(ABC 6 News) – Mason City school district confirmed Wednesday that it plans to eliminate a $300 benefit and the salary schedule for local teachers.

The Mason City Education Association opposes those changes, and said the salary schedule guaranteed raises for staff based on how long they have worked for school.

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(ABC 6 News)- The Mason City School Board held in special session meeting Friday afternoon to discuss contract negotiations between the Mason City Education Association (MCEA) and the district.

According to statements from both parties, negotiations are currently at an impasse over the 2024-2025 salary and benefit packages for nearly 300 salaried employees including teachers, nurses and counselors.

The Mason City Community School District’s statement reads as follows:

The Mason City Education Association (MCEA) and the Mason City Community School District (MCCSD) are currently at an impasse in their contract negotiations. A mediation session held earlier this month did not result in an agreement.

MCCSD remains committed to offering competitive compensation packages to its teachers, positioning the district favorably compared to both neighboring and larger districts within the state. Since 2018-2019, Mason City’s certified enrollment has decreased by 242.4 students. Mason City now ranks 30th in the state for certified enrollment.

For the 2023-2024 academic year, the average total salary for teachers in MCCSD is $71,874 for a 190-day contract, which ranks ninth in the state, excluding benefits. When including benefits, MCCSD teachers hold the highest average total compensation in the state at $102,776, according to the Iowa Association of School Boards. The district has proposed a $3,000 pay increase for each teacher for the next school year, equating to a 6% raise on base wages.

Iowa teachers are covered by the Iowa Public Employee Retirement System (IPERS), guaranteeing a lifetime monthly payment upon retirement. Additionally, MCCSD has historically offered an early retirement benefit. This year’s package was for $50,000 over five years to employees who have worked in the district for at least ten years and are at least 55 years old.

Previously, MCCSD has provided an additional retirement benefit: a $300 monthly Tax Sheltered Annuity (TSA) contribution, available to all teachers and other MCEA bargaining unit members. Some educators have used this benefit to offset the cost of family health insurance.

However, due to projected funding constraints from declining enrollment, MCCSD plans to discontinue contributions to the teacher TSA. This decision, which is non-negotiable, is aimed at preserving the district’s future financial stability. The annual cost of the TSA program is $1.1 million, equivalent to the salaries of 16 teachers at the lowest pay rate. Continuing this benefit would necessitate reducing the number of teaching positions, thereby increasing class sizes.

The district covers the full cost of individual health, dental, and vision insurance for teachers. Currently, for those with family health coverage, the single premium and the $300 TSA can be applied toward the family premium. For next year, Family health insurance rates have been set to ensure that no teacher faces higher family insurance costs.

The Mason City Education Association’s statement:

The Mason City Education Association and the Mason City Community School District have not yet reached agreement on a contract for teachers, counselors, and nurses for the 2024-2025 school year. The Mason City School Board has informed MCEA that it has given its last, best and final offer which includes eliminating the salary schedule from the contract and decreasing total compensation for this group of employees.

MCEA believes that schools are the heart of our Mason City Community. Keeping our community thriving means investing in our children, their families, and the professionals serving them.

A competitive salary schedule and benefits package for the professionals who teach our children is the best way to attract and retain high quality staff. The number one indicator of a student’s success will always be the teacher’s professional excellence in the front of the classroom. Why would we shortchange the professionals we need to succeed by eliminating the salary schedule and decreasing benefits?

The Mason City Community School District has the financial resources available to fairly compensate teachers, counselors, and nurses. In a year when the Iowa legislature passed laws and provided additional funding to raise educator salaries, why is the Mason City School Board choosing to decrease total compensation for these valuable employees?