This story keeps rearing its head. Share this explanation from TRS widely:

 School Districts “Picking Up” Members’ TRS Contributions

Issue: The Illinois Policy Institute on October 13, 2011 released a study of the school districts in Illinois that “pick up” or pay the 9.4 percent teacher contribution for their TRS-covered employees. IPI research indicated that about half of the 867 school districts in Illinois “pick up” all or part of the teacher contribution. The IPI concluded that when districts pick up all or part of the teacher contributions, that means teachers are not paying the contribution. The IPI says this amounts to $400 million “extra” that taxpayers must pay every year to TRS that teachers should be paying.

Answer: This is an incorrect view of how teacher contributions are paid by TRS members. Illinois taxpayers are not paying an “extra” $400 million for teacher pensions and teachers are not being spared the responsibility of paying $400 million in contributions.

Teacher contributions to TRS are deferred income. The TRS contributions are part of a teacher’s overall compensation package along with their take-home pay. The TRS contribution is designed to come back to the teacher later in life as a retirement benefit.

When a school district “picks up” the contribution, the money still comes from the teacher’s total compensation package. The “pick up” is in reality only a difference of when the district deducts the contribution from the teacher’s salary – either before taxes are deducted or after taxes are deducted. Teacher unions for years have negotiated this point with school boards as part of overall salary and benefit packages for teachers. There is an income tax savings for teachers if the contribution is deducted pretax.

In practical terms, no teacher writes TRS a check every month and mails it, so no teacher in Illinois directly “pays” TRS. All contributions from every teacher in every school district are deducted from paychecks by the school districts and sent to TRS in one lump sum. Member contributions to TRS in fiscal year 2011 totaled $909.6 million.

The IPI conclusion that taxpayers are paying “extra” for the pick-up rings false because, in the end, taxpayers pay for everything in a school district, including all teacher salaries. There is no “extra” $400 million.

If you carry the IPI’s conclusion about TRS contributions to other examples you’ll realize that everyone who participates in Social Security hasn’t paid their share of federal Social Security taxes because their employer is paying the tax for them. No one writes a check to Social Security when they get paid. The FICA tax is deducted from the paycheck. It’s the same thing for TRS contributions. One of the reasons Illinois teachers don’t contribute to Social Security or get a Social Security benefit is because they make the same type of paycheck contribution to TRS.

The attack on public employee pensions effects more than just teachers.

http://www.weareoneillinois.org/news/union-coalition-launches-campaign-for-fair-solution-on-pensions

Danville School Board member Steve Bragorogos a “Chicken Little”?

After reading Steve Bragorogos’ letter to the editor from Sunday’s Commercial-News we are left to wonder if he was hit on the head with an “acorn” recently.

“The sky is falling on District 118”, says Mr. Bragorogos.

“But how do you know”, came the reply.

“Well, the federal government has a large national debt”, says Mr. Bragorogos.

“But the federal government has never provided a substantial amount of District 118’s funding”, we say.

“But the State of Illinois is corrupt and engages in financial trickery and shenanigans”, says Mr. Bragorogos.

“Is this something new”, we ask?

“We cannot afford to pay teachers and ESP’s like before, the sky IS falling”, cries Mr. Bragorogos!

“But District 118 has INCREASED its bank accounts by almost 100% since 2006,” we answer. (Data from the Illinois State Board of Education shows that District 118 fund balances have grown from $10M to over $18M.) ftp://ftpfinance.isbe.state.il.us/AFRProfile/2011/54092118024.pdf

“Health insurance costs to the District have remained nearly constant since the DEA made concessions in 2006. The salary schedule hasn’t increased since 2006. And the money the District stocks away in its rainy day funds continue to increase each year”, we explain.

“ YOU’RE NOT LISTENING TO ME! The sky IS falling”, continues Mr. Bragorogos.

“Ah, but we have been listening. The DEA has no intentions of following a Chicken Little. You know what happens to those that follow Chicken Little, don’t you?”

If you have not already heard via a building meeting, please read on…

The leadership of the DEA is asking that the DEA members get involved by making phone calls to legislators.

The following schools need to make their calls on the days listed below:

Monday: Meade Park, Edison, Northeast

Tuesday: East Park, South West

Wednesday: South View, Garfield, Cannon

Thursday: Danville High School

Friday: North Ridge, Liberty

Here is the script that has been put together by the IEA:

http://www.danvilledea.org/wp-content/uploads/2012/04/2012_Script.pdf

There are a few other documents that you may want to read through before you make your calls as well:

http://www.danvilledea.org/wp-content/uploads/2012/04/Why-TRS-is-Sustainable-1-27-12.pdf

http://www.danvilledea.org/wp-content/uploads/2012/04/TRIPfactsheet1-27-12.pdf

http://www.danvilledea.org/wp-content/uploads/2012/04/SURSSustainableFactSheet.pdf

http://www.danvilledea.org/wp-content/uploads/2012/04/IEA_Graduated_Tax_Flyer.pdf

http://www.danvilledea.org/wp-content/uploads/2012/04/Graduated_Income_Tax_Fact_Sheet.pdf

From the Commercial News:

McKiernan explained to Twidwell the district “can move money from the working cash fund” to prop up some of the other funds in the budget, such as the underfunded transportation fund, the education fund and operations and maintenance fund, however, the transferred money “can’t be used for salaries or recurring expenses.”

While it is true that the statute says that transferred funds must be for a “one time or non-reoccuring costs” it is also true that funds may be transferred from the four (ED, O & M, Transportation and Working Cash) funds. What is misleading is that the district’s stated rationale for maintaining a fund balance of 20% is predicated on an emergency. By definition an emergency would be a non-reoccuring cost. Also, administration never made it clear if it was 20% of the ed fund or 20% of all four funds. The statute is clear that transferring funds for the purposes of a one time, non-re-occuring emergency is legal. If the administration is telling the public that they need to maintain a fund balance in case of emergency then they should be counting the monies in the four funds. That number is closer to $20M not $10M.

In addition, by creating the impression that the district must keep high fund balances in case of emergency without mentioning that the district has the legal right to borrow money in the short term is deceptive. In addition to short term borrowing, a school district may incur long term debt in the form of bonds. The fact is that the district appears unwilling to tell the public (using their own numbers) that the district’s fund balances have grown from $10M in 2007 to $20M today. That is a 100% increase in five years. Yet, they cut $.6M in teaching positions because the district is broke. Puzzling.

According to the most recent Annual Financial Report (2010) the District reported the following fund balances:

Education fund: $17.6M

O & M Fund: $3.5M

Working Cash Fund: $1.4M

Transportation fund: $0

According to Heather McKiernan, the estimated 6/30/12 fund balances would still be over $16M combined in the Ed and O & M funds.

No one denies that state funding is a concern but we can think of no reason for the district administration to exaggerate the district’s financial condition other than to game the collective bargaining process.

This the link to District 118′s 5 year annual financial profile at ISBE. You can see that the District’s fund balances have climbed from $10M in 2007 to $20M  in 2012.

ftp://ftpfinance.isbe.state.il.us/AFRProfile/2011/54092118024.pdf

President – Robin Twidwell

Vice President – Heath Blumenstock

Secretary – Cindy Redman

Treasurer – Jeremie Smith

“In 2011, the lives of Wisconsin teachers changed overnight. Wisconsin is not alone. Attacks on collective bargaining rights have taken place in Indiana and Ohio, too, as have attacks on tenure, retirement and other important issues. In Wisconsin, contracts were replaced with highly restrictive policy handbooks. You can make sure it doesn’t happen here by being politically active, building community relations and developing a plan. We can learn from Wisconsin.”

It is truly sad to think that this could happen in Illinois. Take a few minutes to wattch the video.

http://www.ieanea.org/featured/voices-of-weac/

Robin Twidwell — President

Serving as the DEA President these last four years has been an incredible educational experience.  I would like to serve in this capacity for two more years in order to guide our membership through the enormous changes that will be taking place in our district during this time.  I am incredibly proud to represent such a hard working, dedicated staff.  I hope you will give me the opportunity to continue serving as your president.

Matt Thompson 

I would like to offer my name for consideration as DEA president. We are having an election next week and I think it is important that the membership of the DEA have a choice when they vote for association officers. I am a tenured teacher with 5 years of experience in District 118. During the last five years I have also served as a building rep. every year. I have been an IEA member and full time teacher for 12 years. I served as treasurer of the Creve Coeur Education Association for five years before coming to Danville. It is also my privilege to serve as one of the DEA IEA region council representatives.  Our association needs more balance on the executive committee and I think it is critical to have an elementary teacher on the committee. It is important to note that while I will bring elementary teacher issues to the table, I also worked as a middle school teacher for over half of my teaching career and am equally familiar with issues related to their working conditions as well.  Please consider voting for Matt Thompson, East Park Fifth Grade Teacher, for President of the DEA.

Derrice Hightower 

I have been teaching in Danville District #118 for 10 years. I have taught at Garfield and Liberty Elementary Schools. I am interested in becoming the Vice President of the Danville Education Association. I am very concerned about the issues that face our District. I want to do all that I can to ensure that staff and students have the best working and learning conditions. I have served on the Negotiations Team for 3 contracts. I have served as the Elections Chair for 2 years. I was most recently elected to represent the Danville Education Association in Washington, D.C. at the NEA-RA. I will continue to work to make Danville District #118 a great place to work and learn.

Heath Blumenstock 

I have been a member of the faculty at District #118 for the past thirteen years. During my time in the district, I have become a very active member of the Danville Education Association. Currently, I am the membership chair of the DEA, but I have also served on the negotiations team for our last contract as well as being a building rep for the DEA for seven years. During our last contract negotiations, I felt the need to become more involved by running for a leadership position in the association. I hope that you consider me for the position of vice-president in the upcoming election.