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2015 Legislative Changes
Impacting Salaries and Benefits
for Public School Employees
May 12, 2015
Team Leadership
Conference
Robyn Keene, AAEA
Arkansas Association of Educational Administrators
My First Legislative Session
My First Legislative Session
• Out of my comfort zone
My First Legislative Session
Act 286 - 60 Minute Increments
• If superintendent cancels school due to emergency
circumstances including inclement weather, then
days can be made up by adding time to the
beginning and/or ending of the regular school day
for a minimum of 60 minutes.
• Has an emergency clause, went into effect 2/27/15
• Things to consider: $ of overtime for classified
employees, how to account for absences of
teachers/students, how will this affect bus drivers
and 12 month employees that work snow days, etc.
Arkansas Association of Educational Administrators
Act 364 - Health Insurance Incentive
• Regulates the eligibility of certain retirees to
participate in the state and public school life and
health insurance program.
• Retirement insurance premium based off of active
participation in the health insurance plan for new
employees hired after December 31, 2015.
Enrollment date
Additional premium rate
1-3 years of employment
0%
4-13 years of employment
5%
14-23 years of employment
10%
After 23 years of employment
15%
Arkansas Association of Educational Administrators
Act 910 – Health Insurance Benefits
Clarification
• Clarifies health insurance benefits. Clean up bill.
• The board shall require a participant an active
employee in a consumer-driven health insurance plan
option offered under the program to establish a health
savings account if the active employee is eligible to
establish a health savings account under federal law;
Arkansas Association of Educational Administrators
Act 910 – Health Insurance Benefits
Clarification (Continued)
• Defines “active employee” as eligible individual
currently employed by a participating entity or
participating entity or participating institution.
Retirees are not active employees and could not
require HSA.
• Cross Reference Act 1135
Arkansas Association of Educational Administrators
Act 912 - Health Insurance
• Extends the authority of the Health Insurance
Legislative Task Force for another year
Arkansas Association of Educational Administrators
Act 995 - Health Insurance - Local
Contribution Rates and Salary Increases
• Requires SDs to increase their contributions to employee health
insurance premiums by the same % they increase the base teacher
salary
•A change to the local contribution rate, required by this Act, is
effective for the health insurance plan year after a board
“adopted” change of the licensed salary schedule.
• Exceptions:
If the salary increase is due to an increase in the minimum
teacher compensation schedule under § 6-17-2403
District has a participation rate of 75% or more of all eligible
personnel participating in the public school employees' health
insurance program; or
District has a local contribution rate of 125% or more of the
required minimum health insurance premium contribution rate
Arkansas Association of Educational Administrators
Act 995 – Legislative Intent
• Example: Teacher Base Salary $35,000, Health Insurance
contribution amount $175 per employee, Proposed increase to
base salary $700
–2% raise to base salary (35,000/700)
–Adopted by local school board October 15, 2015
–Apply same % to contribution amount - $175 X 2% =
$3.50. New contribution amount $178.50.
–Contribution amount increases effective January 1, 2016
• Same scenario as above but different adoption date of
February 1, 2016, then contribution amount increase would be
effective January 1, 2017.
Arkansas Association of Educational Administrators
Act 995 - Health Insurance - Local
Contribution Rates and Salary Increases
Miscellaneous:
New required minimum $154.48 effective
January 1, 2016 (nothing officially announced yet)
If required to raise base salary due to
Educational Excellence Trust Funds, do not forget
about new contribution increase requirement
 125% of current required minimum is $191.25
No emergency clause. Act effective July 22,
2015
Arkansas Association of Educational Administrators
Teacher Salaries
•In March 2014, the Bureau of Legislative
Research presented the results of a study on
teachers’ salaries to the House and Senate
Education committees.
–The study compared minimum and average
Arkansas’ teacher salaries with other states
and salaries within the state
Teacher Salaries in Arkansas and
Surrounding States as of 2012/2013
Minimum Salaries
Average Salaries
Oklahoma
$31,600
Louisiana
$51,381
Mississippi
$30,900
Tennessee
$48,289
Tennessee
$30,420
Texas
$48,110
Arkansas
$29,244
Missouri
$47,517
Texas
$27,320
Arkansas
$46,631
Louisiana
$27,102
Oklahoma
$44,128
Missouri
$25,000
Mississippi
$41,994
*Data presented by BLR shows that Arkansas’s minimum salary
ranking and average teacher salary ranking among surrounding
states has continued to drop over past several years.
Act 1087 – Minimum Teacher Salaries
• Increases the minimum teacher salary schedule (Last change in
minimums was in 2008-2009)
 15-16: Minimum starting teacher salary increases
from $29,244 to $30,122 - Minimum starting salary
for Masters from $33,630 to $34,640
 16-17: Minimum starting teacher salary increases
from $30,122 to $31,000 - Minimum starting salary
for Masters from $34,640 to $35,650
• All other steps on the minimum salary schedule increase
accordingly (BOTH BA & MA LEVELS)
• Retains $450 step increments on BA schedule and $500 on MA
schedule through 15 years experience
Arkansas Association of Educational Administrators
Act 1104 – Classified Employee DutyFree Lunch
• A public school or district shall provide at least one
30-minute uninterrupted duty-free lunch period
each student instructional day for each full-time
non-exempt classified employee except in an
emergency
 “Full-time non-exempt” means a classified
employee that works 35 or more hours per week
who is entitled to overtime pay under FLSA
 "Emergency" means a time when the health and
safety of a child is immediately at risk
Arkansas Association of Educational Administrators
Act 1104 – Classified Employee DutyFree Lunch (Continued)
• A full-time non-exempt classified employee who
receives one thirty (30) minute uninterrupted dutyfree lunch period as required under this Act is not
entitled to two (2) paid breaks under §6-17-2205. Nonexempt classified employees not covered by this Act
are still entitled to the two (2) paid breaks.
• A full-time non-exempt classified employee who does
not receive a duty-free lunch period as required by this
Act, shall be compensated at his/her hourly rate of pay
for each duty-free lunch period missed.
Arkansas Association of Educational Administrators
Act 1104 – Classified Employee DutyFree Lunch (Continued)
• Districts that collectively negotiate a contract for
classified employees are exempt from this Act.
(Federal law does not require lunch or coffee breaks)
Arkansas Association of Educational Administrators
Act 1104 – Classified Employee DutyFree Lunch (Continued)
Food 4 Thought –

Who is a non-exempt employee?
http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.ht
m

Do you allow enough time in day for 30 minute
duty free lunch?
 Is there a place for employee to go for
uninterrupted duty free lunch?
Arkansas Association of Educational Administrators
Act 1135 - Health Insurance Benefits
Modifications
• Recommends, rather than requires, that an active
employee in a consumer-driven health insurance
plan option establish an HSA if the active employee is
eligible to establish an HSA under federal law.
• Clarifies that FICA savings sent to EBD is generated
from health insurance pre-taxed premiums only
• Deleted language stating health premiums would be
deducted one month in advance since some districts
now deduct current month.
Arkansas Association of Educational Administrators
Act 1180 - Sick Leave
• Requires that sick leave transferred from a previous
employer school district be depleted before using
sick leave granted by the current school district
• Sick leave transferred in is eligible for payment
upon retirement if the school district’s policy allows
for payment of unused sick leave
Arkansas Association of Educational Administrators
Act 1183 – Preserve Competition in
Selling Group Insurance
• Authorizes school districts to procure group
insurance, rather than just group disability
insurance
• Replaces “disability” with:
–disability,
–specified disease,
–hospital indemnity,
–long-term care, and
–accident-only
Arkansas Association of Educational Administrators
Act 1248 - Foundation Funding
• Establishes per-student foundation funding and
state categorical funding for the next two years
• $6,584 in 15-16 (increase of $63)
• $6,646 in 16-17 (increase of $62)
• ALE - $4,471 in 15-16 (increase of $88)
$4,560 in 16-17 (increase of $89)
• ELL - $324 in 15-16 (increase of $7)
$331 in 16-17 (increase of $7)
Arkansas Association of Educational Administrators
Act 1248 - Funding Continued
• 90%+ NSLA
• $1562 in 15-16 ($13 increase)
• $1576 in 16-17 ($14 increase)
• 70-90% NSLA
• $1042 in 15-16 ($9 increase)
• $1051 in 16-17 ($9 increase
• Below 70% NSLA
– $522 in 15-16 ($5 increase)
– $526 in 16-17 ($4 increase)
Arkansas Association of Educational Administrators
Act 1248 - Funding Continued
• PD Funding - no increase
–$32.40 per student for 15-16 and 16-17
• No increase in transportation funding even though
the Adequacy Committee recommended
“enhanced transportation funding” that would
have sent additional funds to 100 of the 236
school districts
• Act 1248 says “additional study is needed” and a
recommendation will be made 2016 fiscal session
Arkansas Association of Educational Administrators
Bills That Did Not Become Law
• HB 1444 would have required RNs on every school
campus with no additional funding.
• HB 1596 that would have required a district to
provide up to 10 ”legislative days” per years for
teachers
Arkansas Association of Educational Administrators
Health Insurance
•
•
•
•
•
Financial Health of the Plan
FICA savings generated
New required minimum effective January 1, 2016
Premiums for Plan Year 2016
EBD Survey
Arkansas Association of Educational Administrators
Health Insurance - State Health
Insurance Portability Procedure
Goal
–
create
a
smooth
transition
for
PSE’s
to
(SHIPP)
transfer from one district to another without a
lapse of health insurance coverage or from having
to go to COBRA.
 Employee must complete contract and provide
adequate notice to district they are leaving.
 Districts are to establish the date of adequate
notice.
 The district the employee is transferring from
will pay premiums for July and August.
Arkansas Association of Educational Administrators
Health Insurance - State Health
Insurance Portability Procedure (Cont)

The
new
district
the
employee
is
transferring
(SHIPP)
to will pick up insurance effective September 1.
 Both districts must participate in order for
portability process to work. If one of the two do
not participate, then the transferring employee
will be treated as a new employee when entering
new district.
 A like process was in place dating back to 1997
until the last couple of years.
Arkansas Association of Educational Administrators
Minnesota Basic & Supplemental
Life Insurance
• Rates
• Rates before PSE and ASE were in one group
• Other group insurance
Arkansas Association of Educational Administrators
Questions?
Robyn Keene
AAEA Financial Consultant
[email protected]
501-372-1691
Arkansas Association of Educational Administrators