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Update on PREA Negotiations

Update on PREA Negotiations. July 22, 2014. Our common goals. Long-term predictability - for salary increases and budgetary increases Contain health care costs We all recognize the importance of our teachers to our children and to our community

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Update on PREA Negotiations

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  1. Update on PREA Negotiations July 22, 2014

  2. Our common goals • Long-term predictability - for salary increases and budgetary increases • Contain health care costs • We all recognize the importance of our teachers to our children and to our community • We all want to reach a fair settlement soon and respectfully

  3. Projections for 2015 – 2016:Constraints and considerations • Continuation of a 2% cap on the tax levy • Flat or reduced state aid • Rising health care costs • Rising special education, transportation and other nondiscretionary costs • Health benefit contributions collected under Chapter 78 will plateau • Rising enrollments at the high school through 2017-18

  4. Budget gaps will be harder to close in the future • Balancing 2014-2015 budget required closing a $1.6MM gap; managed without cuts to programs or teaching staff • Gap between projected revenues vs. expenses will continue to increase • 2014-2015 budget gap would have been greater without Tier 4 contributions • We are hitting a fiscal cliff!

  5. We value our teachers

  6. We value our teachers *30% of our teachers make over $90,000/yr; approx. 50 make over $100,000/yr

  7. Chapter 78 • Board position: based on counsel’s advice, employee healthcare contribution percentages NOT negotiable • NJEA position: contribution percentages should be negotiable • Reality: Even if Chapter 78 were repealed, PPS budget cannot be balanced giving an increase plus a rollback of employee contributions to their healthcare premiums

  8. Next steps • Impasse: A third-party mediator from PERC to assist in finding agreement • Board desires a mutually beneficial, fair, and affordable contract – working to reach that goal before the fall • Meeting with PREA Negotiating Team July 24 • We heard at our last Board meeting that movement on the guide is important to our teachers; we are preparing further details to our proposal that will allow that, within budget • Health care important to both sides – we are working on options where we can share the savings

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