Shamokin Area School District Informational Session January 26,

September 8, 2015 SASD Proposal Date of Union’s 1 st Strike Commencement Salary Increases Freeze Freeze $5000 (prorate based on hired date) $ $2000 Alternative Offer: contingent upon increasing class size 5% monthly tiered plan premium share Tuition reimbursement limit to $100,000 annually August 26: Freeze; Freeze; $3500; $1200; $1200 and 6% monthly tiered premium share; cap professional development 2

School Board Meeting September 15, 2015 * Negotiation Committee agrees to meet after meeting The union representative stated that she has one message and that is that class size does matter and they will not give in. Furthermore, no amount of money is going take class size away from the teachers. Class size matters to them and the public. They will not accept any offer on the table that involves class size. 3

September 15, 2015 SASD Proposal Remove class size proposal Salary Increase Freeze Freeze $5000 (prorate by hired date) $ $2000 Or alternative offer giving the Association discretion to create a five-year contract period such that salary base increase does not exceed $1.4 million in total wage increases 5% monthly tiered premium share Professional development $100,000 annual cap 4

September 18, 2015 School Board files Petition for Preliminary Injunction 5

September 23, 2015 Judge Wiest granted the District an injunction that the Teacher’s Association is directed to return to work on Thursday, September 24, and ordered parties to enter into non-binding arbitration. 6

December 8, 2015 Final Best Offer exchanged by the parties. December 18, 2015 Non-binding Arbitration held Package only 7

Proposed increases 8

January 12, 2016 Decision rendered “The District’s offer of no salary increase for the first two years of the collective bargaining agreement is simply too severe an alternative, considering the already low salaries of Shamokin teachers, relative to surrounding districts. While the Panel does not give short shrift to the District’s financial handicaps, we must, essentially, chose between two alternatives, neither of which is attractive. The Panel does not choose the Association’s last offer because it is the best alternative; neither party’s last offer is the contract this Panel would have drawn up, had it been given the freedom to do so.” 9

January 12, 2016 Decision Rendered – cont’d Split vote 2-1 for SAEA Salary proposed summary: a school year, bargaining unit members receive $1,000; b school year, bargaining unit members receive $1,750; c school year, bargaining unit members receive $2,500; d school year, the District will implement the following salary schedule. All bargaining unit members will be placed in the Bachelor’s column. Bargaining unit members whose salaries are beyond the salary schedule will receive a $1,000 increase to their base salary in each of the remaining three years of the contract. This will result in a payroll of $7,754,

e school year, the salary schedule will reflect a payroll of $8,136,518, plus any columnar movement. The entry- level (Step One) will be deleted, to reflect an nineteen (19) step schedule. f school year, the salary schedule will reflect a payroll of $8,507,918, plus any columnar movement. The entry- level step (Step One) will remain deleted, to reflect an eighteen (18) step schedule. 11

January 19, 2016 Motion

PSERS Employer Contribution Rates Fiscal Year Total Employer Contribution Rate %

Current Healthcare Plan * Capital Blue Cross PPO $0 deductible * 1% of salary is current contribution If a teacher’s salary is $45,000, then the annual contribution is $450 or $17.30 per pay period. 14

SASD Proposal for Employee to pay 5% premium share 15

1% Salary compared to 5% Premium Share Using base salary of $7,295,373, the 1% of salary would yield $72,954. Using current enrollment, the 5% of tiered premium would yield $139,

Revenue and Expenses Final Budget Actual Revenues $ 28,755,639 $ 28,958,929 $ 28,910,232 $ 27,479,496 $ 27,945,022 Expenses $ 30,325,640 $ 30,202,293 $ 27,518,023 $ 26,655,564 $ 27,040,426 Per audit as of June 30 (end of school year) per AFR GF Balance $ 7,326,824 $ 6,085,510 $ 7,577,968 $ 8,182,337 $ 8,413,723 17

General Fund Balance General fund BalanceSAEASASD AFR eoy 6/30/15 $ 8,413,723 general fund revenue to balance 15/16 final budget $ (3,626,477) 13/14, 14/15/ 15/16 proposals $ (1,711,500) $ (895,000) Estimated EOY 6/30/16* $ 3,075,746 $ 3,892,246 16/17 proposals $ (1,483,208) $ (1,253,000) Estimated EOY 6/30/17* $ 1,592,538 $ 2,639,246 17/18 proposals $ (1,988,336) $ (1,611,000) estimated EOY 6/30/18* $ (395,798) $ 1,028,246 18/19 proposals $ (2,428,176)no proposal estimated EOY 6/30/19* $ (2,823,974) 18

Comparison… 19 12/8/2015 SASD Final Offer 1/25/2016 Negotiations SASD proposal12/8/15 SAEA Final Offer : Freeze : $250 increase : $1000 increase : Freeze : $1000 increase : $1750 increase : $5000 increase prorated : $2250 increase : $2500 increase : $2000 increase : 20 step SAEA schedule (all on bachelors) plus 13 teachers red circled : 20 step schedule (all on bachelors) plus 13 teachers red circled : $2000 increase : use 1617 SAEA schedule add step ($1300) add horizontal movement as per expired agreement (6 columns); red circled increase $ : 20 step schedule add step plus on scale increase ($2300); add horizontal movement (8 columns); red circled increase $ : no proposal : 20 step schedule add step plus on scale increase ($2300); add horizontal movement (8 columns); red circled increase $1000 Total cost of increases to base salary: $3,759,000 Total cost of increases to base salary: $4,177,216 Total cost of increases to base salary: $5,183,044

Comparison… 12/8/2015 SASD Final Offer 1/25/2016 Negotiations SASD proposal 12/8/15 SAEA Final Offer Healthcare: 5% monthly tiered plan premium share Healthcare: Family & HW 2.25% of salary; Parent & Children or Parent & child 2% of salary; Single 1.75% of salary as contribution Professional Development: Reimbursement of college credits to be capped at $100,000 No change to terms of expired contract 20

Tuition Rate 21

Some questions regarding school Are we able to educate Seniors during strike such that the Graduation date does not change? How long can strike last? Are there negotiation sessions scheduled? Do we anticipate any court actions? Will students be going to school on Saturdays’? 22

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