Wednesday, May 2, 2012

Understanding Personnel Salaries in District Budgets


Understanding Personnel Salaries in District Budgets

The Livingston Independent School District TOTAL budget allocates 79% of its expenditures on salaries.  A small percentage (5-10%) is allocated to discretionary funds.  The other percentage of the budget is left to pay the bills: for example, electricity.  As you look at the percentages you realize the campus and department budgets we analyzed earlier in this class were such a small portion of the overall budget.   It is yet to be determined if our district will give a percentage raise this year as it did last year to cover the increase in insurance.  Money is so tight it will be interesting to see the decisions that will be made.

The positive impact of a salary increase is it raises morale.  However, the negative impact is that a raise is a commitment to the budget for years to come.  It is difficult to substantiate that decision when unknown decisions of state legislatures affect the budget.  Having a 5% raise across the board gives a larger amount of money for those with a higher salary.    That is why many times you see a variance in a raise so that the amount of increase may have as equal affect as possible on everyone’s salary.

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