that just that hurts my mom brain to even think about because that's such a fragile group of our teachers and we know they're out there. I can't even imagine how we would message that. So, >> okay. >> Um just some something to think about, >> Ivonne. And then Kelly, >> I know we have a lot of budget con uh constraints, but I'm just going to add to what Dorothy said. Uh I rather and I'm talking personally rather not have an increase in salary but knowing that my benefits medical insurance is covered by the district and I know that it's not fiscally sustaining but hopefully we can do it for one more year and then in the next year we can do a marketing conversation communications and next year is not going to be the same and so they have at least people a year to process make arrangements all of those things rather than to spring it out in four, three months.
>> Okay, Kelly. >> Um, yeah, I just wanted to add that we're already increasing the out of pocket, so that's already sort of a hit, so to speak. So, why would we add another hit on top of that? Um, and in addition, just so I'm clear, Vanessa, if the district were to absorb the cost, it's 50K, right? So, now we're talking about 750 down to 700. Is that right? >> It's Yeah. 468 46,800. >> So of the money that we have to work with here in this group, we were at 750. This would eat up 46 essentially. So about 700. >> Yeah, that's how it works. >> Which to me in the grand scheme of things feels very worth it. >> Yeah. >> Daniel, >> um earlier I heard the number about $40 per paycheck, right? for uh if we shared 50% um I mean 25 paychecks over the course of a school year that's going to cost a teacher $1,000 out of pocket.
>> So to James' point earlier that would mean that they would have to receive more than a 2% raise >> to offset that. And I mean we don't got 2% raise money. So I mean um I >> Okay. >> Well, right. Exactly. The 2% rate just to offset. >> All right. But if you don't get to a race to cover other initiatives, your benefits increase is part of your total compensation. And I think that's a better messaging. >> Yeah. Well, I was going to say to Avon's point, I mean, you could even do something where you could say, you know, we're going to institute cost sharing at a rate of 10% a year for 5 years, right? And that would be a much smaller cliff. someone is now paying $4 or or $8 right next year they pay $16 the following year then to say oh yeah starting at 50 right I know it's small numbers right now but I mean to Ivon's point it's like you can't just it's you don't want to spring things on people >> that would only be if it's fiscally irresponsible to continue covering the cost again I think it's like is a thing that we can advertise to to your point I mean yes people don't shop around for benefits when they're comparing school districts but when you're determining whether you're going to go work at a contracting company that doesn't offer benefit, you are actually.
That's one of the things that people look at is or if you're a contractor and you're considering jumping ship to go work at the school district, it's going to be for benefits, right? >> And I think I mean talking about messaging and stuff, it's I I think it's less shady to say, hey, you know, we're going to eat the 46,000. And I mean, it's not good for recruiting. I agree. But um it's less shady to say we're going to just not have this higher pay raise because we're going to cover uh health insurance instead. I mean that messaging wise I think that's a little bit easier for people to swallow than oh well look we got a 2% raise but don't look at this part back here >> Katie and then we'll close this conversation out >> to to agree with everyone I don't even really think we're in like a big recruiting year you know we're declining enrollment most of our employees according to all these surveys are staying anyway so I think we really do need to think about retention at this point in which case I agree with you saying you get a, you know, 2% raise doesn't really go very far and I think it would be better to say we're going to cover as much of your insurance as possible.
>> Okay. >> Any final >> uh Yeah. I just I really like the talks about uh messaging and planning the messaging as opposed to my concern for the future is that we don't have $750,000 on the table to give any kind of increases and we have a 15% increase to staff. So, they get hit twice, right? They don't get any increase and they get a decrease and we can't cover it. So, I I really love some of the messaging ideas and I'm wondering if we we might not want to put together a messaging team that comes up with some of that stuff. Right. Well, I was thinking and I don't want to add to our plates, but I'm wondering if next year because we're talking about revising committees and if we start to actually have an insurance committee that solely looks at insurance and maybe has those conversations to then bring all of the information to mean confer and work on messaging as well throughout the year.
Um that that just from my perspective, I think that might be helpful too. >> That would be very helpful. I would agree and I think your messaging even not tomorrow but tomorrow what I'm saying is sooner than later is whatever the recommendation is is that education and information is powerful the you know how if this group says look we we in lie of increased compensation we did this and then just putting the facts out we had a 15% increase very likely the rates are going to be going up again very likely I I don't know about your enrollment but whether it stabilizes or goes down right all these things so that people are thinking now even thinking planning now for next year knowing that you may have to do something different so that education piece I think is huge and I think you have a good great idea to put a group together to say let's start talking about that now So what we've heard we've had some conversation uh around this cost sharing idea.
Uh there seems to be a general um uh I don't want to say consensus because a feeling around not doing anything yet but at least doing putting some group together to say look we need to really take a look at this with some folks in the room and valley schools and you and whoever that may be to say look let's start planning and talking about this moving forward. So, if that is the case, and I don't want to put it up there, um, because it sounds like >> I think we could. I mean, I think it's pretty >> it's clear it's there's 750,000. We're going to go through some other op um compression items and like a menu of different >> options. It sounds like this is option. >> It could be. And maybe what we do is we let's get to compensation perhaps and then we can talk about it in that same context to say yay or nay based on what we see there if that works.
Dorothy, >> I just had a quick question. Um, I don't know if this is within the purview of meet and confer or some other committee or wherever this lies, but we just I don't know where you posted that, but thank you for getting that information that we basically saved or would have saved around $100,000 if we had been using precision over the last five years. I saw that you provided that. Is there a way or place or recommendation that can be made? Well, let's earmark that money for um things like not having to cost share and pass on costs for insurance, right? It's under kind of that same umbrella of insurance. Like, let's start looking at well, where are we going to cut costs like that and earmark money specifically to address areas that we know are going to be a concern in the future.
>> Does that make sense? Yeah, that's exactly what that that type of group could do. We can look at those savings. It'd be prior year, right? Like >> Sure. Sure. >> Yeah. Yeah. But right like let's let's start being proactive in planning how we're going to cover stuff like this that we know is critical to our employees. >> Good, >> Ivon. Then we're moving on. >> Just one last comment on on the messaging part. Um because I think as many other districts are closing schools or reducing other stuff, I think it will be a great opportunity for our district as we recruit new individuals to say for the last five years we have paid 100% of the insurance and we're doing every all of those all of those things positive things for the people who are staying so they understand the the context and the and the history and for the new ones that are here about kraton shout out that might a good place to be part of.
>> Okay. Avon said sign him up for your committee. >> Can we come to consensus on that? >> Well, let me ask you that. Uh, we can we can also if we need to talk about because somebody brought up like wanting to know about compensation, too. Um, but I'm fine just coming to consensus about this and we can address it the exact same way where we just have it, not run it through the standard and say we're okay not moving forward with cost sharing for next year. >> Yeah, I was going to say um if the more the earlier we start with the the sooner we spend some money, the easier the other compensation decisions will be. >> True. >> Because yeah, we have our running totals became more complex. Yeah. >> Okay. So, do we have consensus for the next school year to not uh move forward with cost sharing?
>> Can we frame that? >> The district to absorb. >> Yeah. >> The district to absorb >> employee healthcare costs instead of saying not cost sharing. >> The district will absorb the >> increase to me health medical insurance. Is it just medical? medical. >> Okay. >> Has it been way longer than five? I only got >> my entire career. I've never paid out of pocket for my personal insurance. >> Now, I couldn't afford insurance for my kids, but my insurance, my personal insurance with no up has always been free. >> So, that's at least 50,000. >> Yeah. >> I'm I'm going to put the dollar amount on there. District will absorb the is it $50,000 increase to medical insurance. >> 46. Let's round to 47. 47K. >> 47,000. >> And Dorothy, such a good point because again, we lose another 500 kids. >> Here is the option.
The district will absorb the $47,000 increase to the medical insurance for the 2627 school year. I'm looking for thumbs. I 100% fully support. not I a fully p 100% >> I >> also tried to capture some of the comments that were made about the impact in the story. So, um, >> do performance >> uh, just for future communication, >> but if you do have any kind of comments like that and want to email me, I'll add it to my list. Right now, I have that we increase the max amount out of pocket, so we are >> um, affecting people's insurance, right? Um, we are absorbing the cost out of the meet and confer budget. >> It's a big deal. Uh we're creating an insurance group to message and dig deeper into future insurance costs and these needs in your account. >> Compensation will not cover most insurance increases for the staff members with dependent.
So whatever compensation choices we make most likely would not counter this increase. If we were giving a 10% like um James said, then maybe this is that would be the year that we would do that, but it's not happening this year. And um I do want to refer back to the survey because was that not one of the also it was compensation and benefits, right? >> Yes. >> Yeah. Right. >> Yeah. If possible. >> Right. >> So again, another year that we have the opportunity. I'm excited. >> Okay. Um I want to we're going to put another option on here which is to do what we talked about with the committee is develop the committee for uh I'm just spitballing here >> future insurance needs >> education uh insurance education information regarding insurance. >> It sounds like we're predetermining eventually we're going to cost share but we've been crying cost sharing for years.
But every school district and no one no one. >> It's a disclaimer, man. I'm gonna say it every year just like the people before me because one year it could happen. >> Why is that not marketed? I mean, if it's such a rare thing for other school districts to do that, that should be that should be out there. >> To do what to call some do, some don't. Yeah, >> I teachers and other school districts and they're like, "What? What?" >> Like, it's it's intriguing to them. >> They have jobs, so they're probably not receing the advertising. You know what I mean? >> Okay. >> But the e only Scottsdale does not, Roosevelt does, Madison does, and Kraton does. Those are the only four districts I had. >> All right. So, the option is to develop the committee to address education information and planning for future insurance needs.
confer committee or a district. >> I think it's a if I would it sounds like right because right now you've got valley schools. So I would if I would make it a subcommittee of this group and then just like today the subcommittee comes forward but also this group is also just um sharing information even before IBN starts. You know it could be a says we're developing this committee please join us. We need to start, we need to make sure people are informed about things, right? There's there's nothing that has to go through here, I would say, for them to be able to do that work. >> That's my take on it. >> Would you know who should be on the committee and then so we would >> I would if if it I would probably want a representative group of of your employee groups, classified certified admin.
I would definitely want one or two from here right so that they are able to share and update if that works okay for you guys that's how it in other places >> that's what I volunteers on this one we can if you would like or we can just move to consensus to say that we're going to do this uh particular option to to get started and help inform employees. >> We're not volunteering for the committee. We're just >> Right. If you don't if you put your thumb up, I'm not putting you on the committee. Okay. >> Okay. Do we have consensus around this third option to get a committee started >> side? Ivonne, you're you have to be this or this because you're on it. So, I'm just kidding. >> Okay. All right. Okay, we have consensus on this option. So these three options will uh move forward to governing board recommendation.
Okay. All right. We are finished talking about insurance. Give yourselves a round of applause. Yeah. All right. Pay for performance. Are you ready? Hopefully everybody had a chance to look at the plan as presented. It's my understanding. I'm going to turn it over to Joel to give some more detailed information, but this committee's been working since August. Is that right? >> September. >> I I have a quick question before we begin. So, when we do come to a consensus, we're coming to a consensus as how the plan is written. >> Well, no. Yes. >> The plan, the performance plan. >> Yeah. So when we come to consensus, you have to come to consensus off how it is written or >> keep it the same status quo or how it's written on the screen. >> The only thing I believe that you that we are going to uh work on for consensus is the dollar amount, not the plan.
>> No, I'm not talking about I'm talking about the plan for plan they're about to present for us. >> That's what I'm talking about. Just the dollar amount. But the dollar amount is on there. I'm asking a question. So the presentation is written >> or whatever's on already pre-eread. When we come to consensus, we're coming to consensus on how it's written and presented to us. >> I'm having difficult what we need consensus on for pay for performance is the dollar amount. >> What I'm asking what we're going to come to consensus on is >> the dollar amount that's being presented to us. >> Yes. And the other second option is option is status quo. It's kind of like what was before. >> Oh, increase or no increase. >> So basically yes. So either >> correct >> both for what's being presented to us on the slides.
>> We'll review the options and go through those standards and say yes either accept the dollar amount or >> my apologies. I've just had a sidebar that the funds are coming out of the classroom site fund. So I think really this is just an opportunity for this group to give tacid approval right not >> I don't I don't think it's consensus it's the committee the committee worked on the plan looked at all the different plans looked at all the different dollars it comes from classroom site fund which is not a fund that we bring in for bargaining um there is a portion of it for the classified staff that is an M cost and that will be brought forward in the compensation dollars one is looking at the plan that the committee is recommending ing to send out to all teaching staff and then teachers will decide that plan.
So honestly, I don't I'm not sure if this isn't what do you guys usually do with it? I don't know if it's a consensus or just sharing the information with you >> because right now it's not coming out of the 700. >> It doesn't touch your 700 except for the classified >> classified does. So that would have to be >> Joel. >> I mean, do you want to see it so you can talk about it? >> We have it here. It does. I do think it I I do think it needs to be known when we talk about compression because there's a whole group of staff that will be getting if they vote this in. If 70% or more vote this in, that means they're getting a $1,000 increase to their pay. So, I think that's important for com compensation conversations is that those teachers will get a $1,000 increase to pay without >> and they have to vote for that themselves, right?