SBUSD PROPOSES $22 MILLION TOTAL COMPENSATION PACKAGE TO SBTA
EQUAL TO A 19% RAISE OVER TWO YEARS
8% SALARY INCREASE FOR 2024-25 AND 4% SALARY INCREASE FOR 2025-26
DISTRICT-PAID 75% OF MEDICAL PREMIUMS UNDER ANY PLAN
CLASS SIZE REDUCTION PLACED PERMANENTLY IN CONTRACT
Introduction
This is Santa Barbara Unified School District’s (SBUSD) second Negotiations Update for 2024-2025 successor contract negotiations between the District and the Santa Barbara Teachers Association (SBTA). The District will distribute the Negotiations Update after meetings with SBTA to inform our community on the progress of negotiations.
The parties met for their second negotiations session on November 28, 2023, a summary of which is below.
The District is interested in reaching a fair settlement in a timely manner and to further this goal today, the District brought forward a proposal it believes can form the basis for an agreement. The District is intent on not engaging in incremental bargaining and put forth a proposal to bring an early settlement.
SBUSD Proposes $22 Million Total Compensation Package To SBTA - Equal to a 19% Raise Over Two Years
SBTA’s initial proposal of November 15, 2023 was for a 20% wage increase for 2024-25 and permanent class size reduction. Together, this proposal was estimated to cost $26.2 million.
In response, the District proposed a total compensation increase amounting to about $22 million over two years (2024-25 and 2025-26) for salary increases, an increase in the District’s contribution to medical benefits, and retaining reduced class sizes on an ongoing basis. Based on the cost of a 1% raise for the SBTA bargaining unit, the District’s total compensation package is estimated to be equal to a 19% raise over two years.
8% Salary Increase For 2024-25 And 4% Salary Increase For 2025-26
The District’s wage proposal is as follows:
SBUSD Counter Offer = $12,000,000
- 2024/2025: 8% salary increase effective July 1, 2024
- 2025/2026: 4% salary increase effective July 1, 2025
- 2026/2027: Contract reopeners for Article IV – Wages
The District provided SBTA with data showing that the 2023-24 increase alone would result in SBUSD ranking first out of six comparison unified districts in both beginning and maximum scheduled salaries:
Source: District Salary Schedules on Websites
The District also noted that the latest projections show the State Cost of Living Adjustment (COLA) for 2024-2025 to be around 1% (the prior projection was 3.94%). While the State’s projected COLA is 1%, the District’s proposal for that same year is for an 8% salary increase.
District-Paid 75% Of Medical Premiums Under Any Plan
As summarized in SBUSD’s Negotiations Update #1 (November 15, 2023), currently the District covers 40% to 60% of medical benefits premium costs, depending on the plan chosen by employees. Also, under the current contract, the District would cover 1% of premium increases absent a new agreement.
Under its new proposal, effective July 1, 2024, the District would cover 75% of medical benefit premium costs (including future premium increases) regardless of the particular plan chosen.
The District shared data on the impact of this proposal which would reduce monthly employee out-of-pocket costs as follows (the range depends on the plan chosen):
- $102 to $406 (employee-only coverage)
- $340 to $736 (employee plus one)
- $371 to $937 (family)
The above amounts are paid on a ten-month basis, so the annual savings are $1,020 to $4,060, $3,400 to $7,360 and $3,710 to $9,370.
The estimated District cost of this proposal in 2024/2025 is $3,081,422 to cover only the SBTA bargaining unit. This would be an ongoing cost that would increase by $427,812 in 2025/2026, making this a total of $3,509,234
Class Size Reduction Placed Permanently In Contract
For the last three years, the District and SBTA have agreed to year-to-year side letter agreements calling for reduced class sizes. SBTA has proposed to include the side letter language – and in some cases to further reduce those numbers – permanently in the negotiated agreement.
The District agreed with SBTA to place class size reduction permanently in the contract and proposed to continue the class size reduction numbers contained in the latest side letter agreement. These reduced class sizes have been funded by one-time funds which are expiring. This means the $6.2 million ongoing cost to maintain reduced class sizes would have to be paid out of regular District funds and represents a new, ongoing $6.2 million expenditure for the SBTA bargaining unit.
Next Steps:
The third negotiation session is on December 12. Additional dates have been set for January 11th, January 19th, and February 6th.
Dr. John Becchio, Assistant Superintendent, Human Resources
Kim Hernandez, Assistant Superintendent, Business Services
John Schettler, Executive Director, Student & Family Services
Ann Peak, Director, Human Resources
Dare Holdren, Principal, San Marcos
Jennifer Foster, Principal, La Colina
Kelly Fresch, Principal, Adams
Gregory J. Dannis, Legal Counsel