OVERVIEW: COSTS OF HSTA’S LATEST PROPOSAL Cost Items Proposed by HSTA (1/11/13)

• Salary & Fringe Benefits – 4% annual increase in each of the 4 years – Multiple step increases based on individual teacher’s years of service – Pay for 5 additional days for teacher planning and collaboration

• Employer contribution for Employee-Union Trust Fund (EUTF) for health benefits premiums:

– 80% single – 60% family – 100% administrative costs

• Other Medical Benefits (Stipends for teachers waiving EUTF benefits) – Family = $300/month – Single = $150/month

• Supplementary Pay Schedule: 12.5% increase • Substitutes for 6 Days/Teacher for Non-classroom Activities • Hard to Staff Incentive Payments Increase to $3,000 (from $1,500 currently)

HSTA Cost Items (millions in addition to the base budget) FY 14–FY 15 FY 16-FY 17 Four-year Total Salary Raise & Fringe Benefits

$242.9 $669.4 $912.3

EUTF Contributions $32.8 $38.4 $71.2 Other Medical $7 $7 $14 Supplemental Pay Increases

$0.8 $0.8 $1.6

Substitutes – 6 Days $23.4 $23.4 $46.8 Hard to Staff Incentive Pay Increase

$4.5 $4.5

Total $306.9 $743.5 $1,050.4 HSTA Proposal Costs $79,000 Per Teacher (based on 13,293 Teachers, as of 8/2012) Total Cost Increases Increased Costs Per

Teacher FY 14 $102,682,762 $7,725 FY 15 $204,224,232 $15,363 FY 16 $306,618,257 $23,066 FY 17 $436,920,564 $32,868 Four-year Total $1,050,445,815 $79,022 HSTA’s proposal is in excess of $1 billion over four years. I ts proposed costs are in addition to the current base budget including a restoration of the temporary 5% labor savings in teachers’ salaries, effective July 1, 2013. The cost of restoring teachers’ salaries is currently included in the Governor’s Executive Budget: $86.1M for FY14-15; $92.6M for FY16-17; totaling $178.8M over four years.