This slide deck was used at the School Deliberative meeting to describe the costs and benefits of a new contract for Litchfield's Teachers. Please support our teachers by sharing this valuable information and voting yes on Article 2 on March 11!

1. Litchfield School
District
Article 2
Teacher’s Contract

2. Tentative Agreement
The School Board and the Litchfield Education Association
have reached a tentative agreement on a new three-year
contract.
• It covers: school years 2014/15, 2015/16, 2016/17
It contains:
•
•
•
•
More competitive salaries
More cost effective health care
Reduced time off benefits
More attractive language for School District Administration

3. School Board Negotiation Objectives
Reduce health insurance costs to the District:
o
Maintains high quality health care while still accruing significant decrease in
employer health care costs due to moving to a plan where employees pay
higher deductibles and co-pays (including prescriptions).
o
New health care provider/plan has a history of lower annual increases than
existing coverage.
o
o
Existing Plan Average Annual Increase = 8.4%
Proposed Plan Average Annual Increase = 4.3%
o
New plan starts at a lower base price and increases much slower.
o
Significant savings as time goes on.
o
The employee premium costs of the HMO plan increase from 15% in 2014 to
17% in 2016.

4. Healthcare Costs - Historic and Projected
$1.90
$1.80
Cost (Millions)
$1.70
$1.60
$1.50
$1.40
$1.30
$1.20
$1.10
$1.00
2009
2010
2011
2012
Current Plan
2013
2014
Proposed Plan
2015
2016
2017

5. School Board Negotiation Objectives
Maintain competitive salaries, recruit, and retain high quality teachers:
• No contract for 2 years.
• No contract for 3 out of last 5 years.
o
o
o
o
o
2009-10 – No contract
2010-11 – Steps (no increase for top)
2011-12 – Steps + 1% schedule adjustment
2012-13 – No contract
2013-14 – No contract
• Our most experienced teachers have received a 1% raise since 2008-2009.
• Overall, Gross teacher salaries are DOWN since 2009.
• Increases have all been in health care.
• Need to flip this trend.

6. Litchfield 2013-14 Teacher Salary Scale
St.Gr.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
B
33,623
35,070
36,517
37,963
39,410
40,857
42,303
43,750
45,195
46,644
48,090
49,536
50,984
52,430
53,876
33,623
40,671
45,436
55,304
61,733
B+15
34,765
36,282
37,799
39,317
40,834
42,352
43,869
45,386
46,904
48,421
49,939
51,456
52,973
54,492
56,010
B+30
35,907
37,494
39,083
40,671
42,259
43,847
45,436
47,024
48,612
50,201
51,789
53,377
54,965
56,554
58,142
M
37,051
38,710
40,370
42,029
43,689
45,348
47,007
48,667
50,325
51,985
53,644
55,304
56,963
58,622
60,281
M+15
38,194
39,876
41,557
43,239
44,920
46,601
48,283
49,965
51,645
53,327
55,009
56,690
58,371
60,053
61,733
M+30
39,337
41,041
42,744
44,448
46,152
47,855
49,559
51,262
52,965
54,668
56,372
58,075
59,779
61,482
63,186
Meets 2013-14 Federal eligibility requirements for Free or
Reduced Meals for a family of 3. ($36,131)
Meets 2013-14 Federal eligibility requirements for Free or
Reduced Meals for a family of 4. ($43,568)
Salary between $43,569-$50,000
Salary between $50,001-$60,000
Salary over $60,000

7. Historical Wages
7,400,000.00
7,200,000.00
7,000,000.00
6,800,000.00
6,600,000.00
6,400,000.00
6,200,000.00
6,000,000.00
5,800,000.00
5,600,000.00
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17

8. School Board Negotiation Objectives
Quality of teaching is primary factor impacting future
Reduction In Force (RIF) decisions:
o When layoffs are required, it will be based on quality and not
tenure.
Keep Teachers in front of students
• Existing teachers move from 15 sick days/year to 12 days
(2016)
• New teachers move to 10 sick days/year and can accrue a
maximum of 110 days (vs. 125)
•
•
Fewer sick days used
Decreased liability from accrued sick time
• Supervisory periods can include instructional time w
students

9. What are Salary Schedules?
Teaching staff is paid based upon the salary schedule approved in
the collective bargaining agreement.
When hired, an educator is placed on a “LADDER” or “GradeLevel” based upon their degree status.
•
•
•
•
•
•
Bachelors
Bachelors + 15 credits
Bachelors + 30 credits
Masters
Masters + 15 credits
Masters + 30 credits
Within that ladder, they are placed on a STEP based upon their
years of experience.

10. How Do Salary Schedules Work?
• Each school year with a contract, teachers move up one step
on the experience scale.
• When there is no contract, there is no step movement.
• Teachers at top step no longer move steps.
• Occasionally, the contract will also include step modifications to
keep the salary schedule competitive and to provide raises for
members at the top step.

11. Current Schedule
STEP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Step Size
B
33,623
35,070
36,517
37,963
39,410
40,857
42,303
43,750
45,195
46,644
48,090
49,536
50,984
52,430
53,876
1,446
B+15
34,765
36,282
37,799
39,317
40,834
42,352
43,869
45,386
46,904
48,421
49,939
51,456
52,973
54,492
56,010
1,518
B+30
35,907
37,494
39,083
40,671
42,259
43,847
45,436
47,024
48,612
50,201
51,789
53,377
54,965
56,554
58,142
1,588
M
37,051
38,710
40,370
42,029
43,689
45,348
47,007
48,667
50,325
51,985
53,644
55,304
56,963
58,622
60,281
1,659
M+15
38,194
39,876
41,557
43,239
44,920
46,601
48,283
49,965
51,645
53,327
55,009
56,690
58,371
60,053
61,733
1,680
M+30
39,337
41,041
42,744
44,448
46,152
47,855
49,559
51,262
52,965
54,668
56,372
58,075
59,779
61,482
63,186
1,704

12. Proposed Contract: Year 1 2014-2015
Schedule Modification – slide schedule 1 Step Up
•
•
Remove 1st step (old Step 2 becomes Step 1)
Add new 15th Step
Each teacher receives a step
End result
• Staff members “On the schedule” (not top) receive an increase equal to
two steps.
• Staff Members on top step receive an increase equal to 1 step.
Benefits
•
•
Schedulestarting salary is more competitive.
Staff on the schedule have a more competitive wage.

13. 2014-2015 Modified Schedule
STEP
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
B
33,623
35,070
36,517
37,963
39,410
40,857
42,303
43,750
45,195
46,644
48,090
49,536
50,984
52,430
53,876
55,320
B+15
34,765
36,282
37,799
39,317
40,834
42,352
43,869
45,386
46,904
48,421
49,939
51,456
52,973
54,492
56,010
57,524
B+30
35,907
37,494
39,083
40,671
42,259
43,847
45,436
47,024
48,612
50,201
51,789
53,377
54,965
56,554
58,142
59,726
M
37,051
38,710
40,370
42,029
43,689
45,348
47,007
48,667
50,325
51,985
53,644
55,304
56,963
58,622
60,281
61,937
M+15
38,194
39,876
41,557
43,239
44,920
46,601
48,283
49,965
51,645
53,327
55,009
56,690
58,371
60,053
61,733
63,408
M+30
39,337
41,041
42,744
44,448
46,152
47,855
49,559
51,262
52,965
54,668
56,372
58,075
59,779
61,482
63,186
64,888

14. Year 2: 2015-2016
• On Schedule: Move up 1 Step
• Top Step Modification:
o
½ a step increase + $300
• NOTE:
o In year 16-17, top step will receive second half of step.

15. 2015-2016 Modified Schedule
STEP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Old 15
New 15
B
35,070
36,517
37,963
39,410
40,857
42,303
43,750
45,195
46,644
48,090
49,536
50,984
52,430
53,876
55,320
56,345
B+15
36,282
37,799
39,317
40,834
42,352
43,869
45,386
46,904
48,421
49,939
51,456
52,973
54,492
56,010
57,524
58,587
B+30
37,494
39,083
40,671
42,259
43,847
45,436
47,024
48,612
50,201
51,789
53,377
54,965
56,554
58,142
59,726
60,824
M
38,710
40,370
42,029
43,689
45,348
47,007
48,667
50,325
51,985
53,644
55,304
56,963
58,622
60,281
61,937
63,070
M+15
39,876
41,557
43,239
44,920
46,601
48,283
49,965
51,645
53,327
55,009
56,690
58,371
60,053
61,733
63,408
64,555
M+30
41,041
42,744
44,448
46,152
47,855
49,559
51,262
52,965
54,668
56,372
58,075
59,779
61,482
63,186
64,888
66,042

16. Year 3: 2016-2017
• Schedule Modification - Similar to year 1
• Slide schedule 1 Step Up
• Remove 1st step (old Step 2 becomes Step 1)
• Add new 15th Step + $300
• This is only half a step + 300
• Second half from year 2015-2016
• Top step receives (1 step + $600) over years 2 and 3
• Teachers do NOT move a step
• Increase is equal to 1 step for teachers on the schedule.

17. 2016-2017 Modified Schedule
STEP
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
B
35,070
36,517
37,963
39,410
40,857
42,303
43,750
45,195
46,644
48,090
49,536
50,984
52,430
53,876
55,320
57,366
B+15
36,282
37,799
39,317
40,834
42,352
43,869
45,386
46,904
48,421
49,939
51,456
52,973
54,492
56,010
57,524
59,641
B+30
37,494
39,083
40,671
42,259
43,847
45,436
47,024
48,612
50,201
51,789
53,377
54,965
56,554
58,142
59,726
61,914
M
38,710
40,370
42,029
43,689
45,348
47,007
48,667
50,325
51,985
53,644
55,304
56,963
58,622
60,281
61,937
64,196
M+15
39,876
41,557
43,239
44,920
46,601
48,283
49,965
51,645
53,327
55,009
56,690
58,371
60,053
61,733
63,408
65,689
M+30
41,041
42,744
44,448
46,152
47,855
49,559
51,262
52,965
54,668
56,372
58,075
59,779
61,482
63,186
64,888
67,191

18. Proposed Contract: Total Salary Changes
Step 1-13:
• 4 Steps in 3 years
Step 14
• 3 Steps in 3 years
Step 15
• 2 Steps + $600

19. Costs to the Taxpayer
When calculating the “cost” of the contract, we have to:
• Assume all employees take most expensive healthcare plan.
• Assume there is no additional health care savings in future
years.
• And we can’t factor in additional health care savings for all nonteaching staff.
• Is must be budgeted out as the Worst Case Scenario….

20. “Official” Contract Costs
2014-15 2015-16 2016-17
Total
Total Salary Increases
$421,489 $212,737 $192,645 $826,871
LEA HealthCare Savings
$208,106 $17,100 $17,100 $242,306
Total Difference
$213,383 $195,637 $175,545 $584,565

21. A More Comprehensive Costing…
• Would calculate future healthcare savings against current plan.
• Would calculate savings for ALL employees.
• This shows the contract costing mush less in the long term
because our healthcare savings will build on itself each year…

22. A Projected Cost Analysis…
LEA Agreement - Historical Averages
Projected in 2015-2016
Projected Salary Increases
Projected HealthCare Savings
Difference
Projected Non-LEA HealthCare Savings
Total HealthCare Savings
Total Difference
2014-15
2015-16
2016-17
Total
$ 421,489 $ 212,737 $ 203,121 $ 837,347
$208,106
$87,191
$95,168 $ 390,465
$ 213,383 $ 125,546 $ 107,953 $ 446,882
$68,000
$10,940
$276,106
$98,131
$ 145,383 $ 114,606 $
$11,815 $
$106,983
90,755
$481,220
96,138 $ 356,127

23. Cost to the Taxpayer
ESTIMATED ANNUAL TAX IMPACT
Article 2 - Contract
Home Value (Thousands) 200K 250K 300K 350K 400K 450K
Cost Per Year
$52
$65
$78
$91
$104 $117

24. Thank You