1. Negotiators’ Planning Retreat June 22, 2016 Presented by John Gray President John Gray President Association of California School Administrators

2. Collective Bargaining Impacts Positive Impacts to Collective Bargaining More ongoing dollars More flexibility Gobs of one-time dollars Negative Impacts to Collective Bargaining More ongoing dollars More flexibility Gobs of one-time dollars STRS increase PERS increase Minimum wage Cap on reserves Friedrichs v. CTA Letters from politicians opining on the use of supplemental funds Wide variations of funding district by district © 2016 School Service of California, Inc. 1

4. (Per ADA) 0 2016-17 LCFF New Revenues 2016-17 New Expenditures $400 $500 $600 $200 $300 $100 Increased Revenues Have Automatic Increased Obligations (Average LEA) © 2016 School Service of California, Inc. Base Grant $261 Special Education Contribution due to 0% COLA $315 Step and Column $102 Supplemental/ Concentration Grant $259 CalSTRS Increase $115 CalPERS Increase $39 6-5 3

5. DOF Projections Revenues*2017-182018-19 Department of Finance (DOF) Projected $ Increase$152$361 DOF % Increase1.57%3.68% © 2016 School Service of California, Inc. 4 *Average district Cost-of-living adjustment (COLA) projected for 2017-18 is 1.11%, and 3.68% for 2018.19 Expenditures STRS Increase-1.85% Step & Column-1.02% Total-2.87% Net-1.30%0.81% Two-Year Net-0.49%

6. Deficit Spending on the Horizon – Help Proposition 30 Extension! © 2016 School Service of California, Inc. Source: May Revision 2016-17, pg. 4 (State Budget) 5

7. Political Variables in 2016 As we have clearly seen in the past with the reserve cap, not every issue included in a State Budget is strictly fiscal Topics likely up for debate include: Friedrichs v. California Teachers Association (CTA) lawsuit ( Friedrichs ) School district reserve cap School facilities funding The resolution to the political push and pull on these issues will determine how they are decided And ultimately how it affects your LEA © 2016 School Service of California, Inc.

8. Things Unions Do that Result in You Ending Up in Factfinding What They Do Go nuts over the ending balance Miscommunicate to their members Fall in love with one part of a neighbor’s multipart settlement Negotiation team members negotiate for themselves Poking the bear (school board) Not knowing the rules of engagement Not being prepared What Can You Do? © 2016 School Service of California, Inc. 7 Educational Employment Relations Act (EERA) 3548.2 Prepare for bargaining as if you are going all the way to factfinding

9. Things We Do to End Up Factfinding What We Do Oversell our position to the community Back our board into a corner Not communicating with our neighboring districts Not planning Not listening What Can We Do? © 2016 School Service of California, Inc. 8 Educational Employment Relations Act (EERA) 3548.2 Prepare for bargaining as if you are going all the way to factfinding

10. Preparing for Negotiations Factfinders shall consider (EERA 3548.2): 1.State and federal laws applicable to the employer. 2.Stipulations of the parties. 3.Interest and welfare of the public and the financial ability of the public school employer. 4.Comparison of the wages, hours, and conditions of employment with other employees generally in public school employment in comparable communities. 5.The Consumer Price Index for goods and services, commonly known as cost of living. 6.Overall compensation, including wages, vacations, holidays, insurance, pension, medical, and hospitalization benefits received. 7.Any other facts not included in 1 to 6 above that normally are taken into consideration in making findings and recommendations. 9 © 2016 School Services of California, Inc.

11. Percent of Budget – Statewide Unified Data 2011-122014-15Difference Certificated Non-Management Salaries 48.46%45.87%-2.59% © 2016 School Service of California, Inc. 10 Certificated Non-Management Salaries$11,408,990,878$13,017,044,441$1,968,053,563 We are less of a priority! 17.8% Increase

12. Percent of Budget – Statewide Unified Data 2011-122014-15Difference All Compensation 90.56%87.38%-3.18% © 2016 School Service of California, Inc. 11 All Compensation $20,275,467,479$24,305,945,667$4,030,478,188 We are less of a priority! 19.9% Increase

13. Budget Priorities 2011-122014-15DifferencePercent Change Certificated Non-Management Percent of Budget 48.46%45.87%-2.59% Dollar Increase $11,408,990,878$13,017,044,441$1,968,053,56317.8% Classified Percent of Budget 12.93%13.64%0.71% Dollar Increase $2,938,949,978$3,869,667,778$930,717,80031.7% All Compensation Percent of Budget 90.56%87.38%-3.18% Dollar Increase $20,275,467,479$24,305,945,667$4,030,478,18819.9% Books and Supplies Percent of Budget 1.88%2.92%1.04% Dollar Increase $102,046,883$200,757,009$98,710,12696.7% Services Percent of Budget 6.44%7.81%1.37% Dollar Increase $354,418,994$536,121,516$181,702,52251.3% © 2016 School Service of California, Inc. 12

14. Budget Priorities 2011-122014-15New DollarsPercent of Total All Compensation Dollar Increase $20,275,467,479$24,305,945,667$4,030,478,18893.5% Books and Supplies Dollar Increase $102,046,883$200,757,009$98,710,1262.3% Services Dollar Increase $354,418,994$536,121,516$181,702,5224.2% $4,310,890,836100% © 2016 School Service of California, Inc. 13

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