What happens to school districts in the middle of their collective bargaining agreement (CBA) if this legislation passes?
One of the main reasons we phase this in over time is to keep there from being a large expense all at once and to give districts time to adjust. One half of one percent of payroll a year is in the range of expected budget increases. Typically, districts have projected balances sufficient to absorb this increase. Additionally, from the district projections we have done, many districts realize a savings in the first few years provided there is a reasonable increase in the number of retirements. The legislation does not supersede existing collective bargaining agreements. If a given district does not have resources to pay moderate cost increases brought on by passage of the legislation, there is the option to reopen a bargaining agreement. Failing that, budget cuts or revenue increases would be needed. As contracts expire, this legislation will be taken into account in the course of contract negotiations.
