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June	
  12,	
  2012	
  

Brenda,	
  

Here	
  is	
  some	
  specific	
  feedback	
  from	
  the	
  Board	
  of	
  Education	
  and	
  some	
  challenges	
  that	
  need	
  to	
  be	
  
addressed,	
  in	
  no	
  particular	
  order.	
  	
  Please	
  note	
  that	
  these	
  are	
  their	
  highest	
  priority	
  items.	
  	
  

Using	
  Pay	
  for	
  Performance	
  dollars	
  for	
  a	
  raise,	
  ongoing	
  or	
  one-­‐time,	
  is	
  a	
  problem.	
  	
  It	
  depletes	
  the	
  pool	
  
of	
  $4.2M	
  dollars	
  by	
  approximately	
  half,	
  greatly	
  minimizing	
  our	
  ability	
  to	
  make	
  progress	
  towards	
  the	
  
Strategic	
  Plan	
  goals.	
  	
  	
  

From	
  our	
  original	
  proposal	
  on	
  April	
  11:	
  

Reengage	
  pay	
  for	
  performance	
  –	
  use	
  money	
  to	
  pay	
  great	
  employees	
  to	
  build	
  out	
  the	
  system	
  in	
  FY	
  2013.	
  
Start	
  pilot	
  with	
  limited	
  group	
  of	
  new	
  hires	
  in	
  FY	
  2013.	
  	
  Pay	
  employees	
  for	
  professional	
  development	
  
associated	
  with	
  strategic	
  plan	
  and	
  pay	
  for	
  performance.	
  	
  Transition	
  the	
  money	
  to	
  full	
  pay	
  for	
  
performance	
  –	
  phase	
  in.	
  

We	
  want	
  to	
  reengage	
  P4P,	
  in	
  the	
  form	
  of	
  funding	
  National	
  Board	
  Certified	
  Teacher,	
  Master	
  Teacher,	
  Site	
  
Based	
  Responsibility,	
  Skills	
  Blocks/Personal	
  Learning	
  (Growth	
  and	
  Development)	
  Stipends	
  and	
  District	
  
Responsibility.	
  	
  With	
  the	
  suspension	
  of	
  Outstanding	
  Teacher	
  and	
  the	
  Group	
  Incentive,	
  we	
  will	
  have	
  the	
  
flexibility	
  to	
  fund	
  additional	
  learning	
  opportunities	
  for	
  staff	
  and/or	
  a	
  limited	
  pilot	
  of	
  the	
  Pay	
  for	
  
Performance	
  plan	
  we	
  are	
  developing	
  through	
  the	
  collaborative	
  work	
  around	
  Career	
  Ladders	
  and	
  the	
  
other	
  associated	
  pieces.	
  

Dues	
  Collection	
  

DCFT	
  tentatively	
  agreed	
  on	
  the	
  issue	
  of	
  dues	
  collection.	
  	
  In	
  fact,	
  we	
  understand	
  that	
  you	
  already	
  have	
  a	
  
process	
  underway	
  to	
  collect	
  outside	
  of	
  a	
  District	
  payroll	
  deduction.	
  	
  However,	
  the	
  statement	
  that	
  the	
  
DCFT	
  wants	
  to	
  “reserve	
  the	
  right	
  to	
  take	
  legal	
  action	
  outside	
  of	
  this	
  if	
  we	
  so	
  feel	
  necessary”	
  is	
  
troublesome.	
  (Session	
  5	
  audio	
  on	
  June	
  8,	
  2012	
  at	
  approximately	
  45:00)	
  	
  DCFT’s	
  statement,	
  when	
  asked	
  
about	
  the	
  dues	
  collection	
  in	
  the	
  recent	
  article	
  in	
  the	
  Colorado	
  News	
  Press,	
  was	
  	
  “Though	
  the	
  Union	
  
conceded,	
  Smith	
  said	
  it	
  retains	
  the	
  right	
  to	
  take	
  legal	
  action	
  on	
  the	
  issue	
  of	
  dues	
  deduction…”	
  (Colorado	
  
News	
  Press	
  June	
  8,	
  2012)	
  	
  These	
  statements	
  about	
  taking	
  legal	
  action	
  on	
  contract	
  items	
  to	
  which	
  DCFT	
  
has	
  “agreed”	
  indicate	
  that	
  there	
  really	
  is	
  no	
  agreement	
  on	
  these	
  items.	
  

Exclusivity	
  is	
  “non-­‐negotiable”	
  

As	
  discussed,	
  we	
  want	
  to	
  change	
  the	
  language	
  on	
  page	
  3	
  of	
  the	
  current	
  CBA	
  to:	
  

II.	
       RECOGNITION	
  
            A.	
   The	
   Board	
   recognizes	
   the	
   Union	
   as	
   the	
   exclusive	
   a	
   bargaining	
   agent	
   for	
   the	
   unit	
   of	
  
                   teachers	
   its	
   members	
   as	
   herein	
   above	
   defined,	
   for	
   the	
   purpose	
   of	
   bargaining	
   on	
   the	
  
                   following:	
  
	
  

On	
  Friday,	
  DCFT	
  stated	
  “this	
  part	
  is	
  non-­‐negotiable”	
  in	
  reference	
  to	
  the	
  above	
  recommended	
  change.	
  	
  
Furthermore,	
  DCFT	
  stated	
  that	
  “we	
  as	
  an	
  organization	
  will	
  not	
  negotiate	
  ourselves	
  out	
  of	
  a	
  contract”.	
  
(Session	
  1	
  Audio	
  on	
  June	
  8,	
  2012	
  at	
  approximately	
  11:20	
  –	
  12:10)	
  
To	
  be	
  clear,	
  we	
  are	
  asking	
  for	
  choice	
  for	
  our	
  teachers…you	
  are	
  asking	
  for	
  a	
  monopoly.	
  	
  When	
  asked	
  
about	
  other	
  collective	
  bargaining	
  agents,	
  you	
  stated	
  “No	
  language	
  needed.	
  	
  In	
  accordance	
  with	
  Federal	
  
law,	
  teachers	
  choose	
  their	
  own	
  collective	
  bargaining	
  agent.”	
  (DCFT	
  Bargaining	
  Offer	
  –A	
  Summary	
  of	
  
Negotiations	
  on	
  May	
  9)	
  	
  	
  

It	
  is	
  counter-­‐intuitive	
  that	
  as	
  a	
  teacher	
  I	
  have	
  a	
  right	
  to	
  choose	
  my	
  own	
  collective	
  bargaining	
  agent,	
  but	
  
as	
  an	
  organization	
  we	
  only	
  recognize	
  one	
  organization	
  as	
  the	
  “exclusive”	
  bargaining	
  agent.	
  	
  We	
  are	
  
asking	
  for	
  flexibility	
  and	
  choice	
  for	
  all	
  employees.	
  

No	
  Disruption	
  to	
  the	
  educational	
  environment	
  –	
  the	
  Union	
  will	
  not	
  spread	
  misinformation	
  about	
  
Board,	
  Superintendent,	
  District	
  Leadership,	
  or	
  other	
  District	
  matters.	
  

Recent	
  evidence	
  suggests	
  there	
  is	
  an	
  apparent	
  disconnect	
  between	
  “what	
  you	
  say”	
  and	
  “what	
  you	
  do”	
  
regarding	
  your	
  commitment	
  to	
  the	
  repair	
  and	
  improvement	
  of	
  the	
  climate	
  and	
  culture	
  of	
  our	
  District.	
  	
  
The	
  language	
  that	
  has	
  been	
  proposed	
  by	
  the	
  DCFT	
  as	
  an	
  addition	
  to	
  the	
  CBA	
  is	
  a	
  good	
  start:	
  

Q.	
  WORKING	
  CONDITIONS.	
  	
  The	
  DCSD	
  and	
  DCFT	
  understand	
  that	
  positive	
  working	
  conditions	
  are	
  
important	
  for	
  both	
  teachers	
  and	
  their	
  students.	
  	
  To	
  help	
  foster	
  a	
  work	
  environment	
  conducive	
  to	
  student	
  
learning,	
  both	
  parties	
  agree	
  to	
  work	
  on	
  the	
  following:	
  	
  

           Improve	
  the	
  culture	
  and	
  climate	
  of	
  DCSD	
  by	
  collaborating	
  to	
  determine	
  appropriate	
  standards	
  
            for	
  working	
  conditions.	
  	
  	
  
           Improve	
  communication	
  and	
  distribute	
  accurate	
  information	
  within	
  the	
  District	
  and	
  between	
  the	
  
            District	
  and	
  the	
  DCFT.	
  	
  	
  
           Review	
  and	
  find	
  ways	
  to	
  reduce	
  class	
  loads	
  and	
  case	
  loads	
  in	
  order	
  to	
  improve	
  certified	
  employee	
  
            and	
  student	
  contact	
  ratios,	
  which	
  improve	
  student	
  learning	
  and	
  outcomes.	
  	
  
           Review	
  ways	
  for	
  certified	
  employees	
  to	
  be	
  more	
  involved	
  in	
  decision	
  making	
  at	
  sites	
  and	
  across	
  
            the	
  District.	
  
	
  
However,	
  since	
  the	
  time	
  this	
  was	
  first	
  brought	
  up	
  as	
  an	
  issue	
  for	
  Negotiations,	
  there	
  have	
  been	
  several	
  
instances	
  that	
  have	
  been	
  counter	
  productive.	
  	
  Most	
  recently	
  the	
  “door	
  hangers”	
  distributed	
  in	
  the	
  
community	
  regarding	
  budget	
  twisted	
  facts	
  and	
  the	
  threat	
  to	
  perpetuate	
  misinformation	
  at	
  a	
  recent	
  
Open	
  Negotiations	
  session	
  from	
  one	
  of	
  your	
  team	
  members	
  to	
  one	
  of	
  mine…to	
  paraphrase	
  “I	
  think	
  I	
  will	
  
send	
  that	
  article	
  out	
  to	
  all	
  teachers,	
  what	
  do	
  you	
  think	
  of	
  that?”	
  
	
  
At	
  the	
  April	
  11	
  Open	
  Negotiations	
  meeting,	
  the	
  following	
  was	
  shared	
  verbally	
  and	
  in	
  a	
  PowerPoint:	
  
	
  

District	
  Proposes	
  a	
  Healthier	
  Culture	
  and	
  Climate	
  to	
  Improve	
  Morale	
  (Quality	
  of	
  Life)	
  

Commitment	
  to	
  the	
  attributes	
  of	
  healthy	
  organizations:	
  
     • Expectation	
  of	
  positive,	
  accurate	
  communication	
  to	
  schools	
  and	
  community	
  
     • Protect	
  the	
  educational	
  environment	
  
     • Commitment	
  to	
  freedom	
  and	
  choice	
  for	
  employees	
  
	
  

We	
  are	
  committed	
  to	
  the	
  above	
  statements,	
  as	
  we	
  know	
  they	
  are	
  very	
  important	
  for	
  our	
  staff	
  and	
  
students.	
  	
  If	
  you	
  agree,	
  please	
  provide	
  specific	
  examples	
  of	
  the	
  actions	
  you	
  will	
  take	
  to	
  ensure	
  it.	
  
A	
  3%	
  raise	
  (1%	
  one-­‐time	
  stipend	
  and	
  2%	
  ongoing	
  from	
  other	
  sources)	
  puts	
  the	
  District	
  in	
  an	
  
unsustainable	
  financial	
  position.	
  	
  

As	
  was	
  shared	
  at	
  Negotiations,	
  the	
  1%	
  retention	
  stipend	
  (one-­‐time	
  dollars)	
  is	
  funded	
  in	
  our	
  budget	
  
proposal.	
  	
  We	
  realized	
  $6M	
  dollars	
  of	
  cost	
  of	
  business	
  savings	
  this	
  year,	
  and	
  would	
  like	
  to	
  use	
  $2.8M	
  to	
  
fund	
  the	
  retention	
  stipend	
  for	
  all	
  employees.	
  	
  There	
  are	
  “no	
  strings”	
  attached	
  to	
  this	
  retention	
  stipend	
  
except	
  for	
  returning	
  contracts	
  by	
  the	
  June	
  15,	
  2012	
  deadline.	
  	
  In	
  addition	
  we	
  have	
  committed	
  the	
  
remaining	
  $3.2M	
  in	
  the	
  form	
  of	
  $50.00	
  per	
  student	
  back	
  to	
  our	
  schools.	
  	
  The	
  $6M	
  dollar	
  savings	
  will	
  be	
  
ongoing	
  in	
  future	
  budgets,	
  and,	
  as	
  you	
  know	
  we	
  have	
  used	
  the	
  recurring	
  $6M	
  to	
  reduce	
  the	
  reoccurring	
  
budget	
  by	
  $18.1M,	
  so	
  that	
  we	
  can	
  recommend	
  a	
  balanced	
  budget	
  for	
  FY	
  2013	
  -­‐	
  one	
  that	
  does	
  not	
  rely	
  
on	
  one-­‐time	
  money	
  for	
  on-­‐going	
  costs.	
  	
  

As	
  previously	
  outlined,	
  the	
  District	
  proposed	
  1%	
  ongoing	
  pay	
  increase	
  may	
  be	
  accomplished	
  by:	
  

      •        Phase	
  Out	
  of	
  Longevity	
  
      •        Phase	
  Out	
  of	
  Extended	
  Service	
  Severance	
  
      •        Phase	
  out	
  of	
  KLA	
  (Certified	
  Only)	
  
               	
  
At	
  this	
  time,	
  based	
  on	
  your	
  proposal	
  last	
  Friday,	
  you	
  have	
  identified	
  very	
  limited	
  savings	
  toward	
  the	
  $2M	
  
certified	
  only	
  cost	
  to	
  fund	
  a	
  1%	
  raise.	
  	
  	
  In	
  addition,	
  you	
  have	
  added	
  another	
  1%	
  on	
  top	
  of	
  the	
  District’s	
  
proposal	
  offering	
  a	
  questionable	
  $1	
  M	
  to	
  $1.4	
  M	
  of	
  savings	
  from	
  those	
  long	
  term	
  employees	
  who	
  
willingly	
  forgo	
  the	
  extended	
  severance	
  assuming	
  they	
  will	
  receive	
  the	
  2%	
  ongoing	
  pay	
  increase.	
  	
  For	
  
certified	
  only,	
  each	
  1%	
  pay	
  increase	
  has	
  a	
  value	
  of	
  $2	
  M.	
  

Each	
  year,	
  somewhere	
  between	
  50	
  and	
  100	
  teachers	
  retire	
  at	
  an	
  average	
  cost	
  of	
  about	
  $2	
  million	
  each	
  
year.	
  	
  Assuming	
  this	
  trend	
  continues	
  at	
  the	
  end	
  of	
  FY	
  2013,	
  it	
  is	
  extremely	
  unlikely	
  that	
  anyone	
  planning	
  
to	
  retire	
  at	
  the	
  end	
  of	
  this	
  fiscal	
  year	
  would	
  choose	
  the	
  2%	
  raise	
  over	
  the	
  severance.	
  	
  The	
  average	
  value	
  
of	
  the	
  severance	
  is	
  over	
  $38,000	
  for	
  each	
  employee.	
  	
  We	
  would	
  not	
  see	
  any	
  savings	
  in	
  this	
  line	
  for	
  at	
  
least	
  the	
  next	
  3	
  years	
  putting	
  at	
  risk	
  our	
  financial	
  stability.	
  	
  	
  	
  More	
  specifically,	
  this	
  would	
  require	
  the	
  
district	
  to	
  commit	
  to	
  and	
  recommend	
  deficit	
  spending	
  until	
  we	
  either	
  secure	
  a	
  new	
  revenue	
  source	
  
and/or	
  cut	
  our	
  schools	
  to	
  fund	
  the	
  increase	
  –	
  exactly	
  what	
  happened	
  in	
  FY	
  2009	
  after	
  the	
  District	
  agreed	
  
to	
  a	
  2.7%	
  pay	
  increase.	
  	
  	
  	
  We	
  must	
  plan	
  ongoing	
  budgets	
  that	
  allow	
  us	
  to	
  live	
  within	
  our	
  means.	
  	
  We	
  are	
  
committed	
  to	
  finding	
  a	
  way	
  to	
  propose	
  a	
  1%	
  on-­‐going	
  pay	
  increase	
  for	
  all	
  staff,	
  so	
  we	
  need	
  to	
  work	
  out	
  
the	
  logistics	
  within	
  the	
  three	
  variables	
  mentioned	
  above	
  to	
  get	
  there.	
  

In	
  closing,	
  should	
  you	
  be	
  interested	
  in	
  improving	
  this	
  potential	
  CBA	
  package	
  for	
  the	
  BOE	
  to	
  consider,	
  I	
  
can	
  be	
  available	
  to	
  discuss	
  it	
  the	
  week	
  of	
  June	
  25-­‐28.	
  	
  I	
  would	
  be	
  interested	
  in	
  a	
  topic-­‐specific	
  session	
  to	
  
improve	
  our	
  current	
  package…	
  focusing	
  on	
  the	
  above-­‐mentioned	
  areas.	
  	
  I	
  am	
  thinking	
  that	
  2-­‐3	
  hours	
  
with	
  extensive	
  front-­‐loading	
  of	
  specific	
  proposals	
  and	
  a	
  commitment	
  from	
  all	
  to	
  stay	
  on	
  task	
  would	
  be	
  
necessary.	
  

In	
  the	
  meantime,	
  the	
  Board	
  of	
  Education	
  shared	
  that	
  “Open	
  Negotiations”	
  can	
  also	
  include	
  the	
  passing	
  
of	
  proposals	
  and	
  counters	
  electronically	
  as	
  long	
  as	
  that	
  information	
  is	
  posted	
  to	
  the	
  website.	
  	
  If	
  you	
  have	
  
proposals,	
  clarifications	
  or	
  improvements	
  regarding	
  the	
  above	
  issues,	
  I	
  would	
  be	
  happy	
  to	
  respond	
  as	
  
necessary.	
  

Regards,	
  

Dan	
  McMinimee	
  

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DCSD Feedback

  • 1. June  12,  2012   Brenda,   Here  is  some  specific  feedback  from  the  Board  of  Education  and  some  challenges  that  need  to  be   addressed,  in  no  particular  order.    Please  note  that  these  are  their  highest  priority  items.     Using  Pay  for  Performance  dollars  for  a  raise,  ongoing  or  one-­‐time,  is  a  problem.    It  depletes  the  pool   of  $4.2M  dollars  by  approximately  half,  greatly  minimizing  our  ability  to  make  progress  towards  the   Strategic  Plan  goals.       From  our  original  proposal  on  April  11:   Reengage  pay  for  performance  –  use  money  to  pay  great  employees  to  build  out  the  system  in  FY  2013.   Start  pilot  with  limited  group  of  new  hires  in  FY  2013.    Pay  employees  for  professional  development   associated  with  strategic  plan  and  pay  for  performance.    Transition  the  money  to  full  pay  for   performance  –  phase  in.   We  want  to  reengage  P4P,  in  the  form  of  funding  National  Board  Certified  Teacher,  Master  Teacher,  Site   Based  Responsibility,  Skills  Blocks/Personal  Learning  (Growth  and  Development)  Stipends  and  District   Responsibility.    With  the  suspension  of  Outstanding  Teacher  and  the  Group  Incentive,  we  will  have  the   flexibility  to  fund  additional  learning  opportunities  for  staff  and/or  a  limited  pilot  of  the  Pay  for   Performance  plan  we  are  developing  through  the  collaborative  work  around  Career  Ladders  and  the   other  associated  pieces.   Dues  Collection   DCFT  tentatively  agreed  on  the  issue  of  dues  collection.    In  fact,  we  understand  that  you  already  have  a   process  underway  to  collect  outside  of  a  District  payroll  deduction.    However,  the  statement  that  the   DCFT  wants  to  “reserve  the  right  to  take  legal  action  outside  of  this  if  we  so  feel  necessary”  is   troublesome.  (Session  5  audio  on  June  8,  2012  at  approximately  45:00)    DCFT’s  statement,  when  asked   about  the  dues  collection  in  the  recent  article  in  the  Colorado  News  Press,  was    “Though  the  Union   conceded,  Smith  said  it  retains  the  right  to  take  legal  action  on  the  issue  of  dues  deduction…”  (Colorado   News  Press  June  8,  2012)    These  statements  about  taking  legal  action  on  contract  items  to  which  DCFT   has  “agreed”  indicate  that  there  really  is  no  agreement  on  these  items.   Exclusivity  is  “non-­‐negotiable”   As  discussed,  we  want  to  change  the  language  on  page  3  of  the  current  CBA  to:   II.   RECOGNITION   A.   The   Board   recognizes   the   Union   as   the   exclusive   a   bargaining   agent   for   the   unit   of   teachers   its   members   as   herein   above   defined,   for   the   purpose   of   bargaining   on   the   following:     On  Friday,  DCFT  stated  “this  part  is  non-­‐negotiable”  in  reference  to  the  above  recommended  change.     Furthermore,  DCFT  stated  that  “we  as  an  organization  will  not  negotiate  ourselves  out  of  a  contract”.   (Session  1  Audio  on  June  8,  2012  at  approximately  11:20  –  12:10)  
  • 2. To  be  clear,  we  are  asking  for  choice  for  our  teachers…you  are  asking  for  a  monopoly.    When  asked   about  other  collective  bargaining  agents,  you  stated  “No  language  needed.    In  accordance  with  Federal   law,  teachers  choose  their  own  collective  bargaining  agent.”  (DCFT  Bargaining  Offer  –A  Summary  of   Negotiations  on  May  9)       It  is  counter-­‐intuitive  that  as  a  teacher  I  have  a  right  to  choose  my  own  collective  bargaining  agent,  but   as  an  organization  we  only  recognize  one  organization  as  the  “exclusive”  bargaining  agent.    We  are   asking  for  flexibility  and  choice  for  all  employees.   No  Disruption  to  the  educational  environment  –  the  Union  will  not  spread  misinformation  about   Board,  Superintendent,  District  Leadership,  or  other  District  matters.   Recent  evidence  suggests  there  is  an  apparent  disconnect  between  “what  you  say”  and  “what  you  do”   regarding  your  commitment  to  the  repair  and  improvement  of  the  climate  and  culture  of  our  District.     The  language  that  has  been  proposed  by  the  DCFT  as  an  addition  to  the  CBA  is  a  good  start:   Q.  WORKING  CONDITIONS.    The  DCSD  and  DCFT  understand  that  positive  working  conditions  are   important  for  both  teachers  and  their  students.    To  help  foster  a  work  environment  conducive  to  student   learning,  both  parties  agree  to  work  on  the  following:      Improve  the  culture  and  climate  of  DCSD  by  collaborating  to  determine  appropriate  standards   for  working  conditions.        Improve  communication  and  distribute  accurate  information  within  the  District  and  between  the   District  and  the  DCFT.        Review  and  find  ways  to  reduce  class  loads  and  case  loads  in  order  to  improve  certified  employee   and  student  contact  ratios,  which  improve  student  learning  and  outcomes.      Review  ways  for  certified  employees  to  be  more  involved  in  decision  making  at  sites  and  across   the  District.     However,  since  the  time  this  was  first  brought  up  as  an  issue  for  Negotiations,  there  have  been  several   instances  that  have  been  counter  productive.    Most  recently  the  “door  hangers”  distributed  in  the   community  regarding  budget  twisted  facts  and  the  threat  to  perpetuate  misinformation  at  a  recent   Open  Negotiations  session  from  one  of  your  team  members  to  one  of  mine…to  paraphrase  “I  think  I  will   send  that  article  out  to  all  teachers,  what  do  you  think  of  that?”     At  the  April  11  Open  Negotiations  meeting,  the  following  was  shared  verbally  and  in  a  PowerPoint:     District  Proposes  a  Healthier  Culture  and  Climate  to  Improve  Morale  (Quality  of  Life)   Commitment  to  the  attributes  of  healthy  organizations:   • Expectation  of  positive,  accurate  communication  to  schools  and  community   • Protect  the  educational  environment   • Commitment  to  freedom  and  choice  for  employees     We  are  committed  to  the  above  statements,  as  we  know  they  are  very  important  for  our  staff  and   students.    If  you  agree,  please  provide  specific  examples  of  the  actions  you  will  take  to  ensure  it.  
  • 3. A  3%  raise  (1%  one-­‐time  stipend  and  2%  ongoing  from  other  sources)  puts  the  District  in  an   unsustainable  financial  position.     As  was  shared  at  Negotiations,  the  1%  retention  stipend  (one-­‐time  dollars)  is  funded  in  our  budget   proposal.    We  realized  $6M  dollars  of  cost  of  business  savings  this  year,  and  would  like  to  use  $2.8M  to   fund  the  retention  stipend  for  all  employees.    There  are  “no  strings”  attached  to  this  retention  stipend   except  for  returning  contracts  by  the  June  15,  2012  deadline.    In  addition  we  have  committed  the   remaining  $3.2M  in  the  form  of  $50.00  per  student  back  to  our  schools.    The  $6M  dollar  savings  will  be   ongoing  in  future  budgets,  and,  as  you  know  we  have  used  the  recurring  $6M  to  reduce  the  reoccurring   budget  by  $18.1M,  so  that  we  can  recommend  a  balanced  budget  for  FY  2013  -­‐  one  that  does  not  rely   on  one-­‐time  money  for  on-­‐going  costs.     As  previously  outlined,  the  District  proposed  1%  ongoing  pay  increase  may  be  accomplished  by:   • Phase  Out  of  Longevity   • Phase  Out  of  Extended  Service  Severance   • Phase  out  of  KLA  (Certified  Only)     At  this  time,  based  on  your  proposal  last  Friday,  you  have  identified  very  limited  savings  toward  the  $2M   certified  only  cost  to  fund  a  1%  raise.      In  addition,  you  have  added  another  1%  on  top  of  the  District’s   proposal  offering  a  questionable  $1  M  to  $1.4  M  of  savings  from  those  long  term  employees  who   willingly  forgo  the  extended  severance  assuming  they  will  receive  the  2%  ongoing  pay  increase.    For   certified  only,  each  1%  pay  increase  has  a  value  of  $2  M.   Each  year,  somewhere  between  50  and  100  teachers  retire  at  an  average  cost  of  about  $2  million  each   year.    Assuming  this  trend  continues  at  the  end  of  FY  2013,  it  is  extremely  unlikely  that  anyone  planning   to  retire  at  the  end  of  this  fiscal  year  would  choose  the  2%  raise  over  the  severance.    The  average  value   of  the  severance  is  over  $38,000  for  each  employee.    We  would  not  see  any  savings  in  this  line  for  at   least  the  next  3  years  putting  at  risk  our  financial  stability.        More  specifically,  this  would  require  the   district  to  commit  to  and  recommend  deficit  spending  until  we  either  secure  a  new  revenue  source   and/or  cut  our  schools  to  fund  the  increase  –  exactly  what  happened  in  FY  2009  after  the  District  agreed   to  a  2.7%  pay  increase.        We  must  plan  ongoing  budgets  that  allow  us  to  live  within  our  means.    We  are   committed  to  finding  a  way  to  propose  a  1%  on-­‐going  pay  increase  for  all  staff,  so  we  need  to  work  out   the  logistics  within  the  three  variables  mentioned  above  to  get  there.   In  closing,  should  you  be  interested  in  improving  this  potential  CBA  package  for  the  BOE  to  consider,  I   can  be  available  to  discuss  it  the  week  of  June  25-­‐28.    I  would  be  interested  in  a  topic-­‐specific  session  to   improve  our  current  package…  focusing  on  the  above-­‐mentioned  areas.    I  am  thinking  that  2-­‐3  hours   with  extensive  front-­‐loading  of  specific  proposals  and  a  commitment  from  all  to  stay  on  task  would  be   necessary.   In  the  meantime,  the  Board  of  Education  shared  that  “Open  Negotiations”  can  also  include  the  passing   of  proposals  and  counters  electronically  as  long  as  that  information  is  posted  to  the  website.    If  you  have   proposals,  clarifications  or  improvements  regarding  the  above  issues,  I  would  be  happy  to  respond  as   necessary.   Regards,   Dan  McMinimee