EMPLOYEE PRESENTATION

EMPLOYEE PRESENTATION PowerPoint PPT Presentation


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Employee Presentation. What is the difference?. ConsolidationA school no longer existState aid for the mergerTeacher guaranteed seniorityNon certified seniorityNegotiate points of concernLand boundaryAsset/LiabilityPublic vote on acceptance or rejection. DissolutionA school no longer exis

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EMPLOYEE PRESENTATION

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1. EMPLOYEE PRESENTATION Consolidation Information for consideration and input opportunity

2. Employee Presentation What is the difference? Consolidation A school no longer exist State aid for the merger Teacher guaranteed seniority Non certified seniority Negotiate points of concern Land boundary Asset/Liability Public vote on acceptance or rejection Dissolution A school no longer exist No aid for the merger Teacher guaranteed seniority No non certified rights No negotiations McLeod Commissioners assign land plat MDE assigns asset and liabilities M.S. 123A and its subdivisions. - No difference in Asset/Liability cost are assigned to the districts involved. M.S. 123A and its subdivisions. - No difference in Asset/Liability cost are assigned to the districts involved.

3. Employee Presentation Comparison of process Consolidation State $200/ADM first year. State $100/ADM second year Schools involved negotiate boundaries and liabilities Dissolution No State Incentive MDE Commissioner sets liabilities and assets County Commissioners set boundaries ADM - Average Daily MembershipADM - Average Daily Membership

4. Employee Presentation 123A.46 DISSOLUTION AND ATTACHMENT. Subdivision 1. Dissolution. Any district may be dissolved and the territory attached to other districts by proceeding in accordance with this section.    Subd. 15. Current assets and liabilities. If the dissolved district is not divided by the order of dissolution and attachment, all of its current assets and liabilities, real and personal, and all its legally valid and enforceable claims and contract obligations must pass to the district to which it is attached, except as provided in section 123A.75. If the district to be dissolved is divided by the order of dissolution and attachment, the commissioner shall, within 30 days after the order is issued, issue an order for the distribution of its current assets and liabilities, real and personal. If the commissioner's order provides for the transfer of an interest in real estate to a district, this order may also impose a dollar amount as a claim against that district in favor of other districts, and this claim shall be paid and enforced in the manner provided by law for the payment of judgments against a district. The obligations of districts to the teachers employed by the dissolved district shall be governed by the provisions of section 123A.75.

5. Employee Presentation Consolidation effects on reorganized school All teachers of the consolidated schools will be assigned to a MASTER SENIORITY LIST and fill the available positions by seniority and licensure! SAME procedure for non-licensed employees (Para, Drivers, Cooks, Custodians, etc) Teachers were offered severance equal to 100% of their current salary plus the Master Agreement payments for unused sick leave and or personal leave. Non-licensed staff were offered a severance Purpose is to reduce/minimize the terminations or Unrequested Leaves assigned to host re-organized districtsTeachers were offered severance equal to 100% of their current salary plus the Master Agreement payments for unused sick leave and or personal leave. Non-licensed staff were offered a severance Purpose is to reduce/minimize the terminations or Unrequested Leaves assigned to host re-organized districts

6. Employee Presentation Effect on School and Current Employees MCW offered an incentive for resignation at end of 2008-09 school year. No non-licensed staff remain for inclusion at any host school. BLH has 3.75 fte staff that will cause termination or URL of current teachers. That number may change to a lower fte count.

7. Employee Presentation Fiscal Effect Reorganized district is larger so district Net Tax Capacity is larger, lowering our individual school tax bill. More students in the levy authority - Increase of $124,000 per year for BLH Combine the two district referendum amounts and recalculate by MDE formula - New Levy Authority is $764 per student - but more total $.

8. Employee Presentation Dissolution effects on reorganized school personnel Same as in Consolidation for TEACHERS No employment rights for non-licensed staff. No finance support from the state

9. Employee Presentation What is the projected Debt of McLeod West June 30, 2009 anticipated debt level is $1.75 to $2.0 million in operations debt Severance/resignation incentive equals not to exceed one year of salary (no benefits considered). All employees of MCW offered Grand Total of incentive $900,000 Interest plus principal repayments will be $3.4 million to be paid back in five (5) years.

10. Employee Presentation Who pays the debt? According to MDE the debt is classified as a liability and is assigned by the level of assets assigned. GSL - 50% ($1.7M) BLH - 35% ($1.4M) GFW-15% ($300K) Special legislation being sought to provide no cost, no interest and little effort by the reorganized districts! No cost differences between Consolidation and Dissolution process.

11. Employee Presentation Repayment Plans - options The three options require the passage of special legislation and signature by the governor! Loan by MN and repayment in 5 yrs Loan by schools and MN pays interest General Obligation Funding Bill

12. Employee Presentation $3.0 million loan Legislation to pass a one time payment of the full amount and former MCW taxpayers pay full amount to MN MDE in five years. Tax, interest and repayment would be established in a trustee type of account.

13. Employee Presentation Interest only legislation The three reorganized schools would add the MCW debts to their budget and continue to borrow from MSBAIT Pooled Fund through MSBA. Repayment for loan would continue by each school as is currently practiced, with MDE paying the portion of MCW loans’ interest.

14. Employee Presentation General Obligation Fund MN Legislature passes permission for MCW to borrow $3.4 million prior to June 30, 2009. Repayment would be from the current MCW residents through special levy authority granted to the reorganized school district. (Trustee for MCW) Only MCW residents pay the debt in five years. No cost to reorganized districts.

15. Employee Presentation G O Bond (Investopedia) General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project.

16. Employee Presentation Where are we with the process? Monday, February 15, 2009 at 3:00 pm a meeting was held in St. Paul. Senators Dill and Sharon along with Rep. Koenen, et.al. met to consider the General Obligation legislation. Rep./Senators and MDE representatives were supportive of the plan for a G.O. Bond issuance.

17. Need for Speed! If a consolidation election is to take place on May 5, 2009 the legislation for G.0. Needs to be immediate!

18. Employee Presentation Why Consolidation? Financially it will assist the three reorganized school district during these financial times. MCW students have little option during this time. Stewart and Brownton will not leave their histories and agree on NOTHING!

19. IT IS BEST FOR STUDENTS!!!!!!! No Single School District Can REORGANIZE with MCW and Expect Have a Good Transition

20. Consolidation Allows US to plan our own futures! Dissolution forces our schools to be “done to us”!

21. Employee Presentation

22. What do you think? Board response for the record

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