FAIR CONTRACT PROPOSAL
MSEA Negotiations Update
Last updated 9/14/20
MSBSD School Board provided a final proposal to MSEA on August 26, 2020. The Board's proposal focuses on a longer term sustainable salary increase and shared responsibility for future health insurance premiums. The proposal offers predictability in earnings for teachers in uncertain times when revenue for public education has stalled. To see the proposal details and other relevant information please review the below summary.
A closer look at the Board's Health Insurance Proposal
Health Insurance continues to be a cost driver. The substantial increases have been difficult for both employees and the District to absorb over time. The Board's proposal regarding health insurance is not about gaining additional control over health insurance, it support the exploration of alternatives which may benefit all parties. The Board's proposal is fair for all of the reasons listed below.
Its about competition NOT control
Read the Board's complete health insurance proposal to the left. The language isn't about taking control of the provider its about allowing for alternatives to be explored, presented and considered by both parties. We want competition, which saves everyone.
The arbitrator agrees...
The recent arbitration recommendation also included support for the Board's proposed language regarding the health insurance provider. You can read the arbitrator's statement below from the recommendation published July 27, 2020.
MSEA Pack Proposal 081820.pdfMSEA also agreed to the change.
In an earlier stage of bargaining the Association provided a proposal to the District's team which accepted the language they now refer to as "a significant change."
A copy of the Associations Package Proposal from August 18, 2020 is posted to the left.
CEA current language is similar.
The concept proposed with MSEA, of being able to propose alternatives to the current provider, is a concept already agreed to an in place in the Classified Employee Association negotiated agreement.
The language from the current CEA negotiated agreement is pictured to the right.
Cost continue to rise.
Health Insurance premiums continue to increase each year at a high rate, well above normal inflation. In FY 2020 Health insurance costs the District over $35.7 million dollars. This is the second largest expenditure area, costing more than all salaries paid to non-certificated staff. In addition, the total premium has increased almost 45% since 2016. This presents a challenge for both employees and the District and underscores the need for looking at alternatives.
Is PEHT the best deal?
In 2018 the State of Alaska commissioned a study on the viability of a state health care authority. One finding from that study was that the Public Education Health provided plans were of higher cost and lower value than other non-PEHT school district plan offerings in Alaska. The Board with its proposal is simply looking to explore alternatives in partnership with MSEA, not assume control or require a change if such a change doesn't benefit all parties.
The full presentation can be accessed here.
Fair and Affordable - Dr. Trani expands on the cost of the Board's proposal.
In Dr. Trani's recent editorial he describes the Board's recent contract proposal to MSBSD Teachers as fair for a variety of reasons. One reason he described it as being fair was because "the District can support the approximately $23 million three (3) year cost of the Board's offer without major layoffs." Hear Dr. Trani describe this in greater detail by watching the short presentation to the right. Click the image to start the video.
The full text of Dr. Trani's editorial can be found below.
Date: Sep 4, 2020
Click the above image to start the video
What does the Board's proposal include?
Predictability
A three year contract beginning in FY 2021 provides future predictability through FY 2023 during a turbulent and unstable financial period in Alaska.
Read the complete proposal below.
Salary Increase Each Year
The salary schedule increases by 1.75% in each year of the contract. Additionally, in recognition of last year's service, a $1,500 bonus will be paid to returning teachers who continue to be employed in FY 21.
See the proposed schedules listed below.
Shared Responsibility of Health Insurance Increases
The existing contract requires teachers to pay 100% of all health insurance increases over the $1,744 per member per month (pmpm) District cap. The District proposal increases the District's minimum contribution amount to $1,860 pmpm and reduces the financial obligation for teachers with both parties sharing the responsibility for future increases 50%/50%.
What does this mean for me?
First Year Teacher
Teachers with no experience hired in FY 20 will receive a $3,604 increase in FY 21. In addition, they will receive a $1,500 bonus payable in one lump sum.
Mid-Career Teacher
Teachers in the middle of the schedule will experience approximately a 6% increase in salary from FY 2020 to FY 2021 under the Board's proposal. In addition, teachers will also receive a $1,500 bonus payable in one lump sum.
Top Earning Teacher
The approximately 146 teachers at the end of the schedule at M+45/13 will receive $2,184 or 2.52% increase in FY 21. In addition, teachers will also receive a $1,500 bonus payable in one lump sum.
What does this mean for our community?
Board Package Proposal 082620.pdfTotal Proposal Cost
The Board's proposal will cost the school district approximately $23 million over the three year period.
MSBSD Superintendent Op Ed 20200826.pdfSuperintendent Dr. Randy Trani
Read Mat-Su Borough School District Superintendent's Editorial.
Other Information?
Board Package Proposal Aug 26.pdfMSBSD School Board Complete Proposal
August 26, 2020
MSEA Salary Schd FY 21-23.pdfFY 21 - FY 23 Proposed Salary Schedules
Letter to Teachers2200826.pdfLetter to Teachers from Dr. Trani
August 26, 2020