Understanding Presonnel Salaries in District Budgets

Week 4, Assignment 4 – Understanding Personnel Salaries in District Budgets

When meeting with CFO for our district, it was very clear to me the impact that personnel salaries have on district budgeting decisions.  We are experiencing less funding from the state compared with past years.  Because of decreased state funding, and the fact that personnel salaries comprise the largest expenditure in the maintenance and operations budget (85.5% of total expenditures), many districts throughout Texas are forced to eliminate teaching positions.  Many districts in Texas are not able to provide raises for their teachers.  Providing a 5% raise would cost almost half of the amount currently present in the fund balance.  Many districts, including our own, are dipping into fund balance to remain solvent in the face of decreased state funding, providing a 5% raise would be impossible.