Gov Offers Incentive for School Salary Freezes

Gov. Chris Christie said he plans to offer more state aid to school districts whose teachers agree to a wage freeze for the 2011 fiscal year, according to AP news reports on March 30.

The aid would be generated by the savings the state would receive from Social Security and Medicare payroll taxes as a result of the wage freezes. Districts could see more than 7 percent of the value of the wage freeze savings. For example, a district that saved $1 million as a result of keeping wages flat could receive about $75,000 in extra aid.

The governor has been actively promoting school district staff wage freezes, a position supported by the New Jersey School Boards Association.

NJSBA Surveys Districts An ongoing survey of school business administrators shows that almost all boards in the first and second year of teacher contracts are discussing reopening negotiations with the goal of a wage freeze or other adjustment to compensation. As of Tuesday, 322 school districts responded to the survey.

NJSBA has called on the state teachers unions to urge their local affiliates to cooperate with school board proposals to re-open contracts in order to adjust compensation, and to save important positions and education programs. The Association believes that a salary freeze should extend to all school employees, including administrators.

Several districts have reported reaching an agreement with their employee associations to freeze wages for part or all of the 2011 fiscal year. NJSBA will issue a second survey later this week reporting on the results of contract re-opening requests.

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