Teachers School District Far Apart in Contract Talks. Mediation Next.

WPCNR SCHOOL DAYS. By John F. Bailey. October 29, 2008 UPDATED October 30, 2008: Peter Bassano, a member of the White Plains Board of Education, clarified to WPCNR the present of state of talks on a new contract between the School District and the White Plains Teachers Union, who have been  working without a contract since June 30.


Mr. Bassano said that the two sides were, based on Monday afternoon discussions and prior that those negotiaons had not been “fruitful,” and the district and the teachers were “far apart” on the issues of salary and benefits, though progress had been made on teacher contributions for benefits being based on a percentage of salary rather than a straight cash contribution.  Salary is the issue.



White Plains Superintendent of Schools Timothy Connors


Superintendent of Schools Timothy Connors confirmed to WPCNR Thursday afternoon that both the Teachers Union and the School District have jointly declared an impasse in contract negotiations. Connors said the first step would be mediation by a mediator appointed by the New York State Employer Relations Board, a state government department, whose mediation services are available at no cost to the district.


 Connors did not indicate how long he thought mediation would take, but did say that the if mediation did not reach an agreement, the next step would be fact-finding, then arbitration.


Connors said teachers this year would receive no salary increases except for the contractual increases based on years of service and progressions achieved in their degrees earned.  He said service increasew would amount to about 1.5%, and if a person earned both a service increase and an increase based on academic progress it would amount to 2%. He said teachers who had reached the maximum years of service would not receive the 1.5% increase.


 



He said at that point, whenever one side or the other feels that further talks will not fruitful, there is a legal step that is filed called a “Declaration of Impasse.”


Bassano said that the next step would be mediation, then a process called fact-finding, followed by bringing in a mediator. He said that mediation was not binding. Arbitration was the next step after that. He said neither fact-finding, mediation, or arbitration was binding.


“Money is the issue, “ Bassano said, “We are very far apart on that. We don’t see any benefit in continuing these meetings.”


Bassano said that Governor Patterson’s recent announcements of a $47 Billion deficit over the next four years and a current $1.5 Billion deficit in the current state budget, raised the possibility that the District’s state aid in the budget for the current school year would be cut, as well as cut in 2009-2010.


The state aid in the current year is $15,306,590, a 9.35% increase over 2007-2008.  


The teachers continue to be paid at the salaries in effect last year with all step levels in effect, Bassano said, according to the Triborough Law.


Bassano said he did not think the public would be accepting of large teacher raises in the present economic climate.


Two years ago, teachers signed a one year salary agreement which expired June 30. In that contract teachers received  a 3% raise across all levels and steps, and conceded that they would pay a cash amount for certain coverages. However, the increases in Co-Pays and other fees in the health plans have cut substantially into the raises received at that time, according to Teachers Union President Kerry Broderick.


A total of $1.4 Million of  the $2.4 Million state aid increase was paid for in part by  the reduction in the STAR EXEMPTION statewide which forced White Plains taxpayers to kick back an additional $1.4 Million in taxes.


The present White Plains School Budget is $184.4 Million and if salaries stayed the same and the budget increased only 7%, essentially the average increase over the last five years, the budget will hit $197 Million in 2009-2010. A 5% raise in teacher pay – the rate of inflation in the New York metropolitan area dating back to September 2007 – would mostly likely increase the budget to  the $203 Million level.  Projecting forward, if salaries remain at current levels, and the district budget increases  10%  a year (assuming salary increases and increased expenses), in five years the school budget will reach $300 Million. Should year to year expenses be held to 5% increases a year, the budget will be $250 Million. Increases would most like have to be paid for by  substantially increased property taxes due to the slow down in real estate values in White Plains. The  


The School Aid Increase in White Plains  this year was paid for directly in part by White Plains taxpayers. About $1 Million of the $2.4 Million in  much-ballyhooed state aid came out of property tax increases that occurred when the STAR EXEMPTION was cut 10%, lowering the amount you could deduct from your home assessed value. WPCNR was the only media to report this clandestine move by the legislature.


Benefits Issue Revisited.


As reported last month, the benefits issue has hurt teacher salaries in the past, and we reprint that discussion:


The sticking point, Ms. Broderick said were the increases in premiums paid the district health care provider the teachers have had to pay out of their salaries the last year and increases in the co-pays. She said the teachers are seeking to make up those costs.




The agreement on a two-year contract insulates any new Superintendent of Schools hired by the district from negotiating with the union in his or her first year of their contract.



Fred Seiler, Assistant Superintendent for Business for the district confirmed that premiums with the Statewide Schools Cooperative Health Plan, the consortium the district has contracted with for health benefits have gone up 17% since July 2007. He said, Co-Pays have doubled from $10 to $20 for doctors visits.


Teacher Share of Health Premium, 7%.


Seiler said the total premium for an individual with “SWSCHP” as it is known, this year is $7,293, of which a teacher pays $625  annually (8.6%) . For a two-person family, the premium is $15,388, the teacher share they pay is $1,075 annually (7%). The premium for a family Two Person, is $16,336, of which a teacher on the family plan pays $1,220 (7% of the cost).


Seiler told WPCNR, “That changed in July, 2007, a year and a half ago. What that meant on an individual basis  It went $15 to $20 a visit for a individual visit. The deductible stayed the same. It’s the CoPay for either your primary physician or your medical prescriptions, but also at the same time, was introduced a plan with MEDCO there, where people could buy 90 days supply of their regular medication at a much lower than what they were paying before. For some employees they actually were saving money.”


Seiler said he was a member of the SWSCP Board (with the state). He said he had heard nothing criticizing the increases that took place in mid-2007.


 Seiler recalled that when the SWSCHP increases took place, “Everyone understood it was an increase in the premium and an adjustment in the CoPay(s), you need a little bit of both to make it (the health plan) reasonable.”


A year and a half ago it went up 9% plus a change in the CoPay. This year, there were no change in benefits, coPays, or anything, then the overall increase was 8- 8-1/2% (in the premium). It was the first time in 12 years it was less than double digits.  Not as low as we’d like it to be, but that’s true of every health plan.”


 


The Last Contract: 3% Across Board


In the last contract, benefits were paid for by teachers for the first time. Assistant Superintendent of Schools Fred Seiler, speaking to WPCNR in June 2007, explained it this way:


In return for a one year 3% hike in wages across all salary levels, White Plains teachers agreed to pay about $200 more as their share of health insurance in 2007-2008. According to Assistant Superintendent for Business Fred Seiler,  the 3% wage increase approved by the White Plains Board of Education Monday evening, would cost the school district $1.8 Million in the next budget year beginning July 1. The teachers, he said, agreed to pay more of their share of their health insurance provided by the district which would have the teachers paying $150,000 more a year.


Seiler reports that Health insurance for a single employee would increase from $450 to  $635 a year; for two person plans, from $800 to $1,075; and, for family coverage the portion teachers pay would rise from $900 to $1,220.In return for a one year 3% hike in wages across all salary levels, White Plains teachers agreed to pay about $200 more as their share of health insurance in 2007-2008. According to Assistant Superintendent for Business Fred Seiler,  the 3% wage increase approved by the White Plains Board of Education Monday evening, would cost the school district $1.8 Million in the next budget year beginning July 1. The teachers, he said, agreed to pay more of their share of their health insurance provided by the district which would have the teachers paying $150,000 more a year.


Seiler reports that Health insurance for a single employee would increase from $450 to  $635 a year; for two person plans, from $800 to $1,075; and, for family coverage the portion teachers pay would rise from $900 to $1,220.

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Governor Gives a Bit of Bad News: $47 Billion Deficit Seen Next 4 Years

WPCNR ALBANY ROUNDS. From Governor Paterson’s Press Office. October 28, 2008: Governor David A. Paterson today announced that, as a result of unprecedented turmoil on Wall Street, the State now faces a current-year budget shortfall of $1.5 billion and a $12.5 billion deficit in 2009-10. Over the next four years, New York must confront a cumulative budget gap of $47 billion.

“New York is at the epicenter of an extraordinary financial crisis on Wall Street. We will have no choice but to take bold and aggressive action to reduce state spending,” Governor Paterson. “I have full confidence that my partners in the Legislature will work together with me at next month’s special session to take the actions that will be necessary to get our state’s fiscal house in order.”

The Division of the Budget (DOB) today released its Mid-year Update to the State Financial Plan. In that report, DOB forecasts that the State will have to close budget deficits of $1.5 billion in 2008-09, $12.5 billion in 2009-10, $15.8 billion in 2010-11, and $17.2 billion in 2011-12 – a cumulative total of $47 billion.


These deficits are nearly double the $26.2 billion cumulative budget gap ($6.4 billion in 2009-10, $9.3 billion in 2010-11, $10.5 billion in 2011-12) projected in DOB’s July 2008 First Quarter Update to the State Financial Plan. This increase is primarily attributable to the fact that the state will lose $19.2 billion in revenue over the next four years as a result of the recent turmoil on Wall Street and its long-term effects on the broader economy.

In 2009-10, General Fund revenues are projected to decline by 5.8 percent compared to 2008-09. But General Fund spending is projected to increase by 11.9 percent based on commitments in current law.

The State budget has grown from $61.9 billion in 1994-95 to $120.8 billion in 2008-09, an average annual increase of 4.9 percent, which is nearly double the average inflation rate of 2.7 percent over that period. While spending has been limited to the rate of inflation during the last two fiscal years, Governor Paterson believes that we must take significant action to address long-term, unsustainable growth in state spending.

Historical Perspective

While the State’s current deficits are the largest in absolute dollars in history, as a percentage of the General Fund budget, they are similar to those faced in 2003-04. In that year, the State closed an $11.2 billion budget gap, which represented 28.4 percent of the then $39.5 billion General Fund.

The State will close its 2008-09 shortfall in the current fiscal year. As such, Governor Paterson and the Legislature will have to address a $12.5 billion deficit in its 2009-10 Enacted Budget, which represents 22.3 percent of the $56.1 billion General Fund.

Economic Forecast

In just the last two months, the State, national, and global economies have endured a series of unprecedented financial shocks. These events include the largest bank failure in U.S. history (Washington Mutual); the largest bankruptcy filing in history (Lehman Brothers); the federal takeover of Fannie Mae, Freddie Mac, and AIG; a credit freeze that is impacting the ability of businesses, municipalities, and average Americans to borrow money; and over 40 percent declines across all major stock market indexes.

The impact on New York’s economy is expected to be severe:

    – Job Losses: Over 160,000 New Yorkers are projected to lose their jobs during this downturn, including 45,000 in the financial services industry.


    – Unemployment: Last month, New York’s unemployment rate reached 5.8 percent, its highest level in four years. It is expected to reach 6.5 percent next year, with declines projected in virtually every sector of the economy.


    – Income and Wage Declines: New York personal income and wages for 2009 are projected to decline by 1 percent and 2.1 percent respectively. This compares to personal income growth of 6.5 percent and wage growth of 8.6 percent in 2007.

The national economy is also facing significant difficulties:

    – Job Losses: 1.7 million Americans are projected to lose their jobs during the current downturn.


    – Real Gross Domestic Product will decline for three consecutive quarters. This has not happened since the recession of the 1970’s.


    – Consumer spending is projected to decline for three consecutive quarters. This has not happened since World War II.

Governor Paterson’s Response

On November 18, Governor Paterson will convene a special emergency economic session of the Legislature to close the entire 2008-09 shortfall and begin aggressively attacking the State’s substantial future deficits. Assembly Speaker Silver, Majority Leader Skelos, Minority Leader Smith and Minority Leader Tedisco have each agreed to put forward $2 billion in current-year savings proposals before the beginning of the session.

Governor Paterson will release his Executive Budget proposal for the 2009-10 fiscal year more than one month early on December 16, 2008. He has also asked the Legislature to pass an Enacted Budget prior to beginning of the fiscal year on April 1, 2009.

Additionally, Governor Paterson will be meeting with officials in Washington D.C. tomorrow to discuss the need for a second economic stimulus package that will include direct, immediate, fiscal relief for states.


Financial Plan Impact
























































2008-09

2009-10

2010-11

2011-12

Cumulative
First Quarter Gaps
$0

($6,355M)

($9,295M)

($10,545M)

($26,195M)
 Revenue
($1,664M)

($5,819M)

($5,794M)

($5,893M)

($19,170M)
 Spending
$26M

($569M)

($1,002M)

($1,171M)

($2,716M)
 Special  Session
$427M

$651M

$639M

$650M

$2,367M
 Misc
($264M)

($426M)

($300M)

($275M)

($1,265M)
Mid-year Gaps
($1,475M)

($12,518M)

($15,752M)

($17,234M)

($46,979M)


Revenue Revisions

As a result of the recent turmoil on Wall Street, tax receipts are projected to be $19.2 billion lower than previously anticipated over the next four years. Personal income tax collections represent the largest portion of this loss in revenue and are expected to decline by 3.8 percent in 2009-10 compared to the current fiscal year.





















































2008-09

2009-10

2010-11

2011-12

Cumulative
Total Revenue Loss Compared to July Update
($1,664M)

($5,819M)

($5,794M)

($5,893M)

($19,170M)


Personal Income Taxes
($1,167M)

($4,243M)

($4,425M)

($4,787M)

($14,622M)


Business Taxes
($404M)

($913M)

($452M)

($376M)

($2,145M)


Sales/Use Taxes
($101M)

($267M)

($380M)

($383M)

($1,131M)


Other
$8M

($396M)

($537M)

($347M)

($1,272M)


August Special Session

At an August special emergency economic session, Governor Paterson worked with the Legislature to enact $1 billion in savings over a two-year period. These measures included across-the-board savings in local assistance payments, new executive and legislative programs, and member items. Additionally, as part of this spending reduction plan, the Legislature enacted $501 million in Medicaid cost-containment initiatives.

Spending Revisions

DOB has revised its spending projections downward in 2008-09 by $26 million. This reflects lower than anticipated costs in various programs, primarily Medicaid and general state charges. These lower costs were partially offset by higher spending in other areas, including Mental Hygiene. Additionally, the State Police and the Department of Correctional Services (DOCS) were both partially exempted from their 10.35 percent agency savings targets to ensure that public safety is not compromised, which is reflected in the financial plan. State police will achieve $13.7 million of their original $61.1 million spending reduction target. DOCS will achieve $84.1 million of their original $249.0 million spending reduction target. A full progress report concerning agency spending reductions is available at the Division of the Budget’s website (
www.budget.state.ny.us).

DOB has also revised its spending projections higher by $568 million in the 2009-10 fiscal year. These changes primarily reflect higher General Fund education costs related to updated pupil demographic data from the State Education Department and lower than anticipated lottery revenues for School Aid. Rebasing nursing home reimbursement rates is also projected to drive higher than previously expected General Fund costs in future years.

Miscellaneous

Financial transactions expected to bring in $384 million in additional revenue, including the conversion of GHI/HIP to a for-profit company ($284 million), as well as the sale of certain State properties ($100 million), will likely not occur during the 2008-09 fiscal year because of adverse market conditions.

 

These developments were partially offset by an agreement to award a video lottery terminal franchise at Aqueduct to Delaware North for an upfront payment of $370 million, an amount that was $120 million above initial financial plan projections of $250 million.

Overall Spending

Overall 2008-09 All Funds spending is projected to total $120.8 billion, an increase of 4.1 percent, slightly lower than the 4.2 percent inflation rate projected in that fiscal year.

State Operating Funds spending is projected to total $80.3 billion in 2008-09, an increase of 4.3 percent. General Fund spending is projected to total $56.1 billion in 2008-09, an increase of 5.1 percent

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Spano Details Savings $13 Million OFF the Budget

WPCNR COUNTY CLARION-LEDGER. From Westchester County Department of  Communications. October 28, 2008: County Executive Andy Spano put in place directives this year to save taxpayers $13 million as a way to deal with reductions in state aid and reduced revenue from mortgage filing fees.


Departmental savings range from cutbacks in overtime and hiring to reductions in supplies and equipment and to restructuring of some programs. 


, County Executive Andy Spano put in place directives this year to save taxpayers $13 million as a way to deal with reductions in state aid and reduced revenue from mortgage filing fees.


Departmental savings range from cutbacks in overtime and hiring to reductions in supplies and equipment and to restructuring of some programs. 


These savings from department budgets are in addition to the savings accomplished by smaller measures that will have long-term effects, such as reducing by 10,000 the number of light bulbs and fixtures; changing the temperature of county office buildings; electronic billing to vendors; discontinuance of printing of pay checks or pay stubs; and decreased use of gasoline.


“Government must be as efficient as possible,” said Spano. “Nothing is too large or too small to be looked at. These are hard economic times for our taxpayers and we in government must do what we can to decrease our costs. This year, we already lost $6.6 million in state aid and have a $10 million loss of revenue from mortgage recording fees. So every department in the county government was told it had to cut its expenses.”


Spano said each department was given an amount to cut from their budgets, but the actual items to be cut were left up to the commissioners. Savings came from efficiencies made possible by the use of new technology;  program changes; and reductions in  office supplies and equipment, travel, printing and  postage. In addition, $4.5 million was saved by reducing overtime and by not filling vacant positions.


 


Beyond departmental savings, the county government has re-examined every expenditure and every piece of equipment to see if it was still needed or if there was a better way of accomplishing the same objective. For example, pages have been eliminated; cell phone plans have been changed and in some cases cell phones eliminated completely;  many printers have been eliminated to reduce maintenance costs; and thermostats set higher in the summer and lower in the winter to save on energy costs. (Attention is now focused on getting rid of fax machines.)


 The majority of the county’s budget is for programs that are required by the state for which the state only partially reimburses the county. The cuts made by the county were from the discretionary side of the county budget –  those items that are not state-mandated.


County property taxes account for about 15-20 percent of a property owner’s tax bill. To help local governments and school districts control costs of their portions of property taxes, the county government has taken additional steps to encourage shared services. For example, through the county’s Bureau of Purchasing and Supply, local governments can save money by joint public bidding. Through the county’s Department of Information and Technology, these districts can access various technology programs.


     “Our goal is to save taxpayer money wherever we can,” said Spano. “People don’t care who is taxing them – they just want the whole amount reduced.”


 


 

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Teachers Are at an Impasse in District Contract Negotiations

WPCNR SCHOOL DAYS. October 28, 2008: The President of the White Plains Teachers Association, Kerry Broderick told WPCNR this evening that talks with the school district on a new contract have reached an impasse over salary negotiations. She said a statement on the matter would be forthcoming. She said no job action was planned as the New York State Taylor Law prohibits any strike action. The district teachers have been without a contract since June 30. More details as they become available.


 

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