Status of Negotiations with the

Kalamazoo Education
Association
August 17, 2017
 District budget
On June 29,2017 the Board approved a 2017-18 district budget that
included a 1.38% salary increase, which needed to cover base
increases and any step increases.
That same night, the Board approved contracts with all unions except
the Kalamazoo Education Association. These contracts were within
the 1.38% budgetary parameter.
The three non-union groups have also been awarded salary
adjustments within the 1.38% budgetary parameter.
Contracts approved by the Board on 6/29/17
Food Service Employees Collective Kalamazoo Support Professionals
Bargaining Unit Service Employees International
Food Service Managers Collective Union Local 586 (custodians)
Bargaining Unit Teamsters Local 214 Maintenance
Home School Support UAW Local 2150 Administrators
Specialists/Home School (Units I and II)
Interventionists
Kalamazoo County Education
Association/Kalamazoo Behavioral
Specialists
Kalamazoo Public Schools
Transportation Association
Non-union groups awarded salary adjustments
consistent with the 1.38% budgetary parameter
Executive assistants
Supervisory/technical employees
Excluded administrators
 Revision in budget authority
By necessity, many budget assumptions made in June are based on
estimates.
As actual information becomes available, we compare this
information to budget estimates.
During the week of August 7, our financial staff analyzed attrition
savings and determined that they were greater than the original
budget estimate. As a result, the budget authority for employee
salaries was increased from 1.38% to 1.88% without creating an
imbalanced budget.
This increase will ultimately result in adjustments for all employee
groups.
Current district and association
economic bargaining positions
District proposal #1
Pay of steps $ 719,574
Add a mandatory mail rider to health insurance $ (76,078)
Eliminate 7 extra duty high school team leader assignments $ (11,059)
Pay a 0.882% base pay increase $ 559,176
Net cost of alternative #1 $1,191,613
Budget authority (1.88%) $1,191,893
Under budget authority $ (280)
District proposal #2
Pay full step increase $ 1,439,148
Add a mandatory mail rider to health insurance $ (76,078)
Eliminate 7 extra duty high school team leader assignments $ (11,059)
Eliminate the elementary planning time stipend $ (276,188)
Pay a 0.183% base pay increase $ 116,019
Net cost of alternative #2 $1,191,842
Budget authority (1.88%) $1,191,893
Under budget authority $ (51)
Association proposal
Pay full step increase $ 1,439,148
Add a mandatory mail rider to health insurance $ (76,078)
Eliminate 7 extra duty high school team leader assignments $ (11,059)
Increase the health savings account contribution $ 44,036
Pay a 0.57% base pay increase $ 361,372
Economic value of 3 fewer work days for
association members $ 982,678
Net cost of the association proposal $ 2,740,097
Budget authority (1.88%) $ 1,191,893
Over budget authority $ 1,548,204
Kalamazoo County school districts average
teacher salaries
2010-11 2015-16 % Inc.

KPS $ 51,544 $ 56,745 10.09%

Vicksburg $ 55,923 $ 58,743 5.04%
Portage $ 60,745 $ 61,533 1.30%
Gull Lake $ 56,340 $ 55,681 -1.17%
Parchment $ 57,708 $ 56,579 -1.96%
Schoolcraft $ 52,591 $ 51,012 -3.00%
Climax-Scotts $ 44,268 $ 42,001 -5.12%
Galesburg-Augusta $ 50,897 $ 46,098 -9.43%
Comstock $ 53,639 $ 46,259 -13.76%

Average -1.86%
Middle Cities Education Association school
districts average teacher salaries
2010-11 2015-16 % Inc.

KPS $ 51,544 $ 56,745 10.09%

Benton Harbor $ 43,228 $ 47,562 10.03%
Beecher $ 44,977 $ 48,735 8.36%
Ferndale $ 53,274 $ 57,052 7.09%
Southfield $ 73,346 $ 76,052 3.69%
Waterford $ 58,439 $ 59,918 2.53%
Mt Pleasant $ 49,180 $ 50,090 1.85%
Jackson $ 62,916 $ 63,136 0.35%
Flint $ 63,854 $ 63,497 -0.56%
Muskegon $ 57,932 $ 57,168 -1.32%
Lansing $ 63,353 $ 62,422 -1.47%
Grand Rapids $ 56,124 $ 54,690 -2.56%
Bay City $ 61,366 $ 59,659 -2.78%
Mt Clemens $ 67,683 $ 65,679 -2.96%
Monroe $ 57,152 $ 54,873 -3.99%
Middle Cities Education Association school
districts average teacher salaries (cont.)
2010-11 2015-16 % Inc.

Niles $ 51,737 $ 49,334 -4.64%

Battle Creek $ 53,975 $ 50,127 -7.13%
Saginaw $ 56,092 $ 51,838 -7.58%
Wayne-Westland $ 64,108 $ 58,522 -8.71%
Romulus $ 69,082 $ 61,540 -10.92%
Port Huron $ 69,050 $ 59,448 -13.91%
Garden City $ 73,648 $ 62,985 -14.48%
Hazel Park $ 68,216 $ 57,846 -15.20%
Dearborn $ 74,029 $ 59,530 -19.59%
Ypsilanti $ 61,520 $ 49,417 -19.67%
Albion $ 53,080 $ 37,664 -29.04%
Westwood $ 78,222 $ 54,197 -30.71%
Pontiac $ 73,819 $ 40,328 -45.37%

Average -8.23%
 Kalamazoos teacher salary schedule compares
favorably to other Kalamazoo County local school
districts
2016-17
KPS Rank

BA Salary Schedule 1st of 9 Districts for 12 Salary Steps

2nd of 9 Districts for 18 Salary Steps

MA Salary Schedule 1st of 9 Districts for 7 Salary Steps

2nd of 9 Districts for 23 Salary Steps

MA + 30 Salary Schedule 1st of 9 Districts for 9 Salary Steps

2nd of 9 Districts for 20 Salary Steps
3rd of 9 Districts for 1 Salary Step
KPS maintains a fund balance that is
fiscally responsible, but not
excessive.
 End-of-Year Fund Balance as a Percentage of Expenditures and Outgoing Transfers

16.50%
16.00% 15.40%
15.50% 15.00%
14.70%
15.00%
14.50%
13.70% 13.70%
14.00%
13.50% 13.10%
12.50% 12.50% 12.70% 12.70%
13.00% 12.40%
12.50%
12.00% 11.40% 11.60%
11.50% 10.90% 10.88%
11.00% 10.60% 10.48%
10.50% 9.80% 9.80%
10.00% 9.35% 9.29% 9.25% 9.34%
9.20% 9.18%
9.50% 8.90%
9.00% 8.47% 8.37% 8.33% 8.45% 8.49% 9.01%
8.16% 8.13% 8.10%
8.50% 7.82%
7.52% 8.80%
8.00%
7.50% 6.99% 6.96%
7.00% 7.40%
6.50% 5.74% 5.82%
6.00%
5.50%
5.00%
4.50% 3.84% 3.92%
4.00%
3.50%
3.00%
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Average State of Michigan per Bulletin 1011

Average Student Population 10,000-19,999 Per Bulletin 1011

Kalamazoo Public Schools

The June 30, 2017 fund balance is
expected to approximate the June
30, 2016 fund balance, with the
percentage of expenditures and
transfers decreasing from 8.8% to
slightly less than 8.5%.
 School districts, including KPS,
are heavily employee intensive.
 Budgetary General Fund Expenditures
Kalamazoo Public Schools
2016/17

Contracted Services 6.1%

Employee Salary and Benefits
84.4%
Other Expenditures 9.5%
Continued inadequate state revenue
to local school districts has greatly
restricted the ability of local districts
to compensate employees.
 State revenue
Districts in the State of Michigan are heavily dependent on the state
for revenue.
In fact, eighty-seven (87) percent of our budgetary general fund
revenue is generated through the school aid act.
The most significant source of budgetary general fund revenue is a
per student foundation allowance.
The state legislatures increases in the foundation allowance of the
last 12 years have not come close to keeping up with inflation.
 Per Pupil Foundation Revenue (Incl. Small Class Size) Compared to Inflation
(Cumulative Change)
Kalamazoo Public Schools

25.00%

22.26%
21.22% 21.36%

20.00% 19.28%

17.56%

15.18%
15.00%

11.65%
10.24%
9.85%
10.00%

6.17%
5.13% 5.13%
5.00% 3.87%
3.23% 3.09%
2.59%
1.14%
2.78%
0
-0.56%
0.00% -1.22%
-1.92% -1.92%

-5.00%

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Foundation Revenue Inflation