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Posted: 12:00 a.m. Sunday, Nov. 25, 2012

Pay freezes, cuts saving millions at local schools

District employees also paying more in health insurance.

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By Jill Kelley

Staff Writer

Staff pay freezes have become the rule, rather than the exception, at Miami Valley public school districts.

Across the state and at dozens of local districts, from Springfield to Dayton to Hamilton, base pay and/or step pay freezes have been implemented in response to large-scale revenue losses, as well as political pressure.

Base pay equates to salary, while step raises are aligned with years of experience or education.

Andy Jewell, a researcher for the Ohio Education Association, said roughly 80 percent of Ohio public school districts negotiated pay freezes in 2011, as state budget cuts were announced and Senate Bill 5 loomed.

“Bargaining step freezes was pretty uncommon before SB5,” Jewell said. “But pretty much every district in the state has been through some sort of pay freeze.”

At many districts, these wage freezes were introduced in concert with increases to health care costs; at some others, these pay freezes are in addition to pay cuts.

The combination has added up to millions of dollars in cost avoidancefor local schools.

Lebanon City Schools is one of the districts currently operating within a three-year base and step pay freeze, and whose administrators also volunteered to take a 3 percent cut in pay in 2011.

Mark North, Lebanon superintendent, said the pay freeze was a result of transportation, classified and certificated employees agreeing that a pay freeze was in the best interest of the district and its budget.

“In addition, administrators thought taking a 3 percent cut in pay would help us maintain services and support for the students,” North said. “We also had a levy on the ballot (at that time) and we were asking our stakeholders to give (via taxes).”

That November 2011 levy narrowly passed, raising $3 million annually for the Warren County district. It’s estimated the pay cuts and freezes will add up to about $1 million each year.

“We were able to do some things we would not have been able to do without (cuts and freezes),” he said. “Those are significant dollars.”

The last five years have been economically arduous across the country, and employees from myriad workplaces who were able to retain their jobs often had to go without raises and/or take reductions in pay.

Data from the Bureau of Labor Statistics shows that, although there were slight dips and jumps along the way, private-sector employees’ average earnings have remained relatively flat between 2006-12.

In Ohio, the average classroom teacher salary and administrator salary have steadily climbed between 2006 and 2011 — from $51,345 to $57,904 for teachers, and $67,862 to $76,037 for administrators, according to data from the Ohio Department of Education.

This largely is attributed to the fact that the majority of school employees belong to unions that give them a greater voice in salary negotiations and compensation packages. This discrepancy, as compared to some working in the private sector, was a point of contention raised by some local residents during the recent election.

Brian Smith of Jackson Twp. said the playing field needs to be leveled between the private and public sectors and for districts to be more fiscally responsible. He added that the “emotional blackmail” employed during school levy campaigns needs to stop.

“Just the health care portion alone is approximately 300 percent better than what the taxpayers paying for it (receive),” Smith said. “In 2011, I saw salary increases of up to 9 percent in this economy. Explain that to little Johnny when his field trips, busing, sports and programs are taken away.”

Nick Treneff, spokesman for the State Teachers Retirement System of Ohio, said the tight economy has bred this conflict.

“It’s at times like these when folks start taking a closer look at the benefits other groups are getting,” Treneff said. “Also, some of the more recent taxpayer group movements, the Tea Party and such, have taken a closer look at public sector wages and benefits.”

Treneff added that teaching takes a great deal of education and hard work.

“Most of the teaching jobs require master’s degrees, which means a number of years in school and many have student loans to pay back,” he said. “There’s definitely some skin in the game for those who get into education.”

Many of the pay freezes districts are working within began in 2011, and are not yet reflected in the ODE data regarding average salaries. The exceptions to that include Dayton, Springboro, Miamisburg, Centerville, Fairborn, Xenia, West Carrollton and Trotwood-Madison, whose pay freezes started between 2008 and 2010.

Most local school districts will resume contract negotiations in 2013 or 2014. State-mandated teacher and principal evaluation models keyed largely to student performance must be adopted by all Ohio districts for 2014-15, and could further affect pay for school employees.

Jewell said he expects more bargaining and fewer pay freezes in the coming years.

“Folks will not be expected to decrease their purchasing power,” he said. “We have to do what can we do to attract and retain the best and the brightest teachers and, frankly, money should be part of the equation.”

Like Lebanon, Beavercreek and Middletown are among the districts that have implemented pay cuts in addition to pay freezes in the last 18 months.

At Middletown City Schools, all employees agreed to a 1 percent pay cut in 2011-12 and another 1 percent cut in 2012-13. Middletown, like most area districts, also increased the amount its employees pay into their health insurance. The Butler County district increased the amount employees pay in by 10 percent between 2011-13.

These changes are projected to amount to close to $4 million in that time span, according to district officials.

Beavercreek City Schools’ administrators, teachers and support staff agreed to a 2 percent pay cut for the 2011-12 school year. Base and step pay were frozen for 2012-13, and health insurance premiums increased. These measures are expected to add up to about $4 million for the Greene County district.

Bellbrook-Sugarcreek City Schools Superintendent Keith St. Pierre said, in addition to the three-year base and step freeze that employees began in 2011, the amount the staff pays into their health care was increased from 10 percent to 15 percent this year and will go up to 20 percent for 2013-14.

“In essence, the staff took a pay cut by paying more for their health care,” said St. Pierre, whose district reported a projected savings of more than $1 million. “(Pay freezes) have helped us stay in the black and off the levy ballot.”

Employees at Xenia and Kettering districts also went from paying 10 percent to 15 percent on their health care premiums, and had the amount that was contributed to their Health Savings Accounts reduced.

“Each of these reductions have been a significant cost savings to the district at the employee’s expense,” Xenia spokesman Mark Manley said.

Some districts’ employees, including those in Springfield and Tipp City, have been paying 17 percent to 18 percent for health care premiums for multiple years. Tipp, like Mad River, also increased its co-pays for employees.

Kettering Treasurer Steve Clark said employees’ retirement contribution also will increase by 1 percent per year for four years, starting next year, for the Montgomery County district. This is in addition to base and step pay freezes for 2011-14 and 2011-13, respectively.

“I estimate the average annual savings to the district for the current contract to be, conservatively, over $5.4 million a year,” or $16.2 million total, Clark said.


PAY FREEZES

Multiple Miami Valley public school districts are operating under base and step pay freezes for all employees, including:

Base and step freezes: Springboro, Troy, Trotwood-Madison, Xenia, Middletown, Beavercreek (partial step freeze), Lebanon, Kettering, Bellbrook-Sugarcreek, Fairborn, Vandalia-Butler, Hamilton, Springfield (partial step freeze), Tipp City, Oakwood, Miamisburg and Mad River.

Base freeze only: Centerville, Dayton, Huber Heights, Valley View and West Carrollton.

Step freeze only: Northmont (had base pay freeze for 2011-12 and will resume that base pay freeze for 2013-14)

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