School Finance - Week 4 Assignment, Part 4

My opinion about the following:

• Insights and analysis regarding the district’s total personnel salaries as a percentage of the total district budget;
• Analysis of the positive and negative impact associated with a five percent salary increase for all personnel.

      My district’s total personnel salaries is $24,798,569 – 77% of the district’s total budget. If all personnel were given a five percent increase in salary, the total personnel salaries would increase by $1,239,928.45. This would result in total personnel salaries increasing to $26,038,497.45. If all other budget figures remained the same, personnel salaries would then increase from 77% of the total budget to 80.9%.

      The obvious positive impact is that morale would increase among staff. Theoretically, increased personnel retention and hiring of higher quality personnel would result. However, our district has an excellent personnel retention rate, and it is one of the more desirable districts to be employed in the region. Historically, retention and hiring has not been a problem in our district. Also, in the current climate, with many districts declaring a reduction in force, or at least reduction by attrition, there are limited opportunities for personnel to find positions elsewhere. Consequently, our district is able to maintain their current salary schedule with minimal negative consequence to the flat salaries. Collaboratively, district leaders and stakeholders have determined that no increase in salary for this school year is the most fiscally responsible decision due to the present educational funding structure.