From the Inquirer.
The article says "planning could lessen the impact".
We all know what the Emperor thinks about planning.
Pa. teacher pension agency says outlook worsens
The Associated Press, Posted on Fri, Dec. 12, 2008
HARRISBURG, Pa. - Pennsylvania's public school pension fund says school districts should try to start saving for an expected increase in costs starting in 2012.
The Public School Employees Retirement System announced Friday that the amount of payroll that school districts and the state will have to contribute that year is now expected to be more than 16 percent, up from earlier projections of about 11 percent.
The system's board of trustees says next year's employer contribution rate will be just under 5 percent, fractionally higher than the current year's.
Pension system officials say planning could lessen the impact of the dramatic increase expected to hit in four years.
The pension fund's investment portfolio was $55 billion at the end of September.
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Friday, December 12, 2008
PA school pension subsidy will nearly quadruple to $2.3B by 2012-13
New data from the Pennsylvania Public School Employees' Retirement System projects taxpayers' "employer contribution" to school teacher and administrator pension and retiree health care will nearly quadruple by 2012-13, to $3.2 billion, from $595 million this year.
Pensions for retired teachers and administrators are paid partly by investment profits, and partly by teacher payroll deductions; the rest is funded by state and school district taxpayers. Under the current subsidy formula, which takes into account investment profits and losses for the past several years, next year's contribution rate will go up only slightly, to 4.78 percent next year, from the current 4.76 percent, but the rate will make a "dramatic" increase in 2012-13, more than tripling to 16.40 percent, executive director Jeffrey B. Clay warned.
The actual cost will go up even faster than the rate, because the state expects teacher payroll to zoom to $14.1 billion, from $12.5 billion. Clay urged Pennsylvania school boards to set aside money for the increase now, despite the weak economy, because the state is losing money on its pension fund investments as values fall.
Tuesday, December 16, 2008
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From today's BCCT. In Morrisville, why ask, just rip up the teachers contract and hand them a new one (crap sandwich) the way you want it to be, a la Dr. Yonson's contract? Use difficult times to implement your ideology. As the great Rudy Giuliani likes to put it, "a noun, a verb, and 9/11". People seem to buy that crap for a long time before they catch on to the excesses and the banktrupcy of the ideology.
Official wants teachers to take a smaller pay hike
By BILL DEVLIN
Bucks County Courier Times
A Centennial school board member wants the district teachers to agree to trim the size of their pay increase next year.
Dr. Andrew Pollock made the request Monday night as the board's finance committee began examining the draft of the 2009-10 budget.
The $93.6 million plan would increase taxes by 6.81 mills, which translates to about $177 for the average homeowner.
While Timothy Vail, director of business administration, cautioned that the figures presented Monday night could change before the budget's preliminary adoption in February, he did say the $177 tax increase would be mitigated by homestead exemption rebates from gambling revenue. The rebates amounted to $166 in 2008.
Pollock began the budget discussion by challenging the teachers union to meet with the board to discuss pay hike reduction. He said it was “outrageous” that teachers would be receiving on the average a 7.1 percent pay raise for 2009-10 school year.
Pollok wants them to agree to a 5.19 percent average increase.
“I know we have a contract,” said Pollock, “but we should ask the union to agree to a reduction. If not, then we should furlough 2 percent of the teachers.”
School Board Vice President Cynthia Mueller, who serves as an alternate on the finance committee, said the salary matrix, which contains many steps and provides for increases as teachers acquire credits and degrees, would have to be examined.
According to the matrix, some teachers would be getting less than 7.1 percent and some would be getting more.
Board member Jane Schrader Lynch said she would like to see contracts of other Bucks districts to see how they deal with the salary matrix. Pollock agreed and groused at the fact that the district was giving teachers pay raises for getting teaching credits that are mandatory.
“By law they're required to get those credits,” he said. “Why should we be paying them to get something they are required to get?”
Pollock also said he wouldn't vote for a budget that calls for a 22 percent increase for health insurance for employees.
Vail, the district's business manager, said that the teachers contract is “pretty specific” as to what kind of health coverage must be offered.
However, he agreed to look into what other options there were available that were comparable to that of the current health care provider.
The draft present Monday night did draw praise from many of the board members.
“This is the first time the preliminary budget has come in within the cap,” said Mueller.
“It's outstanding that the administration and everybody has made the cuts. They've already done the work.”
Significant reductions were made in the special education and pupil services portion of the budget.
Susan Klyman, director of special education, said the district will be saving money by taking its students out of programs in the Bucks County Intermediate Unit and placing them in district schools.
Costs were also trimmed in technology and capital spending requests. Staffing figures for next year were not presented at the meeting.
Acting Superintendent Sandy M. Homel met with the finance committee in executive session to discuss staffing requests.
The district must adopt a preliminary budget by Feb. 10.
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