Negotiations FAQ
Budget Questions
How is there a shortfall of over $100 million when the state legislature just invested $2.2 billion in public education?
The increased revenue from the state legislature is a welcome and much-needed investment in our schools. Much of the legislative funding is tied to specific initiatives and must be spent as mandated. The new funding will cover some, but not all, of the expenses required to provide these services.
SPPS is receiving $53.8 million in “new” state funding for FY24. At the same time, the district’s investments and offsets this year add up to $88.2 million. This imbalance requires a $34.4 million withdrawal from the fund balance to cover the difference.
If our expenses are not as high as projected for FY24, the amount SPPS will withdraw from the fund balance will be updated as part of the annual budget revision in spring 2024.
In years past, SPPS has estimated a shortfall and ended up with a surplus. Why is this year different?
SPPS has not projected a shortfall this large in the past. The federal ESSER/ARP funds expire in September 2024, which accounts for the majority of the projected shortfall. The other major part of the shortfall is the withdrawal of $34.4 million from the district’s fund balance for FY24. This withdrawal would bring the fund balance just above to the Board-approved minimum of 5%.
If our expenses are not as high as we projected when the FY24 budget was approved in June 2023, the amount SPPS withdraws from the fund balance will be updated accordingly. Any unanticipated revenue will first be used to replenish the fund balance.
The FY24 budget that was approved in June 2023 was based on financial information before the legislative session ended and using projected enrollment. When will the audited report for FY23 that contains updated information be available?
Every year, SPPS creates a revised budget for the current fiscal year, typically in March. The revised budget reflects new information from the time the adopted (original) budget was approved in June. The final audit is due by December 31 each year. At that time, SPPS will be able to share unaudited numbers that reflect the financial performance for FY23. SPPS will update the FY24 (current year) budget in March 2024. By that time, we will also have a very good estimate of what the FY25 budget will look like.
Will all bargaining groups get a 6% increase in parity with the Superintendency (Unrepresented) group?
The Board of Education approved a one-time 6% wage increase for the Unrepresented group (formerly called the Superintendency) at the Aug. 22, 2023, Board of Education meeting. This decision was based on a comprehensive compensation study conducted by Evergreen Solutions that found this group’s salaries were below market rate in comparison to similar employers in the region. The findings and recommendations can be found in the Aug. 22 Board Book starting on page 163.
The Unrepresented group includes assistant superintendents, division chiefs, department directors and other district administrators. It does not include the Superintendent. This group is not in a union and does not receive annual step increases (raises based on years of service) or lane changes (compensation for additional education). Wages for the Unrepresented group remained flat from 2013-2021, with a cost of living adjustment (COLA) of 1.5% in 2021 and 2022. By contrast, most SPPS employees are eligible for annual step increases in addition to an annual COLA. Licensed staff are also eligible for lane changes for completing additional education. All COLAs must be approved by the Board of Education.
The district has a $1 billion budget and has only allocated an additional $17.9 million for ALL employee contracts. How have you settled on this amount?
This amount is based on a 3.1% increase in all costs associated with wages and benefits for all employee groups. This allocation will come from the general fund, which is approximately 80% of the FY23 base budget ($580 million for FY24 budget forecast).
Proposal Questions
What are the most important proposals currently being negotiated?
The Saint Paul Federation of Educators presented 51 proposals in this round of bargaining and SPPS presented 29 across the three employee groups. Tentative agreements have been reached on multiple proposals. SPFE and SPPS are currently in mediation, which is a non-public process designed to help both parties reach an agreement on their employment contracts. The proposals as originally presented are available on the Proposals page of this website.
What is being proposed for wages and benefits?
SPFE has submitted the following wage proposals for their three bargaining groups. Each contract is currently for two years.
- Licensed Educators: $7,500 increase in year one, 7.5% increase in year two
- Educational Assistants: $5.43/hour increase in year one, 7.5% increase in year two
- School and Community Services Personnel: $7,500 increase in year one, 7.5% increase in year two
SPPS has offered the following wage proposals:
- Licensed Educators: 2-3% increase in year one, 1.75% increase in year two
- The 3% increase is for teachers in step 5-8/lane 3-6. Employees in all other steps/lanes would receive a 2% increase. This proposal also includes a $1,300 longevity stipend for all educators starting in the 21st year of service.
- Educational Assistants: 2.5% increase in year one, 1.75% increase in year two, 1.5% increase in year three
- SPPS is proposing that EAs move to a three-year contract
- School and Community Services Personnel: 2% increase in year one, 1.75% increase in year two, 1.5% increase in year three
- SPPS is proposing that SCSPs move to a three-year contract
The Board of Education has approved 3.1% cost of living increases for the first contract year for all 27 bargaining units.
Strike Questions
What does a strike vote mean?
A strike vote is when the members of an employee union vote whether they support going on strike if negotiations fail to produce an agreement between the employer and the union. If a majority of members who participate vote “yes,” the union can file an official intent to strike with the state Bureau of Mediation Services.
Voting “yes” to authorize a union to go on strike does not automatically mean a strike will happen. If an intent to strike is filed, a 10-day period begins to allow the employer and the union to continue negotiating before a strike can begin. If 10 days pass and there is no agreement, then the union can go on strike.