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CCISD Approves One-time Financial Supplement for Employees
Clear Creek Independent School District
Office of Communications
2425 East Main Street
League City, Texas 77573
April 25, 2012
Contact: Elaina Polsen, Director
(281) 284-0020 or epolsen@ccisd.net
CCISD Approves One-time Financial Supplement for Employees
Health Insurance Premiums Rise
League City, Texas- The Clear Creek Independent School District Board of Trustees approved a one-time supplement to employees in an effort to offset the rising cost of health insurance and cost-of-living expenses, and to remain competitive in employee recruitment and retention.
“With the funding crisis facing public education, we unfortunately have not been in a position to provide a permanent pay raise for our 4,900 employees this year or next year,” said Greg Smith, Superintendent of Schools. “This is a concern for me and the board of trustees since an analysis of similar districts indicates CCISD has slipped from the middle of the pack to the low end when it comes to salary.” For example, CCISD ranks 14th out of 19 peer districts for salary of a 20-year teacher. Additionally, CCISD employees have faced health insurance increases of up to $768 over the past two years. “While this is a band-aid to the long-term issue and not a permanent raise, we felt compelled to take this action to assist in offsetting cost-of-living increases. We have asked a lot of our employees over the last several years and we want them to know that we appreciate what they do for our children.”
This supplement will cost the district $6.4 million in one-time funds. Employees will receive a single payment equal to 3% of their salary with a $1,000 minimum and a maximum cap of $2,500. Of the District’s 4,900 employees, 96 employees fall within the maximum cap category and 1,627 will benefit from the $1,000 minimum payment. The Board approved using the following funding sources for the one-time payment: $3.5 million from the District’s health funds; $1.75 million from increased student enrollment; and $1.25 million in utility savings.
If the District gave a permanent raise, it would have to find funds from the existing budget or ask the voters to approve a tax rate increase. While on a significantly smaller scale, imagine your own personal budget. Let’s say your electricity bill comes in lower than you had budgeted, you may decide to use the excess funds for something else. However, you would not make a purchase that would tie you to a long term financial commitment, a new car for instance, based on a one time savings in utility costs. If you did, you would need to find other areas of your budget to cut to pay for that new car payment every month. In CCISD’s case, the district would need to lay off employees, reduce program offerings or ask voters for a tax rate increase in order to sustain a permanent raise in the budget.