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