March 26 2014 Whitefish Bay Instructional Employees Compensation Model Three sections of this presentation Why does teacher compensation have to change What was involved in the design process of our salary model ID: 727690
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Slide1
Whitefish Bay
Instructional Employees Compensation Model
March 26, 2014Slide2
Whitefish Bay
Instructional Employees
Compensation Model
Three sections of this presentation:
Why does teacher compensation have to change?
What was involved in the design process of our salary model?
An explanation of the new salary model. Slide3
What is Compensation?
Salary is an element of the compensation system. Other elements include:Health InsuranceDental InsuranceWisconsin RetirementPost-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.Slide4
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.Slide5
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. Slide6
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-of-pocket 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).Slide7
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-of-pocket 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.Slide8
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.Slide9
The
Previous Uniform Salary ScheduleAdvantages:Pay
increases were automatic
.
It was highly predictable for teachers.
At the time, it was affordable.Slide10
Sample Uniform Salary Schedule
Step
BA
BA+6
BA+12
BA+18
BA+24
BA+30
MA
MA+6
MA+12
MA+18
MA+24
MA+30
1
39,573
40,335
41,032
41,858
42,620
43,382
44,14444,93645,73446,66147,58848,514240,10340,86541,62542,38943,15044,04244,93645,79946,59447,52148,77950,040340,76541,52742,29043,05143,81244,77445,79946,72647,52148,44949,97351,494441,84742,61043,37244,13444,89445,85546,99147,91748,71449,64151,23052,818542,93243,69444,45645,22045,97946,94048,18349,11049,90650,83352,48854,146644,01744,77845,53946,30247,06348,02349,37550,30551,09852,02453,74655,466745,86046,62447,38548,14749,10750,56851,49652,29153,22855,00556,799846,94547,70748,46849,23250,19151,76052,68953,48254,40956,26458,119948,02848,78949,55250,31451,27452,95253,87954,67455,60057,52359,4381049,21949,98150,74451,50652,46554,21055,13855,93356,86058,84660,8381151,17551,93552,69853,65855,46856,52857,32358,25160,30462,3571252,36753,12753,89054,98356,86058,05258,84659,77461,89164,0161353,59254,35255,11556,34258,28459,60860,47061,43163,61565,8041454,85155,61356,37457,73259,77461,23262,15863,15265,40467,6531556,14256,90357,69759,18861,39762,98763,98165,00867,32769,6461659,08960,77763,15164,90766,03267,09369,57772,050
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.Slide11
The
Previous Uniform Salary ScheduleProblems: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.Slide12
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.Slide13
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. Slide14
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
.Slide15
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 salarySome factors should be one-time
additional pay
Raise the floor of the salary structure over time, without decreasing salaries.Slide16
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 2013-14 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.Slide17
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. Slide18
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.Slide19
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.”Slide20
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)Slide21
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 scaleExperience/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 non-renewed.)
Earning
an advanced
degree (Masters, Doctorate)
Earning additional WI DPI certifications/licenses
Earning National Board Certification (NBPTS.org)
Teacher leadership
roles (District
c
ommittees, mentoring, coaching, department chairperson, etc.)
Time slips for identified professional development hoursSlide22
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.Slide23
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 one-time stipend)Slide24
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.Slide25
Examples
2014 Raise Raise for Add-on Pay forBase
“
Base Fix
”
for All
Adv
Lrng
New Base
Pay
the year
$36,977 $3,023 $0
$40,000
$120 $40,120
$39,963 $37 $1,590
$41,599
$324 $41,923$47,708 $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.Slide26
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. Slide27
Thank you for your
time and attention.