Salary Schedule Analysis and Preparation

Salary Schedules PASBO Annual Conference - March 11-14, 2014

Prepared by PSBA Research 1

Serving the Commonwealth and its communities from offices in:Harrisburg - Philadelphia -Pittsburgh - Wilkes-Barre

David W. Davare, Ph.D.Pennsylvania Economy League

Harrisburg Office

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Salary Schedule Analysis and Preparation

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Topics

Compensation

Negotiations

Getting started

Schedule Analysis

Salary schedule issues

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Elements of CompensationSalaries Health insurance

Retirement

Social Security/Medicare

Other benefits

Extra‐curricular compensation

Continuing education – payment for credits

Language (seniority, days, hours, etc.)

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Compensation – Salaries

Education = column

Years of service = steps

Step movement

Increment or incremental cost

Column movement

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Steps Bach Master Doctorate

1 33,385 34,719 35,8402 33,934 35,729 36,4003 34,503 35,860 36,9804 35,096 36,465 37,5855 35,715 37,096 38,2166 36,365 37,759 38,8797 37,053 38,460 39,5818 38,994 40,440 41,5609 40,934 42,419 43,53910 42,875 44,398 45,51911 45,956 47,540 48,66012 49,796 51,546 52,57613 56,073 57,858 58,97814 60,481 62,353 63,47315 63,196 65,235 66,355

Salary Schedule Basics



NegotiationsSalary Schedule

Salary schedule from current contract.

Prepare an analysis of the schedule Look for issues

Increment cost

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NegotiationsPlacement matrix

Locate current staff on the salary schedule

Use the last payroll prior to the start of negotiations.

The district is the official source

Get union to sign off on placement matrix

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Negotiations

Using the Index

Pro and Con in using index

Need to be careful in consideration

Calculate new schedules every year

Similar to using the CPI

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Getting started

Cost your proposal !!!

ALWAYS cost the association proposal

Include cost as part of response

Look at language for cost impact

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Bargaining committee should know

Your demographics Senior Citizens, Average wages

Be aware of your tax base Assessment issues; income base

Know the value of 1 mill

Any issues with the salary schedule

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“Nickel & Dime” Agreement for a $5,000 increase in life insurance will cost 5*.15 or $0.75 per person ($7.50 for every 10 people)

Make sure that you have a clear pot of money.

Subtract the “nickel & dime” these from the pot.

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“Nickel & Dime”

Be aware of the “nickel – dime” items

Each instructional employee shall be granted two (2) personal days each school year in addition…

Any unused personal days… will be rolled over into sick leave. [Including] …perfect attendance days.

[U]nused sick days paid at $75 per day….”

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“Nickel & Dime”

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Be aware of the “nickel – dime” items

During the absence of any teacher, a substitute shall be hired for such teacher except in case of emergency where a substitute cannot be obtained.

If a “regular” teacher is assigned by the principal or her/his designee to substitute for another teacher during the regular teacher’s planning time, the “regular” teacher shall be paid at the rate of $xx.xx



Placement matrix

Identify all staff

Get agreement on the matrix

Identify bargaining committee

Identify union leadership

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Step Bach Mast M+9 M+18 M+27 M+38 Total

1 0 0 0 0 0 0 0

2 10 4 0 0 0 0 14

3 2 0 0 0 0 0 2

4 2 1 0 0 0 0 3

5 12 1 0 0 0 0 13

6 13 5 0 0 0 0 18

7 4 1 0 0 0 0 5

8 2 1 0 0 0 0 3

9 8 8 0 0 1 0 17

10 5 1 1 0 0 0 7

11 8 5 1 0 0 0 14

12 3 3 0 0 0 0 6

13 3 0 0 0 0 0 3

14 1 3 0 1 0 0 5

15 4 3 0 0 0 0 7

16 3 2 1 0 0 0 6

17 0 2 0 0 0 0 2

18 16 13 1 1 0 0 29

Total 96 53 4 2 1 0 156

Placement Matrix

Locate all staff by step and column

Also locate bargaining committee and

Association leadership



Salary Schedules – Current

• Years of service

• 10 steps to 40 steps

• Additional education

• from 2 columns to a column for every 6 credits

• 3 districts with no schedule

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Salary Schedule ‐ Issues

• Years of service (steps)

• At what point does an additional year of experience no longer add to competency?

• Should this be the maximum steps?

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Salary Schedule ‐ Issues

• Additional education (columns)

• At what point does an additional credit no longer add to competency?

• Should this be the column?

• Issue in North Carolina and Saucon Valley SD

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Salary Schedule

Step Bach Mast M+9 M+18 M+27 M+38

1 37,600 38,300 38,600 38,900 39,200 39,500

2 38,200 38,900 39,200 39,500 39,800 40,100

3 38,700 39,400 39,700 40,000 40,300 40,600

4 39,200 39,900 40,200 40,500 40,800 41,100

5 39,600 40,300 40,600 40,900 41,200 41,500

6 40,100 40,800 41,100 41,400 41,700 42,000

7 40,600 41,300 41,600 41,900 42,200 42,500

8 41,600 42,300 42,600 42,900 43,200 43,500

9 43,000 43,700 44,000 44,300 44,600 44,900

10 44,700 45,400 45,700 46,000 46,300 46,600

11 46,300 47,000 47,300 47,600 47,900 48,200

12 47,600 48,300 48,600 48,900 49,200 49,500

13 49,400 50,100 50,400 50,700 51,000 51,300

14 51,000 51,700 52,000 52,300 52,600 52,900

15 52,500 53,200 53,500 53,800 54,100 54,400

16 53,350 54,050 54,350 54,650 54,950 55,250

17 67,325 55,000 55,300 55,600 55,900 56,200

18 68,958 69,258 69,558 69,858 70,158

COLUMNS

STEP



Salary Schedule Analysis

• Four basic analyses

• Calculate the following:• Step difference

• Column difference

• % of Master’s maximum

• Increment

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1 n/a n/a n/a

2 549 1,010 560

3 569 131 580

4 593 605 605

5 619 631 631

6 650 663 663

7 688 701 702

8 1,941 1,980 1,979

9 1,940 1,979 1,979

10 1,941 1,979 1,980

11 3,081 3,142 3,141

12 3,840 4,006 3,916

13 6,277 6,312 6,402

14 4,408 4,495 4,495

15 2,715 2,882 2,882

Step Differenceor Increment

Subtract step 1 from step 2



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1 n/a 1,334 1,1212 n/a 1,795 6713 n/a 1,357 1,1204 n/a 1,369 1,1205 n/a 1,381 1,1206 n/a 1,394 1,1207 n/a 1,407 1,1218 n/a 1,446 1,1209 n/a 1,485 1,120

10 n/a 1,523 1,12111 n/a 1,584 1,12012 n/a 1,750 1,03013 n/a 1,785 1,12014 n/a 1,872 1,12015 n/a 2,039 1,120

Column Difference

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Steps Bach Master Doctorate1 51.2% 53.2% 54.9%2 52.0% 54.8% 55.8%3 52.9% 55.0% 56.7%4 53.8% 55.9% 57.6%5 54.7% 56.9% 58.6%6 55.7% 57.9% 59.6%7 56.8% 59.0% 60.7%8 59.8% 62.0% 63.7%9 62.7% 65.0% 66.7%10 65.7% 68.1% 69.8%11 70.4% 72.9% 74.6%12 76.3% 79.0% 80.6%13 86.0% 88.7% 90.4%14 92.7% 95.6% 97.3%15 96.9% 100.0% 101.7%

Percent of Master’sMaximum

Each step/column as a percent of Master’s top step



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Steps Bach Master Doctorate1 n/a n/a n/a2 0.8% 1.5% 0.9%3 0.9% 0.2% 0.9%4 0.9% 0.9% 0.9%5 0.9% 1.0% 1.0%6 1.0% 1.0% 1.0%7 1.1% 1.1% 1.1%8 3.0% 3.0% 3.0%9 3.0% 3.0% 3.0%10 3.0% 3.0% 3.0%11 4.7% 4.8% 4.8%12 5.9% 6.1% 6.0%13 9.6% 9.7% 9.8%14 6.8% 6.9% 6.9%15 4.2% 4.4% 4.4%

Step Difference as % of Master’stop step

Cost matrix

Uses 9th grade algebra

A * B = C

A is the salary matrix

B is the placement matrix

C is the cost matrix

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Cost of Increment

Calculate the cost of the current placement matrix (A*B1=C1)

Move everyone one step on the placement matrix

Use the current salary schedule

Multiple the current salary schedule by the new placement matrix (A*B2=C2)

Resulting cost (C2) is then subtracted from the original cost (C1) and the difference is the increment

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35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Schedule 2010‐11

B M M+27 D

Graphic representation of current salary schedule for 4 columns



Schedule needs “fixed”

Who prepared the broke schedules?

Why should the district pay to fix what the association broke?

Do the repair separate from the increase to make sure the repair occurs.

Make the increase in the year of the repair account for the repair.

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30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

STEPS

Bach Master

Doctorate Linear (Master)



Association Positions

Steps and Columns

• Get to the top – 10 years

• Education – or columns

Supplant promotion

Promotion IS move to administration

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Association Positions

• Attrition = Increment

• Therefore the discussion of an increase should be on scale

• Starting salary target $40/50K

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Association Schedules

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Association prepared schedule

Year Amount$

Increase%

IncreaseAgreement

Base 2010‐11 8,001,971

1 2011‐12 8,280,885 278,914 3.49% 2.704%

2 2012‐13 8,573,182 292,297 3.53% 2.807%

3 2013‐14 8,849,183 276,001 3.22% 2.955%

4 2014‐15 9,142,441 293,258 3.31% 3.005%

5 2015‐16 9,438,659 296,218 3.24% 3.063%

Association Schedules

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Year$

Increase%

IncreaseAgreement % diff $ diff

2011‐12 278,914 3.49% 2.704%0.79% 62,895

2012‐13 292,297 3.53% 2.807%0.72% 59,871

2013‐14 276,001 3.22% 2.955%0.27% 22,719

2014‐15 293,258 3.31% 3.005%0.31% 26,990

2015‐16 296,218 3.24% 3.063%0.18% 16,182



Cost of not checking2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 Total

2010‐11 62,895 62,895 62,895 62,895 62,895 314,477

2011‐12 59,871 59,871 59,871 59,871 239,483

2012‐13 22,719 22,719 22,719 68,157

2013‐14 26,990 26,990 53,980

2014‐15 16,182 16,182

Total 8.6% over the life of the contract 692,279

Plus PSERS + Social Security

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Support Staff SalaryArgument for increases:

Living Wage

Based on family structure

Originally developed for welfare to work policy debate

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Affordable Healthcare Act (aka Obamacare)Employer sponsored healthcare

Cadillac plan

Single = 10,200

Family = 27,500

Excise tax = 40% on amount that exceed limits

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Q & A

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E‐mail: [email protected]

Cell phone: 717.975.7000

IU8 Presentation Pennsylvania Economy League

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Terms associated with salary schedule negotiations Across the board increase: All individuals receive the same increase. (If this term is

used you need to clearly understand if the increase includes or excludes the increment.)

Attrition: The reduction in cost that results when a teacher at the top of the schedule

retires and is replaced by a teacher on the lower level of the salary schedule. Bump Step: Same as a jump step. The difference between two steps is substantially

larger than the difference between other steps. The amount can vary from $3,000 to $15,000 for a single step.

Career rate: Defined by PSEA as the salary at the top of the Masters degree column. Column movement: The movement of individuals between columns based on increased

education as measured by college credits. Compaction: The number of total steps on the salary schedule is reduced. Cost matrix: The result of multiplying the salary matrix by the placement matrix. Equivalency or equivalent credits: The training an individual receives that is treated at

though it was equal to college credits for advancement across the columns. Fixing the salary schedule: Eliminate a bump/jump step or other variation between steps.

The expectation is that the Board will absorb the cost of “fixing” and provide increases beyond the amount to “fix” the schedule.

Increment: The cost of advancing all employees on the placement matrix by one step. Jump Step: Same as bump step. The difference between two steps is substantially larger

than the difference between other steps. The amount can vary from $3,000 to $15,000 for a single step.

On scale increase: Applying the salary increase to the salary schedule excluding any

increment cost. Placement matrix: The listing of employees by step and column. Salary index: A distribution of salaries on the schedule based on a percent of the career

rate or Master’s maximum. Step movement: The means by which an employee will progress through the salary

schedule. Wage Freeze: No step or column movement for one year along with no change in the salary schedule

Salary Schedule Analysis and Preparation

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