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Newaygo County RESA

Newaygo County RESA. STATE OF THE RESA April 2011. Our mission to: Support     Education         Responsibly, through             Visionary                 Innovative                     Cooperative                         Efforts. Instruction. Increased Rigor

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Newaygo County RESA

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  1. Newaygo County RESA STATE OF THE RESA April 2011 Our mission to:Support    Education        Responsibly, through            Visionary                Innovative                    Cooperative                        Efforts

  2. Instruction Increased Rigor SmartBoard Implementation & Professional Development All Elementary Teachers Middle and High School Lead Teachers Data to Influence Instruction Common Assessments Academic Interventions

  3. Curriculum Elementary Social Studies ELA Curriculum Development Middle School 6th Grade Science ELA Curriculum Development High School Math Intervention ELA 12 Financial Management

  4. MATH Grades 3-8 MEAP Scores

  5. READING Grades 3-8 MEAP Scores

  6. Michigan Merit ExamPercent of class that is proficient READING

  7. Operations and Personnel • Bond Projects Throughout the District • Roofs, paving, energy systems • Student Records • Digitized records for better lookup • East 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

  8. Teacher Evaluation Committee • Evaluate teachers/administrators annually using multiple rating categories and data on student growth as a significant factor • Multiple ratings - Highly effective, effective and ineffective rubrics developed • Committee to make recommendation to respective bargaining teams so contract will comply with law.

  9. Governor’s School Aid Proposal • Reduction 2010-11 - $300/pupil • Retirement Rate 3.8 points - $239/pupil • Reduction Projected - $539/pupil • Total cost to ECSD: $2.5 million

  10. Approved by House HB 4152 • Wages and benefits frozen during contract negotiations (prohibiting step increases) • Any increase to health premium borne by employee • Prohibits retroactivity for wages or benefits

  11. In House Committee HB 4306 • Requires 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

  12. Emergency Financial Manager • Applies to school districts and cities • Allows 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

  13. Other Proposals Tenure – Eliminate or Reform • Reduce standard for discipline or dismissal from just cause to arbitrary and capricious • Escrow salary instead of paid leave during period waiting for tenure hearing Health Premium Cost Sharing • 20% co-pay from employee • $13,000 cap on employer share of premium

  14. 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

  15. Michigan Per Capita Income Deviation From National Average MICHIGAN IS 13.8% BELOW NATIONAL AVERAGE US Dept of Commerce

  16. 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

  17. Comparison of Income • Michigan Median Household Income • 2000 $44,667 • 2009 $45,255 + 1.3% • East China MA Teacher Salary • 2000 $63,044 • 2009 $77,034 +22.2% Michigan Data from U.S. Census Bureau, US Dept. of Labor

  18. Comparison of Employer Cost of Employee Health Insurance US Private Worker Increase 2000 to 2009 +84% State/Local Government Worker 2000 to 2009 +96% ECSD Teacher Increase 2000 to 2010 +138% US Dept. of Labor, Bureau of Labor Statistics

  19. Comparison of Total Teacher Compensation

  20. Compensation and Funding • ECSD MA Step 10 Teacher • 2000 $83,247 • 2010 $118,042 + 41.8% • ECSD Per Pupil Funding • 2000 $6,602 • 2010 $7,794 + 18.1% • ECSD Funding with Enrollment • 2000 @5,613 = $37.1 million • 2010 @4,959 = $38.6 million + 4 %

  21. 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 Staff 2000 – 582 2010 – 399

  22. Major Issues Facing ECSD • Declining Enrollment • Retirement Rate Charged by State • Health Premium Costs • Funding Provided by State

  23. ECSD September Enrollment PROJECTED PROJECTED

  24. 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

  25. Retirement Rate Skyrockets

  26. Retirement Rate Factors • Active workers decline from 327,000 in 2003 to 242,500 in 2010 • Litigation over 3% charge for health care • 2008 stock market meltdown • Unfunded pension liability due to investment proceeds not meeting the projection • Cost of the 2010 retirement incentive • Increase in retirees • Over 167,000 retirees collecting pension • Average pension is $19,000

  27. Health Care • This is a huge issue for the district and employees • $5 million annual cost to the district • 138% 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

  28. District Contribution to Teacher Annual Health Insurance Premiums

  29. Average District Contribution to Non-Teaching Staff Annual Health Insurance Premiums

  30. Health Savings Account Plans • High Deductible Health Plan coupled with a Health Savings Account (HSA) • HSA is similar to Flexible Savings Account • Deductible is owned by employee and unused balances roll over • Savings accounts are tax free and governed by IRS • Designed for employees to manage their health plan and its cost much more than the traditional health plan

  31. 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 family Kaiser Family Foundation – Employer Health Benefits 2010 Annual Survey

  32. 2010-11 Staff Premium Contributions

  33. Projected Financial Problems for 2011-12

  34. Projected Financial Problems for 2012-13

  35. We Will Not Be a Deficit District • 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.

  36. We Are In This Together • We have managed this financial crisis for the past ten years • We 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

  37. 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?

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