Bill shared about the difficulties the SPCS community is facing after the loss of a staff member. He noted that the community has come together to support each other during this challenging time. Sally and Bob asked if there was anything the board could do to support. Bill shared that the school has provided families and staff with information about the wake, ways to contribute and ways to share condolences. He also stated that the school is planning to commemorate the staff member in a more significant way in the future. 

Bill shared that the majority of the school's funds are at PeoplesBank, with some at Bank of America and some at First Citizens Bank, which just purchased Silicon Valley Bank. The school anticipates moving its primary banking account to First Citizens Bank, as required by loan covenants. SPCS will aim to have an insured cash sweep set up before funds move over. 

Bill also noted that SPCS is looking into additional financial advising to ensure the school has dependable guidance on how to manage reserves as safely and strategically as possible moving forward. 

Bob advised that the school should be more cognizant of getting returns on our reserves. Meghan agreed that the finance committee would discuss this topic. 

Bill also shared about board recruitment work and board members discussed the importance of board diversity as we seek to bring on additional trustees. Sherriff noted that this could be an opportunity to bring in on new committee members, not solely board members.

Meghan shared that SPCS projects a 7% tuition increase for the FY24 budget, while noting that there will be a decrease in ESSER funding after this coming school year. The school is not projecting significant changes in any expense categories.

Bob asked for clarification on the 7% increase and if the charter sector was at risk of receiving less per pupil funding. Meghan and Bill explained the SOA and noted that Governor Healey has demonstrated a strong commitment to funding education. Bill noted that those with close knowledge of the budget process and political landscape have told him that the school should have a high degree of confidence in increases at this rate.

Meghan described the likelihood that many schools, regionally and beyond, will draw from reserves to overcome the fiscal cliff they may see due to the loss of ESSER funds.

Bill noted that the purpose of this discussion was to provide context on SPCS' current standing against the 5-year projections and inform the upcoming discussion of the new compensation model. 

Travonnie and Kevin from Edgility joined the board to share results and recommendations from Edgility's compensation study with Springfield Prep.

Kevin and Travonnie provided context on the engagement, including the goals of the study and Edgility's process, which aims to balance budget constraints, organizational values, and the ability to attract and retain talent. Bob asked whether management received comparative compensation information for data in specific roles and asked to clarify the goal of pay equity. Kevin explained how different roles were distinguished and described the benchmarks used to identify equitable pay for each level.

Kevin and Travonnie shared a number of positive findings on the current state of pay equity at SPCS. Edgility gathered input from staff through a survey with 80% response rate and interviews with 20-30 staff members. This staff engagement, as well as the positive response rate, were notably higher than other schools Edgility has worked with. Edgility found that most staff salaries are at market rates. The study also found that many staff would appreciate a pay structure that values performance, expertise and retention. 

Edgility recommends a new salary scale that would increase average pay now and over time with slight changes in rate increases to reflect hiring priorities and four core values, clarity & transparency, inclusion & belonging, fairness & consistency and contribution & retention. Sally asked how seniority was valued in the model; Edgility is proposing a model that recognizes expertise as well as tenure to reward deep competency earlier in a teacher's career if possible. Bill clarified that rewarding deep competency is different from a performance pay model, which the school will not pursue to avoid a negative impact on culture. Moving forward into the summer, the school will explore a model that recognizes both years of experience and competency. 

The model Edgility has developed with the school means increasing base pay, valuing both SP experience and outside teaching experience equally, and creating step increases based on percentages instead of a fixed dollar amount. SPCS will also create a bonus structure at key years to recognize tenure in the organization. For non-teaching staff, Edgility has developed benchmark quartiles and clearly defined salary grades. 

Kevin and Travonnie provided further detail on market equity analysis.  Kevin discussed how the market equity analysis was completed and explained that Springfield Prep has a "Compa" ratio of .96, which is very positive. In particular, Operations, School Culture and Instruction are all at market, with Facilities close and Administration, including Principals, Directors and Senior leaders, below. Travonnie noted that the organization would need to appropriate additional funds for Administration roles to attract strong talent. Bob and Anne discussed what has led to this difference and the impact that Bill's lower pay has on suppressing the pay of other leaders below him. Anne noted the importance of considering this in terms of programs and not people. 

The analysis also showed no difference in Compa ratio based on race and ethnicity. That said, while black and latinx staff represent half of the team, they are underrepresented in upper tiers. Edgility recommends creating a diverse pipeline within the organization and addressing the issue of lower administrative salaries to remove barriers to recruitment of diverse leaders. 

Travonnie and Kevin reviewed the the salary schedule, which will represent rates for '23-'24; this will be evaluated annually and the base rate adjusted based on the cost of labor.  Edgility advised that SPCS base annual increases on cost of labor, not cost of living, to be more sustainable, to reflect the true cost of the workforce, and to remain competitive.  Edgility also recommends increasing the number of sick days and providing a carryover allowance for sick and personal days. Kevin summarized budget implications of these recommendations. 

The board shared concerns, support and recommendations. Bob raised that this change in salary structure could lead teachers to expect raises for an indefinite period. Sherriff also shared concerns about potential risks of this strategy and noted that how SPCS rolls out the changes will be very important. Anne noted that her organization is working with Edgility right now around competency; she recommends phasing this work and being transparent about the process because evaluating competency is really hard. Sarah noted concerns about projecting too far out into the future, but stated that the risk of not doing so is greater. Ron shared support for the model and interest in continuing to explore budget implications. Amneris also shared support and noted that the new scale demonstrates the school's appreciation for teachers and could help recruit career changers into the teaching profession. 

Bob, Sherriff and Anne shared their view that this was a management decision and does not require a vote. All board members agreed that no vote was needed.