1. Update on PREA Negotiations July 22, 2014

2. Our common goals Long-term predictability - for salary increases and budgetary increases Contain health care costs We all recognize the importance of our teachers to our children and to our community We all want to reach a fair settlement soon and respectfully 2

3. Continuation of a 2% cap on the tax levy Flat or reduced state aid Rising health care costs Rising special education, transportation and other nondiscretionary costs Health benefit contributions collected under Chapter 78 will plateau Rising enrollments at the high school through 2017-18 3 Projections for 2015 – 2016: Constraints and considerations

4. Budget gaps will be harder to close in the future Balancing 2014-2015 budget required closing a $1.6MM gap; managed without cuts to programs or teaching staff Gap between projected revenues vs. expenses will continue to increase 2014-2015 budget gap would have been greater without Tier 4 contributions We are hitting a fiscal cliff! 4

5. We value our teachers 5

6. 6 JurisdictionStarting Salary (BA) Highest Salary Highest vs. Princeton West Windsor$50,500$91,15084.3% Hopewell$50,683$93,06786.1% Montgomery$55,665$96,82089.6% Princeton$54,033*$108,050100% *30% of our teachers make over $90,000/yr; approx. 50 make over $100,000/yr

7. Chapter 78 Board position: based on counsel’s advice, employee healthcare contribution percentages NOT negotiable NJEA position: contribution percentages should be negotiable Reality: Even if Chapter 78 were repealed, PPS budget cannot be balanced giving an increase plus a rollback of employee contributions to their healthcare premiums 7

8. Next steps Impasse: A third-party mediator from PERC to assist in finding agreement Board desires a mutually beneficial, fair, and affordable contract – working to reach that goal before the fall Meeting with PREA Negotiating Team July 24 We heard at our last Board meeting that movement on the guide is important to our teachers; we are preparing further details to our proposal that will allow that, within budget Health care important to both sides – we are working on options where we can share the savings 8