What You Need to Know About the New Salary Increase

The new salary increase has caused much conjecture among those responsible for administering district finances. It boils down to the fact that districts are expected to give the $1,220.00 pay raise along with the designated step increase. This is probably the time for districts to consider a change to their local salary scale that will make future pay increases easier to calculate. Districts should also not forget about the pay raise for this year. The state’s minimum salary scale is not changing, and this is a choice each individual school will be responsible for tracking.  

If the salary scale isn’t changed, it is important to closely track an accurate record of all personnel pay increases. Documentation in this system will be essential moving forward. This appears to be a permanent increase, as it is not allowed as a stipend or in another salary. Salary and benefits are an important part of school accounting since they make up the majority of a district's expenses. As such, choosing a deliberate path in any salary change is essential to strong financial health. If you need any help in calculating the salary changes please feel free to contact me; we have templates that are ready to go.

One other item to look at this time of year is the amount of insurance a district's buildings and property carry. The cost of construction is not getting any cheaper, and it would be terrible if any buildings and property were undervalued if there were any kind of disaster, natural or otherwise. Undervaluation could put a district in a difficult position if the insurance is actually needed to rebuild part or all of a district.