A determination of the costs and relationship of collective bargaining to Tennessee public school finance

The purpose of this study was to identify and examine the tax support costs of initiating, planning, implementing and administering collective bargaining agreements in Tennessee; determine the effect of collective bargaining agreements on the allocation of resources among the various budget categories in Tennessee public school districts; and determine the effect of collective bargaining agreements on total revenues of Tennessee public school systems. Data were collected from the 44 school districts in Tennessee who completed the bargaining process prior to the 1979-80 school year. Information was provided relative to the direct and indirect costs of the bargaining process. Data were also collected from the Annual Financial Report relative to the various expenditure categories in the 144 school district budgets.

A review of the literature revealed a growth of collective bargaining in the educational public sector resulting from legislation, judicial actions and lobbying efforts by the National Education Association and the American Federation of Teachers. Administrators were faced with problems as a result of collective bargaining in the public sector. They could not raise revenues (as private sector employers could) to cover the costs resulting from bargaining activity. The primary source of revenues became the real location of resources within the budget and an increase in total revenues.

Major findings related to the questions of this study were:

1. The total cost to taxpayers in Tennessee to implement the original contracts was $464,772.17.

2. Major direct costs of the collective bargaining process were for training administrators

3. Major indirect costs of the collective bargaining process were for preparation and research and training time for the bargaining team members.

4. For all districts combined, collective bargaining activity produced a positive relationship to total budget and non-teacher expenditures and a negative relationship to teacher salaries, but none were significant.

5. There was a positive relationship between collective bargaining activity and total revenues but it was not significant.