Week 4, Part 4: Understanding Personnel Salaries in District Budgets

I was able to discuss this subject with my district’s Chief Financial Officer in order to gain a better understanding of the district’s personnel salaries. Personnel salaries in my district amount to $20,153,319 and account for 78% of the budget. With the current decrease in education funding in our state it is easy to understand when the local district budget needs to be trimmed, it oftentimes is decreased in the area of personnel. As 78% of the Maintenance & Operations fund is allocated towards personnel, cutting costs within the other 22% can be minimal at best. It is interesting to note that just a 3.37% in the total payroll of my district totals $656,376. While this is a customary increase, it can really strain a local budget.

A 5% increase in salaries for all personnel would positively impact morale, but could negatively impact the local budget. This increase would be attractive to potential candidates, and would help the district retain current personnel. This would also help employees maintain their standard or quality of life as the cost of living continues to rise. While employees will welcome an increase in pay, this does not necessarily mean that student achievement will improve. As noted in the previous paragraph, even a minimal increase in employee salaries can have a significant impact on the local budget, and how this increase is going to be funded must be considered. As state funding continues to decrease, districts may not maintain the ability to afford salary increases. 

If a 5% decrease in salaries for all personnel were to take place, this would negatively affect morale, but could provide much needed funds for other district expenditures. A decrease in salaries would not be attractive to current or potential employees; also, teacher and employee retention rates would decrease. A decrease in salary would not necessarily dictate a decrease in student achievement.