Presentation to:Presentation to:

Arizona Association of School Business OfficialsArizona Association of School Business Officials

Spring ConferenceSpring Conference

March 28, 2013

Brenda Thomas-Martinez, Business ManagerBlue Ridge Unified School District

Mike Aylstock, ConsultantAylstock Consulting, LLC

Copyright © 2013 by Aylstock Consulting, LLC

Alternative Salary StructureAlternative Salary Structure

History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:

““Boarding Round” Pay SystemBoarding Round” Pay System-Throughout country in 1800’s-Throughout country in 1800’s-Compensation mainly was room -Compensation mainly was room and board for teacher and board for teacher

-Strong incentive for teachers to maintain -Strong incentive for teachers to maintain positive relations with community positive relations with community members and maintain a high moral members and maintain a high moral character character

-Reflected the barter economy of the time-Reflected the barter economy of the time

March 28, 2013 2

History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:

Position-based Salary SystemPosition-based Salary System

-Began in the early 1900’s-Began in the early 1900’s

-Increased pre-service education -Increased pre-service education requirements requirements

-Paid elementary teachers less than -Paid elementary teachers less than secondary teachers secondary teachers

-Paid women and minorities less than -Paid women and minorities less than non-minority males non-minority males

-Reflected societal biases of the times-Reflected societal biases of the timesMarch 28, 2013 3

History of Teacher Pay in U.S.History of Teacher Pay in U.S. Three shifts in the way teachers have been paid:Three shifts in the way teachers have been paid:

Teacher Salary SchedulesTeacher Salary Schedules

-First implemented in late 1920’s-First implemented in late 1920’s

-Teachers paid based on increments and -Teachers paid based on increments and steps on a rigid salary schedule steps on a rigid salary schedule

-Years of experience in classroom-Years of experience in classroom

- Number of graduate credits - Number of graduate credits earned earned

-Paid same salary to teachers with same -Paid same salary to teachers with same qualifications regardless of grade level qualifications regardless of grade level taught, gender, or race taught, gender, or race

March 28, 2013 4

Old Traditional Salary ScheduleOld Traditional Salary Schedule

Experience

012345678910...

20

EducationBA BA+18 MA MA+18 MA+36

26,00026,75027,50028,25029,00029,750

26,75027,50028,25029,00029,75030,25031,00031,750

27,50028,25029,00029,75030,25031,00031,75032,50033,25034,00034,750

28,25029,00029,75030,25031,00031,75032,50033,25034,00034,75035,25036,00036,75037,500

29,00029,75030,25031,00031,75032,50033,25034,00034,75035,25036,00036,75037,500

.42,750$750 Per Year Experience – “Steps”

$750 Per 18 Grad Hr. – “Lanes”

5March 28, 2013

Pros and Cons of Salary SchedulesPros and Cons of Salary Schedules

ProsPros Easy to administer Easy to administer whenwhen

funds are availablefunds are available Predictable for staffPredictable for staff

-Can see where they -Can see where they “should” be at a given “should” be at a given time in their careertime in their career

-Years experience-Years experience

-Education gained-Education gained

ConsCons Inflexible to adjustInflexible to adjust Sets artificial expectationsSets artificial expectations Sets limits for veteran staffSets limits for veteran staff

-Columns top out-Columns top out

-Maximum education hours-Maximum education hours ““Steps” vs. raise debateSteps” vs. raise debate ““Across the Board” vs. Across the Board” vs.

percentage raisespercentage raises

Who benefits more?Who benefits more?

Young staff orYoung staff or

Veteran staffVeteran staffMarch 28, 2013 6

Sample of Recent Legislative Increases to EducationSample of Recent Legislative Increases to EducationFUNDING GNP-IPD DIFFERENCE COMPOUNDED

PER ADE LOSS

1991-92 1.00% 4.10% 3.10% 3.10%

1992-93 0.50% 3.60% 3.10% 6.30%

1993-94 0.00% 2.60% 2.60% 9.06%

1994-95 2.00% 2.60% 0.60% 9.71%

1995-96 1.00% 2.20% 1.20% 11.03%

1996-97 0.40% 2.40% 2.00% 13.25%

1997-98 1.90% 2.00% 0.10% 13.36%

1998-99 1.70% 1.90% 0.20% 13.59%

1999-00 1.80% 1.20% -0.60% 12.91%

2000-01 1.00% 1.40% 0.40% 13.36%

2001-02 2.50% 2.30% -0.20% 13.13%

2002-03 2.00% 2.10% 0.10% 13.25%

2003-04 2.00% 1.20% -0.80% 12.34%

2004-05 2.00% 1.80% -0.20% 12.12%

TOTAL 19.80% 31.40% 11.60%

The News Gets Even Worse…The News Gets Even Worse…

From Chuck Essigs, AASBO financial guru:According to state budget reports for 2007-08 school year, state funding to schools was $4,440 per student.For the 2011-12 school year, the estimate for state funding was $3,628 per student. This means that the amount of state funding per pupil has DECLINED by $812 per student or 18.3% since 2007-08.There is NO way to fund salary schedules with that level of reduced funding! Alternatives must be developed.

March 28, 2013 8

How Alternative Structure WorksHow Alternative Structure Works Contract/wage notice contains a salary amount onlyContract/wage notice contains a salary amount only

-Annual amount for certified staff-Annual amount for certified staff-Hourly rate for classified staff-Hourly rate for classified staff

Contract/wage notice adjusted annually by the BoardContract/wage notice adjusted annually by the Board-Across the board increases-Across the board increases-Percentage increases-Percentage increases-Combination of both-Combination of both-Or no increase may be given-Or no increase may be given

No steps or lanes listed on contractsNo steps or lanes listed on contracts No one is ever “frozen” at a step – they get a No one is ever “frozen” at a step – they get a “raise”“raise” Increases given for education growthIncreases given for education growth Lends itself to performance-based incentivesLends itself to performance-based incentivesMarch 28, 2013 9

Salary Increase Scenarios Salary Increase Scenarios Easy to calculate salary increase scenariosEasy to calculate salary increase scenarios

After available funds for raises determinedAfter available funds for raises determined Have total dollar amount of all contractsHave total dollar amount of all contracts

Determine total amount for each 1% increaseDetermine total amount for each 1% increase --For $10 million - $100,000 per 1% salary increaseFor $10 million - $100,000 per 1% salary increase

Have total amount of eligible employeesHave total amount of eligible employeesDetermine total amount per $100 increaseDetermine total amount per $100 increase -For 150 teachers - $15,000 per $100 salary -For 150 teachers - $15,000 per $100 salary

increaseincrease Can work with different combinationsCan work with different combinations Across the Board and percentage increases possibleAcross the Board and percentage increases possible Not restricted by “steps” of a traditional salary scheduleNot restricted by “steps” of a traditional salary schedule

March 28, 2013 10

Benefits to ProgramBenefits to Program Budgeting for the upcoming year simplifiedBudgeting for the upcoming year simplified

Easy to determine costs of raises compared to Easy to determine costs of raises compared to funds available for salary increasesfunds available for salary increases

-Across the board and/or percentage-Across the board and/or percentage Experienced staff never reach “top of the scale”Experienced staff never reach “top of the scale”

No penalty for longevity No penalty for longevity -Salaries not frozen … no artificial steps-Salaries not frozen … no artificial steps

No final column for education movesNo final column for education movesEncourages continuing educationEncourages continuing education

Flexibility in hiring new staff membersFlexibility in hiring new staff membersAdditional salary for unique qualificationsAdditional salary for unique qualificationsContinually add to entry level – stay competitiveContinually add to entry level – stay competitive

March 28, 2013 11

How to Initially Place StaffHow to Initially Place Staff Continuing StaffContinuing Staff

-Contract based on previous year’s salary with -Contract based on previous year’s salary with Governing Board approved salary adjustment Governing Board approved salary adjustment

-Contract dollar amount for certified-Contract dollar amount for certified-Hourly rate for classified staff-Hourly rate for classified staff

Newly Hired Certified StaffNewly Hired Certified Staff-Salary based on various factors locally controlled-Salary based on various factors locally controlled

-Experience, education, and unique -Experience, education, and unique qualifications qualifications

Newly Hired Classified StaffNewly Hired Classified Staff-Entry level rate based on classification of position-Entry level rate based on classification of position

March 28, 2013 12

District Discretion to Place New StaffDistrict Discretion to Place New Staff Teaching Experience AcceptedTeaching Experience Accepted

-Majority of districts give maximum of 5 years of -Majority of districts give maximum of 5 years of teaching experience teaching experience -Governing Board can elect to give more credit -Governing Board can elect to give more credit

as a as a means to recruit experienced teachers means to recruit experienced teachers Credit for Continuing EducationCredit for Continuing Education

-Hours beyond Bachelor’s Degree-Hours beyond Bachelor’s Degree-Unlimited graduate hours-Unlimited graduate hours-Must apply toward Master’s Degree-Must apply toward Master’s Degree

Unique QualificationsUnique Qualifications-Extra compensation for hard to find -Extra compensation for hard to find

certificationscertificationsMarch 28, 2013 13

Lake Havasu Unified School District #12012-13

Sample Official Salary Determination Chart Sample

Base Salary: $30,500 Increment: $750

2012-13 Salary Determination Chart To Determine Initial Placement

Cell Salary Cell Salary Chart 1 - Experience Value

1 30,500 21 45,500 Determine your experience as outlined:

2 31,250 22 46,2503 32,000 23 47,000 No Experience 0

4 32,750 24 47,750 1-10 Yrs Experience 1 per year

5 33,500 25 48,500 >10 Yrs Experience 10 + 1 per 2 yrs. over 10

6 34,250 26 49,2507 35,000 27 50,000 _____ Years Experience ------> ______ Points

8 35,750 28 50,750

9 36,500 29 51,500 Chart 2 - Education Value

10 37,250 30 52,25011 38,000 31 53,000 BA 0 BA+12 1

12 38,750 32 53,750 BA+24 2 BA+36 3

13 39,500 33 54,500 BA+48 4 MA 5

14 40,250 34 55,250 MA+12 6 MA+24 7

15 41,000 35 56,00016 41,750 36 56,750 Education ___________ -------> _______Points

17 42,500 37 57,500

18 43,250 38 58,250 Chart 3 - Unique Qualifications

19 44,000 39 59,00020 44,750 40 59,750 A point may be given by administration for each

unique qualification, certificate, endorsement, etc.

Performance Pay Program that will be used in the classroom. These will

vary based on the individual needs of the district.

Language can be placed here to provide

information about the school district's Qualification (s): _________ ----> _____Points

Performance Pay Program with respect

to school-wide and individual goals.

The candidate realizes and accepts the fact that this TOTAL POINTS: _____________

offer and the contract are not official until action

is taken by the Governing Board of INITIAL SALARY: _____________

the Lake Havasu Unified School District #1.

_________________________ ____________ ______________________________Administrator Date Teacher

2012-13 2012-13 “Change “Change

Model” for Model” for Lake HavasuLake Havasu

New Teacher with:

MA+12 education

Gifted endorsement

14 years experience

Initial Salary:$44,000

14 12

6

1

19

G/T

Future Year Adjustment ExamplesFuture Year Adjustment Examples For a teacher with 2012-13 salary - $40,000For a teacher with 2012-13 salary - $40,000 2013-14 salary adjustment options:2013-14 salary adjustment options:

Across the board increaseAcross the board increase $700 $ 40,700$700 $ 40,700-higher % increase for younger staff-higher % increase for younger staff

Percentage increase Percentage increase **** 2%2% $ 40,800 $ 40,800-more money for veteran staff members-more money for veteran staff members

Combination of both Combination of both **** $250 + 1%$250 + 1% $ 40,653 $ 40,653-benefits for both young and veteran staff-benefits for both young and veteran staff

Can also add to base salary without “step vs. raise” Can also add to base salary without “step vs. raise” debate. Helps with recruiting new staff membersdebate. Helps with recruiting new staff members

Education increments added to contract amountEducation increments added to contract amount **** - cannot be done with traditional salary schedule - cannot be done with traditional salary schedule

March 28, 2013 15

Language on Teacher ContractLanguage on Teacher Contract No mention of column or step on contractNo mention of column or step on contract Only annual salary is includedOnly annual salary is included

In consideration of services satisfactorily performed, the District agrees to pay you a salary of $44,000 for

184 working days

The contract has a highlighted box that includes The contract has a highlighted box that includes benefits paid on behalf of the employee by the benefits paid on behalf of the employee by the district – most have no idea of the amountdistrict – most have no idea of the amount

Health and life insurance premiums, district’s contribution to ASRS, Worker’s Compensation, Medicare and Social Security, …

March 28, 2013 16

Concept Applies to Support StaffConcept Applies to Support Staff Entry level hourly rates are determined for all positions Entry level hourly rates are determined for all positions

based on points derived from six criteriabased on points derived from six criteria Contracts written with only hourly rates and time Contracts written with only hourly rates and time

requirements (contract days and hours per day) of the requirements (contract days and hours per day) of the position – not based on a salary scheduleposition – not based on a salary schedule

Hourly rates adjusted each year by the Governing BoardHourly rates adjusted each year by the Governing Board

-Across the Board increase to the hourly rate-Across the Board increase to the hourly rate

-Percentage increase to the hourly rate-Percentage increase to the hourly rate

-Combination of both-Combination of both

-Or no increase may be given-Or no increase may be givenMarch 28, 2013 17

Classification of Support StaffClassification of Support Staff Points (1-5) awarded in 6 categories for classification of Points (1-5) awarded in 6 categories for classification of

the position:the position:1.1. Training level/education required for jobTraining level/education required for job2.2. Experience required for specific jobExperience required for specific job3.3. Amount of responsibility associated with jobAmount of responsibility associated with job

-Care of buildings and equipment-Care of buildings and equipment-Supervision of other employees-Supervision of other employees

4.4. Length of time needed to plan and carry out taskLength of time needed to plan and carry out task5.5. Amount of public contact employee hasAmount of public contact employee has6.6. Availability of applicants with desired skillsAvailability of applicants with desired skills

March 28, 2013 18

Training Level/Education RequiredTraining Level/Education Required

FactorFactor PointsPoints

No formal education or trainingNo formal education or training 1 1

High school diploma or equivalentHigh school diploma or equivalent 2 2

Post high school or training requiredPost high school or training required 3 3

Two years technical training or fiveTwo years technical training or five 4 4

years learning on the job requiredyears learning on the job required

College degree or equivalent requiredCollege degree or equivalent required 5 5

March 28, 2013 19

Experience LevelExperience Level

FactorFactor PointsPoints

No experienceNo experience 0 0

Less than one year of experienceLess than one year of experience 1 1

One or two years of experienceOne or two years of experience 2 2

More than two years of experienceMore than two years of experience 3 3

March 28, 2013 20

Responsibility LevelResponsibility Level FactorFactor PointsPoints

Performs as directed; responsible forPerforms as directed; responsible for 1 1own jobown job

Must use initiative and judgment in Must use initiative and judgment in 2 2in performing job; has responsibilityin performing job; has responsibilityfor some equipment, tools, or moneyfor some equipment, tools, or money

Direct activities of small group or hasDirect activities of small group or has 3 3responsibility for equipment and $$responsibility for equipment and $$

Responsible for several groups and/orResponsible for several groups and/or 4 4important department or divisionimportant department or division

March 28, 2013 21

Time Management LevelTime Management Level

FactorFactor PointsPoints

Routine work with little advancedRoutine work with little advanced 0 0

planningplanning

Must plan 2 to 12 weeks in advanceMust plan 2 to 12 weeks in advance 1 1

Must plan 3 to 6 months in advanceMust plan 3 to 6 months in advance 2 2

Must reduce to writing and plan asMust reduce to writing and plan as 3 3

much as 2 years in advancemuch as 2 years in advance

March 28, 2013 22

Public Contact LevelPublic Contact Level

FactorFactor PointsPoints

Completes work with little or noCompletes work with little or no 0 0

interaction with othersinteraction with others

Interacts daily with fellow workersInteracts daily with fellow workers 1 1

Interacts daily with fellow workers,Interacts daily with fellow workers, 2 2

general public, or studentsgeneral public, or students

Interacts daily with students, adults,Interacts daily with students, adults, 3 3

and fellow workersand fellow workers

March 28, 2013 23

Availability LevelAvailability Level FactorFactor PointsPoints

Some people apply at wages paidSome people apply at wages paid 1 1without an openingwithout an opening

Some apply when job and wagesSome apply when job and wages 2 2are advertisedare advertised

Few people apply when job andFew people apply when job and 3 3wages are advertisewages are advertise

Very few show interest or apply whenVery few show interest or apply when 4 4job and wages are advertisedjob and wages are advertised

Option to add to wages to attractOption to add to wages to attract 5-7 5-7qualified applicants and payqualified applicants and paycomparable wagescomparable wages 24

Support Staff Entry Level RateSupport Staff Entry Level Rate Based on total points for the Based on total points for the POSITIONPOSITION Entry level Entry level hourly rate assigned to each numberhourly rate assigned to each number

25

Points

Entry Level

Hourly Rate

1 7.65

2 8.06

3 8.47

4 8.89

5 9.31

6 9.73

7 10.15

8 10.60

9 11.05

10 11.50

11 11.95

12 12.40

13 12.85

14 13.30

15 13.75

16 14.20

Example of Position ClassificationExample of Position Classification

March 28, 2013 26

Job Title Training Experience

Responsibility

Time Management

Public Contact Availability

Total points

Custodian 1 1 2 0 1 2 7

Lead Custodian 1 1 3 0 2 2 9

Computer Technician 4 2 3 1 1 3 14

Bus Assistant 1 0 1 0 3 1 6

Bus Driver 1 1 3 0 3 3 11

Accounting Clerk-Payroll 2 3 3 2 3 3 16

Bookstore/Attendance Secretary 2 1 1 1 3 2 10

Instructional Assistant 1 0 1 0 2 1 5

Instructional Assistant-Special Ed. I 1 0 1 0 2 1 5

Instructional Assistant-Special Ed. II 1 0 2 0 2 1 6

Instructional Assistant-Special Helper 1 0 2 0 2 1 6

Library Clerk 2 0 1 0 2 2 7

Transitional Specialist 2 2 2 1 2 2 11

Yearly Adjustments to Hourly RatesYearly Adjustments to Hourly Rates

Support staff member with a $9.50 hourly rateSupport staff member with a $9.50 hourly rate Across the boardAcross the board

25 cents per hour increase25 cents per hour increase $9.75 per hour$9.75 per hour Percentage increasePercentage increase

3.5% increase to hourly rate3.5% increase to hourly rate $9.83 per hour$9.83 per hour Combination of bothCombination of both

2% plus 10 cents2% plus 10 cents $9.79 per hour$9.79 per hour

Any adjustment can be made to entry level amounts Any adjustment can be made to entry level amounts to stay competitive in recruitingto stay competitive in recruiting

March 28, 2013 27

Selling the ConceptSelling the ConceptCommunication is be the key! – Open and HonestCommunication is be the key! – Open and HonestConcept introduced to district employee groupsConcept introduced to district employee groupsIntroduce the concept to Governing Board in a work sessionIntroduce the concept to Governing Board in a work sessionOpenly discuss the pros and cons and implementation strategiesOpenly discuss the pros and cons and implementation strategies

-Be prepared for initial resistance to change-Be prepared for initial resistance to change-Present long range benefits to experienced and all staff-Present long range benefits to experienced and all staff-Half of any salary increase applied to Salary Determination -Half of any salary increase applied to Salary Determination

ChartChart for following year to help stay competitive in hiring new stafffor following year to help stay competitive in hiring new staff

Why restrict salary opportunities of veteran staff?Why restrict salary opportunities of veteran staff? -Topping out on traditional salary schedule and being frozen-Topping out on traditional salary schedule and being frozen -Desire for more education but no financial reward-Desire for more education but no financial reward

Concept endorsed by Administration, Education Association and Concept endorsed by Administration, Education Association and considered for adoption by the Governing Boardconsidered for adoption by the Governing Board

March 28, 2013 28

Questions?Questions? If you have any questions about the proposed If you have any questions about the proposed

Alternative Salary Structure model or would like Alternative Salary Structure model or would like additional information, please contact:additional information, please contact:

Mike Aylstock Brenda Thomas-MartinezMike Aylstock Brenda Thomas-Martinez

(928) 202-2124 (928) 368-6126(928) 202-2124 (928) 368-6126

mike.aylstock@gmail.com bthomas@brusd.k12.az.usmike.aylstock@gmail.com bthomas@brusd.k12.az.us

Copyright Copyright © 2013 by Aylstock Consulting , LLC 2013 by Aylstock Consulting , LLC

March 28, 2013 29

March 28, 2013 30