Hopkins School Board Approves Teachers' Contract

(UPDATED: 10:24 p.m. Dec. 22) The unanimously signed off on a teachers’ contract that is 5.7 percent costlier than the last one—but a proposal to earmark part of the district’s savings for the contract’s extra costs underlined concerns about where spending is headed.

“What we have right now is something that is eating away at our fund balance,” said School Board Director Ellen Dustman.

The Hopkins Education Association has not returned requests for comment.

The contract includes 8 percent and 5 percent insurance premium increases for the 2011-12 and 2012-2013 school years, respectively. Maximum pay would increase 1.5 percent in both those years, and minimum pay would grow 1 percent in 2012-13.

Hopkins uses a unique pay scale called the Hopkins Compensation Model that has a minimum and maximum pay for each education level.

In the 2010-11 school year, Hopkins teachers had the fourth-highest average pay. But Director Susan Wootten said this year’s increase is in line with increases from school districts like Stillwater and Wayzata that have already settled their contracts.

Dustman added that it’s a myth that there are no increases in bad times. Sometimes businesses pay more money with the expectation that it will bring in additional revenue.

“I do really value the fact that our negotiators on both sides of the table were so good about coming to an agreement,” Dustman said.

Setting aside money

But salary and benefits didn’t consume most of the discussion. Board Treasurer Wendy Donovan proposed putting about $1.4 million of the district’s fund balance off-limits during budget discussions to emphasize the effect that contract increases have on the district’s budget.

That total is about equal to the amount of salary in excess of new revenue coming into the district. Donovan described worrying so much about funding going forward that she got up at 3 a.m. to jot down notes about the contract.

“It just sends a message that we’re putting aside this money; it’s not magic money,” she said. “It’s a great contract. I just want to make sure we have a way to fund it.”

Board Chairwoman Yvonne Selcer added that she thinks the district should consider institutionalizing Donovan’s proposal: “I also agree that we need to show this money doesn’t come out of the sky.”

Such a measure wouldn’t actually lock up that portion of the fund balance; the board could always reverse the decision. But it could create a different starting point for budget discussions that directors hope would counter pressure when requests come in for “one-time spending.”

Still, the other board members worried about making the decision with such short notice and without involving the two newly elected board members who start in 2012.

Staff will present the proposal after the New Year.

Board arguments

But the biggest drama didn’t arise out of any of the contract provisions; it stemmed from personal friction between board members.

During the discussion about whether to set aside the money, Director Betsy Anderson said most directors couldn’t make a decision immediately because they had apparently been left out of a discussion and not had a chance to consider the proposal.

Dustman took umbrage at the comment—saying there hadn’t been any discussion and that to do so would have been illegal—and asked for an apology. Donovan later added that she, too, was offended by the comment. Tensions escalated until Selcer called a 10-minute recess.

Anderson, Donovan and Dustman then stepped away to hash it out.

When they returned, there was no further discussion about the issue—although Director Warren Goodroad had a question about an unrelated contract item. With everyone but Goodroad silent, Selcer took the highly unusual step of making the motion herself to approve the contract.

Board chairs rarely make motions or second others’ motions.

The board then voted unanimously to approve the contract. With that the meeting adjourned.

The contract won’t be formally approved unless the Hopkins Education Association votes to accept it. Voting started Tuesday and continues Wednesday, said Nik Lightfoot, the district’s director of administrative services.

CORRECTION: An earlier version of this article incorrectly labeled the insurance premium increases as pay increases. We regret the error.