The June 30, 2012 contract deadline for the T/E teachers came and went with no new contract signed. Therefore, as of July 1, the School District and the teachers union, TEEA are now in status quo. This means that the T/E teachers’ salaries will be frozen at their salary level based on their 2011-12 salary until a new contract is signed.
According to the School District website, “… the teachers will continue to receive their salary at the current rate until the earlier of (1) a strike or lockout within the terms of Act 88 of 1992; or (2) the entry into a new contract.”
Also during the status quo period, the teachers health care benefit plan remains intact based on the expired contract, until a new contract is signed between the School Board and TEEA.
The School Board passed the 2012-13 TESD budget in June, which includes a property tax increase of 3.3%, or .6154 mills – equating to approx. $3 million revenue. The 3% tax increase will translate to an annual increase to homeowners in T/E of about $155.
Former T/E School Board member Andrea Felkins created the following graphs with descriptions below each graph for Community Matters readers. When we discuss the benefits, salary and pension costs of the District, it is difficult for some (myself included) to fully grasp the magnitude of the situation. Through the use of the graphs, the data is more organized and easier to understand. When you view the data through Andrea’s graphs, it is much clearer the role that each of the three components play in the budget, especially as the School District moves forward. It should be noted that these graphs assume no salary increases.
Based on the final budget presentation, this is just a depiction of the PSERS and the BENEFITS numbers for the next few years. It’s why I advocate a major change in the benefit plan – knocking $5M off the expenditures annually.
Based on holding salaries constant, while PSERS is climbing, benefits stay well ahead of the PSERS contribution.
Each piece of the budget deserves scrutiny. This graph shows that PSERS takes a bigger piece each year, but the other components dwarf the PSERS costs.