MEMORANDUM

TO:

Director Marty McLaren

FROM:

Ken Gotsch

RE:

Response to District Office budget increase constituent concerns

DATE:

October 2, 2015

You requested information from the Business & Finance Office about a reported 16.4% increase in the
FY 2015-16 district office budgets from the prior year FY 2014-15. The district office consists of all
employee categories: represented, non-represented, classified, and management staff. You noted that
you received several constituent correspondences with the stated concern that either the district office
has increased:

salaries by 16.4%; or
the top 100 highest paid district employees by 16.4%.

The short answer is no, neither of these concerns are true.

District level salaries have not gone up by 16.4%. Over the past eight years (2007-2015), nonrepresented staff only received average salary increases of 1.2% annually, well below the average
annual cost of living increase during the same time period. And well below the increases granted to
teachers and principals.
We have budgeted for 3% COLA increases for district staff, plus 2% in salary adjustments based on salary
comparisons. This would make a 5% increase, the same as was allocated for staff district-wide and a bit
below the 6% agreed to with teachers (and for principals).
I reviewed the top 300 paid employees changes from last year to this year and only saw two (2)
employees who received an increase greater than 16%. Both were senior employees who received
significantly increased job responsibilities (that were previously outsourced) added to their current
position, justifying the increased compensation.
Since I looked at a larger group than requested, I wanted to report that I also saw four employees who
will receive increases between 7% and 10%. They are all Assistant Principals who received Principal
appointments this year, a significant promotion to a higher pay level.
The district office budget ($6.1 million) does show a 16.4% increase. Those components are:

Budget adds 28.6 new positions (salary & benefits).....$3.4 million

Adds board/levy election costs to budget.....$1.0 million
Includes increase in legal services cost.$0.6 million
Includes State authorized 3% COLA...$0.6 million
Includes increase in State pension funding for all Core Admin staff......$0.3 million
Adds amount for important HR class & compensation study.....$0.2 million

Total.....$6.1 million

NOTE: The 28.6 new district office positions addressed many critical district needs including:

Staffing up required special education support positions....8 positions

Adds strategic Initiatives light version as discussed at recent work session...6 positions
Additional Teaching & Learning instructional support specialist..4 positions
Additional classified staff to payroll to implement timely hourly payroll..4 positions
Improve Human Resources service capacity in Labor Relations and
Recruitment........3 positions
Strengthen critical Communications Office support....1 positions
Other grant funded or minor fractional position count changes.......2.6 positions
Total...28.6 position

Again, district salaries have not increased dramatically. District-wide we continue to be one of the
leanest administrative offices in the state. We have been at 5.8% and are now at 6.1% - still
considerably below the more typical 7.0%. This is reflection of starting to replace some of the
desperately needed positions lost during the recession year.
Please let me know if you have any questions or need additional information on this matter.