1. PUSD Compensation Committee Process Overview Governing Board Study Session January 7, 2013

2. Overview  Board and Council’s Priority for 2012-13  We are committed to designing and implementing a creative, modern, competitive, fair and equitable plan to attract, retain, reward and return to our organization the highest quality staff available in order to ensure that every student, every day is prepared to meet tomorrow.  Deep look at Compensation and How it Aligns to Our Goals to Attract, Retain and Reward

3. Getting Started: Compensation Committee  Administration developed a committee of a cross section of our district  Classified: transportation, food service, instructional assistants, clerical and administrative support (both school and district level), information technology, human resources, payroll, maintenance and grounds, etc.  Certified: high school, elementary, special education, reading specialist, speech therapist, etc.  Administrators: high school, elementary, district level support  Committee’s purpose: Develop the Components and Expectations of PUSD’s Compensation System that will Facilitate Attracting, Retaining and Rewarding Highly Effective Staff  From the work of the Compensation Committee, smaller committee will do the analysis and develop the compensation programs

4. Initial Compensation Program Development Timelines  November:  3 Large Committee Meetings  Administrator Meeting  December  Small group Certified Committee  Executive Council and Advisory Council  Holiday Break  January  Governing Board Retreat  Governing Board Approval(?)  February–April: Communicate, Develop Implementation Plan (set up system, issue contracts, etc.)

5. Perspective: PUSD 1980-2005  Massive growth in student population and the number of employees needed/hired to support that growth  1982-2002 the District opened at least one school per year  Adequate supply of good employees who sought us out  Starting compensation at or above market rate  Raises year over year for all employee groups  “P” in “Peoria” is for People

6. PUSD 2005-Present: Changes in Hiring and Compensation  Stagnant student population growth + massive reduction in funding= no step increases  Employee population remained relatively steady and most reductions occurred primarily through attrition  More accountability: new teacher and site administrator evaluations  More competition for supply of highly qualified and talented staff  Growth of charter schools  Surrounding districts gained status  Hard to Fill Positions-more demand and less supply for candidates highly qualified in math, science, special education, early childhood and junior high  Our Compensation  Below market in many classified, administrative, and certified positions  Cost of benefits continues to rise (ASRS; EBT)  Unsustainable because frozen for 5 years  Increasing numbers of trained employees leaving for higher salaries

7. 7 Current Trends in Compensation  Other Districts/ Employers  Movement away from salary schedules based on steps for tenure  Bigger variance in administrator compensation packages  Competing with municipalities for classified staff (same retirement benefits, higher hourly wages)  Less reliance on benefits to attract employees Education benefit packages reduced due to rising costs and reduction of funding, i.e. retiree medical benefits  Legislature/Political  Accountability increasing: more focus on individual performance for teachers and site administrators  HB 2823 requirement to include performance pay for teachers  Career Ladder compensation will phase out in 2 years Affects long-term staff Compensation as high as $7,000 at one time  Federal funding reductions

8. Moving Forward  How do we meet the ongoing challenge of “Every student, Every Day, Prepared to Meet Tomorrow”?  Market forces making it challenging to retain students  Impact of quality staff on student retention and performance  Considerations for new compensation discussions  Change in culture Salary step schedule synonymous with Education  Complex transition*

9. PUSD- How we compensate today  Salary schedules  Certified: Steps for Professional Growth and “Longevity” 301 Performance Pay  Classified: Steps across for “longevity” Non-exempt staff eligible for professional growth stipends  Administrators: Steps across for “Longevity” Performance pay  Other compensation available for full-time employees:  Medical and Dental Insurance- same for all employee groups  Accrued time off: Certified: Discretionary Classified: Discretionary/Vacation Administrators: Discretionary/Vacation

10. High Level Committee Recommendations  Overall structural changes  Separate cost of living increases from other types of annual increases  Merit: increase to base salary dependent on employee evaluation score  Performance Pay: pay determined by meeting criteria above and beyond evaluation requirements. Performance could be District or School performance. Performance criteria could change each year based on District goals.

11. Initial Recommendations by Group  Administrators:  Eliminate current schedule and give merit increases based on employee evaluation  Set base salary below market*  Increase performance pay portion of the total compensation from less than 2% to over 10%  Classified:  Eliminate current schedule and give merit increases based on employee evaluation  Establish pay levels to market  Establishment of a performance pay system needs more work Concerns regarding appropriate criteria Cost of program if given to all staff

12. Certified Initial Proposal  Salary Schedule  Eliminate schedule as it currently exists  To help maintain competitive advantage, establish salary benchmarks and develop path for employee to reach those benchmarks  Performance Pay will be addressed through 301 Committee as a result of the HB 2823 changes for 2014-15 school year

13. Professional Growth  Administration recommended and small group supported eliminating the steps and paying each year in smaller increments to be added to base salary  Pay out each year (maximum credits will be established)  Include classified exempt in program  Reduction of administrative support to track and pay hours

14. Next Steps  Move forward with developing plans  Continue to involve committee and leadership in discussions/recommendations  Develop recommendation including impact on budget  Interim for 2013-14  New structures for 2014-15