 56,000 54,000 52,000 50,000 48,000 46,000 2002 Actual Adjusted 2003 2004 2005 2006 2007

47 47

Going in the Wrong Direction

 Although difficult to believe, the starting and lower step salaries in the present contract are actually

less

than the previous contract.

 Using the Masters salary schedules as an example...

Step 1 2 3

4 5 6 7 13 14 15 16 8 9 10 11 12

2002 Salary 35000 37,500 38,500

39,500 40,500 41,100 41,800 42,700 43,600 47,450 46,050 47,450 48,550 49,650 51,000 65,600

2007 Salary 30,400 33,400 35,400

39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 68,600 49

Effect of Inflation on Masters Degree Matrix, 2002-2007

 Teachers with a Masters Degree hired in 2007 are not only paid less than their identically situated 2002 counterparts, but they lose additional thousands of dollars as a result of inflation 50

Step

1 2 3 4 5 6 7 13 14 15 16 8 9 10 11 12

2002 Salary

35000 37,500 38,500 39,500 40,500 41,100 41,800 42,700 43,600 47,450 46,050 47,450 48,550 49,650 51,000 65,600

2007 Salary

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 68,600

Inflation Adjusted

39,981 42,836 43,407 44,550 45,692 46,377 47,177 48,205 49,233 50,490 51,975 53,631 54,888 56,144 57,743 73,793

Lost to

5,505 5,633 5,790 5,925 6,181 6,338 6,494 6,743 5,193

Inflation

9,581 9,436 8,007 5,050 5,192 5,277 5,377

% Lost to

13 13 13 8 13 13 13 13 13 13 13 13 13

Inflation

27 25 21 51

Marginal Gain

 Even though the highest salary steps in the current contract have increased from the 1998-2002 contract, the actual gains are negligible.

 For example, the maximum salary in 2002 was $66,000. The maximum salary in 2008 is $70,000.

Wage Comparables

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.

54 54

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.

55 55



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 56

Current Composition of the Bargaining Unit (with retirees)

B+15 5 6 7 1 2 3 4 8 9 10 11 12 13 14 15 16 TOTAL Bachelors

6 15 23 24 19 14 6 5 6 7 3 3 3 6 2 29

171

4 1 4 1 1 2 4 7 3 2 2 1 1 26

59 B +24

2 4 6 4 18 7 6 5 11 3 7 6 5 9 5 51

149 Masters

1 1 3 9 22 13 16 14 14 5 7 6 6 10 10 142

279 M +15

1 5 32

1 3 2 4 3 1 3 3 1

M+30

1 4 4 30

5 2 3 4 3 1 2 1 1

TOTAL

9 22 34 41 72 42 35 36 38 21 23 19 18 31 27 310

778

Current Composition of the Bargaining Unit (without retirees)

B+15 9 10 11 12 13 14 15 16 TOTAL 1 2 3 4 5 6 7 8 Bachelors

6 15 23 24 19 14 6 5 6 7 3 3 3 6 2 29

171

2 1 1 26

1 4 1 1 2 4 7 3 2 4

B +24

2 4 6 4 18 7 6 5 11 3 7 6 5 9 5 51

149 Masters

1 1 3 9 22 13 16 14 14 5 7 6 6 10 10 87

224 M +15

1 5 32

1 3 2 4 3 1 3 3 1

M+30

1 4 4 30

5 2 3 4 3 1 2 1 1

TOTAL

9 22 34 41 72 42 35 36 38 21 23 19 18 31 27 255

723

Bargaining Unit Average Salary

 The average bargaining unit salary in 2007 when applying the preceding salary step placement to the corresponding matrices is $52,185.

Regression

 This average is actually.8% less than the average salaries for the preceding 4 years:  2003: $53,841  2004: $53,987  2005: $53,079  2006: $52,040 60

Disparate Levels of Financial Commitment

 Examination of data concerning all of the school districts in Lackawanna shows that Scranton lags behind in expenditures related to teaching.

Decreasing Instructional Expenditures

 From 2003 to 2007, the District’s total instructional expenditures has decreased by almost a percentage point:  2003: 92.6%  2004: 92.4%  2005: 90.6%  2006: 90.7%  2007: 90.1% 62

Falling Behind

 Yet, notwithstanding the Scranton School District’s -0.4% annual rate of change, a composite of all Lackawanna County school districts had a positive growth of .2%.

Falling Behind

 From 2002-2006, that same instructional expenditure grew at a rate slower than the average of the school districts in the county:  Scranton: 3.8%  County: 4.8% 64

Falling Behind

 Although Scranton’s total bargaining unit salaries from 2002 to 2006 did increase by 1.9%, the counties composite of districts surpassed this percentage by .7%.

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.

Step One – Lackawanna County

Bachelors Masters Mast +15 Mast +30

LACKAWANNA COUNTY

SCRANTON $30,400 $30,400 $30,400 $30,400 Abington Heights Carbondale Dunmore (2003 - 2008) Lakeland Mid Valley North Pocono Old Forge Riverside (2003-2008) Valley View (2003-2008) $41,640 $34,745 $31,367 $32,600 $38,800 $36,400 $41,290 $35,263 $35,165 $44,265 $36,378 $31,742 $33,700 $40,600 $37,800 $42,762 $36,541 $36,365 $46,665 (+18) $39,200 $44,235 (+12) $38,101 $37,665 $48,965 (+36) $37,378 $31,992 $34,600 $42,400 $40,600 $45,708 $39,627 $38,965 67

Starting Salaries in the Region

 This disparity is mirrored when comparing the starting salaries in nearby school districts that are not in Lackawanna County.

 Once again, Scranton is dead last.

Step One – Area School Districts

Bachelors $30,400 Masters $30,400 Mast +15 $30,400 SCRANTON

REGION

Delaware Valley Hazleton Montrose Pittston Pocono Mountain Tunkhannock Wilkes-Barre $45,250 $36,969 $40,273 $35,000 $36,652 $38,123 $35,265 $48,250 $39,464 $42,043 $41,650 $43,992 $40,209 $41,346 $42,928 $43,000 $43,316 $45,466 (+12) $42,683 (+18) 69

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 8 th step – with the comparable number of teaching years at the other school districts in the county.

8 Step – Lackawanna County

Mast + 15 Salary Step Bachelors Masters

LACKAWANNA COUNTY

SCRANTON 8 of 16 $42,100 $42,700 $42,900 Mast + 30 $43,100 Abington Heights Carbondale Dunmore (2003 - 2008) Lakeland (2002 - 2007) Mid Valley North Pocono Old Forge Riverside (2003 - 2008) Valley View (2003 - 2008) 8 of 15 8 of 23 8 of 16 8 of 19 8 of 18 8 of 16 8 of 18 8 of 18 8 of 21 $47,065 $49,690 $43,061 $44,694 $45,635 $46,010 $36,383 $37,483 $44,200 $42,950 $45,638 $44,546 $42,107 $46,000 $44,350 $47,110 $46,161 $43,307 $52,090 (+18) $45,950 $48,583 (+12) $48,131 $44,607 $54,390 (+36) $45,694 $46,260 $39,105 $47,800 $47,550 $50,056 $50,059 $45,907 71

8 Step – Lackawanna County

 With the lone exception of Lakeland, the Scranton School District pays its teachers after 8 years at the

lowest base rate

. 72

8 Step in the Region

 Venturing outside of Lackawanna County to neighboring districts, one finds that Scranton’s pay after 8 years on the salary scale is, once again, the

lowest

. 73

8 Step in the Region

Salary Step 8 of 16 Bachelors $42,100 Masters $42,700 Mast + 15 $42,900 Mast + 30 $43,100 SCRANTON

REGION

Delaware Valley Hazleton Montrose Pittston Pocono Mountain Tunkhannock Wilkes-Barre 8 of 16 8 of 14 8 of 12 8 of 15 8 of 15 8 of 17 8 of 15 $52,105 $47,021 $52,220 $56,767 $49,651 $54,433 $43,900 $44,962 $44,939 $44,641 $49,980 $50,808 $49,589 $51,508 $55,540 $53,788 $56,646 $51,948 $51,648 (+12) $52,281 (+12) $52,063 (+18) $53,238 $54,145 $54,492 $53,300 (+27) 74

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.

Maximum Salaries – Lackawanna County

SCRANTON Abington Heights Carbondale Dunmore (2003 - 2008) Lakeland (2002 - 2007) Mid Valley North Pocono Old Forge Riverside (2003 - 2008) Valley View (2003 2008) Bachelor $67,950 $59,875 $60,881 $67,385 $60,613 $60,800 $67,050 $61,769 $57,808 Masters $69,600 $62,500 $62,514 $69,110 $62,872 $62,600 $68,850 $63,297 $59,904 $62,614 $63,814 Mast + 15 $69,800 $64,900 (+18) $70,650 $64,778 (+12) $62,460 $65,114 Mast + 30 $70,000 $67,200 (+36) $63,514 $70,260 $64,120 $64,400 $72,450 $66,257 $64,962 $66,414 Doctorate $70,500 $79,550 $69,440 (+75) 76

Maximum Salaries in the Region

SCRANTON Delaware Valley Hazleton Montrose Pittston Pocono Mountain Tunkhannock Wilkes-Barre Bachelor Masters Mast + 15 Mast + 30 Doctorate $67,950 $69,600 $69,800 $70,000 $60,112 $58,760 $63,211 $73,500 $62,267 $65,844 $64,191 $67,162 $66,541 $68,478 $71,112 $51,365 $61,615 $58,201 $57,034 $66,640 $72,814 $68,306 $64,070 $65,544 (+12) $61,982 $64,455 (+18) $74,153 $70,805 $67,754 $65,694 (+27) $76,803 $71,662 $70,639 77

Reduction in Salary Steps

Proposal

 Reduce the number of salary steps from sixteen to twelve.

Current Salary Steps

LACKAWANNA COUNTY

SCRANTON 1 of 16 Abington Heights Carbondale Dunmore (2003 - 2008) Lakeland Mid Valley North Pocono Old Forge Riverside (2003-2008) Valley View (2003-2008) 1 of 15 1 of 23 1 of 16 1 of 19 1 of 18 1 of 15 1 of 18 1 of 18 1 of 21 80

Current Salary Steps

REGION

Delaware Valley Hazleton Montrose Pittston Pocono Mountain Tunkhannock Wilkes-Barre 1 of 16 1 of 14 1 of 12 1 of 15 1 of 11 (2012) 1 of 17 1 of 15 81

Wait to Get Paid Appropriate Wages

 As has been shown, a teacher in the District must advance from the 15 th to the 16 th salary step to receive what is even arguably a fair wage.

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.

Eliminate the Sixteen Year Wait

 The Federation’s proposal seeks to shorten the time-period a teacher must wait before achieving an appropriate wage.

HEALTH INSURANCE

Proposal

 Bargaining Unit Members shall contribute by payroll deduction $55 per month for Blue Cross Access II or $105 per month for Traditional Blue Cross Coverage.

History

 In order to properly consider the District’s proposal and to understand the true scope of the crisis in which this bargaining unit finds itself, the recent evolution of the health insurance provisions must be explored. 87

No Contribution Prior to 2000

 As in every other school district in this Region, prior to 2000 health insurance was paid entirely by the District.

Assumption of Responsibility for Payment

 As a result of negotiations for the 1998 contract, the system that had long been in place between the parties was literally turned upside-down.

 From this point forward, the Federation placed itself in a unfathomable position from which it is still attempting to recover.

Fool’s Gold

 Under the guise of the District’s transformation to self-insurance, the Federation was unwittingly duped into believing that if it assumed responsibility for any increases in insurance premiums, it would reap the financial benefit if self-insured costs were contained.

Article 74

 The following language was therefore added to the contract: “Bargaining unit employees shall contribute by payroll deduction increased premium costs in excess of those the district paid for the 1998 year for all health/dental insurance plans offered in compliance with Section 125 of the Internal revenue Code.” 91

A Good Start

 The membership initially received a very short term benefit. As the self-insured plan ran off the old claims, the members actually received a refund.

 This benefit was short-lived.

The Storm Arrives

 The result was inevitable. The combination of the self-insured policies obligations under a full cycle of its own claims, coupled with sharply increased nationwide healthcare costs ended the honeymoon period very quickly.

 In short order, what had historically been an absence of any health insurance co-payment quickly became a series of sharply increasing costs.

Burden-Shifting

 The overwhelming increased insurance costs fell squarely on the shoulders of the bargaining unit.

 This problem has perpetuated itself, as the District has absolutely no incentive to reduce costs.

The Result

 The net result of this unfortunate history is the teachers in the Scranton School District now pay the

highest health insurance co payments

in the...

 COUNTY  REGION  COMMONWEALTH!!!

Contribution Rates

 The sharp increase in contribution rates over the decade is nothing less than startling.

2002

Category

Single H & W P & Child P & Children Family

2002 Bi-Weekly Employee Contribution (including Dental)

$6.59

$0.00

$3.32

$25.50

2002 Yearly Contribution

$171.34

$0.00

$86.32

$663.00

Percent Increase Over Previous Year

N/A N/A N/A N/A N/A 97

2003

Category

Single H & W P & Child P & Children Family

2003 Bi-Weekly Employee Contribution (including Dental)

$22.55

$33.47

$8.89

$65.99

$67.77

2003 Yearly Contribution

$586.30

$870.22

$231.14

$1,715.74

$1,762.02

Percent Increase Over Previous Year

N/A N/A 242.2% 1887.7% 165.8% 98

2004

Category

Single H & W P & Child P & Children Family

2004 Bi-Weekly Employee Contribution (including Dental)

$35.42

$61.36

$11.99

$63.39

$101.13

Yearly Contribution

$920.92

$1,595.36

$311.74

$1,648.14

$2,629.38

Percent Increase Over Previous Year

57% 83% 35% -4% 49% 99

2005

Category

Single H & W P & Child P & Children Family

2005 Bi-Weekly Employee Contribution (including Dental)

$64.61

$135.59

$61.49

$129.32

$184.23

2005 Yearly Contribution

$1,679.86

$3,525.34

$1,598.74

$3,362.32

$4,789.98

Percent Increase Over Previous Year

82.4% 121.0% 412.8% 104.0% 82.2% 100

2006

Category

Single H & W P & Child P & Children Family

2006 Bi-Weekly Emp Contribution (including Dental)

$97.91

$213.48

$113.82

$198.95

$274.51

2006 Yearly Contribution

$2,545.66

$5,550.48

$2,959.32

$5,172.70

$7,137.26

Percent Increase Over Previous Year

51.5% 57.4% 85.1% 53.8% 49.0% 101

2007

Category

Single H & W P & Child P & Children Family

2007 Bi-Weekly Emp Contribution (Including Dental) 2007 Yearly Contribution

$79.59

$172.53

$86.48

$162.36

$226.66

$2,069.34

$4,485.78

$2,248.48

$4,221.36

$5,893.16

Percent Increase Over Previous Year

-18.7% -19.2% -24.0% -18.4% -17.4% 102

2008

Category

Single H & W P & Child P & Children Family

2008 Bi-Weekly Employee Contribution (including Dental)

$110.95

$246.00

$136.09

$228.18

$312.24

2008 Yearly Contribution

$2,884.70

$6,396.00

$3,538.34

$5,932.68

$8,118.24

Percent Increase Over Previous Year

39.4% 42.6% 57.4% 40.5% 37.8% 103

Increase Over the Life of the Contract

 Single: 1,583%  Husband and Wife: 635% (2003-2008)  Parent and Child: 1,430% (2003-2008)  Parent and Children: 6,772%  Family: 1,124% 104

Comparables

No Comparison

 The contribution rates paid by the teachers in Scranton are breathtaking when viewed in a vacuum, but when considered what the other teacher in the region pay (or don’t pay,) the tragedy of the situation is truly revealed.

106

Co-Pays in Lackawanna County

SCRANTON Abington Heights Carbondale Dunmore (2004-2008) Lakeland Mid Valley North Pocono Old Forge Riverside (2003-2008) Valley View (2003-2008)

Single $0 $0 $0 $0 $0

$2,885

$0 $0 $0 $0 Single + Child $0 $0 $0 $0 $0

$3,538

$0 $0 $0 $0 Single + Children $0 $0 $0 $0 $0

$5,933

$0 $0 $0 $0 Family $0 $0 $0 $0 $0

$8,118

$0 $0 $0 $0

107

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 co payment at all.

 The outlook is similar for the remainder of the region.

108

Co-Pays in the Region

No Distinction

SCRANTON Delaware Valley Hazleton Montrose Pittston Pocono Mountain Tunkhannock Wilkes-Barre $650 $0 1% $0 1% $0

Single Single + Child Single + Children

$2,885 $3,538 $5,933

Family

$8,118 $156p/y $208 p/y $260 p/y $260 p/y 109

Incomparable

 There is not a co-pay requirement elsewhere in the region that is higher than 1% of the employees’ salary.

 This includes the two districts with a dollar amount specified – Delaware Valley and Pocono Mountain. 110

The Entire Commonwealth

 The Federation is unaware of any school district in Pennsylvania whose contribution rates even approach those paid by this membership.

111

Devastating Effect

 The runaway insurance co-payments have fundamentally altered the take-home pay of teachers in this District.

 Because the contribution rates increase so significantly each year, the teachers experience a de-facto salary reduction.

112

Overwhelming Percentage of Income

 Using an average District base salary of $52,000, below is the percentage of salary using current contribution rates:  Single: 5.5%  Husband and Wife: 12%  Parent and Child: 6.8%  Parent and Children: 11.4%  Family: 15.6% 113

Working Longer to Make Less

 It is an undisputed fact that with the insurance co-pay, a teacher working in 2008 actually makes less than a teacher who was on the same salary step in 1995!

114

Decrease in Base Salary Combined with Single Insurance Rate

STEP

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

8/95 SALARY

33,500 34,500 35,000 35,500 36,400 36,900 37,900 39,000 40,500 41,600 42,700 44,000 44,500 45,000 45,500 55,200

8/08 SALARY

30,400 33,400 35,400 39,500 40,500 41,100 41,800 42,700 43,600 44,700 46,050 47,450 48,550 49,650 51,000 69,600

SINGLE INSURANCE

$2,885.00

ACTUALSALARY NET 13 YEAR GAIN

$27,515.00

$30,515.00

$32,515.00

($5,985.00) ($3,985.00) ($2,485.00) $36,615.00

$37,615.00

$38,215.00

$38,915.00

$1,115.00

$1,215.00

$1,315.00

$1,015.00

$39,815.00

$40,715.00

$41,815.00

$43,165.00

$44,565.00

$45,665.00

$46,765.00

$48,115.00

$66,715.00

$815.00

$215.00

$465.00

$565.00

$1,165.00

$1,765.00

$2,615.00

$11,515.00

115

The Federation’s Proposal

 The co-payment amount of $55 monthly as proposed by the Federation is more than reasonable.

 Would still be the only District in Lackawanna County whose teachers are responsible for

any

co-payment.

116

Still More Than 1%

 Utilizing an average bargaining unit salary of $52,000, the payment proposed by the Federation equals approximately 1.2% of salary.

 This amount remains higher than any of the co-pays imposed in the region.

117

New Rates Must Apply When Contract Begins

 The current contract expires on August 31, 2008.

 Any new rates must take effect on September 1, 2008.

 Relief cannot wait for the District’s convenience at the beginning of the following calendar year.

118

A Free Ride Ended

 The District has, for the better part of six years, reaped an enormous windfall from the membership of this Union.

 After quickly realizing its mistake, the Federation has waited patiently to correct this costly error.

 The membership can never recoup the thousands of dollars each has each paid in contributions over the years, but it can move forward with the knowledge that long overdue fairness has finally returned. 119

RETIREMENT INCENTIVE

Current Language

 Requires 20 years of service, regardless of age  If a retiree is to receive money, it will be paid out over 7 years  Any employee who works longer than 35 years cannot receive the benefit 121

Current Language (Cont.)

 If a retiree wishes to continue to participate in the District’s health care plan (at full cost,) he will receive a cash payout equal only to the balance of $10,000 less health care insurance expenses.  Any money paid according to the “sick and personal leave” provision is distributed over one or two years (depending on amount accumulated) and is also applied toward premium.

122

Proposals

 Maintain the 20 years of service to qualify.

 No loss of benefit if a teacher retires after 35 years.

 The retiree gets paid money, instead of being forced to apply it towards health insurance.

 Sick and personal leave incentive paid in one lump sum.

 Continued participation in health care plan through age of Medicare eligibility under the same terms and conditions as an active employee. 123

Sick and Personal Leave Incentive

 The retiree may wait up to two years to receive the compensation for unused sick and personal leave that he or she has literally spent an entire career accruing.

 The District has reaped the benefit of this unsurpassed commitment by the teacher for at least twenty years.

 It nevertheless retains the value of that leave for an additional year while the employee is forced to wait.

124

Eliminate Prohibition on 35+ Years

 If a teacher teaches even one day past his or her 35 th year, the teacher is disqualified from receiving the benefit.

 Teachers should be rewarded, not penalized, for their loyalty and dedication to the District.

 This is age discrimination at its very worst.

125



Separate Retirement Incentive from Health Insurance

All retirees who wish to participate in the District’s health care plan (at full cost) premiums.

must

allow their annual incentive payout serve as an offset toward  As long as they participate in the health care plan, they will never receive a cash payout until the premium is paid.

 This includes both the seven year “payment” and the sick and personal leave incentive.

126

Article 76: Retirement – Not Insurance

 The Federation’s proposal seeks to un-tether the coexistence between retirement incentive and insurance participation that is created by the current contract language.  Allows the incentive to serve its true purpose – as a “buyout” for retiring early.

127

Current Practice

 The proceeds defray the cost of health care premiums.

 The retiree is responsible for 100% of the cost of health insurance beginning in September of the retirement year.

128

Current Practice cont.

 The retiree pays 18 months of premium the first year of retirement.

 The District covers the first 6 months (September February) of the retiree’s health insurance, and the 18 month payment is due in March.

 Subsequent payments are made annually in March for the entire upcoming year  If the premium exceeds the proceeds, the retiree is responsible for the difference.

129

Payment Still the Requirement of Retiree

 By this component of its proposal, the Federation does not seek to alleviate the retiree’s obligations with regard to the payment of health care.

 Instead, it merely seeks to place the true value of the incentive in the hands of the retirees.  What they decide to do with their money is entirely their choice.

130

Continued Participation

 Even if retirees should elect not to participate in the above election, simple decency requires that they be permitted to continue to participate in the District’s health care plan – at their own expense –under the same terms and conditions (including premium cost) as active employees.

131

EQUIVALENCY

Equivalency Clause

 The SFT seeks to return the equivalency clause that was removed in the 2002-2008 contract.

133

Proposed Language

 

ARTICLE 86 EQUIVALENCY

Should the School District enter into any agreement with any group of employees, other than those covered by this Agreement, providing for a new benefit or new level of benefit in addition to or greater than that afforded to employees covered by this Agreement, said new benefit or new level of benefit shall become applicable with respect to employees covered by this Agreement, effective as of the same date such becomes applicable for the other group. 134

History

 The equivalency clause, which guaranteed members of this bargaining unit all new or greater benefits provided to non-bargaining unit employees, was originally contained in the 1993-1995 contract.

135

Given Away

 During negotiations for the 2000-02 contract, in return for a one-time benefit that served no value to the bargaining unit as a whole, the then Federation leadership inexplicably agreed to the removal of the hard-won equivalency clause.

136

Real Value

 Two recent instances where the absence of an equivalency clause has resulted in appreciable detriment to the bargaining unit:  Administrative pay raise of 3.5% in 2008.

 Retirement Incentive: School principals can retire at 39 th year, while members must retire by the 35 th year in order to utilize this benefit. 137

Special Education

138

Proposals

 Continue Special Support Services as contained in Article 46  Guarantee proportional and equitable distribution of special education students in regular education classrooms.

 Place support services in classrooms consistent with the IDEA.

139

Proposals Cont.

 The establishment of a Joint Committee comprised of equal part District and Federation representatives who shall meet regularly for the purpose of:  Establishing adequate training for Bargaining Unit Members regarding the placement of special education students in their classrooms, and  To foster compliance with the Individuals with Disabilities Education Act (“IDEA”) by both parties.

140

Proposal: Retain Article 46 “Special Supportive Services” in its Entirety.

District’s Proposal: Elimination

 The District proposes to eliminate Article 46 “Special Supportive Services” from the Contract altogether.

 The reasoning offered by the District is that the Article is superfluous and rendered unnecessary by the IDEA.

 The Federation could not disagree more strongly.

142



Purpose of Special Supportive Services

Article 46 serves an vital function toward the early identification of special education students and students with behavioral problems.

143

How It Works

 Teachers notify the Principal in writing of repetitive ordinary discipline or behavioral problems.

 The Principal takes the appropriate action, after which the teacher continues to keep the Principal appraised of the student’s progress, or lack thereof.

 If the matters go beyond repetitive ordinary discipline or behavioral problems, the teacher again notifies the Principal in writing of the extraordinary problems discovered.

144

How It Works (Cont.)

 If the teacher’s early identification of problems is corroborated by the District’s testing, supportive assistance will be provided to the teacher in an effort to reach correction or cure.

145

Early Detection the Key

 It cannot be disputed that the early detection of “extraordinary problems” beyond ordinary discipline or behavioral problems is tantamount toward identifying students with special needs.

 It is similarly fundamental that the earlier the detection, the greater the benefit for the student – and the teacher.

146

How Else Can a Student be Identified?

 Without the system established by Article 46, the District has

no framework

toward the identification of special needs students.

 Consequently, these students will never receive the support services required by law.

147

Meanwhile...

 Undetected, yet disruptive, students will continue to detrimentally affect the classroom and teaching environment for all other students.

148

Denial

 It is either naivety, ignorance, or both, for the District to believe that it can comply with the mandates of the contract and the law as they concern the treatment of special education students absent a detection procedure such as the one set forth in Article 46.

149

Proposal: Classroom Composition

The Law

 The parties recognize that the law requires that eligible students be integrated with regular students in both academic and non academic classes.

151 151

IDEA

 The Individuals with Disabilities Education Act (IDEA) requires that children with disabilities be educated in the “least restrictive environment” appropriate to meet their “unique needs.” The IDEA contemplates that the “least restrictive environment” analysis will begin with the placement in the regular education classroom.

152 152

Purpose Behind the Act

 It is well recognized that the “least restrictive environment” provisions of the Act rely upon the fundamental concept that a special education student be integrated in a regular education setting in order to achieve the benefits of “inclusion” in the same educational environment as non-disabled children.

153 153

Regular Education in Name Only

 It, therefore, follows that a regular education classroom ceases to be “regular” once the number of special education students in that classroom exceeds the number of regular education students.

154 154

“Least Restrictive Environment” Required by Law

 Not only would such a disproportionate number of special education students run afoul of the spirit of the Act, but it would be a direct violation of the law.

155 155

District in Violation of the IDEA

 Contrary to the IDEA’s mandates, the District has systematically placed special education students in classrooms where they have become the majority.

156 156

Violation at all Levels

 Such abuse is not limited to one school or one grade level.

 Violations range from elementary school straight through to high school.

 The following is not exhaustive, but merely a sampling.

157 157

Examples: 2006-2007

School Lincoln Jackson Scranton H.S.

Scranton H.S.

Subject 5th Science Math Science Math Total # of students

22 22 22 29 24

# Special Ed. Students

14 18 15 15 12

158 158

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.

159 159

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.

160

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 the Act. 161 161

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.

162 162

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 163 163

Proposal: Joint Committee for Training and Compliance

A Monumental Change in the Law

 A sea change occurred with regard to the education of special education students when the bill containing the current IDEA amendments was signed by former President Bill Clinton on June 4, 1997.

165

Failure to Adapt

 Yet, despite the entirely new mandates of the law, the District did not provide any guidance to its teacher.

 This lack of guidance continues to this day.

166

No Training

 The District provides absolutely no training to its teachers regarding IDEA compliance and the teaching and treatment of special education students.

167

“Special” Education

 Special Education teachers receive highly focused and intensive training on educating their special needs students.

 A regular education teacher receives no such training.

168

Regular Teachers Teach Special Education Students

 Yet, based upon the “least restrictive environment” mandates of the IDEA, it is unavoidable for regular education teachers, at one time or another, to teach special education students.

 In some instances, they are simply unqualified to do so.

 As a consequence,

all

students suffer.

169

Training Necessary

 The Federations proposal of the establishment of a joint committee to address this dire need will address an enormous problem found at every grade level throughout the District.

 The Federation’s research has revealed that a multitude of educational and training options of this nature exist, and the Committee can explore and implement these opportunities.

170

Address Additional Compliance Issues

 The Committee will provide an additional forum for both parties to address concerns related to adherence to the IDEA.

 This shall include the appropriate use and allocation of supplementary aids and support services.

171

A Proud Tradition

 The SFT has a long and proud history. It cannot, however, be denied that mistakes have been made in the recent past which continue to harm the current membership.

Through this proceeding, a new generation of leadership looks to begin the process of restoring, building and strengthening the finest teachers’ local union in the Commonwealth.

173

Thank You For Your Attention