1. Despite sitting on $800 million in unrestricted net assets, PASSHE is continuing its attempt to take away faculty rights and benefits. If you do not support a strike authorization vote, you risk getting a contract with: – A 35% reduction in temporary faculty salaries – Increased out-of-pocket healthcare costs – Elimination of annuitant healthcare and continued lack of domestic partner annuitant healthcare – Mandatory development and teaching of distance education courses without compensation

2. Stronger Weaker Source: PASSHE ChartUnrestricted net assets compared to total annual operating budget, including auxiliaries. PASSHE has unrestricted funds equal to almost two years of the state appropriation or 50 percent of its annual operating budget. $800 million The Median Ratio for Aa2 Rated Institutions is 27%

3. Ten Year Loss In Earnings If Asst. Prof. At Step 4 Misses One Step Source: Comparison of Pay Steps Based on 2010 Pay Scale

4. These unfair cuts would hurt female faculty the most: 59% of all temporary faculty are women. Temp TypeCurrent Annual Salary Annual Salary Under PASSHE Proposal Potential Salary Loss Instructor I Full-Time$44,792$29,114-$15,687 Avg. Full- Time$48,409$31,465-$16,944 Temp TypeSalary Per CourseSalary Per Course Under Proposal Potential Salary Loss Per Course Instructor I Part Time$5,599$3639-$1,960 Avg. Part Time$6,051$3,933-$2,118 Source: 2010 Pay Scale; Spring 2012 SysPay Data

5. Public Assistance ProgramEligibility Supplemental Nutrition Assistance Program (Food Stamps) Maximum monthly income of $2472 for households of 3 or more Medical Assistance: Healthy Beginnings Program Maximum monthly income of $2944 for pregnant women with a household of 3; $2555 for household of 4 with children aged 1to 5 years. Low-Income Heating Assistance Program (LIHEAP) Maximum Yearly Income of $34,575 for household of 4. Childcare Works Subsidized Childcare Program Maximum yearly income of $30,260 for family of 2. SNAP: http://www.dpw.state.pa.us/foradults/supplementalnutritionassistanceprogram/snapincomelimits/index.htmhttp://www.dpw.state.pa.us/foradults/supplementalnutritionassistanceprogram/snapincomelimits/index.htm Medical Assistance: http://www.dpw.state.pa.us/foradults/healthcaremedicalassistance/incomeandresourcerequirementsforhealthybeginnings/index.htm LIHEAP: http://www.dpw.state.pa.us/foradults/heatingassistanceliheap/homeheatingassistanceliheapeligibility/index.htmhttp://www.dpw.state.pa.us/foradults/heatingassistanceliheap/homeheatingassistanceliheapeligibility/index.htm Childcare Work: http://www.dpw.state.pa.us/forchildren/childcareearlylearning/childcareworkssubsidizedchildcareprogram/index.htmhttp://www.dpw.state.pa.us/forchildren/childcareearlylearning/childcareworkssubsidizedchildcareprogram/index.htm

6. PASSHE is proposing to eliminate Indemnity Plans while increasing PPO out-of network deductibles and raising out of pocket prescription drug costs. Increase in Faculty PPO Premium Contribution Per Paycheck (Based on 26 Pays) Family Two Single Source: Open Enrollment Summaries

7. – PASSHE’s reduced contribution to the H&W fund has remained flat since 2004 while medical inflation has risen 30.3%. As a result, average out of pocket costs for dental/vision have risen $264 per FTE faculty member since 2005. Source: Health and Welfare Fund Annual Reports (2005-2011); BLS Medical Inflation Data (2005-2012). Percent of Amount Paid Out of H&W Fund Vs. Billed Charges (Source: H&W Annual Report: Graph 11) Dental Vision Suppl.

8. PASSHE latest proposal continues to refuse annuitant healthcare benefits for a domestic partner—a right that is the norm in higher education. According to our healthcare consultant, adding a domestic partner would be effectively cost-neutral. As of Spring 2012, there were only 37 active faculty members with domestic partner healthcare benefits. PASSHE can afford to provide this basic right. (Source: Spring 2012 Syspay)

9. The following slides show how PASSHE carves out specific items at negotiations and uses the “slippery slope” to its advantage in subsequent negotiations to strip faculty of rights and benefits. This pattern must STOP before we are forced into a toothless CBA!

10. 1999-20022003-20072007-2011Proposed ParticipationVoluntary Mandatory CompensationArticles 23 & 27 Articles 23 & 27 Articles 23 & 27 Article 23 Remote Site Compensation $500 first 10 students; $40 each additional $25 per student No compensation Preparation Compensation $2000 for first year; Payment every 3 years after $800 per credit for first year; $100 per credit up to 3 times in 5 years No compensation

11. 1999-20022003-20072007-2011Proposed ChoicesIndemnity HMO POS Medicare Part B Made mandatory for retirees after 1/2/99 Indemnity HMO POS (elim. 6/30/04) PPO (eff. 7/1/04) Indemnity Plan closed to new enrollees 7/1/08 changed to Comprehensive Plan 7/1/09. Prohibited for retirees. Eliminate Indemnity 7/1/13 Re-design PPO to be more “employer effective” DeductibleIndemnity (1/2/99 $250) POS (OON $100/$300) Indemnity (7/1/04 $500)/$1500 /20% to $350 max) PPO (OON $250/$500) Comprehensive (7/1/08 $500/$1500 20% to $425 max) (7/1/10 $750/$2250 20% to $750 max) PPO $0 in network; Out of Net. $400 Out of Net. co-insurance 70% Employee Contribution And Participation in Wellness Plan No premium share10% premium share (7/1/2005) Increase to 15% (2010); addition of penalties for non- participation in Employee Wellness Program 15% of premium; 25% for Wellness Program non-participants Rx Drug Copay Retail100% reimburse H&W Fund – supplemental eliminated 7/1/04 Ded. $100/$300 $5 Generic $10 formulary $20 non-brand formulary 7/1/08 deduct. $0 $0 generic $15 formulary $30 non-brand formulary $10 generic $18 formulary $36 non-brand formulary Rx Drug Copay - Mailna $0/$30/$60$20/$36/$72 PASSHE is even proposing to turn annuitant healthcare into a voucher system.

12. 1999-20022003-20072007-2011Proposed Salary Increments 1999 – 3% Raise 2000 – 2% Raise; 1% in January 2001 – 2% raise; 1.5% in January 2003 – 2.5% raise 2004 – no raise 2005 – 3% raise 2006 – 3% raise; 2.5% raise in January 2007 – no raise 2008 – 3% raise 2009 – 3% raise 2010 – 4% raise 2011 – no raise Year 1 – no raise Year 2- 1% raise Year 3 – 1% raise Year 4 – 2% raise Steps1999 – step 2000 – step 2001 – Final; automatic step New 12 step scale w/ 5% for first 5 steps and 2.5% for top 7 steps 2003 – no step 2004 – step 2005 – no step 2006 – step plus addition of 13 th step 2007 – step; cash bonus of $1750 for those at top of scale 2008 – step 2009 – step 2010 – step/2.5% cash bonus for those at top of scale 2011/12 – no step 2012/13– step Spring ‘13 2013/14– step Spring ‘14 2014/15 – step Spring ‘15 Temporary faculty are also being asked to take the equivalent of a 35% pay cut!