EDLD 5342 - Week 4, Part 4

For the 2011-2012 school year, the total salaries and benefits comprised 78.8% of the total budgeted expenditures. Salaries were frozen for this school year, stipends were cut, and days decreased for those over 187. All departments were required to cut 10% out of their budgets. All of this allowed for a balanced budget for the 2011-2012 school year. If we were to give a 5% pay increase in the current budget, we would have to cut an additional 5% from all other instructional and operating expenditures since our Board required a balanced budget for this year. Since there will be no new revenue coming in next year (except for an increase in student enrollment), there will likely not be any way to budget for such a salary increase without making deeper cuts to other programs.

A positive of salary increases is always a boost in morale and the fact that we retain highly qualified staff members. The negatives are that money is tight so other programs will see cuts, some staff may be laid-off, and also, an across-the-board percentage raise gives more money for more experience and higher pay grades. This would actually have a negative effect on morale.