In the last School Aid budget (PA 103 of 2023) the state ended up allocating $63.8 million for a program titled “Educator Compensation Program.” The original intent, which came from the Senate, called for one time funding of $125 million for a pilot program to provide minimum salaries for teachers. Politics being what they are, the end result is one-time funding for equal per pupil payments to districts to increase educator compensation. Using the 2022-2023 school year student count of 1,437,279 pupils across the state, it equates to about $44 per pupil, give or take.

The language in the statute simply states, “From the state school aid fund money appropriated in section 11, there is allocated $63,800,000.00 for 2023-2024 only to districts in an equal amount per pupil. It is the intent of the legislature that districts will use the funds to increase educator compensation.”

The language leaves a lot of leeway as to how to use these funds. Here are a couple suggestions to consider when discussing these funds with your bargaining partners, which is a necessary step:

• Get something for it. While providing more funds for your teachers is laudable, simply being a conduit of funds and expecting nothing in return is laughable. The law does not require you to increase compensation without receiving value for said compensation. Consider what you are offering up, and what is a good trade-off in value for your district.

• Do not use these funds to increase your Schedule A. The money provided by the legislature is specifically only for the 2023-2024 school year. Adding it to your Schedule A could unsustainably increase your steps and lanes.

• Understand the actual costs you will incur with the increased payments you may make. With an increase in compensation, the district may incur additional tax payments and additional MPSERS normal costs. Be aware of your total costs for negotiated payments and adjust accordingly.

• Ensure that you document the plan for allocating the funds as well as the full agreement, either in a letter of agreement or a memorandum of understanding. By attaching the agreement to the contract rather than incorporating it, it can be removed more easily when it is no longer relevant to the bargaining unit.

Negotiating this and other topics can present unique challenges to districts in different ways. If you have any questions or need assistance with this, or any other bargaining or legal matters, please do not hesitate to contact the MASB Legal Department.