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TO:
FROM:
DATE:
RE:
NJASA Members
Maria M. Lepore, NJASA Chief Association Counsel
December 2, 2016
Contract Negotiation and the Proposed Salary Caps

It has come to our attention that some confusing and/or inaccurate information about the implementation of the new salary caps has been disseminated to some members around the state. As members are no doubt aware, on November 16, 2016, the New Jersey Department of Education filed proposed amendments to section 6A of the Administrative Code, and amendments to the salary caps were a part of that proposal.

The new salary caps as proposed by the DOE, in a nutshell, are as follows:
  • For enrollment up to 750, $147,794.
  • For enrollment from 751-3000, $169,689.
  • For enrollment from 3000 to under 10,000, $191,584.
  • Districts with enrollment over 10,000 can continue to apply to the Commissioner for a waiver. Such districts are limited to 1 waiver request per contract.
In addition to the above, superintendents can receive salary increments for the following:
  • For districts with at least one high school, $5,000.
  • For superintendents who take on an additional administrative role, $5,000. Such a role would be any position for which the holder is required to possess an endorsement under the Administrative Certificate.
  • For superintendents who serve in another district, $15,000.
If the regulations are adopted in their current form, the following will apply:
  • A superintendent who is in his/her first contract in a given district, may renegotiate a salary up to the cap for the remaining term of the contract. For subsequent contracts in the same district, that superintendent could negotiate a salary increase of up to 2% per year once s/he has reached the cap.
  • A superintendent who is currently in a contract in his/her district which has been renewed, and which has become effective after the expiration of his/her first contract in that district, can negotiate, to be effective July 1, 2017, a salary of up to the cap plus 2% in the 2017-18 school year, and up to an additional 2% in each of the subsequent school years.
  • All superintendents will have the ability to negotiate additional merit bonuses with their districts to the same extent as they were able to in the past.
 
Important points of Clarification
  • A Superintendent in his/her first contract may negotiate an increase in salary up to the cap, to be effective July 1, 2017, once the regulations are adopted.
  • A Superintendent who is in a first contract that has been extended, amended, or otherwise modified, should contact an NJASA Attorney for specific advice and assistance on how the proposed regulations apply to this situation.
  • A Superintendent in his/her first contract may not negotiate a 2% salary increase in the current contract once his/her salary reaches the cap during that first contract.
  • A superintendent may get one or more of the salary increments that apply to his/her district and situation. For example, a superintendent with a high school may receive the $5,000 salary increment, and is not required to take on an extra administrative position or an extra district to receive that increment.
The proposed salary cap regulations have been filed and public hearings are scheduled to take place on January 9th, 10th, and 11th, 2017. It is possible that, in the review period, the DOE could make additional changes before they become effective. NJASA staff will continue to monitor the regulations and alert the membership with relevant guidance should any changes occur.

What NJASA Members Can Do to Assist in the Implementation:
NJASA Staff, including me, have been in contact with the DOE regarding the implementation of these regulations. Any member who is aware of any point of confusion or misleading information, regardless of the source, should contact me at   mlepore@njasa.net so that we can advise the membership, and if appropriate, contact the DOE for clarification.

Members are advised that this constitutes general guidance and not legal advice. Any members who need specific legal advice regarding their circumstances are advised to contact NJASA Legal Department, or their own personal attorneys, for specific legal advice and assistance.