The trick is in the wording, "payroll increases estimated at 3%". This assumes that the total payroll belongs to the Unions. Go to this link:
http://www.svsdnegotiations.com/Scam.pdf
The link is from the official School Board position on Mr. Muir's accounting tricks. Let's look at it simply the union proposal wants to place a 3% increase to the entire pay grid per year for 6 years! That means that the minimum increase in pay for a teacher would be 3%.