Schools

Racine Unified Reaches Tentative Agreement with Teachers' Union

District anticipates achieving cost savings of more than $18 million

The Racine Education Association and the Racine Unified School District reached a tentative agreement Tuesday night that would save the school district millions of dollars.

The district currently faces a $25 million deficit; the tentative agreement would save the school district $18 million.

Dave Hazen, the chief financial officer for the district, said the agreement is a “significant, collaborative step toward reaching the necessary cost savings.”

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The agreement, which would require a vote from the Board of Education, would not impact the local tax levy, according to a press release.

The contract would affect the 2011 through 2013 fiscal years and includes:

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  • A salary freeze for the term of the agreement.
  • Employees will share health care costs through plan changes that
    will provide RUSD cost savings of 13.2 percent (to increase after the
    first year).
  • Employees will contribute 50 percent of Wisconsin Retirement
    System (WRS) pension contribution (currently 5.8 percent of salary)

If the union and the school district had cut just the salary and benefits, the district would have saved about $15 million.

Still, the district faces $7 million shortfall because of the proposed state budget. Administrators will be working to find additional savings while trying not to impact the classroom.

The two sides have been negotiating since they opened contract talks on March 1. This is amidst heavy picketing at the State Capitol by the teachers unions across the state protesting the state's proposed budget. A companion budget repair bill that was proposed in February sparked the protests because the bill limits the unions' bargaining rights.

Dr. Jim Shaw, Superintendent for RUSD believes if approved, the agreement would be the right thing for Racine Unified because it reflects shared sacrifices, provides stability and supports the district’s dedication to improving student achievement.

The Board of Education will vote on the agreement at 7:30 p.m. at a meeting Wednesday

 


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