Contract Negotiations Update

In an effort to improve communication with stakeholders (including taxpayers) and to add transparency to the District’s positions and reasoning, the District is adding information on its website about the progress of negotiations between the Portage Public School District and the Portage Education Association (PEA) for a successor labor agreement.

The District and the PEA maintain a labor agreement that covers our teachers, media specialists, social workers, counselors, engagement specialists, educational consultants, and psychologists. The contract establishes pay, benefits, and work rules for employees and supports good service for students. Contract changes are negotiated during collective bargaining and must be approved by PEA members and the Portage Board of Education.

Most contracts last from one to three years and expire on June 30 of a designated year. The most recent PEA contract was for two years and expired June 30, 2023. Negotiations began on May 18, 2023 after the Association notified the Board they were ready to begin. Through August 25, 2023, the parties have met eight times. The parties have reached tentative agreements concerning four contract articles and reached consensus on others. Disagreement about what the District can afford and sustain for compensation remains a major point of contention. The District has proposed wage increases for each of the next two (2) years.

Tentative agreement reached on Tuesday, Sept. 12. Ratification to follow.

In an effort to increase transparency, the District wishes to convey the following to its stakeholders about the negotiation process:

The District values its professional staff: Portage teachers are well-prepared academically and are committed to their profession. Approximately 74% have earned their Master’s degrees and the average length of teaching experience for a PPS teacher is 16.3 years. For that, Portage teachers are well compensated and earn amongst the highest pay in the area.
The parties have reached multiple tentative agreements on a successor agreement to date. Since the first bargaining session on May 18, 2023, and during the seven subsequent sessions, the parties have reached multiple tentative agreements.
The Board has offered a compensation increase. The total teacher compensation package offered in August by the Board exceeds what other PPS employee groups received based on either settled agreements or the initial 2023-24 Board-approved budget. The Board team’s most recent offer (August 25, 2023) to the PEA results in over a 5% increase in total compensation for this bargaining unit compared to last year. While wage increases based on step changes may not be viewed by some as salary increases, steps are an expense for the district and result in a pay increase.
Declining enrollment will decrease projected revenue in the adopted budget. The District expects a loss of over 100 students from last Fall’s student count. This projected loss decreases revenue by approximately $1 million. On a positive note, class sizes are now lower than the 10-year average across all grade levels.
Board policy requires the District to maintain an unassigned fund balance of at least 7%. School financial experts recommend that Michigan school districts maintain a fund balance in their operating fund between 10-15% of expenditures. The Board’s adopted 2023-24 budget has an unassigned fund balance of just under 12% or 19.4 days of operational costs. The District’s fund balance is among the lowest in Kalamazoo County.
The Board is not trying to increase the District’s fund balance. Since the 2020 pandemic, the District’s fund balance has increased due to an influx of one-time monies (including ESSER, ESSER II, and ESSER III). As these monies spend down, they will likely not be replaced with sustainable funding. Some of these funds are restricted for use or are not available to fund general expenditures like wages. The Board’s August 25th offer also includes a provision for an enhanced salary schedule for teachers if the audited unassigned fund balance exceeds certain levels after this year.
Current contract language which references Revised School Code Sections 1309, 1310, and 1311, as well as Board policy and administrative guidelines address student discipline issues. The Board and administration are aware of increased student discipline issues and have proposed a Letter of Agreement for PPS and PEA representatives to form a Student Behavior Task Force to address this concern. The Board team has also agreed to incorporate some PEA-proposed language to clarify the District’s responsibility to give reasonable support and assistance to teachers, as well as to clarify that any workplace injury is subject to workers’ compensation coverage.