TEACHER AND STAFF PAY RAISES, INSURANCE

2016-17 BUDGET PROPOSAL

OVERVIEW

In an effort to remain competitive with other districts and industries and to retain teachers beyond their first
few years of service the districts talent and compensation teams are re-writing salary schedules and planning
for step raises in fiscal year 2016-17. These changes will require a significant increase in funding for
compensation.

ADDITIONAL INVESTMENT

$14.7 million

WHERE IT GOES
Teacher and Staff Pay Raises

The vast majority of funding for employee pay raises ($10.25 million) will go toward teacher and
administrative pay increases, including changes to the certificated (teacher) salary schedule. The schedule is
being rewritten to correct issues where our teacher pay is below market levels, particularly for teachers with 510 years of experience.
Under the current budget proposal, all teachers will receive a pay increase, though amounts will not be the
same across the board as they have been in years past. The pay increase teachers can expect will depend on
their years of experience.
While we are competitive in starting teacher salaries, market data shows were not increasing teacher pay
quickly enough during the first half of a teachers career to be competitive with how similar cities in our region
pay more experienced teachers.
The revised certificated salary schedule has not been finalized. We are in the process of seeking input from
various stakeholders, including MNEA.
The increase for support employees ($2.7 million) is also intended to address market issues. Most
companies have increased salaries at a higher rate than our 2% across-the-board pay increases from recent
years.

Teacher Insurance Trust

Contributions to the certificated employee insurance trust are expected to increase by 3.7%, or $1.78
million.