Waukesha Non-Union Compensation Contract

Changes help schools cut costs

Non-union employees to pay more for health care, but teachers say
troubles go beyond quick fix

By AMY HETZNER
ahetzner@journalsentinel.com

Posted: Sept. 19, 2007

Waukesha - As it continues to negotiate contracts with eight employee
groups, the School Board has approved health insurance changes and
modest salary increases that are expected to reduce overall
compensation costs for non-unionized employees this school year.

Other employees will hopefully take note, School Board President
William Baumgart said.

"This was a small group of people in comparison to the total
district," Baumgart said of the approximately 70 administrators,
secretaries and technical staff covered by the settlement. "We feel if
we're going to put emphasis on saving money in employee costs, we're
going to have to do it at all levels. And this will be the first one."

Under the one-year settlement the School Board approved last week,
non-unionized employees will pay higher deductibles, office
co-payments and drug costs for their health care. They also will
continue to pay 5% of their health insurance premiums.

Salaries will increase by 2% this school year for the pool, except for
assistant principals who will receive a 1% pay boost. Overall, the
changes are expected to reduce costs for covered employees by 0.63%,
or $31,647, less than what the district spent last school year, said
Erik Kass, executive director of business services for the district.

Compared with the traditional 3.8% annual package increase that
employees have received in the past, the district will save about
$220,000 on the deal, he said.

"These are extraordinary times in Wisconsin public education, and we
need to find ways to close that expenditure-revenue gap,"
Superintendent David Schmidt said. "Although this isn't going to close
that gap in an extraordinary way, every little bit helps."

But Ken Sajdak, one of the negotiators for Waukesha's teachers union,
gave little indication that its teachers - by far, the largest
employee group in the district - would follow suit.

The problem facing the district is that state-imposed revenue caps
aren't rising enough to keep up with annual cost increases, said
Sajdak, a teacher for the district's virtual high school, iQ Academies
at Wisconsin. Health care changes might help bridge that gap for one
year, but "that's not going to help the district in the long run," he
said.

"That's going to give them a couple pennies they can spend this year
and then next year, they're going to be in the same ballpark," Sajdak
said.

The board approved the compensation package for its non-union
employees on a 7-2 vote. Board member Frank Finman said he voted
against the settlement because he felt the district's financial
situation, and cost comparisons to administrative salaries in nearby
districts, necessitated keeping salaries flat.

Board members eliminated the equivalent of 62 full-time staff
positions for the current school year to avoid a $3.4 million
shortfall, and the district faces a possible $3.5 million's worth of
program reductions for 2008-'09. District officials have blamed the
financial situation on the gap between revenue caps, which rise about
2% a year, and employee costs that increase 3.8% annually.

"We're in a financial crisis and I, quite frankly, am sick and tired
of gutting programs," Finman said. "So I'm going to look everywhere I
can for every nickel I can to run the district more efficiently."

Board member Ellen Langill, who also voted against the settlement with
non-union employees, could not be reached for comment.

The board approved lower salary increases last week than had been
discussed with administrators and other non-union staff employed by
the district, Baumgart said. Because the employees are not part of a
union, the board does not have to reach agreement with the group for a
final settlement.

The health insurance changes are scheduled to go into effect Oct. 1.
Salary increases will be retroactive to July 1.