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By Barton Lorimor Email | @bartonlorimor
* Lots of ways to look at this…
HB 4272, if passed, would force the state to fulfill its moral and constitutional commitment to properly funding public education by providing a continuing resolution for General State Aid and directing 55 percent of all new state revenues toward education. The bill would also implement a responsible pension cost shift carefully structured to invest all savings directly into General State Aid. This measure would result in an immediate infusion of $200 million for the Chicago Public Schools.
We’re told that State Rep. Christian Mitchell, a Democrat from Chicago, is going to introduce a bill that proposes a “cost shift,” meaning all downstate and suburban school districts would pay their own teacher pension costs – as opposed to having the state pay those costs, as it does now.
Chicago Public Schools said it will quit paying the bulk of pension contributions for more than 2,000 nonunion workers, a move that lays groundwork for the district to request similar concessions from the Chicago Teachers Union and other employees with labor contracts.
At the end of the month, affected employees will start to pick up an additional 2 percent of their pension costs, saving the district about $3 million, officials said. The next year, those employees will pay an additional 2 percent and, the following year, another 3 percent.
Mayor Rahm Emanuel called the plan “a path” he hopes teachers will agree to follow.
Karen Lewis said earlier this week such a shift would likely prompt CTU to strike…
“It is a pay cut. Seven percent is huge,” Lewis said.
On the Claypool plan to reduce the contribution gradually, the union wrote Wednesday: “Whether this reduction is done at once or in phases, it still amounts to the same thing - a pay decrease at a time when workloads have increased by more than 20 percent.”
Mayor Rahm Emanuel - who appointed Claypool last month - says the CPS pension pickup is outdated.
“What worked 30 years ago, 40 years ago is different, we’re in a different position,” Emanuel said.
CPS reportedly has asked state lawmakers to pass a bill to remove the issue from CTU negotiations, in effect ordering Chicago teachers to pay all of their pension costs.
Powerful House Speaker Michael Madigan said in theory, he opposes such interference.
“Repealing or resetting collective bargaining reduces wages and the standard of living of middle class families,” Madigan said.
…Adding…
I missed this before posting, but Lewis has changed her rhetoric a bit. Via Chicago Tonight…
I understand the notion of phasing it in. If we want to be more like the private sector, then we need to be treated more like the private sector, compensation-wise.
It’s the members’ call, and that’s something we haven’t had a conversation about yet. We haven’t talked about that because it was never brought to us that way. But we do not want, clearly, a 7 percent [pay cut]. One of the other ways to deal with that is they always bring in new people. How do you do that with new people? How do you do that with people who are five years from retirement? What do you do with people who are 10 years away?
Robert Bloch, the general counsel of the teachers union, says CPS hasn’t discussed unilaterally phasing out the pension pickup and disputes the view that the expired contract would allow it.
In the past, CPS continued to pay the pension pickup after a contract had expired, undercutting CPS’ interpretation, said Bloch, who is also a partner in Chicago-based law firm Dowd Bloch Bennett & Cervone. In particular, CPS under the Emanuel administration made the payments during the tumultuous negotiations in 2012.
The language, which has not changed substantively in more than 30 years, has not been interpreted by a court or arbiter, he said, making past practice crucial.
“They can’t just take that away,” added Jackson Potter, staff coordinator at the teachers union. “It would be a potentially unfair labor practice.”
posted by Rich Miller
Thursday, Aug 13, 15 @ 12:04 pm
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I would only be in favor of this, if it also included a complete overall on how schools are funded. Right now the funding formula completely favors chicago, which would make this fair to struggling districts downstate.
Comment by Only if... Thursday, Aug 13, 15 @ 12:07 pm
Well, if they do not want to pay into pensions, they can always just cut salaries.
However, that would require Democrats to actually stand up to a union and engage in tough negotiations. So far, we haven’t seen any evidence to suggest that’s possible.
Comment by Gooner Thursday, Aug 13, 15 @ 12:12 pm
Rahm needs to raise the low tax rates in Chicago.
Comment by DuPage Thursday, Aug 13, 15 @ 12:16 pm
Cost shifting pension costs to local districts is a sound financial decision.
Comment by Apocalypse Now Thursday, Aug 13, 15 @ 12:51 pm
When blago took back the pension pick up, the unions negotiated equivalent raises for the employees.
Comment by Huh? Thursday, Aug 13, 15 @ 1:15 pm
Sometimes a strike is good.
Comment by Keyser Soze Thursday, Aug 13, 15 @ 1:19 pm
The pension systems, the boards managing them and all the problems that go with them are controlled by the state. So it does not make any sense to have the local school boards pay for the pensions systems when they do not have any control over them.
Comment by Makandadawg Thursday, Aug 13, 15 @ 1:19 pm
==So it does not make any sense to have the local school boards pay for the pensions systems when they do not have any control over them.==
They decide what the pay is going to be so they sort of do have some control over them.
Comment by Demoralized Thursday, Aug 13, 15 @ 1:24 pm
Each CTU contract explicitly states “This pension pick-up will not constitute a continuing element of compensation or benefit beyond the current contract.”
How is taking away something that expired an “unfair labor practice”?
Comment by nixit71 Thursday, Aug 13, 15 @ 1:34 pm
Why not a phase in for Chicago teachers…all new give 7% from the getgo and the current go 2% for he next 3 years.and 1% the final year…they are already the highest paid in the state and maybe the country.
Comment by scott aster Thursday, Aug 13, 15 @ 1:36 pm
=They decide what the pay is going to be so they sort of do have some control over them.=
I think in both cases there is a limited amount of control.
-Collective bargaining does limit the district (employers) control over compensation. We simply cannot say you are going to get paid x dollars with impunity.
-While schools, through collective bargaining, have some control over pay we do not set the benefit percentage and have not been party to any of the deals made in the legislature. These “deals” the increased benefits were almost always opposed by the school board association and, at times, the administrators association. The IEA and IFT definitely get more consideration from the legislature than the aforementioned groups.
Comment by JS Mill Thursday, Aug 13, 15 @ 1:37 pm
=highest paid in the state and maybe the country.=
Incorrect
Comment by JS Mill Thursday, Aug 13, 15 @ 1:39 pm
==they are already the highest paid==
Even if they were, and I don’t think they are, why does it matter?
Comment by Demoralized Thursday, Aug 13, 15 @ 1:43 pm
The pension pick-up equates to a 3.75% increase in salary over a 3 year contract. So if the end goal is to keep CTU at the same compensation level, yet eliminate the pick up, they could do the following:
- 1% yearly raises
- Rollback pension pick-up over 3 years from 7% to 4% ,2%, 0%
- Keep existing step/ladder pay increases
The net payout over the course of such a 3-year agreement comes out slightly less than no raise and continue the pick-up. So it’s pretty much a wash. Then, come next contract, there is no pick-up, everyone’s on the same page, and you negotiate from scratch.
Comment by nixit71 Thursday, Aug 13, 15 @ 1:44 pm
I remember the cost shift being discussed before. Wasn’t Madigan involved?
Comment by Just a squirrel trying to get a nut Thursday, Aug 13, 15 @ 1:59 pm
Demoralized, it matters because when times are tight, we should look at salaries.
If the salary for one classification of employee is significantly higher than standard, we should ask why and potentially reduce that salary until it is more in line with the standard.
For what it is worth, my understanding is that they are among the highest paid for urban areas. I understood that the latest contract was going to put them among the top three.
Comment by Gooner Thursday, Aug 13, 15 @ 2:00 pm
@JSMILL
=While schools, through collective bargaining, have some control over pay we do not set the benefit percentage=
C’mon, JS, of course you do. Local School districts establish how much of the employee health care costs the taxpayers pick up. That’s a benefit. Local schools determine how much of the employee portion of pension contributions are picked up by taxpayers. That’s a benefit. There’s no requirement that local districts allow early retirements that add dramatically to the actuarial cost of the pension. The 11.5% and 23.5% contributions for each early retirement year is a pitiful fraction of the additional cost of the pension that you’re currently dumping on state taxpayers. The local districts can engage in “pension spikes” by loading up on extra pay (coaching and summer school and other means of boosting pension basis income in addition to the 6% for four year unfair raises) prior to retirement.
Regarding your claim that “local control” is very limited for cost control “without impugnity”, would you then support prohibiting public employee strikes as is the case in all but 8 other states?
Comment by Arizona Bob Thursday, Aug 13, 15 @ 2:02 pm
==If the salary for one classification of employee is significantly higher than standard, we should ask why and potentially reduce that salary until it is more in line with the standard.==
So in other words if you make more than average you shouldn’t so we need to reduce it so you are average. I love it when others are so gung ho on reducing the pay of somebody else. I’m not a Chicago teacher. I don’t have a dog in this fight. But I’m certainly not going to argue that they should get their pay cut just because they make more than average. That’s an asinine argument.
Comment by Demoralized Thursday, Aug 13, 15 @ 2:03 pm
Arrrrghhh! Fine. Stiff the Chicago teachers again. Keep the corporate welfare. We can’t afford to pay $27,000 pensions because we need to give Sears or CME or Exelon hundreds of dollars or they say they will close up shop.
Even those of you who suggest 1% pay raises and eliminating the “pension pick-up” (euphemism to ignore the fact that the Chicago teachers agreed to help out the city by basically agreeing to a salary freeze), are essentially asking the teachers to take another salary freeze.
How many of you would agree to a 7 year salary freeze? Corporate profits are up. Executive salaries are up. All Illinois taxpayers just recieved a tax break.
Yes, let’s put that on the back of the Chicago teachers… Then let’s move downstate. Let’s hit all districts, all teachers with the bill to pay for the tax give-a-ways.
And when every last teacher is making poverty line wages, we’ll still be in this mess, because we’re still not paying our bills. We’re just redistributing the wealth from the few (teachers)to the fewer(1%ers).
I wonder who we will vilify next?
Comment by Leading inDecatur Thursday, Aug 13, 15 @ 2:28 pm
“give Sears or CME or Excelon hundreds of MILLIONS”
Comment by Leading inDecatur Thursday, Aug 13, 15 @ 2:29 pm
= loading up on extra pay (coaching and summer school and other means of boosting pension basis income in addition to the 6% for four year unfair raises) prior to retirement.=
Further demonstrates how little you know.
=There’s no requirement that local districts allow early retirements that add dramatically to the actuarial cost of the pension.=
Since you have no data, I will share some. 1.3% of total pension issue. So not “dramatically” anything. And, this is definitely going way (a good thing).
We don’t have a 6% bump in our contract. So, what ever fella.
=would you then support prohibiting public employee strikes as is the case in all but 8 other states?=
Tommy has two scoops of ice cream and I have one! That is your argument? Very enlightened. Rather than base support or opposition for something on whether “everybody else is doing it” I base my decisions on merit. At the very least those that are important.
To your question- no. Why? I do not need to. I have never had a teacher’s strike. And, kind of a straw man issue. There are 800 plus school district in Illinois and there were less than 10 strikes (I count 4 but probably forgot a few). It is not a real issue. It is obfuscation.
There are things I would like to change about the bargaining process, but all things considered, for a district like ours it is a good process. Given your vast experience in everything (conveniently), I am sure your experience in collective bargaining in education is different.
Comment by JS Mill Thursday, Aug 13, 15 @ 2:48 pm
==How many of you would agree to a 7 year salary freeze?==
1) The CTU contract 2012-15, per Trib: The tentative deal gives teachers a base salary increase of 3 percent this year, followed by 2 percent raises in each of the following two years.
2) Step and lane salary increases remained (2% value)
3) Pension pick-up remained (3.75% value)
That’s a 7-9% yearly increase. That’s more like an Ecuadorian freeze than a wage freeze.
Comment by nixit71 Thursday, Aug 13, 15 @ 2:50 pm
=you’re currently dumping on state taxpayers.=
Another Pulitzer moment for you. ILGA determines the pension, things like Early Retirement Option (opposed by the school management alliance during the last re-authorization). So it isn’t “me” personally or professionally that is dumping anything on anyone.
That is like me excoriating you for dumping all the Roosevelt Social Security mess, Nixon corruption, and Reagan debt on me and my generation. Unless you were advising them? Then maybe… /s
Comment by JS Mill Thursday, Aug 13, 15 @ 2:52 pm
Lets just blame teachers for everything and take away their professional livelihood. Is that where society is heading too?
Do teachers who have various masters and other degrees get six figure salaries as do their private sector with equivalent degrees? Do teachers get matching 401k? Do teachers get stock options? Do teachers get yearly bonuses? Do teachers get sign up bonuses or moving allowance? Do teachers get social security?
IT’S NO TO EVERYTHING.
And yet the only thing they have is a pension that the city and governor wants to take away from them to correct the errors of past mayors nd the CPS board? Are you kidding me how fair is that?
And for those critics who are claiming teachers need to pay their fair share. Well guess what? They already did! Teachers in Chicago gave up a 4% raise in 2012 that was taken away by the mayor. Teachers were supposed to get a 3% raise this coming school year that also was taken away. Do the math, that’s already 7% of their salary that was ripped from them. Now the mayor and governor wants an additional 7%. DREAM ON!
This pension pickup scene is a Trojan horse to strip hardworking men and women of their collective bargaining rights so that the robber barrons can revert to total control over their employees.
Comment by R U Kidding Me! Thursday, Aug 13, 15 @ 2:56 pm
Funny how CPS ordered non-union workers to start picking up their fair share of pensions and expect teachers to do the same this coming contract.
BUT PRINCIPALS AND ADMINISTRATORS WHO ARE MAKING OVER $140,000 with FULL PENSIONS WILL REMAIN THE SAME AND NOT HAVE TO PICK UP THEIR ENTIRE PENSION COSTS!
Does anyone see something wrong with that example?
Comment by 2CeNtS Thursday, Aug 13, 15 @ 3:01 pm
What is really breaking the bank in CPS ?
Pension holidays, Charter schools,
TIF spending of tax money for private investments,
No money back from toxic swaps from banks,
Corporate welfare, Low realestate taxes in Chicago
Comment by Enviro Thursday, Aug 13, 15 @ 3:06 pm
Yes, teachers got a small raise last time. My wife went from working from 8:00 to 3:30. To working 7:30 to 4:15. She also got about 15 more days added onto the school calendar. For this, she got a 7% increase spread over 3 years, which usually wouldn’t have been enough to keep up with the cost of living. The mediator that CPS and the union agreed on called for like a 25% pay increase. CPS is not the highest paid district in the state or even the Chicago area. I know of at least a dozen suburbs that pay more.
Comment by Cathartt Representative Thursday, Aug 13, 15 @ 3:11 pm
=BUT PRINCIPALS AND ADMINISTRATORS=
Divide and conquer. Rahm loves you sooo much.
You are always free to move to admin and bargain without the help of a union. And, I wouldn’t be so sure about the pension part.
I don’t know that for a fact, but I would venture a guess that they with their bazillion (snark) dollar incomes will get pinched too.
Comment by JS Mill Thursday, Aug 13, 15 @ 3:13 pm
Nixit,
You quote a tentative agreement from the Trib article… What really happened? What has been taken away since then?
Comment by Leading InDecatur Thursday, Aug 13, 15 @ 3:13 pm
==Teachers in Chicago gave up a 4% raise in 2012 that was taken away by the mayor.==
The CTU contract 2012-15, per Trib: The tentative deal gives teachers a base salary increase of 3 percent this year…
Sounds like they got 3% instead of 4%.
==Teachers were supposed to get a 3% raise this coming school year that also was taken away.==
Per the same Trib article: T…which will give teachers an average pay raise of 17.6 percent over four years if the contract is extended an extra year.
The contract extension was optional.
80% CTU members ratified this deal, a deal that explicitly stated “This pension pick-up will not constitute a continuing element of compensation or benefit beyond the current contract.” Don’t yell at me…yell at 4 out of every 5 Chicago teachers.
Comment by nixit71 Thursday, Aug 13, 15 @ 3:28 pm
It is time for vouchers in Illinois. I can’t think of one compelling reason not.
Comment by Taxpayer Thursday, Aug 13, 15 @ 3:36 pm
Taxpayer,
Some of us don’t think our tax dollars should support religious schools. We consider that a compelling reason against vouchers.
Comment by Gooner Thursday, Aug 13, 15 @ 3:40 pm
@JSMILL
= loading up on extra pay (coaching and summer school and other means of boosting pension basis income in addition to the 6% for four year unfair raises) prior to retirement.=
Further demonstrates how little you know.=
Right. I’ve personally seen public school districts hired to provide “supervision” jobs for cleaning up the school over the summer under school summer school contracts. I’ve seen teachers just start picking up summer classes once they got into the pension basis years.
JS, I can’t say what you’re doing in your district, largely because you won’t tell us what district that is, that’s fine. Just don’t bring your district into the argument against state basis unless you’re willing to declare where it’s from.
If course, I’m sure you know about those “end of career” abuses. I’m sure you know a lot, JS. You simply don’t give an honest, balanced description of what you know. Ridicule and belittling is so much easier, isn’t it?
=Since you have no data, I will share some. 1.3% of total pension issue. So not “dramatically” anything.=
Source, please? Does that include the payments from younger teachers towards early retirement, making it impossible to deny them that benefit?
Your number may be deceptively low. The “average” TRS pension is under $40K, but the most recent pension for new retirees is over $60K according to the TRS. Many retirees didn’t have the early retirement option. the mores recent retirees do, so that “1.3%” you give no basis for could balloon in very short order.
=To your question- no. Why? I do not need to. I have never had a teacher’s strike. And, kind of a straw man issue. There are 800 plus school district in Illinois and there were less than 10 strikes (I count 4 but probably forgot a few). It is not a real issue. It is obfuscation.=
You are really smarter than that, aren’t you JS? When you’ve got a gun to somebodies head and are robbing them, you don’t need to pull the trigger to get the money. The THREAT to use it gives you power to do the robbery. Strikes work the same way. The THREAT of having one is enough for the board to be extorted. If you don’t understand this, you have no place at a collective bargaining table.
OF course you understand this. Strikes are in the best interests of administrators. When the rank and file rates go up, a rising tide lifts all boats, ESPECIALLY those from well connected admins.
Comment by Arizona Bob Thursday, Aug 13, 15 @ 3:57 pm
==The local districts can engage in “pension spikes” by loading up on extra pay (coaching and summer school and other means of boosting pension basis income in addition to the 6% for four year unfair raises) prior to retirement.==
I have to agree with Arizona Bob on this point. I’m 100% union but this practice should be disallowed.
Comment by CrazyHorse Thursday, Aug 13, 15 @ 4:02 pm
“Some of us don’t think our tax dollars should support religious schools. We consider that a compelling reason against vouchers.”
I think Pell Grants are given to students attending Notre Dame and Georgetown.
Comment by CapnCrunch Thursday, Aug 13, 15 @ 4:10 pm
==by loading up on extra pay==
So that extra work should be done without pay? Is that what you are saying?
Comment by Demoralized Thursday, Aug 13, 15 @ 4:14 pm
JSMill
Save your breath. Don’t respond. Since Bob thinks we are all imbeciles I suggest looking in the mirror and saying: “I’m good enough, I’m smart enough, and doggone it people like me.” You can’t win an argument with somebody who sits on their porch all day long telling others to get off of their lawn.
Comment by Demoralized Thursday, Aug 13, 15 @ 4:19 pm
=The THREAT of having one is enough for the board to be extorted. If you don’t understand this, you have no place at a collective bargaining table=
Never been threatened with that. Ever. Your hyperbolic use of “extort” is pathetic like your claims.
=Strikes are in the best interests of administrators.=
No, I am told they are a nightmare.
While the process may be adversarial at times only s simpleton like you would assume that it all goes like CPS or Evanston. Actually, very few go like that.
=well connected admins.= LOL, yeah, we are all insiders. You know, because there are three of us. LOL. My boat has been lifted really high! Lol.
=Just don’t bring your district into the argument against state basis unless you’re willing to declare where it’s from.=
Very Raunerite of you. And oh yeah, like I am going to share anything personally identifiable with “AZ Bob”.
=Source, please?=
Please see the following citied without source or district or anything else that would allow verification, you never cite any real sources. Look up Madair’s study, use the Google. Rich posted a Crain’s article by Hinz (I think) last week about the ERO in the early 2000’s-
=Right. I’ve personally seen public school districts hired to provide “supervision” jobs for cleaning up the school over the summer under school summer school contracts. I’ve seen teachers just start picking up summer classes once they got into the pension basis years.
JS, I can’t say what you’re doing in your district, largely because you won’t tell us what district that is, that’s fine. Just don’t bring your district into the argument against state basis unless you’re willing to declare where it’s from.
=If course, I’m sure you know about those “end of career” abuses. I’m sure you know a lot, JS. You simply don’t give an honest, balanced description of what you know. Ridicule and belittling is so much easier, isn’t it?=
You ok? Sorry if I hurt your feelings. I guess when you infer I am in on something unethical or illegal, that I am lying/deceptive…for you that is a compliment? Probably not, you are just a hypocrite. I think that is obvious. And a hack.
Comment by JS Mill Thursday, Aug 13, 15 @ 4:25 pm
=It is time for vouchers in Illinois.=
So..specifically explain your statement. How much are the vouchers? How will they be used? System for accountability? Transportation? Downstate?
Or just move if you do not like your local school.
Comment by JS Mill Thursday, Aug 13, 15 @ 4:27 pm
@ Demoralized - I literally spit out my coffee! Priceless SNL quote!
But seriously, it is like playing wack-a-mole, some days I just need the exercise!
Comment by JS Mill Thursday, Aug 13, 15 @ 4:29 pm
==Or just move if you do not like your local school.==
Or seek new employment in a different school district if you do not like your compensation.
Comment by nixit71 Thursday, Aug 13, 15 @ 4:30 pm
Props to AZ Bob for updating his TRS knowledge, but you missed a couple things. The ERO sunsets soon and is unlikely to be reauthorized. Also, a number of the tricks originally grandfathered in to evade the 6% salary cap are now gone.
Comment by Arthur Andersen Thursday, Aug 13, 15 @ 4:30 pm
Gooner,
Not all private schools are religious. For those that are religious, give a lessor voucher.
Also, you do it now with Pell Grants for students at Notre Dame, George Town, Loyola, DePaul…
Comment by Taxpayer Thursday, Aug 13, 15 @ 5:19 pm
Wow!
Comment by Huey Louis Thursday, Aug 13, 15 @ 6:18 pm
=Or seek new employment in a different school district if you do not like your compensation=
True enough.
Comment by JS Mill Thursday, Aug 13, 15 @ 8:27 pm
@AA- to the best of my knowledge the “extra duty” padding was the first “clarification” made after the 6% rule took effect. After that it had to be a change in classification as the only way to exceed 6% increase without additional costs for the pension. That Would mean move to admin, or new district (not a change in classification) for example, would be required. I am sure there are others but can’t think of any at the moment.
Comment by JS Mill Thursday, Aug 13, 15 @ 8:32 pm
Capitol Fax, my early a.m. post is not appearing on the screen. Hope it’s just a technical difficulty, and not censorship of facts.
Comment by See the forest Friday, Aug 14, 15 @ 11:00 am