2018 IEERB WeBINAR

1. 2018 IEERB WeBINAR

2. Overview • Deficit Financing • Compliance Overview • 2018 Changes to Teacher Pay • Bargaining Unit Changes • MOUs • Rules • Questions

3. 2018 IEERB IMPORTANT DATES

4. Collective Bargaining Report • Due December 3 • Pay attention to Details • Ask if you have questions!

5. What is HEA 1009? • Law changing school finance • As of January 1, 2019: • No more general fund • Education & Operations funds the main funds

6. Does 1009 impact teacher bargaining? • “Yes” in form: • It changes the definition of deficit financing. • It prohibits the use of certain funds for bargaining. • Likely “no” in substance.

7. Okay. What do I need to know? • Deficit financing is still prohibited. • Although revenue will be in different places than before, HEA 1009 is unlikely to cause a change in the amount a school corporation has to bargain for teacher salary, wages, and benefits.

8. What is Deficit Financing? “Deficit financing” for a budget year means actual expenditures exceeding the employer’s current year actual generaleducation fund revenue and, for a school employer for which the voters have passed an operating referendum tax levy under IC 20-46-1, the amount of revenue certified by the department of local government finance. Revenue does not include money estimated to be or actually transferred from the school corporation’s operations fund to its education fund. (shown with changes from HEA 1009)

9. Can you translate?

10. How is that different? AFTER 1009 BEFORE 1009

11. What can I expect? Changes Miscellaneous revenue Non-CBA costs in education fund should be small Transfers to or from the operations fund cannot be bargained Stays the Same • DOE Cert./state tuition remains primary source of CBA funding • Overall amount to fund CBA/LBO should remain the same (any changes likely not because of 1009)

12. Last Best Offer $$$ under HEA 1009 • DOE Certification • DLGF Referendum revenue • Miscellaneous Revenue in Education Fund • SUBTRACT Transfer to Operations Fund • SUBTRACT Non-CBA expenses in Education Fund

15. Other Considerations • 2018-19 Bargaining Season & Impasse • Rainy day fund & operating balance • Bargaining timeline did NOT change (Sep 15 – Nov 15) • Good faith bargaining and transfers to Operations Fund

16. 2017-2018 Compliance Reports • 187 CRRs Issued • 122 Compliant • 63 Not Compliant, Cease & Desist Only • 2 Not Compliant, Prior Approval Issued • 4 Appeals • Top issues of noncompliance: • Bargaining Unit • Salary Range • Non-Bargainable Subjects • Note: Impermissible salary differentials will be issued compliance finding • Note: 2 Year CRRs scheduled to be issued in January 2019

17. Common Findings of Noncompliance 2017-18 1 Year Contracts • Bargaining Unit • Salary Range • 33 1/3% • Ancillary duties/ECA conditions • Non-Bargainable Subjects • Redistribution and Method • Bargaining Outside the Timeline (GC) • Often phrased as “agreement of the parties” • New Hire Salaries • ECA

18. RUBRIC HIGHLIGHTS • New Hire Salaries • Superintendents Discretion (new hires and academic needs) • Mutual Agreement (starting salaries and ECAs) • Annual Salary must be in the Salary Range • Eligibility Statement (no inference from factors) • Eligibility v. Factors

19. Practitioner Tips to Ensure Compliant CBAs • Read your prior CRR carefully • Keep it: • Short • Clear • Consistent • Review the new Rubric • Contact us with questions

20. 2018 Changes to teacher pay

21. Supplemental Payments • Teaching an AP course or Cambridge International • Master’s degree in content area directly related to: • Dual credit course; or • Another course Taught by the teacher. • Master’s in math, reading or literacy by an elementary school teacher • NEW: Special education professional • NEW: Teaches STEM

22. Salary Differentials • Remind me – what are they? • Salary differentials impermissible UNLESS: • Difference based on a factor/subfactor (no change) • NEW: Mind the gap • NEW: Academic needs

23. Academic Needs Differentiated amounts for: • Subjects taught • Retention • Teaching Vacancy Note: This can be used for flexibility through the school year

24. A school corporation may provide differentiated increases or increments (without regard to 1/3 cap) to reduce the gap between the school corporation's minimum teacher salary and the average of the school corporation's minimum and maximum teacher salaries. • This can be used to bring teachers up to new base

25. Reducing the Gap - Requirements • Identify use of closing the gap • Provide increase under a factor (experience or academic needs) • Provide the calculation of how the raise closes the gap

26. Reducing the Gap –Example 1 • Salary range: $32,000 to $65,000 • Factors: • Content Area Degree = $1,500 • Evaluation rating = $1,000 • Experience – use reduce the gap • 1-2 years’ experience = $2,000 • 3-4 years’ experience = $1,500 • 5-6 years’ experience = $500 • 6+ years’ experience = $100

27. Reducing the Gap – Example 1 • Step 1: Determine the average salary and the “gap” using the current salary range for returning teachers. • Salary range before increase: $32,000 to $65,000 • Average salary: $48,500 • Gap: $16,500 • Step 2: Calculate the minimum and maximum salaries after the gap increase • Teacher at min. salary:   $32,000 +  $2,000 for experience = $34,000 • Teacher at max. salary:  $65,000 + $100 for experience = $65,100 • Step 3: Determine the new average salary and the “gap” using the closing the gap increase • Salary range after close the gap increase: $34,000 to $65,100 • Average salary: $49,550 • Gap: $15,550

28. Reducing the Gap – Example 1 • As gap is reduced, we can use the cap waiver • Reminder of factors: • Content Area Degree = $1,500 • Evaluation rating = $1,000 • [Reduce the gap] Experience:1-2 years’ experience = $2,000 • Without waiver: • Educ. $1,500 + Exp. $2,000 = $3,500/$4,500 (Educ. 1,500 + Eval. 1,000 + Exp. $2,000) = 78%  1/3 cap violated  compliance finding • With waiver: • Educ. $1,500 + Exp. $2,000 = $1,500/$4,500 (Educ. 1,500 + Eval. 1,000 + Exp. $2,000) = 33.33%  1/3 cap not violated  compliant

29. Reducing the Gap –Example 2 • Salary range: $32,000 to $65,000 • Factors: • Evaluation rating = $1,000 • Experience • 1-2 years’ experience = $0 • 3-4 years’ experience = $1,500 • 5-6 years’ experience = $500 • 6+ years’ experience = $100

30. Reducing the Gap – Example 2 • Step 1: Determine the average salary and the “gap” using the current salary range for returning teachers. • Salary range before increase: $32,000 to $65,000 • Average salary: $48,500 • Gap: $16,500 • Step 2: Calculate the minimum and maximum salaries after the gap increase • Teacher at min. salary:   $32,000 +  $0 for experience = $32,000 • Teacher at max. salary:  $65,000 + $100 for experience = $65,100 • Step 3: Determine the new average salary and the “gap” using the closing the gap increase • Salary range after close the gap increase: $32,000 to $65,100 • Average salary: $48,550 • Gap: $16,550

31. How will this change our model? • Depends on whether: • Your model is compliant • The parties want to change

32. Changing the Bargaining Unit • Why do we have to go through IEERB? • Can we bargain the unit and when is it effective? • 30 days notice of changes • Can be sent to teachers by email • Letter or notice to IEERB requesting certification • NEW: Agreed title changes or changes that do not effect any existing employee may be submitted without notice.

33. Updated Rules! • Published on Website • Highlights for Practitioners: • E-File • Midnight Filing • Changes to Bargaining Units • Representation Petition Filing Period • Now 10 days to submit MOUs