The York County School Board wants to increase employee compensation, but has to decide how many of its goals it can accomplish without having to make deeper cuts elsewhere in the budget.
The school board continued its discussion of budget priorities for 2014 in a work session and meeting on Monday night. Ideally, the board would like to give all employees at least a 2 percent pay increase, a step increase, a 4 percent salary increase to offset higher contributions to the retirement system and cover rising health care costs. Reaching those goals, however, is complicated by an estimated $2.9 million budget gap.
The division doesn’t yet know how much state and federal funding will be available, but estimates its expenditures will increase $3.2 million. Once its current revenue increase estimate of $247,835 is subtracted, the division is short $2.9 million.
Earlier this month, the school board asked what it would cost to provide a step increase to staff for the first time in years. On Monday, Superintendent Eric Williams said it would cost $1.25 million. To finance the increase, he said the division could cut 14 full-time classroom teachers, six para-educators and pass increased costs for health and dental insurance on to employees.
The largest cost increase is $2.6 million for health insurance; it’s the second year in a row the division filed more claims than usual, triggering a 20 percent cost increase. The increase includes an employee share of $423,120.
The increased expenditure estimate also includes $1.5 million for a 2 percent salary increase for all staff. If the General Assembly approves a proposal from Gov. Bob McDonnell to pay for salary increases, the division would receive $565,000 toward the pay increases for state-required positions. For a first-year teacher, 2 percent would equal a raise of $781, or $15 a week before taxes.
The board will also have to decide how to address a state mandate to increase employee contributions to the Virginia Retirement System. Last year, the General Assembly required local and school employees to contribute 5 percent to their retirement savings plans, provided their employers offset the contribution with an equal or higher pay increase. Employers could either tackle the entire 5 percent increase in one year, or phase it in for up to five years. York County Schools opted to require a 1 percent contribution, providing a slightly higher pay increase to cover payroll taxes.
This year, Williams is suggesting the board attempt to cover the remaining 4.08 percent increase in fiscal year 2014, at a cost of $1.2 million. On Monday, he said 80 of the state’s 134 divisions implemented the full 5 percent last year, leaving York County in the minority. He believes the difference impacts recruitment of experienced teachers.
The board members weighed the options in their discussion and are split on whether to prioritize their compensation goals, or ask the York County Board of Supervisors to increase the county contribution to pay for the 2 percent salary increase, the VRS increase, the step increase and/or the health insurance costs. School Board member Cindy Kirschke advocated prioritizing one or two of those options.
“I hate to give a 2 percent raise and then have to turn over two-thirds of it to health care…I hate to do that, but at the same time, we’ll be asking the supervisors for money and in turn, taxpayers may have to pay for the increase,” she said.
Barbara Haywood was concerned about the one-third of employees who are not enrolled in the division’s health care plan. She noted they will not see a great benefit if the board chooses to cover health care costs, rather than providing a step increase.
Kirschke said her priority is providing a pay increase, and she thinks the board should decide either to cover health insurance costs or offer the full 4 percent VRS salary offset, but not try for both. “I don’t see how we can go to the board and ask for everything,” she said.
Board member Robert George said he feels the School Board should ask the Board of Supervisors for whatever is needed. “They have their concerns, without a doubt, and we have ours,” he said. “I feel like we’ve always said it’s a budget of need, and we’re going to do everything we can…even if it means standing there and hearing ‘no.’”
During a public hearing at the regular meeting, resident Pam Pouchot said she felt the division should offer a step increase. Percentage raises are not equitable, she said, and widen the gaps between pay grades. “Our teachers deserve the best, but sometimes that’s more than we can afford,” she said.
Kati Rutherford, a guidance counselor at Tabb High School, discouraged passing health care costs to employees. “Since compensation has been stagnant, employees would have to consider where it’s going to come out of their monthly budget,” she said.
In response, Kirschke encouraged employees to share input on what they consider priorities before the board’s next meeting. The board will meet for its annual joint budget work session with the Board of Supervisors at 6 p.m. Feb. 5 in the East Room at York Hall.
