Pattye Benson

Community Matters

TEEA

Harassment, intimidation and bullying have no place in our schools …

The troubling stories of intimidation by the TE School District administration continue, as does the School Board’s silence regarding this issue. After As I See It: Tredyffrin Easttown School District … Intimidation to Silence” appeared in Main Line Suburban, I received additional phone calls and emails from former and current District employees, describing our schools as a workplace which seeks to control and silence. A former TE teacher wrote, “Employees have noted for years that they felt bullied and targeted when raising any questions or concerns regarding building and/or programming changes.” From a current District aide, The negativity and lack of respect from the administration is always present.”

What is really going on behind the walls of our schools – the morale continues to plummet but other than bringing awareness to the problem, there is no indication that anything is changing or that anyone on the School Board is actually listening. Disappointingly, there has been no response to either of the two emails sent to School Board President Kevin Buraks in regards to this matter. Some may suggest that Buraks does not respond because he is in re-election campaign mode and does not want to risk his quotes appearing on Community Matters. If that is the case, I wonder what excuse is offered for not responding to the concerns of other School District residents. How about a press release suggesting that the School Board is addressing employee concerns and claims of intimidation? The employees need to know that their contributions are valued and that they have a right to a working environment free from harassment and intimidation.

By speaking out, employees feel that their jobs are threatened. Following the School Board meeting, the administration suggested to certain TENIG members that they had no business attending the meeting. These individuals did not speak at the meeting (although if TESD residents, they have that right); they merely attended the meeting. I find this level of control by intimidation from the administration extremely disturbing. All employees deserve a supportive working environment not a place where they fear losing their jobs for raising questions or concern.

With the level of discontent, negativity and lack of respect that many District employees are indicating, I simply do not understand why the School Board does not investigate and find answers. Why should employees fear retribution from the District administration for speaking out or … in the case of some TENIG workers, for just showing up a public meeting? When a District employee speaks as a citizen at a meeting, does the First Amendment not protect them? How is it possible that a school district is allowed to exercise control over an employee’s private speech.

There are examples of intimidation and low morale of the employees from all areas of the District — the kitchen staff, the custodians, the aides and the teachers. Large segments of the employee community feel disconnected from the District leadership; leaving them to question why the School Board seemingly does not care. How do the members of the School Board rationalize and not react to what District employees are saying? I will say it again, this is not some isolated, disgruntled employee looking for attention but rather the new reality of what it means to be a TE School District employee. Respect and support should be commonplace on the education ladders of TE schools, regardless of whom you are or whom you know.

There’s no magic wand to make this simmering problem within our schools disappear. Increasing awareness suggests that our award-winning TE School District needs a thorough internal examination and review to look at what is really going on inside our school walls.

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Footnote: In a quick Google search, I found ‘School Perceptions’, an independent research company that collects data, conducts internal examinations, professional development, benchmark surveys, etc. and measures feedback from community, parents, students and staff in public and private schools. According to their website, their mission is to “help educational leaders gather, organize and use data to make strategic decisions” by measuring what matters. I understand the economics of the School District and I realize that School Perceptions, or a similar company, does not come without a price tag however … this situation requires action. One solution is an independent examination and review of the working environment of the District employees.

Outsourcing analysis by TE School District does not stand up to public scrutiny – decision ‘on hold’

Taxpayers, teachers, PTO presidents, paraprofessionals, parents, substitute teachers, TENIG members and students brought their collective voices to the School Board meeting last night, and were heard, at least temporarily.

Standing three people deep and overflowing into the lobby, all attended the meeting for the singular purpose to oppose outsourcing of paraprofessionals in the TE School District. For over three hours, one voice after another was echoing the same message to the School Board, “don’t outsource.” For the record, not one person spoke in favor of the District’s proposed outsourcing plan.

With Fox News and ABC Action News filming most of the proceedings,Board members, District business manager Art McDonnell, personnel manager Sue Tiede and Superintendent Dan Waters repeatedly claimed that many of us had misunderstood and that the third-party outsourcing to STS would actually help ‘save’ the jobs of District aides and paras. They wanted us to believe that STS would hire all the displaced TE employees and that our employees would be making more money working for STS.

According to McDonnell, the need for outsourcing is based on the Affordable Care Act (ACA) and the cost to provide healthcare for the aides, paraeducators and substitute teachers working 30 hours or more per week in TESD. These employees have never received healthcare coverage through the District. McDonnell claimed the annual cost to provide healthcare coverage to these currently uninsured District employees would be in excess of $2.3M and further citing a potential fine of $1.2M annually for noncompliance.

By the time the last person had spoken out about outsourcing, it was abundantly clear that the District and the School Board had many more questions than answers. McDonnell had predicated his evaluation of the healthcare coverage costs to the District on all 175 employees needing insurance. As was repeatedly pointed out, most of these employees have insurance through their spouses and do not need the coverage. The District’s cost to insure was based on all 175 employees working 30+ hours per week which had many in the audience asking why not reduce their hours (so the District would not be affected by the requirements of ACA).

Several residents spoke of personal experience with the Affordable Care Act and its requirements. One in particular, a CFO for a local corporation, offered that the District’s analysis was incomplete and inaccurate, and suggested the Board seek healthcare benefit expertise so as to make an informed decision. Example of inadequate District analysis — The Affordable Care Act does not stipulate that the healthcare coverage must be the same as offered to the teachers and administrators. Rather than plugging in the cost for a ‘basic’ healthcare coverage in their outsourcing analysis, the McDonnell used the cost of the Cadillac-type of healthcare coverage of the administrators.

The most striking comments of the evening were from those who had called the proposed outsourcing company, STS to learn about the company and their employment requirements. They were told that STS employees only need graduate from high school, or a GED will suffice. (Remember all the aides, paras and substitute teachers working in TE have 4-year degrees and many have Master degrees). When asked if any additional training was needed to serve as a school district paraprofessional, the response from the company HR — was one evening of their STS Academy training (!). One young woman in the audience spoke last night who works for TESD but is also a STS employee. She explained STS hiring procedure and the shocking revelation that STS hired her with no interview required.

Personnel director Sue Tiede repeatedly countered the low employment standard of STS that should District use this company, they would be required to meet the TESD requirements. We also learned that STS has no experience with this type of job outsourcing. Although McDonnell and Tiede offered that a couple of Lancaster County school districts employ STS, we learned quickly from audience members that these contracts were only recently signed … therefore leading to the speculation that our award-winning school district would serve as the company’s outsourcing guinea pig.

Facing many unanswered questions from audience members and an outsourcing analysis that did not stand up to public scrutiny, at 11:20 PM, the School Board voted unanimously to table the discussion of outsourcing for the night. By the Finance Committee meeting on June 10, the administration and the Board will seek a better understanding of the Affordable Care Act (and its requirements) plus work to answer the many questions and possible solutions offered by the public last night.

Will outsourcing in TE School District signal decline of property values?

At the Monday TE School Board meeting, our community’s taxpayers, parents and School District employees deserve an open and honest discussion on the impact of outsourcing. If the jobs of aides, paraeducators and substitute teachers are outsourced with a third party contractor, we deserve to know the long-term costs and financial benefits, if any. Based on the numbers provided at the Financial Committee meeting, I am not convinced that outsourcing is a cost-savings measure.

Outsourcing subjects our most vulnerable students, those with special needs, to a revolving door of low-paid, less qualified replacements hired by the low bidder outside contractor. Is this better for children with special needs than keeping the dedicated longtime TE employees who parents and students trust and respect?

And what about the taxpayers in the community who don’t have children in the school district … the issue of outsourcing affects you too. To date, Tredyffrin and Easttown Township residents have enjoyed stable real estate values; the reputation of the T/E School District a key to the sustainability. The quality of a school district affects local property values and as a result, homeowners are willing to pay a premium. With the outsourcing of paraprofessionals in T/E, I think we will see the beginning of a downturn in our home values. Everyone needs to understand that if the School Board votes on Monday to outsource the aides and paraeducators, the jobs of the District’s custodians, kitchen workers and support staff will not be far behind. The homeowners in this School District should have assurances that living in the T/E community will continue to mean sustainability of the home real estate values.

Upon his election as T/E School Board president in December 2012, Kevin Buraks stated, “We’re benefiting families with kids who are in school because they’re getting a top-level education that they’ll have for the rest of their lives. I think we’re also benefiting families who don’t have kids in school, because we’re keeping high property values because the schools are ranked in the top of the state”. Contrary to what you stated 5 months ago, I would argue Mr. Buraks that outsourcing of aides is not beneficial to our families and outsourcing will certainly not keep our property values high. Perhaps, President Buraks should review his own words prior to the outsourcing vote.

Scott Dorsey sent in a comment for the last Community Matters post but rather than have it buried in the stream of comments, I am adding it to this post. Mr. Dorsey is a School Board candidate and voices strong opposition to outsourcing. Opposing Dorsey in Tredyffrin Region II is currently serving School Board Director Rich Brake. In Tredyffrin Region I, incumbent Kevin Buraks is challenged by Peter Connors. The four Easttown Region III candidates are Doug Carlson, Virgnia Latner, Maryann Piccioni and Jean Kim.

Primary Election Day is May 21 and knowing where candidates stand on issues has never been more important than in 2013. I invite current School Board Directors Buraks and Brake and candidates Connors, Carlson, Latner, Piccioni and Kim to submit a personal statement on the issue of outsourcing. Similarly to Scott Dorsey’s statement, all statements received prior to Monday night’s meeting will appear on Community Matters. (Although Betsy Fadem and Anne Crowley are not seeking re-election, they are welcome to submit outsourcing statements as well Pete Motel, Jim Bruce, Liz Mercogliano and Kris Graham.)

From Scott C. Dorsey …

As a resident of Tredyffrin, I stand firmly against any proposal that would outsource the jobs of my fellow neighbors. I truly believe there is an assault on those who have no union representation and it is time for our community to let its voice be heard.

I am saddened by the latest actions of our School Board. The Board has lost its way in giving our top administrators a sweet pay increase and retirement bonus while pushing paraprofessionals out to the lowest outsourcer bid. I understand the Board struggles to find financial opportunities to keep the school district solvent, but do we stoop to tactics of harassing nonprofit organizations by questioning their tax status or attempting to tear down neighborhood popular tennis courts? Do we discard loyal and valued employees who contribute to our students’ success?

Why are they making these decisions without the full input of the community? Where is the transparency?

Government can’t solve all the problems on its own, but Tredyffrin has been a community where people of all backgrounds can raise their families and provide their children a great education. In recent years, our educational system has come under attack. It is time to have public meetings and hear the voices of our neighbors before making decisions that will radically change the character of our schools.

Outsourcing will not save the district money or be a better deal for aides and paraprofessionals, as some School Board members have suggested. I beg my friends on the Board to listen to the people. It is time to focus on investing, not slashing the greatness of our community. I ask all my neighbors to come to the School Board meeting on Monday night to oppose the outsourcing of our educational system. Let us fight to protect those who are oppressed. May God bless us to find the right solutions that will preserve a great school district by investing in its children and valued employees.

175 Aides and Paraeducators are on the verge of outsourcing in T/E School District — Help save their jobs!

It is almost impossible to believe that we live in a wealthy Philadelphia suburb with award winning, nationally ranked schools and our School Board is voting whether to outsource 175 aides, paraeducators and substitute teachers at Monday’s School Board meeting.

Since attending the Finance Committee meeting and writing about it this week, I have heard from parents, residents, aides, TENIG members and teachers. Not a single person contacted me to say that they support outsourcing, touted as a cost-savings measure by the District. I understand that there is pressure to cut costs in the District budget but cutting costs should not be at the expense of our most vulnerable students.

Although the District business manager Art McDonnell presented a couple of slides at the Finance Committee meeting about outsourcing, many in the audience left short on answers and confused. Here’s a review of what I think we know at this point about the outsourcing. According to McDonnell, the staff researched outsourcing opportunities and met with five different vendors. We were not given the names of the other vendors, only the recommended vendor – Substitute Teachers Service, Inc. (STS). During the evening, it was repeatedly stated that STS is one of the nation’s largest outsourcing vendors and has been in the business for 25 years.

The “Analysis of Outsourcing of Aides and Paraeducators” slide indicated that the 2013-14 anticipated wage and benefits costs for aides and paraeducators is $3,359,784. The cost to the District to outsource with STS is 22.5% of actual wages paid to the aides and paraeducators. STS will pay all benefits form the 22.5%. It was unclear what those ‘benefits’ were beyond the required Social Security, etc. The agreement with STS will be for 3 years. The increased costs to the District for outsourcing in Year One is $126,307 and Year Two is $59,678. In Year Three, the District will see a projected savings of $529,544. How does the District go from losing money ($190K) the first two years to saving $500K? I have no idea.

The anticipated wages and benefit costs for substitutes for 2013-14 is $842,250. Like the aides and paraeducators, if outsourced to STS, the cost to the District is 22.5% of actual wages and vendor pays all ‘benefits’ out of the 22.5% and is a three-year agreement. The increased cost to the District is Year One of $76,500, Year Two of $60,112 and Year Three of $44,275. It is my understanding that the District will not see a savings until Year Six if the substitute teachers are outsourced! By outsourcing, the District loses money for 5 years before recognizing savings … and this is viewed as a solution?

To be very clear, should outsourcing occur, there is no guarantee that the aides and paraeducators will still have jobs in our school district. How do I know this absolutely … I asked that specific question at the Finance Meeting and was told by Sue Tiede that the District would ‘encourage’ STS to keep our employees. I asked if the District’s agreement with STS could mandate that the outsourcing company hire our employees and the answer was NO. I don’t view encouraging a vendor to hire our employees as any guarantee to the 175 aides, paraeducators and substitute teachers.

When I asked the Board if STS would compensate the TE employees at their current pay level, the answer from Art McDonnell was no, he indicated that their pay would be lower if outsourcing occurs. However, by the end of the outsourcing discussion, that response shifted with Dan Waters stating that the outsourced employees would actually be paid more if they were outsourced. The rationale behind this claim – when outsourced, the paraprofessionals will not be making the 7.5% PSERS contribution so therefore the employee makes more money. What? This is not more money as the contribution was the employee’s money in the first place.

I’m asking the question again, ‘Where’s the fairness”? Three months ago, the School Board approved raises for the highest paid employees — the administrators. Now the Board is contemplating outsourcing the employees with the least amount of power, making the least amount of money. If you recall, the administrator raises were buried in a consent agenda; and we came very close to see a repeat performance with the outsourcing. The game plan at the Finance Committee meeting was to add outsourcing on the School Board meeting consent agenda. However, thanks to Board member Anne Crowley speaking out, outsourcing will be a priority discussion, which allows for public comment prior to the Board vote. How does the District balance raises to administrators against the outsourcing of aides … interesting interpretation of ‘shared sacrifice.’

In closing, I am including excerpts from some of the emails in the last few days in regards to the District’s proposed outsourcing:

From a District aide …

“These individuals have direct contact with our children on a daily basis. They are our greeters in the lobby, the aides who work one on one with special kids in the classrooms, they monitor lunch periods and recess, they work in the library and in the office , they assist teachers in the classroom, accompany our children on field trips and the do so much more. Many live in our community, have children in the school system. They are our neighbors and friends.

Personally, I worry that non-local strangers will be brought into our schools and not give the same quality of care and attention to our kids that my colleagues or I would. Our current aides have a college degrees and many master’s, they go through rigorous security screening by the district and by the school staff. Many have been working here for several years. “

From a resident …

“I challenge the School Board to spend some time really thinking about the outsourcing decision before you vote. Spend some time; really know what these people do, because those paraprofessionals have among the hardest jobs in the building. I’ve done that job; I respect the heck out of those people.”

From a TE teacher …

“This outsourcing will affect all students in various ways none of which are good. Paraprofessionals are partners to the teachers in the education process. They pick up where the teachers leave off. They are there to lend a hand when one or a few students need it, so teachers can continue teaching the other students in the classroom. I think the important message here is the fact that the role of paraprofessional in TESD is a very important one and I urge the Board to weigh the financial savings against the impact on our students. I’d like the Board to think about the students first. I think we’ve lost our way a little bit with regards to our students.”

From a parent of a special needs child …

“I completely support the paras of TE. They do this job because they love it and they love being with the children. The paras make very little money and many have teaching degrees. To me, as a parent, it makes me feel very comfortable sending my child who has special needs to school each day. I know what it would do to my child having a different face in class each day who doesn’t know what to do or how to help. Cutting costs should not come at the expense of our students. Both special needs and typically developing children benefit from having para professionals in our schools that are there every day.”

If you care about the future of 175 aides, paraeducators and substitute teachers in the Tredyffrin Easttown School District plan on attending the upcoming School Board Meeting. Whether you are a parent, a teacher, a paraprofessional, a TENIG member or a resident and oppose outsourcing, join me on Monday, May 13 at 7:30 PM at the T/E School District Administration Offices (TEAO), West Valley Business Center, 940 West Valley Road, Suite 1700, Wayne.

Is outsourcing aides and paraeducators to avoid the cost of complying with the Affordable Care Act the right alternative for TE?

Rising pension and escalating health care costs are putting intense pressure on school districts to lower costs. Tredyffrin Easttown School District is no different and there will probably be outsourcing discussion at Monday’s Finance Committee meeting. Fueling the discussion of outsourcing TESD aides and paraeducators is the Patient Protection and Affordable Care Act. As of January 1, public schools are required to provide health care coverage to all employees working more than 30 hours per week. The penalty for not providing health care coverage will be steep and school districts will face significant fines for noncompliance.

There are around 150 aides/paraeducators working in the District. This group of employees is not included in the TENIG union and does not have benefits. Although TENIG is comprised of ‘non-instructional’ workers, I wonder if it would be possible to expand their membership to include the aides and paraeducators. There is strength in numbers; by increasing their membership could help TENIG when they fight their own outsourcing battle.

The District is currently not legally required to provide benefits to non-unionized support staff. Based on a right-to-know request filed by Keith Knauss, it appears that this group of employees does not have healthcare coverage. In response to Keith’s request for the benefit records of non-unionized staff, Art McDonnell’s response was, “The documents do not exist in School District records.” I take that to mean that the non-unionized staff receives no benefits. As a follow-up, I asked Keith about the benefits of non-union employees in Unionville-Chadds Ford School District. His response was that none of UCF’s 250+ support employees is unionized. However, most all are full-time and those that work 30+ hours per week receive standard benefits (healthcare, sick days, personal days, disability, life insurance).

If the interpretation of Art McDonnell’s response is correct and the aides/paraeducators do not receive health care benefits, then there is little doubt that the District is seriously considering outsourcing before the Affordable Care Act takes effect. While outsourcing may save the District money, is it really the right option? Special needs children and their families depend on the District aides and paraeducators. Mainstreaming children with special needs so they may interact and share a ‘regular’ education experience is an important task. Integral to a successful education experience is the consistency and established relationships with the support staff. How can the School Board consider outsourcing those employees who share the most personal, one-to-one relationship with our District’s students? It makes no sense that the children who need the most consistency will be subject to “outsourced” caretakers who can feasibly change daily based upon the staffing circumstances of the outside company.

Also, I would be remiss if I did not mention the obvious safety concerns that comes with wholesale turnover of 150 familiar District employees by outsourcing. Is the newly hired safety consultant aware of the District’s possible outsourcing? Have the consequences of outsourcing been thoroughly discussed by the District Safety Committee? We know that making our school buildings secure is important but so are background checks and appropriate oversight for those in contact with our children.

Is outsourcing aides and paraeducators to avoid the cost of complying with the Affordable Care Act the right alternative for TE?

TENIG President Mary Minicozzi delivers statement of pride and commitment to TE School Board

At the T/E School Board meeting last night, the public comment section offered several interesting remarks from TESD residents. Representing her Brookmead neighborhood, Rosemary Kait expressed disappointment to the Board for the lack of notification that the tennis courts at Valley Forge Elementary School will be razed on Saturday, March 23. According to Kait, adjacent neighbors were received very late notification of the demolition plans via an email from TESD Business Manager Art McDonnell yesterday. Although Kait, stated that following her comments to the School Board, she was headed to Board of Supervisors meeting last night, it is doubtful that the process will be stopped.

According to TE Patch, the School District states that there are two reasons for the demolition — “… the township will no longer maintain the courts, and the permeable ground that will replace the courts will offset new parking spaces at the school.” Apparently, the removal of the tennis courts was part of the District’s 2008 parking study. I was at the School Board meeting, so if someone has further information from BOS meeting, please update.

Tredyffrin resident Scott Dorsey had a couple of questions for the School Board. He stated that as a minister he was associated with various nonprofits and asked about the letter that the District is sending out to tax-exempt organizations. Dorsey wanted to understand what kind of documentation would be required by the organizations. School Board member Betsy Fadem reiterated that there are 300 tax-exempt property owners in Tredyffrin and Easttown Townships and that the questionnaire is to determine whether these organizations still qualify for that status or should they be paying property taxes.

Although the possible tax savings according to Fadem was again stated as $1.6 million in Tredyffrin and $920,000 in Easttown, those numbers seem very high to me. I understand that the District has financial needs, but what is the price tag for goodwill of nonprofits? Even if a nonprofit qualifies for exemption under the District’s rubric, just fulfilling the requirements of the questionnaire is certain to cause a degree of angst (and possible legal expense) to nonprofits. As someone directly associated with one of the nonprofits on the list, I know firsthand the level of anxiety the Board’s actions have caused.

The second question that Mr. Dorsey had for the School Board had to do with consent agenda process. He wanted to understand how an item could be removed from a consent agenda. Board president Kevin Buraks explained that it is generally unnecessary to hold discussion on consent agenda items but if a Board member wants to hold discussion, they can ask for the item to be removed from the consent agenda (and it will then be removed). Alternatively, a Board member may also vote against or abstain with respect to the consent agenda without having asked it to be removed.

Although Dorsey did not say why he was asking the question, it should be noted that at the February School Board meeting, Board members Anne Crowley and Rich Brake voted against the consent agenda, stating transparency issues because there was no discussion on the administrator pay increase included in the consent agenda. As an aside, Scott Dorsey is challenging Rich Brake for TESD Region II.

The most poignant and powerful statement came from Mary Minicozzi, the new TENIG president. Beyond the words that she read, was the passion for TESD as she expressed her commitment, and the commitment of all TENIG employees to the children of this District. A paycheck doesn’t buy that level of devotion … the dedication of Minicozzi to and her fellow TENIG members is not easily replaced. Most of TENIG don’t just work in the District, this is their home — most are taxpayers, many with children in the School District. How do you balance any perceived cost savings from outsourcing against the pride, commitment and dedication of TENIG employees? Here is Mary Minicozzi’s statement from last night:

TESD School Board Meeting, March 18, 2013
Mary Minicozzi, TENIG President
Statement

My name is Mary Minicozzi and I am the new TENIG President. I am a taxpayer and a parent of 3 children that graduated from Conestoga High School. I would like to speak today regarding outsourcing the TENIG Employees.

TENIG employees consist of custodians, maintenance, secretaries, cafeteria and security staff. There are more than 150 TENIG employees and all of us will be fired when you outsource our jobs. Our families, our children and our livelihoods will all be adversely affected by your decision. Please take a moment and think about the 100’s of people your decision will hurt. And nearly all of these people, like me, have lived in T/E their entire lives and their kids live here, their parents live here and all of us contribute to make this community the great place it is.

Outsourcing for the T/E Schools is flat out dangerous. How can you justify bringing strangers into our schools to watch over our children, support our teachers and advocate for parents. While we are trying to secure the outside of our buildings, with security cameras and ballistic film on our windows, we are considering putting strangers inside our schools.

The students lives are worth much, much more than that. Actually a child’s safety and a parent’s piece of mind are priceless. It is a fact that outside corporation’s highest priority is making money. They are not in the business of protecting our precious children. Please reconsider this dangerous method of cutting cost.

I would like to end with an experience I had several years ago when I was an elementary school secretary.

We had a fire in our Art classroom. The fire alarm went off. The Art teacher called me to tell me the kiln was on fire. I made an announcement to evacuate the building. I called 911 and notified the custodian who immediately went to the Art classroom to put out the fire.

After calling 911, I called Dr. Waters. Within 3 minutes, maintenance workers from the District were at the school. There was no principal in the building at the time of the fire. I was responsible until administration arrived at the school. My utmost priority was keeping your children safe. Maintenance workers surrounded the building checking every area in the school to make sure all children were safely out of the building.

I never left the building! I stayed by the phone and answered every parent phone call. Parents were so concerned and I was there for them to let them know their children were safe.

As you can tell by the story I just told: It was the Custodian, The Maintenance Worker and the Secretary (ALL TENIG EMPLOYEES) who alongside our teachers ensured all your children were safe.

Do you think this same scenario would have occurred if these positions were outsourced? We are a critical piece to this wonderful school District. I am so very proud of that, my colleagues are proud of that and parents and community members talk with pride about T/E schools.

Are you prepared to look into our parents eyes and say, I promise you, I guarantee you safety will be exactly the same after you outsource TENIG.

In the past 3 years, TENIG has worked to help the District save money (even though that savings was the paid out to other employees in bonuses and pay raises. We have sacrificed to keep our jobs and keep our schools secure. Despite the sacrifices we have made in support of our fantastic district, we are now being threatened with being fired.

I hope that each school board member will seriously do their due diligence and consider the hundreds and hundreds of families that will be affected by your decisions.

Thank You.

 

Rising healthcare costs … the explanation for outsourcing strategies?

Economic times and tight school budgets have school districts scrambling to find ways to cut costs, and the ‘outsourcing’ chopping block continues as a major target. Proclaiming cost-savings for cash strapped schools is the driver behind school district outsourcing decisions – and there appears to be an outside company available for virtually every classified service.

There’s nothing wrong with researching the outsourcing idea; otherwise how will the School Board know if they are getting the best services at the best prices. That said, I do object that the notification letter from the District was mailed to TENIG without any mention at a School Board meeting. It struck me odd that the president of the teachers union rather than the president of the School Board disclosed this information. Don’t misunderstand, I am grateful that TEEA president Laura Whittaker brought the public up to speed on the outsourcing process. But I don’t think it should be her job to keep ‘us’ in the loop. It’s important that the public be in the loop during the Board’s ‘discovery’ process as it relates to the outsourcing bids, but also to important that the Board list to resident input on the topic.

The fact is that all the school districts are in a tough situation and that some form of outsourcing has become an avenue for some districts to save money. Over in Pennsbury School District, members of their support staff, PESPA (Pennsbury Educational Support Professional Association) have taken their cause to the community. With prominently displayed yellow lawn signs, PESPA are delivering strong words to their School Board, ‘STOP Pennsbury from Outsourcing’. Well-organized, the union is fighting back through a website dedicated to outsourcing, www.pennsburystudentcare.org which includes an online petition with over 1200 signatures.

According Bucks Local News, Pennsbury’s business manager Dan Rogers (equivalent to our Art McDonnell) is claiming that they could save about $21 million over the next 5 years by outsourcing custodial services, maintenance workers, paraprofessionals, IT support technicians and instructional aides. An additional $4 million could be added through the sale of buses and equipment. PESPA represents about 600 support staff members – they continue to work under the terms of their old contract, which expired in 2011. Fascinating to note that the chief negotiator for the Pennsbury school board is Jeffrey Sultanik (remember he was the negotiator for T/E School Board with our teachers union).

Sultanik is quoted at a School Board meeting saying, “ …the only way the Board would not consider subcontracting is if the union is willing to make significant salary and benefit concessions.”

Bucks County’s Quakertown School District support staff, Quakertown Education Support Professionals Association (QESPA) fighting back against the privatizing threat of 100 custodians and cafeteria workers. Armed with 1,500 signed petitions from community residents, QUESPA members want their Board to know that taxpayers do not the high quality of services provided to the children to be given away to an outside private company that will bring strangers into the schools. QUESPA’s current contract expires the end of June but Board is underway in their solicitation of proposals from private outside vendors – believing that it could help save money on food and retirement benefits.

In southern Chester County, the driving force behind Brandywine Heights Area School Board’s decision to authorize an RFP to outsource paraprofessionals is the Affordable Health Act that will take effect in 2014. Currently, in the Brandywine Heights district, the paraprofessionals work 6 days a week, 30 hours a week and are considered part-time. However, under the Affordable Health Act, all workers who work 30 hours or more are eligible for benefits.

Kennett Consolidated School District (KCSD) is slightly ahead of TESD in the process. Having already sent RFPs out for outsourcing custodial staff, they are now reviewing the bid received from Servicemaster, a worldwide provider of custodial services. According to data provided, outsourcing of custodial services would save KCSD approximately $400K in 2014, with higher projected savings in years ahead. KCSD is set to make a decision this month on privatizing custodial services and are planning a similar review of outsourcing proposals of instructional and teaching assistant staff in the next few months.

I thank Keith Knauss, School Board director for Unionville Chadds Ford School District (UCFSD) for supplying the following background information for discussion:

” … As background, in 2009-10 TE had 312 full-time support personnel and 78 part-time support personnel. That’s the most recent year available from PA Department of Education.

Those 312 full time support personnel are entitled to salary and benefits defined in the current TENIG contract.
http://www.tesd.net/cms/lib/PA01001259/Centricity/Domain/42/TENIG09july.pdf

Let’s examine the district’s cost to employ a hypothetical 10 month, 190 day, 8 hour per day, Clerk Typist for this year and next.

2012-13 2013-14
Salary $31,981 $33,410 $21.04 to $21.98 per hr (4.5%)
FICA @7.62% $1,218 $1,273 7.62% half reimbursed by the state
PSERS $1,976 $2,835 12.36% to 16.97% half reimbursed by the state
Healthcare $18,700 $20,196 est. family coverage, 8% inflation
Holidays, Sick Leave $3,703 $3,868 10 paid holidays, 10 sick days, 2 personal days
Total $57,579 $61,582
% incr 7.0%

There are two factors that might lead school directors to investigate outsourcing.

First, the cost increase from this year to next is estimated to be 7%. This a problem when the district’s revenue is constrained by the Act 1 Index that is estimated to be 2.2% next year.

Second, the cost of benefits is far higher than in the private sector. The PSERS retirement plan and associated cost has been under discussion several times in this blog. What hasn’t been discussed is the cost of healthcare. According to the Kaiser Foundation, the national average family plan costs $15,745. The employer pays $11,429, the employee pays $4,316. This is compared to TESD where the family plan is estimated to be $19,000. The TESD pays $18,700, the support staff employee pays $300. The district’s cost of healthcare for support employees is estimated to be $7,000 above the national average.
http://ehbs.kff.org/pdf/2012/8345.pdf

As always, I try to be thorough and accurate. I have purposely not advocated for any solution or made any determination as to what is fair. Constructive criticism is welcome….”

Thank you Keith for this information. Accepting that the District’s ‘hands are tied’ re PSERS costs (at least for the short-term), clearly the focus needs to be redirected towards healthcare costs, where the opportunity for change does exist. I have been vocal in my support of TENIG, but as was the case with the teacher contract negotiations, healthcare costs are negatively affecting the budget bottom line. The teachers provided healthcare concessions in their latest contract and I am hopeful that given the opportunity, the TENIG members may do likewise.

A look at Enrollment, Projected Staffing, Real Estate Assessment Appeals and Economic Impact in T/E School District for 2013-14 Budget

I attended last night’s TESD Budget Workshop for the development of 2013-14 budget. Sue Tiede, Director of Personnel presented enrollment history and trends, projected staffing needs and changes for the District.

In the review of staffing changes from 2008 to 2013, it was interesting to note that full-time teachers during this period has decreased by 48 teachers, compared to an enrollment increase of 355 students during the same period. The total enrollment in 2008-09 was 6,132 increasing to 6,487 in 2012-13, which indicates a 5.8% increase or 355 students.

An enrollment history chart dating from 1975 to 2012, indicated that in 1975 the District enrollment at 6,497 students. From that point, 37 years ago, the District’s enrollment steadily decreased for 15 years to its lowest point in 1989 of 3,990 students. Starting in 1990, the District’s enrollment began to increase yearly to 6,487 students in 2012, which marked the highest enrollment since 1975, when there were 6,497 students. We know that there are currently 48 teachers fewer than in 2008, but the chart did not indicate what the staffing was in 1975, when the enrollment was within 10 students of where it is today.

The projected requirement for 2013-14 indicates additional staffing needs of 7.6 educators. Included in the 7.6 staffing number is the addition of one special education, one technology and three mental health specialists. The special education professional is for autistic support.

The District’s Business Manager Art McDonnell presented updates on property tax revenue lost from reassessments and economic impact on other local revenues (interest income, transfer tax, delinquent tax, and interim tax) and provided a revenue variance analysis and 2013-14 budget summary. In 2006-07, the annual property tax revenue lost to the District in reassessments was $256,561.

As presented by McDonnell, annually since 2006-07, residents and commercial property owners have continued to appeal their property taxes. The annual loss to the District in property tax revenue due to reassessments is as follows: 2006-07: $256,561; 2007-08: $244,236; 2008-09: $417,041; 2009-10: $975,994; 2010-11: $826,923; 2011-12: $595,072; and 2012-13: $411,051. However, these numbers do not paint the total picture. There is a cumulative loss as the new reassessment revenue loss is compounded each year. The accurate property tax revenue lost to the District from assessment appeals based on the cumulative effect is as follows: 2006-07: $256,561; 2007-08: $512,000; 2008-09: $44,126; 2009-10: $1,947,142; 2010-11: $2,847,464; 2011-12: $3,536,508; and 2012-13: $3,946,559. The District’s budget for 2012-13 is nearly $4 Million less due to property tax revenue lost from assessment appeals. And by the way, the $4 Million may go up as Vanguard’s assessment appeal remains an open issue; scheduled court date is April.

McDonnell presented the economic impact on other local revenues (interest income, transfer tax, delinquent tax and interim tax). Although we all know that the interest income rates at the banks is nearly nonexistent these days, it is certainly evident when reviewing the District’s financials. In 2006-07, the District earned about $3 Million in interest income versus $109K in 2011-12. However, there was some encouraging news – the District’s interest income for 2012-13 is projected to nearly double from last year, $200K. The transfer tax revenue is also indicating projected growth, from approx. $1.7 Million last year to projected $1.8 Million for 2012-13. Looking at the total revenues from interest income, transfer tax, delinquent tax and interim tax, the District is projecting $3,227,647 for 2012-13, down from last year’s $3,981,314 – indicating an approx. $750K loss in revenue. However, when you look at interest income, transfer tax, delinquent tax and interim tax in 2006-07, the total revenues to the District was $7,542,466 – approximately $4.3 million more dollars than projected for 2012.13.

McDonnell was able to provide some possible good news. Under Governor Corbett’s 2013-14 proposed budget, the state subsidy revenue for TESD is basic education funding increase of $92,016 and special education funding decrease of $11,024 – providing a net increase of $80,992 in state subsidy revenue. This is cautionary news as Corbett’s budget is the preliminary stage.

The impact items included in the District’s 2013-14 budget: $200K for administrator salary increases, $250K for District safety enhancements and $125K for support staff for network upgrade. Open budget impact items under consideration including the outsourcing of TENIG staff and outsourcing of aides and paraeducators. The President of TENIG, Dave Fillippo, read a statement in regards to outsourcing, which will be presented in a separate post.

Where’s the Fairness? T/E Administrators Receive Bonuses But Outsourcing Remains Possibility for TENIG Employees

Laura Whittaker, President of T/E teachers union (TEEA) delivered a status update and message of support at Monday’s school board meeting for members of TENIG (Tredyffrin Easttown Non-Instructional Group) based on the District’s possible outsourcing. (TENIG members include the custodians, maintenance workers, kitchen staff and secretaries.) Whittaker disclosed that members of TENIG’s bargaining union have received notice of their potential layoffs from the District.

The School Board is required to give TENIG a written notice of their intention to issue an RFP to seek outsourcing bids at least 120-days in advance. If you recall, when faced with a similar situation in the previous year, TENIG came back to the Board with a ‘give-back’ arrangement — employees took a 10% pay cut and waived their contracted raises for this year. In addition to saving the District considerable money, TENIG’s offer ultimately saved their jobs from outsourcing.

I do find it curious that the TEEA president is the one offering the public updates on TENIG and the District’s possible outsourcing rather than the School Board providing this information. Why?

I have heard outsourcing savings to the District estimated at $1 Million – $1.5 Million but I am not sure where these numbers come from — to my knowledge, past outsourcing bids were never released to the public. Without the details of the bids, how does one substantiate the accuracy of possible cost-saving benefits.

If the Board only looks at the bottom line, perhaps there is cost-savings. However, there are other issues to consider. As the President of TEEA, Laura Whittaker so aptly stated last night, “T/E is not about numbers and budgets. It is the people who make this District what it is.” Many of the TENIG members are local residents with a personal connection to the District – many graduated from Conestoga and/or have children in T/E schools. Can outsourcing provide the same level of productivity and quality of job performance as the current employees? I am of the opinion that privatizing these services will not mean “better labor,” but will negatively affect the lives of long-time employees and their families.

I worry that safety of the children may be compromised by outsourcing. Who is responsible for the background checks – will custodial companies that come cheap more likely to compromise safety? Background checks are expensive and a cost factor to private companies – can the District be certain that an outsourced company will actually do background checks on employees. If the District’s custodial services are privatized to save some money, what’s the old adage, ‘you get what you pay for’ is going to apply. Privatizing may mean less reliable employees in the schools, at a greater cost, over whom the District will have no direct control.

As the Board once again looks at outsourcing of TENIG jobs to save the District money, I am reminded how quickly, they approved (7-2) administrator raises last month. If you recall, the administrator bonuses were buried in a consent agenda at the January 28 School Board meeting. No public discussion was permitted until after the consent agenda vote was taken.

What about fairness? I am aware that the District administrators had not received raises in 3 years, but I still find it curious that not one word was mentioned about the District’s economic situation, prior to the approval of the consent agenda in January (giving bonuses to the administrators). Please understand that I am not comparing the work of District administrators to that of TENIG workers, but … I am struggling with the issue of fairness. The highest paid in the District, the administrators, are rewarded with bonuses (without any discussion) yet the lowest paid TENIG employees, who took a 10% pay cut and waived their raises to save the District money, are facing potential layoffs. Again, I ask, where’s the fairness in this picture?

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Note: There is a scheduled School Board Budget Workshop I Meeting for Monday, March 4, 7:30 PM. I hope that the Board will be more forthcoming in regards to the outsourcing potential and what cost-savings can be expected. I would also like to hear from TENIG President Dave Fillipo on behalf of the TENIG employees in regards to the possible layoffs.

Will Tredyffrin Township’s Proposed 2013 Budget increase or decrease level of staffing in Police Department?

The consulting firm, International City/County Management Association (ICMA) has completed their operations review and data analysis of the Police Department; click here to read the detailed 92-page report. The agenda for Monday’s Board of Supervisors meeting includes a presentation of the ICMA Police Operations Report.

As reference, the Board of Supervisors approved this $49K police operations study in July. Before approving the study, there was discussion from some of the supervisors about whether the money would be better spent on bringing the police officer staffing up to the authorized level of 47 (currently at 41) or using the money for Police Department equipment.

Will the ICMA report influence the proposed 2013 preliminary budget or have a bearing on the ongoing police contract arbitration? Probably the most important question that many of us wanted answered by the consultant’s study – How many police officers are required in Tredyffrin Township to provide adequate safety for the residents? Did the study suggest increasing the department beyond the authorized level of 47 or would the recommendation be to decrease the staffing level?

The ICMA police operations study concludes that a minimum of two additional police officers needed to be immediately hired and assigned to patrol. According to the report, the consultants were informed that two officers have been authorized, increasing the level to 43 police officers.

The ICMA report recommends the Police Department take immediate steps to review the current shift schedule and consider the alternative 10-hour and 40-minute shift schedule, see ‘Patrol Personnel, Shifts and Shift Strength, Four-Shift Model’ on pages 79/80. According to the report, this new schedule can reduce patrol over-staffing; thus decreasing personnel requirements. However, the report notes that changing the shift schedule may be limited by the Police Department’s collective bargaining agreement. By modifying the current schedule, ICMA suggests there would be a reduction in the department’s need for patrol personnel.

According to the report, the current shift schedule provides a “total of six overlap hours during every 24-hour period. In other words, for six hours each day, two shifts (or approximately eight patrol officers) are scheduled to be working at the same time. The data analysis portion of this report confirms this. As stated elsewhere, these hours can be used for training and other purposes, such as participation in the department’s physical fitness program. But as the data analysis indicates, this dramatic increase in manpower suggests some inefficiencies that are built directly into the shift schedule.”

ICMA claims that the alternative schedule, which uses four starting times for shifts each day instead of three, will provide for greater flexibility, “both in terms of varying start times and in aligning manpower with calls for service.” By making this change in scheduling, the report indicates a reduction in supervisory staffing requirement. As I understand the report, if the Police Department were to move to the alternative 10-hour and 40-minute shift schedule, the standard of service to the community would be maintained with 43 officers (implying that the additional 4 authorized staffing vacancies would not be filled). However, the report points out that if the schedule is not changed, it may require the staffing level to increase to 45. Currently the Police Department has authorized staffing for 47 officers – my read is that ICMA does not recommend filling those two additional vacancies.

The current breakdown of the 41 members* of the Police Department are as follows:

  • 1 superintendent
  • 2 lieutenants (operations and administration)
  • 8 sergeants (6 assigned to patrol, 1 detective sergeant and 1 traffic sergeant)
  • 6 detectives (1 assigned to patrol)
  • 7 corporals (6 assigned to patrol, 1 assigned to traffic)
  • 1 community policing officer
  • 16 police officers

*My understanding from reading the report is that an additional two police officers has been approved and these officers will be assigned to patrol, bringing the total to 43 officers. The additional two officers will help reduce the overtime expenditures.

It makes sense that the reduction in Police Department staffing directly affects overtime expenses. With vacancies of six police officers (47 authorized down to 41), the report provides overtime data that underscores the additional overtime expense. The Police Department’s overtime costs in 2009: $55,175; 2010: $66,231; 2011: $144,037 and up to August 15, 2012: $138,914. Overtime expenditures in the first 8 months of 2012 were nearly as much as all of 2011 and clearly the overtime costs will continue to rise until the end of the year.

Will the recommendations contained in ICMA’s study have any effect on the township’s proposed 2013 preliminary budget? In reviewing the proposed 2013 budget, the actual level of police staffing is not obvious. Does the proposed 2013 budget allow the Police Department to increase staffing to its authorized level of 47? We should remember that the authorized level of 47 police officers is actually a decrease from previous years — at some point in the past, the Police Department had 50+ officers.

As it now stands, the proposed 2013 preliminary budget includes a 5.5% tax increase with the $40M unfunded medical liability dark cloud hanging over the township. In addition, the ‘elephant in the room’ is the ongoing contract negotiations between the township and the police union, Tredyffrin Township Police Association (TTPA). Since January 2012, the contract between TTPA and Tredyffrin Township has been in arbitration; the 3-year police contract expired the end of 2011. The process has been held captive for nearly a year, waiting for a ruling from independent arbitrator, Michael Zobrak.

Because of the comments on my post, “Lifetime healthcare benefits of Tredyffrin Township Police Association result in $40M unfunded liability – What’s the solution?“, I filed a ‘right-to-know’ request with the township. I received copies of TTPA 2004 and 2009-11 contracts. Until a new contract is signed, the Police Department continues to work to their last contract, 2009-11. The starting point for the collective bargaining agreement is with the 2009-11 contract; therefore, my comments below are taken from that contract. (Click here to review TTPA-Tredyffrin Township 2009-11 contract).

Without a copy of the police contract, there was conflicting information and questions, much having to do with the medical coverage of retired police officers. Here are the facts according to the 2009-11 contract:

  • For officers (and their spouses/dependents) hired prior to 1/1/99 who retire after 15 years of service, medical coverage is provided without cost, except for co-pays and deductibles.
  • For officers (and their spouses/dependents) hired after 1/1/99, who retire after 20 years of service, the township shall pay the premiums for medical coverage in the amount of 4% multiplied by the officer’s years of service. An example given: 4% x 20 years of credited service = 80% premium payment.

According to the 2009-11 contract, if an officer retired on or after 1/1/2009, the township may coordinate its obligation to provide post-retirement medical coverage with available Medicare coverage. “For those persons eligible for Medicare, the township shall reimburse them for any cost associated with acquiring Medicare, including the cost of Plan B coverage. In addition to being responsible for all costs associated with Medicare coverage, the township shall purchase supplement insurance and the township shall self-insure such as is necessary to provide the retired officer and spouse with the same level of insurance coverage they enjoyed before coverage was coordinated with Medicare.”

It was my understanding from the budget meeting, that retired police officers received lifetime health care benefits; however that point was debated on Community Matters. Reading further in the contract, it states that, “… Officers who retired prior to 1/1/09, as well as their spouses and eligible dependents, shall be permanently vested with, and continue to enjoy, the same level of healthcare benefits being provided for them by the Township as of 12/31/2008 at no cost, except for co-payments and deductibles then in effect.”

The missing link in the discussion was the 1/1/2009 date and whether the police officer retired before or after that date determines the medical coverage. Until I read the contract, I did not know the requirement for retirement was 15 years of service before 1/1/99; after that date, it became 20 years of service. I had incorrectly assumed that retirement benefits required 25 years of service.

For those police officers currently employed by the township, the township pays the entire medical premium for police officers, including spouse and children, with officers paying co-pays and deductibles. Benefits also include dental and vision coverage.

Another question previously raised was the longevity bonus pay of the police officers and how it was calculated. According to the contract, the bonus is computed as follows:

  • After 4 years of service 2% of Basic Yearly Salary
  • After 8 years of service 4% of Basic Yearly Salary
  • After 12 years of service 6% of Basic Yearly Salary
  • After 16 years of service 8% of Basic Yearly Salary
  • After 20 years of service 10% of Basic Yearly Salary

The biggest roadblock in collective bargaining contract disputes these days is health care benefits (in addition to salaries). Certainly health care benefits were an important component in the recently settled T/E teacher contract negotiations. Appreciating the current economic environment, the teachers agreed that their generous healthcare plan of the past was no longer possible, changes were made in their teacher’s contract accordingly. At present, there are 52 retired police officers and their families that are receiving retirement medical benefits. According to the 2009-11 contract, it appears that police officers retiring before 1/1/2009 are not required to go on Medicare when eligible. It would be interesting to know how many of the retired 52 officers have opted to go on Medicare benefits (even those not required to do so) when they became eligible.

As the T/E School District’s contract with the teachers union is a public document so is the Tredyffrin Township Police Association contract with the township. Some in the community have voiced concern with residents speculating about the contents of the police contact. I am of the opinion that as the T/E School Board has the TTEA contract available on their website, www.tesd.net, the township should likewise provide the TTPA contract on the website. Providing the public documents to the residents lessons the confusion and misinformation that comes about by not know the facts.

I look forward to your comments on ICMA’s report reviewing the Police Department and the 2009-11 agreement between TTPA and the township. Monday, December 3 Board of Supervisors meeting includes the proposed 2013 preliminary budget and the ICMA police operations report on the agenda.

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