1. Fiscal Aspects of Negotiations
ACSA 2017 Negotiator’s Symposium
Fiscal Aspects of Negotiations
January 20, 2017
Presented by
Ron Bennett
CEO
Matt Phillips, CPA
Director, Management Consulting Services

2. Financial Management and Collective Bargaining
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Right or wrong – no single step in budget decision making can:
Impact as much as collective bargaining
Recast priorities
Make or break a long-range plan
Lead to deficits, bankruptcy, early retirements, and recalls
Superintendents must be able to lead in an area probably foreign to their training and sometimes foreign to their natural instincts
The chief human resources officer may or may not be the lead negotiator, but it is their responsibility to provide the superintendent with the information they need to effectively lead negotiations and work with the board

3. Reminders and Hints for District Negotiators
© 2017 School Services of California, Inc.
You are the public. You are not a neutral.
The bargaining table is unequal. The district has all the marbles.
Management can also “demand.” It is not a one-way street.
Recognize that anything you say can and will be used against you
Language is forever
Public pressure is often a deciding factor
Honesty and openness need not compromise your position

4. Reminders and Hints for District Negotiators
© 2017 School Services of California, Inc.
School finance is finite – if “this,” then not “that”
Unions represent “employees” and not “education”
If you are ever going to say “yes,” know it early
Don’t be afraid of impasse; prepare for negotiations as if you are going to factfinding
Remember, it is not unfair to just say “No”

5. Build Your Offer on Comparisons
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Comparable salary and benefits is the single most important statistic for how a contract should settle
What is the best comparable group?
Use a common type – unified, high school, or elementary, and
Use districts in the same geographical market basket; or
Use districts within a common size band; or
Use a financial characteristic that is like your district, such as:
Other basic aid districts, or
Districts with high deficit spending, or
Districts with fast declining enrollment

6. Methods for Measuring Compensation
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Certificated comparison categories – total compensation
BA average district contribution to health plan
BA average health
BA average health
Maximum + average health
Classified comparison categories
Pick beginning and ending salaries for one position in each major class:
Clerical
Transportation
Aides
Maintenance
Grounds

7. Supplemental and Concentration Grant Funding
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We handle ongoing funding above the Base Grant separately
The Local Control and Accountability Plan (LCAP) drives the expenditure of these funds in the following way:
Priority for the students who generate the funding
Proportional to the students who generate the funding
To increase or improve services for the students who generate the funding
If our LCAP warrants, we can use the additional funds for:
Paying staff for more time
Hiring more staff
Professional development
Any items within the scope of bargaining would be negotiated separately from the Base Grant

8. Fairshare Calculation
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New LCFF* Revenue
$20,000,000
Less Supplemental/Concentration Dollars Targeted by the LCAP
- $10,000,000
Base Dollars
$10,000,000
Less CalPERS/CalSTRS Increases
- $2,000,000
$8,000,000
Teacher’s Share of the Budget
x 50%
Teacher’s Share
$4,000,000
Less Step and Column
- $1,000,000
Less New Hires
- $1,000,000
$2,000,000
Divided by Cost of 1%
÷ $1,000,000 2%
*Local Control Funding Formula (LCFF)

9. Per-ADA Revenues vs. Expenses
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10. Preparing for Factfinding
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Factfinders shall consider (EERA ):
State and federal laws applicable to the employer. 1
Stipulations of the parties. 2
Interest and welfare of the public and the financial ability of the public school employer. 3
Comparison of the wages, hours, and conditions of employment with other employees generally in public school employment in comparable communities. 4
The Consumer Price Index (CPI) for goods and services, commonly known as the cost of living. 5
Overall compensation, including wages, vacations, holidays, insurance, pension, medical, and hospitalization benefits received. 6
Any other facts not included in 1 to 6 above, which normally are taken into consideration in making findings and recommendations. 7

11. Negotiations Process
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12. Negotiations Process Timelines
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13. Thank you