preparing fact finding presentations & reviewing recent reports february 11, 2011 tom white...
TRANSCRIPT
Preparing Fact Finding Presentations &
Reviewing Recent ReportsFebruary 11, 2011
Tom WhiteAssociate Director, Labor Relations
Fact Finding
What is it?
A step in the process of labor relations…
• Negotiations
• Mediation
• Fact finding
• Impasse/Implementation
Fact Finding
What is it?
Quasi-judicial hearing by a third party neutral to hear the issues and arguments in a labor contract dispute and render a public report with recommendations from the fact finder for reaching a settlement.
Fact Finding
• The report is a set of recommendations
• It is NOT binding
• The state pays the fact finder’s fee but you pay for your representation and preparation costs
Fact Finding
Why is it important?
• Strategic value
• Face saver
• New look at old issues
• Provides political leverage
• Part of the process for settling contract or reaching impasse
Fact Finding
• Not extensively used in the past
• May be time to reconsider its value/usefulness– The economy and “facts” are generally in
management’s favor
• However, it is time consuming!– Preparation – Lengthy and expensive hearings
Fact Finding
• Who are “fact finders”?– Arbitrators or labor experts, often attorneys– May or may not know about how schools
operate and are funded– MERC keeps a list
Fact finding
• The process for getting there– Negotiated for a “reasonable” period– After mediation has failed– Make application to the state through MERC– MERC sends you 5 names – strike the
“unacceptable” names, rank order remaining and submit back
– MERC picks fact finder based on Mgmt and Union responses
Fact Finding
Process
• It may take 3-4 weeks to hear back from MERC
• Scheduling a date can take another 4-8 weeks
• May take more than one day of hearing
• 30-60 days to issue a report following the hearing
Fact Finding
Process after selection of fact finder
• Contact fact finder
• Confirm process they wish to use for hearing
• Check MERC Web site or call MASB for prior cases by the same fact finder
Fact Finding
Process
• Set up like a typical hearing, but normally less formal
• Use written exhibits and expert testimony to make your case
• Union will bring in “experts” to assist and you should too!
Fact Finding
The Hearing
• Conduct of the hearing depends largely on the fact finder
• Some are very formal, others not
• Ask him/her in advance how the hearing will be conducted
Fact Finding
Preparing Your Case and Exhibits
Decide on themes
• Ability to pay
• Fairness
• Problem solving
Develop a “story” around the themes, and use exhibits to tell
Fact Finding
Preparing Your Case and Exhibits
• Show trends over time– Salaries and Fringes– 10 year trend – Cost per employee per year– Expenditures per pupil each year
• Employee moving through salary schedule
Fact Finding
Preparing Your Case and Exhibits
• District Financials– Audit summary– History of fund balance
• Explain a fund balance
– Revenue and/or Expenditure Issues
• Use expert testimony/”impartial” support to make your points
Fact Finding
Preparing Your Case and Exhibits
• Financials– Consider expenditure comparisons using
Bulletin 1014 data– If claiming inability to pay, list all the efforts to
save costs you have already implemented
Preparing Exhibits
Generally
• Background on your community
• Summary of how school funding works– All districts do not receive same– The status of school funding in Lansing
• Specific Issues in your situation– Bargaining history– Your rationale and supportive documentation
Fact Finding
Types of Exhibits
• Comparative data– Comparable schools districts– Other employees in your district– Public sector in your area– Private sector in your area
Fact Finding
Types of Exhibits
Economic data
• School Aid issues
• Local property values/issues
• Michigan’s economy
• Trends in pupil count
• Let the Fact Finder know where you are.
MAKE IT YOUR STORY
• Provide a summary of the demographics of the school district community.
• Remind the Fact Finder of your focus … brag a little about student achievement.
MAKE IT YOUR STORY
• Use local media.
“Districts Still Losing Students” (Escanaba Daily Press, March 13, 2008)
“Board Cuts 14 Jobs to Keep Doors Open” (The Houghton Lake Resorter, 1/12/06)
“Laingsburg Institutes Pay to Participate” (The Owosso Argus-Press, April 17, 2008)
“Cheboygan Hospital Cuts Nine Staff Positions” (Cheboygan Daily Tribune, November 11, 2008)
“Nearly 7,500 in County to Get Help with Food Bill” (Sturgis Journal, October 22, 2006)
“Jobless Rates Hit Double Digits Here” (Kalamazoo Gazette, January 30, 2009)
“Food Pantries Feeling Effects of the Economy” (River Country Journal, December 23, 2008)
“Georgia-Pacific Plant Closing Eliminates 210 Jobs” (Gaylord Herald Times, 3/6/06)
MAKE IT YOUR STORY
• Do not assume the Fact Finder is knowledgeable regarding school systems and public school financing in Michigan.
RISKY ASSUMPTION
• Provide a summary of agreements reached in this round of bargaining.
• Summarize current proposals.
CURRENT STATUS AT THE BARGAINING TABLE
• Show previous salary increases.
CONTEXT
Year Percent Increase
1992-93 6.0%
1993-94 2.5%
1994-95 2.5%
1995-96 2.5%
1996-97 3.0%
1997-98 2.7%
1998-99 2.7%
1999-2000 2.9%
2000-01 2.9%
2001-02 2.9%
2002-03 2.8%
2003-04 2.0%
2004-05 1.8%
2005-06 2.0%
2006-07 2.0%
• Demonstrate the cost of step increases (yes, a step increase is a “raise”).
CONTEXT
SUMMARY: 35 teachers received a salary step
increase, with an average increase of $3,142 (an
average of 6.3%)
• Track one teacher as an example.
CONTEXT
The following is an example of total percent increases in salary for a Sampleville teacher, based on the following :
• Teacher hired at beginning of 1991-92 school year • Teacher received 20 credits beyond the bachelor's degree, effective 6th year
• Teacher received Masters degree, effective 11th year
CONTEXTYear in District
Step (S) or Lane (L) Increase
Amount of Increase (Step or
Lane)
Increase Applied to
Entire Salary Schedule
Total Annual Salary
Increase
Cumulative Compounded
Salary Increase
1992-93 2nd S 1.1% 6.0% 7.2% 7.2%
1993-94 3rd S 5.1% 2.5% 7.7% 15.4%
1994-95 4th S 2.9% 2.5% 5.5% 21.8%
1995-96 5th S 4.1% 2.5% 6.7% 29.9%
1996-97 6th S 3.9% 3.0% 7.0% 39.0%
1997-98 7th S and L 8.3% 2.7% 11.2% 54.6%
1998-99 8th S 5.9% 2.7% 8.8% 68.2%
1999-2000 9th S 6.2% 2.9% 9.3% 83.8%
2000-01 10th S 6.9% 2.9% 10.0% 102.2%
2001-02 11th S 11.0% 2.9% 14.2% 130.9%
2002-03 12th L 4.6% 2.8% 7.5% 148.3%
2003-04 13th 0.0% 2.0% 2.0% 153.3%
2004-05 14th 0.0% 1.8% 1.8% 158.4%
2005-06 15th 0.0% 2.0% 2.0% 163.5%
2006-07 16th (longevity) 1.6% 2.0% 3.6% 177.1%
• Show previous salary increases compared to C.P.I.
CONTEXT
CONTEXT
• Show previous employee contribution to health insurance premium.
CONTEXT
INTERNAL COMPARABLE DATA
Accounting Supervisor 0.0%
Athletic Director 0.0%
Bookkeeper 0.0%
Bus Drivers 0.0%
Business Manager 0.0%
Central Office Manager 0.0%
Custodians 0.0%
Food Service Workers 0.0%
Maintenance Workers 0.0%
Mechanic 0.0%
Operations/Maintenance Director 0.0%
Paraprofessionals 0.0%
Principals 0.0%
Secretaries 0.0%
Superintendent 0.0%
FOR SAMPLEVILLE EMPLOYEES07-08 WAGE INCREASE
• Consider using MDE’s Bulletin 1014 (which uses actual dollars paid for teacher salaries).
EXTERNAL COMPARABLE DATA
Code District / County Name
General Fund
Revenues Per Pupil
(All Sources)
Rank
78110 Owosso Public Schools 8,234 178080 Perry Public Schools District 8,119 278030 Durand Area Schools 8,109 378060 Morrice Area Schools 8,048 478020 Byron Area Schools 7,833 578100 Corunna Public School District 7,662 678040 Laingsburg Community School District 7,557 778070 New Lothrop Area Public Schools 7,410 8
EXTERNAL COMPARABLE DATA
Code District NameAverage Teacher Salaries
Rank
78110 Owosso Public Schools 58,925 178040 Laingsburg Community School District 55,539 278020 Byron Area Schools 54,456 378030 Durand Area Schools 52,687 478080 Perry Public Schools District 52,667 578060 Morrice Area Schools 51,296 678070 New Lothrop Area Public Schools 50,609 778100 Corunna Public School District 50,072 8
EXTERNAL COMPARABLE DATA
General Fund
Revenues Per Pupil
(All Sources)
Owosso Public Schools 8,234Laingsburg Community School District 7,557
Difference 677Laingsburg Pupil Enrollment (2006-07) 1,304
Revenue Gap (2006-07) $882,808
REVENUE GAP BETWEENLAINGSBURG AND OWOSSO
General Fund
Revenues Per Pupil
(All Sources)
Rank
Membership Group Code L 8,538Laingsburg Community School District 7,557 106 (of 107)
Average Teacher Salaries
Rank
Membership Group Code L 47,513Laingsburg Community School District 55,539 25 (of 107)
EXTERNAL COMPARABLE DATA
• Citizens Research Council of Michigan• Regional Media
“Granholm to Slash Budget as Economy Worsens” (The Detroit News, November 7, 2008)
“State Tries to Craft Budgets Amid Economic Uncertainty” (Crain’s
Detroit Business, November 16, 2008)
“2009 Could Bring Further Economic Turmoil” (The Detroit Free Press,
November 16, 2008)
MICHIGAN’S ECONOMY
• Bureau of Economic Analysis (U.S. Department of Congress)
LOCAL ECONOMY
1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
96% 95% 94% 92% 88% 85% 88% 88% 89% 88% 82% 81% 81% 79% 82% 81% 83% 89% 85% 81% 81% 78% 80% 78% 74% 75% 77% 74% 72% 71%
Shiawassee County, MichiganCA1-3 - Per capita personal income, percent of US
60%
65%
70%
75%
80%
85%
90%
95%
100%
TRENDLINE
• Foundation Allowance Trend
DISTRICT FINANCES
• Revenue and Expenditures Trend
DISTRICT FINANCES
• Revenue Loss Due to Enrollment Decline
DISTRICT FINANCES
• Insurance Premium Trend
DISTRICT FINANCES
• A great summary:“Simply put, our financial obligations have
increased dramatically and our revenue hasn't.”
The source?
MEA“Answers to Your Questions about Budget Crisis”
MEA Voice (April 2003)
DISTRICT FINANCES
Oh, and by the way …
MEA’s 2008 LM2 Report (submitted to the U.S. Department of Labor), indicates that
MEA received (in “other receipts”) …$4,268,449 from MESSA
DISTRICT FINANCES
• Fund Balance Target
MSBO: “15 to 20%”
Your Auditors’ Recommendation
FINANCIAL IMPACT OF PROPOSALS
• District’s Fund Balance Trend …
FINANCIAL IMPACT OF PROPOSALS
• The Bottom Line…
FINANCIAL IMPACT OF PROPOSALS
QUESTIONS…
