SCSD: Let's Not Be the "Greece" of School Systems
Let's face reality...here's the current situation facing the divide between the Strongsville City School Board and the Teacher's union (SEA):
FACT #1:
An estimated 85% of the SCS's annual operating budget goes toward teacher salaries and tax payer funded benefits (pension and health care premiums). Anyone who operates a business knows that if your personnel compensation costs are almost 90% (see 2014) of your entire budget, you will NEVER survive as a business without changing your compensation structure.
FACT #2:
SCS Teachers annually receive 10.2% of their yearly salary in form of tax payer funded pension contribution. This is 100% funded by tax dollars.
FACT #3:
SCS Teachers pay a MAXIMUM of 10% of their Gold Standard Heath Care premium. With a maximum payment of $150.00 for family and $75.00 for individual. Well below average private insurance health care premium.
FACT #4:
The SCSD's own press release states: "If the Strongsville City Schools continued down its current path, projected deficits are $1.1 million for 2014, $4.6 million for 2015 and $10.8 million for 2016."
FACT #5:
There will be NO NEW TAX REVENUES available to fund the SCSD. Hope, pray, scream all you want. There will be ZERO new additional tax dollars available. The citizens of Strongsville have spoken loud and clear that they do not wish for another dime of their tax dollars be contributed to a system that is blatantly unsustainable.
FACT #6:
Strongsville, OH is NOT Washington D.C. Translation: We cannot print money.
So....Here's the deal...we either change the current system, or we face forced massive austerity cuts (see Greece - they are just loving it over there!):
The only, and yes, I said ONLY, way to even begin talks toward a settlement is to be 100% honest and face reality. Enough with the emotional we deserve xyz, who started what, we gave this back then and we want this now arguments. Why? Because the literally have no meaning in this debate. All that we can do is look at the reality of what is in front of the school board and SEA right now (the above stated facts).
Being honest, there can be no deal struck between BOE and SEA that is of any worth if the issue of tax payer funded employee benefits is not the #1 issue on the table. It is literally devouring our school system's annual budget. If the BOE attempts to negotiate a deal where the structuring of payout of these benefits is not altered, then they are simply putting band aids on a gigantic wound and should be held accountable in their next election cycle.
So, knowing that zero tax dollars will be available to fund any demands made by the SEA on behalf of its members, I ask you the following question:
How do you stave off inevitable insolvency without eliminating 100% tax payer funded pensions and 90% tax payer funded health care premiums?
There literally is zero way insolvency can be avoided, at least beyond a year, without doing so. I'm sure you may be able to put it off for a year or so if you were to cut deeper into the students benefits such as lunches, busing, classroom materials, etc. But then the problem is not going away. It will be right back...and now it's 2x worse. So you'd be risking having to cut student specific benefits to get let teachers keep their current pension/healthcare benefit system and then deal with the same issue 1-2 years later (and now it will be even uglier than before)? Is that something that the SEA is willing to do in order to ensure their teachers are able to hold onto their 100% tax funded pension plans and 90% taxpayer funded health care premiums?
If I'm a parent (or human being for that matter), I would sure hope not.
The SEA needs a reality check. Times have changed. If unions wish to survive, they have to change as well. The current system is 100% unsustainable and there will be zero additional revenues coming in to support any additional expenditures or costs. Time to make due with what you have and that may mean making some tough decisions.
So enough with the emotional pleas of who deserves what, how hard everyone works, what was given up last year, etc. It literally doesn't matter. Get your head in the game and out of the sand.
Either deal with the reality that the current structure of tax payers funded SEA teacher's pensions and health care premiums must change in this settlement or start looking for property in fantasyland, because that's the only place where a system like this would still be viable.
If you disagree...please, enlighten us all on how you can leave the current benefits compensation package structure "as is" and keep this school system above water...knowing that you will be getting zero in additional revenue via tax dollars.
Think as long and hard as you want, but the only place left to cut is the students benefits (lunches, busing, classroom materials, etc.).
Try stuffing a note in your student's bookbag explaining that move to their parents.
-Myron
Terry
5:57 am on Tuesday, March 5, 2013
I would have to belive the teachers already know this. Maybe we could do more, I was thinking "CAR WASH"
Strongville Resident
11:06 am on Tuesday, March 5, 2013
the board could just give the teachers what they seek and just ask for another levy ....like this.....
http://www.cleveland.com/strongsville/index.ssf/2013/03/strongsville_schools_treasurer.html#incart_river_d
Strongville Resident
11:08 am on Tuesday, March 5, 2013
and again I will move out of this city if another levy appears this year !!!
The REAL Lyn Shady
9:41 pm on Wednesday, March 6, 2013
Thank goodness for that!!! Can I help you pack?
Sad Citizen
11:17 am on Tuesday, March 5, 2013
I have spoken to many teachers. They do not believe item 1 above to be a fact. They believe the previous board treasurer and the board 'cooked' the books to force this situation. They would point out that a district that is as broke as described would not have money for $260/hour lawyers, hotel room for replacement workers, private security to video tape them on strike etc. or inother words if the board took all the money it is spending to have them on strike and put it into the contract, there would have been no strike.
Finally, the teachers claim that at a recent board meeting the current treasurer said there was money in the budget for a 2% raise for the teachers.
I have no idea if any of the blog or teachers facts are true, I'm simply sharing what I've been told
tom m
11:26 am on Tuesday, March 5, 2013
sad you must be a fast talker to have talked with "many teachers": about a story written 3 hours ago
Tad Taderson
1:15 pm on Tuesday, March 5, 2013
"they cooked the books" to force this situation. When that is introduced to the debate, you know which side is winning.
You're right...there wouldn't have been a strike this year becaue the SEA would have gotten everything they wanted. What would your suggestion be for 2014 then, another year into the contract, when the City had expenses that were higher than revenue, even higher than currently projected. When you get to the bottom line, and the numbers are in red, that's a bad thing.
The Board is approving temporary expenses (which are lower than the current level of spending mind you) to fix a long term spending problem.
If your roof is leaking, you pay money to fix it now. You don’t wait for rot to set in, then it collapses, and then rebuild. Spend a dollar today to save 3 tomorrow.
Abe
1:21 pm on Tuesday, March 5, 2013
Why can other districts (Medina, Solon, Westlake)pay their teachers more and not be in this mess? Maybe the board, superintendent, and treasurer should be on merit pay. That seems to be everybodys solution for financial problems.
jabace
1:28 pm on Tuesday, March 5, 2013
Medina, Solon and Westlake just have dumb residents that don't know how much money these teachers are making.
lyn
1:33 pm on Tuesday, March 5, 2013
Remember when you look at salary figures, add about 10% to that for Strongsville's average salary. That is what the district pays on behalf of the teachers, for the teachers OWN contribution that they normally would pay - and those other district teachers do pay themselves. It was done in lieu of a raise many years ago. It also makes it look like they make about $7000 less on average than they really do.
Tad Taderson
1:42 pm on Tuesday, March 5, 2013
Lyn nailed it....
but, since you listed those 3 as examples, maybe because of merit reasons...all 3 districts are ranked higher than Strongsville.
Linda
12:10 pm on Wednesday, March 6, 2013
The Board, superintendent and treasurer could not buy lunch if they were paid by merit. What this whole state needs is the Legislature to enact a constitutional system of school funding. According the the State Supreme Court what is in place now is unconstitutional. Really makes you respect the rule of law when our lawmakers ignore this, doesn't it. Other states can do better because they have a county wide school system. In this one county we have 56 or quite near that number. So we have 56 boards, 56 superintendents, 56 people in charge of buses, 56 in charge of groundskeeping and so on. What we need to do is have 1 board, 1 superintendent, ect. There would be so much money left over without these people.
John Strong
1:33 pm on Tuesday, March 5, 2013
Myron great points..............................
Myron Shibley
2:11 pm on Tuesday, March 5, 2013
Thank you John
lyn
1:46 pm on Tuesday, March 5, 2013
Here's a solution.
The teachers get what they want in their contract.
Since there is no money available, and there will be no way the voters will ever approve any future operating levies because of this contract, this is where the funds come from:
- Cut art and music classes and all other noncore classes that are not required - however, this also means cutting many teachers because they are no longer need. But this will now save a significant amount of money for other teachers to take home.
- Busing - just like "pay-to-play", its now "pay-to-ride"
- If new books are needed, "pay-to-read"
- If any new computers or other technological equipment is need, "pay-to replace" or "pay-to acquire"
- And, if money is still short, then divide that up among all students, and each is charged a "pay-to-learn" premium.
Problem solved!
Teachers get what they want.
Even the teachers know and don't care that it has to come at the expense of the student.
But, problem solved.
And since the students and their parents are the vast majority of the ones supporting the teachers getting what they want - they can pay for it.
Abe
1:50 pm on Tuesday, March 5, 2013
So collectively, the residents in Strongsville are just smarter than those in other cities?, Jabace, thanks for clearing that up. Lyn, why are you holding that 10% over the teachers heads? The board willingly gave them that in lieu of a raise. Now the board realizes that it was stupid to do that and demands it back. And the teachers are the greedy one? Huh? Also, you didn't answer the question about why other communities can pay more and aren't in this financial mess. Instead of blaming the teacher, why not blame the board for not being better with our money
lyn
2:04 pm on Tuesday, March 5, 2013
Abe-
It is important to consider when you are comparing to other districts as it reflects what their true effective salary is. Since they don't have to pay this as other teachers do, you can't ignore this when making comparison. Otherwise you are comparing apples to oranges.
I said nothing more in my reply to you.
I didn't answer why they can pay more because most do not - compare yourself after you add this in.
If you want to cherry pick with the few in Ohio who do pay more, then go ahead. There are over 600 districts in Ohio. The fact that they are already one of the most highest paid should be enough - that is my opinion of more than fair. You may feel they deserve more. Period.
Tad Taderson
2:23 pm on Tuesday, March 5, 2013
That is an odd question, but it's easy to answer...they are more efficient with their top line by the time it becomes their bottom line. A whole lot goes into that equation and I suspect all 3 communities you referenced have a higher revenue stream. If their revenue is higher, and pay and expenses are equal, you made up the delta.
As Lyn rightfully pointed out, they might make more in salary, but combined with the pension, they may be very comparable.
Abe
2:44 pm on Tuesday, March 5, 2013
Are you that those other districts don't receive the pension benefits (I honestly don't know the answer). Even with the 10%, that would put them at or below other comparable districts. Why does Strongsville have such a bug deficit and other communities don't?
Tad Taderson
2:49 pm on Tuesday, March 5, 2013
I don’t know if we have a large “bug” deficit. I have been to Westlake before, and from my observations, we have about the same number of ants and bees.
James R
2:57 pm on Tuesday, March 5, 2013
Solon is also a better district than Strongsville. Let's compare apples to apples here. Sorry, Solon teachers appear to be worth 80K, the rankings don't lie.
Abe
2:58 pm on Tuesday, March 5, 2013
Tad, I apologize for the grammar, it was autocorrects fault. I didn't realize the patch comment section had such high standards. Either way, nice going on not answering the question of where's the outrage for the board mismanaging out money.
lyn
3:48 pm on Tuesday, March 5, 2013
Abe-
How do you know they have mismanaged money?
Did you analyze the financials of Strongsville and those others to see where they differ?
But, remember if and when you do, such things as the school buildings age in each district will also have an effect on spending.
Abe
6:40 pm on Tuesday, March 5, 2013
I am making an assumption (that's what everyone else seems to do around here). If comparable districts can pay teacher, why can't Strongsville. Maybe it is as Tad put it, maybe they just aren't efficient. Is that the boards fault or is it the teachers?
lyn
6:45 pm on Tuesday, March 5, 2013
Abe-
You can't assume that without looking at the financials to see what revenue is coming in and what costs each have. And, as I said - consider each districts building age.
You can't just assume all is equal.
James R
3:05 pm on Tuesday, March 5, 2013
Whether Strongsville mismanaged their money or not is irrelevant. The point is that you can't be given what isn't there! If you're worried about mismanagement, then go to the council meetings and tell them things like, "we don't need a big brick welcome to Strongsville sign on I-71". If your concern is truly about the deficit, why add to it by demanding that we further deficit spend by giving more to teachers.
Tad Taderson
3:06 pm on Tuesday, March 5, 2013
How do you not find that bug comment funny? It was a joke. Settle yourself.
Like I said initially, I don't know what they do between their top and bottom line. They must be operating with effiency because it doesn't appear to be an issue in their communities. If they have higher revenue, and equal expenses, there is no delta to make up. That's about as basic as I can make it.
You want to hold the Board to standards where they are balancing the budget? Fine by me. I think that is what they are trying to do.
lyn
3:40 pm on Tuesday, March 5, 2013
About that $15,000 we all heard the teachers wanted.
Well, I guess it was true!!!
This is based on how I understand the TEACHERS proposal - please correct me if I'm wrong.
TEACHERS want:
Let's say a teacher at 2011-12 is MA+30 - step 9 = $64,159
2012-13 step increase - step 10 = $68,758
Reimbursement for giving up 2011-12 frozen step increase - step 11 = $71,057
10.3% "pick up" related conversion (10.3% of $71,057) = $7,319
New total salary at 7-1-2013 = $78,376
2013-14 step increase - step 12 = $80,912
(3.235% this step & column increase)
I used a salary near the average Strongsville teacher salary as an example. I assume some will show a higher or lower result.
But in this example, as the contract covers 8-1-2012 to 6-30-2014, the salary went from $64,159 to $80,912.
$16,753 increase.
I know part is conversion and part is step increase - to step 12.
But, this is what their total actual salary was and would be. And this does NOT even consider any column changes just for getting college credits or another degree - that would bump it up even more.
(BTW, does that really mean someone who has been working only 12 years?)
lyn
4:34 pm on Tuesday, March 5, 2013
BTW-
that $16,753 is made up of-
$7319 STRS conversion
$9434 step increases over this 2 year period
$9,434 / $64,159 = 14.7% increase over 2 years
lyn
7:56 pm on Tuesday, March 5, 2013
And, as I understand it, for the SAME period, the following is the effect of the BOARDS proposal on that same teacher -
at 2011-12 , MA+30 ,step 9 = $64,159
2012-13 step increase - step 10 = $68,758
9.3% "pick up" related conversion (9.3% of $68,758) = $6394
New total salary at 7-1-2013 = $75,152
2013-14 no step increase
So, from the last contract to 6-30-2014, the salary went from $64,159 to $75,152.
$10,993 increase - made up of -
$6394 STRS conversion
$4599 step increase
$4599 / $64159 = 7.2 % increase over this 2 year period
Again, if I read the proposal wrong or calculated wrong - please say.
Unlike the teachers proposal, the Board's proposal does not go back to the period 2011-12 covered by the last contract and reimburse them for this period that had a step freeze.
Linda
12:30 pm on Wednesday, March 6, 2013
Gee Lyn with all those facts one might be led to believe you are a BOE plant. But you are just the average Strongsville resident. RIGHT???????
Sad Citizen
5:55 pm on Tuesday, March 5, 2013
Right Tom, no one started discussing this topic until your blog got posted. This has been a topic among teachers since July.
Linda
12:23 pm on Wednesday, March 6, 2013
I really don't know why anyone in their right mind would want to be a teacher, especially in Strongsville. After hearing what people really think of teachers it is on the very bottom of optimum careers. Disrespect from some of the kids and now from their parents. I think shoveling cow manure into the wind is more desirable. Once you are done for the day, its over. No manure to bring home and haul back the next day. No weekends spent checking the manure and no summers anticipating manure season again. These teachers have excellent education and would be appreciated in any other career endeavour but not in teaching. I know a teacher that put herself through school waitressing. When she got her job teaching she had to take a cut in pay. And her job is in one of the upscale higher paying districts. What a shame when we don't consider them worth more money than servers after all of their education. I hope my family moves out of OH. This state is a dead end state.
Myron Shibley
12:37 pm on Wednesday, March 6, 2013
Linda, I 100% agree..........with your second to last statement.
My motto is, why only live in one state when you could own properties in 5 others!