Finance Week 4, Part 4

I had the opportunity to interview our Assistant Superintendent of Business Services, Mrs. Tami Pierce, about pertinent information about our district financial system. Mrs. Pierce informed me that approximately 78% of the district’s budget is allocated for personnel. Our personnel salary ranges over 27 million dollars. Over the past five years, our retired superintendent, Mr. Greg Hayman, has had the district absorb positions as teachers have left the district, when it was possible. He has always mentioned that there were enormous budget cuts coming from our legislation for the upcoming years. Last year under our new superintendent, Mr. Mike Kuhrt, our district wanted to save 15% overall for the budget. Each department had to save 15% to help absorb the budget shortfall from the legislation. Our district ended up losing one million dollars from our fund balance. Our superintendent and board of trustees decided not to cut any positions last year and, of course, this year we will have to face the same challenges due to another anticipated budget shortfall. We are currently looking at differentiated staffing to accommodate some of the deficit. Our superintendent wants all campus principals to look at the possibility of shifting personnel to other campuses to continue to help our district be academically successful.
5% Increase

Giving our district a 5% salary increase can have both a positive and negative effect. It will definitely be positive by helping to build morale. Our district salary is above the state average, however, it is below the average starting salary for other districts in Region IV. A raise will definitely help in retaining teachers, as well as, also attracting new teachers or others with experience to our district. However, in order to get to a raise, we must go through the reduction in force (RIF) process. We would have to cut positions due to budget cuts handed down to us from legislation. Allowing our district to have a raise would result in a $1.35 million increase to the budget. This is currently not the time for any type of raise. With most districts utilizing some of their fund balance to maintain their budget, a raise would only be a rare occurrence, as just about all districts prepare for more anticipated budget cuts.