Leyden Council MeetingThursday, November 12, 2009

Revenues currently match or exceed expenditures

District worries that expenditures will outpace revenue

$43 Million Reserve (savings) Not currently deficit-spending, but projections

indicate that we will be as soon as next year Union’s original proposal of step and modest

raises (0, 1, 1, 2) DID NOT deplete reserve completely

Reserves will not be depleted in the life of this contract

Looking to reduce expenditures, district has turned to salary and benefits

Salary and benefits are a large slice of the “pie”

Relevant questions before you vote:◦ How should the current economy affect our

salaries or salary schedules?◦ How does the district’s financial picture affect our

acceptance or rejection of a “stepless” schedule?

In response to concern of declining revenues

Proposed 0% Raises to overall structure Have come within $58,000 of the district

proposal (.5% difference) In response to irregular “steps”

Have modified step system, making it consistent

All of the district’s proposals have included an elimination of step, but have included a consistent % raise for everyone, and a guarantee that no one will be taking home less $

Offering a Responsible Offering a Responsible PlanPlan

Relevant questions before you vote:◦ What does the total package look like? Are there

other benefits that help offset the salary issues?◦ Have we done enough in the name of

responsibility?

What is “step”? Guaranteed compensation for a year of

experience Tied to each year of teaching

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Preserving Quality (3.25% on Preserving Quality (3.25% on Base)Base)

Let’s assume a 0% Base RaiseLet’s assume a 0% Base Raise

What is “step” worth in our schedule? Averages 3.5% Unequal % throughout schedule

What does “step” have to do with quality? Our current overall “top $” of our schedule is

effective in drawing and retaining new teachers

Step Dollars in First 5 Years – Leyden salaries increase more through step than many other districts – this is only part of the picture

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Why is compensation “automatic” with each year of experience?

Experience matters; instructional deficit in the first year

No other reliable measure exists

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What happens if a district fails to adequately compensate experience?

Teachers come, earn experience, and go Instruction and achievement may suffer Other districts in Illinois may follow suit

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Isn’t the board’s proposal just a reduced “step” percentage?

NO Makes “step” negotiable Eliminates guarantee of base compensation May eliminate prospect of future minimum

raises YES

Provides a guaranteed raise over the next four years

Leaves possibility of increasing percentage in later negotiations

Provides a compounding percentage raise for everybody with higher increases for experience

Retains $ incentives for increased graduate degrees and hours

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What happens if the district fails to include current “step”?

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2% No Step 0% w/Step Difference Base Year 50,000 49,747 0Year 2 51,000 51,978 978Year 3 52020 54,805 2,750Year 4 53060 57,107 4,047Year 5 54121 59,384 5,263 4 yr

difference13,038

Check Your Step

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Directions: Use the .pdf to enter in your salaries in the italicized column.

0% w/Step with 2% Fixed

Your 0809 Salary Spot 77239"Step" % 77239 0.02Year 0Next step 80623 0.043812 78783.78 0.02Year 1Next step 83271 0.032844 80359.46 0.02Year 2Next step 85930 0.031932 81966.64 0.02Year 3Next step 88581 0.030851 83605.98 0.02Year 4

  

Salary Increase 11342 6366.978Gross Earnings 415644 0.03486 401954.9 0.02

What is “step” worth? What would result from this change in

structure? What is happening outside the “Leyden

Bubble?” What other benefits do we have that we

continue to maintain, while other districts do not have or are cutting?

Preserving Quality:Preserving Quality:QuestionsQuestions