WPCNR QUILL & EYESHADE. By John F. Bailey. June 24, 2009: The teachers’ contract the White Plains City School District approved Monday evening will cost the district $3 Million a year in higher pay for its teaching force, approaching $10,000,000 when automatic step raises for longevity and degree acquisition and the factor of compound growth is considered.

The $10 million is mitigated somewhat by a $600,000 savings negotiated from the teachers union on medical care benefits, the next two years, based on figures provided by the business office, but based on preliminary analysis does not at all compensate for the inexorable, apparently unstoppable growth in teacher payroll. Though straight salary increases were held to 2%, 2% and 2.5%,  failure to address the inexorable effect of automatic 3-1/2% increases for length of service and progress towards teaching degrees sets the course for teacher payroll for another three years.

According to Mr. Seiler,  the total cost per year in increased  salaries to the School District generated by the approved contract last night is $1.2 Million in new salaries a year in 2008-09 and 2009-10, and $1.350 Million in 2009-10 (where salaries are increased at midyear) for a total raise of $3.75 Million.

 One-quarter of the increase in wages according to Seiler’s projection would be covered by a projected best case scenario of $300,000 in savings in health care benefits a year, the next two years,  negotiated as part of the contract. This gives the district a net increase in salary minus benefit savings  of $3.1 Million  ($3.750 Million  minus $600,000 in benefits savings.

Mr. Seiler said WPCNR was correct in reporting last week  that two/thirds of the 651 teachers would receive total pay increases of  17% (based on the three year increases of 2%, 2% and 2.5% by July 1, 2010, while one third of the teachers are already at the top grade.

Readers should note, though that those teachers at the top end of the scale also get the benefit of the total 6.7% increase (made up of the 2%,2% and 2-1/2% raises each year of the three year contract.

He confirmed WPCNR’s analysis  that the 3.5% step raises based on longevity and degrees-earned progress have already been incorporated this year and will be added to the 2% raise across-the-board coming up July 1, swelling the increase to 5.5% on each step level in 08—09 and 2009-10 and 2010-11.

When the automatic 3.5% step raise across all salary levels  is added to the mix, the retroactive increase raises salaries in 08-09,09-10, and 2010-11 increase total teacher salaries, when you consider the compounding factor the next two years that approaches  $6,000,000 add that to the $3.1 Net salary increase and the total payroll injection to teacher salaries is $9.1 Million, and with year-to-year compounding the total settlement approaches $10 Million.

Seiler said the salary increases are offset by savings in health care givebacks by the union, and would be beneficial to the district moving forward.

“Both sides are equally unhappy with the agreement,” Seiler said. “That’s usually a good sign.”

Seiler said it was difficult to plan how many teachers would switch from one plan to another, but said that the plan half the teachers had, Health Net would have an increase in the Copay from $5 to $20. That would result, Seiler said in Health Benefit savings of 10% to the district,  and with the medical premium portion teachers pay increased to 8% and 9%,  total savings would be from $100,000 to $175,000.

The teachers, Seiler said had agreed that the school district could abandon the most expensive health care plan, Empire Blue Cross/Blue Shield.  If they chose to keep the plan they could but would have to agree to pay the cash difference between 92% of the SWSCHP premium and the premium charged for like coverage under the Empire plan.

Retirees from the district would not be required to drop the Empire Plan.

Seiler said the district expected to save from $75,000 to $125,000 on the Empire switch.

Seiler also noted the teachers’ agreement to pay 8% of their medical benefit premium in 2009-10 and 9% in 2010-11 would also contribute to the savings the district would have in premiums if premiums went up in future years.