Posted: 1/11/08
NB School Board approves contract, Setter voted against
 North Branch School Board member Donna Setter voted against the acceptance of a new contract with the district's teachers' union. She noted the financial situation of the district as the driving force in her decision. |
By Patrick Tepoorten
The North Branch School Board approved a new contract with its teachers' union on Thursday night. But the two-year, 7.6 percent increase did not sit well with at least one board member. Donna Setter, who served on the negotiation committee, voted against the new deal.
Setter stated after the meeting that her vote was by no means a reflection on staff. "The teachers are deserving," she said, adding, "I'm concerned about the contract's financial impact on the budget."
The contract, which encompasses the current school year and the next, includes salary schedule increases of 2.25 percent in the first year, and 2.44 percent in the second year. The district also made increases to tax shelter matching funds, as incentives for teachers to choose those shelters over the more traditional severance payments. As well, the shelters were made available to a larger percentage of staff.
According to district Financial Director Randi Johnson, the tax shelter changes are a benefit to the district, which gets to recognize the work of teachers while they are still employes by the district, and they reduce the amount of large lump sums it has to pay when retirements occur.
Other changes include the restructure of extra-curricular pay schedules, changes to the severance pay-out schedule, and changes to the benefit package for disabled teachers.
When all of the changes and increases are factored together using the Minnesota School Board Association's cost model, it results in the 7.6 percent total package increase over the two years.
Responding to Setter's concerns, Johnson said on Friday morning that some budget adjustments will have to be made, especially in the second year, but the district does not expect to have to cut to accommodate the entire increase.
In real dollars, the district expects to pay out roughly 1.5 million more in the next two years over the last two. Not all of that is a direct result of the new contract, some is tied to scheduled seniority and other "steps" that are a part of existing agreements.
"There's no question there will be a negative impact on next year's budget," said Johnson, but added that it was "expected."
When the district made $2.5 million in budget cuts back in April of 2007, it did not cut to accommodate the new contract. That was a deliberate choice. As Johnson put it, there was no point in "making cuts in advance of an unknown number."
Although the contract is likely to create challenges for next year's district budget, it will not have to absorb the entirety of the increases. Johnson noted that additional fund balance, increases in the legislative funding formula, improvements to special education funding formulas, and other funding streams will absorb a portion of the increase. But Johnson still expects the district will have to tighten its belt some. "We will have to make budget adjustments to make up the rest."
The school board is expected to have a much clearer picture of what cuts will be necessary at the end of February, when Johnson will gives a preview of the upcoming budget cycle.
The district's teachers' union, the North Branch Education Association, voted to accept the contract on Jan. 4, and everyone involved was pleased with the process and result. The NBEA's lead negotiator, Al Jones, said, "Given the financial constraints of the district, we are satisfied with the outcome." He called the negotiation "professional and respectful," a sentiment that was echoed on Thursday night by NBEA co-president Michelle Moosey.
Setter, who has kept the board apprised of progress throughout, on many occasions complimented the civility of the process.
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