newaygo county resa
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Newaygo County RESA. STATE OF THE RESA April 2011. Our mission to: Support Education Responsibly, through Visionary Innovative Cooperative Efforts. Instruction. Increased Rigor - PowerPoint PPT PresentationTRANSCRIPT
Newaygo County RESA
STATE OF THE RESAApril 2011
Our mission to: Support Education Responsibly, through Visionary Innovative Cooperative Efforts
InstructionIncreased RigorSmartBoard Implementation & Professional Development
All Elementary Teachers Middle and High School Lead Teachers
Data to Influence InstructionCommon AssessmentsAcademic Interventions
CurriculumElementary
◦Social Studies ◦ELA Curriculum Development
Middle School◦6th Grade Science◦ELA Curriculum Development
High School◦Math Intervention◦ELA 12◦Financial Management
Grades 3-8 MEAP ScoresMATH
7189 93
2004 2008 2011
Grades 3-8 MEAP ScoresREADING
7387 91
2004 2008 2011
Michigan Merit Exam Percent of class that is proficient
65%56%
63%
90%
70%
57%
70%
87%
20092010
MATH SCIENCESOCIALSTUDIESREADING
Operations and PersonnelBond Projects Throughout the District
◦Roofs, paving, energy systemsStudent Records
◦Digitized records for better lookupEast China is The School of Choice
◦203 students in from other districts…. Only 37 going to other districts
Wellness Program◦Virgin Health Miles Program◦Rewards – over 175 employees
participating
Teacher Evaluation CommitteeEvaluate teachers/administrators annually using multiple rating categories and data on student growth as a significant factorMultiple ratings - Highly effective, effective and ineffective rubrics developedCommittee to make recommendation to respective bargaining teams so contract will comply with law.
Governor’s School Aid Proposal
Reduction 2010-11 - $300/pupilRetirement Rate 3.8 points -
$239/pupil
Reduction Projected - $539/pupil
Total cost to ECSD:
$2.5 million
Approved by HouseHB 4152Wages and benefits frozen during
contract negotiations (prohibiting step increases)
Any increase to health premium borne by employee
Prohibits retroactivity for wages or benefits
In House CommitteeHB 4306Requires school districts to bid out
support services including custodial, food service, and transportation
Other non-instructional services may be included as well including office and secretarial services
Emergency Financial Manager
Applies to school districts and citiesAllows EFM to be appointed by State
Treasurer after certain criteria are met
Big changes in this law give the EFM much more power to eliminate deficit including canceling collective bargaining agreements
Other ProposalsTenure – Eliminate or ReformReduce standard for discipline or dismissal
from just cause to arbitrary and capriciousEscrow salary instead of paid leave during
period waiting for tenure hearing
Health Premium Cost Sharing20% co-pay from employee$13,000 cap on employer share of
premium
What is Going On?More accountability than ever
Huge downturn in Michigan economy
Politicians and public do not believe K-12 education has sacrificed in
comparison to everyone else
Little credit is given for adjustments K-12 education has made
-16.0%-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Michigan Per Capita Income Deviation From National Average
MICHIGAN IS 13.8% BELOW NATIONAL AVERAGE
US Dept of Commerce
What Does This Mean?The recession of 2001-2010
effectively “RESET” the income level of the average Michigan household.
Politicians do not believe the recession impacted the average ECSD or Michigan teacher/employee to the same degree
Comparison of IncomeMichigan Median Household Income2000 $44,6672009 $45,255 + 1.3%
East China MA Teacher Salary2000 $63,0442009 $77,034 +22.2%Michigan Data from U.S. Census Bureau, US Dept. of Labor
Comparison of Employer Cost of Employee Health
InsuranceUS Private Worker Increase2000 to 2009 +84%State/Local Government Worker2000 to 2009 +96%ECSD Teacher Increase2000 to 2010 +138%
US Dept. of Labor, Bureau of Labor Statistics
Comparison of Total Teacher Compensation
SALARY
FICA 7.65
%
Retire-ment
Health Dental Vision Total
2000
$63,044
$4,823
$7,313 (11.6%)
$8,067Full family rate
$83,247
2010
$77,034
$5,893
$15,915(20.66%
)
$19,200
Full family rate
$118,042
+22% +22% +118% +138%
+41.8%
Compensation and Funding
ECSD MA Step 10 Teacher2000 $83,2472010 $118,042 + 41.8%ECSD Per Pupil Funding2000 $6,6022010 $7,794 + 18.1%ECSD Funding with Enrollment2000 @5,613 = $37.1 million2010 @4,959 = $38.6 million + 4 %
How Have We Survived Without Matching Compensation to
Funding?Reduction of staffing by 31% across the district touching every area
Teachers Non-Teachers 2000 – 368 2000 – 214 2010 – 264 2010 – 135
Full Time Staff2000 – 5822010 – 399
Major Issues Facing ECSD
Declining Enrollment
Retirement Rate Charged by State
Health Premium Costs
Funding Provided by State
ECSD September Enrollment
PROJECTED
5,766 5,730 5,7175,612 5,589
5,5005,362
5,1715,072
4,9374,777
4,647
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PROJECTED
Why Are There Fewer Students?
Michigan had153,000 live births in 1990 and 123,000 live births in 2007
25 to 35 year old population has been relocating to other states for jobs
ECSD graduates about 500 students and will have 300 kindergartners
We bring in Schools of Choice and transfers, but not enough to overcome discrepancy between graduates and kindergartners
Retirement Rate Skyrockets
11.66%
12.16% 12.17%
12.99%12.99%
14.87%
16.34%
17.74%
16.72%
16.54%16.94%
20.66%
24.46%
27.37%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Retirement Rate Factors
Active workers decline from 327,000 in 2003 to 242,500 in 2010
Litigation over 3% charge for health care2008 stock market meltdown
◦ Unfunded pension liability due to investment proceeds not meeting the projection
Cost of the 2010 retirement incentiveIncrease in retirees
◦ Over 167,000 retirees collecting pension◦ Average pension is $19,000
Health CareThis is a huge issue for the district and
employees$5 million annual cost to the district138% increase in premium since 2000
compared to 23.9% Inflation as measured by CPI
We have 183 fewer full time staff members, but the cost of health care premiums has gone from $3.7 million to $5.0 million
District Contribution to Teacher Annual Health Insurance Premiums
2009-10MESSA
2010-11MESSA
One Year
Increase
Full Family
$15,633 $17,614 +12.7%
2 Person $13,999 $15,782 +12.7%Single $ 5,827 $ 6,619 +13.6%
Average District Contribution to
Non-Teaching Staff Annual Health Insurance
PremiumsPriority Health
Comparison to MESSA
Full Family
$11,947 32% less
2 Person $11,198 29% lessSingle $4,895 26% less
Health Savings Account PlansHigh Deductible Health Plan coupled with a
Health Savings Account (HSA)HSA is similar to Flexible Savings AccountDeductible is owned by employee and
unused balances roll overSavings accounts are tax free and governed
by IRSDesigned for employees to manage their
health plan and its cost much more than the traditional health plan
Comparison to Private Industry
Nationally, the average monthly contribution to health insurance in 2010 is $75 single…$333 Family
This equates to 19% single coverage and 30% for family coverage
The employer pays $3,837 single $9,324 familyKaiser Family Foundation – Employer Health Benefits 2010 Annual Survey
2010-11 Staff Premium Contributions
Group
$ Per Month for Full Family Coverage
Percent of
PremiumCustodians $200.00 18%Secretaries $43.34 4%Paraprofessionals
$21.66 2%
Bus Drivers $40.00 3%Teachers $60.66 4%Directors $200.00 18%Administrators
$250.00 22.5%
Projected Financial Problems for 2011-12
State Funding Reduction $1,500,000
State Retirement Contribution Increase (3.8 points)
$1,000,000
Decline in Enrollment (160 students)
$1,247,040
Average Insurance Premium Increase (15%)
$750,000
Teacher Step Cost $281,245Federal ARRA Funds Eliminated
$473,000
Total Projected Financial Problem
$5,251,285
Current Fund Equity $5,667,866
Projected Financial Problems
for 2012-13
State Funding Reduction $0State Retirement Contribution Increase (3 points)
$727,000
Decline in Enrollment (130 students)
$974,220
Insurance Premium Increase $0Teacher Step Cost $0Federal EduJobs Funds Eliminated
$450,000
Projected 2012-13 Financial Problem
$2,151,220
We Will Not Be a Deficit District
2011-12 Financial Problem $5,251,285
2012-13 Financial Problem $2,151,220
TOTAL $7,402,505
Any deficit in the 2011-12 budget will add to the 2012-13 financial problem
The funding model imposed by the state of Michigan will force school districts to change the compensation structure for employees.
We Are In This Together We have managed this financial crisis for
the past ten yearsWe need to work together and continue
to be proactive – addressing issues early will help us stay in position to continue to thrive
We will not be discouraged, we are doing important work and we are valued by our community
What is Next?Displacement Process for Teachers April 27
Layoff Notice for Teachers May 6
ECSD Budget Hearing May 9
State Revenue Update for 2010-11 May 15
Bargaining with ECEA May….
State Aid Act Target Approval June
Questions?