Employee Bargaining Units Asked to Freeze Salaries at 2008-09 Level
Uncategorized 1 Comment »I hand delivered a letter to the presidents of each of the seven bargaining units on December 10, 2008, asking each unit to freeze its 2009-2010 salary levels at the 2008-09 levels. I informed each president that I would be talking with the Board of Education about the request that night at the board meeting. After having spent many hours in the preparation of the 2009-2010 budget proposal, I decided that the economic climate could not support the level of increases in the Board’s contractual obligations. The letter globally explained the issue which the school system faces.
At the Board of Education meeting I explained that in my 12 previous years as superintendent in Stonington, town leaders had always pronounced each year as a disastrous budget season and asked for a zero percent increase in the school budget, when in fact the national, regional and local economies were stable and good. There is a difference in people’s ability to pay taxes for the town services they expect and their desire to do so. This year no one needs to cry wolf about the ability of people to pay as there is a real and deep recession with people losing jobs, houses, and financial security. Unlike the municipal side of local government which has most of its budget requests in projects, the schools are mostly about salaries and benefits. The schools have 5 times the number of employees as the municipal government employees. When teachers are cut from schools, classes get larger and some programs are lost all together. When other employees are cut from schools, services to children, cleanliness, maintenance, and transportation suffer. Since 78% of the school’s budget is spent on salaries and benefits, it is that portion of the budget that must be tapped to defray increases.
I announced at the Board of Education meeting that I would forego a salary increase for the 2009-2010 school year. While my salary is higher than any other employee in the school district, I would never request that anyone give up an increase in salary without doing the same myself.
The text of the letter follows:
Dear :
Given the national financial crises, housing difficulties with increased foreclosures, and the year old recession, the White House, Governor Rell, and local municipal authorities are projecting huge shortfalls in federal, state, and local revenues. Since more people are out of work than in decades, the ability to generate revenue through increased taxes during the annual budget process appears weak.
Last budget year the school system requested an increase in its operations budget of 4.5%. After five referenda and a reduction of $720,000 the schools began the current school year with only a 2.1 % increase. By remaining focused on its philosophy and goals and by reallocating many resources in the previous budget, the Board of Education avoided employee layoffs.
The Board of Education is currently in the process of developing its 2009-2010 school budget proposal. The Board is faced with the salary account mainly controlled by salary bargaining agreements, increasing nearly one million dollars. If health benefits increase no more than 9% they did last year, the Board will be faced with another $300,000 expense.
Currently staffing needs appear static. Enrollment projections show a loss of two teacher positions, but they are of-set by three teachers who will retire. It also looks as if 1.4 FTE teachers will need to be added at the high school.
The school system has already locked in fuel and electricity costs for next year, which generated a savings to the system of $130,000.
During the 2008-2009 budget year, a reduction list was developed with over a million dollars of possible reductions. After the Board completed its reductions in July 2008, there were still $270,000 worth of possible reductions left on the list.
Written here is a summary of the above information.
Increased Costs (2009-2010) Anticipated Savings (20090-2010)
Salaries: $1,000,000 Salary Account: $150,000
Health Benefits: 300,000 (Retirements/new hires)
Energy 130,000
Rest of Reductions from 270,000
_________ July 2008 list _________
TOTAL: $1,300,00 $550,000
It is therefore obvious that even by including the programmatic and staffing reductions that were avoided last July, the school system cannot come close to generating enough savings to counterbalance salary and health benefit increases, nor realize the publicized low budget percentage increase expected by state and local officials without drastically affecting more programs and staffing.
With these facts in mind I request that the _______________________ freeze salaries for 2009-2010 at the 2008-2009 school year levels. Your written response will be appreciated by January 15, 2009.
Sincerely,
Michael McKee