With a little less than a month left in the current legislative session, districts are no closer to knowing what their final bottom line will be for 2011-12. Most anticipate painful reductions in revenue and are looking for ways to cut costs. Salary freezes are likely on the table in all districts but each has its own set of circumstances dictating the level of cuts that might be needed. Some districts might even be able to give raises.
In a typical year, employers grant a pay raise to honor a year of employee service, keep pace with the job market, retain employees, and for other reasons. This year, many districts are faced with reducing staff through attrition or layoffs, rearranging workloads, and cutting programs. Giving a raise might help ease the burden of increased workload related to reducing staff. Or, it may raise questions about the number of staff members ultimately laid off. Rarely is it a simple decision.
For one Houston-area district, making these difficult choices is not a new experience. Cypress-Fairbanks ISD (CFISD) is the third largest Texas school district (and still growing). District leaders had frozen salaries for several consecutive years. Finally, for last year, the district was able to give a pay raise but it was not without pain. The district reduced its teaching positions by nearly 400, plus several others positions were eliminated. Campus staff allocations were reviewed and most teachers now teach six of seven periods, up from five.
According to Tim Rocka, director of HR Systems in CFISD, the district set out to “give a raise in the same year we increased the teaching load.” The thought was that pay raises had been very small or nonexistent and next the district was asking employees to work even harder. Years of salary freezes had taken a toll and district leaders thought it was important to give as much of a raise as possible (5 percent in this case). Employees were glad to get the raise, but according to Rocka, many still express relief in just having a job.
Sinton ISD, a Corpus Christi-area district, is making a similar move for 2011-12. They plan to give a 2 percent raise to maintain competitive pay and reward employees. The district has reduced staff through retirements and did not renew their probationary contract teachers. They are increasing elementary class sizes and will open a new elementary school in the fall.
Still, many districts this year will be increasing workloads and reducing staff but not giving a pay raise. For some, the next two to four years are too uncertain. In Aubrey ISD (AISD), Superintendent Jim Monaco would like to give a raise but their philosophy “…has always been to give the money after you have it.” The district, just north of Denton, has given pay raises and has had enrollment growth each year in the past decade. However, pay-raise budgets are related to the district having met its enrollment or revenue targets in the previous year.
AISD reduced positions through attrition, increased teaching periods at the high school, and carefully reviewed all contracts to maintain as much flexibility going forward as possible. Monaco, who has been AISD’s superintendent for more than 30 years, says its best to be fair and honest with teachers. Stretching too far with pay raises with an uncertain future might put the district, and staff, in a tough position. “It would be very tough to have to take something away. It’s different when you say you’re going to give nothing than when you have to take 3 percent of something away,” Monaco said.
In the meantime, AISD is planning to freeze salaries for next year. After the legislative session is complete and the bottom line is a little clearer, AISD may look at increasing the district’s contribution for health insurance to help offset the premium increases for TRS ActiveCare.
Some districts may look at this time as an opportunity to play catch-up. Districts that are lagging the market may give an increase when others are freezing pay in order to gain ground. Hays CISD is wrestling with that issue. Market position is their main concern but they will wait until the legislative session ends to make a final decision.
According to Carolyn Hitt, assistant superintendent for HR in Hays CISD, they would love to give an increase, “especially when other districts aren’t,” but they may not be able to afford it, even with reducing positions and changing class sizes. Hitt contends that, “Increased workloads are expected and would be even greater justification for an increase. And surely it would boost morale!” Giving an increase this year would help Hays CISD and other districts whose pay has slipped behind to be more competitive.
It’s almost certain that a record number of districts will freeze employee salaries for 2011-12. Most will not make a final decision until after the state’s budget is complete. Even then, districts may still choose to hold salaries level and help with health insurance premium increases, restore program cuts, or even rehire staff. Others may see an opportunity to improve market position, recognize increased expectations, or make up for recent salary freezes.
