Peoria Unified’s Employee Compensation Structure Proposal 2014

1. Peoria Unified’sEmployee Compensation Structure Proposal 2014

2. Overview • Reason for change • Recap of last year’s work • Guiding principles • How will District fund compensation moving forward • District Philosophy • Priorities for new monies • Present new plans: • Basic Structure • By employee group: • Initial placement criteria/process (by employee group) • Professional growth • Next Steps

3. Our Purpose for the Committee • Council Priority: Attract, Retain and Reward We are committed to designing and implementing a creative, modern, competitive, fair and equitable plan to attract, retain, and reward the highest quality staff available in order to ensure that every student, every day is prepared to shape tomorrow.

4. The Process • Committees • All groups represented: Certified, Classified, Administrative and Classified Exempt (supervisory) • Worked together as a whole group and then broke out by employee group • Meetings • Fall 2012: 3 meetings in large group with break out by classification • Fall 2013: 1-2 meetings per employee group • Work of Committee • Review compensation budgeting process • Make recommendations for the structure • Priorities for next year • How set ranges • Starting pay • Professional Growth

5. Recap of Last Year’s Meetings • Determined the District’s philosophy regarding employment strategy • Who do we want to attract? • Who do we want to retain? • Built understanding of strategic compensation • Analyzed other compensation programs, both private and public, to develop PUSD components

6. Compensation: Guiding Principles • All Employee Groups agreed that PUSD compensation should be: • Equitable • Fair • Should help to increase achievement • Give employees the ability to control outcomes • Objective • Tied to effective evaluation instrument • Understandable-not too complex • Fundable-no freezing

7. Compensation Budgeting: Distribution of Funds

8. Priority for all groups 2014: Compression • First Priority: Begin to eliminate compression: • All employees prioritized using new funds to distinguish individuals who have been with the District through the salary freezes to receive compensation • Second Priority: Market rate adjustments • Determine Market Placement: Core of compensation structure is determining benchmark against which to compare total compensation as a value add to our employees • Market Defined: similarly situated school districts and governmental entities in Maricopa County • Determine whether goal is to be: below, at or above market rate for employee group • Emphasis on pay, benefits or both?

9. Certified Pay Comparison

10. Components of New Salary Structure • Base Pay • Each position will have entry level pay and maximum pay • Only Certified recommended no max pay • Cannot exceed maximum pay for the position range • Base pay to be established following market analysis • Ranges will be periodically reviewed to determine relation to market and any adjustments will follow that analysis • Hard to Fill (certified only)- stipends while in that position • Increases: to be determined each year once budget established by compensation committee members • Merit • Cost of Living • Flatand Percent • Performance Pay (Certified 301) • Professional Growth • Returning retiree base pay would be calculated the same as any other new hire (less the ACR split) All Employee Groups

11. Certified: New Hire • From base pay of a brand new teacher with only a Bachelor’s Degree (currently $34,884): • 1% per year of teaching experience, not to exceed 5 years; HTF get up to 10 years experience • 1% per 15 credit hours over minimum requirement • .5% for each additional certification/endorsement/ approved area beyond what is required for the position Certified

12. Certified: Hard To Fill • Stipend for new hires and current staff (amount to be determined by committee) • Definition: • Look at graduation rates for specific majors for last three years from college to determine trend • District trend on open positions • Applies for teachers who are teaching in that area, not just on their certificate • Paid Annually- lump sum at end of year if evaluation score is at least Performing Certified

13. Certified: Professional Growth • Components – related to job duties • Credit hours: any level beyond requirement for the position • Increments • Try to match current rate of approximately $75 per credit hour • Max 18 per year • Timing • Credits turned in by January • Paid out annually on the next year’s salary Certified

14. Certified: How This Will Work Example(Sample Only – These numbers are NOT the actual numbers) 13/14 Math Teacher is at BA30 step 2 $38,395.98. Teacher completed 5 credit hours and district committee established 1.0% increase. Hard to Fill stipend was determined to be $1,000.00. 301 Performance Pay (fund 12) remained at $1,700.00. New Contract for 14/15 – • 13/14 Amount $38,395.98 • Add new Prof. Growth (5 credits @ $75/hr ) $375.00 • Flat Amount N/A • Percent Increase (1.0%) $575.94 • HTF Stipend $1,000.00 • 301 Performance Pay $1,700.00* • Other N/A 14/15 Salary $ 40,346.92 Total compensation for 14/15 $ 42,046.92 Base for 15/16 $40,346.92 *does not get added to the base salary Certified

15. Administrative and Classified Exempt: New Hires • Start at base pay for each position • Increments to be added for: • Years of experience, no more than 5 • Education (above that required for the position): • Only degrees recognized- not credit hours • Certification(s) (above those required for position) Administrative and Classified Exempt

16. Administrative and Classified Exempt: Professional Growth • Components – related to job duties • Certifications (non-educational) • National Board Certifications • Credit hours: graduate level (Administrators) or any level beyond requirement for the position (Classified Exempt) • Increments • $100 per credit hour; max 9 credit hours per year • Added to base for the following year • Lifetime max: cannot exceed maximum pay for the position • Timing • Each year employee gets credit for last calendar year’s completed components • Must turn in credits within 18 months of completion Administrative and Classified Exempt

17. How This Will Work Example(Sample Only – These numbers are NOT the actual numbers) 13/14 Salary for a Principal is $70,000. Principal completed 5 credit hours of professional growth and the District committee determined to give 1.0% to everyone. New Contract for 14/15 – • 13/14 Amount $70,000.00 • Add new Prof. Growth (5 credits @ $100/ch) $500.00 • Flat Amount n/a • Percent Increase (1.0%) $700.00 • Other 14/15 Salary $71,200.00 Base for 15/16 $71,200.00 Administrative and Classified Exempt

18. Classified: New Hires • From the starting pay for each position add: • Experience: • 5% cap percentage • 1% for 2-4 years of experience • 3% for 4-5 years of experience • 5% for 5+ years of experience • Education: 1% per degree level; an additional .5% if relevant to the position • Certification: 1% for each certification above requirement that is relevant to position • Retirees: treated like new hire Classified

19. Classified: Professional Growth • Components – related to job duties • Certifications (non-educational) • Credit hours: any level beyond requirement • Increments • $.15 per 3 credit hours added to base • Max 15 credits per year • Lifetime maximum: cannot exceed maximum pay for the position • Timing • Each year employee gets credit for last calendar year’s completed components • Must turn in credits within 18 months of completion Classified

20. Classified: How This Will Work Example(Sample Only – These numbers are NOT the actual numbers) 13/14 Classified Employee’s pay is in Range 12 and employee makes $13.30 and receives receive .10 for Professional Growth and for a total amount of $13.65 per hour. Committee voted for 1.0% overall in addition to a .25 flat increase for all hourly staff. New Contract for 14/15 – The range for this position: $10.75 to $17.20 • 13/14 Amount $13.65 • Add new Prof. Growth .10 • Flat Amount .25 • Percent Increase (1.0%) .14 • Other 14/15 Salary $14.14 Base for 15/16 $14.14 Classified

21. Retention- staying competitive • Ongoing market analysis • Periodic adjustments to pay ranges

22. Next Steps • January 2014: Governing Board Adoption • February- End of Year: Communicate, Implement (set up system, issue contracts, etc.)