MUNCIE (WTHR) - A fact finder for Indiana Education Employment Relations Board has ruled in favor of Muncie teachers over drastic pay cuts that Muncie Community Schools have been trying to make over the past two years.
The decision from the fact finder states in part, "It is the conclusion of the Fact Finder for all the reasons stated herein that the MTA LBO (last best offer) and proposed CBA (collective bargaining agreement) for FY 2016 and FY 2017 should be accepted as the Collective Bargaining Agreement of the parties."
Muncie Community Schools wanted teachers to take nearly 23 percent cuts in salary and to pay increases in insurance of thousands of dollars a year. The proposals would have led to Muncie teachers leaving Muncie schools and leaving unqualified teachers in the school system.
The school system responded in a letter sent Saturday, saying, "significant reductions to operating costs" would be necessary, including the closing of schools. (Read the full statement below)
The fact finder agreed with Muncie Teacher Association's position that for nearly two years, "MCS's plan to both reduce salaries and increase insurance costs to teachers appear to present a potentially catastrophic situation for teachers."
Indiana State Teachers Association, President Teresa Meredith, said "Congratulations to MTA President Pat Kennedy, MTA's officers, bargaining team, and MTA members for staying strong throughout this process. Although there are still tough times to come, ISTA stands committed to MTA and its members and will continue to fight for Muncie teachers."
A proposal by the Muncie Teacher Association to increase insurance costs but not have any salary cuts would have save the district nearly $6 Million over a two year period.
In her conclusion, the fact finder stated, "As part of the process involved in stabilizing and rebuilding its financial status, MCS must accept the consequences of past actions, [and] act fairly and honestly with integrity and transparency in developing a logical and carefully considered budgetary strategy."
In the response from Muncie Schools, an appeal of the fact finder's decision is planned.
Full text of response sent from Muncie Community Schools on Saturday:
Dear MCS Stakeholder:
The Fact Finder appointed by the Indiana Educational Employment Relations Board (IEERB) handed down her opinion on Friday regarding which collective bargaining agreement would be put in place. The MTA's last best offer (LBO) or the Board's LBO. Unfortunately, the MTA and the Board were unable to come to an agreement over the last 20 months. The lack of agreement was generally over the size and impact of MCS's structural deficit and the impact of unfunded liabilities from previous years.
Unfortunately for all involved, this is a situation that took more than a decade to create. However, immediate steps must be taken to address the current cash flow issues in MCS to ensure that MCS is able to pay its staff and vendors. Changes in state funding and the property tax caps have definitely have had a negative impact on MCS's financial situation, but MCS's lack of responsiveness to those changes have made the situation worse as well. Additionally, significant fiscal issues have been raised by the biannual audits by the State Board of Accounts, but MCS failed to act decisively to address many of those issues.
MCS has asked both the City of Muncie and the Muncie Redevelopment Commission for help through its TIF funding, but at this point in time, no funds have been forthcoming. The City of Muncie has provided some in kind services to MCS such as assistance in plowing and salting parking lots, etc. MCS has also asked state officials for assistance. Some seem to think that these avenues have been untried. That is not accurate. Members of both houses and both parties at the state house have heard from MCS's leadership about the needs of MCS. Some assistance has come in the form of legislative changes, but it has been clear any funding will most likely have to come through the Distressed Unit Appeals Board (DUAB) process. MCS did previously ask the DUAB for funding, but was turned down. MCS went to the tax payers directly with a request for a referendum November 5, 2013; that referendum was soundly defeated with 54% of voters voting against the ballot measure. MCS has also been slow to respond to its declining enrollment and has more schools than projections show that it will need over the next decade.
The options described in the paragraph above being exhausted leave MCS little choice but to make significant reductions to operational costs. With the MTA's LBO being selected, MCS will continue to be burdened with much higher than average insurance costs for its employees. The Board may appeal the decision since we believe it will cause continued deficit financing.
Additionally, MCS will have to investigate all other ways to reduce costs. Simply to make up the projected increased costs of the teachers' insurance plan, we will need to cut nearly $2 million. This is about the amount saved by closing four elementary schools and a middle school. However, MCS must live within its means; all other MCS staff members have already seen reductions in either compensation and/or insurance benefits. MCS regrets having to make additional cuts and close schools, but the fiscal realities make this necessary in order to remain viable.
The Fact Finder's decision, which we hope will be overturned on appeal, leaves MCS in potentially the most perilous fiscal situation in the state. MCS will renew its efforts to reach out to all entities that can potentially be of assistance and would urge each individual to do the same. Difficult decisions to reduce MCS's physical footprint will need to be made shortly. MCS still holds out hope that the community will be able to work together to move forward towards the vision of a digitally rich instructional environment that educates the whole child and provides children and their families the resources necessary to be successful today and throughout life.
