Sun Prairie Cuts Health Care Costs & Raises Teacher Salaries – using the same Dean Healthcare Plan

Milwaukee reporter Amy Hetzner: A change in health insurance carriers was achieved by several Dane County school districts because of unique circumstances, said Annette Mikula, human resources director for the Sun Prairie School District. Dean Health System already had been Sun Prairie’s point-of-service provider in a plan brokered by WEA Trust, she said. So, after … Continue reading Sun Prairie Cuts Health Care Costs & Raises Teacher Salaries – using the same Dean Healthcare Plan

Racine Health Care Costs & Teacher Layoffs

Scott Niederjohn [PDF]: Facing a budget shortfall of $7.2 million this year, the Kenosha school district asked each of their labor groups to switch their health insurance provider from the WEA Trust to Minneapolis-based United Healthcare. The coverage offered by United Healthcare has the same benefits and cost sharing provisions as the WEA Trust plan … Continue reading Racine Health Care Costs & Teacher Layoffs

Insurance trumps teachers’ raises

Jake Rigdon: The dilemma has hit smaller school districts the hardest. According to unofficial estimates, health insurance premiums are expected to increase between 16 percent and 23 percent in the next school year in the Athens, Auburndale, Edgar, Marathon, Spencer, Stratford and Tomahawk school districts, affecting more than 460 teachers. Some districts pay 100 percent … Continue reading Insurance trumps teachers’ raises

Affordable Health Care: Four Wisconsin Proposals

A forum hosted by Progressive Dane and The Edgewood College Human Issues Program. Thursday, April 6th 6:30 to 8:30 at Edgewood College’s Anderson Auditorium, in the Predolin Humanities Center. Access to health insurance has become a national crisis, but there are bold, creative proposals to fix it. Please join us to hear four great proposals … Continue reading Affordable Health Care: Four Wisconsin Proposals

Teachers bar shift in health coverage

Madison’s teachers union said Friday it will not agree to reopen its contract with the School District to renegotiate health-care benefits, dashing hopes the district could find cheaper coverage. A joint committee of district and union representatives has been studying rising health- care costs, but both sides had to agree to reopen the 2005-07 contract … Continue reading Teachers bar shift in health coverage

One of these things is not like the others: School Board Oversees Task Forces Except When Savings in Health Care Costs at Stake

Recently, the Madison School Board has authorized a plethora of special committees to consider issues confronting the district and to make recommendations to the board. These committees have the potential to improve future board decisions by bringing new ideas and new information to our attention. Currently, there is a special committee to advise the board … Continue reading One of these things is not like the others: School Board Oversees Task Forces Except When Savings in Health Care Costs at Stake

Milwaukee Schools Health Care Coverage Changes

Alan J. Borsuk and Sarah Carr: Milwaukee Public Schools teachers will begin shouldering a larger share of the costs of their health care under an arbitrator’s ruling issued Tuesday. The decision ended 2 1/2 years of work on a two-year contract for more than 6,000 teachers with a victory for the School Board and the … Continue reading Milwaukee Schools Health Care Coverage Changes

Healthy Kids = Successful Kids; BadgerCare Can Help!

Getting school supplies, adjusting to a new morning routine, doing homework again, meeting new friends, and joining sports teams and after school clubs: it all adds up to make heading back to school a busy time for children and families. But Congresswoman Tammy Baldwin, Madison School Board member Johnny Winston, Jr., and a working family … Continue reading Healthy Kids = Successful Kids; BadgerCare Can Help!

Health Talks Won’t Be Secret

Jason Shepherd wrote about the nature of the Madison School District’s joint committee with MTI (Madison Teachers Inc.)regarding health care costs. Initially, according to Shepherd, Madison School Board President Carol Carstensen said that “the open meeting law does not apply to the committee”. KJ Jakobsen, a parent studying the District’s health insurance costs, wants to … Continue reading Health Talks Won’t Be Secret

Madison Schools Health Care Cost/Benefit Analysis

Following are remarks and attachments distributed to the MMSD Board of Education electronically and hard copy on Monday, June 6, 2005, by KJ Jakobson, who is a researcher working with Active Citizens for Education in matters related to health care benefits for school district employees.  Discussion and questions may be directed to KJ Jakobson directly … Continue reading Madison Schools Health Care Cost/Benefit Analysis

Koloen: School Board Should Question Health Care Costs

Jim Koloen (appeared in the Capital Times): Dear Editor: It is perplexing that the Madison School Board can approve a labor contract without actually having read it except through a summary provided by the administration. Why bother with a board at all if it simply behaves as though the administration and the board are one … Continue reading Koloen: School Board Should Question Health Care Costs

MTI’s Act 10 Case before Supreme Court Today (Recently)

Madison Teachers, Inc. Solidarity Newsletter (PDF), via a kind Jeannie Bettner Kamholtz:

In February 2011, Governor Walker, as he described it, “dropped the bomb” on Wisconsin’s public employees, the birthplace of public employee bargaining, by proposing a law (Act 10) which would eliminate the right of collective bargaining in school districts, cities, counties, and most of the public sector. Collective Bargaining Agreements provide employment security and economic security, as well as wage increases, fringe benefits, and as U.S. Supreme Court Justice Holmes said many years ago, an effective voice for employees in the workplace. Unions had achieved these rights and benefits in a half-century of bargaining. Ostensibly proposed to address an alleged budget shortfall, the Governor’s proposed Act 10 not only called for reductions in economic benefits for public employees (e.g. limits on employer contributions toward pensions and health care), but prohibited public employers from bargaining with nearly all public employees over any issue, other than limited wage increases, under which no employee could recover losses due to the increase in the Consumer Price Index. For example, under Act 10, teacher unions can no longer bargain over issues of school safety, class size, planning and preparation time, and health insurance; educational assistants can no longer bargain over salary progression, insurance coverage or training; clerical/technical workers can no longer bargain over work hours, vacation benefits or time off to care for sick children; and state workers can no longer bargain over whistle-blower protections. The intent of the Governor was to silence public employees on issues of primary importance to them and those they serve, and to eliminate their political activity. His stated extreme, no compromise, “divide and conquer” approach was to gain full power over employees. That resulted in MTI members walking out for four days to engage in political action. Soon thereafter thousands followed MTI members, resulting in the largest protest movement in State history.
MTI legally challenged Walker’s law and in September, 2012, MTI, represented by Lester Pines, and his partners Tamara Packard and Susan Crawford, prevailed in an action before Dane County Circuit Court Judge Juan Colas, wherein Colas found that most of Act 10 is unconstitutional. In ruling on MTI’s petition, Colas agreed that Act 10 is unconstitutional as it violates MTI members’ freedom of association and equal protection, both of which are guaranteed by the Wisconsin Constitution. This enabled MTI to bargain Contracts for its five (5) bargaining units for 2014-15. MTI’s are among the few public sector contracts in Wisconsin for 2014-15.

Adjuncts want, most immediately, more pay – a livable wage

Music for Deck Chairs:

Adjuncts want, most immediately, more pay – a livable wage. They want space on campus in which to work. They want benefits, of health insurance especially, and a budget for essential work-related expenses (such as computers and support for their maintenance and repair). They want job security: renewable contracts guaranteeing long-term or consistently longer-term employment; advance notice for teaching appointments. They wish, most broadly, for equality: a role in faculty governance; a stake in the curricular or operational decisions of the department; the respect and support of their tenured peers.
Noel Jackson, “A brief dispatch from Boston’s Adjunct Action Symposium”, this week

The US Campus Equity Week has just finished highlighting the working conditions of the off-track teachers who keep America’s higher education systems running. There are tropes here that don’t translate easily into the Australian context–working for Walmart wages, qualifying for food stamps, missing out on healthcare–but Rebecca Schuman’s drive to show search committees how bad things are is pretty frank. And it’s just as obvious here as there that the idea of graduate student teaching as a rite of passage towards a tenured career has become a redundant fantasy.
I think we’ve been slow to recognise this in universities because we’ve focused inwards and backwards, in the naive belief that things could be made better now just because they were different before. But the reality is that universities didn’t just lose their way momentarily; they are changing in step with the broader workforce, where middle class contingency is expanding beyond the traditional freelancing professions. As the 2010 Intuit Report intuited, it’s time to “imagine a world where contingent work is as common as traditional employment.”

Comments & Links on Madison’s Latest Teacher Union Agreement

Andrea Anderson:

Under the new contracts clerical and technical employees will be able to work 40-hour work weeks compared to the current 38.75, and based on the recommendation of principals, employees who serve on school-based leadership teams will be paid $20 per hour.
Additionally, six joint committees will be created to give employees a say in workplace issues and address topics such as planning time, professional collaboration and the design of parent-teacher conferences.
Kerry Motoviloff, a district instructional resource teacher and MTI member, spoke at the beginning of the meeting thanking School Board members for their collective bargaining and work in creating the committees that are “getting the right people at the right table to do the right work.”
Cheatham described the negotiations with the union as “both respectful and enormously productive,” adding that based on conversations with district employees the contract negotiations “accomplished the goal they set out to accomplish.”

Pat Schneider:

“Madison is in the minority. Very few teachers are still under contract,” said Christina Brey, spokeswoman for the Wisconsin Education Association Council. Fewer than 10 of 424 school districts in the state have labor contracts with teachers for the current school year, she said Wednesday.
And while Brey said WEAC’s significance is not undermined by the slashed number of teacher contracts, at least one state legislator believes the state teacher’s union is much less effective as a resource than it once was.
Many school districts in the state extended teacher contracts through the 2011-2012 school year after Act 10, Gov. Scott Walker’s law gutting collective bargaining powers of most public employees, was implemented in 2011. The Madison Metropolitan School District extended its teacher contract for two years — through the 2013-2014 school year — after Dane County Judge Juan Colas struck down key provisions of Act 10 in September 2012.
The contract ratified by the members Monday will be in effect until June 30, 2015.

Andrea Anderson:

On Thursday, the Wisconsin Institute for Law and Liberty emailed a letter to Cheatham and the School Board warning that a contract extension could be in violation of Act 10.
Richard Esenberg, WILL president, said he sent the letter because “we think there are people who believe, in Wisconsin, that there is somehow a window of opportunity to pass collective bargaining agreements in violation of Act 10, and we don’t think that.”
If the Supreme Court rules Act 10 is constitutional all contracts signed will be in violation of the law, according to Esenberg.
Esenberg said he has not read the contract and does not know if the district and union contracts have violated collective bargaining agreements. But, he said, “I suspect this agreement does.”

Pat Schneider:

The contract does not “take back” any benefits, Matthews says. However, it calls for a comprehensive analysis of benefits that could include a provision to require employees to pay some or more toward health insurance premiums if they do not get health care check-ups or participate in a wellness program.
Ed Hughes, president of the Madison School Board, said that entering into labor contracts while the legal issues surrounding Act 10 play out in the courts was “the responsible thing to do. It provides some stability to do the important work we need to do in terms of getting better results for our students.”
Hughes pointed out that the contract establishes a half-dozen joint committees of union and school district representatives that will take up issues including teacher evaluations, planning time and assignments. The contract calls for mediation on several of the issues if the joint committees cannot reach agreement.
“Hopefully this will be a precursor of the way we will work together in years to come, whatever the legal framework is,” Hughes said.
Matthews, too, was positive about the potential of the joint committees.

Wisconsin Institute for Law & Liberty:

WILL President and General Counsel Rick Esenberg warns, “The Madison School Board is entering a legally-gray area. Judge Colas’ decision has no effect on anyone outside of the parties involved. The Madison School Board and Superintendent Cheatham – in addition to the many teachers in the district – were not parties to the lawsuit. As we have continued to say, circuit court cases have no precedential value, and Judge Colas never ordered anyone to do anything.”
He continued, “If the Madison School District were to collectively bargain in a way that violates Act 10, it could be exposed to litigation by taxpayers or teachers who do not wish to be bound to an illegal contract or to be forced to contribute to an organization that they do not support.” The risk is not theoretical. Last spring, WILL filed a lawsuit against the Milwaukee Area Technical College alleging such a violation.

The Wisconsin Institute for Law & Liberty’s letter to Madison Superintendent Jennifer Cheatham (PDF).
The essential question, how does Madison’s non-diverse K-12 governance model perform academically? Presumably, student achievement is job one for our $15k/student district.
Worth a re-read: Then Ripon Superintendent Richard Zimman’s 2009 speech to the Madison Rotary Club:

“Beware of legacy practices (most of what we do every day is the maintenance of the status quo), @12:40 minutes into the talk – the very public institutions intended for student learning has become focused instead on adult employment. I say that as an employee. Adult practices and attitudes have become embedded in organizational culture governed by strict regulations and union contracts that dictate most of what occurs inside schools today. Any impetus to change direction or structure is met with swift and stiff resistance. It’s as if we are stuck in a time warp keeping a 19th century school model on life support in an attempt to meet 21st century demands.” Zimman went on to discuss the Wisconsin DPI’s vigorous enforcement of teacher licensing practices and provided some unfortunate math & science teacher examples (including the “impossibility” of meeting the demand for such teachers (about 14 minutes)). He further cited exploding teacher salary, benefit and retiree costs eating instructional dollars (“Similar to GM”; “worry” about the children given this situation).

Madison K-12 Tax & Spending Climate: City Budget Slows Spending Growth, K-12 School District Raises Taxes. 4.5%

Madison leaders say trimming city workers’ pay might be necessary:

Scheduled pay raises for union-represented city employees may need to be trimmed to help balance the 2014 city budget, Madison Mayor Paul Soglin and City Council President Chris Schmidt said Friday.
Schmidt said he didn’t relish the step — calling city workers “already underpaid for the jobs they do” — but he argued there could be no other choice.
Revenue limits under state law, rising city costs for fuel and health insurance, and a steadfast goal to protect funding for basic city services increasingly tie the city’s hands, he said.
“It’s understandable why it’s on the table, why we’re discussing it,” he said about the possible action, in which a 3 percent raise scheduled to start in the last pay period in December could be scaled back or eliminated for many employees in March.

Andrea Anderson:

Contract talks for Madison School District employees set to start this month, letter says contract negotiations for Madison School District employees are set to begin later this month, according to a letter sent Friday to district staff by superintendent Jennifer Cheatham and Madison Teachers Inc. executive director John Matthews.
Cheatham said in a phone interview that she and employee unions will be negotiating “as soon as we can” in order to create collective bargaining agreements that will take effect after the current contracts end in June 2014.
MTI asked the district to begin collective bargaining in May, but the new superintendent wanted to adjust to her role, become acquainted with the staff and hear their requests before bargaining with the teachers union and other employee unions.
Although the timeline is unclear, Cheatham said she expects to complete the contracts “fairly quickly” while also taking time to ensure the process is done correctly and has an outcome acceptable to all parties.

Much more on the Madison School District’s 2013-2014 budget (including a 4.5 property tax increase, after 9% two years ago), here.

End of union contract at the Milwaukee Public Schools ushers in new era

Alan Borsuk:

A friend of mine has two signs in her office. One says, “Stay calm and carry on.” The other says, “Freak out and throw things.”
Both offer paths to grasping the realities of Milwaukee Public Schools as the system reaches a milestone. Sunday is the last day of the contract between MPS and its teachers union, the Milwaukee Teachers’ Education Association. It is, at least for the foreseeable future, the end of the teacher contract era in MPS.
The teachers’ contract was a huge shaping force in MPS for roughly the last half century, setting not only pay and benefits, but lots of the operating rules for daily life. Especially in the last 15 years, as the price of health insurance and commitments to current and future retirees escalated, the contract drove the financial realities of MPS — and the direction was rather startling.
Now, the contract is gone. What impact will that have on MPS? A few observations:
Stay calm and carry on: In many ways, not much will be different. As is true in general in Wisconsin school districts, the contract is being succeeded by a “handbook,” a statement by management of what the rules of the school road will be. A lot of the provisions are in line with the past. A lot of school systems around the state have realized it’s good to have some stability and to keep teachers generally feeling they are being treated with some dignity and in ways that have some rationale.

Much more on “Act 10”, here.

Teacher Benefits Are Eating Away at Salaries

Chad Aldeman:

The big news out of the latest Public Education Finances Report is official confirmation that school districts spent less money per student in 2010-11 than they had the year before, the first one-year decline in nearly four decades. It’s worth taking some time to reflect on that fact, but the full report is also a valuable source of data on state and district revenues and expenditures and the entirety of the $600 billion public K-12 education industry. One key takeaway is that employee benefits continue to take on a rising share of district expenditures.
The table below uses 19 years of data (all years that are available online) to show total current expenditures (i.e. it excludes capital costs and debt), expenditures on base salaries and wages, and expenditures on benefits like retirement coverage, health insurance, tuition reimbursements, and unemployment compensation. Although it would be interesting to sort out which of these benefits have increased the most, the data don’t allow us to draw those granular conclusions. But they do tell us that teachers and district employees are forgoing wage increases on behalf of benefit enhancements.
From 2001 to 2011 alone, public education spending increased 49 percent, but, while salaries and wages increased 37 percent, employee benefits increased 88 percent. Twenty years ago, districts spent more than four dollars in wages to every one dollar they spent on benefits. Now that ratio has dropped under three-to-one. Benefits now eat up more than 20 percent of district budgets, or $2,262 per student, and those numbers are climbing.

Commentary on the Madison School District’s Floated 7.36% Property Tax Increase

Matthew DeFour

Madison School District property taxes for 2013 could increase 7.4 percent under budget recommendations being presented Monday to the Madison School Board.
That would be the biggest percent increase in the district’s property tax levy in a decade. Taxes on an average Madison home valued at $230,831 would total $2,855, a $182 increase from last year.
However, district officials cautioned the numbers likely will change once the state budget is finalized and new superintendent Jennifer Cheatham conducts a review of the district.
“Before I can feel comfortable recommending a tax increase I would want to make sure that every dollar is spent effectively and I can feel confident that the funds that we’re investing are going to pay off for students,” Cheatham said.

David Blaska

Did you get a 7.4% pay raise this year? State employees have forgone a pay raise the last couple years. They had to reach in their pockets to pay new health insurance and pension co-pays. Annuitants covered by the Wisconsin Retirement System have been treading water since 2009. Those who retired nine or more years ago are facing a 9.6% reduction in their pensions. Many of those, ironically, are retired teachers.
Yet the Madison School Board proposes a 1.5% across-the-board pay increase. Actually, reporter DeFour underreported the proposed pay increase. Add another 1% for the “step” increases to account for longevity to equal a 2.5% increase. Almost uniquely among taxpayer-supported employees these days, the district’s teachers still would pay nothing toward their generous health insurance benefits. Job security is nearly guaranteed. Meanwhile, the district acts as bagman for union boss John Matthews, deducting dues from teacher paychecks.
Can we expect the district to end that statutorily forbidden practice when the current contract expires after this June? Let’s hope so, unless the district hides behind Dane County Judge Juan Colas’ Act 10 ruling.
What would get the axe? Parent-teacher conferences. So much for addressing the achievement gap.

Related: Status Quo Costs More: Madison Schools’ Administration Floats a 7.38% Property Tax Increase; Dane County Incomes down 4.1%…. District Received $11.8M Redistributed State Tax Dollar Increase last year. Spending up 6.3% over the past 16 months.

2 Years Later … the Fire Still Burns February 14 Candlelight Vigil; MTI President Travels to Quebec

Madison Teachers, Inc. Solidarity Newsletter (PDF), via a kind Jeannie Bettner email:

On Thursday, February 14, MTI members are called to the Capitol (State Street entrance) commencing at 4:45 p.m., to commemorate the second anniversary of the uprising against Governor Walker’s anti-public employee legislation which destroyed collective bargaining and has caused significant loss in wages.
The legislation (Act 10) has, in effect, frozen wages and caused most public employees to pay a greater share of health insurance premiums and 50% of pension deposits.
MTI members will be joined by Union members of Madison Firefighters, Madison Police, AFSCME, SCFL and TAA, as well as other supporters of public schools for a solidarity sing-a-long and candlelight vigil to commemorate the two-year anniversary of our historic effort to fight back. Wear MTI Red in support of your MTI colleagues and public education in Wisconsin.
MTI President Kerry Motoviloff Takes MTI Advocacy & Political Experience to Quebec
Kerry Motoviloff, MTI President and 22-year veteran teacher, describes herself as the proud great- granddaughter of union organizers for immigrant workers in Worchester, MA. She was a member of the MTI Board of Directors as Secretary in 2011, when MTI members led the uprising against Governor Walker’s proposed anti-public employee legislation. She ran for MTI President later that spring.
Motoviloff spoke last week at the “Stand Up! Stay Strong!” Annual Conference of the Ontario Coordinating Committee, the Canadian Union of Public Employees (CUPE) which represents 55,000 education support workers in Toronto. Legislation that is similar to Wisconsin’s Act 10 is also threatening many other countries in the world, as well as public workers in numerous states. It is the product of the American Legislative Exchange Council (ALEC). Quebec’s proposed legislation would curtail the ability of Unions to participate in political action; control the Union’s ability to organize within the labor movement; and otherwise have a negative impact on collective bargaining.

Teachers’ benefits cuts offset much of school-aid losses

Jason Stein:

In the state budget, Walker and GOP lawmakers sharply reduced aid to schools and then also dropped by more than 5% the cap on how much money schools can raise through state aid and local property taxes.
To offset that cut amounting to $451 million in the first year, Walker and lawmakers eliminated through the Act 10 legislation most collective bargaining for teachers and most other public workers and then required most public employees to pick up at least half the required contributions to their pensions. The legislation also required state workers to pay 12% of their health insurance premiums and allowed schools to require the same of their employees.
These changes, however, don’t currently apply in districts such as Milwaukee Public Schools, where unions and the district still have a valid contract laying out different terms.
The taxpayers alliance found that districts reduced their benefit costs by $366.3 million overall, which amounted to 81% of the total amount of revenue cuts to schools. However, part of that was due to schools shedding staff.
The study found that, through layoffs or simply not filling vacancies, districts statewide cut 2,312 positions, or 2.3%, last year, up from 1,519 positions, or 1.5%, the previous year.
Those staff cuts accounted for about $79 million of the overall benefits savings. They also contributed to a statewide rise in average student-to-teacher ratios to 14.4, up from 14.1 in 2011 and 13.9 in 2010.

Commentary on Wisconsin K-12 Tax & Spending Policies

Dave Zweifel

According to the Department of Public Instruction, 272 of the state’s 424 public school districts will receive less aid for the 2012-2013 school year than they did last year. Although there was a slight increase in general school aid overall, public schools are receiving less because Gov. Scott Walker and the GOP Legislature not only trimmed a good billion dollars from public school spending, but expanded school choice vouchers and other goodies for private institutions at the expense of public schools.
All told, the state has taken away $900 from each of its public school students in the past five years, the bulk of which has come during Walker’s two years as governor. Much of that $900 decrease has been on the backs of public school teachers, who were stripped of their union representation and forced to pay more for their health insurance and pensions. In addition, some 2,300 teacher positions were eliminated in the 2011-2012 school year.

Related: Wisconsin State Tax Based K-12 Spending Growth Far Exceeds University Funding.

The Secret Document that Drives Standardized Testing

Richard P. Phelps, via a kind email:

n the excellent film The Insider, Jeffrey Wigand, an ex-tobacco company executive, faces a dilemma. In return for a severance package and the health insurance coverage it provides his family, he signs confidentiality agreements promising not to reveal the company’s research effort to boost the addictive power of cigarettes. When it appears that he is preparing to speak to journalists anyway, tobacco company-contracted PR hacks assassinate Wigand’s character in the national media, and local thugs threaten his family’s safety. In the end, Wigand strikes the match that blows up tobacco industry deceit on CBS’s Sixty Minutes televised investigative news program.
I was reminded of Wigand’s story recently when a testing industry executive warned me not to reveal the specifics of a secret document currently being written–a document that, in my judgment, will effectively embed the findings of fraudulent, biased research in educational testing into US law. Among the several nasty effects should be an enormous waste of taxpayer dollars on millions of new and worse-than-worthless “audit tests”. The number of tests administered to our elementary-secondary students could double in some areas, but the quality of the results available from all tests will deteriorate.
Though this document will profoundly affect all Americans, whether directly involved in education or not, you cannot see it before it is published in its final, legal form, as a fait accompli in early 2013. I and perhaps a few hundred other testing aficionados read an early draft in 2011 but, legally, we cannot show it to you. We all signed confidentiality agreements.
Education insiders are currently writing in secret what is arguably the single most influential document in US education and psychology. Last updated in 1999, the Standards for Educational and Psychological Testing is being revised and, if on schedule, will be presented in its completed form to the public in early 2013. (The testing Standards should not be confused with more common, and far more public, content standards, a.k.a. curriculum).

All MTI Bargaining Units Ratify Contracts Through June 30, 2014

Madison Teachers, Inc. Solidarity eNewsletter, via a kind Jeannie Bettner email:

Act 10, which Governor Walker designed to kill unions of public sector workers, caused massive protests in early 2011 because of it quashing peoples’ rights. And, that is the way Judge Colas saw it in ruling on MTI’s challenge to Act 10. Colas ruled that Act 10 violates the Constitutional rights of freedom of speech, freedom of association and equal protection of public sector union members (ruling did not address state employees). Enabled by Colas’ decision, MTI petitioned the Madison Metropolitan School District to commence negotiations over a Contract to succeed that which ends June 30, 2013.
Following Judge Colas’ order, both the City of Madison and Dane County negotiated new Contracts with their largest union, AFSCME Local 60. MTI, along with hundreds of supporters, pressed the MMSD to follow suit. After 37 hours of bargaining last Monday, Tuesday and Wednesday, negotiators for MTI, SEE- MTI (clerical/technical employees), EA-MTI (educational assistants and nurse assistants), SSA-MTI (security assistants) and USO-MTI (substitute teachers) were successful in reaching terms for a new Contract through June 30, 2014.
The Union achieved the #1 priority expressed by members of MTI’s five bargaining units in the recent survey, protecting their Contract rights and benefits, and keeping their Union Contract. The “just cause” standard for any kind of discipline or dismissal is in tact, as is arbitration by a neutral third party of any such action by the District, and of all claims that District administration violated the terms of an MTI Contract. The Union was also successful in preserving salary and wage schedules (except for substitutes), as well as fringe benefits, another priority of members responding to MTI’s recent survey.
Solidarity was evident from the outset as, for the first time ever, representatives from all five (5) of MTI’s bargaining units worked together to bargain simultaneously. Representatives from the Custodial and Food Service units, represented by AFSCME Local 60, also lent support throughout the negotiations, even as they were rushing to bargain new contracts for their members. And, in a powerful display of solidarity, MTI’s Teacher Bargaining Team repeatedly put forth proposals enabling the District to increase health insurance contributions for teachers, if the District would agree NOT to increase contributions from their lower paid brothers and sisters in MTI’s EA, SEE and SSA bargaining units. Unfortunately, the District rebuffed the offers, insisting that all employees work under the cloud of uncertainty that employee health insurance contributions may be increased up to 10% of the premium after June 30, 2013.
The District entered the negotiations espousing “principles that put student learning in the forefront, with a respect for the fact that our employees are the people who directly or indirectly impact that learning”. MTI heard these concerns and made major accommodations in many contractual areas to address these needs. Areas where MTI accommodated the District’s stated need to attract staff who can close the achievement gap: 1) enable the District to place new hires anywhere on the salary schedule; 2) give new hires a signing bonus of any amount; 3) appoint new hires and non-District employees to any coaching or other extra duty position (annual District discretion of continuing extra duty position); 4) current staff to have no right to apply for vacancies occurring after June 15, to enable District to offer employment to outsiders; 5) enable the District to assign new hires to evening/weekend teaching positions; and 6) enable the District to hold two evening parent-teacher conferences per school year.
Yet, other District proposals appeared to have nothing to do with either student achievement or respecting the employees who make that happen. The District insisted on eliminating sick leave benefits for all substitute teachers hired after July 1, 2013. The District insisted on language which would non-renew the contracts of teachers on medical leave for more than two years. And the District’s numerous other “take backs”, unrelated to either of their stated principles, but just to take advantage of the leverage enabled by the uncertainty of Act 10. These concessions were received bitterly by the thousand who gathered at Wednesday’s MTI meeting, hoping for positive signs that the District’s messages of respect would be reflected in the settlement.
On the downside was the District’s attack on other Contract provisions. In violation of the principles they espoused to Walker’s then-proposed Act 10, in February 2011, Board members enabled District management to demand concessions from AFSCME and MTI in exchange for a new Contract. All seven Board members said of Act 10, “The Governor’s proposals are a damaging blow to all our public services and dedicated public employees. The legislation’s radical and punitive approach to the collective bargaining process seems likely to undermine our productive working relationship with our teachers and damage the work environment, to the ultimate detriment of student achievement.”
Interim Superintendent Jane Belmore espoused similar feelings just last month. In referring to Act 10, she wrote District employees “… we still need to determine together how to go forward in the best interest of our employees and our district.”
The pledges of Board members and Supt. Belmore were not worth the paper they were written on. Demanding significant changes and deletion of terms which they had agreed – some since the 1960’s – the District negotiators were relentless.

Links:

Madison School District’s Teacher Union Bargaining Update

Matthew DeFour:

Matthews said a few proposals gave him “heartburn,” such as one that would allow the district to dismiss someone who had been on medical leave for two years. A proposal converting workloads from four class periods and one study hall to 25 hours per week could also give the district latitude to shorten class periods and increase each teacher’s number of classes, he said.
One change that Matthews said could be easily resolved is a proposal from both sides to make Unity health insurance available to employees. The district wants to be able to choose Physicians Plus, which it currently offers, or Unity, while MTI wants the district to offer both.
The union’s proposal seeks to reverse some of the changes that were negotiated before Act 10 took effect in 2011. They include giving teachers control over their time during Monday early release and deleting a clause that allows the district to require up to 10 percent health insurance premium contributions.

Madison Teachers’, Inc. Solidarity eNewsletter (PDF):

Last Monday’s Board of Education meeting brought a pleasant surprise. With nearly every chair and all standing room taken in the McDaniels’ Auditorium by MTI members in red solidarity shirts or AFSCME members sporting their traditional green, those present erupted in applause when Board of Education member Ed Hughes announced that Board members (who arrived 40 minutes late because of the length of their prior meeting) had agreed to bargain with MTI and AFSCME over Contract terms for 2013-14.
Governor Walker’s Act 10, which forbid public sector bargaining (except over limited wage increases) has been set aside by Circuit Court Judge Juan Colas who ruled that Act 10 violated the constitutional guarantee of freedom of speech, freedom of association, and equal protection, in response to MTI’s lawsuit.
Honoring a vote majority of 76% in Madison and 68% in Dane County, Mayor Soglin and County Executive Parisi have negotiated contracts through June 2015 with City and County employees.
Now the Madison Board of Education has seen the light. Negotiations in the District are to commence today. MTI members should stay in contact with their elected leaders and via MTI’s webpage (www.madisonteachers.org) as regards the Contract ratification process.

Madison Teachers’ Solidarity Newsletter

Madison Teachers’, Inc. 65K PDF, via a kind Jeannie Bettner email:

Members of MTI’s Board of Directors and Union staff greeted the District’s newly hired teachers at New Teacher Orientation on Monday. There are 250 new members of MTI’s teacher bargaining unit.
MTI Executive Director John Matthews addressed the District’s new teachers during their Tuesday session. In doing so, Matthews provided a brief history of the Union, its reputation of negotiating outstanding Collective Bargaining Agreements which provide both employment security and economic security, and in explaining the threat to both, given Act 10, said all MTI members would need to pull together to preserve the Madison Metropolitan School District as a quality place to teach.
Matthews told the new hires that these benefits and rights, along with MTI’s action to assure due process and workplace justice, has earned MTI the reputation of being one of the best Unions in the country. To illustrate the magnitude of MTI’s accomplishments over the years, Matthews told about school board policy mandating female teachers, through the early 1970’s, having to advise their principal “immediately upon becoming pregnant”, and being obligated to resign when the pregnancy “began showing.” As a result of MTI’s accomplishments, such antiquated, degrading policies are history, he said.
Matthews also cited MTI’s precedent setting accomplishments in advancing employee rights regarding race, religion, sexual orientation, and negotiating such things as the school calendar and health insurance. Until the early 1970’s, the school calendar only accommodated Christian holidays. MTI’s litigation expanded the benefit to cover all religions.
Continue the Awareness, Continue the Protest, Wear Red for Education
Since February, 2011, MTI members have been tirelessly protesting and working to end the disastrous impact on public sector workers of Governor Scott Walker’s union busting destructive budget. The most important reasons for resistance vary from one union member to another and include: the Legislation jeopardizes children’s future and the viability of public education and other public services; its provisions are dishonest and immoral; they constitute an attack on Wisconsin’s working-class and middle-class values; they ask for no shared sacrifice from the wealthy or profitable corporations.
Payroll checks for all public employees have been substantially lessened because of Act 10, causing financial hardship for many families. Walker’s Law forces all public employees to pay 50% of retirement contributions, even though MTI and the Madison Metropolitan School District have agreed as part of one’s total compensation package dating to the early 1970’s, that the District would pay 100% of the contribution and many have increased contributions for health insurance.
MTI leaders are working with other public sector union leaders across Wisconsin to reverse this disastrous legislation.
Ready, Set, Goal Conferences
As previously reported in MTI Solidarity!, the Ready, Set Goal (RSG) memorandum has been amended, as a result of grievance mediation.
The Memorandum of Understanding between MTI and the Madison Metropolitan School District, which governs RSG Conferences has been amended to include the following parameters which apply, when determining the amount of compensation due a teacher for holding RSG Conferences during times other than scheduled school day(s)/ hours:

  • Teachers receive up to 15 minutes per student for conference preparation.
  • Teachers receive up to 30 minutes for each conference held.
  • Teachers are compensated for up to two parent “no shows” per student, at 30 minutes per scheduled conference. Teachers are not obligated to schedule a RSG conference after there have been two parent “no shows”. However, a teacher will be compensated pursuant to Section 2b (second bullet above), if the teacher thereafter holds a RSG conference for the student.
  • Compensation will continue to include traveling to/from homes of parents, or other mutually agreed upon meeting place(s), or traveling to/from school if the conferences are not at a time adjacent to the Contract day. Mileage shall be paid in accordance with the terms and conditions of the Collective Bargaining Agreement and reasonable expenses for refreshments shall be reimbursed.

The full RSG agreement is located on MTI’s website (www.madisonteachers.org). Questions can be directed to Assistant Director Eve Degen at MTI (257-4091 or degene@madisonteachers.org).

As Medi-Cal soars, higher education loses

Maura Casey:

The U.S. Supreme Court decision upholding the Obama administration’s health care law opens the door for millions more to get coverage through the expansion of Medicaid, the public health insurance for the poor. But if history is any guide, college students could feel the pinch as states cut aid to higher education to expand health care.
Why? Now Medicaid is split between states and the federal government. And although the federal government will pay the entire cost of the expansion beginning in 2014, three years later states will have to begin sharing the cost. That might leave less money than ever for higher education. The result: higher tuition and fees as academic institutions scramble for ever-scarcer dollars from state budgets.

Timing is right for MPS to consider a longer day

Milwaukee Journal-Sentinel:

The recall race for governor is over, and with teachers union contracts coming to an end, Milwaukee Public Schools Superintendent Gregory Thornton may have an opportunity to bargain for things that he could not have gotten if it were not for Act 10, the law that sharply curtailed collective bargaining for most public workers.
So far, Thornton and the School Board have been quietly active. The board voted to require employees to contribute more to their health insurance premiums and retirement benefits, a move that will reduce the district’s deficit and save millions of dollars that can be reallocated to the classroom. Years of rising benefits and retirement costs combined with budget cuts were choking the life out of MPS. With the last of the union contracts coming to an end in 2013, Thornton and the board will have more flexibility.
But it will take more than asking for bigger contributions from the rank and file to improve the district’s performance. Right now, MPS ranks near the bottom for urban districts in the United States in fourth- and eighth-grade reading for minority boys. Last month, Thornton said he was disappointed that he has not been able to move the needle.

The Expense of Teacher Union Contracts

Steve Gunn, Research by Victor Skinner:

The School District of Philadelphia is facing a $218 million budget deficit in fiscal 2013, with forecasts for a $1.1 billion shortfall by 2017.
The district’s School Reform Commission has responded with a controversial plan to close as many as 60 schools over the next five years and divert about 40 percent of the district’s students into public charter schools, according to media reports.
The plan has been met with a great deal of resistance from the Philadelphia Federation of Teachers. Nobody knows at this point if the money-saving plan will be implemented, or how the district will find its way out of its deficit situation.
In the meantime, it’s clear that the school district is in the midst of a severe financial emergency, and must find a way to cut costs without negatively impacting students.
A good place to start would be the PFT’s collective bargaining agreement.
We recently inspected a copy of the agreement, then used a freedom of information request to measure the costs of various provisions in the contract for the 2010-11 school year.
We found numerous examples of huge costs that could have been postponed, trimmed or cancelled to save the district millions of dollars without affecting anyone’s base salary.
The list included $14.4 million to cover a three percent salary increase for teachers, a $66 million contribution to the union’s “Health and Welfare Fund” and $165 million for free- or low- cost employee health insurance.

$9,860/student vs. $14,858.40/student; Paying for Educational Priorities and/or Structural Change: Oconomowoc vs. Madison

Chris Rickert summarizes a bit of recent Madison School Board decision making vis a vis educational outcomes. Contrast this with the recent governance news (more) from Oconomowoc; a community 58 miles east of Madison.


Moreover, it’s not like Madisonians are certain to oppose a large tax hike, especially given the way they responded to Walker’s bid to kill collective bargaining.
Before that idea became law, the board voted for — and the community supported — extending union contracts. Unions agreed to some $21 million in concessions in return for two years’ worth of protection from the law’s restrictions.
But the board could have effectively stripped the union of seniority protections, forced members to pay more for health insurance, ended automatic pay raises and taken other actions that would have been even worse for union workers — but that also would have saved taxpayers lots of money.
Board members didn’t do that because they knew protecting employees was important to the people they represent. They should be able to count on a similar dedication to public schooling in asking for the money to pay for the district’s latest priorities.

Christian D’Andrea

The changes would have a significant effect on teachers that the district retains. Starting positions – though it’s unclear how many would be available due to the staff reduction – would go from starting at a $36,000 salary to a $50,000 stipend. The average teacher in the district would see his or her pay rise from $57,000 to $71,000. It’s a move that would not only reward educators for the extra work that they would take on, but could also have a significant effect in luring high-level teachers to the district.
In essence, the district is moving forward with a plan that will increase the workload for their strong teachers, but also increase their pay to reflect that shift. In cutting staff, the district has the flexibility to raise these salaries while saving money thanks to the benefit packages that will not have to be replaced. Despite the shuffle, class sizes and course offerings will remain the same, though some teachers may not. It’s a bold move to not only retain the high school’s top performers, but to lure good teachers from other districts to the city.
Tuesday’s meeting laid out the first step of issuing non-renewal notices to the 15 teachers that will not be retained. The school board will vote on the reforms as a whole on next month.

The Madison School District has, to date, been unwilling to substantively change it’s model, one that has been around for decades. The continuing use of Reading Recovery despite its cost and lower than average performance is one example.
With respect to facilities spending, perhaps it would be useful to look into the 2005 maintenance referendum spending & effectiveness.
It is my great “hope” (hope and change?) that Madison’s above average spending, in this case, 33% more per student than well to do Oconomowoc, nearby higher education institutions and a very supportive population will ultimately improve the curriculum and provide a superior environment for great teachers.

THE BAD OLD DAYS OF COLLECTIVE BARGAINING: Why Act 10 Was Necessary for Wisconsin Public Schools

Steve Gunn, Victor Skinner:

Not so long ago, the Wisconsin Education Association Council (WEAC), the state’s largest teachers union, sported the motto, “Every child deserves a great school.”
The irony of that motto was not lost on school administrators, particularly in more recent years, as they struggled to balance budgets while local WEAC unions refused to accept financial concessions that would have helped maintain quality programming for students.
In school district after school district, layoffs have occurred, class sizes have increased and student programs have been cut, partially because many
unions refused to accept temporary pay freezes, or pay a bit more toward their own health insurance or pension costs.
This was happening all over the state, even before Gov. Scott Walker was elected and his biannual budget slowed the rate of state aid to schools.
The problem is not difficult to understand. Most public school administrators tell us they spend between 75-85 percent of their total budgets on labor costs, mostly for salaries and benefits for union teachers. If a budget crisis hits and spending cuts are needed, school boards will logically look at the biggest part of the budget.
But under the old collective bargaining system, local teachers unions had broad legal power to reject cuts in labor costs, and frequently did so. With 80 percent of the budget often untouchable, school boards had little choice but to cut from the 20 percent that has the most profound effect on students.
Something is definitely wrong with that picture, if you believe that schools exist primarily to benefit children.

Metlife Survey of the American Teacher

MetLife, Dana Markow, Andrea Pieters:

The MetLife Survey of the American Teacher: Teachers, Parents and the Economy (2011) examines the teaching profession and parent-school engagement at a time when there has been a prolonged economic downturn.
The survey explores how teachers, parents and schools are working together to promote student learning and healthy development in the context of reduced budgets, reallocation of resources, and continued attention to improving teaching and learning. These issues are examined from the perspectives of teachers, parents and students.
Teachers are less satisfied with their careers; in the past two years there has been a significant decline in teachers’ satisfaction with their profession. In one of the most dramatic findings of the report, teacher satisfaction has decreased by 15 points since the MetLife Survey of the American Teacher measured job satisfaction two years ago, now reaching the lowest level of job satisfaction seen in the survey series in more than two decades. This decline in teacher satisfaction is coupled with large increases in the number of teachers who indicate that they are likely to leave teaching for another occupation and in the number who do not feel their jobs are secure.
Several factors distinguish teachers with high job satisfaction from those with lower satisfaction. Teachers with high job satisfaction are more likely to feel their jobs are secure and say they are treated as a professional by the community. They are also more likely to have adequate opportunities for professional development, time to collaborate with other teachers, more preparation and supports to engage parents effectively, and greater involvement of parents and their schools in coming together to improve the learning and success of students.
Overall, majorities of both parents and teachers say teachers are treated as professionals by the community and that teachers’ health insurance and retirement benefits are fair for the work they do. However, majorities of parents and teachers do not feel that teachers’ salaries are fair for the work they do.

U (of Minnesota) execs are paid handsomely on their way out

Tony Kennedy & Jenna Ross:

Since retiring 18 months ago as chancellor at the University of Minnesota Duluth, Kathryn Martin has collected more money from the U than she did in her last two years on the job.
One of nearly a dozen university executives to step down in the past two years, Martin was granted a two-month sabbatical, a 15-month “administrative transitional leave,” a final deposit to her retirement fund, and a severance check. Total: $535,700.
Hers was the biggest in a series of compensation packages signed by former university President Robert Bruininks worth more than $2.8 million. The deals routinely granted top administrators lengthy paid leaves, then allowed them to return to faculty positions or depart the U’s payroll.
A Star Tribune review of university documents shows that seven of 10 high-ranking officials in the Bruininks administration, including the former president himself, received at least a year off with pay at their executive salaries, as well as retirement and health insurance contributions. The deals often were vague about what the administrators would do on leave. Bruininks also repeatedly waived a university policy that executives repay their stipends in the event they left the U while on leave.

Wisconsin Education Association Trust tries to adapt to changes in state law

Guy Boulton:

Politicians vilifying health insurance companies isn’t uncommon. But WEA Trust has the distinction of being attacked not by liberal Democrats but by conservative Republicans.
WEA Trust’s core business is selling health insurance to school districts. And the company – an outgrowth of the state’s largest teachers union but an independent, nonprofit company – became a frequent target in the clash over teachers’ benefits and collective bargaining.
Critics contended that WEA Trust’s rates were higher than its competitors and that school districts could save money by switching to other health insurers if benefits were not subject to collective bargaining.
WEA Trust countered that its rates were competitive and that school districts spent more on health insurance than private employers because the districts provided better benefits as part of teachers’ compensation.
The coming years will determine who is right. So far, no clear answer has emerged.
WEA Trust, one of the state’s largest health insurers, has lost about a third of its business with school districts now that state law excludes health benefits from union contracts. But it also has won some new customers and become a significant competitor in the market to insure state employees.

Positioning The Madison School District’s 2012-2013 Budget

Matthew DeFour

Madison School District officials hope to avoid layoffs and spare employees from contributing to their health insurance premiums next school year, though to do so they might have to raise property taxes.
Superintendent Dan Nerad won’t make his preliminary budget recommendations until April 1, but in its first look at the 2012-13 school budget, the district is projecting a $12.4 million deficit based on current budget trends.
Factoring in rising insurance and fuel costs, the district projects general fund spending of $319.7 million, up from $310.9 million this year. Revenues are projected to be $307.3 million.
The district is looking at several options to close the gap, such as eliminating its most expensive health insurance option, renegotiating nonunion employee contracts, energy efficiency projects, refinancing debt and raising property taxes, said Erik Kass, assistant superintendent for business services.
“The hope is we won’t have to take more out of employee pockets or do any layoffs,” Kass said.

Unfortunately, DeFour’s article does not include the District’s total proposed spending, rather it mentions just one portion. It would be better to not mention such incomplete numbers, rather than further muddying the often challenging budget “transparency”. The District will spend roughly $370,000,000 +/- a few million in 2011-2012:

2011-2012 Revised Budget 1.3MB PDF (Budget amendments document). District spending remains largely flat at $369,394,753, yet “Fund Equity”, or the District’s reserves, has increased to $48,324,862 from $22,769,831 in 2007 (page 24). The District’s property tax “underlevy” (increases allowed under Wisconsin school revenue limits which are based on student population changes, successful referendums along with carve-outs such as Fund 80, among others) will be $13,084,310. It also appears that property taxes will be flat (page 19) after a significant 9% increase last year. Interestingly, MSCR spending is up 7.97% (page 28).
2011-2012 enrollment is 24,861. $369,394,753 planned expenditures results in per student spending of $14,858.40.

Related: Wisconsin Property Tax Growth: 1984-2012 (!).

California Governor Brown should give ‘thumbs down’ on autism-linked education bill

Patrick Johnston:

Hundreds of pieces of legislation are sitting on Governor Jerry Brown’s desk awaiting his proverbial “thumbs up” or “thumbs down.” Gov. Brown has already warned that many of these bills will be vetoed, saying that there will be “plenty of veto blues.”
One bill that regretfully deserves a veto is Senate Bill 946 (Steinberg). It would impose a costly new mandate for private health insurance to pay for educational non-medical services for children with autism, while exempting the public health programs — Medi-Cal and Healthy Families — from the requirement to cover the same therapy.
The bill was jammed through the legislature at the last possible moment without sufficient time for debate or evaluation of the potential consequences of passage. While on the surface it may seem like a well-intentioned bill, it is riddled with flaws and in the end will do more harm than good.

WEA Trust demands talk show host ‘cease and desist’

Wisconsin Reporter:

WEA Trust doesn’t like what Mark Belling has to say, and the health insurer wants the conservative talk show host to “cease and desist.”
WEA Trust, which bills itself on its website as a not-for-profit insurance group for Wisconsin public school employees and their families, today sent a letter to the afternoon, drive-time, radio host at 1130 WISN in Milwaukee, demanding Belling stop making what WEA Trust describes as “defamatory public accusations.
Belling repeatedly has accused the private health insurance company of “racketeering” by transferring its revenue to the Wisconsin Education Association Council, or WEAC, the state teachers union, an act that would be illegal under state and federal law.

Wisconsin K-12 Spending Commentary

Sunny Schubert:

You may have read some news stories lately about how some school districts are doing quite well under Gov. Scott Walker’s budget, despite a drastic decline in school aid.
Monona Grove is not one of them.
“We’re not great,” said MGHS Superintendent Craig Gerlach of the district’s financial situation.
Districts that have prospered under the Walker budget constraints “may have been in a better situation than we were beforehand,” he said.
The Walker budget is slightly more rewarding to school districts that have growing student populations, he said, “but we’re more in the ‘slightly declining’ enrollment situation.”
The district spends about $13,000 per student, Gerlach said, but will receive about $600 less per pupil this year than last.
MGSD will also lose about $1.2 million in other state money.
The budget is “relatively balanced” this year, partly because the district received $850,000 in federal job stimulus funds, but that is one-time money that won’t be around next year.
MGSD did save some money because teachers are now being forced to contribute to their own health insurance and retirement funds.

Peter Sobol:

Total Wi school funding in 1998 was $7,527, not the $4,956 reported by Sunny in her recent column. Corrected for inflation that’s $9899. In 2008 average spending was (correctly reported) $10,791. In real dollars that’s an 8% increase, less than 1% per year, not the whopping 64% increase reported by Sunny.
So were did that 1%/year go? Not into the pockets of teachers, who have been losing ground to inflation in the last decade, and not into smaller class sizes (average class size has been creeping up in Wisconsin.) No, any employer will tell you that health care costs have been increased by more than 50% over this period – and school districts feel the same effects. The fact that cost increases are slowly squeezing the life out of our schools is another reason we need to fix the broken health care system in this country.



Wisconsin State Tax Based K-12 Spending Growth Far Exceeds University Funding.

Handbooks replace union contracts in Wisconsin schools

Erin Richards:

Some are calling it the summer of the teacher handbook.
With the start of school approaching on Sept. 1, about two-thirds of Wisconsin’s school districts are rushing to finalize employee handbooks to replace now-extinct collective bargaining agreements that for decades outlined duties and salaries for workers.
The passage of the state’s new “Act 10” legislation – in effect for all districts that didn’t extend a contract with teachers before the passage of the law – gives administrators the ability to make sweeping changes to teachers’ pay scales, hours and working conditions without having to negotiate them with unions.
Some sacred cows are disappearing, such as teacher tenure, layoffs based on seniority and the guarantee of 10 years’ worth of post-retirement health insurance. Other big and complex changes on the horizon include new salary structures and pay-for-performance plans.

Detroit Public School union leaders creating response to contract break

Candace Williams:

Detroit Public School union leaders said today they will use the weekend to strategize a response to the district breaking eight union contracts Friday to impose a 10 percent wage cut and increase employees’ health insurance contributions.
“We’re meeting with attorneys over the weekend and on Monday to outline what we’re going to do and how we’re going to do it,” said Keith Johnson, president of the Detroit Federation of Teachers. The response could include a court challenge, Johnson said.
Emergency Manager Roy Roberts’ order affects nearly 10,000 union and nonunion employees. The district, with a $327 million deficit, would save $81.8 million, officials said.
Teachers will have to contribute 20 percent toward their health care. Teachers will see a 10 percent cut in pay starting with their Sept. 20 paycheck, Johnson said.

Wisconsin Education Association Trust defends its actions as insurer

Karen Herzog and Erin Richards:

A health insurance company affiliated with the state’s largest teachers union is caught in the cross-fire of Wisconsin school reform politics, the company’s CEO told the Journal Sentinel editorial board Monday.
“We haven’t really wanted to be the story,” said Mark Moody, president and CEO of WEA Trust. “We’ve become the lightning rod for debate.”
Moody said WEA Trust has lost about 17% of its subscribers as a number of school districts have switched insurance providers in the wake of deep state budget cuts. WEA Trust at the start of the year insured two-thirds of Wisconsin’s 424 school districts, but only 35% of the state’s teachers, since many of the insured districts are small, he said.
One renewal sweetener WEA Trust offered to districts – which the provider said was done in accordance with federal rules – may prompt legal action.

Why Faculty Productivity Data Matters

Rick O’Donnell:

First, a college education costs too much. Middle-class families can no longer afford tuition that increases faster than inflation, per capita personal income, consumer prices and even health insurance. Total student loan debt in America is $1 trillion and exceeds credit card debt. Taxpayer money stretches only so far, with health care, public safety and K-12 education claiming ever larger shares of state budgets.
Second, the higher education industry is undergoing a complete restructuring. Technology is fundamentally altering how courses are created and taught while upending the cost structure of delivery. New entrants – from for-profit white-label degree providers like 2tor to nonprofits like Khan Academy – are bringing disruptive innovation.

Balanced Budgets and Free Lunches in Kaukauna

Madison School Board Member Ed Hughes:

The provisions of the Budget Repair Bill have gone into effect. For school districts that (unlike Madison) did not extend their collective bargaining agreement with their teachers unions, it is a brand new day.
In those districts, collective bargaining agreements are essentially gone and the districts have much wider discretion over compensation and working conditions for their teachers and other staff.
The Kaukauna School District is one that has taken advantage of the Budget Repair Bill provisions. Like nearly all school districts, Kaukauna now requires its teachers and staff to pay the employees’ share of their retirement contributions, which amounts to 5.8% of their salary, and is also requiring a larger employee payment toward the cost of health insurance, up to 12.6% from 10%.
The district also took advantage of the expiration of its collective bargaining agreement to impose a number of other changes on its teachers. For example, it unilaterally extended the work day for high school teachers from 7.5 to 8 hours and increased the teaching load from five to six high school classes a day.

Wisconsin School districts receive state aid estimates

Karen Herzog:

School districts have known for months that their state aid would be significantly cut for the new fiscal year that begins July 1. Today, reality hits home.
General state aid estimates were released this morning for school districts to plug into budgets until final numbers are available in October.
As expected, 410 of the state’s 424 public school districts will receive less aid for the 2011-’12 fiscal year than for fiscal 2010-’11, according to the state Department of Public Instruction, which is required by law to provide general state aid estimates to school districts each July 1.
Many school districts handled the cuts by increasing employee contributions to health care and retirement when contracts expired this week, as part of the state’s new collective bargaining law.
Kaukauna School District, which is expected to lose $2.75 million in state aid, was able to swing a $400,000 budget deficit into an estimated $1.5 million surplus by asking workers to pay more for health insurance and contribute pay toward their pensions, the Post-Crescent in Appleton reported. That district plans to hire teachers and reduce class size.

Don’t cry for teachers who choose early retirement

Chris Rickert:

One indication of how disingenuous the world of public education has become is the sympathy some of us apparently feel for veteran Madison teachers who feel compelled to retire early.
As this newspaper detailed Sunday, early retirements have spiked over concerns about what Gov. Scott Walker’s bid to curtail public sector collective bargaining rights will mean for teachers’ retirements.
It’s clear teachers beginning their careers today could be subjected to lots of things the private sector has had to endure for a long time (e.g., merit evaluations, higher health care costs). What puzzles me is what veteran teachers risk by working a few more years — especially given the love they express for the job.
Take, for example, teachers’ ability to parlay unused sick days into health insurance coverage or other benefits after they retire.
District spokesman Ken Syke said the district’s legal team has not produced an opinion on this. But teachers union president John Matthews was certain it was a benefit long-time teachers would retain.

Rep. Sondy Pope-Roberts: Walker’s budget numbers for schools flawed

Sondy Pope-Roberts:

In the weeks ahead the biennial budget will be the dominant focus of the Legislature. Gov. Scott Walker has introduced his budget plan for Wisconsin, and while there are a number of troubling provisions, perhaps one of the most troubling is the drastic changes to public education that he proposes.
According to the Department of Public Instruction, school districts are expected to lose $1.68 billion in revenue authority and $835 million in state school aids over the next biennium. The governor has repeatedly touted the savings, tools and other reform measures that he says would soften the blow and even enhance education.
However, reducing the levy authority of school districts mandates a reduction in total spending, and changes to health insurance and pension contributions alone won’t suffice to cover the difference. That means layoffs, a decision made by Walker and not by local school districts.
The governor recently went to great lengths to highlight projected savings and other ways school districts would benefit under his budget. My office compiled a spreadsheet that outlines the inaccuracies in the governor’s projections. To outline the serious budgeting flaws, we relied on numbers from the nonpartisan Legislative Fiscal Bureau and the governor himself.

The adjunct economy: Universities rely on part-timers to do most of their teaching. So they should treat us better.

Nick Parker:

Early on Monday mornings, in my classroom at Babson College, I shepherd 30 undergraduates into the room with a smile and a “How are you?” or a “Good morning.” From my seat, I have a clear view down a corridor to another classroom, where I can sometimes glimpse a colleague from my department offering the same perfunctory greetings. While we have a lot in common – PhDs from respected institutions, years spent writing and publishing, a passion for teaching – there is something that divides us: He is a tenure-track professor and I am an adjunct lecturer.
In the world of academia, the distinction between these job titles is a huge one. Tenure-track professors are hired by universities to do a combination of teaching and research and to help their departments develop. Pending a major review of their performance after five or six years – when they try to win tenure, which pretty much guarantees a job for life – tenure-track professors are essentially full-time members of the faculty. Their positions usually come with a range of benefits like health insurance and periodic semester-long sabbaticals.
On the other side of this divide, adjunct faculty members (whose positions are sometimes described by other labels such as “lecturer,” “contingent faculty,” or “instructor”) are exclusively teachers. They generally work on a system of semester-to-semester contracts, rarely enjoy benefits, and often are considered part time, regardless of the amount of teaching they do.

Uncertain about future benefits, many veteran teachers are retiring early

Erin Richards & Amy Hetzner:

Two days before the April 1 teacher retirement notification deadline in Milwaukee Public Schools, Karen Scharrer-Erickson drove to the district’s human resources office on her lunch break.
The teacher of 43 years entered the room. Then she burst into tears.
“I am totally not ready,” Scharrer-Erickson, a literacy coach at the Academy of Accelerated Learning, said this week. “I never thought about retiring until the (Gov.) Scott Walker situation, because this school is so special and I am working with the most incredibly caring teachers I have ever known.”
At a time when the governor’s plan to eliminate most collective bargaining for teachers and increase state employees’ payments for health care and pension costs looms overhead, some school districts are seeing record numbers of senior teachers such as Scharrer-Erickson turn in their retirement paperwork.
Although their pensions are beyond the reach of lawmakers and local officials, many teachers fear that changes could mean they soon could lose early retirement benefits such as health insurance that helps support them until they are eligible for Medicare.

MISSED ADJUSTMENTS and OPPORTUNITIES RATIFICATION OF Madison School District/Madison Teachers Collective Bargaining Agreement 2011-2013

The Madison Metropolitan School District Board of Education and the Madison Teachers, Inc. ratified an expedited Collective Bargaining Agreement for 2011-2013. Several significant considerations were ignored for the negative impact and consequences on students, staff and taxpayers.
First and foremost, there was NO ‘urgent’ need (nor ANY need at all) to ‘negotiate’ a new contract. The current contract doesn’t expire until June 30, 2011. Given the proposals regarding school finance and collective bargaining processes in the Budget Repair Bill before the legislature there were significant opportunities and expectations for educational, management and labor reforms. With such changes imminent, there was little value in ‘locking in’ the restrictive old provisions for conducting operations and relationships and shutting the door on different opportunities for increasing educational improvements and performances in the teaching and learning culture and costs of educating the students of the district.
A partial listing of the missed adjustments and opportunities with the ratification of the teacher collective bargaining agreement should be instructive.

  • Keeping the ‘step and advancement’ salary schedule locks in automatic salary increases; thereby establishing a new basis annually for salary adjustments. The schedule awards increases solely on tenure and educational attainment. This also significantly inhibits movement for development and implementation of ‘pay for performance’ and merit.
  • Continues the MOU agreement requiring 50% of teachers in 4-K programs (public and private sites combined) to be state certified and union members
  • Continues required union membership. There are 2700 total or 2400 full-time equivalent (FTE) teachers, numbers rounded. Full-time teachers pay $1100.00 (pro-rated for part-time) per year in automatic union dues deducted from paychecks and processed by the District. With 2400 FTE multiplied by $1100 equals $2,640,000 per year multiplied by two years of the collective bargaining unit equals $5,280,000 to be paid by teachers to their union (Madison Teachers Inc., for its union activities). These figures do not include staff members in the clerical and teacher assistant bargaining units who also pay union dues, but at a lower rate.
  • Continues to limit and delay processes for eliminating non-performing teachers Inhibits abilities of the District to determine the length and configuration of the school day, length and configuration of the school year calendar including professional development, breaks and summer school
  • Inhibits movement and placement of teachers where needed and best suited
  • Restricts adjustments to class sizes and teacher-pupil ratios
  • Continues very costly grievance options and procedures and litigation
  • Inhibits the District from developing attendance area level teacher/administrator councils for collaboration in problem-solving, built on trust and relationships in a non-confrontational environment
  • Continues costly extra-duties and extra-curricular agreements and processes
  • Restricts flexibility for teacher input and participation in professional development, curriculum selection and development and performance evaluation at the building level
  • Continues Teacher Emeritus Retirement Program (TERP), costing upwards to $3M per year
  • Does not require teacher sharing in costs of health insurance premiums
  • Did not immediately eliminate extremely expensive Preferred Provider (WPS) health insurance plan
  • Did not significantly address health insurance reforms
  • Does not allow for reviews and possible reforms of Sick Leave and Disability Leave policies
  • Continues to be the basis for establishing “me too” contract agreements with administrators for salaries and benefits. This has impacts on CBAs with other employee units, i.e., support staff, custodians, food service employees, etc.
  • Continues inflexibilities for moving staff and resources based on changes and interpretations of state and federal program supported mandates
  • Inhibits educational reforms related to reading and math and other core courses, as well as reforms in the high schools and alternative programs

Each and every one of the above items has a financial cost associated with it. These are the so-called ‘hidden costs’ of the collective bargaining process that contribute to the over-all costs of the District and to restrictions for undertaking reforms in the educational system and the District. These costs could have been eliminated, reduced, minimized and/ or re-allocated in order to support reforms and higher priorities with more direct impact on academic achievement and staff performance.
For further information and discussion contact:
Don Severson President
Active Citizens for Education
donleader@aol.com
608 577-0851
100k PDF version

Wisconsin DPI Superintendent Tony Evers’ Budget Testimony

Questions, via WisPolitics:

JFC co-chair Robin Vos, R-Rochester, said in the last budget, cuts to K-12 education were offset by millions of stimulus dollars from the federal government.
“It was a luxury that was great at the time,” he said. “Now we don’t have that one-time money.”
While he admitted that the “tools” Gov. Walker provides may not offset funding cuts dollar-for-dollar, he said asking teachers to pay more for health insurance coverage and pension will help. Vos then asked Evers if he supports the mandate relief initiatives Walker proposed in his budget.
Evers said the mandates, which include repealing the requirement that schools schedule 180 days instruction but retains the required number of hours per school year, won’t generate much savings for school districts. He said the challenge schools face from reduced funding is much greater.
“It’s nibbling around the edges,” Evers said of the mandates. “I think we’re beyond that.”

via WisPolitics:

Excerpts from Department of Public Instruction Superintendent Tony Evers prepared remarks to the Joint Finance Committee:
“We know that resources are scarce. School districts around the state have demonstrated that they are willing to do their part, both in recent weeks in response to this state budget crisis and throughout the past 18 years under the constraints of revenue caps. While this difficult budget demands shared sacrifice, we need a budget that is fair, equitable, and does not undercut the quality of our children’s education,” Evers said.
“As you know, the Governor’s budget proposal, which increases state spending by 1.7 percent over the next two years, would cut $840 million in state school aids over the biennium – the largest cut to education in state history. While these cuts present unprecedented challenges, an even larger concern is the proposed 5.5 percent reduction to school district revenue limits, which dictate exactly how much money schools have available to spend. Depending on the school district, schools would have to reduce their spending between $480 and $1,100 per pupil. Statewide, the proposed revenue limit cuts will result in a $1.7 billion cut over the biennium, as compared to current law. These dramatic and unprecedented revenue limit cuts will be a crushing challenge to our public schools, especially by the second year of the budget.”

What cuts? Madison schools OK

Wisconsin State Journal Editorial:

Alarmists in Madison suggest Gov. Scott Walker’s state budget proposal will decimate public education.
But Superintendent Dan Nerad’s proposed 2011-2012 budget for Madison School District tells a different story.
Under Nerad’s plan, unveiled late last week, the Madison district would:

That’s not to suggest Madison schools are flush with money. Gov. Walker, after all, is trying to balance a giant state budget deficit without raising taxes or pushing the problem further down the road. Walker has proposed cuts to most state programs, including aid to public schools.

Madison School District Proposes a 3.2% Property Tax Increase for the 2011-2012 Budget

Matthew DeFour:

Madison teachers wouldn’t pay anything toward their health insurance premiums next year and property taxes would decline $2 million under Superintendent Dan Nerad’s 2011-12 budget proposal.
The $359 million proposal, a 0.01 percent increase over this year, required the closing of a $24.5 million gap between district’s estimated expenses from January and the expenditures allowed under Gov. Scott Walker’s proposed state budget, Nerad said.
Nerad proposes collecting $243 million in property taxes, down from $245 million this year. Because of an estimated drop in property value, the budget would mean a $90 increase on an average Madison home, down from $170 this year. That amount may decrease once the city releases an updated average home estimate for next year.

Related taxbase articles:

Milton School District reaches labor deal

Neil Johnson:

Under the new contract, union members would have to pay 12.6 percent of the district’s costs for health insurance coverage and half of the district’s cost for pension benefits.
That could save as much as $1.1 million in 2011-12, according to district estimates.
The deal also eliminates contract language for class size, and makes job performance the first criteria in layoffs and non-renewals, putting seniority second.
It also allows teachers union members who retire by April 30 to leave retaining the health insurance benefits they had prior to Friday’s contract extension.
The contract was drawn up in a draft proposal this week by Superintendent Bernie Nikolay and teachers union President Michael Dorn.

Madison School Board Tension over Spending/Taxes & Compensation

Bill Lueders:

Gov. Scott Walker says the changes he has rammed through the Legislature will give school districts and local governments “the tools” they need to withstand the severe cuts in state aid his budget will deliver. What he doesn’t get into is how the tensions caused by his agenda will divide the members of these bodies, as they have the state as a whole.
One example of this is the Madison school board, where disagreements over the impact of Walker’s actions have spurned an ugly exchange, in which school board member Lucy Mathiak lobbed an F-bomb at a fellow board member, Marj Passman.
The exchange happened yesterday, March 14. Passman was contacted by a Madison school teacher who felt Mathiak had been dismissive of the teacher’s concerns, urging her to “get over yourself.” Passman, who allows that board members have been deluged with angry emails, says she expressed to Mathiak that she agreed this response was a little harsh.

Somewhat related: Jason Shepherd: Going to the mat for WPS
School board yields to pressure to keep costlier insurance option

Suzanne Fatupaito, a nurse’s assistant in Madison schools, is fed up with Wisconsin Physicians Service, the preferred health insurance provider of Madison Teachers Inc.
“MTI uses scare tactics” to maintain teacher support for WPS, Fatupaito recently wrote to the school board. “If members knew that another insurance [plan] would offer similar services to WPS and was less expensive – it would be a no-brainer.”
WPS, with a monthly price tag of $1,720 for family coverage, is one of two health coverage options available to the district’s teachers. The other is Group Health Cooperative, costing $920 monthly for a family plan.
During the past year, the Madison school board has reached agreements with other employee groups to switch from WPS to HMO plans, with most of the savings going to boost pay.
In December, the board held a secret vote in closed session to give up its right to seek health insurance changes should negotiations on the 2007-09 teachers contract go into binding arbitration. (The board can seek voluntary insurance changes during negotations.)

Lucy has been a long time friend and I have long appreciated her activism on behalf of students, the schools and our community.

Madison School District reaches tentative contract agreement with teachers’ union

Matthew DeFour:

The Madison School District has reached a tentative agreement with all of its unions for an extension of their collective bargaining agreement through mid-2013.
Superintendent Dan Nerad said the agreement includes a 50 percent employee contribution to the pension plan. It also includes a five percentage point increase in employees’ health insurance premiums, and the elimination of a more expensive health insurance option in the second year.
Salaries would be frozen at current levels, though employees could still receive raises for longevity and educational credits.
The district said the deal results in savings of about $23 million for the district over the two-year contract.
The agreement includes no amnesty or pay for teachers who missed four days last month protesting Gov. Scott Walker’s proposal to strip public employee collective bargaining rights. Walker’s signing of the bill Friday prompted the district and MTI to reach an agreement quickly

Channel3000:

A two-year tentative contract agreement has been reached between the Madison Metropolitan School District and the Madison Teachers Union for five bargaining units: teachers, substitute teachers, educational and special educational assistants, supportive educational employees and school security assistants.
District administrators, with the guidance of the Board of Education, and Madison Teacher Inc. reps negotiated from 9 a.m. Friday until 3 a.m. Saturday when the tentative agreements were completed.
Under details of the contract, workers would contribute 50 percent of the total money that’s being contribution to pension plans. That figure according to district officials, is believed to be very close to the 12 percent overall contribution that the budget repair bill was calling for. The overall savings to the district would be $11 million.

David Blaska

I present Blaska’s Red Badge of Courage award to the Madison Area Technical College Board. Its part-time teachers union would rather sue than settle until Gov. Scott Walker acted. Then it withdrew the lawsuit and asked the board for terms. No dice. “Times have changed,” said MATC’s attorney.
The Madison school board showed a rudimentary backbone when it settled a contract, rather hastily, with a newly nervous Madison teachers union.
The school board got $23 million of concessions over the next two years. Wages are frozen at current levels. Of course, the automatic pay track system remains, which rewards longevity.

NBC 15

The Madison Metropolitan School District and Madison Teachers, Inc. have reached tentative contract agreements for five bargaining units: teachers, substitute teachers, educational and special educational assistants, supportive educational employees, and school security assistants.
District administrators, with the guidance of the Board of Education, and MTI reps negotiated from 9:00 a.m. Friday until 3:00 a.m. Saturday when the tentative agreements were completed.
The Board of Education held a Special Meeting today at 2:00 p.m. and ratified the five collective bargaining agreements. The five MTI units must also ratify before the contracts take effect.
Summary of the agreements:

On Quickly Extending Madison Teacher Contracts; Board to Meet Tomorrow @ 2:00p.m.

Madison School Board Member Ed Hughes:

Thursday, March 10 was an eventful day. With the approval by the state Assembly of legislation stripping public employees of nearly all collective bargaining rights, it appears that our school district has about a day to negotiate with our teachers and other bargaining units represented by MTI about an extension of our current collective bargaining agreement, which expires at the end of June. (We have already agreed to extensions for our two bargaining units represented by AFSCME and for our trades workers.)
Board members have received hundreds of emails from our teachers and others requesting that we extend their contracts and that we do it quickly. Here is the response I sent to as many of the emails as I could on Thursday night. I apologize to those to whose messages I simply didn’t have time to respond.

Thanks for contacting me to urge the School Board to extend the contract for our teachers and other represented employees.
This is a difficult situation for all of us and one that all of us would have preferred to have avoided. However, it is here now and we have to deal with it.
Like all our Board members, I respect, value and like our teachers. I want to do whatever I can to ease the stress and uncertainty that we’re all feeling, but I’m also required to act in the best interest of the school district and all of our students.
The situation before us is that if we do not extend the contract with our teachers, then, once the legislation approved today goes into effect, collective bargaining will effectively come to an end.
The School Board met tonight to discuss the terms of a contract that we could responsibly enter into for the next two years, given the uncertainty we face. We agreed on a proposal, which we submitted to MTI this evening. Like our previous settlements with other bargaining units, the proposed contract gives us the flexibility we need to adapt to the requirements imposed on us by the new state law, as well as the reduced spending limits and reduction in state aid that are parts of the proposed budget bill.
The proposed contract is written so that it gives the District discretion over changes in salary and in contributions to retirement accounts and to the cost of health insurance. I recognize that you can feel uncomfortable about the extent of the discretion that our proposal reserves for the school district. We have to write the contract this way, because any change in the contract – like re-opening the contract to adjust its terms – triggers application of the new state law that abolishes nearly all collective bargaining. So we have to draft the contract in a way that any adjustment in its economic terms does not amount to an amendment or change to the contract, and providing the school district with discretion to make such changes seems like the only way to do this.

The Madison School Board apparently is going to meet tomorrow @ 2:00p.m. to discuss extending the teacher contracts, though I don’t see notice on their website.
Matthew DeFour:

The Madison School Board scheduled a meeting for 2 p.m. Saturday to approve a deal with its unions before a Republican law to strip collective bargaining takes effect.
The vote is scheduled less than 48 hours after the School District and Madison Teachers Inc. exchanged initial proposals Thursday night at a hastily called School Board meeting.
The two proposals, released by the district Friday afternoon, called for extending contracts until June 30, 2013, and freezing wages, but differed on benefit concessions and other details.
MTI asked that teachers be granted amnesty and given full pay for four days missed last month. Hundreds of teachers called in sick on Feb. 16, 17, 18 and 21 to protest Gov. Scott Walker’s proposal to limit collective bargaining. Walker signed the bill Friday after the Legislature approve it Wednesday and Thursday.
MTI also asked for the missed days to be made up by adding 8 to 15 minutes to the end of every school day through the rest of the year. That would fulfill a state requirement for instructional time.
The MTI proposal did not include any employee contributions to pension and health insurance premiums over the next two years, something other unions around the state seeking contract extensions proposed to their school boards.
The district’s proposal called for allowing it to set pension contributions, change its health insurance carrier and employees’ share of premiums, set class sizes, and increase or decrease wages at its discretion, among other things. The district faces a $16 million reduction in funding under Walker’s 2011-13 budget proposal.

Don Severson: Considerations Proposed for the Madison School District 2011-2012 Budget 300K PDF, via email:

The legislative passage of the bill to limit collective bargaining for public employees provides significant opportunities for Wisconsin school districts to make major improvements in how they deliver instructional, business and other services. Instead of playing the “ain’t it awful’ game the districts can make ‘systemic’ changes to address such challenges as evaluating programs, services and personnel; setting priorities for the allocation and re-allocation of available resources; closing “the achievement gap”; and reading and mathematics proficiency, to name a ‘short list’. The Madison Metropolitan School District can and should conduct their responsibilities in different ways to attain more effective and efficient results–and, they can do this without cutting teacher positions and without raising taxes. Following are some actions the District must take to accomplish desirable, attainable, sustainable, cost effective and accountable results.

Notes and Links on “The Battle of Wisconsin”

Wisconsin State Journal

Wisconsin cannot continue to spend more money than it has while pushing a pile of bills into the future.
For too long, Wisconsin has lurched from one budget shortfall to another.
The near-constant distraction of the state’s financial mess has kept our leaders from thinking long term. It has intensified partisan squabbles. It has forced difficult cuts and limited our state’s ability to invest in its future.
Gov. Scott Walker’s state budget, unveiled last week, is far from perfect. But it does one big thing right: It finally tackles Wisconsin’s money problems in a serious way – without the usual accounting tricks and money raids that only delay tough decisions.
Walker is largely doing in his budget proposal what he said he’d do: Fix the budget mess without raising taxes.

WPRI Poll: Wisconsinites want Walker to compromise

Wisconsinites overwhelmingly want GOP Gov. Scott Walker to compromise, a new poll says.
The poll, commissioned by a conservative-leaning think tank, also found that state residents think Democratic President Barack Obama is doing a better overall job than Walker.
Further, Wisconsinites narrowly disapprove of Senate Democrats’ decision to leave the state to block a Senate vote on Walker’s budget repair bill, which contains language to strip away most public employee union bargaining rights.
The poll of 603 Wisconsinites was commissioned by the Wisconsin Policy Research Institute and conducted between Feb. 27 and March 1, the day of Walker’s budget address, and has a margin of error of 4 percent. The survey of randomly selected adults included cell phone-users and was directed by Ken Goldstein, a UW-Madison political science professor on leave who is also the co-founder and director of the Big Ten Battleground Poll.
The poll’s release comes amid talks between Walker’s office and the Senate Democrats. Walker has hinted recently at compromise but said he won’t compromise on the core principles of his bi

Amy Hetzner:

Days after Gov. Scott Walker proposed major cuts to state education funding, school officials are still trying to find out how harsh the impact might be on their own districts.
Although the governor recommended a two-year, $834 million decline in state aid for schools and an across-the-board 5.5% decrease in per-pupil revenue caps – restricting how much districts can collect from state aid and property taxes – how that plays out at the local level could still shock some communities.
They have only to think of two years ago when the Democrat-controlled Legislature dropped school aid by less than 3% and nearly one-quarter of the state’s 425 school districts saw their general state aid decline by 15%. The proposed cut in school aid in Walker’s budget is more than 8% in the first year.
“Whenever the state tries to do things at a macro level, with formulas and revenue caps and so forth, there are always glitches,” said Todd Berry, president of the Wisconsin Taxpayers Alliance.

New York Times Editorial on New York’s Budget:

At a time when public school students are being forced into ever more crowded classrooms, and poor families will lose state medical benefits, New York State is paying 10 times more for state employees’ pensions than it did just a decade ago.
That huge increase is largely because of Albany’s outsized generosity to the state’s powerful employees’ unions in the early years of the last decade, made worse when the recession pushed down pension fund earnings, forcing the state to make up the difference.
Although taxpayers are on the hook for the recession’s costs, most state employees pay only 3 percent of their salaries to their pensions, half the level of most state employees elsewhere. Their health insurance payments are about half those in the private sector.
In all, the salaries and benefits of state employees add up to $18.5 billion, or a fifth of New York’s operating budget. Unless those costs are reined in, New York will find itself unable to provide even essential services.

And, finally, photos from Tennessee.
Tyler Cowen:

What to do? Time is no longer on the side of good. I suggest that we confront the nation’s fiscal difficulties as soon as possible. That means both tax hikes and spending cuts, though I prefer to concentrate on the latter. Nonetheless it is naive to think spending cuts can do the job alone, and insisting on no tax hikes drives us faster along the path of fiscal ruin. The time for the Grand Bargain is now, it will only get harder:

K-12 Tax & Spending Climate: Union Pay Isn’t Busting State Budgets: “its almost everything else”

David Leonhardt

To be clear, I’m making an argument that’s different from “Government workers are overpaid.” I’m saying that they are paid in the wrong ways — in ways that make life easier on union leaders and elected officials, at least initially, but that eventually hurt both workers and taxpayers.
The best example is health insurance. Health plans for union workers and retirees are much more likely to require little or no co-payment, which leads to lots of medical treatments that don’t make people any healthier, and to huge costs. Ultimately, some of these plans will probably prove so expensive as to be unsustainable. Workers would have been better off accepting a less generous benefit package and slightly higher salaries.
The solution today is not to cut both the pay and the benefits of public workers, as would happen if workers in Wisconsin, Ohio and elsewhere lost their right to bargain. Remember, public workers don’t get especially generous salaries. The solution is to get rid of the deferred benefits that make no sense — the wasteful health plans, the pensions that start at age 55 and still let retirees draw a full salary elsewhere, the definitions of disability that treat herniated discs as incurable.

Madison Teachers, Inc. 2011 Candidate Questionnaire

1MB PDF, via a kind reader’s email:. Mayoral Candidate Paul Soglin participated and I found this question and response interesting:


What strategies will you introduce to reduce the 6000+ families who move in and out of Madison Public School classrooms each year?
In the last three years more children opted out of the district than all previous years in the history of the district. That contributed to the increase of children from households below the poverty line rising to over 48% of the kids enrolled.
To stabilize our enrollment we need stable families and stable neighborhoods. This will require a collaborate effort between governments, like the city, the county and the school district, as well as the private sector and the non-profits. It means opening Madison’s economy to all families, providing stable housing, and building on the assets of our neighborhoods.
One decades old problem is the significant poverty in the Town of Madison. I would work with town officials, and city of Fitchburg officials to see if we could accelerate the annexation of the town so we could provide better services to area residents.

Ed Hughes and Marj Passman, both running unopposed responded to MTI’s questions via this pdf document.

MTIVOTERS 2011 School Board Election Questionnaire
Please respond to each ofthe following questions. If you wish to add/clarifY your response, please attach a separate sheet and designate your responses with the same number which appears in the questionnaire. Please deliver your responses to MTI Headquarters (821 Williamson Street) by, February 17, 2011.
General:
If the School Board finds it necessary to change school boundaries due to enrollment, what criteria would you, as a Board member, use to make such a judgement?
Ifthe School Board finds it necessary to close a school/schools due to economic reasons, what criteria would you, as a Board member, use to make such a judgement?
If the School Board finds it necessary, due to the State-imposed revenue controls, to make further budget cuts to the 2011-12 budget, what criteria would you, as a Board member, use to make such a judgement?
IdentifY specific MMSD programs and/or policies which you believe should to be modified, re-prioritized, or eliminated, and explain why.
What should the District do to reduce violence/assure that proper discipline and safety (of the learning and working environment) is maintained in our schools?
Do you agree that the health insurance provided to District employees should be mutually selected through collective bargaining?
_ _ YES _ _ NO Explain your concerns/proposed solutions relative to the District’s efforts to reduce the “achievement gap”.
Should planning time for teachers be increased? If yes, how could this be accomplished?
Given that the Wisconsin Association of School Boards rarely supports the interests of the Madison Metropolitan School District, do you support the District withdrawing from the W ASB? Please explain your rationale.
From what sources do you believe that public schools should be funded?
a. Do you support further increasing student fees? _ _ YES _ _ _ NO
Do you support the Wisconsin Alliance for Excellent Schools’ (WAES) initiative to raise sales tax by 1% to help fund schools?
_ _ YES _ _ NO
Do you support class sizes of 15 or less for all primary grades? _ _ YES _ _ NO
Do you support:
a. The use of public funds (vouchers) to enable parents to pay tuition with tax payers’ money for religious and private schools?
_ _ YES _ _ NO
b. The expansion of Charter schools within the Madison Metropolitan School District? _ _ YES _ _ NO
c. The Urban League’s proposed “Madison Preparatory Academy for Young Men” as a charter school which would not be an instrumentality of the District?
_ _ YES _ _ _ NO
Do you agree that the usual and customary work ofteachers, i.e. work ofthose in MTI’s teacher bargaining unit, should not be performed by others (sub-contracted)?
_ _ YES _ _ NO List MMSD staff and Board member(s) from whom you do or would seek advice.
Is your candidacy being promoted by any organization? _ _ YES _ _ NO
If yes, please name such organization(s). Have you ever been employed as a teacher? If yes, please describe why you left the teaching profession.
Do you support the inclusion model for including Title 1, EEN and ESL students in the regular education classroom? Why/why not?
What grouping practices do you advocate for talented and gifted (TAG) students?
Aside from limitations from lack ofadequate financial resources, what problems to you feel exist in meeting TAG students’ needs at present, and how would you propose to solve these problems?
The Board ofEducation has moved from the development ofpolicy to becoming involved in implementation of policy; i.e. matters usually reserved to administration. Some examples are when it:
a. Decided to hear parents’ complaints about a teacher’s tests and grading. b. Decided to modifY the administration’s decision about how a State Statute should be implemented.
Do you believe that the Board should delegate to administrators the implementation of policy which the Board has created?
_ _ YES _ _ NO
Do you believe that the Board should delegate to administrators the implementation of State Statutes? _ _ YES _ _ NO
Do you support the Board exploring further means to make their meetings more efficient? _ _ YES _ _ _ NO
Do you support a merit pay scheme being added to the Collective Bargaining Agreement _ _ YES _ _ _ NO
If yes, based on which performance indicators?
Do/did/will your children attend private or parochial schools during their K-12 years? Ifno, and ifyou have children, what schools have/will they attend(ed)?
_ _ YES _ _ NO If you responded “yes”, please explain why your child/children attended private parochial schools.
Legislation
Will you introduce and vote for a motion which would direct the Wisconsin Association of School Boards to request the introduction and promote the passage oflegislation to eliminate the revenue controls on public schools and return full budgeting authority to the School Board?
_ _ YES _ _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to request the introduction and promote the passage oflegislation to prohibit the privatization ofpublic schools via the use oftuition tax credits (vouchers) to pay tuition with taxpayers’ money to private or religious schools?
_ _ YES _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to request the introduction and promote the passage of legislation which will maintain or expand the benefit level of the Wisconsin Family and Medical Leave Act?
_ _ YES _ _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to request the introduction and promote the passage oflegislation which will increase the retirement formula multiplier from 1.6% to 2% for teachers and general employees, i.e. equal that of protective employees?
_ _ YES _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to request the introduction and promote the passage of legislation which will forbid restrictions to free and open collective bargaining for the selection ofinsurance for public employees (under Wis. Stat. 111.70), including the naming ofthe insurance carrier?
_ _ YES
_ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to request the introduction and promote the passage of legislation which will guarantee free and open collective bargaining regarding the establishment of the school calendar/school year, including when the school year begins?
_ _ YES _ _ NO
Will you introduce and vote for a motion to direct the Wisconsiu Association of School Boards to request the introduction and promote the passage of legislation to forbid the work of employees organized under Wis. Stat. 111.70 (collective bargaining statute) to be subcontracted?
_ _ YES _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to seek passage of legislation which will require full State funding of any State-mandated program?
_ _ YES _ _ NO
Will you introduce and vote for a motion to direct the Wisconsin Association of School Boards to seek passage oflegislation which will provide adequate State funding of public education?
_ _ YES _ _ NO
Do you support a specific school finance reform plan (e.g., School Finance Network (SFN), Wisconsin Alliance for Excellent Schools (WAES), Andrews/Matthews Plan)?
Why/why not? Your Campaign:
Are you, or any of your campaign committee members, active in or supportive (past or present) of the “Get Real”, “ACE”, “Vote No for Change” or similar organizations?
Name ofCampaign Committee/Address/Phone #/Treasurer. List the members ofyour campaign committee.

Indiana Informs Wisconsin’s Push

Steven Greenhouse:

Evaluating the success of the policy depends on where you sit.
“It’s helped us in a thousand ways. It was absolutely central to our turnaround here,” Mr. Daniels said in an interview. Without union contracts to slow him down, he said, it has been easy for him to merge the procurement operations of numerous state agencies, saving millions of dollars. One move alone — outsourcing and consolidating food service operations for Indiana’s 28 prisons — has saved the state $100 million since 2005, he said. Such moves led to hundreds losing their jobs.
For state workers in Indiana, the end of collective bargaining also meant a pay freeze in 2009 and 2010 and higher health insurance payments. Several state employees said they now paid $5,200 a year in premiums, $3,400 more than when Mr. Daniels took office, though there are cheaper plans available. Earlier in his tenure, Mr. Daniels adopted a merit pay system, with some employees receiving no raises and those deemed to be top performers getting up to 10 percent.
Andrea Helm, an employee at a children’s home in Knightstown, Ind., said that soon after collective bargaining was ended and the union contract expired, coveted seniority preferences disappeared. “I saw a lot of employees who had 20, 30 years on the job fired,” she said. “I think they were trying to cut the more expensive people on top to make their budget smaller.”

On teachers unions, the devil is in the details

Robert Maranto
:

Here are the fiscal facts. Unlike most employees, few Wisconsin teachers have to contribute more than marginally to their retirement and health care costs. My colleague Bob Costrell, who has done substantial work in Milwaukee, calculates that the city’s public school teachers get a remarkable package of benefits equal to 74% of salary, roughly double the normal benefits for workers calculated by the Bureau of Labor Statistics but in line with other Wisconsin teachers.
And that’s not all. By collective bargaining agreement, the Wisconsin Education Association Council has a lock on health insurance coverage for members, not necessarily a great service for teachers but a wonderful profit center for the union.
What explains this? As one who has served in government and taught public personnel management, the answers are three-fold, and in combination explain why allowing a broad scope for collective bargaining undermines transparency and, ultimately, democracy.
First, teachers unions play a big role in politics, meaning that, as Terry Moe writes in “Teacher Unions and School Board Elections” (published in a Brookings Institution book on school boards), “the fact that school boards are elected means that the teacher unions can actually participate in choosing – or even literally choose – the management they will be bargaining with.”
In the California school districts Moe studies, unions fund candidates and mobilize voters in (low-turnout) school board elections and often recruit the candidates. Unions thus control both sides of the collective bargaining table. Surveys of school board members suggest that business interests, in contrast, have little power.
I have not seen comparable research on Wisconsin, but I suspect similar dynamics.

Report: Public employees make less, including benefits, than private workers

Steven Verburg:

Gov. Scott Walker argues that public employees can sacrifice more of their paychecks for health insurance and retirement because they pay so little for those benefits compared to workers at private companies.
Walker is correct about the disparity, but a new report by the liberal Economic Policy Institute suggests that looking at benefits alone is misleading.
The study looks at total compensation – pay and benefits together – and found that public workers earn 4.8 percent less than private sector employees with the same qualifications and traits doing similar jobs.
Average compensation for public workers is higher because the jobs they do – such as teaching – require a relatively high level of education, and a higher education is one of the main factors that drives wages up, said Ethan Pollack, a senior policy analyst at the institute.

New York Governor Cuomo Proposes Slight Cuts to Education Spending

Jacob Gershman:

Mr. Cuomo’s plan, particularly his hard line on public-school spending, drew criticism from teachers’ unions and Democrats, who control the Assembly.
The budget would lower total spending on education and Medicaid to levels slightly below current-year amounts. For local governments that relied on stimulus money, the governor’s budget will feel like a bigger cut. The budget pain is especially tough for New York City schools, which would see state aid cut by hundreds of millions of dollars.
The governor’s plan would freeze higher-education spending and general aid to localities. He also seeks to squeeze $1 billion out of state agencies. Spending on public employee pensions, health insurance and other benefits would increase by $474 million, an 8% rise over the current fiscal year.
Mr. Cuomo, who has said he wants to create a lower-cost pension for new employees, did not include such plans in his budget, saving the battle for another day.

Wisconsin Public schools likely to face cash drain

Alan Borsuk

So let’s think out loud about what might lie ahead:
State aid to schools. It’s hard to see how Republicans are going to keep their campaign promises and fund the same percentage of statewide costs for kindergarten through 12th grade. The state committed itself to paying two-thirds of those costs in the 1990s (under Republican Gov. Tommy G. Thompson). The current rate is a bit below that. But look for Walker to want to do something about this multibillion dollar annual spending. Reductions in state aid would translate into large increases in property taxes (that hardly seems likely, given the state of public opinion) or large cuts in school spending. That leads us to:
Teacher benefits. Look for a lot of action around this. Teachers are deeply defensive of their benefits, especially health insurance plans that are substantially above what almost anybody else has these days. But WEAC, the state teachers union, was among the biggest losers on Tuesday and has few friends in the Capitol now. There’s been talk about trying to bring teachers into the state employees’ health plan, which costs less than most teacher plans. Now is likely to be the time for doing that. Or maybe other ideas will surface.
Teachers contracts are negotiated locally, so the most powerful thing Republicans can do might be just to give local districts less money and let school officials and local unions figure out what to do about it. My guess is that the Milwaukee teachers union agreed recently to a new contract that goes until 2013, two years longer than the normal agreement, in hope of staving off more concessions at least for that long.

Madison School District’s Proposed 5 Year Budget Planning Parameters

Superintendent Dan Nerad:

Attached you will find the PMAIClient Checklist completed for your consideration as the Administrations recommendation for the parameters that will make up the 5 year budget projection. The major areas and comments about those areas are as follows:
EXPENDITURE ASSUMPTIONS
Projected %Salary Increase
These have been intentionally left blank, as the committee will need to have a conversation about how to handle these going forward. This section, along with the next section (Projected Benefits) comprise approximately 85% of the entire model projection. We will need to address the issue of how these line item projections could impact future negotiations with all employee groups.
Projected Benefits
We have worked with our Human Resources Department to provide the best possible projections at this point in time.
We have assumed an increase in WRS over the next 3 years of .6% and the assumed this would flatten out.
For Health Insurance, we have used a weighted average based upon the number of plans we have with each separate health plan, along with a projected increase for each plan.
General Fund Assumptions
Historically Administration has tied this increase to the annualized Consumer Pricing Index (CPI-U), which hovered around approximately 2%.
Currently through the month of August, 2010 the annualized CPI-U is at 1.1%. We are recommending that all consumable budgets be increased by 2% in order to allow schools and departments the ability to meet the increasing needs and price increases.
Utilities Assumptions
Administration has worked with Madison Gas and Electrict (MG&E), the City of Madison, and our independent natural gas consultant Select Energy to prepare the recommended rates of utility increase.

Related: Madison School District Chart of Accounts.

Monona Grove School District’s Teacher Contract Negotiations (Since 2009)

Peter Sobol:

What are the sticking points in the current negotiations?
Post-employment benefits and the salary-benefit package are two big items on which there is no agreement. Current post-employment benefits for teachers include a payment of a stipend (Teacher Emeritus Program (TEP)) which is equal to a teacher’s highest annual salary and is paid out over a period of three years in equal installments. In addition to this and to the regular monthly pension benefit received by the teacher from WRS, full health insurance and the major share of the cost of dental insurance are paid by the District until the retired teacher reaches the age of 70. In the event of the death of the retiree prior to reaching the age of 70, the surviving spouse continues to be eligible for the District’s group health insurance coverage until the date the retiree would have reached age 70 at the retiree’s spouse expense.
The School Board’s current proposal for post-employment benefits is proposal #6 in the Initial Board of Education Proposals to the Monona Grove Education Association (linked here). There is no corresponding initial or counter-proposal from the MGEA; its position is to maintain the existing benefits described in the previous paragraph.
The School Board’s current salary and benefit package proposal is an increase of 3.9% for 2009-10 and 3.7% for 2010-11. The MGEA’s current total package proposal is an increase of 5.4% for 2009-10 and 5.3% for 2010-11 and includes an average teacher salary increase of 4.2% for 2009-10 and 4.1% for 2010-11. These percentages reflect what’s known as “cast forward” costing and do not include the cost of horizontal lane movement on the salary schedule or the post-employment benefit costs of retirees.

Time for a FREEZE! Janesville teacher contract.

John Eyster:

Time for a FREEZE! Janesville teacher contract.
ONE ALSO OUGHT TO READ VERY CAREFULLY the report on COMPENSATION settlement negotiated! First and foremost, even a FREEZE on salary would NOT BE A TRUE FREEZE on compensation! While a freeze would impact an across the board increase in the salary schedule, it would NOT impact two other factors which INCREASE teacher compensation year-by-year.
First, the “seniority” or “experience” move on the salary schedule and second, the pay provided when “they hit continuing-education milestones.” The Gazette article reports that about 57% of the teachers would get the longevity increase. There is no data cited on “continuing-education milestone” increases.
Where is the data about the significant increase in FRINGE BENEFITS for teachers with the increase in HEALTH INSURANCE COSTS for the District? The District is self-insured. The shocking announcement of $2 million in UNexpected costs with $1 million coming from the teacher COMPENSATION package in the new contract and $1 million coming from increase in costs for health insurance. Is this $1 million NOT an increase in TOTAL COMPENSATION for teachers? WHY is it NOT reported in the Gazette article? WHY has it NOT been clarified by the district? How much compensation increase is that for each teacher?

Packing for College, 2010 Style

Karen Blumenthal

As you help pack up the minifridge, laptop and extra-long twin sheets for your college freshman, you might consider a few other last-minute chores:
• Scour your health-insurance coverage for loopholes.
• Reread your homeowner’s insurance policy.
• Call your lawyer.
Sending a child off to college for the first time is wrenching enough, but a slew of conflicting rules and changing banking and health-care laws are making this year’s move-in season more confusing than ever.
And with college costs and student debt at record levels, it is all the more important for students–and their parents–to avoid the new financial traps cropping up on campuses these days, from debit cards to health insurance.

Packing for College, 2010 Style Hidden financial traps are snaring even the best and brightest on campus–and their parents. Here is how to make sure you don’t flunk Money 101.

Karen Blumenthal

As you help pack up the minifridge, laptop and extra-long twin sheets for your college freshman, you might consider a few other last-minute chores:
• Scour your health-insurance coverage for loopholes.
• Reread your homeowner’s insurance policy.
• Call your lawyer.
Sending a child off to college for the first time is wrenching enough, but a slew of conflicting rules and changing banking and health-care laws are making this year’s move-in season more confusing than ever.
And with college costs and student debt at record levels, it is all the more important for students–and their parents–to avoid the new financial traps cropping up on campuses these days, from debit cards to health insurance.
Overlooking small details now, in the frenzied rush to campus, can invite much stress later on.

School hero not taking job loss quietly

Karen Heller:

At South Philadelphia High School on Dec. 3, when the school dissolved in racial violence, the community-relations liaison not once, but twice, put herself in harm’s way protecting Asian American students from being pummeled by rampaging mobs.
Seven students were hospitalized, though not one of the charges Sutton-Lawson so vigorously defended.
Citizens sent her thank-you cards. Elected officials offered commendations. Business leaders presented gift certificates.
The Philadelphia School District, she says, did virtually nothing.
Two weeks ago, Sutton-Lawson received the ultimate indignity. She was laid off.
“I was totally shocked. I felt like I was trying to make a difference in that school,” says Sutton-Lawson, 58, who worked with students who were pregnant and new mothers. “I got nervous. I got sick inside. I got scared about losing my health insurance.”

Understanding Milwaukee’s teacher layoffs

Wisconsin Taxpayer’s Alliance:

According to a front-page story in the local daily, the Milwaukee Public Schools (MPS) could lay off as many as 482 teachers, mostly young staff, “while other large districts are predicting far fewer cuts.” Rhetorical explanations for why this is happening abound. But published statistics point to concrete reasons for the pending actions.
Rhetorical reasons
Key political players in the controversy offered quick explanations for the layoffs. The MPS school board president cited union reluctance to switch to lower-cost health insurance. Union leaders blamed inadequate state and federal funding. And young teachers complained they were laid off “because of experience, and not performance.” Most union contracts have seniority provisions requiring that the last teacher hired–often a young teacher–is the first fired.

GREATER FOOLS: Financial Illiteracy

James Surowiecki:

Halfway through his Presidency, George W. Bush called on the country to build “an ownership society.” He trumpeted the soaring rate of U.S. homeownership, and extolled the virtues of giving individuals more control over their own financial lives. It was a comforting vision, but, as we now know, behind it was a bleak reality–bad subprime loans, mountains of credit-card debt, and shrinking pensions–reflecting a simple fact: when it comes to financial matters, many Americans have been left without a clue.
The depth of our financial ignorance is startling. In recent years, Annamaria Lusardi, an economist at Dartmouth and the head of the Financial Literacy Center, has conducted extensive studies of what Americans know about finance. It’s depressing work. Almost half of those surveyed couldn’t answer two questions about inflation and interest rates correctly, and slightly more sophisticated topics baffle a majority of people. Many people don’t know the terms of their mortgage or the interest rate they’re paying. And, at a time when we’re borrowing more than ever, most Americans can’t explain what compound interest is.
Financial illiteracy isn’t new, but the consequences have become more severe, because people now have to take so much responsibility for their financial lives. Pensions have been replaced with 401(k)s; many workers have to buy their own health insurance; and so on. The financial marketplace, meanwhile, has become a dizzying emporium of choice and easy credit. The decisions are more numerous and complex than ever before. As Lusardi puts it, “It’s like we’ve opened a faucet, and told people they can draw as much water as they want, and it’s up to them to decide when they’ve had enough. But we haven’t given people the tools to decide how much is too much.”

Branchburg, NJ School District in turmoil

Amanda Peterka:

After five rounds of meetings, the Branchburg teachers union and the board of education have declared an impasse, saying they could not come to an agreement on a salary freeze and a switch to the state’s public health insurance plan.
A state moderator will now preside over negotiations. If an agreement cannot be reached over both, the school board will have to come up with those savings elsewhere because the school board budgeted the salary freeze already, and the Township Committee included the health insurance plan in its recommendations when it decided the school board needs to cut $1.5 million from its budget.
Tensions over these negotiations bubbled over on Thursday, June 24, at the same time that the school board approved new cuts that bring the number of laid-off school employees to approximately 55.

A State Transformed: Immigration and the New California

Steven Camarota & Karen Jensen:

etween 1970 and 2008 the share of California’s population comprised of immigrants (legal and illegal) tripled, growing from 9 percent to 27 percent.1 This Memorandum examines some of the ways California has changed over the last four decades. Historically, California has not been a state with a disproportionately large unskilled population, like Appalachia or parts of the South. As a result of immigration, however, by 2008 California had the least-educated labor force in the nation in terms of the share its workers without a high school education. This change has important implications for the state.
Among the changes in California:

  • In 1970, California had the 7th most educated work force of the 50 states in terms of the share of its workers who had completed high school. By 2008 it ranked 50th, making it the least educated state. (Table 1a)
  • Education in California has declined relative to other states. The percentage of Californians who have completed high school has increased since 1970; however, all other states made much more progress in improving their education levels; as a result, California has fallen behind the rest of the country. (Table 1b)
  • The large relative decline in education in California is a direct result of immigration. Without immigrants, the share of California’s labor force that has completed high school would be above the national average.
  • There is no indication that California will soon close the educational gap. California ranks 35th in terms of the share of its 19-year-olds who have completed high school. Moreover, one-third (91,000) of the adult immigrants who arrived in the state in 2007 and 2008 had not completed high school.
  • In 1970 California was right at the national average in terms of income inequality, ranking 25th in the nation. By 2008, it was the 6th most unequal state in the country based on the commonly used Gini coefficient, which measures how evenly income is distributed. (Tables 2a and 2b)
  • California’s income distribution in 2008 was more unequal than was Mississippi’s in 1970. (Tables 2a and 2b)
  • While historical data are not available, we can say that in 2008 California ranked 11th highest in terms of the share of its households accessing at least one major welfare program and 8th highest in terms of the share of the state’s population without health insurance. (Tables 3 and 4)
  • The large share of California adults who have very little education is likely to strain social services and make it challenging for the state to generate sufficient tax revenue to cover the demands for services made by its large unskilled population.

K-12 Tax & Spending Climate: Wisconsin Democrat Governor Candidate Barrett calls for $1 billion in state government cuts

Mary Spicuzza:

Democratic candidate for governor Tom Barrett wants to get rid of the offices of the secretary of state and the state treasurer as part of a plan he says would cut more than $1 billion from Wisconsin’s budget.
Barrett said some of the savings could be achieved every year, while other cuts — such as eliminating those constitutional offices, an uncertain and arduous process — would represent one-time savings.
At a news conference outside the state Capitol on Monday, Barrett said his plans would include steps like combining workers statewide into pools to purchase lower-cost health insurance, cracking down on Medicaid fraud and other financial crimes, and cutting prisoner health care costs.
He also called for “right-sizing” the state employee work force but did not say if that would involve layoffs or simply not filling vacant jobs.
Barrett called it his plan for “putting Madison on a diet.”

Related:

Wisconsin has seen substantial growth in redirected tax dollars devoted to K-12 public districts over the past 20+ years.
Madison School Board Vice President Beth Moss asked whether the State might further reduce redistributed tax dollars for K-12 spending in the next year, at the June 1, 2010 Budget meeting.

Big blunder cost New Jersey teachers years of goodwill

Kevin Manahan:

At Saturday’s rally in Trenton, teachers wondered when the Earth started spinning in the other direction.
“It’s like we woke up one morning and the world had changed,” said Linda Mirabelli, a music teacher in Livingston. “We were liked and respected, and now, overnight, people have turned against us.”
How did it happen? That’s easy: One bad decision, one stupid miscalculation: An overwhelming majority of teachers refused to accept a pay freeze. They could have won taxpayers’ eternal gratitude, but instead demanded their negotiated raises and fought against contributing a dime toward budget-breaking health insurance benefits. Teachers could have pitched in, but they dug in.
They thumbed their noses at taxpayers, who have lost their jobs, had their pay cut, gone bankrupt and fallen into foreclosure. As taxpayers made less, teachers demanded more. You do that, you become a villain. Fast. It doesn’t matter how many stars Junior gets on his book report.
Teachers listened to their overpaid brain trust, the architects of this disastrous public relations strategy. Together, NJEA president Barbara Keshishian, executive director Vincent Giordano and spokesman Steve Wollmer earn more than a million dollars.
Keshishian, who has been outmaneuvered by the governor at every turn, earns $256,450 annually. Giordano, with salary and deferred compensation, earned $550,203 in 2009, and Wollmer makes $300,000.
Who says you get what you pay for? Union members are shelling out a lot of money for lousy representation. They should stage a coup. Instead they joined hands at Saturday’s You-And-Me-Against-The-World rally and tried to convince each other they’re doing the right thing.

NJ Teacher who complained of low pay to Gov. Chris Christie makes >$100,000 with benefits.

Waukesha Offers Teachers 0.8% and 1.51% Increases over the Next Two Years, Union Counters with 3.52 and 4.66%

Chris Lufter:

In my wildest dreams, I never thought I would say that it is time for this community to support the Waukesha School Board. Currently, the Waukesha School Board and the Education Association of Waukesha are seeking arbitration over the latest contract negotiations due to a $5.7 million dollar discrepancy in salary and benefits between the two sides.
A little history is in order here. The qualified economic offer and revenue caps passed the state Legislature back in the early ’90s due to the ever increasing burden of salaries and Cadillac benefits placed on school district budgets and taxpayers. The QEO was designed to limit salary and benefit increases to 3.8 percent to avoid arbitration. Acknowledging that the QEO and revenue caps (the control on school spending) were out of line, the state Legislature eliminated the QEO. This was to help school boards limit or eliminate budget reductions seen every year.
There are several items in dispute between the EAW and the Waukesha School Board: restoring the insurance back to the WEA Trust (the state teachers-owned health insurance), reinstating and making permanent early retirement language and total compensation calculations.
First, the insurance. Traditionally the district has had to use WEA Trust for the teacher’s Cadillac insurance plan. There were minimal outof-pocket expenses to the employee, no contribution to the cost and a whopping $21,000-plus price tag (family plan). For the 2007-09 contract, the board successfully worked in a premium contribution of $20 for a single plan and $40 for a family plan per month from the employee. In addition, a $250/500 outof-pocket was added. The current school board proposal is looking to change this in the new contract to $500 single/$1000 family and a 10 percent premium contribution. These changes reflect what is really happening in the private sector today.

Madison School board votes to save jobs, but doesn’t finalize budget yet; $250,000 home to see a $224.46 increase in property taxes, above the $2186.35 paid in 2009 (roughly 10%)

Gayle Worland:

The owner of a $250,000 Madison home would pay $224.46 more in school property taxes next winter under a budget still under discussion by the Madison School Board.
In what many — including three board members — thought would be a wrap-up Tuesday night of the board’s two-month process to close an initial $30 million budget gap, the board voted to save most of the district jobs still on the chopping block, largely with the help of $794,491 in employee health insurance savings.
But it left several items on the table until a final vote on the preliminary budget June 1, including:

A Madison home assessed at $257,000 paid 2186.35 in Madison School District taxes last year. A $224.46 increase is about 10%……
Much more on the 2010-2011 budget here.
The next school board election is in April, 2011, when the seats currently occupied by Ed Hughes and Marj Passman will be on the ballot.
November, 2010 elections that affect K-12 taxes & spending include the governor and assembly races.

Additional Discussion on the Madison School District’s 2010-2011 Budget

Gayle Worland:

“We still have the big stuff ahead, some of the harder discussions,” School Board President Arlene Silveira said. “So it’s good to get some of these items off the table.”
Superintendent Dan Nerad started the budget discussion Monday with the news that more than nine full-time jobs for bilingual resource specialists had been double-counted in budget estimates, allowing the board to remove $632,670 in expenses for those duplicate positions.
Also, the rise in employee health insurance costs for the 2010-11 school year had been overestimated, resulting in costs that are $1.4 million less than projected, Nerad said.

Much more on the 2010-2011 budget here.

New Jersey Governor Proposes 2.5% Tax Increase Limits & Spending Cuts

Claire Heininger & Josh Margolin:

The governor’s $29.3 billion budget will shave $2.9 billion off state spending from last year, about a 9 percent drop. The cuts include reductions in aid to municipalities and school districts, said two officials, who spoke on the condition of anonymity ahead of the announcement.
Unlike the current 4 percent limit, the new “hard” 2.5 percent cap on municipal, school and county property tax levies would be all-encompassing, without exceptions for such essentials as rising health insurance or debt payments. The tax could be raised higher only if local voters grant their approval in referendums. The state also would be constitutionally barred from increasing its own spending on direct state services by more than 2.5 percent per year.

Milwaukee Public Schools faces a crisis in both accountability and democracy

Milwaukee School Board member Bruce Thompson:

For Milwaukee Public Schools, the financial crisis that many of us have been warning about is here. As principals get their initial budgets, they are faced with cutting teachers; larger class sizes; the loss of specialty teachers such as those in art, music, physical education; and the lost of librarians. Perversely, schools that have the best student achievement are often the hardest hit, since the middle-class students attracted to these schools bring less aid with them.
While many other school systems (and other government units) are also facing cuts brought on by exploding health care costs and the weak economy, MPS has been particularly hard hit. And much of the MPS pain is self-inflicted. Next year, MPS is facing a 77% fringe benefit rate, meaning that the cost to the district of an employee is 77% more than that employee’s pay. If the unfunded liability for retiree benefits were correctly included, the fringe benefit rate would rise to almost 104%, meaning that the cost to the school district of an employee is more than twice that employee’s pay.
The biggest factor in the exploding benefits cost is the cost of health care. MPS offers two plans, one of which costs MPS twice as much per employee as the other. Yet because MPS pays the full cost of the plans, there is no incentive for employees to pick the less-expensive plan. Employees can retire at age 55 and continue to have MPS pay for their health insurance at the rate it did when they retired. Pensions have an employer and an employee contribution, but MPS pays both parts.

“People over Programs”: Better School District Administration….

Peter Sobol:

The most interesting session I attended concered Kewaskum schools program they call “People over programs”. I have long noted that compared to the private sector, school district management structures are very weak – the Kewaskum program deals with this problem by focusing on high professional standards for their staff. I was encouraged to see an alternative model that acknowledges this issue and attempts to address the problem directly.
Along similar lines I hear a presentation from the Janesville schools – they are working with a management consulting firm (that is donating their services) to develop standards of professionalism and accountability in management. The Superintendents evaluation is published on the district website with progress toward specific measurable goals.
I also attended a session with ideas about using incentives with HRA’s to reduce health insurance costs, and a session about district consolidation – I think that looking at collaborative or consolidated support services with neighboring district might be a way to save money.

Detroit Teachers Loaning the District 10K over Two years, 1% Raise in the Third Year

Chastity Pratt Dawsey:

Boos and jeers filled Cobo Hall this afternoon as Detroit Public Schools teachers reacted to details in a proposed contract agreement with the district.
The tentative agreement [Master Settlement PDF] includes:

  • Teachers loaning the district $10,000 each over two years with deductions taken from their paychecks.
  • A base salary increase of 1% in the third year of the three-year contract.
  • Increase in health insurance costs.
  • Plus a plethora of school reforms that include a peer evaluation process.

Teachers union president Keith Johnson told the crowd that the contract may not be exactly what they want but the alternative is to have the district declare bankruptcy, possibly leaving many of them unemployed.
“I cannot, I will not gamble, play Russian roulette, call the bluff of the district,” Johnson said.

Laconia: School Board sees itself in budgetary vise

Gail Ober:

School District administrators estimate that under the provisions of the city’s tax cap, the school district could see as little as $142,000 in additional money for next year’s local budget.
In addition, all three union contracts are up for renegotiation and administrators also learned this week that health insurance rates could rise as much as 26.2 percent — or a maximum increase of $1,064,000.
The provisions of the current tax cap allow next year’s budget to increase by a “capped amount” that is based on the Consumer Price Index-Urban — a standard measure of inflation — and the dollar amount of building permits in a 12-month time period from April 1 to March 31.
For example, the 2009-10 budget was based on a CPI-U of 3.8 percent, meaning that the local portion of the school budget was $20,001,940 and was multiplied by 3.8 percent — giving the district the potential to raise an additional $760,000.
That increase was added to the local school tax rate of $9.32 per $1,000 evaluation multiplied by the dollar amount of building permits as of March 31, 2008 — or new growth — giving the district an additional $242,000.
With adjustments and according to the cap, the school district could have raised an additional $1.1 million for this school year — a number that was reduced by $500,000 in June by the Laconia City Council.

Let’s help teachers solve bullying problem at schools

We can’t know how much of this is true or how much it contributed to the tragedy in Weston. What we do know is that nearly a third of America’s school children say they’ve been the victims of bullying – or been bullies themselves – or both.
We know bullying can destroy a student’s self-esteem and ability to learn. We know it can ruin students for the rest of their lives. It can ruin families and ruin schools.
We know it’s a problem among girls and boys. We know it can be mental bullying as well as physical. We know it can border on torture for the young minds that are the victims of it.
It’s a problem that affects us all. As such, it’s a problem we must all help solve.
That’s why we’re partners with the Wisconsin Department of Public Instruction, which just launched its curriculum to help teachers cope with bullying in their classrooms, halls and playgrounds.
The DPI curriculum, called “Time to Act – Time to React,” is a set of lesson plans to help teachers identify bullies and bullying and to teach their students how to deal with it.
The WEA Trust, a not-for-profit group health insurance company that insures many of Wisconsin’s public school employees, paid for the printing of 1,200 sets of the curricula (one for grades 3-5, another for grades 6-8), and a free, interactive DVD available to teachers in any public grade school and public middle school.
This isn’t a state mandate. It’s not a requirement. It’s a helping hand for teachers who feel they need the extra help to keep their students safe.
The problem is clear. So are the goals.
We, along with a large coalition of groups including those with a focus on schools, mental health, law enforcement and child advocacy, are supporting this effort to help keep our schools safe and healthy.
That’s important for insurance companies that feel good mental health is important to a healthy body.
That’s important for the wife of a murdered husband whose life was abruptly ended by a young boy out of control.
We’re encouraging teachers to use the new curriculum. We’re encouraging parents to be aware of what is happening with their children at school. This curriculum is a step in making teachers’ and children’s lives safer today and tomorrow.
Sue Klang is the wife of John Klang, the Weston High School principal killed trying to wrestle a pistol away from a troubled 15-year-old student on Sept. 29, 2006. Evert is executive director of the WEA Trust, Wisconsin’s largest provider of group health insurance for Wisconsin school districts.

Broward Teachers Union Says School District Officials Kept Scores of Emails From School Board Members

Patricia Mazzei:

The Broward Teachers Union accused the school district Thursday of blocking hundreds of e-mails sent by school employees to School Board members since March — without board members’ knowledge.
The union says e-mails about teacher raises, use of federal stimulus money and employee contract negotiations never made it to board members’ in-boxes — or to their junk e-mail folders. Instead, they were filed away on a server and never read.
BTU lawyers sent Board Chairwoman Maureen Dinnen and board attorney Edward Marko a letter Thursday asking the district to stop blocking e-mails and threatening to sue if they don’t do so by Oct. 26.
The letter argues blocking e-mails violates the sender’s and the receiver’s constitutional rights under U.S. and Florida laws.
Superintendent Jim Notter said district attorneys were reviewing BTU’s letter. He questioned its timing, with the district in the throes of negotiating a contract with the union. BTU has asked for an average 4 percent pay increase. The district isn’t offering any raise, but has offered to pick up the difference in employee health insurance.
“Unfortunately we’re back in a position where it’s adversarial,” Notter said.

School district contracts push up tax levy

Jo Egelhoff:

At a time when taxpayers are struggling in this destabilizing recession and most are not seeing wage gains, the Appleton Area School District (AASD) has proposed a budget that increases the tax levy by 9.7%.
At a time when the state budget is suffering billion dollar deficits, when the state has cut its support of AASD, when enrollment has declined by 220 students, and when inflation is 0%, still the district’s total budget increased by over $3 million (from $176 million to $179 million)!
The district’s budget increase is primarily fueled by employee compensation increases, including an 8.2% increase in health care benefits – for a benefit plan that is already a Cadillac. Cost reductions could most certainly be achieved via increased efforts to decrease utilization and increased premium participation (school employees pay only 5% of their health insurance premium that for a family is almost $20,000 a year) and/or simply putting the very costly health insurance program out to bid. As it is now, the union dictates that the health insurance must be carried by an arm of WEAC.
In addition, though the budget reflects a wage freeze for administration employees, no such offer has been forthcoming from the teachers union.

Madison School District & Madison Teachers Union Reach Tentative Agreement: 3.93% Increase Year 1, 3.99% Year 2; Base Rate $33,242 Year 1, $33,575 Year 2: Requires 50% MTI 4K Members and will “Review the content and frequency of report cards”

via a kind reader’s email (200K PDF):

The Madison Metropolitan School District and Madison Teachers Inc. reached a tentative agreement Tuesday evening on the terms and conditions of a new two-year Collective Bargaining Agreement for MTI’s 2,600 member teacher bargaining unit. Negotiations began April 15.
The Contract, for July 1, 2009 to June 30, 2011, needs ratification from both the Board of Education and MTI. The Union will hold its ratification meeting on Wednesday, October 14, beginning at 7:00 p.m. at the Alliant Energy Center, Dane County Forum. The Board of Education will tentatively take up the proposal in a special meeting on October 19 at 5:00 p.m.
Terms of the Contract include:
2009-2010 2010-11
Base Salary Raise – 1.00% Base Salary Raise – 1.00%
Total Increase Including Benefits – 3.93% Total Increase Including Benefits – 3.99%
Bachelor’s Degree Base Rate $33,242 Bachelor’s Degree Base Rate $33,575
A key part of this bargain involved working with the providers of long term disability insurance and health insurance. Meetings between MTI Executive Director John Matthews and District Superintendent Dan Nerad and representatives of WPS and GHC, the insurance carriers agreed to a rate increase for the second year of the Contract not to exceed that of the first year. In return, the District and MTI agreed to add to the plans a voluntary health risk assessment for teachers. The long term disability insurance provider reduced its rates by nearly 25%. The insurance cost reductions over the two years of the contract term amount to roughly $1.88 million, were then applied to increase wages, thus reducing new funds to accomplish this.
The new salary schedule increase at 1% per cell, inclusive of Social Security and WRS, amount to roughly $3.04 million. Roughly 62% of the salary increase, including Social Security and WRS, was made possible by the referenced insurance savings.
Key contract provisions include:

    Inclusion in the Contract of criteria to enable salary schedule progression by one working toward the newly created State teacher licensure, PI 34. Under the new Contract provision, one can earn professional advancement credits for work required by PI 34.

  • Additive pay regarding National Board for Professional Teaching Standards, i.e. an alternative for bargaining unit professionals who are not teachers (nurses, social workers, psychologists, et al) by achieving the newly created Master Educator’s License.
  • Continuance of the Teacher Emeritus Retirement Program (TERP).
  • The ability after retirement for one to use their Retirement Insurance Account for insurance plans other than those specified in the Collective Bargaining Agreement. This will enable one to purchase coverage specific to a geographic area, if they so choose, or they may continue coverage with GHC or WPS – the current health insurance providers.
    For elementary teachers, the frequency and duration of meetings has been clarified, as have several issues involving planning time. All elementary teachers and all elementary principals will receive a joint letter from Matthews and Nerad explaining these Contract provisions.

  • For high school teachers who volunteer for building supervision, there is now an option to enable one to receive compensation, rather than compensatory time for the service. And there is a definition of what “class period” is for determining compensation or compensatory time.
  • For elementary and middle school teachers, MTI and the District will appoint a joint committee for each to study and recommend the content and frequency of report cards.
    For elementary specials (e.g. art, music) teachers, the parties agreed to end the class and a half, which will mean that class sizes for specials will be similar to the class size for elementary classroom teachers.

  • For coaches, and all others compensated on the extra duty compensation schedule, the additive percentage paid, which was frozen due to the State imposed revenue controls, will be restored.
  • School year calendars were agreed to through 2012-2013.
  • Also, MTI and the District agreed to a definite five-year exemption to the Contract work assignment clause to enable the District to assist with funding of a community-based 4-year-old kindergarten programs, provided the number of said 4-K teachers is no greater than the number of District employed 4-K teachers, and provided such does not cause bargaining unit members to be affected by adverse actions such as lay off, surplus and reduction of hours/contract percentage, due to the District’s establishment of, and continuance of, community based [Model III] 4-K programs. (See note below.)

The Clock is Ticking for the Milwaukee Public Schools

Bruce Murphy:

Wow, is Milwaukee Public Schools in trouble.
Back in 2004, I did a story for the Milwaukee Journal Sentinel that found Milwaukee Public Schools was spending 51 cents on benefits for every dollar spent on salaries in 2003. That was projected to increase to 55 cents in 2004. Recently, JS reporter Alan Borsuk did a story noting (toward the back) that MPS was now up to 60 cents on benefits for every dollar in salary and this was expected to increase to 63 cents next year.
That’s a mind-blowing trend. If it continues – and it will, unless major changes are made in its benefits structure – MPS will be forced to gut its staff, impose annual double-digit tax increases or both. The heart of the problem is health care: The plan for employees has few cost controls. And the plan for retirees (many
of whom get lifetime health insurance) is funded on a “pay-as-you-go” basis. The latter is an actuarial nightmare: Each year there are more retirees covered by the health insurance and ever-higher premiums, but the system hasn’t put any money aside to pay for this growth, as a government pension plan normally does. So the costs have started to mushroom.

K-12 Tax & Spending Climate: The US Fiscal Black Hole

Willem Bueter:

It does not yet include price tag for the laudable ambition of the Obama administration to ensure that no American is without health insurance. Nor does it include planned government outlays for updating America’s clapped-out infrastructure or the pursuit of the environmental agenda. Bringing American secondary education (numeracy, literacy, foreign language skills etc.) up to the levels of the most successful emerging markets will also be very expensive, although more government money is only a necessary condition for significant progress in this area; a major change in the governance arrangements for schools in the incentives faced by teachers, heads, pupils and parents are also necessary. And I cannot really envisage Obama confronting the American Federation of Teachers. Without reform in governance and incentives, even vastly increased public spending on health and education will achieve in the US what it achieved the UK under Labour in the past six years: very little indeed.

Five Money Lessons for New College Grads

Karen Blumenthal:

This spring’s college grads are heading out into a world where jobs are tough to come by. The economic outlook is uncertain and all the older people they know are feeling the pain of stock-market losses.
Worse, there are all kinds of nitty-gritty details to deal with: opening bank accounts, choosing health insurance, finding an apartment, lining up transportation and figuring out how to invest. How is a young person supposed to get ahead in this environment?
It’s not easy to master money management during the best times and it’s especially hard to navigate the challenges of a recession. Still, many of the same basic principles apply in good times and bad. And getting a taste of a downturn at the start may make current graduates smarter and more thoughtful than those who graduate during boom times.
Here are five broad financial lessons that can pay dividends for a lifetime:

Study Finds Millions in Waste in the Milwaukee Public Schools

Alan Borsuk:

Milwaukee Public Schools could save as much as $103 million a year if it operated like a well-run business, according to a much-anticipated report that has Gov. Jim Doyle and Milwaukee Mayor Tom Barrett taking steps that could lead to a takeover of the system.
The report, released Thursday, concludes that MPS does not have a culture aimed at achieving good results, and is in tenuous financial shape that will worsen without systemic changes.
The report mostly sidesteps the academic side of MPS, concentrating instead on business operations, from busing to lunch programs to purchasing practices to health insurance policies. It found waste in every area – inefficient payroll processing, overqualified maintenance teams, even pencil sharpeners that cost more than $100. The report also found more than five dozen central office jobs with six-figure salaries.
Spending outside the classroom is about a third of total MPS spending.
“To free up funds needed to close its worrisome academic achievement gaps, MPS must first get its financial house in order,” the report says.
Invoking powers granted the state by federal law, Doyle and Barrett said they will move within several weeks to create a council of community leaders to pursue major changes in the way MPS conducts business – and, ultimately, how well it educates children.

A Family Illness, and Fewer Friends Who Can Help

Vanessa Fuhrmans:

Chris and Vickie Cox’s health insurance never covered the full cost of treating their children’s bone-marrow disorder. They relied on donations from their church, neighbors and family to plug the holes in their coverage, which ran as high as $40,000 a year.
That safety net is now unraveling. The slumping economy is pulling down fragile networks of support that in better times could keep families with insurance but big bills from falling into a financial hole.
The three Cox children have a rare disease called Shwachman Diamond Syndrome, which curtails the production of bacteria-fighting blood cells and digestive enzymes needed to absorb nutrients properly. It can lead to life-threatening infection, bone-marrow failure or a deadly form of leukemia.
After Samuel, 7, Grace, 12, and Jake, 15, were diagnosed with the genetic disease earlier this decade, landing a job with good health benefits became the biggest priority for Mr. Cox. He gave up plans to run his own home respiratory-care business to work as a salaried medical-equipment salesman. In 2006, the family moved to North Carolina from Kansas City to be closer to specialists at Duke University.

Milwaukee Public School District’s “Spending High, But Results Low”

Alan Borsuk:

Milwaukee Public Schools spends significantly more per student than comparable systems around the United States, but, by one measure, has some of the weakest academic results, according to a new analysis by the Wisconsin Taxpayers Alliance.
In line with other research in recent years, the private, nonprofit research organization based in Madison found that the cost of benefits in MPS was especially high – higher than any of the other 15 districts analyzed.
The practices in MPS of paying large amounts for health care for retirees and for supplemental pensions to encourage early retirement, as well as the high price MPS pays for health coverage for everyone in its system, were listed as factors in the high costs of running the system.
The analysis by the Madison-based private, nonprofit organization, which is also known as WISTAX, found:
• MPS spent $8,702 per student in 2005-’06 in compensation for employees, third highest among the 16 districts examined. Only Columbus, Ohio, and Indianapolis were higher.
• Total spending in MPS was $11,277 per student in 2005-’06, also the third highest in the study. The amount spent on instructional costs, $6,825, was the highest among the 16 districts, while the amount spent on central administration costs was the third highest.
• Spending on benefits was $3,195 per student, more than $500 above the second highest school system. Only four of the other districts spent more than $2,000 per student for benefits, including retirement costs and health costs. The MPS benefit costs were 90% above the median of the other 15 districts.
“According to figures from the Wisconsin Association of School Boards, MPS health insurance premiums were more than 50% above the average private sector rate in Wisconsin and about 15% higher than the average Wisconsin school district,” the report said.

Report outlines cost-savings, no new revenues for Massachusetts education

James Vaznis:

The governor’s ambitious overhaul of public education — from universal preschool to free community college — appears likely to be placed on hold, as the state grapples with a massive budget deficit that could lead to funding cuts for local school districts.
An education finance committee that was appointed by the governor last summer said today that the economic downturn is preventing it from recommending any immediate measures to raise revenue to pay for the governor’s plan. Instead, the committee recommended modest cost-saving measures that could yield $550 million.
“The commission recognized that the state is facing completely different fiscal realities than were contemplated this past summer,” according to a report released today by the commission. “The most recent estimates for the fiscal year 2010 budget predict a deficit of between $2 and $3 billion dollars. … The commission’s deliberations, therefore, concentrated on the urgent need to find opportunities for cost savings and to maintain support for our education system in a time of inadequate resources.”
The cost-saving measures focus heavily on encouraging local school districts to pool together resources to increase their ability to negotiate better purchase prices for things such as health insurance, energy contracts, and classroom supplies as well as share some administrative jobs.

Washington, DC School Chief Takes on Teacher Tenure, and Stirs a Fight

Sam Dillon:

Michelle Rhee, the hard-charging chancellor of the Washington public schools, thinks teacher tenure may be great for adults, those who go into teaching to get summer vacations and great health insurance, for instance. But it hurts children, she says, by making incompetent instructors harder to fire.
So Ms. Rhee has proposed spectacular raises of as much as $40,000, financed by private foundations, for teachers willing to give up tenure.
Policy makers and educators nationwide are watching to see what happens to Ms. Rhee’s bold proposal. The 4,000-member Washington Teachers’ Union has divided over whether to embrace it, with many union members calling tenure a crucial protection against arbitrary firing.
“If Michelle Rhee were to get what she is demanding,” said Allan R. Odden, a professor at the University of Wisconsin who studies teacher compensation, “it would raise eyebrows everywhere, because that would be a gargantuan change.”
Last month, Ms. Rhee said she could no longer wait for a union response to her proposal, first outlined last summer, and announced an effort to identify and fire ineffective teachers, including those with tenure. The union is mobilizing to protect members, and the nation’s capital is bracing for what could be a wrenching labor struggle.

A Look at the Milwaukee Public Schools’ Fringe Benefit Costs

Alan Borsuk:

Milwaukee Public Schools retirees and part-time employees earn “considerably more generous benefit levels” than other groups, according to a major consultant’s report to the School Board.
The report, which comes as financial and political pressures on MPS are at levels that may be unprecedented, found that fringe benefits cost the school system 61.5 cents for every dollar spent on wages. That compared with 24.5 cents when figures for a dozen comparable employers and MPS were calculated all together.
The New York-based consulting firm, the Segal Co., analyzed data from MPS and 33 comparable employers, including school districts in Wisconsin and elsewhere and other government units. The results of the analysis are to be presented to the School Board’s finance committee Thursday night, but no action will be taken then.
With two supplemental pension funds for early retirees, MPS makes payments to four pension funds, with annual payments equal to 14% of its payroll, compared with an average of 9.9% for other public employers in the study.
And practices such as giving full health insurance to people who work 20 hours a week, and in some cases less, and giving people who retire at 55 almost the same health insurance as active workers are uncommon among employers, the report says.

Referendum Climate: Madison Mayor Orders 5% Cut in 2009 City Budget

A possible Fall 2008 Madison School District Referendum may occur amid changes in City spending (and property taxes). Mayor Dave Cieslewicz’s Memo to City Managers includes this [PDF]:

This is the most challenging budget year I have seen in six years and it appears to be among the most challenging in two decades or more. High fuel prices combined with lagging revenues associated with the economic downturn and increases in debt service and other costs will force us to work hard just to maintain current services. Other typical cost increases in areas such as health insurance and wages will create additional pressure on our budget situation.
Based on current estimates, our “cost to continue” budget would result in an unacceptably high increase of about 10% for taxes on the average home and a levy increase of around 15%.

Via Isthmus.
Related:

One would hope that a referendum initiative would address a number of simmering issues, including math, curriculum reduction, expanded charter options, a look at the cost and effectiveness of reading recovery, perhaps a reduction in the local curriculum creation department and the elimination of the controversial report card initiative. Or, will we see the now decades old “same service approach” to MMSD spending growth?

5 districts may need taxpayers’ help to avoid default if investment schemes sour

Amy Hetzner & Avrum Lank:

Five Wisconsin public school districts have made an investment gamble that could force taxpayers to finance multimillion-dollar bailouts.
The districts – Kenosha, Kimberly Area, Waukesha, West Allis-West Milwaukee and Whitefish Bay – have piled up debt in deals to help fund health insurance and other non-pension benefits for retirees. But as global financial markets have seized up, the districts have been told the value of their investments has fallen so much that they might need to come up with a combined $53 million to avoid default.
Specifically:
Kenosha might need almost $8 million in additional collateral or risk default on $28.7 million.