Medford School District 549c Final Offer Costing 11/19/2013 FY2013-14

ARTICLE X and XI - Leaves of Absence and Basic Compensation Total Licensed Salaries 2013-14 Base $32.8 million 2013-14 Proposal $37.4 million Increase/ (Decrease) $4.6 million How it is calculated $4.6 Mllion increase in cost includes: - Steps ($.4mm) - 10% base wage increase ($3.4mm) - Staffing additions (15.16 FTE - $.8mm) 2013-14 Proposal $1.0 million Increase/ (Decrease) $0.1 million

ARTICLE XVI - X-COMP Total Licensed X-COMP

2013-14 Base $0.9 million

How it is calculated $0.1 million increase includes: - Increase in X comp ($.1mm)

ARTICLE X, XI and XIII- Fringe Benefits Total Licensed Fringe Benefits

2013-14 Base $19.2 million

2013-14 Proposal $19.1 million

Increase/ (Decrease)

How it is calculated - PERS increase on wage increase ($1.1mm) - PERS increase on staffing increase ($.2mm) - PERS Pickup on wage increase (<$2.1mm>) - PERS Pickup on staffing increase (<$.1mm>) - Other benefits increase on wage increase ($.3mm) - Other benefits increase on staffing increase ($.3mm) - Health Insurance Cap ($.2mm)

<$0.1> million $0.1 Million Decrease includes:

ARTICLE XIV - Retirement Benefits Retirement Benefits

2013-14 Base

2013-14 Proposal

Increase/ (Decrease) See Separate Analysis

How it is calculated No Impact until March 2014. Current healthcare would be eliminated and replaced with one time payments for eligible employees. See attached analysis for long term impact.

Total Wages

Subtotal Salaries and Benefits

$52.9 Million $57.5 Million

$4.6 Million

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Medford School District 549c Final Offer Costing 11/19/2013 FY2013-14

ARTICLE IV - District Management Obligations Professional Development in-service 2013-14 Proposal $ 29,247 Increase/ (Decrease) $

2013-14 Base $ 28,489

How it is calculated $758 increase includes: 758 $50 per member for increased FTE

ARTICLE IX School Calendar and Work Year School work year increase from 186 to 192 days Non Compensation Support Costs

2013-14 Base $6.2 Million

2013-14 Proposal $6.3 Million

Increase/ (Decrease) $0.1 million

How it is calculated $0.1 million increase is for subset of Supplies and Services(e.g. Supplies, non consumables, utilities, transportation, etc) that increase with additional MEA personnel days on site

Total ($ Millions)

2013-14 2013-14 Base Proposal $59.1 Million $63.8 Million

Increase/ (Decrease) $4.7 Million

In addition to the $4.7 million addition for 2013-14, there are 30.84 FTE in the 2013-14 base that were hired after the last contract at an annual cost of $2.9 million so the cumulative increase since last contract is $7.6 million

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Medford School District 549c Final Offer Costing 11/19/2013 FY2014-15

ARTICLE X and XI - Leaves of Absence and Basic Compensation Total Licensed Salaries 2014-15 Proposal $38.3 million Increase/ (Decrease) $0.9 million

2014-15 Base $37.4 million

How it is calculated $0.9 million increase includes: - Steps ($.5mm) - 1% base wage increase ($.4mm)

ARTICLE XVI - X-COMP Total Licensed X-COMP

2014-15 Base $1.0 million

2014-15 Proposal $1.0 million

Increase/ (Decrease) $0.0 million

How it is calculated There would be a 1% increase with the salary schedule that rounds to less than a tenth of a million

ARTICLE X, XI and XIII- Fringe Benefits Total Licensed Fringe Benefits

2014-15 Base $19.1 million

2014-15 Proposal $19.9 million

Increase/ (Decrease) $0.8 million

How it is calculated $0.8 million increase includes: - PERS Increase ($.3mm) - Health Insurance Increase due to MEA employee contributions being held flat ($.5mm)

Total

$57.5 Million $59.2 Million

$1.7 Million

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Medford School District 549c Final Offer Costing 11/19/2013 FY2015-16

ARTICLE X and XI - Leaves of Absence and Basic Compensation Total Licensed Salaries 2015-16 Base $38.3 million 2015-16 Proposal $39.2 million Increase/ (Decrease) $0.9 Million How it is calculated $0.9M increase includes: - Steps ($.5mm) - 1% base wage increase ($.4mm) 2015-16 Proposal $1.0 million Increase/ (Decrease) $0.00

ARTICLE XVI - X-COMP Total Licensed X-COMP

2015-16 Base $1.0 million

How it is calculated There would be a 1% increase with the salary schedule that rounds to less than a tenth of a million

ARTICLE X, XI and XIII- Fringe Benefits Total Licensed Fringe Benefits

2015-16 Base $19.9 million

2015-16 Proposal $19.7 million

Increase/ (Decrease)

How it is calculated - PERS increase ($.3mm) - Health Insurance (<$.5mm>)

<$0.2> million <$0.2> million decrease includes:

Total

$59.2 Million $59.9 Million

$0.7 Million

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Medford School District 549c - Article XIV Projected Early Retirement Incentive Costs
The Early Retirement Incentive in the expired MEA contract provides for up to eight (8) years of medical coverage through the Districts' self-funded medical plan for employees hired prior to July 1, 2006. Assuming the last eligible employee retires immediately upon becoming PERS retirement eligible, the District would have been funding retiree costs into the year 2043. Forecasting 30 years into the future is an inexact process and involves several assumptions. The key assumptions are as follows: A. Employees retire on the first day they are eligible for retirement B. Medical benefit experts project medical inflation at 8%, although the District also used a 5% inflation rate as comparison C. The proposed District medical insurance contribution covers 95% of employee "premium" cost. The employee contribution amount on a rate basis is expected to increase over time, so both a 90% and a 95% rate are considered. D. It is assumed that no insurance plan changes occur over the next 30 years. Most employer plans change over time to contain costs. E. The projection does not include the unfunded liability for retirees from the District who are currently on the plan. F. The proposed plan allows the individuals who already meet the conditions for retirement in the previous plan to retire with the medical option, if the individuals retire by March 31, 2014. The costs below assume all eligible for the medical option at March 31, 2014 will retire by that date. The cost for all remaining eligible employees is done assuming the fixed payment option is taken.

Projected District Cost of Proposed Hybrid Plan with Healthcare Prior to March 2014 and a Fixed Payment Plan After March 2014 District pays 95% $9.6 Million $9.3 Million District pays 90% $9.4 Million $9.1 Million Comments Assumes 42 employees elgible for early retirement healthcare by March 2014 take the healthcare option and the remainder who qualify after that date get the fixed payment plan.

Total Cost at 8% inflation Total Cost at 5% Inflation

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Medford School District 549c Supplemental Salary Schedule for Final Offer to MEA 11/19/2013 FY13-14 BASE DISTRICT EXPENSE
FOOTNOTES (A)
POSITION TYPE Certificated OBJECT FY13-14B FTES 569.78 BASE GROSS WAGES 33,627,603.64 WAGE ADJUSTMENT ADJUSTED GROSS WAGES 33,627,603.64 PERS 9,263,905.28 PERS PICKUP HEALTH INSURANCE 6,765,122.52 LIFE INSURANCE 17,781.65 SOCIAL SECURITY 2,084,911.46 MEDICARE 488,701.63 SAIF 272,383.59 SUI 208,491.15 LTD 72,716.19 HI OPT OUT 62,171.67 TOTAL 52,863,788.77 COST PER FTE 92,779.30

FY13-14 ADJUSTMENTS
POSITION TYPE OBJECT FY13-14B FTES 15.16 BASE GROSS WAGES 1,256,840.39 WAGE ADJUSTMENT (10%) 3,488,444.40 ADJUSTED GROSS WAGES 4,745,284.79 PERS 1,319,723.37 PERS PICKUP (2,202,142.33) HEALTH 359,654.18 LIFE INSURANCE 469.96 SOCIAL SECURITY 294,207.63 MEDICARE 67,705.26 SAIF 38,436.81 SUI 29,420.76 LTD 1,934.74 HI OPT OUT 1,654.19 TOTAL 4,656,349.35 COST PER FTE 8,172.19

(B)

Certificated

POSITION TYPE

OBJECT

FY13-14B FTES 584.94

BASE GROSS WAGES 34,884,444.03

WAGE ADJUSTMENT (10%) 3,488,444.40

ADJUSTED GROSS WAGES 38,372,888.44

ADJUSTED FY13-14 DISTRICT EXPENSE

PERS 10,583,628.65 PERS PICKUP (2,202,142.33) HEALTH 7,124,776.70 LIFE INSURANCE SOCIAL SECURITY 2,379,119.08 MEDICARE 556,406.88 SAIF 310,820.40 SUI 237,911.91 LTD 74,650.93 HI OPT OUT 63,825.86 TOTAL 57,520,138.12 COST PER FTE 100,951.49 18,251.61

(B)

Certificated

POSITION TYPE

OBJECT

FY13-14B FTES -

BASE GROSS WAGES -

WAGE ADJUSTMENT 383,728.88

ADJUSTED GROSS WAGES 886,701.24

FY14-15 ADJUSTMENTS
PERS 248,933.61 PERS PICKUP (52,199.76) HEALTH 502,103.45

LIFE INSURANCE (18,091.65)

SOCIAL SECURITY 54,975.48

MEDICARE 12,857.17

SAIF 7,182.28

SUI 5,497.55

LTD (1,934.74)

HI OPT OUT (1,654.19)

TOTAL 1,644,370.43

COST PER FTE 2,885.97

(C)

Certificated

POSITION TYPE

OBJECT

FY13-14B FTES 584.94

BASE GROSS WAGES 38,870,880.87

WAGE ADJUSTMENT 388,708.81

ADJUSTED GROSS WAGES 39,259,589.67

ADJUSTED FY14-15 DISTRICT EXPENSE

PERS 10,832,562.26 PERS PICKUP (2,254,342.10) HEALTH 7,626,880.15 LIFE INSURANCE SOCIAL SECURITY 2,434,094.56 MEDICARE 569,264.05 SAIF 318,002.68 SUI 243,409.46 LTD 72,716.19 HI OPT OUT 62,171.67 TOTAL 59,164,508.55 COST PER FTE 103,837.46 159.96

(C)

Certificated

POSITION TYPE

OBJECT

FY13-14B FTES -

BASE GROSS WAGES -

WAGE ADJUSTMENT (1%) 392,595.90

ADJUSTED GROSS WAGES 900,597.97

FY15-16 ADJUSTMENTS
PERS 252,853.92 PERS PICKUP (53,023.55) HEALTH (502,103.45)

LIFE INSURANCE -

SOCIAL SECURITY 55,837.07

MEDICARE 13,058.67

SAIF 7,294.84

SUI 5,583.71

LTD -

HI OPT OUT -

TOTAL 680,099.19

COST PER FTE 1,193.62

(D)

Certificated

POSITION TYPE

OBJECT

FY13-14B FTES 584.94

BASE GROSS WAGES 39,762,562.03

WAGE ADJUSTMENT (1%) 397,625.62

ADJUSTED GROSS WAGES 40,160,187.65

ADJUSTED FY15-16 DISTRICT EXPENSE

PERS 11,085,416.18 PERS PICKUP (2,307,365.64) HEALTH 7,124,776.70 LIFE INSURANCE SOCIAL SECURITY 2,489,931.63 MEDICARE 582,322.72 SAIF 325,297.52 SUI 248,993.16 LTD 72,716.19 HI OPT OUT 62,171.67 TOTAL 59,844,607.74 COST PER FTE 105,031.08 159.96

(D)

Certificated

FY13-14 Base

(A)
FY13-14

FY13-14 Base District Expense reflects FY13-14 baseline figures prior to FY 2013-14 adjustments. The base does include an additional 30.84 FTE over the staffing level at the beginning of the prior contract which represents approximate cost of $2.9 million annually.

(B)
FY14-15

Adjustments to FY13-14 Base District Expense include: ' - Actual FTE additions from base, Wage Increase 10%, STEP salary increases, MEA employees pickup 6% PERS contribution, $1,050 Health Insurance Cap

(C)
FY15-16

Adjustments to FY13-14 Adjusted District Expense include: ' - Wage Increase (1%), STEP salary increases, Employee Healthcare contributions held flat to 2013-14 - District picks up estimated 8% healthcare cost increase

(D)

Adjustments to FY14-15 Adjusted District Expense include: ' - Wage Increase (1%), STEP salary increases, Employees pay Health Insurance costs over $1,050 composite Cap

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