January 8, 2008

 

To:       Board of Supervisors

            School Board

 

From:  Bob Tucker, County Executive

            Dr. Pam Moran, Superintendent of Schools

Kimberly Suyes, Director of Human Resources

Lorna Gerome, Assistant Director of Human Resources

 

Re:      Revised Compensation Projections for FY 08-09

 

To adhere to the Boards' adopted strategy, the following processes are implemented each year:

 

1)      Annually survey the adopted market to determine the salary scale adjustment implemented in those localities/schools for the current fiscal year.

2)      Annually survey the adopted market to determine the average total salary increase granted employees in those localities/schools for the current fiscal year.

3)      This data is analyzed to ascertain where the salary scales (both classified and teacher) for Albemarle County stand relative to the adopted market.

4)      Obtain projection data for salary increases for the next fiscal year through a compensation database (WorldatWork, Eastern Region). 

 

5)      All of this data is used to project the merit increase percentage and develop the teacher scale, including step increases.

 

At the October 11 meeting, staff did not provide a recommendation due to an anticipated revenue shortfall as a result of the housing market downturn; however, staff did provide the following projections, based on the Joint Board process and adopted strategy:    

 

  1. 3% increase in the classified salary scale.
  2. 4.35% merit increase for classified staff.
  3. Fund teacher increases to reach and/or maintain top quartile (including 4.0%) to be distributed along the scale.
  4. Continuation of a longevity increase for teachers and lump sum merit increase for classified employees.
  5. Anticipate an 11% increase in medical plan costs.
  6. Anticipate a 6% increase in dental plan costs.

 

These projections were developed by looking at where Albemarle salaries stand relative to our adopted market (based on the July 2007 market data, -0.35% below) and the WorldatWork salary increase projection (based on data collected in June 2007, 4%). 

 

As our adopted market consists of other localities that are also facing revenue shortfalls as a result of the housing market downturn, staff collected revised salary projections on their increase amounts.  While many localities are still unsure as to their salary increase projections, the data we collected indicates that most localities are looking at lower salary projection amounts than previously indicated.  Most of the data was collected from local governments, as school divisions generally were unsure of projected increases, but the school divisions did indicate that their salary increases would likely be lower than last year’s increases. 

 

Based on this updated information, staff believes that the Joint Board adopted strategy can be met by revising the projections as follows:

 

1)      2% increase in classified scale.

2)      3.35% merit increase for classified staff.

3)      Design teacher scale to meet market and distribute 4.0% along teacher scale.

4)      Continuation of a longevity increase for teachers and lump sum merit increase for classified employees (in FY 07/08, 63 classified employees and 89 teachers received a lump sum increase amount which totaled $78,835).

5)      Based on updated claims data, reduce the 11% increase to an 8% increase in medical plan costs.

6)      Anticipate a 6% increase in dental plan costs.

 

 

 

Recommendation:

Staff requests that the Joint Boards approve the revised compensation and benefit projections to provide direction and commonality for FY08-09 budget preparation to the County Executive and Superintendent. 

 

Return to regular agenda