1. Why Bargaining Backwards Is a No-Win Situation Prepared by Leonard J. Dietzen, III © 2015 Rumberger, Kirk & Caldwell, P.A. FEN General Membership Meeting September 25, 2015

2. Today’s topics © 2015 Rumberger, Kirk & Caldwell, P.A. Avoid the trap of bargaining backwards. Educate Board members on the District’s true financial history. Set an amount for the Board’s contribution to health insurance. Bargain evaluations sparingly.

3. Avoid bargaining backwards. © 2015 Rumberger, Kirk & Caldwell, P.A. If you use today’s fund balance to pay for yesterday’s lost wages you will compound tomorrow’s issues.

4. Educate Board members. © 2015 Rumberger, Kirk & Caldwell, P.A. Before you begin to bargain, educate Board members on the District’s true financial history and current status. If you don’t, history may repeat itself and you may create a vicious cycle. Be wise stewards of your fund balance. Show 10-year history of fund balance.

5. Educate the Union, too. © 2015 Rumberger, Kirk & Caldwell, P.A. Money has finally arrived. Show Union why Board needs to grown fund balance. If you spend fund balance now you jeopardize better future wages and benefits.

6. Set aside a specific amount. © 2015 Rumberger, Kirk & Caldwell, P.A. Instead of promising to pay for all health insurance, set a fixed amount for board contributions to health insurance in the CBA. Employees will pay the difference. This will make bargaining health insurance easier and help you avoid running up against open enrollment deadlines.

7. Board Insurance Contributions © 2014 Rumberger, Kirk & Caldwell, P.A. 1.Highlands $642.67 2.Nassau $622.00 3.Duval $564.00 4.Clay $516.00 5.Columbia $458.33 6.St. Johns $425.83 7.Flagler $424.78 8.Baker $424.00 9.Union $369.55 10.Putnam $350.00 11.Bradford $303.00

8. Guidelines for General Fund © 2014 Rumberger, Kirk & Caldwell, P.A. “The district school board shall maintain a general fund ending fund balance that is sufficient to address normal contingencies. (1) If at any time the portion of the general fund’s ending fund balance not classified as restricted, committed, or nonspendable in the district’s approved operating budget is projected to fall below 3 percent of projected general fund revenues during the current fiscal year, the superintendent shall provide written notification to the district school board and the Commissioner of Education.” Ch. 1011.051, Florida Statutes

9. Guidelines for General Fund © 2014 Rumberger, Kirk & Caldwell, P.A. (2) If at any time the portion of the general fund’s ending fund balance not classified as restricted, committed, or nonspendable in the district’s approved operating budget is projected to fall below 2 percent of projected general fund revenues during the current fiscal year, the superintendent shall provide written notification to the district school board and the Commissioner of Education. Within 14 days after receiving such notification, if the commissioner determines that the district does not have a plan that is reasonably anticipated to avoid a financial emergency as determined pursuant to s. 218.503, the commissioner shall appoint a financial emergency board that shall operate under the requirements, powers, and duties specified in s. 218.503(3)(g).” Ch. 1011.051, Florida Statutes

10. Bargain evaluations sparingly. © 2015 Rumberger, Kirk & Caldwell, P.A. Evaluations are attached to salary, thus they must be bargained. Don’t get bogged down in the details every year. Try to maintain the same instrument.

11. Evaluation Article Language © 2015 Rumberger, Kirk & Caldwell, P.A. In accordance with Florida Statute 1012.34 regarding performance assessment, instructional personnel with an effective or higher rating will receive their step increases and have their contract renewed. - FEA Proposal

12. Disclaimer The information provided during this presentation is not intended for legal advice. The presentation, and any handouts which may accompany it, provide general information on this topic and answers to common questions about this issue. Please consult an attorney to assure that this information, and your interpretation of it, is appropriate to your particular situation. © 2015 Rumberger, Kirk & Caldwell, P.A.

13. Thank you! Leonard J. Dietzen, III, Esquire Rumberger, Kirk & Caldwell, P.A. P.O. Box 10507 Tallahassee, FL 32302-2507 (850) 222-6550 ldietzen@rumberger.com © 2015 Rumberger, Kirk & Caldwell, P.A.