As the Little Rock School Board decides how to cope with the need to cut $10 million from its budget on account of an enrollment drop, one School Board member, Diane Curry, has inquired about the impact of a pay cut for administrative employees at the top end of the pay scale. (An early proposal by Superintendent Linda Watson on coping with the cuts included school closures and teacher force reductions, but no reductions in administrative staffing.) Board members got this answer to Curry's question this week:
The cost savings associated with a 10% reduction in salary, including related benefits, for employees grade 67 and higher would be $1,192,079. An 8% reduction would yield a savings of $953,663. A total of 106 employees would be impacted.
UPDATE: Turns out Board member Charles Armstrong also requested impact figures on broader pay cuts, including teachers currently under contract.
NOTE: This is just for purposes of discussion at this point. No one has proposed a pay cut for any employees.
FROM AN LRSD MEMO
COST SAVINGS PRODUCED BY THE FOLLOWING CUTS:
1. 10% of salaries $ 90,000+ = $0.6 MM (53 employees)
2. 7% of salaries $70,000 – 90,000 = $0.8 MM (149 employees)
3. 5% of salaries $55,000 – 70,000 = $2.9 MM (939 employees)
TOTAL SAVINGS = $4.3 MM (1,141 employees)
A MEMO FROM SUPT. LINDA WATSON ADDED
The requested information is below. Please note that some of the cuts in the 5% range will create inequities with employees that earn less than $55,000. You will have individuals under the $55,000 making more than the individuals that were cut. Each time you make cuts, a change reaction is created.