Negotiations and settlement update

Last night, the Central Rivers AEA Board of Directors approved our recommended negotiation agreements, and we wanted to take the opportunity to share the information with you.

Given the fact that we are in a solid financial position and our cash on hand has increased the past few years, we reopened our previously agreed settlements to be a little more aggressive with our settlement. It is our hope that the change is received positively, and helps underscore our desire to provide raises and insurance benefits while maintaining our staffing levels and a balanced budget.  

Specifically, we were settled this year at 1.5%, but based on our current budget, strong solvency rate of 14%, and State Supplemental Aid (SSA) set higher than anticipated at 2.4%, we increased our settlement agreements.  We were able to achieve a salary raise and cover the premium increase for our single $2500 insurance plan.

Salary Information for 2021-22 (Total Package) 

Classified = 4.55% — .25 per hour to base wages

Certified = 3.08% — $360 to base salary

NUSS = 3.08%

Administration = 3.08%

Estimated New Money (2.4% SSA) = $360,000
Group Total Package (%) Total Increase ($)

*As of 2/15/20

Certified ($360 base) 3.08% $1,033,493
NUSS 3.08% $91,291
Admin 3.08% $133,304
CWA ($.25/hr) 4.55% $156,478
Total Cost (All Funds) $1,414,566

Insurance Information for 2021-22 

Our preliminary insurance renewal rate currently sits at a 16% increase. This is a large increase and impacts the amount of funds we are able to allocate to salary. The increase is due to our use and some of our larger claims. Of course, we wish this was not the case, but it is just our reality. The renewal rate would have been even higher if we were not self-funded.

Salary Information for 2022-23 — Total Package = 1.0% for all groups.

Into the future…

We continue to appreciate multi-year agreements that put us in a position to get our contracts out as soon as possible. Recently, we have been in a pattern of increasing our agreed upon settlement, based on our financial condition. We have tried to be aggressive the first year of the settlement, and continue to drop the percentage for the second year of the settlement. This allows us to be as aggressive as possible in the short-term, but provides a more conservative settlement should we need it for the subsequent year. Our desire is not to be in a position to have to use the lower settlement amount, but we are prepared if something out of our control impacts our financial picture.

We want to thank everyone for all their efforts, flexibility, and positive attitude this year. We hope that our efforts throughout this year have provided evidence that we value and support you personally and professionally. 

Please let us know if you have any specific questions, comments or concerns! 

Karl Kurt, Assistant Chief Administrator/Director of Human Resources

Michael Kalvig, Chief Financial Officer


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