Lake Havasu Unified School District #1 Compensation Package 2019-2020

Perspective 30,000 ft. view and magnification

Override Timeline and Funding November 2016 – Override passed 2017-2018 – Year 1 2018-2019 – Year 2 2019-2020 – Year 3 2020-2021 – Year 4 2021-2022 – Year 5 2022-2023 – Year 6 2023-2024 – Year 7 2024-2025 – Year 8 Full funding 2/3 funding 1/3 funding No funding

State Base Level Funding 20x2020 and Projections Year Increase Inflation Total Cumulative Total Generated new $ 2018-19 210.50 66.30 276.80 276.80 0.00 2019-20 105.00 80.00* 185.00 185.00 $1,221,000 2020-21 105.00 63.00 168.00 353.00 $2,294,500 2021-22 64.00 64.00 417.00 $2,668,800 2022-23 65.00 65.00 482.00 $3,084,800 2023-24 66.00 66.00 548.00 $3,507,200 2024-25 67.00 67.00 615.00 $3,936,000 $4,009.57 $4,194.57 $4,362.57 $4,426.57 $4,491.57 $4,557.57 $4,624.57 = committed funds Override (funding) – Full Reduced Expired = close to break even *Inflation @ 2% - remaining at 1.5%

Compensation Proposal 2019-2020 Ongoing Costs Annual / One-Time Costs 18-19 $3,005,132 19-20 $300,000 – Medical $310,000 – Base Increase $750 – certified $400 – classified $155,164 – Inversion ($12.00 minimum wage) inversion correction or $400 base increase – whichever is greater 19-20 $ 1,291,500* 5% COLA (PY base) $3,770,296 ongoing * Based on Previous Year Salary

Budget Detail 2019-2020 $2,549,296 ongoing $4,250,000 Override + $1,221,000 Additional State Base Support $5,471,000 - $3,770,296 Ongoing Costs $1,700,704 - $ 200,000 Athletics $1,500,704 - $1,291,500 COLA* (5%) – (PY base) $ 209,204 Carryforward * PREO – not included $2,549,296 ongoing GOAL = get additional base to exceed ongoing costs

Budget Forecast 2020-2021 $1,475,796 ongoing $ 847,104 Carryforward $4,250,000 Override + $2,294,500 Additional State Base Support $6,544,500 - $3,770,296 Ongoing Costs $2,774,204 - $ 200,000 Athletics $2,574,204 - $1,367,100 COLA* (5%) – (PY base and COLA) $1,207,104 - $ 360,000 Medical Premium Increase (7%) $ 847,104 Carryforward * PREO – not included $1,475,796 ongoing GOAL = get additional base to exceed ongoing costs

Budget Forecast 2021-2022 $1,101,496 ongoing $1,128,049 Carryforward $4,250,000 Override + $2,668,800 Additional State Base Support $6,918,800 - $3,770,296 Ongoing Costs $3,148,504 - $ 200,000 Athletics $2,948,504 - $1,435,455 COLA* (5%) - (PY base and COLA) $1,513,049 - $ 385,000 Medical Premium Increase (7%) $1,128,049 Carryforward * PREO – not included $1,101,496 ongoing GOAL = get additional base to exceed ongoing costs

Budget Forecast 2022-2023 $ 685,496 ongoing $ (174,844) Carryforward $2,640,000 Override (2/3 funded) + $3,084,800 Additional State Base Support $5,724,800 - $3,770,296 Ongoing Costs $1,954,504 - $ 200,000 Athletics $1,754,504 - $1,519,348 COLA* (5%) - (PY base and COLA) $ 235,156 - $ 410,000 Medical Premium Increase (7%) $ (174,844) Carryforward * PREO – not included $ 685,496 ongoing GOAL = get additional base to exceed ongoing costs

Budget Forecast 2023-2024 $ 263,096 ongoing $(1,148,448) Carryforward $1,320,000 Override (1/3 funded) + $3,507,200 Additional State Base Support $4,827,200 - $3,770,296 Ongoing Costs $1,056,904 - $ 200,000 Athletics $ 856,904 - $1,595,352 COLA* (5%) - (PY base and COLA) $ (738,448) - $ 410,000 Medical Premium Increase (7%) $(1,148,448) Carryforward * PREO – not included $ 263,096 ongoing GOAL = get additional base to exceed ongoing costs

Budget Forecast 2024-2025 $ 0 ongoing $ 0 Override + $3,936,000 Additional State Base Support $3,936,000 - $3,770,296 Ongoing Costs $ 165,704 - $ 440,000 Medical Premium Increase (7%) $ (274,296) Carryforward $ 0 ongoing GOAL = get additional base to exceed ongoing costs

Carryforward considerations Year Carryforward Assumptions Needs Plan (proposed) 2019-20 $ 209,204 2020-21 $ 847,104 2021-22 $ 1,128,049 2022-23 $ (174,844) 2023-24 $(1,148,448) 2024-25 $ (274,296) $ 586,769 Medical Premium Increases Declining Enrollment (ADM) Sustainable Base Salaries and Health Insurance Premiums Reverse Declining Enrollment Trend (ADM) Medical Premium Increases Declining Enrollment (ADM) REVIEW

Average Teacher Salary Compensation Trends Year Average Teacher Salary Salary % Increase Medical Premiums Premium % Increase 2016-2017 $37,895.00 - $7,518.00 2017-2018 $40,120.00 5% $7,718.16 3% 2018-2019 $44,206.00 10% $8,437.18 9% 2019-2020 $44,956.00 1% $9,019.20 7% $7,061.00 16%* $1,501.20 4%* * of 16-17 avg. teacher salary REVIEW

301w/o benefits deduction (17-18) 6,629.55 Certified (187) Low Mid High Average* 2018-19 Base 35,750.00 41,250.00 68,264.90 42,869.77** Health Benefits 8,489.98 Other Benefits 7,507.50 8,662.50 14,335.63 9,002.65 301w/o benefits deduction (17-18) 6,629.55 Total Compensation 58,377.03 65,032.03 97,720.06 66,991.95 2019-20 42,000.00 69,014.90 44,956.82 (est.) 9,019.20 (+25%) 9,019.20 9,019.20 (+13%) 8,222.50 9,660.00 15,873.43 10,340.07 301 est. 7,000.98 $59,992.68 $67,680.18 $100,908.51 $71,317.01 *Attorney General includes 301 when calculating average salaries Calculated at 23% ** as of 2.28.19 (LTS, resignations)

Classified (180 – 261) Low Mid High Average 2018-19 Hourly $11.00 ($11,880.00) $14.21 $24.45 ($51,051.60) $14.39 Health Benefits 8,489.98 Other Benefits $2.31 $2.98 $5.13 $3.02 Total Compensation $13.31 +ben. $17.19 +ben. $29.58 +ben. $17.41 +ben. 2019-20 $12.00 ($12,960.00) $22.70 $34.08 ($71,159.04) $16.04 9,019.20 (+70%) 9,019.20 9,019.20 (+13%) $2.76 $5.22 $7.84 $3.69 $14.76 +ben. $27.92 +ben. $41.92 +ben. $19.73 +ben. 180 days/6 hrs =$15,940 + ben. 261 days/8 hrs =$87,529 + ben. Calculated at 23%

Consider Which of these options best fulfill the a. Governor’s Intent b. Need to recruit and retain certified staff c. Equitability in total compensation

Compensation Proposal 2019-2020 Ongoing Costs Annual / One-Time Costs 18-19 $3,005,132 19-20 $300,000 – Medical $310,000 – Base Increase $750 – certified $400 – classified $155,164 – Inversion ($12.00 minimum wage) inversion correction or $400 base increase – whichever is greater 19-20 $ 1,291,500* 5% COLA (PY base) $3,770,296 ongoing * Based on Previous Year Salary

Questions