They also fund shortage differentials, restore PD monies

State lawmakers Tuesday approved a state budget that includes more than $164 million to end salary compression for experienced educators, fund shortage differentials, and restore paid job-embedded professional development for all teachers.

The proposals provide funding to:

  • Increase the salaries of roughly 8,700 educators by anywhere from $7,700 to $26,000, depending on their years of experience, addressing those who have been stuck or compressed in the middle of the salary scale for years. Read more about compression.
  • Continue shortage differentials of between $3,000 and $10,000 a year for more than 4,000 special education classroom and Hawaiian language immersion teachers and those who teach at geographically hard-to-staff schools.
  • Restore on-the-job paid professional development for all teachers, boosting their pay by nearly 1.5%.

During a livestream briefing on HSTA’s social media channels Monday evening, House Finance Chair Sylvia Luke said, “With the additional amount of revenues (from the economic recovery as the pandemic faded), we have committed early on that we will address this issue,” referring to compression.

The compression fix will be solved by repricing, a process allowed under the state’s collective bargaining law that members of other unions have benefitted from over the years.

“The governor and the executive can do this through repricing, so that’s the type of language we’re using this year. It should be repricing. And you don’t need a new law, you don’t actually need new legislation to do this and the governor can do it right away. So we’re making sure that funding is not a burden,” Luke said.

“This should be an unretirement party for many of the terrific teachers out there,” Luke added, referring to the fact that a number of Hawaii’s public school educators are likely not to retire anytime soon if compression is addressed.

Students benefit, she said, because “the more experience and classroom experience these teachers have, you’re never going to gain that through any type of schooling or books. You have to have the classroom experience.”

“That’s very exciting news. We don’t want money to be a barrier in keeping good teachers in the classroom,” Luke added.

HB1600, the state budget approved Tuesday by lawmakers in both the Senate and the House, calls for:

  • $130 million to address compression via repricing and restoration of 21-hours of job-embedded professional development
    • $121.7 million for HIDOE (page 70, line 9)
    • $8.3 million for charter schools (page 78, line 4)
  • $34.5 million to address shortage differentials for teachers in hard-to-staff geographic areas, special education, and Hawaiian language immersion
    • $32.5 million for HIDOE (page 69, line 21)
    • $2 million for charter schools (page 78, line 13)

The bill now awaits the governor’s approval.

“With the last conversation I had with the governor, the governor is committed to ending compression,” Luke said. “I’m planning to invite some of the members of the HSTA leadership when I meet with the governor after session.”

Senate Ways and Mean Chair Donovan Dela Cruz said on the Senate floor Tuesday, “Special attention was paid to providing salary differentials for hard-to-recruit-and-retain state positions. In addition, making available workforce development education and training opportunities to ensure that state government employment and public service remain a competitive and sought-after career choice.”

Dela Cruz added, “I want to give a big mahalo to (House) Finance Chair (Sylvia Luke). I appreciate her ability to see the big picture and understand the inner workings of government and how it operates. We met almost every day for three weeks, hours on end, discussing all of your priorities, all of the House’s priorities, all of the legislature’s priorities, our community’s priorities, the administration’s priorities, to develop a sound budget, a complete budget.”

Funding for compression, differentials and professional development would become available starting with the state’s new fiscal year July 1. It’s unclear how long the Hawaii State Department of Education will take to implement compression fixes, but the Hawaii State Teachers Association will push to ensure that any pay increases will be retroactive to July 1 of this year, when the funding starts. More information will be shared with members as it becomes available.

Luke on compression fix, shortage differentials: ‘We made this permanent’

“Differentials worked,” Luke said, referring to data that showed vacancies dropped dramatically in those targeted areas, helping “to retain some of these teachers to continue to teach in these fields.”

While the Hawaii State Department of Education found money in its existing budget for shortage differentials that began in January of 2020, today’s move by lawmakers, if approved by the governor, solidifies them going forward.

Because lawmakers put the compression fix and shortage differentials into the budget, Luke said, “we made this permanent, so we made it so it’s recurring every year, as opposed to the DOE or HSTA or advocates coming in to request this funding year-by-year.”

The restoration of the 21 hours of job-embedded professional development into the budget was a key HSTA priority on which lawmakers and the administration agreed.

“According to the testimony from Budget and Finance (Department), they were interested in continuing to have this item (PD) to be negotiated, and they said it was just a matter of funding, so we wanted to take that argument away and say, ‘OK, then if that’s the case, then we’re going to give you the money so you can negotiate it and put it into the contract,’” Luke said.

Tui thanks members for speaking out, lawmakers for listening and taking action

“This is great news, especially as we celebrate Teacher Appreciation Week,” said HSTA President Osa Tui, who thanked HSTA members for sharing testimony and stories with legislators that helped them understand the need for these important measures.

“They heard our members loud and clear that paying educators for their experience, on-the-job professional development and ensuring shortage differentials into the future helps students to succeed and thrive,” Tui said.

“For years, HSTA has tried to address the salary compression problem in bargaining with the state, but the answer was always that lawmakers needed to appropriate the funds to solve compression. We are so grateful to senators and representatives for taking these crucial steps to help attract and retain experienced teachers,” Tui added.

Lawmakers also approved $200 million to construct and renovate pre-kindergarten facilities, $10 million for classroom air conditioning improvements, $2 million to provide free menstrual products to students, and $1.8 million for school lead abatement. Read about those and other school initiatives here.

State rejects HSTA’s contract counteroffer

You may be aware that other state employees negotiated extensions to their two-year contracts through June 30, 2025. The contract extensions included pay raises from July 2023 through June 2025. HSTA received a similar offer, but there was a catch. To secure those contract extensions, the other bargaining units sacrificed the ability to negotiate on any items (except health premium increases) through June 30, 2025.

This is a bargaining tactic the employer has used with HSTA since at least 2017– a take-it-or-leave-it strategy where accepting pay increases precludes any further discussions and modifications on important topics.

HSTA countered the state’s offer to extend our contract by two years, with improvements including a lump sum payment, salary increases and step movements through June 2025, reopener language for health benefit payments for the last two years, and a letter of commitment from the interim superintendent to address non-cost items for the contract duration. The state recently rejected HSTA’s counteroffer and withdrew its proposal altogether.

Thus, the HSTA’s current contract expiration remains June 30, 2023, with HSTA retaining the right to have meaningful negotiations on all contractual matters during the 2022-23 school year with a salary benchmark set by other bargaining units for the 2023-24 and 2024-25 school years. In the mix, also, will be different parties at the negotiations table, including a new governor and a new permanent superintendent, creating the opportunities for transformative change in the HSTA contract. This includes openings to consider restructuring the pay scale away from irregularly negotiated step increases as the statutory restriction of a limit on class VII passed today both houses unanimously and be signed by the governor via SB2819.

Fixing salary compression via repricing is estimated to deliver more than twice as much money to HSTA’s bargaining unit members than what the state offered through an extension of the current contract, not counting the funds for restored PD and continued shortage differentials.

As your bargaining team (the three state officers, plus Negotiations Committee Chair Diane Mokuau from Molokai, along with committee members Jeanne Olayon from Hilo, David Negaard from Maui, and Kathy Shibuya from Kauai) begins preparing for the next round of bargaining, we ask you to be on the lookout for the upcoming negotiations survey that will be released in our Member Matters e-newsletter later this month.