SCHOOL ALLOCATION MEMORANDUM



DIVISION OF FINANCE52 Chambers Street, New York, NY, 10007SCHOOL ALLOCATION MEMORANDUM NO. 32, FY 2018Revised October 16, 2017DATE:May 26, 2017TO:Community SuperintendentsHigh School SuperintendentsField Support Center TeamsSchool PrincipalsFROM:Raymond J. Orlando, Chief Financial OfficerSUBJECT:Salary Subsidy for Excess Staff Hired to Permanent AssignmentsThis memorandum allocates funds for salary subsidy incentives for schools who hire teachers or assistant principals permanently from the excessed staff pool. Staff hired take their rightful place in seniority in the school. The following incentives are allocated in this SAM:Two Year Subsidy Beginning in FY 2018Three Year Subsidy Beginning in FY 2017 Eight Year Subsidy Beginning in FY 2009 New for FY 2018: Two Year Subsidy Beginning in FY 2018 In August 2017, the Department of Education announced a subsidy for schools that hire either teachers or assistant principals in FY 2018 from the excessed staff pool on a regular (permanent) basis. The allocation takes the form of a two-year subsidy to the school for a portion of the cost of the hire as follows: Year 1/FY 2018: 50% subsidized cost of the ATR hire, pro-rated based on the effective date of the hire.Year 2/FY 2019: 25% subsidized cost of the ATR hire.Beginning in FY 2020, the school will be responsible for the full cost of the staff member.The subsidy is funded by central. For teachers, the amounts for which the school is responsible are based on the school's average teacher salary in each fiscal year of the program. For assistant principals, the amounts for which the school is responsible are based on the assistant principal’s forecast actual salary in Galaxy in each fiscal year of the program.Terms of the Subsidy:The subsidy is only available to schools in districts 1-32 (including high schools).The subsidy only applies to teacher and assistant principal titles; other titles are not eligible.A school’s subsidy will be discontinued if an eligible employee changes their title after being hired, including a changing from a teacher to assistant principal.Excessed staff must be hired permanently (not provisionally) from the excess pool in the period after the close of Open Market and before October 15, 2017. Assistant principals must be hired permanently (after completion of the C-30 process) before February 1, 2018. Schools will not be eligible for the incentive for re-hiring staff previously excessed from the same school. Schools cannot hire an ATR under the subsidy if they have excessed staff in the same license area.The ATR cannot have entered into a stipulation to retire or resign. If the subsidized teacher or assistant principal separates from the school, the subsidy will terminate and the pro-rated funding for the remainder of the year will be recouped. Where schools hire ATR staff on a provisional basis in FY 2018 and wish to convert those staff to regular permanent hires by October 15, the school will receive 50% of the staff’s pro-rated cost based on the effective date of the hire in FY 2018 and 25% of the person’s cost in the second year of the subsidy in FY 2019.Funds will be allocated and should be scheduled in the allocation categories TL School Incentive 2019B or TL School Incentive HS 2019B.Three-Year Subsidy Beginning in FY 2017The Department of Education announced a three-year subsidy for schools who hired teachers from the ATR pool on a regular (permanent) basis for positions in their schools during certain dates in FY 2017. The allocation takes the form of a three-year subsidy to the school for the cost of the hire at the following rate: Last year, FY 2017, 100% of the ATR hire’s cost was subsidized, pro-rated based on the effective date of the hire.This year, FY 2018, 50% of the ATR hire’s cost will be subsidized.Next year, FY 2019, 25% of the ATR hire’s cost will be subsidized.Beginning in year 4 (FY 2020), the school will be responsible for the full cost of the teacher.The subsidy is funded by central and the amounts for which the school is responsible are based on the school's average teacher salary in each fiscal year of the program.Terms of the Subsidy:The subsidy was only available to schools in districts 1-32 (including high schools).The subsidy only applies to teacher titles; other titles are not eligible.Excessed staff must be hired permanently (not provisionally) from the excess pool. Schools are not be eligible for the incentive for re-hiring staff previously excessed from the same school. Schools could not hire an ATR under the subsidy if they have excessed staff in the same license area.The ATR could not have entered into a stipulation to retire or resign. If the subsidized teacher separates from the school, the subsidy will terminate and the pro-rated funding for the remainder of the year will be recouped.Funds will be allocated and should be scheduled in the allocation categories TL School Incentive 2019 and TL School Incentive HS 2019.Eight-Year Subsidy Beginning in FY 2009: In November 2008, the DOE and United Federation of Teachers (UFT) entered into a Memorandum of Understanding (MOU) to partially subsidize schools that hired centrally funded excess staff (CFES) for eight years. This agreement expired at the end of 2011 and no newly hired excess staff will be eligible for salary subsidies under the terms of this program.FY 2009 through FY 2011:Salary subsidy applied to CFES who were hired on or after November 1 of the calendar year in which they were excessed. Note the following conditions:CFES from closed or phase-out schools and CFES excessed in 2008 or earlier were immediately eligible for the subsidy.CFES hired by the school from which they were excessed were not eligible for the subsidy.Schools that hired CFES on a provisional basis for the first year, and then hired the person as permanent in the following year, received the full eight-year subsidy effective on the date that the permanent hire occurred. These schools started to receive subsidy funding in FY 2012. The salary subsidy allocation will be issued for eight years. Subsidies initiated in FY 2009 through FY 2012 expire in FY 2017 through FY 2020, respectively. The name of the allocation category in Galaxy includes the expiration year of the subsidy.Schools receive a subsidy for the difference between the school’s average teacher salary and the starting teacher salary. In subsequent years, central subsidizes the difference between the average teacher salary and subsequent steps on the salary scale for the life of the subsidy. Note the following:Eligible titles included teachers, guidance counselors, social workers, lab assistants, school psychologists, school secretaries, and speech teachers. The subsidy is allocated directly to schools, and adjusted periodically for staffing changes to subsidized staff (i.e., for subsidized staff that return from leave, take a new leave, or transfer out of the school). The subsidy does not transfer between titles or schools, and cannot be repurposed after separation from service. If separation from service occurs, the remaining subsidy is recouped centrally. The subsidy is suspended while subsidized staff are on leave, but there is no corresponding extension of the subsidy beyond eight calendar years.Where the average salary of the school is less than the value of the step of the subsidized staff, the negative amount will be cancelled, and the subsidy will be reevaluated in the next fiscal year. For example, if person A’s step value is $63,154 compared to the school’s average salary of $62,080, the ($1,074) will be cancelled.Collective bargaining is included in this allocation.Refer to the table on the next page for examples of how the subsidy is calculated.ExampleCostTitleSalary Schedule Base on StepAverage or Actual cost of Staff to the SchoolDifferenceActionAAverageTeacher$63,154$62,080($1,074)No cost to schoolBActual CostSecretary$48,688$47,750($908)No cost to schoolNotes about average teacher salary implications:Under the FY 2009 agreement, ATRs selected for a permanent placement are excluded from the school average teacher salary (ATS) calculations until their subsidy expires. They will be included in the ATS calculations in the year following the expiration of their subsidy.A subsequent agreement in the 2014 UFT contract to exclude permanent ATR hires from a school’s ATS calculation has expired.The complete list of allocation categories for this funding appears in the table below.Allocation CategoryApplies to:TL Salary Subsidy 2018Staff hired in FY 2010TL Salary Subsidy 2018 CWStaff hired in FY 2010TL Salary Subsidy 2018 HSStaff hired in FY 2010TL Salary Subsidy 2019Staff hired in FY 2011TL Salary Subsidy 2019 CWStaff hired in FY 2011TL Salary Subsidy 2019 HSStaff hired in FY 2011TL Salary Subsidy 2020Staff hired in FY 2012Click here to download a copy of the School Allocation MemorandumAttachment(s):Table 1 – Salary Subsidy for Excessed Staff Hired to Permanent Positions School Allocation SummaryTable 2 – Original Salary Subsidy Program Eight Year Subsidy School Allocation DetailsTable 3 – 2017 Three Year Salary Subsidy Program Allocation DetailsRJO: ppC:Randy Asher ................
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