Tredyffrin Easttown Education Association Archives - Page 5 of 6

Tredyffrin Easttown Education Association

I attended this week’s Finance Committee meeting for the school district. As we are all acutely aware, TESD is facing major budget challenges like every other school district in the state. The challenge for School Board directors is what strategies to impose to meet the demands of the budget crisis. Over the next few years, Tredyffrin Easttown School District will be faced with a $16 million budget shortfall.

We can accept that the pension crisis is a major contributor to the unprecedented shortfall but it is coupled with other factors. Because school districts are so reliant on property taxes to fund their respective budgets, the last few years and the next several years will show an ever-decreasing revenue stream as property values and real estate transactions have tumbled. The unfunded and underfunded mandates serves only to exacerbate the already difficult fiscal situation faced in the school district.

With rising healthcare costs plus the required PSERS contributions, it is impossible to balance that increase when the Act 1 index plus exceptions is below 4%. Add in decreasing real estate revenues and state and federal support … equals the unprecedented new fiscal reality of our school district. So where does this leave the local school board … looking for new ways to decrease spending and/or increase revenue.

At the Finance Committee meeting, budget strategies, some old and some new, were discussed. The committee recommended the implementation of a $50 sports and activity participation fee for the 2012-13 school year to be considered at the next full School Board meeting. If approved, the fee would be collected from each high school and middle school student involved in sports or activities. However, it should be noted that the $50 fee would only be charged once per student regardless of how many sports or activities the student participates.

An interesting suggested budget strategy that could affect nonprofits with real estate in the school district was discussed. There are over 300 not for profit organizations in the school district with exempt status for property taxes. The value in exempt property assessment in the school district of these nonprofits exceeds $366 million. As a budget strategy, the Finance Committee discussed the possibility of challenging these tax-exempt property owners by requesting payment to the school district in lieu of taxes. There was discussion that perhaps these nonprofits might voluntarily contribute to help the school district, if asked.

There’s no argument that nonprofits may provide useful services but they also impose a cost on municipalities because they consume public services, such as police protection and roads, but do not pay taxes on the property they own. In the non-profit community in Philadelphia, a number of tax-exempt organizations make voluntary payments to the coffers of the local municipality, including University of Pennsylvania.

Charitable nonprofit organizations, which include private universities, hospitals, museums, soup kitchens, churches, etc., are exempt from property taxation in all 50 states. Many nonprofits reduce local government spending by offering services that would otherwise be provided by those governments, but at the same time, these nonprofits impose a cost on municipalities by consuming public services, such as police protection and roads.

It is clear that many nonprofits reduce local government spending by offering services that some governments might be required to provide otherwise. However, as I have said, these nonprofits impose a cost on municipalities by consuming public services, such as police protection and roads.

Neither the school district nor the local governments could force the tax-exempt organizations to pay tax on the properties they own, but why not set up some kind of voluntary contribution system? What would be the harm in asking our local nonprofits who own real estate, if they would like to help the school district budget crisis with a financial contribution? I would take it a step further and suggest that Tredyffrin and Easttown Township Board of Supervisors should similarly ‘ask’ for a voluntary contribution. With the ongoing challenge of local governments to balance their budgets, maybe this revenue source could save some services (and jobs) in the townships.

However, there is another side to this discussion that needs to be stated. That is, that the struggling economic times have challenged nonprofits financially as demands for their services have skyrocketed while they have seen their revenues nosedive. Sitting on the boards of two nonprofit organizations myself, I can confirm the decline of foundation grants and the downturn in corporate contributions. In addition, according to the IRS, individual giving to nonprofits has sagged by 20 percent.

Bottom line: These are tough economic times, which require some unprecedented, thinking ‘outside the box’ solutions, such as voluntary contributions in lieu of taxes by not-for-profit organizations that own real estate.

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There were other proposed budget strategies including increased class size and cuts to the district’s music program. I will address those issues in a separate future post and ask that you hold comments directed at those proposed budget strategies for that specific Community Matters post. Thank you.

T/E School Board’s Special Meeting on June 1 includes Amended TENIG Agreement . . . No Custodial Outsourcing but What about the $800K Proposed Savings?

May 31, 2011

31 Comments

The TESD 2011-12 budget process started in late 2010 and has included multiple budget, finance and school board meetings and updates to the public. The school board and administration have worked to present a timeline of budget information and to keep us informed on budget strategies. Hearing the ‘shared sacrifice’ appeal from the Board to the Tredyffrin Easttown Education Association (TEEA) teachers union, both sides were able to come to an agreement for the 2011-12 school year, which included a salary wage freeze. The process was tedious and both TESD and TEEA appeared satisfied with the results.

Throughout the budget process, the administration and Board supported TESD’s educational standard as its focus and priority. Any budget strategies requiring cuts to educational programming was only with much discussion. One such expense reduction decision was the budget strategy that included eliminating Latin and German in the middle school . . . a difficult decision, but one that was required to help bridge the budget deficit. Generally, I have observed willingness on the Board’s part to fully disseminate the budget information and to keep the budget process as transparent as possible. It is for that very reason that I find this week’s special board meeting and the notification of agenda items (or lack of notification) somewhat troubling.

I received email notification last week of TESD’s upcoming special board meeting on Wednesday, June 1 at 5:30 PM. The stated purpose of the meeting is to approve the Conestoga High School graduating Class of 2011. There was no mention of any other agenda items at the meeting – and I probably would not have bothered to check further except that a township resident alerted me. In review, the June 1 agenda includes a “proposal to amend the TENIG collective bargaining agreement”. Contained in the agenda materials is the proposed amended TENIG agreement and schedule of wages, effective 4/29/11 – 6/30/14. (Click Here for meeting agenda, see pgs. 5-7 for TENIG agreement and schedule of wages).

I will discuss the contents of the TENIG agreement and wages later in this post, but first I will address TESD process as it relates to the outsourcing of custodial services. For months, there has been discussion at the budget, finance and regular school board meetings about the possibility of outsourcing of custodial services as a budget strategy option. At each meeting where details of the budget were presented, there was always a slide indicating the possible savings of $800K for custodial outsourcing. To quantify the District savings, the administration sent out a RFP for custodial outsourcing earlier in the year. According to the School Board Meeting Minutes of 3/21/11, “. . . the results of bidding on outsourcing custodial services will be available on April 4 and will be provided to TENIG for review. The committee will evaluate the bid results as an option to balance the budget”.

The School Board Meeting Minutes of 4/25/11 further reflected that “. . . The District is in the process of analyzing bid results for the outsourcing of custodial staff. These bid results have been shared with TENIG, and we continue discussions with TENIG on alternatives to outsourcing. . . “

At the May 9 School Board Meeting, the 2011-12 Final Budget was presented; (Click Here for Final Budget) Page 15 shows the following:

*Remaining Budget Shortfall ($2,183,448)
Options to Close Shortfall:
1. Outsourcing Custodial Services: $800,000
2. Pay Increase Waiver TENIG only: $300,000
3. Additional Budget Strategies $0
4. Use of Fund Balance $2,183,448
(Tentative for Proposed Final Budget on May 9th)
*Includes TEEA Proposal of 50% Pay Increase Waiver of May 6^th

Contained in the proposed final budget is the salary freeze offer from the teachers union, TEEA. There was no mention in the budget presentation of the status of the custodial services outsourcing or of TENIG’s contract.

After the meeting, I mentioned to a couple of Board members that I was surprised that custodial outsourcing was not on the agenda nor was there any mention made of the results of the bids for the outsourcing; but received no response. There was indication in the final budget (see above chart) that one of the few options remaining to close the shortfall was outsourcing of custodial services — an expected savings of $800K. How many outsource bids were received? What were the offers? How did the custodial outsourcing bids stack up against TENIG’s contract for custodial services?

Following the May 9 school board meeting, the TESD released a press release summarizing the proposed final budget:

http://www.tesd.net/2127101028153743227/lib/2127101028153743227/11may9.pdf

Highlights of the proposed 2011-12 proposed final budget includes:
(1) Property tax increase of 3.77%, which equates to an average increase of $171 to T/E homeowners;
(2) $3.85 million in expense reductions and revenue increases;
(3) And $2.25 million in fund balance contribution to address the $8.9 million budget gap between revenues and expenditures.

The press release further explained that the proposed final budget includes the offer from the T/E instructional collective bargaining unit (TEEA). As was the case at the TESD Board Meeting, the summary does not (1) address the projected savings resulting from outsourcing custodial services ($800K) or (2) pay increase waiver from non-instructional collective bargaining unit, TENIG ($300K). According to the May 9 School Board Meeting Minutes these are the only remaining options to close the budget shortfall

What I find fascinating in the May 9 press release is the statement that the Board is “still evaluating other options to close the budget shortfall and will present the final budget on June 13”.

We now fast forward to tomorrow’s special board meeting and find that negotiations between TESD and TENIG have apparently already taken place and there is now a proposal for an amended TENIG agreement.

Questions: What happened with the custodial outsourcing bid process? What were the results of the bids? Why did the notification for tomorrow’s special board meeting not include any mention of the TENIG amended agreement proposal?

The custodial services outsourcing process began correctly but somehow the Board lost the transparency in the process and now we are left with the end product – the amended TENG contract. Although the Board continued to say meeting after meeting that there were looking at the final remaining budget savings options, we skip over the $800K option to outsource custodial services without explanation. To be fair, it is entirely possible that after reviewing the bids for outsourcing, the Board decided for any number of reasons (cost, student security, etc.) that they wanted to keep the custodial service ‘as is’ and covered by TENIG. These reasons could be valid – but why not let the public know why and how that decision was made?

Now we if look at the amended TENIG agreement; I have received several questions and concerns from taxpayers on this matter. Yes, TENIG has agreed to a salary freeze for 2011-12 year and I think that savings may be $300K. However, there are two additional years to the TENIG contract with increases of 4.5% each year. Was there any attempt by the Board to negotiate those increases? Is it possible that the District is (1) losing the cost savings of outsourcing custodial services and (2) additionally giving a pay increase to custodial staff?

The Board has been so diligent in their budget review process when cutting educational programs and increasing student fees (increased student parking fees and driver’s education training), I am surprised that non-education wages of TENIG are increased.

In closing, I have a couple of problems: (1) where was the transparency in the outsourcing process, and (2) understanding there remains a $2+ million budget shortfall in TESD, how can the Board rationalize an increase in TENIG wages in 2012 and 13 when the District has been forced to cut educational programming and increase fees.

Milestone Agreement Between T/E Teachers and School District: Is it a ‘Salary Freeze’ or a ‘Pay Waiver’. . . Does it Really Matter What We Call It?

May 10, 2011

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There was a milestone agreement between the T/E teachers and the school district last night. I am not sure whether we call the TEEA-TESD agreement a salary ‘freeze’ or a ‘pay waiver’ but, . . . if both sides are happy, does it really matter what we call it?

The school board members presented the details of the new teacher union offer. The offer from Tredyffrin Easttown Education Association (TEEA) was read and the discussion opened for public questions. The board voted on the proposal and the agreement won unanimous support from the school board.

To read a copy of the TEEA-TESD agreement, click here. If I understand the agreement, here are the important points:

The teachers will have their salaries frozen for the first 6 months of the 2011-12 school year based on their final paycheck of the 2010-11 school year.
For the second 6 months of the 2011-12 school year, the teachers salaries will ‘unfreeze’ and they will advance.
With this agreement, the T/E school district agrees there will be no involuntary furloughing or involuntary demotion of teachers for 2011-12.
This agreement is a one-time cost savings for the 2011-12 school year only and is not precedent setting. The agreement does not extend the current contract and negotiations for the next contract will be on schedule.

I asked Pete DePiano, union president of TEEA for his thoughts on the TEEA-TESD agreement. He writes,

“I am so proud of the membership of TEEA for stepping up with this offer during these difficult times. Likewise, I am happy that the Board was able to accept. A special note of gratitude must be extended to Mrs. Cruickshank, for we were in constant communication behind the scenes for a VERY long time working on this – even prior to the Corbett announcement. It was that continued line of open dialogue that made this all possible. We are looking forward to a wonderful conclusion of the school year as we continue to serve the greatest students in the greatest district in the Commonwealth of PA.”

Pete DePiano
President, TEEA

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Ray Clarke attended last night’s school board meeting and at my request kindly shares his thoughts below.

Re the Earned Income Tax Study Group, I want to personally thank Kevin Mahoney for suggesting that the group members be apolitical. The school board members made it clear that no one from the school board would be on the study group and I applaud their efforts in making the selection process open and transparent!

Important developments at tonight’s School Board meeting

The Board voted to accept an offer from the TEEA to defer next year’s contracted pay increase for six months with no change to the contract termination date. After six months, salaries will increase to the contracted 2011/12 levels, with step and level movement. There will be no furloughs or demotions during 2011/12, and 2012 retirees will be protected. This is expected to save the District $917,000 in 2011/12. The five year model, which assumes no salary increase in the next contract, claimed that these savings versus the previous projection continue into the out years – although I remain puzzled about that, since the matrix and distribution in place at 6/30/2012 is unchanged under the offer. It may be important to understand expectations on this going into the next contract negotiations.

The impact on next year’s budget is fairly clear, though. The board approved a budget that has a 3.8% property tax increase and a $2.2 million draw down of the fund balance, with an additional $1.9 million possible in the event of specific contingencies. There was no appetite for an Activity Fee for next year, and very different philosophies from all Board members that spoke. Only Kevin Buraks voted against an amendment to remove it from the preliminary budget. Worth looking at the tape to review the issues.

The Board defined the process for obtaining citizen input on the pros and cons of an EIT, through a Tax Study Group. They will select 9 residents for the Group based on information to be requested in a May 16th mailing to residents. Work to be completed by October, for a November decision by the Board whether to move the process forward towards an April 2012 referendum. Important difference from the 2006 effort: the group’s role is not to present a recommendation, but to help educate the Board and the public. The Board is looking for representation from across T/E, and wants the group to be apolitical. All meetings to be open to the public; not sure if that’s very conducive to a deep dive into the economics, but maybe that’s not the purpose.

Per Dr Brake’s legislative report, there seems to be some likelihood that the Legislature will reverse or limit the Governor’s proposed capricious Social Security reimbursement cut, so that may help TESD’s budget (at best, by $1 million). It also seems probable that the local ability to increase taxes beyond the Act 1 limit will not be completely eliminated, retaining at least the possibility of PSERS and special education Exceptions.

A final pet peeve: once again this year the gaming rebate was used in the context of an offset to the property tax increase. If the rebate was increasing by $171 that would be true, but in fact it’s just the same ~$180 it has been for every year since 2008/9. At least it wasn’t Dr Waters this time, but rather Dr Brake, who I thought might know better.

T/E Teachers Union President Helps Clarify Original Salary Freeze Offer

May 6, 2011

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Struggling to understand the offer that was made by the teachers union, TEEA to the T/E School Board, I sent an email to Pete DePiano, asking for clarification. Below is my email and DePiano’s official response. I accept that because the offer was rejected by the school board, the original offer is now somewhat a moot point.

We understand that other school districts across Pennsylvania are struggling with similar budget shortfalls as the T/E School District and we read of other school boards accepting ‘salary freeze’ offers from their teachers. The confusion over the definition of salary freeze and pay increase waiver has led many in the public to question why the T/E school board did not accept TEEA’s offer. If nothing else, the continued dialogue on Community Matters is helping us to better understand the nuances that exist in the discussion.

It certainly is not (nor has it ever been) my attempt to create any additional friction between the teachers and the school board. I, like many in the community, am struggling to understand the school district budget, the strategies to fund the budget shortfall and what role the teacher’s contract may play in those discussions. I want there to exist a good working relationship between TEEA and TESD . . . feeling that if the communication between these two groups remains open and honest, the outcome will be all the better for the kids (and the taxpayers).

My email to Pete DePiano, TEEA president:

There continues to be misunderstanding of TEEA’s salary freeze offer. Although I asked you to clarify the salary freeze offer and I thought that I understood, maybe I’m the one who is confused. Here’s a very simple scenario and please tell me if my understanding is correct:

You have a 3-year contract with 3 steps:
Year 1: Step 1
Year 2: Step 2
Year 3: Step 3
Teachers accept a pay freeze for Year 3

As a result:
Year 1: Step 1
Year 2: Step 2
Year 3: Step 2
Year 4: Step 3

Under the ‘pay freeze’, teachers receive the pay raise that they were to receive in Year 3 in Year 4. The 3-year contract is extended to 4 years. The teachers receive 3 steps (raises) in 4 years. Is this correct interpretation – please comment. I want the public (and myself) to fully understand what TEEA offered to TESD.

Response from Pete DePiano, TEEA president:

“Thank you for the opportunity to clarify:

The offer [though a moot point now] was a step freeze for one year, then a continuation of the final year in 2012-13. There was NEVER any suggestion of a “double” step move.

Your example of step 1, step 2, step 2, step 3 is the correct interpretation.”

T/E Teacher’s Salary Freeze Offer . . . Headlines on the Debate Continue in Main Line Suburban newspaper

May 4, 2011

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This week’s edition of the Main Line Suburban, www.mainlinemedianews.com features the following news story by Alan Thomas. Thomas attended the T/E Finance Committee meeting on Monday night and weighs in on the confusion surrounding the teachers offer of a ‘salary freeze’ for next year versus the school boards requested ‘pay increase waiver’.

If you take the time to read the many comments posted on Community Matters over the last few days, it is apparent that confusion remains over what the teachers union is offering to the school district in savings next year as compared to what the school board thinks that the teachers are offering. I am hopeful that there will be further clarification in the next day or so on the offer. Right now, I feel that we are comparing ‘apples to oranges’ when we look at the teacher offer and without some clarification, I don’t see how we get on the same page.

T/E budget workshop discusses teachers’ pay-freeze offer, board’s rejection and sports/activity fees
By Alan Thomas
Main Line Media News
Wednesday, May 4, 2011

The Tredyffrin/Easttown School Board’s finance committee held Budget Workshop II Monday night to discuss sports and activities fees. The committee put more time and effort, it seemed, into explaining how a pay waiver is different from a pay freeze, perhaps in light of the disclosure that the Tredyffrin/Easttown Education Association had communicated an offer to accept a one-year pay freeze in a letter dated April 15. It was an offer that the board later rejected but apparently had not disclosed to the public in a timely fashion.

The committee’s if not the board’s explanation of the letter may have come as the result of an April 29 Community Matters blog entry titled “T/E Teachers Union Offers Salary Freeze … TESD Rejects Offer, Wants Pay-Increase Waiver” in which blogger Pattye Benson told her readers that “there was an ‘offer’ from the teachers’ union and a ‘rejection’ from the school district … there is confusion between a salary ‘freeze’ and a salary ‘waiver’ … [and] the school board intends to clarify those distinctions.”

Community Matters is part of Main Line Media News’ Community Media Lab at www.mainlinemedianews.com .

The apparent lack of transparency was explained by board member Deborah Bookstaber as a matter in which “the board didn’t mention the letter [previously] because there was no time to discuss it.” Her explanation answered TEEA president Peter DiPiano, who had addressed the committee to ask for a clarification about when an executive session, during which time the letter might have been discussed, had been held.

Committee chair Kevin Mahoney later explained the difference between the two pay-related terms: with a pay waiver in place, there would be “no increase [in salary] next year, no extension for either [TEEA or TENIG] of the contracts, [and that the TEEA freeze offer was a] pay freeze” with raises deferred while step progression for the union members would continue to the time when the postponed raises would be resumed. The pay waiver being proposed by the board would effectively end the teachers’ contract and erase the final year’s raises and teachers’ vertical movement on the district salary scale.

District business manager Art McDonnell used several graphics to show that, over five years, the waiver plan would save the district a lot more money, around $15 million by 2015-16, assuming that salaries remained flat until then.

All non-union district employees are not getting raises. Only TEEA and TENIG, the non-instructional employees union whose contract runs a year beyond the teachers’, would be affected by either a pay waiver or a freeze.

Board president Karen Cruickshank also explained to the audience that “Mr. DiPiano has been in conversation with us. We will talk with the union and find something that works.”

And board member Richard Brake further clarified the point, addressing McDonnell, that “no advancement on the salary scale is the majority of the difference [between the waiver and the freeze].”

A community member, stressing state legislators’ part in the present overall school-budget crisis, wanted to remind people that Chester County’s Home and School Associations are sponsoring a legislator discussion and question-and-answer session concerning the current critical issues involving public education Thursday, May 5, 7-9 p.m. at West Chester East High School, 450 Ellis Lane, West Chester.

During other related discussion about the agenda, the earned income tax appeared briefly again, with the board loosely agreeing to make it a part of budget discussions for 2011-12. Any EIT must be approved by a ballot referendum.

Other community members’ comments ranged from a plea for “no more cuts or changes [in educational programs]” to an observation that “there is no way to remedy the pension situation.”

In the end the committee agreed to plug a middle-of-the-road sports and/or activity fee “place-holder” worth $70,000 into the budget process in order to pass the committee-approved budget to the next regular board meeting May 9 with the general fund designated as the solution to closing the more than $3-million gap. That and more can still change of course as the budget continues on its way to final approval June 28.

Looking to T/E Teachers for ‘Shared Sacrifice’ – Pay Increase Waiver not Salary Freeze

May 3, 2011

54 Comments

School districts across the state are scrambling to plug projected budget gaps stemming from deep cuts in state funding and TESD is no different. The use of “shared sacrifice” has become a common and oft-repeated phrase in today’s political discourse. As school district budget deadlines loom, we are see that teachers (fairly or unfairly) are finding themselves of in the limelight on this topic. In my view, we do need to boldly address our deficit crisis, but we need to do it in a way that is fair.

Last night’s TESD Finance Committee meeting had a very different tone than the last school board meeting. As the school board and administration discussed the few remaining available budget strategies, I had a sense that the school board was digging in its heels, expecting a ‘pay increase waiver’ versus a ‘salary freeze’, which the teachers union previously offered. Although the T/E teachers union (TEEA) states the value of their salary freeze offer is $2.5 million, the school board counters that the freeze does nothing more than extend the teacher contract by a year and ultimately costs the district more money. Encouraging the teachers union in the path of shared sacrifice, the school board prefers the teachers consider a pay increase waiver which, if I understand correctly, requires opening their current contract.

Credit needs to be extended to TEEA for their offer of a salary freeze to the school district. For some teachers, they believe that by offering a salary freeze, they are sharing the sacrifice. Let’s remember that Gov. Corbett suggested that teacher unions offer a salary freeze to their school districts to help with budget deficits. (I don’t recall his using the words, ‘pay increase waiver’.) Yes, there is a budget crisis in school districts across the state; but I admit that I have difficulty with the breaking of a contract, which was negotiated in good faith by the teachers. If contracts mean nothing then should we all go home and break our car purchase contract, our mortgage contract, and every other contract we signed in good faith where we expect both parties to be honorable. What about ‘negotiating’ after the contract is fulfilled . . . ?

Looking at discussion from the other side, the school board is struggling with the remaining budget shortfall. So . . . what do they do? In their minds, they believe that the teachers should help with a ‘pay increase waiver’ (shared sacrifice) which according to their calculations could net $3 million. At the meeting I had a sense that the school board is listening to the public and are interested in keeping the process transparent. They offered that they have heard from TENIG, the non-instructional union, and are reviewing the offer. Keeping the community ‘in the loop’ will prove a win-win for the school board, the teachers, and ultimately the taxpayers.

Setting aside the timeline debate of the April 14^th TEEA teacher union offer letter of a salary freeze, and the rejection of the offer by the school board, last night the Finance Committee presented their side of the argument in favor of a pay increase waiver. According to their analysis, the school district budget projection for 2011-12 is as follows:

Budget Projection as of May 2, 2011: $3,170,509
Budget Projection (TEEA and TENIG Pay Increase Waiver: $170,510
Budget Projection (TEEA Proposal Letter): $946,122
Budget Projection (Custodial Outsourcing): $2,370,438

Following the Finance Meeting, I asked Pete DePiano, president of the teachers union for his thoughts. Here is his response,

“The 450+ members of the Tredyffrin/Easttown Education Association will stay true to their integrity in attempting to come up with a final cost savings offer for the district’s consideration.”

Pete DePiano
President, TEEA

DePiano’s response tells us that the teachers are continuing to work on possible solutions to help with the budget crisis. Open and honest communication between the teachers union and the school board will aid greatly in the ongoing budget discussions. I want to believe that both sides can work together for the sake of the kids and the community.

Ray Clarke kindly offers his comments on the Finance Committee meeting below:

The TEEA proposal is judged to be worse on a 5-year time horizon than the status quo, because the projected $2.05 million of savings in 2011/12 is offset by salaries in the following years that are $0.5 million higher than they would otherwise be, due to two years of step movement rather than one. The higher salaries also trigger proportionate benefit cost increases, but there appear to be no fundamental differences between benefit programs, premium contributions, etc. in either scenario.

The salary “waiver” has the greatest impact on the district because the saving occurs every year. Although the model was presented without tax increases, it looks to me that, under this scenario, very modest increases in taxes (property or EIT) and gradual use of the “PSERS stabilization” fund balance could allow the district to fund the retirement fund beyond the five-year time horizon.

The Board did appeal again to the community to make their voice heard with legislators regarding the PSERS problem, and our frequent academic economist commenter also reminded us once again of the fundamentally bankrupt public pension plans. A couple of data points: the recent “fix” assumes an 8% investment return, and provides retiring career teachers with my estimate of an equivalent $1.25 million annuity. Just to keep this simple, here are the options:

1. Reduce the liability by undoing the multiplier increase for all, not just new hires (the decrease needs a change in the state constitution, unlike the increase…)

2. Increase taxes:
a) statewide (Marcellus gas, personal income, corporate income, etc.), or
b) locally (property, income)

3. Redirect spending from somewhere else. Like where? Pick your poison! What would Dinniman and Kampf propose?

There was a very unsatisfying discussion of a possible Activity Fee, punting it along to next week’s board meeting. Needless complications about different bases for charging. The bottom line: salaries and transportation for (non-mandated) extra-curricular activities cost the district $1.14 million a year. 80-85% of students participate in at least one. Nobody is making any argument that these activities are not totally worthwhile. A universal charge could be simply administered. So the issue is straightforward: do these continue to be funded by all taxpayers, or do families with high school and maybe middle school students bear a little more of the cost? Hopefully the full Board can have a discussion along these lines next week.

The timeline for an EIT study seems very compressed. The Board is considering appointing a study group; they need to get on that right away. If an EIT makes enough sense to put to a referendum, there’s a November 16th deadline for notifying the townships of that intent.

T/E Teachers Union Offers Salary Freeze . . . TESD Rejects Offer, Wants Pay Increase Waiver

April 29, 2011

67 Comments

Tredyffrin Easttown School District is struggling with the budget crisis much as other school districts across the state and the country. Serious budget issues escalated last month with Gov. Tom Corbett’s proposed budget, which contained massive cuts to public education funding.

School districts nationwide are looking for ways to balance their budgets in the face of looming deficits. Often budget discussions focus on teacher unions, which quickly turn into a debate about whether they have given too much or not enough at a time when school dollars are scarce. There are those that vilify teacher unions as the cause of escalating school district budgets, claiming that their pensions, health care coverage and guaranteed salary raises have increased the property taxes of those who pay the teacher salaries. Counter to this attitude are public school teachers and their supporters who claim that politicians are looking to balance budgets on their backs.

School districts and the teachers unions are vying to make their individual cases to the public. As budget discussions become more heated, often times the divide increases between the two sides. School district officials are looking to balance their budgets and teacher union leaders struggle to protect the rights of their workers. There are always two sides to a story but there is a very important third party, whose rights are often overlooked in the debate . . . the taxpayer.

“ . . . It is well understood that this school district [TESD] like so many in this country is facing a financial crisis. It would appear that this is the time for all of us to work together instead of against each other. As a good first step, I would propose that the information disseminated be supported. Unfortunately, when situations reach a crisis level within an organization (whether it is the school district, local government, corporations, etc) rumor mills explode and before you know it, things are out of control.” Community Matters, January 18, 2010

I wrote these words 15 months ago in the post, ‘Is the Teacher Union aiding in the Fact vs. Fiction Component of the TESD Budget Crisis” and they are just as important today.

I believe in the value of transparency and availability of information from government to the public. To understand a situation and to make an informed decision requires knowing the truth. As I said in January 2010, “. . . when situations reach a crisis level . . . rumor mills explode and before you know it, things are out of control.” Nothing could be closer to the truth.

Residents in the T/E School District were told by the T/E School Board that letters (dated April 6, 2011) had gone to the two district unions, Tredyffrin Easttown Education Association, TEEA the teachers union and Tredyffrin Easttown Non-Instructional Group, TENIG. According to the school board, the letters could not be made public for legal reasons. It is my understanding that the school board letters contained a request to both unions for a pay increase waiver for next year. If you recall, Gov. Corbett had suggested that teachers unions in Pennsylvania encourage their members to take a salary ‘freeze’ for next year to help their budget shortfalls. Several residents have contacted me and some have spoken up at the school board meetings to ask about the TESD letters, and if there has been a response from either union. With hands apparently tied legally, our school board was not able to provide much detail. I was told last week that members of TENIG were considering some kind of ‘give-back’ offer to the district and were to vote yesterday on their offer.

Until earlier this week, I assumed that the teachers union was not considering any type of ‘give-back’ offer or concession. My impression from attending district budget, finance and school board meetings was certainly that no response (or offer) had been received by the district. During the course of this week however, I have had phone calls and emails from numerous sources suggesting that a salary freeze offer was made to the T/E School Board but that the offer was rejected. To clarify, these sources of information were not TEEA union leadership.

Clearly confused but believing in the publics ‘right to know’, yesterday I contacted via email the members of the TESD school board and Pete DePiano, TEEA union president. The following email was sent to the School Board and DePiano asking for clarification:

Dear __________

I am in receipt of information that indicates, among other things, that there was an offer made from Tredyffrin Easttown Education Association teachers union for salary freezes for next year, in advance of the negotiations for the next contract. According to several sources, the TESD school board rejected the teacher union’s salary freeze offer, citing that such an offer would only be acceptable if the current teacher’s contract were opened and renegotiated.

I am working on an article on this topic and I am affording you the opportunity to comment on this matter. If you wish to comment, I will need the information within 24 hours, by 10 AM Friday, April 29, 2011.

Kind regards,
Pattye Benson

From the President of TEEA, I received the following email response:

On April 15, 2011, TEEA formally offered a salary schedule pay freeze to the T/E Board of School Directors. The Board formally has responded to TEEA that they cannot accept the offer. As the T/E School District prepares to finalize its budget for 2011-12, TEEA will continue to work diligently with its members behind the scenes to attempt to reach another cost savings offer.

Pete DePiano
TEEA President

In response to my request, I received the following response from T/E School Board President Karen Cruickshank:

Dear Pattye:

Many thanks for contacting the T/E School Board about a teacher offer in T/E. As you know we are in a significant budget crisis, and have asked both of our unions in a sense of shared sacrifice to participate in a pay waiver. At our Monday night Finance meeting we will provide a detailed presentation about why we can not accept a pay freeze but would welcome a pay waiver. I would encourage you to attend the meeting so that you can see the entire presentation and ask any questions that you have of the board.

Many thanks for your commitment to providing information to our community.

Most sincerely,
Karen Cruickshank
T/E School Board President

Karen Cruickshank sent a follow-up email:

Dear Pattye:

In regards to your request for information about union offers in the T/E School District, the TESD School Board does not negotiate in public. We continue to remain in close communications with both of our unions.

As I did say in my earlier e-mail there is confusion over the difference between a pay waiver and a pay freeze, and we will clearly point out the financial differences between them at our Monday night Finance Committee meeting. The Board as always will be most happy to take questions from the community at the meeting.

Most sincerely,
Karen Cruickshank
T/E School Board President

Although we learn from these responses that there was an ‘offer’ from the teachers union and a ‘rejection’ from the school district, what did the offer letter and the rejection letter actually say . . . ? It is obvious there is confusion between a salary ‘freeze’ and a salary ‘waiver’ and it is noted from both of Cruikshank’s responses, that the school board intends to clarify those distinctions at TESD’s upcoming Finance Committee meeting on Monday night.

I did not receive copies of either the TEEA letter to T/E School Board or the letter from the T/E School Board to TEEA. However, with a bit of research online I was able to track down both letters. The letters are available online (and therefore public) and can be found at www.teeacher.org .

In addition to the TEEA and TESD letters, there is a note to the teachers from DePiano:

To all TEEA members:

Below are two letters. The first, dated April 15, 2011, is TEEA’s response to the TE School Board’s request that we waive the fourth year of our contract. It consists of a refusal to waive the contract and an offer to freeze the contract for one year and extend it.

The second, dated April 27, 2011, is the District’s response, a refusal to consider any agreement that involves extending our contract.

To clarify: A waiver would cancel the fourth year of our collectively bargained contract and put us into immediate negotiations for a new agreement. A freeze is essentially a one-year pause. We would work in 2011-2012 under the same provisions we have this year. We would then realize the negotiated final year of our contract in 2012-2013.

Yours in solidarity,

Pete DePiano, President TEEA

You will note that the TEEA offer letter dated April 15, 2011 to TESD states in part,

“ . . . In an attempt to prevent more painful cuts from having to occur (including program cuts, increases in class size, or an outsourcing of the custodial staff) yet also honor the contract that was negotiated in good faith, the Representative Council of TEEA has authorized a salary freeze proposal for the Board’s consideration. This includes a salary step freeze for 2011-12 based on the current 2010-11 salary schedule, with the final year of the originally bargained contract realized in 2012-13, including step movement and salaries. It provides PSERs clemency to staff that will be retiring next year, and maintains status quo on all other provisions of the collective bargaining agreement. . . . I estimate this proposal will generate over $2.5 million in savings for FY 2011-12. . . “

The T/E School District response of April 27, 2011 rejected the TEEA offer stating that their letter of April 6, 2011 called upon the unions to accept a

“. . . one-year pay increase waiver as their contribution to the shared sacrifice to support T/E students. After June 30, 2011, a waiver indicates that there will be no movement vertically or horizontally on the matrix for the 2011-12 school year. The settlement of the new bargaining agreement effective July 1, 2012 will direct the placement of staff on the salary matrix for future years. A one-year pay increase waiver would waive contract raises for the two unions’ employees for the 2011-12 school year and would result in a cost savings of approximately $3,000,000. . . “

Again, as I said more than a year ago, “rumor mills explode” and there is only one way to correct misinformation and that is with the facts.

The budget crisis facing the school district and our community should not be about ‘picking sides’ . . . it should be about providing transparency, factual information and letting the public draw their own conclusions.

A Sign of the Times . . . Corbett’s De-Funding Public Education Plays Out in Teacher Contracts, School Vouchers, Education Rallies . . . What is the Future of Public Education in Pennsylvania?

April 27, 2011

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Gov. Corbett’s plan to de-fund public education in Pennsylvania in his proposed $1.2 billion funding cuts is becoming the backdrop for school district budget discussion statewide. Corbett’s education-funding proposal has left many communities wondering how they are going to make up their budget deficits and are looking to the teachers and non-instructional workers for help.

This week in Unionville-Chadds Ford School District, the teacher contracts appear to have stalled with both sides remaining at odds. If you recall, the teachers have been working under the conditions of the old contract, which expired last summer. Unionville-Chadds Ford School District is struggling with their budget and how to handle the $1.1 million reduction in state spending contained in Corbett’s proposed budget. The non-instructional district support staff agreed to a salary freeze but at this time, the teachers have not.

In Tredyffrin-Easttown School District, the school board sent letters to Tredyffrin Easttown Education Association (TEEA) and Tredyffrin Easttown Non Instructional Group (TENIG) unions asking the members to consider a salary freeze for next year. Although I do not believe there has been an official response from either union, it is my understanding that TENIG will meet tomorrow (Thursday) for discussion and a vote on a salary freeze. TEEA members will hold further discussions next week but I do not know if salary freeze is part of the discussion.

In recent days, there have been many rallies around the state in support of public education. “Cut Corbett Not Schools” signs are seen all over Harrisburg – demanding that the legislature restore the $1.1 billion in education funding. There is a continued push by many to create a state-funded school voucher program (SB 1). Currently the proposed voucher legislation is stalled in the Senate; I think primarily due to the perceived cost of implementation. The heated discussion of a state-mandated school voucher program continues to widen the divide between the teacher unions and the school choice advocates, who believe that vouchers are the answer to failing public schools.

The bitter debate raging in the state over Corbett’s proposed public education budget cuts has taken a toll on his approval ratings. Less than four months in the governor’s mansion and today the Quinnipiac University polling is showing a big jump in disapproval for Corbett. The polling indicated that 52% of Pennsylvania voters disapprove of the way Corbett is handling the state budget and 64% oppose his budget cutting of state and state-related universities. (To read the April 27 Quinnipiac University poll, click here).

Aside from public approval ratings, what will Corbett’s proposed budget cuts mean for the future of public education? What lies ahead for school districts and our children across Pennsylvania . . . the elimination of art and music, language classes, increase in class sizes, scaling back full-time kindergarten to half-day, cuts to athletic programs? These are budget cuts that will require many school districts to impose higher property taxes, lay-off staff or impose pay-for-play requirements. Pennsylvania has become a battleground for public education funding . . . what does this say for the future of our children’s education?

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A reminder that tonight at 7 PM, State Senator Andy Dinniman will hold an education rally on the steps of the Chester County Courthouse (corner of High and Market Streets) in West Chester.

National Tea Party Review Magazine Hit the Newsstands in February – T/E School Board Member Dr. Richard Brake, a Featured Contributor

April 18, 2011

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Whether you lean to the left, to the right, or somewhere in between, there are periodicals dedicated to your political point of view . . . The New Republic, Harper’s, New Yorker plus countless others.

However, did you know that there is a magazine dedicated to the Tea Party movement, the Tea Party Review? Billing itself as the “first national magazine for, by and about the Tea Party Movement”, the new magazine had its debut in February of this year.

According to their website, the Tea Party Review provides a place “for Tea Parties to come together, to trade ideas, to resolve disputes . . . a place to develop plans for taking our country back from the elitist, arrogant, obnoxious, corrupt members of the Washington establishment and their friends in Hollywood, the news media, faculty lounges, and on Wall Street.” Those are some strong words from the Tea Party Review!

Although this new periodical hit the newsstands in February, I only discovered it today. Beyond my initial surprise that there was a magazine dedicated to Tea Partiers, I was further surprised to find that one of our T/E school board members, Dr. Richard Brake, was a featured contributor in the magazine, recently writing Negative Learning – Why Obama Needs the Youth Vote. http://www.teapartyreview.com/negative-learning-why-obama-needs-youth-vote

Further online research indicated that Brake has written extensively on the tea party movement. Here is a sampling of Brake’s prolific writing:

Militant Libertarian contains an article, Elected Officials Flunk Constitution Test written by Brake. The Militant Libertarian website claims to contain articles and information on “fighting back against the New World Order, the Banksters, the Police State, the System, or whatever label you’d like to give the screw job that is happening to our liberties.”
http://militantlibertarian.org/2011/01/16/elected-officials-flunk-constitution-quiz/

Listed as a featured columnist for the conservative news magazine, Townhall Conservative, a recent edition contains Brake’s article, George Washington and the Need for Enlightened Citizenship.
http://townhall.com/columnists/drrichardbrake/2011/02/22/george_washington_and_the_need_for_enlightened_citizenship

On the Capital News website, there is a post by Brake, which contains ” . . . I think it’s a great thing that Tea Party members are making it a priority to educate themselves. You can’t read the Constitution with all its ‘Congress shall nots…’ without coming to the conclusion that the Constitution limits government.” http://capoliticalnews.com/blog_post/show/7913

I discovered Brake was featured on Liberty Line Radio, which is hosted by Andrew Langer, an experienced DC politico and Tea Party Activist. Brake’s radio podcast featured his recent survey from the Intercollegiate Studies Institute (ISI), his employer.
http://libertylineradio.blogspot.com/2011/03/liberty-line-32211-rich-brake.html

Grant County Tea Party in Indiana hosted a conference a couple of weeks ago, Whose Capitalism, Which Free Market? The conference description was billed to ” . . . include remedies to today’s crony capitalism by exploring the moral dimensions of a truly free and prosperous market order”. This Tea Party conference at Taylor University in Indiana featured Brake as the guest speaker. http://www.wewantamericaback.net/site/?p=1719

There were many more links for Brake but I suspended my research after I was directed to the Chester County Patriots Tea Party website. Listed as a member of this tea party organization, Brake also appears to host an online blog for the Tea Partiers. The mission statement for the Tea Party organization states, “Chester County Patriots is a grassroots organization that promotes a return to limited government, personal responsibility, and upholding the U.S. Constitution. Our goal is to educate and motivate the public to embrace these founding conservative principles in order to maximize prosperity and freedoms for future generations. The Chester County Patriots will also encourage and support individuals with conservative principles to become more involved in local and federal government.”

ISI and Tea Party Patriots
Posted by Richard Brake
View Richard Brake’s blog

I’d like to introduce your group to my organization: the Intercollegiate Studies Institute www.isi.org Our mission is to educate for liberty – by transmitting to the next generation of Americans the political, economic, and moral principles that founded and continue to sustain our constitutional republic.

Clearly, your mission and ISI’s mission overlap – so we are now reaching out to grass-roots organizations like you to offer a helping hand of partnership.

And, as a resident of Chester County and local school board member, I am deeply interested in the same issues that motivate you and your membership.

I look forward to meeting you at an upcoming meeting.

Sincerely,
Rich Brake, Ph.D.

Besides discovering that Dr. Richard Brake, a political scientist, is also a prolific writer, it is fascinating to learn of Brake’s Tea Party connections.

Tea Partiers claim that they are a community committed to standing together, shoulder to shoulder, to protect our country and the Constitution. Recently, the country witnessed the battleground in Wisconsin as thousands of Tea Party activists rallied together in support of Wisconsin Gov. Scott Walker against organized labor.

The TESD School Board will begin teacher contract negotiations next year. Based on other school district – teacher union contract negotiation experiences; I suspect the process in T/E will also prove challenging. Considering Dr. Brake’s tea party membership and claim of support to the local Chester County Patriot tea party organization, can we assume that as a School Board member, he will not be directly involved in the teacher contract negotiations? Or . . . maybe there is no conflict for this Tea Party member.

I will reach out to Dr. Brake and see if he would like to offer a comment for Community Matters.

T/E School District Finance Meeting Updates . . . 2011-12 School District Budget Problem is the ‘Tip of the Iceberg’

April 12, 2011

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Last night was the Finance Committee meeting and continued the discussion from the Budget Workshop held last month. The administration and the school board members focused on the budget strategies available to fill the remaining $3.3 million shortfall.

If you recall, originally the remaining school district 2011-12 budget deficit was $2 million. However, because of Gov. Corbett’s proposed budget and cuts to public education, an additional $1.3 million in state funding was lost to the district and therefore was added back into the TESD budget shortfall.

How to fund the $3.3 million deficit was the focus of the Finance Committee meeting. Members of the Finance Committee support and encourage a pay waiver freeze for next year. Hoping for an understanding of shared sacrifice, the school board recently mailed letters to TEEA and TENIG unions seeking their support.

Outsourcing of custodial services remains an open issue for further discussion; it appears that the updated cost-savings on out-sourcing of those services is approximately $800K annually. There was discussion of pay-to-play or ‘activities fee’ to be charged to students playing sports. This would be a yearly fee for student athletics, regardless if they played 1 or more sports. If a $50 fee per student athlete is charged, the revenue generated is approximately $80K. In reviewing other area school districts, five districts in Chester County have some type of sports activities fee in place. How much is the school district budget for sports? $1.5 million annually; which breaks down to approximately $509 per student who plays sports (including club sports).

Here is an open question . . . does sports activities fee impact participation. The discussion of an activities fee for sports brought up an interesting discussion. Is it fair to only charge for sports, what about other extra-curricular activities, clubs, band, etc.? Some members of the Finance Committee suggested that the activities fee should be associated with those extra-curricular activities that required transportation.

Another way to generate revenue for the school district is advertising and members of the Finance Committee are investigating the concept of paid advertising on Teamer Field, as well as other locations. Two adverting companies that handle this type of school district advertising will make a presentation at the next school board meeting. Generated revenue from this type of advertising was estimated as $30K-95K. Advertising on the sports team shirts was also discussed, as well as school bus advertising. If the district decides to move forward with the adverting concept, there will need to be a policy change.

FLITE is working to raise $85K to fund the after-school homework club. The homework program is included in the 2011-12 budget but is on the list as a possible budget expense reduction. Another expense reduction item under consideration is transportation for some extra-curricular activities ($90K) and summer school ($40K).

Several parents spoke in support of maintaining the quality of education and programming in the district. Many suggested raising property taxes or instituting an EIT to cover the school district budget deficit. If instituted, an 1% EIT would generate approximately $17 million annually. With the township and school district equally sharing those funds, $8.5 million would go to each.

The argument by some in support of an EIT or property tax increase was that your property values are directly tied to the quality of the school district. Therefore, if you want to sustain your property values, you must support the quality of the school district.

What was clear from the Finance Committee meeting is that the administration and school board are running out of options! They encouraged those in the audience and watching from home to contact your state representatives and Harrisburg.

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Pattye Benson

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