School officials asking unions for pay cuts to save jobs

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David Robinson

From left, Kenneth Long, business manager, Daniel LaLonde, school board president, and Cosimo Tangorra Jr., superintendent, are shown during the budget presentation.

  

Yellow Pages

By David Robinson
Posted Apr 13, 2010 @ 10:42 AM
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Ilion school district administrators, like so many others across the state, hope to convince their unions to accept pay cuts to save the jobs of their co-workers.

The school board adopted a 2010-11 budget Monday that included laying off six teachers and two part-time employees.

The $25,901,000 budget increases spending $2,061,410, or almost 8.65 percent, from last year. The 2009-10 overall budget was $23,839,590.

Taxpayers would face a 3.9 percent tax increase under the budget. The tax rate of $20.85 per $1,000 of assessed value would increase 81 cents, and a home assessed at $100,000 would pay an estimated additional $58, after state STAR exemption, Long said.

Kenneth Long, district business manager, said more than $1.5 million of the spending increase is fully reimbursed by state aid for the EXCEL capital project and has no impact on the budget.

The actual operational increase is closer to $475,000, or a 1.99 percent increase, Long said, and the difference is a result of increases in “salaries, benefits and health insurance.”

Superintendent Cosimo Tangorra Jr. said in a phone interview it would take close to $200,000 in savings to reverse the layoffs.
While the district by April 15 has to officially notify teachers whose jobs are in danger, their positions could be reinstated over the summer if savings can be found, Tangorra said. Employees in danger of losing their jobs, who were picked based on seniority and subject demands, have been made aware of the situation, he added.

Both Tangorra and Long feel the most realistic option for reinstating the positions is to reduce the close to $10 million spent on salaries. The 2010-11 budget is already a “bare bones” spending plan, Tangorra said.

“We’re going to try to work with our labor unions to get some temporary wage concessions to get us through the next couple of tough years,” Tangorra said.

But the problem with the plan is that three of the district’s four bargaining units have agreements that set raises through the 2011-12 fiscal year, and making changes requires breaking a contract that is less than a year old. The administrator’s contract includes raises in 2009 through 2012 of 3.75 percent, 3.85 percent and 3.95 percent.
Civil Service Employee’s Association unit one, representing maintenance, custodial, office and nurse employees, agreed to 4 percent raises each of the three years.
The Ilion Teacher’s Association agreed to 3 percent raises for three years.
The CSEA unit two, representing teacher’s assistants and aides and food service staff, has a contract that expires June 30 of this year. The unit’s 2009-10 raise was 3.75 percent.  
Tangorra said the two CSEA and administrators’ unions account for a combined $2 million of the district’s overall salaries. Tentative negotiations with these groups are ongoing, and the administrators have already agreed to make concessions, he said, but the bulk of the savings would still have to come from the teacher’s union.
Wage concessions from the three smaller unions would save an estimated $20,000, and the remaining savings involve the 143 teachers making a combined $8 million, Tangorra said. For the wage concessions to work, all of the employees should have to “sacrifice to save these jobs,” he added.  
Martin Burrello, Ilion Teacher’s Association, said he has been involved in discussions related to possible savings with district administrators. 
But the issue of opening up the union contract, which was signed in September of 2009, to make wage concessions has involved “no formal negotiations” or “formal presentation,” Burrello said in a phone interview.
Tangorra said at the school board meeting the matter has been discussed but nothing has been presented in writing.
It may be difficult to make a deal even if a formal proposal is made, however. 
The teacher’s union already made health insurance concessions in the contract, agreeing to pay a higher premium for prescription drug costs, Burrello said. He was unable to provide premium costs or how much the district is saving.
Even though Burrello said he is willing to consider “any number of things,” opening up a signed contract seems an unlikely outcome.
In his 18 years as union president, Burrello, 49, and a social studies teacher, has not considered opening up contracts. “That’s why we settle contracts, so that they can plan,” he said. “They create the budgets and they know what’s going on.”
A recent trend among school districts toward allowing contract concessions, however, shows that some unions are willing to make that exception.
An ongoing survey has already found that 23 school districts have successfully negotiated concessions, according to Brian Butry, spokesman for the New York State School Boards Association.
Regional school districts that have responded include Rome in Oneida County and West Genesee in the city of Syracuse. West Genesee saved $800,000 when bargaining units agreed to cut raises for two years from 4.2 percent to 2 percent. Rome school officials have a tentative agreement that involves the teacher’s union returning a 2 percent raise to save $360,000.
“I think what we’re seeing is that the trend is growing; more school boards are willing to ask for concessions rather than seeing it as a last ditch effort,” Butry said. “It’s more of a relevant part of the budget process. Employees’ unions recognize that maybe taking a cut in your pay raise or deferring your pay raise is much more acceptable than layoffs or program cuts.”
Prior to recent announcements that school districts and unions have started agreeing to wage concessions, the School Boards Association, which has 680 school districts statewide as members, estimated the proposed $1.4 billion cut in state aid would result in close to 15,000 teacher layoffs.   
Ilion school officials have said their budget includes a more than $617,000 reduction in state aid from last year.
Tangorra said the current financial conditions outweigh the impacts on future contracts. “These are unprecedented times that require unprecedented measures.”


The 2010-11 school budget adopted Monday:
The $25,901,000 budget increases spending $2,061,410, or almost 8.65 percent, from last year.
The actual operational spending increase is closer to $475,000, or a 1.99 percent increase, after accounting for $1.5 million in building aid from the state for an EXCEL capital project.
Taxpayers would face a 3.9 percent tax increase
The tax rate per $1,000 of assessed value of $20.85 would increase 81 cents, and a home assessed at $100,000 would pay an estimated additional $58, after state STAR exemption

Ilion school district administrators, like so many others across the state, hope to convince their unions to accept pay cuts to save the jobs of their co-workers.

The school board adopted a 2010-11 budget Monday that included laying off six teachers and two part-time employees.

The $25,901,000 budget increases spending $2,061,410, or almost 8.65 percent, from last year. The 2009-10 overall budget was $23,839,590.

Taxpayers would face a 3.9 percent tax increase under the budget. The tax rate of $20.85 per $1,000 of assessed value would increase 81 cents, and a home assessed at $100,000 would pay an estimated additional $58, after state STAR exemption, Long said.

Kenneth Long, district business manager, said more than $1.5 million of the spending increase is fully reimbursed by state aid for the EXCEL capital project and has no impact on the budget.

The actual operational increase is closer to $475,000, or a 1.99 percent increase, Long said, and the difference is a result of increases in “salaries, benefits and health insurance.”

Superintendent Cosimo Tangorra Jr. said in a phone interview it would take close to $200,000 in savings to reverse the layoffs.
While the district by April 15 has to officially notify teachers whose jobs are in danger, their positions could be reinstated over the summer if savings can be found, Tangorra said. Employees in danger of losing their jobs, who were picked based on seniority and subject demands, have been made aware of the situation, he added.

Both Tangorra and Long feel the most realistic option for reinstating the positions is to reduce the close to $10 million spent on salaries. The 2010-11 budget is already a “bare bones” spending plan, Tangorra said.

“We’re going to try to work with our labor unions to get some temporary wage concessions to get us through the next couple of tough years,” Tangorra said.

But the problem with the plan is that three of the district’s four bargaining units have agreements that set raises through the 2011-12 fiscal year, and making changes requires breaking a contract that is less than a year old. The administrator’s contract includes raises in 2009 through 2012 of 3.75 percent, 3.85 percent and 3.95 percent.
Civil Service Employee’s Association unit one, representing maintenance, custodial, office and nurse employees, agreed to 4 percent raises each of the three years.
The Ilion Teacher’s Association agreed to 3 percent raises for three years.
The CSEA unit two, representing teacher’s assistants and aides and food service staff, has a contract that expires June 30 of this year. The unit’s 2009-10 raise was 3.75 percent.  
Tangorra said the two CSEA and administrators’ unions account for a combined $2 million of the district’s overall salaries. Tentative negotiations with these groups are ongoing, and the administrators have already agreed to make concessions, he said, but the bulk of the savings would still have to come from the teacher’s union.
Wage concessions from the three smaller unions would save an estimated $20,000, and the remaining savings involve the 143 teachers making a combined $8 million, Tangorra said. For the wage concessions to work, all of the employees should have to “sacrifice to save these jobs,” he added.  
Martin Burrello, Ilion Teacher’s Association, said he has been involved in discussions related to possible savings with district administrators. 
But the issue of opening up the union contract, which was signed in September of 2009, to make wage concessions has involved “no formal negotiations” or “formal presentation,” Burrello said in a phone interview.
Tangorra said at the school board meeting the matter has been discussed but nothing has been presented in writing.
It may be difficult to make a deal even if a formal proposal is made, however. 
The teacher’s union already made health insurance concessions in the contract, agreeing to pay a higher premium for prescription drug costs, Burrello said. He was unable to provide premium costs or how much the district is saving.
Even though Burrello said he is willing to consider “any number of things,” opening up a signed contract seems an unlikely outcome.
In his 18 years as union president, Burrello, 49, and a social studies teacher, has not considered opening up contracts. “That’s why we settle contracts, so that they can plan,” he said. “They create the budgets and they know what’s going on.”
A recent trend among school districts toward allowing contract concessions, however, shows that some unions are willing to make that exception.
An ongoing survey has already found that 23 school districts have successfully negotiated concessions, according to Brian Butry, spokesman for the New York State School Boards Association.
Regional school districts that have responded include Rome in Oneida County and West Genesee in the city of Syracuse. West Genesee saved $800,000 when bargaining units agreed to cut raises for two years from 4.2 percent to 2 percent. Rome school officials have a tentative agreement that involves the teacher’s union returning a 2 percent raise to save $360,000.
“I think what we’re seeing is that the trend is growing; more school boards are willing to ask for concessions rather than seeing it as a last ditch effort,” Butry said. “It’s more of a relevant part of the budget process. Employees’ unions recognize that maybe taking a cut in your pay raise or deferring your pay raise is much more acceptable than layoffs or program cuts.”
Prior to recent announcements that school districts and unions have started agreeing to wage concessions, the School Boards Association, which has 680 school districts statewide as members, estimated the proposed $1.4 billion cut in state aid would result in close to 15,000 teacher layoffs.   
Ilion school officials have said their budget includes a more than $617,000 reduction in state aid from last year.
Tangorra said the current financial conditions outweigh the impacts on future contracts. “These are unprecedented times that require unprecedented measures.”


The 2010-11 school budget adopted Monday:
The $25,901,000 budget increases spending $2,061,410, or almost 8.65 percent, from last year.
The actual operational spending increase is closer to $475,000, or a 1.99 percent increase, after accounting for $1.5 million in building aid from the state for an EXCEL capital project.
Taxpayers would face a 3.9 percent tax increase
The tax rate per $1,000 of assessed value of $20.85 would increase 81 cents, and a home assessed at $100,000 would pay an estimated additional $58, after state STAR exemption

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