From the Desk of the Superintendent
Interim Superintendent J. Brian Sarvis, Ed.D.
Wednesday, November 17, 2004
Report on Negotiations
Our staff is among the finest in the nation. Teachers, counselors, psychologists, nurses, as well as classified support workers and administrators, deserve higher salaries and need more to live in this community. I am pleased to announce that we have reached a tentative agreement with the California School Employees Association. It is a disappointment that negotiations with the Santa Barbara Teachers Association are not resolved because the teachers association and the board both agree that association members should earn more money. The board values their work and is working hard to provide a salary increase.
The district has offered the teachers association a 2.65% increase on the salary schedule salary plus an amount equivalent to .36% off-schedule (one-time) for a total increase of 3.01% over last year’s salaries. The reason for the off-schedule payment is that the state is allowing a one-time transfer of Peer Assistance and Review funds that will only be available this year. The association was in agreement regarding the off-schedule payment.
The teachers association is proposing a 3.75% increase on the salary schedule. The reasoning is straightforward: the district is receiving "new money" this year from the state, money that the district is spending on other priorities.
New Money
The district is receiving new money from the state, but due to historically low enrollment levels in the elementary district, the elementary budget cannot afford to pay any increase because enrollment drops significantly erode what new money is available. In fact, The "new money" provided by the state to the elementary district, after declining enrollment, amounts to just 1.5%. This new money has already been spent on other salary-related priorities. These priorities include:
- Automatic step and column salary increases have been provided to staff for working additional years and earning additional college units (an amount equivalent to a 1.3% salary increase that more than half of our staff received this year). This is our biggest "new expense" for 2004-05
- Additional medical benefit plan costs. During the summer, the district and the association already agreed that the district would pay the equivalent of a salary increase of .72% for additional medical benefit plan costs this year above the benefit cap agreed to in the contract.
The board believes these "other priorities" are appropriate and are a positive way to support our employees.
Negotiations in the Two-District System
We are the last district in the state to operate as two fiscally separate districts. Other districts in the state like ours have either unified or passed a resolution to operate as a single district. As two separate districts, any salary increase must be based on what each district can afford to pay and remain fiscally solvent. Neither district can offer more than the budget of the other district can afford yet staff in both districts are impacted since there is a single salary schedule for both districts. The secondary district budget is much healthier, while the elementary district budget continues to face severe budget constraints, thereby driving the negotiations process.
The simple reality is this: the board does not have money to pay for any raise in the elementary district unless it makes budget cuts. The board is willing to make the cuts necessary to pay for a raise because it values the association members and has been unwavering about this commitment. It is ironic that the board has been criticized for contemplating cuts by the very people demanding a raise.
Any salary increase offered and budget cuts must pencil-out over a three-year period. This is a statutory requirement. The district must certify that the raise will not push the budget into the red during those three years. Otherwise, the county education office may overturn the raise. At the end of school year 2003-04, the elementary district maintained an unrestricted general fund balance that was just above the legally required reserve.
In order to meet the required reserve again this year, and still give an on-going raise in compensation, we will have to make cuts particularly in the elementary school district budget. Because more than 85% of our expenditure budget is for staff salary and benefit costs, we will have to take a critical look at where and how we use our staff. Budget cuts made for the past two years have affected administrative positions, classified support positions, and programs such as the junior high seventh-period day. The cuts being considered this year may affect administrative positions, classified support positions, money for supplies that goes unspent each year, operating expenses such as renting space for the district office, and implementing a plan to provide library services for less money. The board is willing to consider these cuts only because of its clear priority for salary increases.
It should be noted that few districts similar to ours (e.g., funded by the revenue limit as opposed to basic aid districts) are offering a 2.65% salary increase, even as a total increase over the past two years. This is in spite of the fact that other districts have larger class sizes and have cut costs by shifting from credentialed elementary librarians to library technicians.
Work Slow Down
We are hearing talk of work slow downs by a few of our association members. A work slow down will only hurt students and will not achieve the desired effect. A salary increase depends on the board’s resolve to make budget cuts. Negotiations require collaboration. While the teachers association has the ability to offer additional cuts, it has declined to do so. The immediate effect of the association declaring impasse is to slow down the negotiation process.
In planning for today, we have to look ahead to tomorrow. Until our enrollments increase and the robustness of our state budget is restored, we must continue to work together to find viable solutions for the challenges that we face. Our staff deserves higher salaries and raises are a budget priority. I expect our negotiations with the teachers association to be resolved soon.