Education Partnership Chariho Contract Evaluation
WORKING DRAFT
Chariho Teachers Contract 09/01/2002 - 08/30/2006
Financial Profile
Prepared By:The Education Partnership June 2006
| TABLE OF CONTENTS | ||||||||||
| Page | ||||||||||
| I. | INTRODUCTION |
|
1 | |||||||
| A. | Work Group | |||||||||
| B. | Contract Effective Date | |||||||||
| C. | Union Bargaining Unit | |||||||||
| D. | # Employees Covered by Contract | |||||||||
| E. | Total Contract Costs | |||||||||
| II. | SALARY REVIEW |
|
2 | |||||||
| A. | Contract Base Salary History | |||||||||
| B. | Current Contract Salary Calculation Technique | |||||||||
| C. | Experience (STEP) Salary Raises and Costs | |||||||||
| D. | Educational Adjustments and Costs | |||||||||
| E. | 2005/2006 Teacher Experience and Educational Profile | |||||||||
| F. | Other Teacher Salary Adjustments | |||||||||
| G. | 2005/2006 Salary Summary | |||||||||
| III. | MEDICAL BENEFITS |
|
12 | |||||||
| A. | 2005/2006 Medical Rates | |||||||||
| B. | Medical Premium History | |||||||||
| C. | District Cost Contributions | |||||||||
| D. | Cost Structure Profile of 2005/2006 Medical Benefit Plans | |||||||||
| E. | Insurance Premium Buyback Program | |||||||||
| F. | Medical Cost Sharing Profile | |||||||||
| IV. | DENTAL BENEFITS |
|
15 | |||||||
| A. | Current Cost Structure | |||||||||
| B. | Cost Structure Profile of 2005/2006 Dental Plans | |||||||||
| C. | Insurance Buyback Program | |||||||||
| D. | Dental Cost Sharing Profile | |||||||||
| E. | Dental Plan Cost History | |||||||||
| V. | RETIREMENT BENEFITS |
|
17 | |||||||
| A. | Cost Structure | |||||||||
| B. | Retirement Incentive Programs | |||||||||
| C. | State Retirement Plan Features | |||||||||
| VI. | OTHER BENEFITS WITH COST CONSIDERATIONS |
|
20 | |||||||
| A. | Life Insurance | |||||||||
| B. | Sick Leave / Personal Days | |||||||||
| C. | Workers Compensation | |||||||||
| D. | Sabbatical Leave | |||||||||
| E. | Mentor Program | |||||||||
| F. | In-Service Facilitator Program | |||||||||
| G. | Mileage Reimbursement | |||||||||
| H. | Summary of Benefit Costs | |||||||||
| VII. | REQUIRED WORK TIME |
|
22 | |||||||
| A. | Maximum Number of Work Days per Year | |||||||||
| B. | Typical Work Day / Week (Hours) | |||||||||
| C. | Sick Leave / Personal Days | |||||||||
| D. | Number of Work Hours per Year | |||||||||
| E. | Compensation per Work Hour | |||||||||
| VIII. | FINANCIAL IMPROVEMENT OPPORTUNITIES…………………… 23 | |||||||||
| I. | INTRODUCTION | ||||||||||
| A. | Work Group - All certified teaching personal except per-diem teachers. | ||||||||||
| B. | Contract Effective Date | ||||||||||
| - | September 1, 2002 thru August 31, 2006 | ||||||||||
| C. | Union Bargaining Unit | ||||||||||
| - | National Education Association (NEA) of Chariho | ||||||||||
| D. | # Employees Covered by Contract | ||||||||||
| - | 352 Full-time Equivalent Employees | ||||||||||
| E. | Total Contract Costs | ||||||||||
| - | Total 2005/2006 cost of all salaries and benefits covered by this contract approximately $29,000,000 | ||||||||||
| - | The cost of this contract represents 63% of the total regional school costs ($46,381,400) | ||||||||||
| II. | SALARY REVIEW | ||||||||||
| A. | Contract Base Salary History | ||||||||||
| Contract Year | STEP | STEP 11 Teachers | Annual Inflation Rate | ||||||||
| 1 thru 10 Teachers | |||||||||||
| 96/97 | 0% | 2.9% | 2.2% | ||||||||
| 97/98 | 0% | 3.4% | 1.6% | ||||||||
| 98/99 | 0% | 3.3% | 2.3% | ||||||||
| 99/00 | 2.85% | 3.1% | 3.4% | ||||||||
| 00/01 | 2.85% | 3.4% | 2.7% | ||||||||
| 01/02 | 2.85% | 3.2% | 1.8% | ||||||||
| 02/03 | 6.95% | 4.0% | 2.2% | ||||||||
| 03/04 | 6.12% | 3.4% | 2.7% | ||||||||
| 04/05 | 9.80% | 2.6% | 3.6% | ||||||||
| 9 yr Totals | 35.63% | 33.4% | 25.3% | ||||||||
| 05/06 | 7.14% | 4.6% | NA | ||||||||
| * | Represents average Rate % for all STEPS 1 thru 10. | ||||||||||
| The salary increases during the current contract year (2005-2006) reflects the intent to have all Chariho steps at the state-wide averages for the 2005/2006 school year. | |||||||||||
| B. | Current Contract Salary Calculation Technique | ||||||||||
| - | The salary level for each STEP (1 thru 11) will be calculation each year on the first Monday in October. | ||||||||||
| - | STEPS 1 thru 11 will represent the statewide mean for all Rhode Island Teacher contracts settled as of October 1st. | ||||||||||
| Chariho 2005/2006 Teacher Salary Scale | |||||||||||
| Educational Classes | |||||||||||
| STEP | Experience | State Certificate | BA + 15 * | BA + 30* | BA + 36 Masters | Masters | CAGS | ||||
| + 30 | 2 Masters | ||||||||||
| 1 | Starting | 34,904 | 35,468 | 36,311 | 37,010 | 38,083 | 39,144 | ||||
| 2 | 1 Yr. Experience | 37,326 | 37,890 | 38,733 | 39,432 | 40,505 | 41,566 | ||||
| 3 | 2 Yr. Experience | 39,696 | 40,260 | 41,103 | 41,802 | 42,875 | 43,936 | ||||
| 4 | 3 Yr. Experience | 42,395 | 42,959 | 43,802 | 44,501 | 45,574 | 46,635 | ||||
| 5 | 4 Yr. Experience | 45,170 | 45,734 | 46,577 | 47,276 | 48,349 | 49,410 | ||||
| 6 | 5 Yr. Experience | 47,924 | 48,488 | 49,331 | 50,030 | 51,103 | 52,164 | ||||
| 7 | 6 Yr. Experience | 50,640 | 51,204 | 52,047 | 52,746 | 53,819 | 54,880 | ||||
| 8 | 7 Yr. Experience | 53,572 | 54,136 | 54,979 | 55,678 | 56,751 | 57,812 | ||||
| 9 | 8 Yr. Experience | 56,800 | 57,364 | 58,207 | 58,906 | 59,979 | 61,040 | ||||
| 10 | 9 Yr. Experience | 62,840 | 63,404 | 64,247 | 64,946 | 66,019 | 67,080 | ||||
| 11 | 10 Yr. Experience | 63,520 | 64,084 | 64,927 | 65,626 | 66,699 | 67,760 | ||||
| * Only Teachers hired before 07/01/1988 are eligible for these education adjustments. | |||||||||||
| C. | Experience (STEP) Salary Raises and Costs | ||||||||||
| In addition to the contract raises outlined in Section IIA, teachers who have less than 10 years of teaching experience also receive additional salary increases each year until they reach 10 years of experience. These additional (STEP) raises average $4,040 (10.7%) per year for the 10 years of STEP (experience) adjustments. | |||||||||||
| Example of Contract and STEP Raises for State Certified Teacher Starting in 1995: | |||||||||||
| School Year | Years of | Base | $ | % | |||||||
| Experience | Salary | Increase | Increase | ||||||||
| 95/96 | Starting Salary | $23,113 | - | - | |||||||
| 96/97 | 1 | $24,654 | $1,541 | 6.7% | |||||||
| 97/98 | 2 | $26,379 | $1,725 | 7.0% | |||||||
| 98/99 | 3 | $28,693 | $2,314 | 8.8% | |||||||
| 99/00 | 4 | $31,940 | $3,247 | 11.3% | |||||||
| 00/01 | 5 | $35,262 | $3,322 | 10.4% | |||||||
| 01/02 | 6 | $38,851 | $3,589 | 10.2% | |||||||
| 02/03 | 7 | $43,432 | $4,581 | 11.8% | |||||||
| 03/04 | 8 | $48,662 | $5,230 | 12.0% | |||||||
| 04/05 | 9 | $58,956 | $10,294 | 21.2% | |||||||
| 05/06 | 10 | $63,520 | $4,564 | 7.7% | |||||||
| Total Increase | $40,407 | 174.8% | |||||||||
| l | If a teacher started in 1995 with state certification (BA Degree), but no experience, that teacher would earn $63,520 this year, an increase of over $40,407 or 175% | ||||||||||
| l | Any teacher with less than 10 years of experience has and/or will receive a raise of between 6.7% and 21.2% per year until they have completed 10 years of service. | ||||||||||
| l | All teachers who have completed 10 years of experience make a minimum of $63,520 in the current school year. | ||||||||||
| l | The Chariho school system has 164 teachers (47% of total teaching staff) with less than 10 years of experience and who are receiving annual raises of between 6.7% and 21.2%. | ||||||||||
| Example of 10 Years of Contract Raises for a Teacher with at least | |||||||||||
| 10 Years of Experience (STEP 11) and State Certification (BA Degree): | |||||||||||
| School Year | Years of | Base | $ | % | |||||||
| Experience | Salary | Increase | Increase | ||||||||
| 95/96 | More than 10 Years | $45,503 | - | - | |||||||
| 96/97 | $46,823 | $1,320 | 2.9% | ||||||||
| 97/98 | $48,423 | $1,600 | 3.4% | ||||||||
| 98/99 | $50,000 | $1,577 | 3.3% | ||||||||
| 99/00 | $51,565 | $1,565 | 3.1% | ||||||||
| 00/01 | $53,305 | $1,740 | 3.4% | ||||||||
| 01/02 | $55,035 | $1,730 | 3.2% | ||||||||
| 02/03 | $57,236 | $2,201 | 4.0% | ||||||||
| 03/04 | $59,208 | $1,972 | 3.4% | ||||||||
| 04/05 | $60,722 | $1,514 | 2.6% | ||||||||
| 05/06 | $63,520 | $2,798 | 4.6% | ||||||||
| Total Increase | $18,017 | 39.6% | |||||||||
| l | All teachers who have completed 10 years of experience have received annual raises of at least 2.6% to 4.6% per year during the past 10 years. | ||||||||||
| l | Any teacher who completed 10 years of experience before the 1995/1996 school year had raises of at least 39.6% over the past 10 years. | ||||||||||
| l | The Chariho school system has 188 teachers (53% of total teaching staff) with more than 10 years of experience in 2005/2006. | ||||||||||
| D. | Educational Adjustments and Costs | ||||||||||
| In addition to the base contract salary increases and experience STEP increases, teachers can receive additional salary increases for advanced educational credits. | |||||||||||
| Additional Salary Adjustments for Advanced Education | |||||||||||
| (All STEPS 1 thru 11 Receive the Same $ Adjustment) | |||||||||||
| BA+15 * | BA+30 * | BA+36 | Masters | CAGS or | |||||||
| + Masters | +30 | 2 Masters | |||||||||
| 2005/2006 Rates | $564 | $1,407 | $2,106 | $3,179 | $4,240 | ||||||
| Only Teachers hired before 07/01/1988 are eligible for these education adjustments. | |||||||||||
| Current Salary Increases for Educational Credits | |||||||||||
| BA+36 or Masters | Masters+30 | CAGS or 2 Masters | |||||||||
| Salary Level | $ | % Raise | $ | % Raise | $ | % Raise | |||||
| STEP 1 | $2,106 | 6.0% | $3,179 | 9.1% | $4,240 | 12.1% | |||||
| STEP 11 | $2,106 | 3.3% | $3,179 | 5.0% | $4,240 | 6.7% | |||||
| l | Any teacher who qualifies for an educational credit increase will receive a minimum of $2,106 or 3.3% salary increase with a maximum of $4,240 or 12.1% increase for a Certification of Advanced Graduate Study (CAGS). | ||||||||||
| l | There are 333 (95% of total teachers) that are still eligible to earn additional educational salary increases. 19 Teachers currently receive the top educational adjustment of $4,240 for achieving their CAGS or obtaining 2 Masters. | ||||||||||
| 2005/2006 Teacher Educational Profile | |||||||||||
| Education | Number of | Additional | Total Cost | ||||||||
| Level | Teachers | Salary | |||||||||
| BA+15 | 3 | $564 | $1,692 | ||||||||
| BA+30 | 1 | $1,407 | $1,407 | ||||||||
| BA+36 or Masters | 194 | $2,106 | $408,564 | ||||||||
| Masters +30 | 30 | $3,179 | $95,370 | ||||||||
| GAGS or 2 Masters | 19 | $4,240 | $80,560 | ||||||||
| 247 | $587,593 | ||||||||||
| l | The total additional cost for educational salary adjustments is $587,593. | ||||||||||
| l | In 2005/2006, 247 teachers (70% of all teachers) received some level of additional educational salary pay. | ||||||||||
| l | A teacher starting in 1995 with no teaching experience and with state certification (BA Degree) at $23,113 could earn at least $67,760 after 10 years of experience and a CAGS. This represents an increase of $44,647 or 193% over the 10 year period. | ||||||||||
| l | 243 teachers (69% of all teachers) have a BA + 36 credits or their Masters or higher educational credits. | ||||||||||
| E. | 2005/2006 Teacher Experience and Educational Profile | ||||||||||
| STEP | Experience | State Certificate | BA+15 * | BA+30* | BA+36 or Masters | Masters | CAGS or | Total | |||
| + 30 | 2 Masters | ||||||||||
| 1 | Starting | 4 | - | - | 1 | - | 1 | 6 | |||
| 2 | 1 Year | 8 | - | - | 2 | - | - | 10 | |||
| 3 | 2 Years | 8 | - | - | 10 | - | - | 18 | |||
| 4 | 3 Years | 9 | - | - | 7 | - | - | 16 | |||
| 5 | 4 Years | 3 | - | - | 3 | - | - | 6 | |||
| 6 | 5 Years | 10 | - | - | 12 | 5 | 2 | 29 | |||
| 7 | 6 Years | 8 | - | - | 9 | 1 | 1 | 19 | |||
| 8 | 7 Years | 14 | - | - | 11 | 1 | - | 26 | |||
| 9 | 8 Years | 7 | - | - | 11 | 1 | 3 | 22 | |||
| 10 | 9 Years | 1 | - | - | 10 | - | 1 | 12 | |||
| 11 | 10 Years | 33 | 3 | 1 | 118 | 22 | 11 | 188 | |||
| Total | 105 | 3 | 1 | 194 | 30 | 19 | 352 | ||||
| * Only Teachers hired before 07/01/1988 are eligible for these education adjustments. | |||||||||||
| F. | Other Teacher Salary Adjustments | ||||||||||
| In addition to base contract salary increases, experience STEP increases, and advanced education increases, teachers can receive additional salary adjustments and/or stipends. | |||||||||||
| 1. | Additional Salary Adjustments for Longevity | ||||||||||
| Years | Years | Years | Years | ||||||||
| 11-14 | 15-19 | 20-24 | 25 or more | ||||||||
| 2005/2006 | $700 | $800 | $900 | $1,000 | |||||||
| Rates | |||||||||||
| l | 153 Teachers Receive Longevity Adjustments | ||||||||||
| 2005/2006 Total Cost | $128,300 | ||||||||||
| 2. | Additional Leadership Stipends | ||||||||||
| l | Deans $6,000 | ||||||||||
| l | Department Chairperson 10% of Salary | ||||||||||
| l | Curriculum Coordinators 5% of Salary | ||||||||||
| l | House Leaders 5% of Salary | ||||||||||
| l | 22 Teachers Receive between $2,500 and $7,109 each | ||||||||||
| 2005/2006 Total Cost: | $116,577 | ||||||||||
| 3. | In-Service Facilitator Program | ||||||||||
| Teachers may elect to participate in developing part of the in-service training program. | |||||||||||
| l | Rate $5,700 per Participant | ||||||||||
| Projected 2005/2006 - 16 Teachers Received a Total of: | $91,200 | ||||||||||
| 4. | Mentor Stipends | ||||||||||
| Mentors will be provided to teachers new to the Chariho School District. | |||||||||||
| l | Rate is $900 per Participant per Year. | ||||||||||
| 2005/2006 - 15 Teachers Received Stipends. Total Cost: | $11,350 | ||||||||||
| 5. | Extra-Curricular Activity Stipends | ||||||||||
| Paid for hours worked by teachers on extra-curricular student activities (i.e., yearbook, band, student council, clubs, etc.) | |||||||||||
| 2005/2006 - 28 Teachers Received Stipends. Total Cost: | $36,320 | ||||||||||
| 6. | Instructional Duty Stipends | ||||||||||
| Paid for hours worked by teachers on extended instructional programs. | |||||||||||
| (Extended School Day, Detention, Computer Lab, Audio Visual, etc.) | |||||||||||
| l | Hours are paid at $24 rate | ||||||||||
| 2005/2006 - 16 Teachers Received Stipends. Total Cost: | $49,012 | ||||||||||
| 7. | Athletic Stipends | ||||||||||
| 2005/2006 - 21 Teachers Who also Have Coaching | |||||||||||
| Responsibilities Received Stipends. Total Cost: | $57,810 | ||||||||||
| 8. | Extra Class Teacher Loads | ||||||||||
| Paid to Teachers that are required to teach extra class periods. | |||||||||||
| l | Elementary School Rate - $10 per student per day. | ||||||||||
| l | High School and Middle School Rate - $2 per student per day. | ||||||||||
| 2005/2006 - 4 Teachers Received Stipends. Total Cost: | $43,839 | ||||||||||
| 9. | Extra Work Day Pay | ||||||||||
| Primarily paid to Guidance Counselors for extra work days beyond the normal school year. | |||||||||||
| l | Rate is a Teacher's per diem rate based on their current salary. | ||||||||||
| 2005/2006 - 10 Teachers Received Stipends. Total Cost: | $33,646 | ||||||||||
| G. | 2005/2006 Salary Summary | ||||||||||
| Cost of Base Salaries for Current Experience Levels | $19,887,600 | ||||||||||
| Cost of Additional Education Credits | $587,600 | ||||||||||
| Cost of Other Teacher Salary Adjustments | $568,100 | ||||||||||
| $21,043,300 | |||||||||||
| Average Teachers Earnings | $59,800 | ||||||||||
| 2005/2006 Compensation Profile | |||||||||||
| Teachers | % of | ||||||||||
| Salary Level | # Teachers | Total Staff | |||||||||
| Over $80,000 | 5 | 19% | |||||||||
| $75,000-$80,000 | 8 | 31% | |||||||||
| $70,000-$75,000 | 41 | 158% | |||||||||
| $65,000-$70,000 | 114 | 438% | |||||||||
| $60,000-$65,000 | 45 | 173% | |||||||||
| $55,000-$60,000 | 30 | 115% | |||||||||
| $50,000-$55,000 | 43 | 165% | |||||||||
| $45,000-$50,000 | 16 | 62% | |||||||||
| $40,000-$45,000 | 26 | 100% | |||||||||
| Under $40,000 | 24 | 92% | |||||||||
| 352 | 1354% | ||||||||||
| III. | MEDICAL BENEFITS | ||||||||||
| A. | 2005/2006 Medical Rates | ||||||||||
| Blue Cross | Blue Cross | ||||||||||
| Classic Blue | Healthmate | ||||||||||
| Individual | $5,008 | $4,755 | |||||||||
| Family | $12,534 | $11,901 | |||||||||
| B. | Medical Premium History | ||||||||||
| FAMILY PLAN | |||||||||||
| Year | Classic Blue | $ | % | Health-mate | $ | % | |||||
| Change | Change | Change | Change | ||||||||
| 01/02 | $7,843 | - | - | $7,447 | - | - | |||||
| 02/03 | $8,628 | $785 | 10% | $8,192 | $745 | 10% | |||||
| 03/04 | $10,267 | $1,639 | 19% | $9,748 | $1,556 | 19% | |||||
| 04/'05 | $11,499 | $1,232 | 12% | $10,918 | $1,170 | 12% | |||||
| 05/06 | $12,534 | $1,035 | 9% | $11,901 | $983 | 9% | |||||
| 06/07 | $13,787 | $1,253 | 10% | $13,091 | $1,190 | 10% | |||||
| 5 Yr Chg | $5,944 | 76% | 5 Yr Chg | $5,644 | 76% | ||||||
| 01-06 | 01-06 | ||||||||||
| Avg Chg | 12.0% | Avg Chg | 12.0% | ||||||||
| Per Yr | Per Yr | ||||||||||
| C. | District Cost Contributions | ||||||||||
| l | For Teachers Hired Prior to 7/1/1996 the District pays 100% of Healthmate Plan Costs. | ||||||||||
| l | For Teachers Hired After 7/1/1996 the District pays 80% of the cost of Healthmate Plans plus and additional dollar level contribution. | ||||||||||
| Family | Individual | ||||||||||
| Year | District 80% | $ Add-On | Total Contributions | District 80% | $ Add-On | Total Contributions | |||||
| 02/03 | $6,554 | $400 | $6,954 | $2,618 | $260 | $2,878 | |||||
| 03/04 | $7,798 | $440 | $8,238 | $3,116 | $220 | $3,336 | |||||
| 04/'05 | $8,734 | $480 | $9,214 | $3,490 | $240 | $3,730 | |||||
| 05/06 | $9,521 | $520 | $10,041 | $3,804 | $260 | $4,064 | |||||
| l | District contributes approximately 85% of Healthmate Plan Costs for each teacher and 80% of Classic Blue Plan costs for Teachers hired after 7/1/1996. | ||||||||||
| D. | Cost Structure Profile of 2005/2006 Medical Benefit Plans | ||||||||||
| Teachers Hired Before 7/1/1996 | |||||||||||
| # | $ | ||||||||||
| Participants | Cost | ||||||||||
| a. | Healthmate (Individual) | 19 | $90,345 | ||||||||
| Healthmate (Family) | 111 | $1,321,011 | |||||||||
| b. | Classic Blue (Individual) | 3 | $15,024 | ||||||||
| Classic Blue (Family) | 11 | $137,874 | |||||||||
| Teacher Cost Sharing | - | ($7,720) | |||||||||
| c. | Insurance Buyback Program | 16 | $95,200 | ||||||||
| 160 | $1,651,734 | ||||||||||
| Teachers Hired After 7/1/1996 | |||||||||||
| # | $ | ||||||||||
| Participants | Cost | ||||||||||
| a. | Healthmate (Individual) | 42 | $199,710 | ||||||||
| Healthmate (Family) | 97 | $1,154,397 | |||||||||
| Teacher Cost Sharing | - | ($209,460) | |||||||||
| b. | Classic Blue (Individual) | 1 | $5,008 | ||||||||
| Classic Blue (Family) | 4 | $50,136 | |||||||||
| Teacher Cost Sharing | - | ($13,813) | |||||||||
| c. | Insurance Buyback Program | 51 | $242,778 | ||||||||
| 195 | $1,428,756 | ||||||||||
| Total Cost All Teachers | 355 | $3,080,490 | |||||||||
| E. | Insurance Premium Buyback Program | ||||||||||
| l | Teachers Hired Before 7/1/1996 | ||||||||||
| 50% of Healthmate Family Rate | $5,950 | ||||||||||
| Total # 2005/2005 Participants | 16 | ||||||||||
| 2005/2006 Total Cost: | $95,200 | ||||||||||
| l | Teachers Hired After 7/1/1996 | ||||||||||
| 50% of District's 80% of Healthmate | |||||||||||
| Family Plan Rebate Rate | $4,760 | ||||||||||
| Total # 2005/2005 Participants | 51 | ||||||||||
| 2005/2006 Total Cost: | $242,760 | ||||||||||
| l | Participants with a second family member as a school employee | ||||||||||
| # of Participants - 7 | |||||||||||
| Cost of family member buybacks - $37,213 | |||||||||||
| F. | Medical Cost Sharing Profile | ||||||||||
| Teachers Hired | Teachers Hired | ||||||||||
| Before 7/1/1996 | After 7/1/1996 | Total | |||||||||
| # Teachers | 160 | 195 | 355 | ||||||||
| Total Cost of Medical Benefits | $1,659,454 | $1,652,029 | $3,311,483 | ||||||||
| Teacher Cost Sharing $ | $7,720 | $223,273 | $230,993 | ||||||||
| Teacher Cost Sharing % | 0.50% | 13.50% | 6.98% | ||||||||
| IV. | DENTAL BENEFITS | ||||||||||
| A. | Current Cost Structure | ||||||||||
| l | 2006-2006 cost per plan: | Individual Plan | $353 | ||||||||
| Family Plan | $1,118 | ||||||||||
| l | For teachers hired before 7/1/1996 the District pays 100% of plan costs. | ||||||||||
| l | For teachers hired after 7/1/1996 the District pays 80% of the cost of each plan plus an additional dollar level contribution. | ||||||||||
| Family | Individual | ||||||||||
| District Cost 2005/2006 | 80% | $ Add-On | Total | 80% | $ Add-On | Total | |||||
| $894 | $54 | $948 | $282 | $20 | $302 | ||||||
| District contribution approximately 85% of the cost of the Dental Plans. | |||||||||||
| B. | Cost Structure Profile of 2005/2006 Dental Plans | ||||||||||
| l | Active Teachers Hired Before 7/1/1996 | ||||||||||
| # | $ | ||||||||||
| Participants | Cost | ||||||||||
| a. | Family Plans | 131 | $146,495 | ||||||||
| b. | Individual Plans | 18 | $6,347 | ||||||||
| c. | Insurance Buyback Program | 11 | $6,151 | ||||||||
| Sub-Total | 160 | $158,993 | |||||||||
| l | Active Teachers After 7/1/1996 | ||||||||||
| # | $ | ||||||||||
| Participants | Cost | ||||||||||
| a. | Family Plans | 107 | $119,626 | ||||||||
| b. | Individual Plans | 47 | $16,590 | ||||||||
| c. | Insurance Buyback Program | 41 | $18,340 | ||||||||
| Teacher Cost Sharing | - | ($27,243) | |||||||||
| Sub-Total | 195 | $127,313 | |||||||||
| Total Dental Plan Costs | 355 | $286,306 | |||||||||
| C. | Insurance Buyback Program | ||||||||||
| l | Rebate for teachers hired before 7/1/1996 is 50% of Plan Costs. | ||||||||||
| Rebate Rate | $559 | ||||||||||
| l | Rebate for teachers hired after 7/1/1996 is 50% of District 80% cost of plan. | ||||||||||
| Rebate Rate | $447 | ||||||||||
| l | Total # of 2005/2006 Participants | 52 | |||||||||
| Total cost of 2005/2006 Program: | $24,490 | ||||||||||
| l | Number of participants with a second family member as a second employee. | 6 | |||||||||
| l | Cost of family member buybacks | $2,956 | |||||||||
| D. | Dental Cost Sharing Profile | ||||||||||
| Teachers Hired | Teachers Hired | ||||||||||
| Before 7/1/1996 | After 7/1/1996 | Total | |||||||||
| # Teachers | 160 | 195 | 355 | ||||||||
| Total Cost of Dental Benefits | $158,993 | $154,556 | $313,549 | ||||||||
| Teacher Cost Sharing $ | - | $27,243 | $27,243 | ||||||||
| Teacher Cost Sharing % | 0.00% | 17.60% | 8.70% | ||||||||
| E. | Dental Plan Cost History | ||||||||||
| Year | Family Rates | % Increase | |||||||||
| 01/02 | $956 | - | |||||||||
| 02/03 | $975 | 2% | |||||||||
| 03/04 | $1,024 | 5% | |||||||||
| 04/'05 | $1,065 | 4% | |||||||||
| 05/06 | $1,118 | 5% | |||||||||
| Projected 06/07 | $1,176 | 5% | |||||||||
| V. | RETIREMENT BENEFITS | ||||||||||
| A. | Cost Structure | ||||||||||
| l | Teachers pay 9.5% of their salary into the state retirement fund. Their contribution has not changed for at least 10 years. | ||||||||||
| l | Teachers participate in Social Security Program. | ||||||||||
| 2005/2006 Total Cost: | $1,302,016 | ||||||||||
| l | School District pension contributions to state retirement fund. | ||||||||||
| 2005/2006 Rate - 9.72% of individual salary | |||||||||||
| 2005/2006 Costs: | $1,933,155 | ||||||||||
| (Note: The State Pension Board has advised the District that the 2006/2007 contribution rate will be 11.62%. This would represent a 19% increase in costs.) | |||||||||||
| l | State 5 Year Assessment History | ||||||||||
| Total | % Change | ||||||||||
| Year | % Rate | Cost | |||||||||
| 01/02 | 5.73% | $885,966 | - | ||||||||
| 02/03 | 6.93% | $1,139,039 | 29% | ||||||||
| 03/04 | 7.99% | $1,368,218 | 20% | ||||||||
| 04/05 | 8.72% | $1,602,422 | 17% | ||||||||
| 05/06 | 9.72% | $1,933,155 | 21% | ||||||||
| Projected 06/07 | 11.62% | $2,300,000 | 19% | ||||||||
| Projected 5 Yr Increase | $1,414,034 | 160% | |||||||||
| Average Increase per Year | $283,000 | 21.2% | |||||||||
| B. | Retirement Incentive Programs | ||||||||||
| 1. | Early Retirement Incentive Pay | ||||||||||
| (For those teachers who did not participate in the In-service Facilitator Plan.) | |||||||||||
| - | Must have age and years of service total at least 75. | ||||||||||
| - | Must have been at Chariho for at least 20 years of service. | ||||||||||
| - | Must be able to retire under the State Retirement Plan. | ||||||||||
| - | Payment Calculation: | ||||||||||
| 70 Minus age at retirement X $350 = Incentive Pay | |||||||||||
| - | Total # of 2005-2006 participants - 0 | ||||||||||
| - | Total 2005-2006 Costs - $0 | ||||||||||
| 2. | Sick Day Sell Back | ||||||||||
| - | Retiring Teachers can sell-back 1 day for every 3 days of unused accumulated sick days, using up to 75 accumulated sick days. | ||||||||||
| - | After 75 days they can sell back 1 day for every 10 days of the rest of their accumulated unused sick days. | ||||||||||
| - | Sell back rate is the teacher's per diem rate based on their current salary. Average 05/06 per day rate $359.00. | ||||||||||
| Cost History | |||||||||||
| Year | # Retirees | Sick Day Cost | |||||||||
| 02/03 | 19 | $188,620 | |||||||||
| 03/04 | 7 | $71,965 | |||||||||
| 04/'05 | 15 | $186,157 | |||||||||
| 05/06 | 10 | $112,223 | |||||||||
| Average Teacher Payment | $10,960 | ||||||||||
| Average Cost Per Year: | $140,000 | ||||||||||
| 3. | Medical Benefits | ||||||||||
| l | Retirees qualify for Medicare program at age 65 | ||||||||||
| 1.45% of Salary | |||||||||||
| 2005/2006 Medicare Cost: | $304,504 | ||||||||||
| l | Health Insurance Contribution | ||||||||||
| Teachers must retire within the first 3 years of their eligibility to collect retirement pay under the State Retirement System. | |||||||||||
| District will contribute per year until age 65 | |||||||||||
| $2,000 towards Family Plan | |||||||||||
| $850 towards Individual Plan | |||||||||||
| Total Participants 2005/2006 54 | |||||||||||
| Total Cost 2005/2006: | $82,950 | ||||||||||
| Total Cost History | |||||||||||
| 02/03 | $64,791 | ||||||||||
| 03/04 | $61,900 | ||||||||||
| 04/05 | $74,450 | ||||||||||
| 05/06 | $82,950 | ||||||||||
| 4 Year Average Cost | $71,000 | ||||||||||
| C. | State Retirement Plan Features | ||||||||||
| l | For Teachers with 10 years R.I. service as of 7/21/2005 | ||||||||||
| - | Can retire at any age with 28 years of service or age 60 with 10 years of service. | ||||||||||
| - | Retirement Pay | ||||||||||
| 28 years of service - 60% of 3 highest years | |||||||||||
| Additional service years - 3% through 34 years, 2% per year there after | |||||||||||
| - | Retirement Pay Cost of Living Adjustment (3% each year) starting in 3rd retirement year. | ||||||||||
| l | New Teachers and Teachers with Less than 10 Years of R.I. Service as of 7/21/2005 | ||||||||||
| - | Minimum age of 59 with 29 years of retirement service credit. | ||||||||||
| - | 53% of average salary of all years. | ||||||||||
| - | Early Retirement is allowed at age 55 with 20 years of service, but with a benefit reduction of 34.9%. | ||||||||||
| - | Retirement Pay Cost of Living Adjustment | ||||||||||
| Rate is the lesser of 3% or the Consumer Price Index for urban consumer states after the 3rd retirement year. | |||||||||||
| VI. | OTHER BENEFITS WITH COST CONSIDERATIONS | ||||||||||
| A. | Life Insurance | ||||||||||
| l | District provides Life Insurance of $40,000 | ||||||||||
| 2005/2006 Total Cost: | $40,840 | ||||||||||
| B. | Sick Leave / Personal Days | ||||||||||
| l | 15 sick days per year, unlimited accumulation. | ||||||||||
| l | 2 personal days per year, unused accumulated as sick days. | ||||||||||
| l | Substitute Teacher Costs | ||||||||||
| 02/03 | $551,454 | ||||||||||
| 03/04 | $594,276 | ||||||||||
| 04/'05 | $504,003 | ||||||||||
| 05/06 | $476,965 | ||||||||||
| 4 Year Average | $531,675 | ||||||||||
| C. | Workers Compensation | ||||||||||
| l | Individual premium is .0058 % of salary. | ||||||||||
| 2005/2006 Total Cost: | $79,551 | ||||||||||
| D. | Sabbatical Leave | ||||||||||
| 2005/2006 - 2 Teachers took Sabbatical Leave. Total Cost: | $31,480 | ||||||||||
| E. | Mentor Program | ||||||||||
| 2005/2006 - 15 Teachers Participated. Total Cost: | $11,350 | ||||||||||
| F. | In Service Facilitator Program | ||||||||||
| 2005/2006 - 16 Teachers Participated. Total Cost: | $91,200 | ||||||||||
| G. | Mileage Reimbursement | ||||||||||
| 2005/2006 Total Cost: | $8,500 | ||||||||||
| H. | Summary of Benefit Costs | ||||||||||
| Benefits $ | Benefits % | ||||||||||
| 1. | Medical Insurance | $2,742,500 | #DIV/0! | ||||||||
| 2. | Dental Insurance | $261,800 | #DIV/0! | ||||||||
| 3. | Pension Program | ||||||||||
| State Pension Contribution | $1,933,200 | #DIV/0! | |||||||||
| Social Security | $1,302,000 | #DIV/0! | |||||||||
| 4. | Insurance Buyback Programs | $362,500 | #DIV/0! | ||||||||
| (Medical and Dental) | |||||||||||
| 5. | Sick Day / Personal Day | $531,675 | #DIV/0! | ||||||||
| 6. | Medicare | $304,500 | #DIV/0! | ||||||||
| 7. | Early Retirement Program | $211,000 | #DIV/0! | ||||||||
| 8. | In Service Facilitator Program | $91,200 | #DIV/0! | ||||||||
| 9. | Workers Compensation | $79,600 | #DIV/0! | ||||||||
| 10. | Life Insurance | $40,800 | #DIV/0! | ||||||||
| 11. | Sabbatical Leave | $31,500 | #DIV/0! | ||||||||
| 12. | Mentor Program | $11,400 | #DIV/0! | ||||||||
| 13. | Mileage | $8,500 | #DIV/0! | ||||||||
| Total Benefits Cost | $7,912,175 | #DIV/0! | |||||||||
| l | Average benefit cost per Teacher - $22,475. | ||||||||||
| l | Total cost per Teacher (salary and benefits) - $82,275 | ||||||||||
| VII. | REQUIRED WORK TIME | ||||||||||
| A. | Maximum Number of Work Days Per Year | ||||||||||
| 180 | Teaching Days | ||||||||||
| 4 | Professional Development Days | ||||||||||
| 1 | Parent Conferences | ||||||||||
| 0.5 | Teacher Orientation | ||||||||||
| 185.5 | Total Contract Work Days | ||||||||||
| B. | Typical Work Day/Week (Hours) | ||||||||||
| l | Daily Work Hours | 6 Hrs 20 minutes | |||||||||
| Less: Lunch/Recess | (45) minutes | ||||||||||
| Work Hours per Day | 5 Hrs 35 minutes | ||||||||||
| Work Hours per Week | 27 Hrs 30 minutes | ||||||||||
| Class Preparation Time per Week | 3 Hours 25 minutes | ||||||||||
| Maximum Instruction Hours per Week | 24 Hours 25 minutes | ||||||||||
| Both Elementary and High School teacher work hours are 6 hours and 20 minutes with a break for lunch | |||||||||||
| l | Monthly Meetings | ||||||||||
| 3 per Month Maximum | |||||||||||
| 1 Hour Maximum Length | |||||||||||
| 30 Hours Maximum per Year | |||||||||||
| l | Extra Help Time (Middle and High School Teachers) | ||||||||||
| 40 Minutes after Students Day | |||||||||||
| 1 Day per Week | |||||||||||
| 26 Hours Maximum Required per Year | |||||||||||
| C. | Sick Leave / Personal Days | ||||||||||
| l | 15 days per school year, unlimited accumulation of unused sick days | ||||||||||
| l | 2 personal days per school year, any unused to accumulate as unused sick days. | ||||||||||
| D. | Number of Work Hours Per Year | ||||||||||
| 1,092 Regular hours (5 Hrs, 35 minutes X 185.5 work days, plus meetings, extra help time) | |||||||||||
| 997 Required work hours per year (Regular Hrs less sick/personal days) | |||||||||||
| E. | Compensation Per Work Hour | ||||||||||
| l | Average Teacher Base Salaries | $58,170 | |||||||||
| l | Regular Work Hours per Year | 1,092 | |||||||||
| l | Average Salary per Regular Hour | $53.27 | |||||||||
| l | Average Benefit Costs (38.6%) | $22.52 | |||||||||
| Average Total Compensation per Hour | $75.79 | ||||||||||
| Chariho Teachers Contract | |||||||||||
| Financial Improvement Opportunities | |||||||||||
| 1. | Negotiate Contract Raises / Move From State Mean Calculation | ||||||||||
| l | Each 1/4% Raise = $60,000 Cost Increase (4% Raise = $1,000,000 Cost Increase) | ||||||||||
| l | Current practice lessens management control and does not consider total compensation package of Chariho or other districts | ||||||||||
| l | Established Salary Structure for STEP and Educational Raises can increase cost over $500,000 each year. | ||||||||||
| 2. | Eliminate Participation in Social Security Program | ||||||||||
| l | State Retirement Plans are Excellent | ||||||||||
| l | Adds $1,300,000 in Cost | ||||||||||
| l | Benefit not provided by most School Districts | ||||||||||
| l | Research SS section 218(g) | n 218(g) | |||||||||
| 3. | Focus Efforts on Changing State Pension Plan | ||||||||||
| l | Teachers contribution percentage has not changed for at least 10 years | ||||||||||
| l | 2006/2007 cost will be over $2,000,000 | ||||||||||
| l | 20% annual cost growth ($400,000 - $500,000 annually) | ||||||||||
| l | Plan is generous and not financially sound | ||||||||||
| l | Inequitable cost sharing by School Districts | ||||||||||
| 4. | Medical Benefits | ||||||||||
| l | Look to add Medical and Dental premium cost sharing for Teachers hired before 7/1/1996. | ||||||||||
| 10% cost sharing = $150,000 savings | |||||||||||
| l | Reduce/Eliminate Insurance Buyback Program | ||||||||||
| 2005/2006 Cost: $362,000 | |||||||||||
| l | 12% Annual Cost Growth ($350,000 - $400,000 annually) | ||||||||||
| l | Eliminate Classic coverage/research cost difference of Healthmate | ||||||||||
| 5. | Reduce Retirement Sick Day Sell Back Benefit | ||||||||||
| l | 17 Sick Days and Personal Days per year is excessive and represents 9% of available work days | ||||||||||
| l | Having unlimited accumulation of unused sick days is excessive | ||||||||||
| l | Average cost per year: $140,000 | ||||||||||
| l | Reduce payout rate for each sick day from Teacher's last year per diem rate of $359 | ||||||||||
| 6. | Review In-Service Facilitator Program | ||||||||||
| l | High rate of compensation ($5,700 per participant) | ||||||||||
| l | Total 2005/2006 cost: $91,200 | ||||||||||
| l | Becomes part of pension calculation | ||||||||||
| 7. | Reduce Class Size Overload Payments | ||||||||||
| l | 2005/2006 cost: $43,839 | ||||||||||
| 8 . | Reduce Longevity Adjustments | ||||||||||
| l | 2005/2006 cost: $128,300 | ||||||||||
| These 8 financial improvement opportunities cover $5,000,000 in current contract costs. | |||||||||||