Nothing shocking here for a response.  Basically, we hear yeah but don't know what the future holds.

Richard,

Basic information about the settlement with the RFT has been published on the district website.  It will also be published in the Sun newspapers, including more information about the total amounts.

Analysis has been done and the Board has seen financial projections based on varying factors.  Step and lane increases were included in previous budget projections, as you noted.  If you would like more detail about the effects of the settlement and the  budget projections you can contact Lonnie Smith, out interim business manager, or Stephanie Crosby, our HR Director.

No final decisions on future budgets have been made.  The budget process is long and complicated.  We will be discussing the budget at a short work session before the January 20 board meeting and at a number of sessions thereafter.  There are a number of unknown factors at this time, including Race To The Top funding and other funding or cuts from the state.

The school board is committed to maintaining the long-term financial stability of the district.  We share your concern.  Thank you for your thoughts on how to communicate the budget picture.

Sincerely,

Dear Board Members,

It is now public information about a tentative agreements between 281 and the RFT.  This agreement show a 0% and 1% increase on top of the already established steps/lanes (average of 1.15% per teacher).  What I am concerned about is that there doesn't appear to be anything yet published on the impact of these increases.

So some quick and dirty math gave me these numbers.  First, I understand that teacher reductions with reduced class sizes and retirements are not factored into this.  Second, the average increase of step/lanes vary every year because you cannot predict teachers education pattern.  So as I said, rough numbers.  All numbers are taken from the online budgets and only represent licensed staff (line item 112).

** Assumes 1% increase from contract + 1.15% avg lane/step

So there will be approximately a $972,000 salary increase.  Additionally, there will be a 90,300 increase in payments to health insurance (50 this year and 50 next year for each licensed teacher).  So approximately a 1 million dollar financial hit for just licensed staff.  Other groups will then follow this same process driving up the costs.

My concern is, where is the analysis of the cuts to offset this increase in salary for the following year.  The budget calls for a 3.8 million dollar fund balance, is the thought that this increase in salary comes from the fund balance as there is not an increase in state funding.

I understand the financial pressure to make sure the contract is settled before January 15th, but concerned about long term stability.  My hope is, if the teachers' contract is ratified tomorrow that prior to the board vote that the board publishes the estimated impact and the steps and processes to by which we plan to balance the budget again.

Thank you for your time and dedication to the district.

Thanks,

DJ Brynteson
Crystal, MN