S.1012.22, F.S., Requirements for Employee Compensation and Salary Schedules Florida Department of Education May 23, 2012 1 1

Evaluation Classifications for Instructional Personnel & School Administrators S.1012.34(2)(e), F.S. – Must differentiate among four levels of performance as follows: Highly Effective Effective Needs Improvement (or for instructional personnel in the first three years of employment who need improvement, developing) Unsatisfactory 2 2

Changes in Employee Compensation - Types Salary Adjustments – change in base salary that is not a bonus and becomes part of the employee’s permanent base salary By schedule (Grandfather or Performance) Cost of Living Adjustment (COLA) May not discriminate among comparable classes of employees based upon the salary schedule under which they are compensated May not exceed 50% of the annual adjustment provided to instructional personnel rated as effective Supplements – annual addition to the base salary for a negotiated term as long as the employee continues to be employed for the purpose of the supplement. Does not become part of the employee’s continuing base salary Is considered compensation for purposes of s.121.021(22), F.S. (FRS) Examples: Assignment to a Title I eligible school Assignment to a low performing school Advanced degree held in the individual’s area of certification (exception for employees hired before July 1, 2011) Additional Responsibilities Critical shortage areas 3 3

Two Basic Schedules for Salary Adjustments for Instructional Personnel Grandfathered Salary Schedule Limited to school employees hired before July 1, 2014 who remain on a continuing contract or professional services contract; and All classroom teachers of courses for which the district has not yet implemented required local assessments for measuring student growth Must base a portion of each employee’s compensation on the employee’s evaluation Must provide differentiated pay based on district determined factors, including, but not limited to, additional responsibilities, school demographics, critical shortage areas, and level of job performance difficulties. Performance Salary Schedule Must be adopted by July 1, 2014 For all instructional personnel on annual contract or hired on or after July 1, 2014, and instructional personnel on continuing or professional services contract who choose to “opt in”. Any employee who opts in to the performance salary schedule may not return to the grandfathered salary schedule. Employee salary equals base salary plus adjustments: Annual performance adjustment for an employee rated as highly effective must be greater than the highest annual salary adjustment for an employee of the same classification through any other salary schedule adopted by the district. Annual performance adjustment for an employee rated as effective must be equal to at least 50% and no more than 75% of the annual adjustment provided for a highly effective employee of the same classification. Annual performance adjustments may not be provided for an employee who receives an evaluation other than highly effective or effective for the year. Employees are eligible for salary supplements. 4 4

Parity for Performance Salary Schedules S. 1008.22(1)(c)(5)(c)(IV), F.S. – “….If budget constraints in any given year limit a district school board’s ability to fully fund all adopted salary schedules, the performance salary schedule shall not be reduced on the basis of total cost or the value of individual rewards in a manner that is proportionately greater than reductions to any other salary schedules adopted by the district.” 5 5

The information contained in this table is hypothetical and for illustrative purposes only. 6 6

7 The information contained in this table is hypothetical and for illustrative purposes only. 7

8 The information contained in this table is hypothetical and for illustrative purposes only. 8

9 The information contained in this table is hypothetical and for illustrative purposes only. 9

Calculated Full Cost of Salary Schedules 10 The information contained in this table is hypothetical and for illustrative purposes only. 10

Calculated Full Cost of Salary Schedules, cont’d 11 The information contained in this table is hypothetical and for illustrative purposes only. 11

Application of Performance Parity Provision 12 The information contained in this table is hypothetical and for illustrative purposes only. 12

Application of Performance Parity Provision, cont’d 13 The information contained in this table is hypothetical and for illustrative purposes only. 13

Some Factors to Consider When Negotiating Future Salary Schedules Timing of Salary Adjustments At the beginning of the school year based on prior year performance evaluations costs are easier to calculate due to known inputs At the end of school year based on performance during the school year would require budgeting based on projected performance evaluations retroactive for the entire period? Does budget determine the salary schedules, or do salary schedules determine the budget?   Pro-ration provisions may be an important tool to ensure required parity between performance & grandfather schedules when the amount available for salary adjustments is insufficient to fully fund scheduled steps.