District officials drafted a compensation plan in May that would provide a 1% of the midpoint raise for all staff and/or a one-time $500 payment, however the board delayed approval until it could better determine the district's budget shortfall for fiscal year 2023-24.
Staff worked to balance the $14.9 million shortfall through reductions in central office staff and land sales, Superintendent Lori Rapp said.
The context
The state allots school districts $6,160 per student based on daily attendance, an amount that has not increased since 2019. LISD has experienced around 22% inflation since that time along with enrollment decline, expiring COVID-19 relief funds and underfunded mandates.
Statewide school funding would need to increase by around $1,400 per student to provide the district with the same buying power they had in 2019, according to district documents.
The details
In August, LISD officials projected to close FY 2023-24 with a $3.3 million shortfall, but by the November workshop staff had reduced the amount to $441,000, Chief Financial Officer Scott Wrehe said.
Additionally, the state refunded the district almost $3.5 million in recapture funds because the district collected $25 million less than the state anticipated, Wrehe said.
LISD also sold a property along Sunset Trail for $4.3 million and found $1.5 million in the budget for capital outlay expenses that had already been paid, meaning it could move the $1.5 million into the FY 2023-24 general fund.
In total, these measures offset the budget shortfall and provided the district with over $8.9 million available for compensation increases, he said.
Zooming in
A 1% midpoint raise would cost approximately $4 million and a $500 one-time payment would cost a total of $3.5 million, according to district documents.
“Many of our staff members are actually making less this year than last year because of an increase in insurance costs,” trustee Staci Barker said, who spoke in support of a raise.
While the district does have the funds, a percentage raise would be an ongoing expense, Wrehe said. The board adopted a $4.5 million budget shortfall for FY 2024-25.
Trustee Allison Lassahn echoed this sentiment saying she would be comfortable with a one-time payment of up to $750, but would hesitate on a percentage raise due to future budget concerns.
Going forward
Action will be taken for employee compensation at the Nov. 11 board meeting.
Should the board approve the raise or one-time payment, the administration will be able to distribute funds before the winter break, Rapp said.
