[Music] All right. >> Good afternoon everybody. Thank you all for being here today. uh get we'll get started with uh this is session four of salary negoti uh contract negotiations with district and
CTA. Um I know in our last session we left off the the district and union weren't really too close in in our salary proposals. Um so and in this year's really has proven to be a more challenging year than any of the years that I've been doing this at least. Um
but I I would say that over in that time uh together we we've accomplished a lot and and you know our negotiations have gone very well the past four the previous four years uh that I've been handling this um on on this side. Uh, I
think we've worked together to really do some great things and and over those I just kind of want to take a step and and just acknowledge what we have done because I think it's important to set context as we look around the state and look at other offers and things like that and what other districts are doing. It's important to also think about what
we've done and in the last the the three prior years we've had $192 million in salary um increases and other changes that had a financial impact over that time. So that was 58 million in 23, 95
million in 24. That was a great year. Um and then 39 million in in in FY25, right? Um in addition, we just recently moved $30 million in in health care in money uh onetime funds into our health care fund so that we could stabilize
that fund. And really what it results in is is limiting the the increases to premiums that by the numbers would have had to have gone to a little bit the district, a little bit employees. So, um you know, the $30 million there brings us up to that's $222 million. Um and
then we have this year's this this year's offer that we've made and and this has been, you know, this is our our most challenging budget year we've had in as long as I can remember. This goes back it it might even be worse than 2010 or whatever it was when we had, you
know, another difficult time. But our our 3% package this year, which is a 3.3% for highly effective package, um cost roughly $30 million, right? So, when you look at all of that together, that's that's $252
million or a quarter billion dollars invested in teacher salaries, um additional benefits, health care, um and and other supplements uh that we've been able to do together. So, I know we we all, including myself, we all sometimes
take a look at, well, this district's doing that, this district's doing this, and this this is their offer this year. I think it's important to look at it as a whole over a larger period of time to see what we have been able to do and and because of with that Palm Beach County
really is one of the most competitive uh and highest paying school districts in the state of Florida and and that's happened over the you know past four years where we've we've really focused on that and done everything we can to to get there. Um this year, the last time
we talked, you know, we we said by count day we had we were down 5,500 students. Um since count day, uh we've we've realized we are down actually $445 more students. So our shortfall isn't $25
million anymore. It's really closer to $30 million. Um we've prioritized not laying off any any teachers. Um and and we're able to do that. We're very happy about that. That was very important to us to not lay off any of our staff. The worst thing we could do right now is is
to put somebody out without employment. We know that our our teachers and staff, a lot of them have students in our our schools and and you know, when when the worst thing you can do for a student is to say that their their parent doesn't have any income anymore. So, we did prioritize layoffs, avoiding layoffs and
and we're able to do that. And heading into next year, uh, we're we're making a lot of efforts to try to adjust our staffing formulas to to match what our enrollment is. So, we're we're hoping that by next year we have a little bit different situation. Um, you know, I
recognize that the cost of living is high. We talked about that last session and and that teachers should be paid more. We we don't disagree with that at all. Um, but we really have done the best we can with the the amount of money that we get from the state in funding.
Um, and also in in addition to our referendum money that we we get uh locally. Um, and and I think it's easy to suggest that the district do better, right? And I've I've gotten a lot of emails about it, believe me. Um, a lot. And um, you know, I I I take those
personally. like I if if I could give more, I I'd come out here and lay a different offer out there. I would. Um I do believe teachers deserve more than than they get paid. The state funds us uh you know, one of the worst in the nation. We know that. We we we both
agreed to that. Um and and our offer this year is five times what the state offered us or gave us in funding, right? So to five times what they they gave us. And you know, we we we really made an effort to, you know, not come out with
with something, you know, not not come out with something really too low. We we know that raises are important. And so getting to where we got was was actually more challenging than you probably realize. Um, and really unless the amount of funding changes from the the
DOE, it's going to be really hard to do more than than this with with, you know, uh, in in terms of salary. Um, and I know that there are some other deals out there that you may have seen uh, recently. We we see them, too. We we
look at them. We we look at, you know, not just this year, but we look at prior years as well. And I I you know, when I saw one of them, I was kind of surprised by it. And uh I'm not going to mention any district names. You guys have the same information out there. But I do recall that in my first year here doing
negotiations um a year where we had a three and a half% recurring increase and then the the onetime bonus on top of that, right? Um was one of the best deals in the state at that time. that district gave
less than 1% raise recurring and that's it. Less than 1%. And so that three and a half percent that we gave back then compounding compounding bigger raises on top of it, you know, is worth a whole lot more today than than a raise this year is for that district, right?
Because of the compounding effect. So other districts are possibly using referendum funds. We we've been giving referendum for what we in our eighth year I think on that. Right. We've been giving that when we had excess referendum funds. We brought those to
the table and we've given those out. Um that was the part of the $95 million deal that was some of that money was referendum money that we recognized had in excess. So we gave it um other districts who who might have a little bit better offer than ours. They they're
so their their referendum is included in their their um uh or or they haven't negotiated their healthcare yet. So, I recognize those offers and I wanted to come out and kind of just say that I I see those, but everybody every district's in a little bit different situation and and I think that's
important to consider that. Um, I think this year, uh, you know, my recommendation is that we we do look at this as to be one of those years where our salary offer is just going to be a little bit closer to what it used to be, right? We had many years when you look
at the 10 15 years going back of of 3% three and a half percent somewhere in between there right and and you know we we I think recently we got used to we had five seven uh three and a half three and a half five seven
uh four maybe last year we've had some better raises right we had bonuses on top of that with the funds which is really nice um this year this year just isn't one of those years for us. Um, and and really I think we have to focus on
saying that, yeah, all right, this isn't one of those years where we have one of those those raises like we did the past few years, but we also have to focus on how we get our student enrollment back up, right? Because that's where when their student enrollment comes back, so do our raises, our ability to give
better raises. That's really where the money went. You know, when we're looking right now at a $30 million shortfall for based on enrollment, $30 million for us is three three more percent on top of what we'd have right now. And I think we would have walked away, you know, session in our first session probably um
if we had three more percent to go onto this. Um I think it's important for all of us to recognize that, you know, and and and share just how our our schools are led by the, you know, by highly qualified, high performing teachers. our
our students outperform our competitors. Um our our schools offer programs and in instruction, you know, better than than our our competitors as well. And I think that if if parents heard that more, they would think twice before leaving our schools. And so I really do think it's
important for all of us to think about how what we can do to get our enrollment back because really looking at this long term, that's that's our way to get better raises. And the district wants better raises for our teachers. We do. Um but you know unless the enrollment gets back up, unless we get that the
state to start giving us better funding for it, it's going to be really hard to do that. Um our our our hope is that we would be able to reach an agreement um you know through through negotiations and and to avoid impass
um if if we were able to reach an agreement you know very soon and be able to ratify by December 4th those uh you'd see the the new pay rates you'd see the the lump sum in the December
paycheck and then a retro payment in in January. So, we we know the importance of getting pay into our teachers hands. Uh and and we will do everything we can to prioritize that once we reach an agreement and getting that out there. Um and we do recognize that, you know, when
when we're this when we're we're both where we're at right now, um impass is always something that that is is an option, right? When when you can't reach an agreement. Um, I just can't imagine though that at the end of Impass, uh, Impass takes a whole lot longer. It
would be carrying on with this for months. Um, I would I wouldn't imagine anything really before spring break at the earliest, uh, to go through all those processes. You would think it goes faster, but it really just doesn't in in some of the experiences we've had. Um, but at the end of the line, I I highly
doubt our our financial position is going to be so much different than it is right now that we'd be able to go any anywhere else. Um, so, you know, that being said, I I really do hope that we're able to reach an agreement. Um, so
if the union does have some something else to offer, uh, we're we're here to listen to that, um, and and go from there. >> Thank you very much, Mr. Kubri. Um, I'm I would like to respond to some of
the things that you said and we are here today to negotiate because we still believe and as I've said repeatedly in these in these meetings, there is a spot between where both sides are where we can reach an agreement. Um, one that I believe will be ratified um, extraordinarily high within the
bargaining unit. I do want to speak to a couple of things that you've said. you isolated the four years uh or the the last three years and then the insurance thing for part of what you've spoken of. Um and when I get to my a presentation here shortly, I'm going to go ahead and
address some of that as a part of that presentation. Um, I do want to talk a little bit about the remark that the state funding for teacher raises was five time was uh was
essentially oneif of what the district is offering is five times what the state put out there. I think to speak only of the state's meager, and I'm being really nice, I think, when I say meager, $6 million for Palm Beach County.
Um, which means it's been equally meager for 66 other counties. I think it's very dangerous for us to sit here and characterize our efforts as good because the state did so poorly because I think it's an awful low bar to work from. I
understand the legitimacy of trying to do that, but we also know that no raise is ever funded fully by the state's teacher salary increase allocation. That was originally conceived as a political
stunt to make sure or to put out there that the state is doing so much for teacher salaries when in point of fact everybody at this table understands that the numbers put out there except for a particular year or two have in fact not
even done what they said it would do. Rather, it becomes a masquerade where they take what they put one year and then restate that amount with new money the next year and pile it on top. And every one of us here understands that that's not the way salary increases
work. You fund a salary increase as a recurring raise, that money is in place then. And if you claim it a second time as a raise, that's disingenuous at best, fraudulent at worst. Um and so that's our position with respect to how the
state funds these um additional in addition as a part of what I've got to present today um I think we'll also see that through attrition costs in any given year that funds if we're talking about a raise of 4% or
less we're talking about attrition cost savings in the county funding very near half and in some cases more than half of what was needed to get that number in place and it's those extraordinarily high numbers that actually do then write on large increases in state funding. But
I also believe as I said in the board meeting last week, I also think I think it's a bad path to be walking down where every year we're blaming the state for the money we don't have. And I'll be making this part of the
presentation as well when quite honestly I think I'm going to be able to demonstrate we might not be spending all of the money that is being given to us for that express purpose. Um a little bit more on that to come. Um I think teachers number one task in
getting enrollment up is to continue to do what they've done and that is to make this an A-rated district. a child, any child, regardless of race, creed, color, national origin, religion, uh they walk into the room, they're received openly by that teacher. They are taught to the
best of that teacher's ability to meet the needs of that individual student to help them develop into a lifelong learner who is able to become a a productive and responsible member of society, perpetuating that process going forward. Um that is our number one job
and the statistics on student performance u are replete with evidence that the most impactful aspect of a child's education is a highly effective teacher in a classroom in front of them each and every day of the school year.
So I submit to you that with the record of this district teachers have done that every single year and they do it over and over. They do it in rich years, they do it in poor years. But we are objectively moving into a
culture of worker that if they don't feel that they're getting what they want or need, whether it be in the work environment or salary or benefits, they will simply say, "I'm out." And they will go somewhere else to do what it is they need. that increases the costs on
the district to try to bring a new crop of teachers up to speed with what they need in order to meet the myriad challenges that teachers face in a classroom. And so that becomes a cost factor as well. One that we never really can quantify here too terribly much or
we don't because we're focusing more on those aspects of the contract only. Um, I appreciate the note uh the note that our students outperform other districts and I think we know why. Uh, and I've already mentioned that because of the work that teachers are doing. The
district has already spoken well of the notion that we have received the um the high academic performing district designation. Um, when we walked in here for this meeting today, up on the screen was the A+ rating uh moniker that is out
there. Um, as we continue to promote the brand of Palm Beach County Schools as your best choice for your students in Palm Beach County, um, which we agree with, it is their best choice. We want to keep it that best choice. And we want everybody who has been making that
difference the last, I would say, two to 22 years and even more in some cases to continue to do that work. Um, I believe too that we can reach an agreement, but I do think it's going to take movement on both sides. I don't think it's going to take a situation where we walk in
here and don't have any movement at all uh on either side. Um I'm prepared for that, but I was expecting given that at the last session uh the 3.3 for highly effectives that you talk about I believe that the the blended number is more like
a three. Is that about right? >> Blended. >> Blended is 3%. >> Okay. So, and and that's not to minimize the 3.3. Believe me when I say that. I understand that. It is to neutralize the argument so that neither one of us can claim. I can't claim, well, it's really low because I'm talking about the
effective teachers and you're claiming it's really high because it's highly effective. You know, I I don't want to get into that exchange. Uh the neutral number probably serves us in a neutral way and minimizes some of those arguments. But when I think in terms of of where we are, that three I think was
one that you put out on the table. I believe I responded at the last meeting that we would come from six down to five. And so I was kind of expecting and hoping that there might be some additional information from the district today on where they might they might be willing to go uh before I make a presentation about where we might be
willing to go. >> I I do not have a counter proposal. I've in the last session I I shared it was my best and final and and that's that's what I have. So I do not we we did go to our board twice before this. So I know
that's what you asked. Um, we have we saw our board twice before, you know, opening up negotiations uh or getting into salary proposals and um so I I don't have a counter proposal to your to yours.
That's disappointing to say the least because we asked for the additional date to seek that movement. Um the information I have to present doesn't really change. What might change is the discussion that we
would have before I would actually make any additional uh counter today myself. So I will present the information that I have at this time. Um just the the opening slide for today's presentation.
The first slide is the need for better teacher pay in Palm Beach County. Um and it is tied comp uh I I don't think that the discussion on the need for teacher pay starts and ends with rent but it is such it is such an
eyeopening and what I think um very revealing point that it's one that we need to take a good strong look at in Palm Beach County. A one-bedroom one bath apartment has approximately a $2,200 a month price tag. Now, the
information that I achieved from my research indicated a range of about 2100 to 2,300. So, I just camped in the middle. Um, that rent rate means 44% of a $60,000 a year salary is needed to
pray to do uh just the the cost of rent, rent alone, 44%. The Department of Housing and Urban Development says that's a high cost burden. Brackets it from 30% recommendation is 30%. 30 to 40 is considered a costly burden. Um 40 to
50 is a high cost burden. 50 is unsustainable. 50 and above is unsustainable. Um 60% of the teachers in Palm Beach County make $60,000 a year or less. I'm facts that are very revealing about what the situation is. A firstear
teacher at $53,000 currently would have to spend right at 50% of their earnings for rent. And as stated already, that is not sustainable. So, the need almost does start and end with rent. But there are food costs,
there are utilities, there are insurance. Um, and insurance for younger adults is more costly than insurance for older adults. And it's also more costly if you happen to be single rather than married. And these are factors that impact the
youngest of our teachers that we need to continue to recruit. Um I think I heard we probably hired between 11 and 1300 new teachers this year. Is that pretty close? >> Little lower than that. Maybe more like a thousand. >> Close to
>> close to close to a thousand. So that's about 7% of the bargaining unit uh in in space of turnover. Then in an effort to keep those teachers, they need to see a future in what they're doing. They don't need to be having the conversations at Teacher Fest that I hear of, which are,
"Do you need a roommate? What's your side gig to help pay bills?" These are the conversations that I hear about or that I'm involved in. And that needless to say that drives me in what I'm talking about here. So the need for better teacher pay I think is a given.
And as I said before, for the teacher in the classroom who is paying those bills, they're not really identifying with the argument that the state is always at fault on this completely. And and they
and they speak to that. Um the history of our raises. So, you talked about what we've been able to do. And I think I've actually cataloged an awful lot of that right here. The three years that you were talking about, I'm not going to be able to point here. The three years that you talked about, if you look at the 23,
24, and 25, those are the numbers you were talking about, uh, with the 50 million, the the the 95 million, and then the, uh, other one, the whatever that was, uh, for 2025. I'm not looking at my notes that uh, what you had said.
I went all the way back to 2015 because these are e numbers easily pulled off of the board website for the board approved raises by votes of them in meetings where they ratified an agreement before it before or after it was ratified by the T bargaining unit. And over the
course of those 11 years, we have 38.45% in raises. But if you look over on the far right side in the purple block, uh you have the CPI sum for those same years at 40.22. Now, why do I have that blue number up there at 46.7? I didn't use it because that is the raw
percentage of the increase based solely on the very first year. I figured there were two ways to do this. Look at where we are today, compare it with one thing 11 years ago, or look at where we are each year and do those sums. And I think usually uh we've established we're
talking about the sum of the of the increases. So, that's the reason I've represented it as sums over on the left side. And the CPI column is the sum of the consumer price index for Southeast Florida, specifically Miami Dade,
Broward, and Palm Beach County for those years. And um probably at the beginning of the year, but nonetheless, or at some point in the year, except with 2025, it is at the point where we are this year. So, we're already 1 and 3/4 points
behind the cost of living increases over the same period of time. And you'll see all of that loss was revealed or shall we say accomplished after 2021 because in that uh column between total variation and CPI, you'll see that it
says 20.4 versus 19.3. That was the last time teacher raise composite teacher raise was ahead of inflation for this period of time. Beginning the next year, we fell below the CPI and have been below it ever since. And that's the period of time after CO and the return
from CO. And we've all seen that costs went up very astronomically there for a period of time afterwards. Now, there's another column up here that's a little revealing as well. And during that same period of time, all respect to the uh to the
school police and the work that they do that is necessary to provide that extra layer of support for teachers and students so that we can ensure safety. Um all respect to them. They've gotten 45% in raises over the same period of time. Board approved as published on the
website. That leaves teachers 6 and a half% behind. And yet the statistics are clear about the impact teachers have in the classroom on moving student achievement. That's at the core of the mission of the district to educate, to affirm, and
inspire. Again, protect. Absolutely. If we're going to put a fourth one up there, we better put protect up there. But I think every one of us who works in the district sees that need to protect our students. And so, we're not minimizing that. But if that's important, I believe that teachers need
to have some additional similar importance. And so there is this concern as well that our our raises for base salary have flag behind the school police. And then the the one column there CTA to PBA variation that is a year-by-year variation. And then the
final column total variation is the aggregate of that. And you might notice the uh yellow color is neutral, the red is in the negative towards teachers, and the green is in the positive towards school uh towards teachers. Um
and if you need if you have questions later on about these, we can come back to the slides. But this looking at this, we're we're stuck with the notion that in this case, the district can do better. And that's what we're asking for.
district budget history. Um, probably not as compelling, but certainly a factor in this. And I couldn't go back as far as 2015, but I think this probably is still fine. From 2016 forward, the sum of the increases, much as the sum of the increases on
teacher salary, is 65.4%. Now, I get I get that that's state funding, but it does beg the question, if state funding is approaching twice what was given to teachers, where where's that money going? And
could some of that money have gone to teachers in the same time frame? That would leave us today looking at a a two and a half or a 3% total deal and saying, "Yeah, we understand." Because today, we're not here saying that we have these additional concerns. Uh these
numbers, just for reference, were taken from district summary budgets as published at the beginning of each of these uh fiscal years. Um again, straight off of the district information. >> Can I ask a question? >> Sure. >> And you're just is this the increase
there? Is that just citing how much our budget increased >> from the previous year? >> So So wouldn't it be is if our enrollment increased, we would expect our budget to increase with it? that might enrollment might be part of that >> in all of those years we had in 2016,400
kids in 2017 2750 in 2018 1300 kids I mean we we had increases in enrollment that changes your budget >> under understood I the question is how much >> and at what cost >> which is why well Tim that's why I said
I get that this may not be the best representation but I do think it's important because even as the budget goes up, people wonder, it's going up. Where's the piece that probably should be coming to me for the work that I've been doing?
>> A lot of other things go up, too. Retirement has gone up over those years. Um, our our general operating costs have gone up significantly. Uh, fuel went up in those years. There's a lot of other things that go into why >> every teacher sees an increase in their
food bill. I >> I agree. I'm not saying it didn't go up for them, but it went up for us, too. So, where is the money going? Well, it does go there, you know. >> So, then so then a bigger discussion to break this down might be fruitful at some point.
And my question is, my question is with this going on, what is the message that teachers are going to want to receive or need to receive in order to think um there's really just not enough. We can't
do this. But but uh I do want to move on to the next one because again I I'll admit of the of the slides this one probably doesn't serve the best but it does serve a point that produces the next bit of information. >> I just before we go on though I just got to say you know the thought that we're
we're withholding money and and hiding it somewhere so that we can't give it to teachers. I that's just offensive based on the number of years where we've been very transparent with you. We've we've sat with you. we've provided any documents you wanted on and Heather would, you know, gladly sit with you and
and work through any bit of the budget that you might have questions on. Uh I just think it's I I think it's I don't know, just unexpected to think that we're we're hiding money there there, you know, or or the thought that, you know, oh, the budget got bigger, so we
must have more money. The budget adjusts based on how many kids you have. That's how we're budgeted. So, and we all know that. And so if the budget got bigger because we had more kids, well, the budget got bigger and we spent it on that and and it comes with more staffing, more transportation costs,
more food costs, more whatever it might be. There's that's where the money is going. >> Sure. >> Respectful and we'd be happy anytime anytime to sit down with you. I'll have a one of our coffee chat management meetings and Heather will be there. She'll go through any of this
information with you. But I I I I'm not going to pretend to be a CFO and and think that I know what maybe she's doing better. This I I couldn't imagine to balance what what she balances or what Mr. Burke did before that. It's it's an
incredible job to be able to do that. So I I I just be, you know, I'd like us to be assume that we might not know have the whole picture in front of us just by looking at some numbers. And and I think it's just a better approach is to maybe
sit with her and talk through these things and find out just where is that money going just what happened in these years because there's so many different things that happened in any given year where it's like oh gosh there was this huge increase in in this that year. So you know I just think that you know I'm not I'm not saying that you can't go
through your your presentation to make your points. That's that's fine. I just think that Heather's been very, you know, transparent and and willing to to meet with you at any time to talk through these things. >> Respectfully, I never used the phrase hiding money. >> I do not intend to say that. Okay?
>> I never have. I I need Tim, I was patient, >> okay? >> I have never said that. I'm telling you that when when others look at this, they ask questions. I have to provide answers. I can give them the same answers, but what they're telling me is
my electricity went up, my fuel costs went up, my homeowner's insurance went up, my rent went up, my food, medical costs that I have to bear beyond the insurance. None of that is different for a teacher than it is for the district.
And the contention that I'm making is if the district is moving in a direction as they should to see to it that their operating costs are covered, why is a teacher's need to develop and pursue and cover their personal operating costs not
at the forefront of what's going on? And I say that because I have yet to hear at a negotiation session that teacher salary increases are just as important as the fuel bill for the buses or the
light bill for the schools. What I hear in negotiations, not always at this table, are phrases like because the budget grows doesn't mean we have money left over for teacher or for salaries.
When I hear that, it sounds to me as a as an advocate from my bargaining unit that what was just said is the salary is going to be funded out of the leftovers and yet it is the staff that literally is responsible for the mission of the
district. So that's what I'm drawing into question here, not whether money is being hidden. I'm talking about priorities, something I've done for two and a half years as president of the CTA. And that's what I want to continue to talk about as I go into talk the
remainder part of the remaining of the presentation. >> Okay. We we've expressed our priorities too over the years and that has been teacher compensation. So, you know, I I I don't need to we don't need to sit here and and talk about it back and forth, but I think right now we're just going to have to agree to disagree.
>> The uh the next uh piece here is the district's fund balance history. Um, in 2016 it was 127 million. Uh, the year before that was 123. Uh, just didn't include it because this lined up with some of the other financial information
I had from the district. In 19 in 2016, it was a 7.4% financial condition ratio. The $127 million was 7.4% of the total general fund. Over the years, that has grown. It made a big jump in 2021. That
was the ESRE funds. And we recall that year specifically because it was said, "We're going to probably have to spend that money down because it's one-time funds. It's not there. It'll end up be disappearing over time." Um, that was
14.21% in 2021. We sit today at 14.21% with a few fluctuations in between within 7/10en of a point higher. Um, respectfully, I agree a lot of that money in that
budget growth went towards operating expenses and a good chunk of it went to salaries, but a good chunk of it has gone into the fund balance. This is money that was allocated by the state to educate children and some of that could have been used.
Now, if the contention is, well, we needed that for, you know, when we have a rainy day or a a a more dire circumstance, I submit to you this that day is here, and that's why we have asked for what we've asked for. But yet, we're willing to find yet another point that is there
in the middle. And and I think the progression of this is clear. It's also very very truthful. There is nothing here that is not borne out in district documents. And yeah, except for uh the uh the last increase coming into this
year is the smallest, the second smallest it's been in the entire run. That makes a little sense with what Tallahassee is doing. But now we may be at a point where some of that might need to be tapped to make a difference for employees who have continually made a
difference for the district. Um and that's why we make the again make the statement we still believe while being prepared to negotiate we still believe the district can do better than where it is today in in the offer. Um real dollars the fund balance is
three and a half times what it was in 2016. Um I think the representation of the percent of the fund balance is probably better as a statistical measure of uh the financial condition of the district. Uh we won't talk too much about that other number. Um but it is a
half a billion dollars. It's a growth It's a growth of over right at a third of a million dollars when as the district has said they put a quarter of a million dollars into uh different salary packages over four years and uh
inclusive of the uh of the health care contribution from last year's negotiation. Um and the LA and and by the way I see you making some notes. If you need this, we can email the presentation so you have it. >> Sure.
>> Um the last in looking for where money might be might have funded any kind of a proposal. Um I put up here the what I've been able to calculate is some attrition savings. I'm going to talk a little bit about uh where I got these numbers. U I'll start with the 414 2025. We have a
regular data feed from the district on T members of the T bargaining unit. the that date in particular is the salary indicated in the column of $811.8 million is the sa the sum total of all of those reported bargaining positions.
The benefits was calculated at the then 25.65% rate. The total is a billion20 million for that particular point in time. on uh the 13th of this month a similar data
feed showed 994 million but it did show because of 125 fewer FTE. So there is something a skew there. We can't really make a pure a pure comparison. The third line is the comparison of what it would look like if the numbers in line three
were calculated with the additional 125 FTE indicating a $15.6 6 million attrition savings. The state provided 6 million,6.1 million. So we're looking at $21.2 million as a baseline.
And so to get to a 3% deal is $8 million. And so I'm kind of forced to ask if the bargaining unit and the state's TSIA money makes up 20 million of the 30 21 to 22 million of the 30 million we're
talking about for the district's current offer. That's only $10 million that's been put in because it seems reasonable to me, I think it seems reasonable to every member of this team that what was allocated the year before would come
back into play. And I can recall some previous negotiations before um I was in this particular seat where we were able to calculate 1.6 to 1.8% of a 3 and a.5% raise was in fact
covered by attrition savings and if it helps in any discussion between time uh when we might be coming out of caucus before resuming I can share with you the sources on this on these numbers. Yeah, I I think well I just have a
comment on that uh on this this slide where we talk about 125 fewer FTE um that's because we have fewer students um and with that we have less revenue and and you know so and we but we also have
a lower vacancy rate than we did last year. our our vacancy rate is it's it's well for for actually hiring it's right around 1% which is our lowest I I've seen since 2012. Um but our our
fully budgeted one so like Heather and I have different ones, right? Heather uses one where it's just budget and and fill positions and and so on hers it's close she budgets budgeted budgets a 2% vacancy rate. uh were her rate the last
time that we had discussed it was somewhere between somewhere around 2 and a.5%. So you know I'm not sure I I'm not I'm just not sure I understand this slide like you know assuming that there's because there'sund 125 fewer teachers
that's because we have we're down now almost 6,000 students so we don't need as many. >> That's that's true. That's the reason for the third line. >> But that money's gone. That's not like we still have it. >> I'm I'm using it as a representation,
Tim, to show what was saved by the teachers who left at the end of the year and then newer ones brought back in. >> But we filled those positions. >> The the money the difference, Tim, is actual expenditures. What what I'm
representing up here with those salary col that salary column is current actual annualized expenditures for those exact positions based on a district spreadsheet report to CTA that we have every two weeks. >> Okay,
>> it's not it's not a calculation. The top two are the exact reported ones. The the third line is my homage to the district trying to come up with a number that would work for a comparison. I could have done that by taking line two and
reduced it by 125 FTE. I would still have the same $15 million. I promise you. And if that's the comparison you would like to see, I'll calculate it. But it's the the point is when when we
look at where money can be used to come into that that we believe was actually part of that and could be used to raise every teacher, every ship if you will up by raising the tide. Then we believe that these were the sources of the funding, meaning that there could be
additional funds provided to go a tad bit further that might make the difference in getting the deal. That's again the reason for the line on each one of these slides. We believe the district can do better. >> Yeah. I I just disagree. Um you know, I
and and I don't have all the background um that that Heather does, and I'm sorry she's not here to chime in. It would be a whole lot clearer than than what I could do. Um but, you know, I've sat through a decent number of of meetings with her talking about budget and just
how it is. So, we I mean, we're we're talking I think we've made it clear it was it was 25 a $25 million shortfall. Um the funding that was lost was actually like $40 million. Uh we gained
20 million of it back by making uh by eliminating positions and shifting staff around. Um but we were left with still a $25 million shortfall that you know since that sharing that information has has grown um with the additional you
know realized loss of of students. U so I'm I'm I just don't I don't see that the same way you do. We believe that we believe that the growth of the district's fund balance uh in the hands
or that concept in the hands of a teacher is going to be their savings account. We believe that the growth in that savings is a source to take care of some of this in a year that by objective measures both sides agree the state did
not do its job. But that doesn't mean because I can I have to believe that if it became necessary for the district in order to fuel the buses and run them and in order to provide textbooks and computers and building maintenance is
capital funds uh provide textbooks and computers for students and other necessary uh infrastructure for the education of students. If it was necessary to use that savings account to fund that, they would do it. But we don't see that being an effort where the
teachers have the same experience. I I have to reiterate what I said um for the district to do everything that it can to meet its obligations on its fixed costs but not do the same where the teachers are concerned or any employee for that
matter so that they can meet their fixed costs of living. It is wrong. it's inequitable and it's of questionable moral value that that would be the focus rather than the individuals who are chiefly responsible for the success of
the district. And in my opinion, the most marketable fact about who we are and what we do when we're attempting to retain and or to to acquire or reacquire retain students and their families as
constituents of Palm Beach County Public Schools. We do better than so many other districts and it is a champion job that we do. The A- rating speaks to it. The high performing district speaks to it. The 44 schools of excellence speaks to it.
And we are simply asking that a salary increase that teachers have earned be given to them because we do understand with the state the difficulties with trying to really pay teachers in Florida what they're worth. at 50th in the
country. It is no secret that that there is not there are not friends in funding public education sufficient to do the job. We agree with that wholeheartedly. But we are at this point having to question whether or not there are the resources that to do somewhat better
than what we see right here today. We believe that there are. We believe that we have shown uh the need and we believe that we have shown where that might be done. And that's why we're asking that it be done. Um we would have to uh we will we will need to talk a little bit
more about whether to come back and negotiate against ourselves given that uh we made the last movement in the uh in the negotiations at the last session. >> Uh okay. Um so in terms of the fund balance, you know, I I I know you say
you refer to it maybe as a savings account or something like that. We we've been very clear though over the years we're you know that's how we get where we put together the lump sum that's out of the fund balance right um we're not giving recurring increases out of
one-time money. Um it you could some districts might think oh that's a good idea this year they're if their enrollment doesn't increase next year they're going to be looking at no raises their raises next year will vanish that you'll see that fund balance go down real fast when you start taking action
like that. So, we've we've been clear we're just not going to do it. We did use our fund balance to get us up to a point where we could say that, hey, our we we at least want, you know, our our teachers going home with a 3% more money than they had last year. And that's what
we we tried to do there. Um, in terms of, you know, being morally wrong, I mean, come on. I I that that's a little too far, I think, uh, you know, or suggesting that that our offer is immoral. it. We we we tried to put together a very good offer for you guys
this year given a very difficult year. It's this is 6,000 kids is you know a lot that's that's a a year that none of us have really seen. The last time we saw anything like it was co but they had esester dollars and and made everything right and and nobody had to worry about
it really the same. This year we don't have that. So, um I think on this, you know, some of the things, you know, we could agree to you uh with you on some u some of the other things we're just not going to. So, the uh the last point that I'll underscore is
to the 1 and a.5% uh raise and the one and a half% bonus, they are 1.75% or 1.77% behind the cost of inflation. If things were just flatline moving
forward with where they are right now, if they were the same, let's just say the same increase, that would mean in 12 in 10 months, the same group of teachers are three and a quarter points behind inflation at that point
because it's a it's a point short on a recurring raise versus inflation. And I dare say they won't be any closer to other employees which I have demonstrated have actually had stronger
base pay increases over the same period of time. These are the concerns that teachers have noticed. They brought them to me. I delved into data to see if in fact they were true. Regrettably, I have to agree with them and I must advocate
for their position. >> Understood. Um I will be happy to meet with my team to see if there is any number that we wish to come out with come back with at this time. >> Uh room A
>> on that side. Correct. Thank you. Are we good with everybody around? >> We're good. >> Okay. Um, we had some uh some very intense conversations. Uh, we've heard everything you've said.
We're aware of our position at this time. We would like to take what we know now back to the association board of directors before we commit to a next action. >> Okay, understood. >> Thank you very much for your time today. >> Thank you.
>> Bye-bye.