1. Legislative Hearing to Resolve Impasse for 2010-2011 PEA Contract Negotiations Marianne Capoziello PEA President 1

2. Available Funds Angela Dawson 2

3. Capitol Outlay

4. 4 See District Budget 2010-2011 p. 63 Fund balance reflects the net financial resources of a fund – in other words, assets minus liabilities – in simpler terms, dollars available to spend. If some of the funds’ resources are not available to spend, this would be indicated by “restricting” or “reserving” a portion of fund balance. WHAT IS FUND BALANCE?

5. General Fund Balance – 5 years 5

6. GFB – 5 year trend 6

7. Classifications of Fund Balance 7 Nonspendable – The net current financial resources that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Generally, not in spendable form means that an item is not expected to be converted to cash – examples include inventory, prepaid amounts, long-term amounts of loans and notes receivable, and property acquired for resale. Restricted – The portion of fund balance on which constraints have been placed by creditors, grantors, contributors, laws or regulations of other governments, constitutional provisions, or enabling legislation. Committed – The portion of fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action of the highest level of decision-making authority – the district school board. These amounts cannot be used for any other purpose unless the district school board removes or changes the specified use by taking the same action it employed to previously commit the amounts. *Assigned – The portion of fund balance that is intended to be used for specific purposes, but is neither restricted or committed. *Unassigned – The portion of fund balance that represents amounts that are not nonspendable, restricted, committed or assigned to specific purposes. *represents the Unreserved funds. PCSB District Budget 2010-2011 pg. 63

8. General Fund Breakdown 8 PCSB District Budget 2010-2011 pg. 64

9. GFB Reserved unreserved graph

10. Salary Comparisons 10

11. Teacher Average Salary Compared 11

12. Why Does the Average Salary Decline? The Lapse Factor – Loss of experienced employees replaced with entry level employees – The gap in wages and benefits between the two employees is the Lapse – Benefits that are a percent of wages, FRS, UEC, and Worker’s Compensation also add to the Lapse – The amount of time that a position remains unfilled adds to the Lapse factor savings. 12

13. Salaries of Comparable and Contiguous Counties 13

14. General Fund – Instruction **Numbers in Blue are Estimates

15. Instruction cost 5 years

16. Fund Balance versus the Cost of the PEA Salary Proposal

17. Wage Proposal PEA Steps for all employees that are to move up an experience step $500 at the top of the scale for anyone with no movement Pay longevity to paras and secretaries as per the contract District Freeze all wages at the current levels No additional longevity added to salaries for paras and secretaries 17

18. Health Insurance Lee Littlefield 18

19. Blue Cross/Blue Shield proprietary information is required to cost an insurance proposal. Only your actuary has this information.

20. Most insured employees consume less than $1000 per year in health care costs. Source – PCSB Insurance Committee

21. Comparison of Benefits Schedule

22. Comparison of Premiums

23. Adverse selection occurs as the cost of a benefit increases for everyone in a group and some portion of that group has an advantage that allows access to the benefit at a cheaper cost.

24. In addition to the above costs, employees must still meet their $1500 CYD. Loss of Salary Impact on Selected Positions

25. In addition to the above costs, employees must still meet their $1500 CYD. Loss of Salary Impact on Selected Positions

26. Florida Statute §112.08(2)(b)... After implementation of an approved plan, each local governmental unit or consortium shall annually submit to the Office of Insurance Regulation a report which includes a statement prepared by an actuary… as to the actuarial soundness of the plan. The report is due 90 days after the close of the fiscal year of the plan.

27. Review of 112.08 Filings Show: Since 2006, small increases in funding have been consistently recommended These small increases have not been implemented and have increased in size annually As reserves decreased, recommendations have increased exponentially In 2006, the Premium Holiday was given even though a funding increase was recommended and not fully implemented.

28. Review of 112.08 Filings Show: Insurance deficit occurred from inaction on recommendations unknown to employees Employees already face economic pressure from stagnant wage rates, inflation, 3% FRS state tax, and reductions in hours In addition, the District has proposed an exorbitant cost shift to the employees for health care Employees should not be responsible to make up for the District’s failure to act in a timely manner!

29. Comparison of District Proposals January to July 2011

30. What Do We Know? 1.Your employees need affordable health care 2.District has limited resources General Fund Balance allows some temporary relief 3.We must invest wisely for the future Wellness Programs are proven District run Free Health Clinics Review current use of benefits  Cost of our Pharmacy Benefit was controlled

31. District’s Proposal will: Create economic discrimination for access to health care. Cause economic devastation through increased medical debt. Cause higher health care costs for the District, Employees, and the Community because of postponed health care. Have a negative impact on student achievement due to increased absenteeism.

32. Collaboration – Not Impasse or Unilateral Decisions Continue this Hearing and reopen Bargaining Invest in your employees by granting greater flexibility in Plan Design and Funding to your Bargaining Team OR Impose PEA’s recommendation based upon Better than expected Fund Balance Devastating harm to employees and the community of the District’s proposal Concern about increasing employee turnover A Health Insurance Resolution Requires:

33. Works well when collaboration exists PEA President appoints most effective representatives Retain Current Contract Language Superintendent’s Insurance Committee

34. Personal Impact Examples 34 Marianne Capoziello PEA President

35. Closing Marianne Capoziello PEA President 35