Presentation to: Arizona Association of School Business Officials Spring Conference March 28, 2013 Brenda Thomas-Martinez, Business Manager Blue Ridge.
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Presentation to:Presentation to:
Arizona Association of School Business OfficialsArizona Association of School Business Officials
Spring ConferenceSpring Conference
March 28, 2013
Brenda Thomas-Martinez, Business ManagerBlue Ridge Unified School District
Alternative Salary StructureAlternative Salary Structure
History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:
““Boarding Round” Pay SystemBoarding Round” Pay System-Throughout country in 1800’s-Throughout country in 1800’s-Compensation mainly was room -Compensation mainly was room and board for teacher and board for teacher
-Strong incentive for teachers to maintain -Strong incentive for teachers to maintain positive relations with community positive relations with community members and maintain a high moral members and maintain a high moral character character
-Reflected the barter economy of the time-Reflected the barter economy of the time
March 28, 2013 2
History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:
Position-based Salary SystemPosition-based Salary System
-Began in the early 1900’s-Began in the early 1900’s
-Paid elementary teachers less than -Paid elementary teachers less than secondary teachers secondary teachers
-Paid women and minorities less than -Paid women and minorities less than non-minority males non-minority males
-Reflected societal biases of the times-Reflected societal biases of the timesMarch 28, 2013 3
History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:
Teacher Salary SchedulesTeacher Salary Schedules
-First implemented in late 1920’s-First implemented in late 1920’s
-Teachers paid based on increments and -Teachers paid based on increments and steps on a rigid salary schedule steps on a rigid salary schedule
-Years of experience in classroom-Years of experience in classroom
- Number of graduate credits - Number of graduate credits earned earned
-Paid same salary to teachers with same -Paid same salary to teachers with same qualifications regardless of grade level qualifications regardless of grade level taught, gender, or race taught, gender, or race
March 28, 2013 4
Old Traditional Salary ScheduleOld Traditional Salary Schedule
Pros and Cons of Salary SchedulesPros and Cons of Salary Schedules
ProsPros Easy to administer Easy to administer whenwhen
funds are availablefunds are available Predictable for staffPredictable for staff
-Can see where they -Can see where they “should” be at a given “should” be at a given time in their careertime in their career
-Years experience-Years experience
-Education gained-Education gained
ConsCons Inflexible to adjustInflexible to adjust Sets artificial expectationsSets artificial expectations Sets limits for veteran staffSets limits for veteran staff
-Columns top out-Columns top out
-Maximum education hours-Maximum education hours ““Steps” vs. raise debateSteps” vs. raise debate ““Across the Board” vs. Across the Board” vs.
percentage raisespercentage raises
Who benefits more?Who benefits more?
Young staff orYoung staff or
Veteran staffVeteran staffMarch 28, 2013 6
Sample of Recent Legislative Increases to EducationSample of Recent Legislative Increases to EducationFUNDING GNP-IPD DIFFERENCE COMPOUNDED
PER ADE LOSS
1991-92 1.00% 4.10% 3.10% 3.10%
1992-93 0.50% 3.60% 3.10% 6.30%
1993-94 0.00% 2.60% 2.60% 9.06%
1994-95 2.00% 2.60% 0.60% 9.71%
1995-96 1.00% 2.20% 1.20% 11.03%
1996-97 0.40% 2.40% 2.00% 13.25%
1997-98 1.90% 2.00% 0.10% 13.36%
1998-99 1.70% 1.90% 0.20% 13.59%
1999-00 1.80% 1.20% -0.60% 12.91%
2000-01 1.00% 1.40% 0.40% 13.36%
2001-02 2.50% 2.30% -0.20% 13.13%
2002-03 2.00% 2.10% 0.10% 13.25%
2003-04 2.00% 1.20% -0.80% 12.34%
2004-05 2.00% 1.80% -0.20% 12.12%
TOTAL 19.80% 31.40% 11.60%
The News Gets Even Worse…The News Gets Even Worse…
From Chuck Essigs, AASBO financial guru:According to state budget reports for 2007-08 school year, state funding to schools was $4,440 per student.For the 2011-12 school year, the estimate for state funding was $3,628 per student. This means that the amount of state funding per pupil has DECLINED by $812 per student or 18.3% since 2007-08.There is NO way to fund salary schedules with that level of reduced funding! Alternatives must be developed.
March 28, 2013 8
How Alternative Structure WorksHow Alternative Structure Works Contract/wage notice contains a salary amount onlyContract/wage notice contains a salary amount only
-Annual amount for certified staff-Annual amount for certified staff-Hourly rate for classified staff-Hourly rate for classified staff
Contract/wage notice adjusted annually by the BoardContract/wage notice adjusted annually by the Board-Across the board increases-Across the board increases-Percentage increases-Percentage increases-Combination of both-Combination of both-Or no increase may be given-Or no increase may be given
No steps or lanes listed on contractsNo steps or lanes listed on contracts No one is ever “frozen” at a step – they get a No one is ever “frozen” at a step – they get a “raise”“raise” Increases given for education growthIncreases given for education growth Lends itself to performance-based incentivesLends itself to performance-based incentivesMarch 28, 2013 9
Salary Increase Scenarios Salary Increase Scenarios Easy to calculate salary increase scenariosEasy to calculate salary increase scenarios
After available funds for raises determinedAfter available funds for raises determined Have total dollar amount of all contractsHave total dollar amount of all contracts
Determine total amount for each 1% increaseDetermine total amount for each 1% increase --For $10 million - $100,000 per 1% salary increaseFor $10 million - $100,000 per 1% salary increase
Have total amount of eligible employeesHave total amount of eligible employeesDetermine total amount per $100 increaseDetermine total amount per $100 increase -For 150 teachers - $15,000 per $100 salary -For 150 teachers - $15,000 per $100 salary
increaseincrease Can work with different combinationsCan work with different combinations Across the Board and percentage increases possibleAcross the Board and percentage increases possible Not restricted by “steps” of a traditional salary scheduleNot restricted by “steps” of a traditional salary schedule
March 28, 2013 10
Benefits to ProgramBenefits to Program Budgeting for the upcoming year simplifiedBudgeting for the upcoming year simplified
Easy to determine costs of raises compared to Easy to determine costs of raises compared to funds available for salary increasesfunds available for salary increases
-Across the board and/or percentage-Across the board and/or percentage Experienced staff never reach “top of the scale”Experienced staff never reach “top of the scale”
No penalty for longevity No penalty for longevity -Salaries not frozen … no artificial steps-Salaries not frozen … no artificial steps
No final column for education movesNo final column for education movesEncourages continuing educationEncourages continuing education
Flexibility in hiring new staff membersFlexibility in hiring new staff membersAdditional salary for unique qualificationsAdditional salary for unique qualificationsContinually add to entry level – stay competitiveContinually add to entry level – stay competitive
March 28, 2013 11
How to Initially Place StaffHow to Initially Place Staff Continuing StaffContinuing Staff
-Contract based on previous year’s salary with -Contract based on previous year’s salary with Governing Board approved salary adjustment Governing Board approved salary adjustment
-Contract dollar amount for certified-Contract dollar amount for certified-Hourly rate for classified staff-Hourly rate for classified staff
Newly Hired Certified StaffNewly Hired Certified Staff-Salary based on various factors locally controlled-Salary based on various factors locally controlled
-Experience, education, and unique -Experience, education, and unique qualifications qualifications
Newly Hired Classified StaffNewly Hired Classified Staff-Entry level rate based on classification of position-Entry level rate based on classification of position
March 28, 2013 12
District Discretion to Place New StaffDistrict Discretion to Place New Staff Teaching Experience AcceptedTeaching Experience Accepted
-Majority of districts give maximum of 5 years of -Majority of districts give maximum of 5 years of teaching experience teaching experience -Governing Board can elect to give more credit -Governing Board can elect to give more credit
as a as a means to recruit experienced teachers means to recruit experienced teachers Credit for Continuing EducationCredit for Continuing Education
19 44,000 39 59,00020 44,750 40 59,750 A point may be given by administration for each
unique qualification, certificate, endorsement, etc.
Performance Pay Program that will be used in the classroom. These will
vary based on the individual needs of the district.
Language can be placed here to provide
information about the school district's Qualification (s): _________ ----> _____Points
Performance Pay Program with respect
to school-wide and individual goals.
The candidate realizes and accepts the fact that this TOTAL POINTS: _____________
offer and the contract are not official until action
is taken by the Governing Board of INITIAL SALARY: _____________
the Lake Havasu Unified School District #1.
_________________________ ____________ ______________________________Administrator Date Teacher
2012-13 2012-13 “Change “Change
Model” for Model” for Lake HavasuLake Havasu
New Teacher with:
MA+12 education
Gifted endorsement
14 years experience
Initial Salary:$44,000
14 12
6
1
19
G/T
Future Year Adjustment ExamplesFuture Year Adjustment Examples For a teacher with 2012-13 salary - $40,000For a teacher with 2012-13 salary - $40,000 2013-14 salary adjustment options:2013-14 salary adjustment options:
Across the board increaseAcross the board increase $700 $ 40,700$700 $ 40,700-higher % increase for younger staff-higher % increase for younger staff
Percentage increase Percentage increase **** 2%2% $ 40,800 $ 40,800-more money for veteran staff members-more money for veteran staff members
Combination of both Combination of both **** $250 + 1%$250 + 1% $ 40,653 $ 40,653-benefits for both young and veteran staff-benefits for both young and veteran staff
Can also add to base salary without “step vs. raise” Can also add to base salary without “step vs. raise” debate. Helps with recruiting new staff membersdebate. Helps with recruiting new staff members
Education increments added to contract amountEducation increments added to contract amount **** - cannot be done with traditional salary schedule - cannot be done with traditional salary schedule
March 28, 2013 15
Language on Teacher ContractLanguage on Teacher Contract No mention of column or step on contractNo mention of column or step on contract Only annual salary is includedOnly annual salary is included
In consideration of services satisfactorily performed, the District agrees to pay you a salary of $44,000 for
184 working days
The contract has a highlighted box that includes The contract has a highlighted box that includes benefits paid on behalf of the employee by the benefits paid on behalf of the employee by the district – most have no idea of the amountdistrict – most have no idea of the amount
Health and life insurance premiums, district’s contribution to ASRS, Worker’s Compensation, Medicare and Social Security, …
March 28, 2013 16
Concept Applies to Support StaffConcept Applies to Support Staff Entry level hourly rates are determined for all positions Entry level hourly rates are determined for all positions
based on points derived from six criteriabased on points derived from six criteria Contracts written with only hourly rates and time Contracts written with only hourly rates and time
requirements (contract days and hours per day) of the requirements (contract days and hours per day) of the position – not based on a salary scheduleposition – not based on a salary schedule
Hourly rates adjusted each year by the Governing BoardHourly rates adjusted each year by the Governing Board
-Across the Board increase to the hourly rate-Across the Board increase to the hourly rate
-Percentage increase to the hourly rate-Percentage increase to the hourly rate
-Combination of both-Combination of both
-Or no increase may be given-Or no increase may be givenMarch 28, 2013 17
Classification of Support StaffClassification of Support Staff Points (1-5) awarded in 6 categories for classification of Points (1-5) awarded in 6 categories for classification of
the position:the position:1.1. Training level/education required for jobTraining level/education required for job2.2. Experience required for specific jobExperience required for specific job3.3. Amount of responsibility associated with jobAmount of responsibility associated with job
-Care of buildings and equipment-Care of buildings and equipment-Supervision of other employees-Supervision of other employees
4.4. Length of time needed to plan and carry out taskLength of time needed to plan and carry out task5.5. Amount of public contact employee hasAmount of public contact employee has6.6. Availability of applicants with desired skillsAvailability of applicants with desired skills
March 28, 2013 18
Training Level/Education RequiredTraining Level/Education Required
FactorFactor PointsPoints
No formal education or trainingNo formal education or training 1 1
High school diploma or equivalentHigh school diploma or equivalent 2 2
Post high school or training requiredPost high school or training required 3 3
Two years technical training or fiveTwo years technical training or five 4 4
years learning on the job requiredyears learning on the job required
College degree or equivalent requiredCollege degree or equivalent required 5 5
March 28, 2013 19
Experience LevelExperience Level
FactorFactor PointsPoints
No experienceNo experience 0 0
Less than one year of experienceLess than one year of experience 1 1
One or two years of experienceOne or two years of experience 2 2
More than two years of experienceMore than two years of experience 3 3
Performs as directed; responsible forPerforms as directed; responsible for 1 1own jobown job
Must use initiative and judgment in Must use initiative and judgment in 2 2in performing job; has responsibilityin performing job; has responsibilityfor some equipment, tools, or moneyfor some equipment, tools, or money
Direct activities of small group or hasDirect activities of small group or has 3 3responsibility for equipment and $$responsibility for equipment and $$
Responsible for several groups and/orResponsible for several groups and/or 4 4important department or divisionimportant department or division
March 28, 2013 21
Time Management LevelTime Management Level
FactorFactor PointsPoints
Routine work with little advancedRoutine work with little advanced 0 0
planningplanning
Must plan 2 to 12 weeks in advanceMust plan 2 to 12 weeks in advance 1 1
Must plan 3 to 6 months in advanceMust plan 3 to 6 months in advance 2 2
Must reduce to writing and plan asMust reduce to writing and plan as 3 3
much as 2 years in advancemuch as 2 years in advance
March 28, 2013 22
Public Contact LevelPublic Contact Level
FactorFactor PointsPoints
Completes work with little or noCompletes work with little or no 0 0
interaction with othersinteraction with others
Interacts daily with fellow workersInteracts daily with fellow workers 1 1
Interacts daily with fellow workers,Interacts daily with fellow workers, 2 2
general public, or studentsgeneral public, or students
Interacts daily with students, adults,Interacts daily with students, adults, 3 3
Some people apply at wages paidSome people apply at wages paid 1 1without an openingwithout an opening
Some apply when job and wagesSome apply when job and wages 2 2are advertisedare advertised
Few people apply when job andFew people apply when job and 3 3wages are advertisewages are advertise
Very few show interest or apply whenVery few show interest or apply when 4 4job and wages are advertisedjob and wages are advertised
Option to add to wages to attractOption to add to wages to attract 5-7 5-7qualified applicants and payqualified applicants and paycomparable wagescomparable wages 24
Support Staff Entry Level RateSupport Staff Entry Level Rate Based on total points for the Based on total points for the POSITIONPOSITION Entry level Entry level hourly rate assigned to each numberhourly rate assigned to each number
25
Points
Entry Level
Hourly Rate
1 7.65
2 8.06
3 8.47
4 8.89
5 9.31
6 9.73
7 10.15
8 10.60
9 11.05
10 11.50
11 11.95
12 12.40
13 12.85
14 13.30
15 13.75
16 14.20
Example of Position ClassificationExample of Position Classification
Yearly Adjustments to Hourly RatesYearly Adjustments to Hourly Rates
Support staff member with a $9.50 hourly rateSupport staff member with a $9.50 hourly rate Across the boardAcross the board
25 cents per hour increase25 cents per hour increase $9.75 per hour$9.75 per hour Percentage increasePercentage increase
3.5% increase to hourly rate3.5% increase to hourly rate $9.83 per hour$9.83 per hour Combination of bothCombination of both
2% plus 10 cents2% plus 10 cents $9.79 per hour$9.79 per hour
Any adjustment can be made to entry level amounts Any adjustment can be made to entry level amounts to stay competitive in recruitingto stay competitive in recruiting
March 28, 2013 27
Selling the ConceptSelling the ConceptCommunication is be the key! – Open and HonestCommunication is be the key! – Open and HonestConcept introduced to district employee groupsConcept introduced to district employee groupsIntroduce the concept to Governing Board in a work sessionIntroduce the concept to Governing Board in a work sessionOpenly discuss the pros and cons and implementation strategiesOpenly discuss the pros and cons and implementation strategies
-Be prepared for initial resistance to change-Be prepared for initial resistance to change-Present long range benefits to experienced and all staff-Present long range benefits to experienced and all staff-Half of any salary increase applied to Salary Determination -Half of any salary increase applied to Salary Determination
ChartChart for following year to help stay competitive in hiring new stafffor following year to help stay competitive in hiring new staff
Why restrict salary opportunities of veteran staff?Why restrict salary opportunities of veteran staff? -Topping out on traditional salary schedule and being frozen-Topping out on traditional salary schedule and being frozen -Desire for more education but no financial reward-Desire for more education but no financial reward
Concept endorsed by Administration, Education Association and Concept endorsed by Administration, Education Association and considered for adoption by the Governing Boardconsidered for adoption by the Governing Board
March 28, 2013 28
Questions?Questions? If you have any questions about the proposed If you have any questions about the proposed
Alternative Salary Structure model or would like Alternative Salary Structure model or would like additional information, please contact:additional information, please contact:
Mike Aylstock Brenda Thomas-MartinezMike Aylstock Brenda Thomas-Martinez