A. Student Based Budgeting (SBB)

SBB, according to the district, is a budget process that distributes funding to schools based on students’ needs and characteristics. SBB is different from traditional budgeting models that primarily allocate resources to schools based on the number of full-time positions assigned to each site. So, instead of staffing allocations, each school will use SBB funds to purchase its blend of positions and materials, such as administrative staff, supporting personal, classroom teachers and supplies.

Critical to the process and what happens will be the enrollment projections. Each school was given a projected enrollment figure in June 2011 and those figures will be updated based on the September 30, 2011 actual enrollment in January 2012. An additional update will be provided based on information from the County in April. The resources dedicated to each school can go up or down at each one of the projected dates.

The implementation schedule for SBB began in 2010 with a planning year, and moved to eight pilot schools that are currently operating under the funding formula. What many of you are likely aware of at this time is that principals and school stakeholders are engaged in the process of determining each school’s needs for next year as part of the budget process. In other words, we are moving to full blown implementation of SBB, except in certain school models that are exempt. Those that are exempt include the Early Childhood Centers, Alternative Schools, Charter Schools and Regional Centers.

Principals, with the assistance of their stakeholders, will have more responsibility for planning their budget based on what they believe are the needs of their building. Positions may be added or removed from the building based on these needs, but in any case, such reductions must be done in accordance with the affected negotiated agreements of the bargaining unit employees that are involved. If the school wants to have one less math teacher in favor of hiring a media specialist, then the reduction in the math department will follow the involuntary transfer process as stipulated in the applicable Negotiated Agreement.

There are three basic categories of resources: Unlocked, Locked and Locked +. Schools will be able to purchase unlocked resources.

• Unlocked – positions or resources that can be purchased using SBB funds
• Locked – positions and resources that are funded and staffed by central office
• Locked + -- positions and resources that are funded and staffed by the central office that can be added to.

There are several additional submission dates remaining in the process and PGCEA would recommend that members of each staff make themselves familiar with the decisions that are being made in their buildings. If it has not occurred, have the FAC request a presentation from the administration on the recommendations that have been submitted so far to the Budget Office from your school.

B. Retirement Incentive

The district is preparing to once again this year offer a Retirement Incentive Program. The superintendent has made a recommendation to the members of the Board of Education (Board) that they must approve to start the process. Last year the announcement and information about the plan came out much later in the year as both parties were scrambling to pull together the resources needed to build a successful plan. PGCEA negotiated directly with the County Executive and was able to secure additional funding that pushed the payout from $15,000 to $20,000 for those that were approved for the program.

At this time, the amount has not been set yet, but PGCEA is again pushing for the largest possible payout to make it an attractive option for those considering retirement. The program last year was a huge success as more than 600 applications came in for retirement. The result was just what both parties had hoped, and that is with the large number of qualifying applicants, the district was able to avoid having to make several hundred actual terminations. As you know, 1,300 positions were cut from the budget, and if not for the retirement incentive, the actual number of lay-offs would have been significant and damaging. More than 300 teachers took the option, and for each one that did, the district was able to avoid laying off another teacher somewhere in the school system. Additional information will be out during the school year and PGCEA will keep you informed on this opportunity.

A couple of key points for the program include:

1. you must be eligible for a normal service retirement;
2. you must have requested a retirement estimate from MSRS by the date the application is submitted; and
3. you must have 12 years of service to qualify for health care benefits in retirement.

C. Negotiations

PGCEA and the Board have formally opened the negotiations process for a new agreement. The parties have exchanged concepts that identify certain problems that either one or both parties have that need to be addressed in the coming weeks. Realistically, there were no surprises in the process. PGCEA introduced the restoration of all steps, stipends and differentials lost during the past couple of years, and the Board also raised the issue of missed steps and the parties will recover from several years of underfunding.

The primary goal for PGCEA in this process is that if the resources are not available to pay employees, then what options exist to improve working conditions either by an enhancement or by eliminating certain responsibilities for teachers. As these concepts and discussions become more concrete, PGCEA will make those available through the use of Table Talk,nov our negotiations newsletter.