Alternative Salary Structure
Presentation to:
Arizona Association of School Business Officials
Spring Conference
March 28, 2013
Brenda Thomas-Martinez, Business Manager
Blue Ridge Unified School District
Mike Aylstock, Consultant
Aylstock Consulting, LLC
Copyright © 2013 by Aylstock Consulting, LLC
History of Teacher Pay in U.S.

Three shifts in the way teachers have been paid:
“Boarding
Round” Pay System
-Throughout country in 1800’s
-Compensation mainly was room
and board for teacher
-Strong incentive for teachers to maintain
positive relations with community
members and maintain a high moral
character
-Reflected the barter economy of the time
March 28, 2013
2
History of Teacher Pay in U.S.

Three shifts in the way teachers have been paid:
Position-based
Salary System
-Began in the early 1900’s
-Increased pre-service education
requirements
-Paid elementary teachers less than
secondary teachers
-Paid women and minorities less than
non-minority males
-Reflected societal biases of the times
March 28, 2013
3
History of Teacher Pay in U.S.

Three shifts in the way teachers have been paid:
Teacher
Salary Schedules
-First implemented in late 1920’s
-Teachers paid based on increments and
steps on a rigid salary schedule
-Years of experience in classroom
- Number of graduate credits
earned
-Paid same salary to teachers with same
qualifications regardless of grade level
taught, gender, or race
March 28, 2013
4
Old Traditional Salary Schedule
Experience
BA
BA+18
0
1
2
3
4
5
6
7
8
9
10
.
.
.
20
26,000
26,750
27,500
28,250
29,000
29,750
26,750
27,500
28,250
29,000
29,750
30,250
31,000
31,750
Education
MA
MA+18
27,500
28,250
29,000
29,750
30,250
31,000
31,750
32,500
33,250
34,000
34,750
$750 Per 18 Grad Hr. – “Lanes”
$750 Per Year Experience – “Steps”
March 28, 2013
28,250
29,000
29,750
30,250
31,000
31,750
32,500
33,250
34,000
34,750
35,250
36,000
36,750
37,500
MA+36
29,000
29,750
30,250
31,000
31,750
32,500
33,250
34,000
34,750
35,250
36,000
36,750
37,500
.
42,750
5
Pros and Cons of Salary Schedules
Pros


Easy to administer when
funds are available
Predictable for staff
-Can see where they
“should” be at a given
time in their career
-Years experience
-Education gained
March 28, 2013
Cons





Inflexible to adjust
Sets artificial expectations
Sets limits for veteran staff
-Columns top out
-Maximum education hours
“Steps” vs. raise debate
“Across the Board” vs.
percentage raises
Who benefits more?
Young staff or
6
Veteran staff
Sample of Recent Legislative Increases to Education
FUNDING
GNP-IPD
DIFFERENCE
PER ADE
COMPOUNDED
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…
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 Works






Contract/wage notice contains a salary amount only
-Annual amount for certified staff
-Hourly rate for classified staff
Contract/wage notice adjusted annually by the Board
-Across the board increases
-Percentage increases
-Combination of both
-Or no increase may be given
No steps or lanes listed on contracts
No one is ever “frozen” at a step – they get a “raise”
Increases given for education growth
Lends itself to performance-based incentives
March 28, 2013
9
Salary Increase Scenarios






Easy to calculate salary increase scenarios
After available funds for raises determined
Have total dollar amount of all contracts
Determine total amount for each 1% increase
-For $10 million - $100,000 per 1% salary increase
Have total amount of eligible employees
Determine total amount per $100 increase
-For 150 teachers - $15,000 per $100 salary increase
Can work with different combinations
Across the Board and percentage increases possible
Not restricted by “steps” of a traditional salary schedule
March 28, 2013
10
Benefits to Program




Budgeting for the upcoming year simplified
Easy to determine costs of raises compared to
funds available for salary increases
-Across the board and/or percentage
Experienced staff never reach “top of the scale”
No penalty for longevity
-Salaries not frozen … no artificial steps
No final column for education moves
Encourages continuing education
Flexibility in hiring new staff members
Additional salary for unique qualifications
Continually add to entry level – stay competitive
March 28, 2013
11
How to Initially Place Staff

Continuing Staff
-Contract based on previous year’s salary with
Governing Board approved salary adjustment
-Contract dollar amount for certified
-Hourly rate for classified staff

Newly Hired Certified Staff
-Salary based on various factors locally controlled
-Experience, education, and unique
qualifications

Newly Hired Classified Staff
-Entry level rate based on classification of position
March 28, 2013
12
District Discretion to Place New Staff

Teaching Experience Accepted
-Majority of districts give maximum of 5 years of
teaching experience
-Governing Board can elect to give more credit as a
means to recruit experienced teachers

Credit for Continuing Education
-Hours beyond Bachelor’s Degree
-Unlimited graduate hours
-Must apply toward Master’s Degree

Unique Qualifications
-Extra compensation for hard to find certifications
March 28, 2013
13
Lake Havasu Unified School District #1
2012-13
“Change
Model” for
Lake Havasu
New Teacher with:
14 years experience
MA+12 education
2012-13
Official Salary Determination Chart
Sample
Base Salary:
$30,500
Increment:
2012-13 Salary Determination Chart
Cell
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Salary
30,500
31,250
32,000
32,750
33,500
34,250
35,000
35,750
36,500
37,250
38,000
38,750
39,500
40,250
41,000
41,750
42,500
43,250
44,000
44,750
Cell
Sample
To Determine Initial Placement
Salary
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
45,500
46,250
47,000
47,750
48,500
49,250
50,000
50,750
51,500
52,250
53,000
53,750
54,500
55,250
56,000
56,750
57,500
58,250
59,000
59,750
$750
Chart 1 - Experience Value
Determine your experience as outlined:
No Experience
0
1-10 Yrs Experience
>10 Yrs Experience
1 per year
10 + 1 per 2 yrs. over 10
12
14
_____ Years Experience ------> ______ Points
Chart 2 - Education Value
BA
0
BA+12
1
BA+24
2
BA+36
3
BA+48
4
MA
5
MA+12
6
MA+24
7
Education ___________ ------->
6
_______Points
Chart 3 - Unique Qualifications
A point may be given by administration for each
unique qualification, certificate, endorsement, etc.
Gifted endorsement
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
G/T
information about the school district's
Qualification (s): _________ ---->
1
_____Points
Performance Pay Program with respect
Initial Salary:
$44,000
to school-wide and individual goals.
The candidate realizes and accepts the fact that this
19
TOTAL POINTS:
_____________
INITIAL SALARY:
_____________
offer and the contract are not official until action
is taken by the Governing Board of
the Lake Havasu Unified School District #1.
_________________________
Administrator
____________
Date
______________________________
Teacher
Future Year Adjustment Examples
For a teacher with 2012-13 salary - $40,000
 2013-14 salary adjustment options:
Across the board increase
$700 $ 40,700
-higher % increase for younger staff
Percentage increase **
2%
$ 40,800
-more money for veteran staff members
Combination of both ** $250 + 1% $ 40,653
-benefits for both young and veteran staff
 Can also add to base salary without “step vs. raise”
debate. Helps with recruiting new staff members
 Education increments added to contract amount
** - cannot be done with traditional salary schedule

March 28, 2013
15
Language on Teacher Contract
No mention of column or step on contract
 Only 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
benefits paid on behalf of the employee by the
district – 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 Staff



Entry level hourly rates are determined for all positions
based on points derived from six criteria
Contracts written with only hourly rates and time
requirements (contract days and hours per day) of the
position – not based on a salary schedule
Hourly rates adjusted each year by the Governing Board
-Across the Board increase to the hourly rate
-Percentage increase to the hourly rate
-Combination of both
-Or no increase may be given
March 28, 2013
17
Classification of Support Staff

Points (1-5) awarded in 6 categories for classification of
the position:
1. Training level/education required for job
2. Experience required for specific job
3. Amount of responsibility associated with job
-Care of buildings and equipment
-Supervision of other employees
4. Length of time needed to plan and carry out task
5. Amount of public contact employee has
6. Availability of applicants with desired skills
March 28, 2013
18
Training Level/Education Required

Factor
No formal education or training
High school diploma or equivalent
Post high school or training required
Two years technical training or five
years learning on the job required
College degree or equivalent required
March 28, 2013
Points
1
2
3
4
5
19
Experience Level

Factor
No experience
Less than one year of experience
One or two years of experience
More than two years of experience
March 28, 2013
Points
0
1
2
3
20
Responsibility Level

Factor
Points
Performs as directed; responsible for
1
own job
Must use initiative and judgment in
2
in performing job; has responsibility
for some equipment, tools, or money
Direct activities of small group or has
3
responsibility for equipment and $$
Responsible for several groups and/or
4
important department or division
March 28, 2013
21
Time Management Level

Factor
Routine work with little advanced
planning
Must plan 2 to 12 weeks in advance
Must plan 3 to 6 months in advance
Must reduce to writing and plan as
much as 2 years in advance
March 28, 2013
Points
0
1
2
3
22
Public Contact Level

Factor
Points
Completes work with little or no
0
interaction with others
Interacts daily with fellow workers 1
Interacts daily with fellow workers, 2
general public, or students
Interacts daily with students, adults, 3
and fellow workers
March 28, 2013
23
Availability Level

Factor
Some people apply at wages paid
without an opening
Some apply when job and wages
are advertised
Few people apply when job and
wages are advertise
Very few show interest or apply when
job and wages are advertised
Option to add to wages to attract
qualified applicants and pay
comparable wages
Points
1
2
3
4
5-7
24
Support Staff Entry Level Rate
Based on total points for the POSITION
 Entry level hourly rate assigned to each number

Entry
Level
Hourly
Rate
Points
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
25
Example of Position Classification
Job Title
Training
Experience
Responsibilit
y
Time
Management
Public
Contact
Availability
Total
points
Custodian
1
1
2
0
1
2
7
Lead Custodian
1
1
3
0
2
2
9
Computer Technician
4
2
3
1
1
3
14
Bus Assistant
1
0
1
0
3
1
6
Bus Driver
1
1
3
0
3
3
11
Accounting Clerk-Payroll
2
3
3
2
3
3
16
Bookstore/Attendance Secretary
2
1
1
1
3
2
10
Instructional Assistant
1
0
1
0
2
1
5
Instructional Assistant-Special Ed. I
1
0
1
0
2
1
5
Instructional Assistant-Special Ed. II
1
0
2
0
2
1
6
Instructional Assistant-Special Helper
1
0
2
0
2
1
6
Library Clerk
2
0
1
0
2
2
7
Transitional Specialist
2
2
2
1
2
2
11
March 28, 2013
26
Yearly Adjustments to Hourly Rates
Support staff member with a $9.50 hourly rate
 Across the board
25 cents per hour increase
$9.75 per hour
 Percentage increase
3.5% increase to hourly rate
$9.83 per hour
 Combination of both
2% plus 10 cents
$9.79 per hour

Any adjustment can be made to entry level amounts
to stay competitive in recruiting
March 28, 2013
27
Selling the Concept
Communication is be the key! – Open and Honest





Concept introduced to district employee groups
Introduce the concept to Governing Board in a work session
Openly discuss the pros and cons and implementation strategies
-Be prepared for initial resistance to change
-Present long range benefits to experienced and all staff
-Half of any salary increase applied to Salary Determination Chart
for following year to help stay competitive in hiring new staff
Why restrict salary opportunities of veteran staff?
-Topping out on traditional salary schedule and being frozen
-Desire for more education but no financial reward
Concept endorsed by Administration, Education Association and
considered for adoption by the Governing Board
March 28, 2013
28
Questions?

If you have any questions about the proposed
Alternative Salary Structure model or would like
additional information, please contact:
Mike Aylstock
(928) 202-2124
mike.aylstock@gmail.com
Brenda Thomas-Martinez
(928) 368-6126
bthomas@brusd.k12.az.us
Copyright © 2013 by Aylstock Consulting , LLC
March 28, 2013
29
March 28, 2013
30