1. Presentation to: Arizona Association of School Business Officials Spring Conference March 28, 2013 Brenda Thomas-Martinez, Business Manager Blue Ridge Unified School District Mike Aylstock, Consultant Aylstock Consulting, LLC Copyright © 2013 by Aylstock Consulting, LLC Alternative Salary Structure

2. History of Teacher Pay in U.S. Three shifts in the way teachers have been paid: Three shifts in the way teachers have been paid: “Boarding Round” Pay System “Boarding Round” Pay System -Throughout country in 1800’s -Compensation mainly was room and board for teacher -Strong incentive for teachers to maintain positive relations with community members and maintain a high moral character -Reflected the barter economy of the time March 28, 20132

3. History of Teacher Pay in U.S. Three shifts in the way teachers have been paid: Three shifts in the way teachers have been paid: Position-based Salary System Position-based Salary System -Began in the early 1900’s -Increased pre-service education requirements -Paid elementary teachers less than secondary teachers -Paid women and minorities less than non-minority males -Reflected societal biases of the times March 28, 20133

4. History of Teacher Pay in U.S. Three shifts in the way teachers have been paid: Three shifts in the way teachers have been paid: Teacher Salary Schedules Teacher Salary Schedules -First implemented in late 1920’s -Teachers paid based on increments and steps on a rigid salary schedule -Years of experience in classroom - Number of graduate credits earned -Paid same salary to teachers with same qualifications regardless of grade level taught, gender, or race March 28, 20134

5. Old Traditional Salary Schedule Experience 0 1 2 3 4 5 6 7 8 9 10. 20 Education BA BA+18 MA MA+18 MA+36 26,000 26,750 27,500 28,250 29,000 29,750 26,750 27,500 28,250 29,000 29,750 30,250 31,000 31,750 27,500 28,250 29,000 29,750 30,250 31,000 31,750 32,500 33,250 34,000 34,750 28,250 29,000 29,750 30,250 31,000 31,750 32,500 33,250 34,000 34,750 35,250 36,000 36,750 37,500 29,000 29,750 30,250 31,000 31,750 32,500 33,250 34,000 34,750 35,250 36,000 36,750 37,500. 42,750 $750 Per Year Experience – “Steps” $750 Per 18 Grad Hr. – “Lanes” 5 March 28, 2013

6. Pros and Cons of Salary Schedules Pros Easy to administer when funds are available Easy to administer when funds are available Predictable for staff Predictable for staff -Can see where they “should” be at a given time in their career -Years experience -Education gained Cons Inflexible to adjust Inflexible to adjust Sets artificial expectations Sets artificial expectations Sets limits for veteran staff Sets limits for veteran staff -Columns top out -Maximum education hours “Steps” vs. raise debate “Steps” vs. raise debate “Across the Board” vs. percentage raises “Across the Board” vs. percentage raises Who benefits more? Young staff or Young staff or Veteran staff Veteran staff March 28, 20136

7. Sample of Recent Legislative Increases to Education FUNDINGGNP-IPDDIFFERENCECOMPOUNDED PER ADELOSS 1991-921.00%4.10%3.10% 1992-930.50%3.60%3.10%6.30% 1993-940.00%2.60% 9.06% 1994-952.00%2.60%0.60%9.71% 1995-961.00%2.20%1.20%11.03% 1996-970.40%2.40%2.00%13.25% 1997-981.90%2.00%0.10%13.36% 1998-991.70%1.90%0.20%13.59% 1999-001.80%1.20%-0.60%12.91% 2000-011.00%1.40%0.40%13.36% 2001-022.50%2.30%-0.20%13.13% 2002-032.00%2.10%0.10%13.25% 2003-042.00%1.20%-0.80%12.34% 2004-052.00%1.80%-0.20%12.12% TOTAL19.80%31.40%11.60%

8. The News Gets Even Worse… From Chuck Essigs, AASBO financial guru: According to state budget reports for 2007-08 school year, state funding to schools was $4,440 per student. For the 2011-12 school year, the estimate for state funding was $3,628 per student. This means that the amount of state funding per pupil has DECLINED by $812 per student or 18.3% since 2007-08. There is NO way to fund salary schedules with that level of reduced funding! Alternatives must be developed. March 28, 20138

9. How Alternative Structure Works Contract/wage notice contains a salary amount only Contract/wage notice contains a salary amount only -Annual amount for certified staff -Hourly rate for classified staff Contract/wage notice adjusted annually by the Board Contract/wage notice adjusted annually by the Board -Across the board increases -Percentage increases -Combination of both -Or no increase may be given No steps or lanes listed on contracts No steps or lanes listed on contracts No one is ever “frozen” at a step – they get a “raise” No one is ever “frozen” at a step – they get a “raise” Increases given for education growth Increases given for education growth Lends itself to performance-based incentives Lends itself to performance-based incentives March 28, 20139

10. Salary Increase Scenarios Easy to calculate salary increase scenarios Easy to calculate salary increase scenarios After available funds for raises determined Have total dollar amount of all contracts Have total dollar amount of all contracts Determine total amount for each 1% increase -For $10 million - $100,000 per 1% salary increase -For $10 million - $100,000 per 1% salary increase Have total amount of eligible employees Have total amount of eligible employees Determine total amount per $100 increase -For 150 teachers - $15,000 per $100 salary increase -For 150 teachers - $15,000 per $100 salary increase Can work with different combinations Can work with different combinations Across the Board and percentage increases possible Across the Board and percentage increases possible Not restricted by “steps” of a traditional salary schedule Not restricted by “steps” of a traditional salary schedule March 28, 201310

11. Benefits to Program Budgeting for the upcoming year simplified Budgeting for the upcoming year simplified Easy to determine costs of raises compared to funds available for salary increases -Across the board and/or percentage Experienced staff never reach “top of the scale” Experienced staff never reach “top of the scale” No penalty for longevity -Salaries not frozen … no artificial steps No final column for education moves No final column for education moves Encourages continuing education Flexibility in hiring new staff members Flexibility in hiring new staff members Additional salary for unique qualifications Continually add to entry level – stay competitive March 28, 201311

12. How to Initially Place Staff Continuing Staff Continuing Staff -Contract based on previous year’s salary with Governing Board approved salary adjustment -Contract dollar amount for certified -Hourly rate for classified staff Newly Hired Certified Staff Newly Hired Certified Staff -Salary based on various factors locally controlled -Experience, education, and unique qualifications Newly Hired Classified Staff Newly Hired Classified Staff -Entry level rate based on classification of position March 28, 201312

13. District Discretion to Place New Staff Teaching Experience Accepted Teaching Experience Accepted -Majority of districts give maximum of 5 years of teaching experience -Governing Board can elect to give more credit as a means to recruit experienced teachers Credit for Continuing Education Credit for Continuing Education -Hours beyond Bachelor’s Degree -Unlimited graduate hours -Must apply toward Master’s Degree Unique Qualifications Unique Qualifications -Extra compensation for hard to find certifications March 28, 201313

14. 2012-13 “Change Model” for Lake Havasu New Teacher with: MA+12 education Gifted endorsement 14 years experience Initial Salary: $44,000 14 12 6 1 19 G/T

15. Future Year Adjustment Examples For a teacher with 2012-13 salary - $40,000 For a teacher with 2012-13 salary - $40,000 2013-14 salary adjustment options: 2013-14 salary adjustment options: Across the board increase$700 $ 40,700 Across the board increase$700 $ 40,700 -higher % increase for younger staff Percentage increase **2% $ 40,800 -more money for veteran staff members Combination of both ** $250 + 1% $ 40,653 -benefits for both young and veteran staff Can also add to base salary without “step vs. raise” debate. Helps with recruiting new staff members Can also add to base salary without “step vs. raise” debate. Helps with recruiting new staff members Education increments added to contract amount Education increments added to contract amount ** - cannot be done with traditional salary schedule ** - cannot be done with traditional salary schedule March 28, 201315

16. Language on Teacher Contract No mention of column or step on contract No mention of column or step on contract Only annual salary is included Only annual salary is included In consideration of services satisfactorily performed, the District agrees to pay you a salary of $44,000 for 184 working days The contract has a highlighted box that includes benefits paid on behalf of the employee by the district – most have no idea of the amount The contract has a highlighted box that includes benefits paid on behalf of the employee by the district – most have no idea of the amount Health and life insurance premiums, district’s contribution to ASRS, Worker’s Compensation, Medicare and Social Security, … March 28, 201316

17. Concept Applies to Support Staff Entry level hourly rates are determined for all positions based on points derived from six criteria Entry level hourly rates are determined for all positions based on points derived from six criteria Contracts written with only hourly rates and time requirements (contract days and hours per day) of the position – not based on a salary schedule Contracts written with only hourly rates and time requirements (contract days and hours per day) of the position – not based on a salary schedule Hourly rates adjusted each year by the Governing Board Hourly rates adjusted each year by the Governing Board -Across the Board increase to the hourly rate -Percentage increase to the hourly rate -Combination of both -Or no increase may be given March 28, 201317

18. Classification of Support Staff Points (1-5) awarded in 6 categories for classification of the position: Points (1-5) awarded in 6 categories for classification of the position: 1.Training level/education required for job 2.Experience required for specific job 3.Amount of responsibility associated with job -Care of buildings and equipment -Supervision of other employees 4.Length of time needed to plan and carry out task 5.Amount of public contact employee has 6.Availability of applicants with desired skills March 28, 201318

19. Training Level/Education Required FactorPoints FactorPoints No formal education or training 1 High school diploma or equivalent 2 Post high school or training required 3 Two years technical training or five 4 years learning on the job required College degree or equivalent required 5 March 28, 201319

20. Experience Level FactorPoints FactorPoints No experience 0 Less than one year of experience 1 One or two years of experience 2 More than two years of experience 3 March 28, 201320

21. Responsibility Level FactorPoints FactorPoints Performs as directed; responsible for 1 own job Must use initiative and judgment in 2 in performing job; has responsibility for some equipment, tools, or money Direct activities of small group or has 3 responsibility for equipment and $$ Responsible for several groups and/or 4 important department or division March 28, 201321

22. Time Management Level FactorPoints FactorPoints Routine work with little advanced 0 planning Must plan 2 to 12 weeks in advance 1 Must plan 3 to 6 months in advance 2 Must reduce to writing and plan as 3 much as 2 years in advance March 28, 201322

23. Public Contact Level FactorPoints FactorPoints Completes work with little or no 0 interaction with others Interacts daily with fellow workers 1 Interacts daily with fellow workers, 2 general public, or students Interacts daily with students, adults, 3 and fellow workers March 28, 201323

24. Availability Level FactorPoints FactorPoints Some people apply at wages paid 1 without an opening Some apply when job and wages 2 are advertised Few people apply when job and 3 wages are advertise Very few show interest or apply when 4 job and wages are advertised Option to add to wages to attract 5-7 qualified applicants and pay comparable wages 24

25. Support Staff Entry Level Rate Based on total points for the POSITION Based on total points for the POSITION Entry level hourly rate assigned to each number Entry level hourly rate assigned to each number 25 Points Entry Level Hourly Rate 17.65 28.06 38.47 48.89 59.31 69.73 710.15 810.60 911.05 1011.50 1111.95 1212.40 1312.85 1413.30 1513.75 1614.20

26. Example of Position Classification March 28, 201326 Job Title TrainingExperience Responsibilit y Time Management Public Contact Availability Total points Custodian1120127 Lead Custodian1130229 Computer Technician42311314 Bus Assistant1010316 Bus Driver11303311 Accounting Clerk-Payroll23323316 Bookstore/Attendance Secretary21113210 Instructional Assistant1010215 Instructional Assistant-Special Ed. I1010215 Instructional Assistant-Special Ed. II1020216 Instructional Assistant-Special Helper1020216 Library Clerk2010227 Transitional Specialist22212211

27. Yearly Adjustments to Hourly Rates Support staff member with a $9.50 hourly rate Across the board Across the board 25 cents per hour increase$9.75 per hour Percentage increase Percentage increase 3.5% increase to hourly rate$9.83 per hour Combination of both Combination of both 2% plus 10 cents$9.79 per hour Any adjustment can be made to entry level amounts to stay competitive in recruiting Any adjustment can be made to entry level amounts to stay competitive in recruiting March 28, 201327

28. Selling the Concept Communication is be the key! – Open and Honest Concept introduced to district employee groups Concept introduced to district employee groups Introduce the concept to Governing Board in a work session Introduce the concept to Governing Board in a work session Openly discuss the pros and cons and implementation strategies Openly discuss the pros and cons and implementation strategies -Be prepared for initial resistance to change -Present long range benefits to experienced and all staff -Half of any salary increase applied to Salary Determination Chart for following year to help stay competitive in hiring new staff for following year to help stay competitive in hiring new staff Why restrict salary opportunities of veteran staff? Why restrict salary opportunities of veteran staff? -Topping out on traditional salary schedule and being frozen -Topping out on traditional salary schedule and being frozen -Desire for more education but no financial reward -Desire for more education but no financial reward Concept endorsed by Administration, Education Association and considered for adoption by the Governing Board Concept endorsed by Administration, Education Association and considered for adoption by the Governing Board March 28, 201328

29. Questions? If you have any questions about the proposed Alternative Salary Structure model or would like additional information, please contact: If you have any questions about the proposed Alternative Salary Structure model or would like additional information, please contact: Mike Aylstock Brenda Thomas-Martinez Mike Aylstock Brenda Thomas-Martinez (928) 202-2124 (928) 368-6126 (928) 202-2124 (928) 368-6126 mike.aylstock@gmail.com bthomas@brusd.k12.az.us Copyright 2013 by Aylstock Consulting, LLC Copyright © 2013 by Aylstock Consulting, LLC March 28, 201329

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