EDLD 5342 Week 4; Part 4

In order to obtain information about the district’s financial system, I interviewed the Chief Financial Officer for the district.  Our time together was very limited due to the enormous changes that school districts in Texas are facing due to the budget shortfall.  The CFO shared that 80% of the district’s total budget is allocated for personnel salaries.  Having worked as a campus principal for the past six years, I was not at all surprised by this figure.  This year we have had numerous meetings to prepare for the inevitable impact of the Texas budget shortfall.  We have had several planning sessions to analyze staffing, since it comprises the largest portion of the district budget.  Fortunately, my district has not had to cut too many positions.  The Superintendent and CFO announced that the cuts could be handled through normal attrition.  The district has instituted a hiring freeze, which means open positions will be filled with existing personnel.  We are a fast-growing district and are planning to open a new elementary campus in August.  All positions for the campus are being filled with what essentially was “over-staffing” from existing campuses.  A five percent salary increase would certainly have both positive and negative impacts.  On the positive side, teachers are working harder than ever to meet the ever increasing performance standards and expectations.  When a district has the funds available to offer a five percent raise, I believe it validates the hard work that is happening on the district’s front lines, which is the classroom.  A five percent raise is great for improving morale, district and campus culture, and can be used as a tool to motivate professionals to give their best to their students every single day.  On the negative side, districts are facing multi-million dollar budget cuts, and they simply cannot afford to offer a raise of any kind.  A five percent raise would force most districts, including mine, to dip into their fund balance.  Districts might be able to afford that for one year, but my CFO mentioned that it is not fiscally responsible to use the fund balance in that manner.  Offering a five percent raise that is paid for by the fund balance could potentially put districts in financial hardship in the future.