1. Fiscal Aspects of Negotiations Under the LCFF
ACSA Personnel Institute October 5 - 7, 2016
Fiscal Aspects of Negotiations Under the LCFF
Presented by
Ron Bennett, CEO
John Gray, President

2. Fiscal Negotiations

3. Financial Management and Collective Bargaining1
Right or wrong – no single step in budget decision making can:
Impact as much as collective bargaining
Recast priorities
Make or break a long-range plan
Lead to deficits, bankruptcy, early retirements, and recalls
Superintendents must be able to lead in an area probably foreign to their training and sometimes foreign to their natural instincts
The chief human resources officer may or may not be the lead negotiator, but it is their responsibility to provide the superintendent with the information they need to effectively lead negotiations and work with the board

4. Educational Delivery 2
Remember that the whole purpose of the collective bargaining agreement is:
From the district’s point of view, to facilitate delivery of educational programs
From the union’s point of view, to protect employee and union rights and to promote delivery of educational programs
Both parties need to focus on any change through the lens of educational delivery
Don’t get caught up in other agendas
Some parts of the agreement may favor the needs of one side or the other, but unless the overall effect is to facilitate educational delivery, the students lose
Appearances to the contrary; it really isn’t only about money

5. Negotiation Considerations3
Local Control Funding Formula (LCFF) and Local Control and Accountability Plan (LCAP)
Pressure to give any increases on the schedule
What part of LCFF can be put on the schedule
What should not be put on the schedule
Proposition 30 dollars are temporary
Sales tax portion ends in 2016
Income tax portion ends in 2018
California State Teachers’ Retirement System and California Public Employees’ Retirement System employer contributions on the rise
MIG: Collective Bargaining rev. 5/7/13

6. Can Targeted Dollars Be Used for Compensation?4
Targeted funds can be used for increased compensation if services to students are “increased or improved,” for example:
More teachers for lower class sizes or remedial programs
A longer school day or year
More time for parent involvement or student intervention
Other uses that directly benefit students
Targeted funds cannot be used to support activities that do not increase or improve services to students

7. Increased Revenues Have Automatic Increased Obligations (Average LEA)5
$600
$300
$200
$100
$500
$400
Revenues
Expenditures $0
$ Per ADA
S/C Grant
$252
Base Grant
$254
Special Education Contribution ?
CalSTRS
$115
CalPERS $36
Step & Column
$102
S/C Grant
$168
Base Grant
$221
Special Education Contribution ?
CalSTRS
$116
CalPERS $48
Step & Column
$103
Special Education Contribution ?
CalSTRS
$117
CalPERS $30
Step & Column
$104
S/C Grant $40
Base Grant
$111
© 2016 School Services of California, Inc.

8. Percent of Budget – Statewide Unified Data6
We are less of a priority!
Difference
Certificated Nonmanagement Salaries
48.46%
45.87%
-2.59%
Certificated Nonmanagement Salaries
$11,408,990,878
$13,017,044,441
$1,968,053,563
17.8% Increase

9. Percent of Budget – Statewide Unified Data7
We are less of a priority!
Difference
All Compensation
90.56%
87.38%
-3.18%
All Compensation
$20,275,467,479
$24,305,945,667
$4,030,478,188
19.9% Increase

10. Budget Priorities 8 2011-12 2014-15 Difference Percent Change
Certificated Nonmanagement
Percent of Budget
48.46%
45.87%
-2.59%
Dollar Increase
$11,408,990,878
$13,017,044,441
$1,968,053,563
17.8%
Classified
12.93%
13.64%
0.71%
$2,938,949,978
$3,869,667,778
$930,717,800
31.7%
All Compensation
90.56%
87.38%
-3.18%
$20,275,467,479
$24,305,945,667
$4,030,478,188
19.9%
Books and Supplies
1.88%
2.92%
1.04%
$102,046,883
$200,757,009
$98,710,126
96.7%
Services
6.44%
7.81%
1.37%
$354,418,994
$536,121,516
$181,702,522
51.3%

11. Preparing for Factfinding9
Factfinders shall consider (EERA ):
State and federal laws applicable to the employer.
Stipulation of the parties.
Interest and welfare of the public and the financial ability of the public school employer.
Comparison of the wages, hours, and condition of employment with other employees generally in public school employment in comparable communities.
The CPI for goods and services, commonly known as the cost of living.
Overall compensation, including wages, vacations, holidays, insurance, pension, medical, and hospitalization benefits received.
Any other facts not included in 1 to 6 above, which normally are taken into consideration in making findings and recommendations.
© 2016 School Services of California, Inc.

12. Negotiations Process 10

13. Negotiations Process Timelines11

14. Thank you!