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Aid Ratio Factors into Negotiating Team’s Approach to Contract Talks
It is common in teacher contract negotiations for unions to draw comparisons between what their members are paid and what other teachers throughout Montgomery County are receiving. Such comparisons can be misleading, however, since Montgomery County school districts vary so much in terms of their aid ratios.

Aid ratios are used to determine how much state funding each district will receive for certain budgetary items. The ratio is determined through a formula that takes into account a district’s market values and the personal incomes of its residents. A district like Souderton, with a small commercial tax base and average residential incomes, would have a higher aid ratio and receive more state funding than a district with a larger tax base and wealthier residents.

The Souderton Area School Board Negotiating Team has been careful to keep in mind the district’s aid ratio when determining how much it can offer for salaries and benefits. Focusing on the district’s ability to pay– rather than what surrounding school districts pay their own teachers– will ensure that the agreements the Team is able to reach are reflective of the community.